1. I have reviewed the April, May and June 2026 Financial Statements provided by Cohere.

2. Some observations as of 6/30/26: -Cash in the Operating Account, including $50K Working Capital loan from Developer-$57,516 -Cash in the Reserve Account- $251,002 -Homeowner Assessments Receivable: $1682 (Primarily 1 homeowner past due but subsequently paid) -Due from VMCA (Vista) for their share of Montaine Circle upkeep: $10,957 -Due from Declarant for funding of 2025 Reserves: $260,700 -Due from Declarant for funding of January-June 2026 Reserves: See #8 below

3. # Closed homes as of 7/1/26: 361 (54% of 664 total planned) 2026 closings from Toll: 24

4. Operating Deficit for 2026 thru 6/30/26/26: $23,934 (prior to any Reserve Contributions or Declarant Subsidy) The amount budgeted to have been contributed at this date but not included in the financials is $137,519. This deficit is part of the anticipated deficit funding that the developer has provided and continues to fund monthly, although not legally obligated to do so.

5. Attached is an Executive Financial Summary for the first 6 months of 2026. Note that there has been no obligation for the funding of Reserves recorded in the books of RMCA in 2026. See also Note 8 below.

6. As of 7/1/26 our sister community Vista is 50 closed homes away from reaching Transition when the homeowners will elect a majority of the Board, and the Developer will end their deficit funding. Since we share Maleah’s time and related compensation with Vista, their Transition to a homeowner-controlled Board and elimination of deficit funding by the Developer may have an impact on Regency.

7. An auditor has been retained to examine the accounting records from the inception of our HOA to December 31, 2024. A draft of the audit report has recently been distributed to the Board, who will review for accuracy and disclosures. Once accepted, a copy will be made available on the RMCA website. The Board also plans engage an auditor for the year ended December 31, 2025.

8. The Board at its January 29 meeting unanimously approved a Motion to instruct Cohere to invoice the Declarant for the 2025 Reserve contribution and the 2026 Reserves prorated monthly, based on the 2023 Reserve Study. Those invoices were prepared and sent by Cohere and are being billed and to be accrued monthly as a Receivable due Regency in the 2026 financials. No payment for Reserve funding has been received from the Declarant as of this date, and the Declarant has recently sent a letter to the Board stating that they don’t plan to fund Reserves until Transition. The Board met with the HOA’s attorney and learned that the Declarant is not obligated to actually ever fund Reserves under current Colorado law or our governing documents. After meeting with Toll’s Division President, my request for further guarantees of that funding prior to Transition were rejected, however he did reiterate their commitment to continue to fund Operating Deficits and fund Reserves at Transition, although no specific dollar amounts were provided. Since the dollar amount of Reserves to be funded at Transition was not committed to by the Declarant, and there is no legal obligation for the Declarant to ever fund Reserves, our financial statements will not reflect any such obligation. We as homeowners are left with Toll’s request to trust them to do the right thing. Unfortunately it appears we have no other options at this time.

9. As previously reported, the approved 2026 HOA budget called for dues to increase 5% to $221 per month, effective 1/1/26. This is consistent with the multi-year Build Out Budget previously approved, which also incorporates a 5% increases each subsequent year through Transition, currently projected sometime in 2029.

10. It has been my intent for some time to form a Finance Committee comprised of homeowners to expand the understanding of RMCA’s finances, Reserves and insurance beyond myself. Unless something changes, I am anticipating forming an RMCA Finance Discussion Group to serve in this role rather than a formal committee, and plan to start one or the other in the near future.

Click this link to view the 2026 Executive Financial Summary.

Submitted by Bill Cirkus July 30, 2026