| 1. | I’ve reviewed the June 2025 Financial Statements provided by Cohere. |
| 2. | Some observations as of 6/30/25: -Cash in the Operating Account, including $50K Working Capital loan from Developer-$99,817 -Cash in the Reserve Account- $225,068 -Homeowner Assessments Receivable: $612 (no homeowners more than 1 mo past due) -Due from VMCA (Vista) for their share of Montaine Circle upkeep: $6773 -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 7/3/25: 305 (46% of 664 total planned) 2025 closings from Toll: 49 |
| 4. | Operating Deficit Year to 6/30/25: $107,910 (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 $98,188 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 about 2/3 of the 183 have provided the needed information. Management is continuing to make calls on these daily, taking time away from other functions, so if you haven’t yet and want to keep the interest previously credited to your account, please do so. Those homeowners unwilling to provide your Social Security number will lose the credit previously provided on your dues account. |
| 6. | Our sister community Vista has closed approximately 64% of their intended homes, and they are 60 homes and a year away or possibly less from Transition when the homeowners will elect a majority of their Board spots. Jay Hamerstadt and I have established a communication link with their current homeowner Board members. We are currently 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, and that audit is in process. 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. | No transfers have been made to the Reserve fund since 2024. The Developer has indicated that 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
July 25, 2025