1. I’ve reviewed the May 2025 Financial Statements provided by Matt Schuster, Cohere’s Senior
Accounting Manager.

2. Some observations as of 5/31/25:
-Cash in the Operating Account, including $50K Working Capital loan from Developer-$86,113
-Cash in the Reserve Account- $225,027
-Homeowner Assessments Receivable: $545 (one homeowner 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 6/2/25: 297 (45% of 664 total planned) 2025 closings from Toll: 31

4. Operating Deficit Year to Date: $93,689 (prior to Developer Subsidy) This is part of the anticipated deficit funding that the developer has provided and continues to fund on a monthly basis. For 2025, so far $79,620 of deficit funding has been received from the Developer. Also, the Developer has paid RMCA insurance premiums thus far as part of their master insurance policy, which represents additional deficit funding.

5. Each homeowner who received interest on their New Member Fee refund either as a credit to their homeowner 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 a little more than half of the 183 have provided 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.

6. Our sister community Vista has closed approximately 62% of their intended homes, meaning that they are a year away or possibly less from Transition when the homeowners elect a majority of their Board spots. Jay Hamerstadt and I have established a communication link with their current homeowner Board members, considering that we share Maleah, and we will be discussing the possibility of a reciprocal agreement with them regarding their pool and our grounds around the clubhouse.

7. An auditor has been retained to examine the accounting records from the inception of our HOA to December 31, 2024. That includes records being maintained by two different management companies and three different accounting systems, so it is especially important to have the audit done before our Transition, currently projected sometime in 2028.

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. An agreement to memorialize these terms is still in process.

Submitted by Bill Cirkus
June 26, 2025