1.

I’ve reviewed the February, March and April 2025 Financial Statements provided by Matt Schuster, Cohere’s Senior Accounting Manager.

2.

Some observations as of 4/30/25:

-Cash in the Operating Account, including $50K Working Capital loan from Developer-$91,270

Cash in the Reserve Account- $224,984

-Homeowner Assessments Receivable: $300 (no one more than 1 mo past due)

-Due from VMCA (Vista) for their share of Montaine Circle upkeep: $3032

-No transfer to the Reserve account will be made this year. Agreement in process for Developer to fund

Reserves, including interest, at Transition (75% homes closed).

3.

# Closed homes as of 4/23/25: 297 (45h% of 664 total planned) 2025 closings from Toll: 31

4.

Operating Deficit Year to Date: $61,034 (prior to Developer Subsidy) This is part of the anticipated deficit funding that the developer has funded and continues to fund on a monthly basis. For 2025, so far $47,933 of deficit funding has been received from the Developer. Also, the Developer has paid the RMCA insurance premiums thus far as part of their master insurance policy, which represents additional deficit funding. More in the insurance program below.

5.

Interest on New Member Fee refunds were credited to homeowner accounts who received refunds andreduced the February HOA fees for those that have their fees automatically taken from their bank accounts by Cohere. If you have your bank automatically make the payment, that credit is still sitting on youraccount and will be until you instruct your bank to adjust one of their payments. From what I can tell from the accounting records, there are still a number of homeowners who pay their HOA fees in this fashion.

6.

Each homeowner who received interest on their New Member Fee refund either as a credit to theirhomeowner account or otherwise will receive a 1099 for the interest portion so that it can be declared on your 2025 personal tax return. We all received an email on the need to go into the clubhouse by May 31 to provide your Social Security number. So far almost half of the 183 have yet to provide the needed information.. Those homeowners unwilling to provide your Social Security number will lose the credit previously provided on your dues account. Management will extend the time to provide Social Security numbers for a short time, so if you haven’t yet and want to keep the interest previously credited to your account, you’ll need to act promptly.

7.

r Insurance for RMCA generally includes building and equipment coverage for the clubhouse and otherstructures, liability coverage, theft and fraud coverage, Directors & Officers liability coverage, Workman’s Compensation as well as some ancillary coverages. Through the end of this month, we have been covered by Toll’s master policy, with a portion of their premiums allocated to RMCA for budgetary purposes, butactually paid by Toll, effectively increasing the deficit funding that the Developer is providing. A stand-alone insurance policy has recently been approved by the Board, effective April 30, which unbundles us from Toll’s master policy. Two significant benefits to this for us. The property coverage is being written by CAU, who I’m very familiar with, and is the pre-eminent carrier in the HOA/condo market throughout the US. Their coverage includes Guaranteed Replacement Cost coverage, meaning that in the event of a fire or other loss, even if the cost of replacement exceeds that building value used by CAU for premium purposes, the carrier will provide enough funds for replacement. There’s no risk of being under insured. Secondly, the premium for this stand alone policy and program is substantially less than what we’re budgeted for, removing the concern that when the Developer is no longer subsidizing us, we shouldn’t encounter asurprise on insurance costs. This is a very positive outcome for RMCA in my eyes.

8.

As I’ve indicated previously, even though our recent Reserve Study contemplated funding, no such funding was approved by the Board for Cohere to do, and no transfers have been made to the Reserve fund this year. The Developer has now told us they plan to wait for Transition at 75% of homes closed when the homeowners can elect 4 of the 5 Board spots to promptly bring the Reserves at least up to the level contemplated by the Reserve Study, that being 15% of the aggregate of projected replacement costs. The 75% point of closed homes is currently projected to be sometime in 2028. I have agreed to the concept, subject to an agreement to be signed by the Developer and the homeowner elected Board members specifying the target amount, including the interest earnings on the increasing cash balance contemplated in the Study. The Developer has agreed in concept and an agreement is currently being worked on. This funding at Transition will be separate and apart from any other negotiations and payments or repairs that may result from Transition. My reason for agreeing to this is because what I’m focused on is our financial and physical condition when it’s all on our financial backs, which is at the point of Transition when we are no longer subsidized by the Developer. I’m confident that the Developer will honor the agreement and will have access to the funds to make the payment. Keep in mind that they will still have 25% of the community, over 150 homes to close on at that time, so they’ll still be here for some years after that. We also currently have over $220,000 in the Reserve account should any needs arise before the additional funding.