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4 | OHCC LIVING | MARCH 2026 | Transparency and Financial Update The fundamentals remain strong. The Association's financial condition is stable, and our reserves continue to be appropriately funded in alignment with long-standing financial practices at OHCC. By the time you read this article, the proposed budget for the fiscal year April 1, 2026 through March 31, 2027 will have been presented to the Master Board for consideration. As noted previously, the primary change in the upcoming budget relates to increased legal expenses. The legal budget is projected to increase from approximately $60,000 this year to $215,000 next year in order to address recent activity and ensure the Association continues to meet its legal obligations responsibly. Based on internal tracking by management and counsel, the operational impact of recent legal and administrative activity has been significant. Over the past several months, the Association has responded to a huge number of formal legal complaints, threatened claims, or attorney-related inquiries, each requiring review and coordination regardless of outcome. During the same period, management coordinated the production of more than 5,000 printed pages of archived records, which required retrieval, organization, and appropriate redaction prior to release. To accommodate this volume of requests, approximately 100 staff hours were dedicated solely to assembling and processing document productions. Homeowner participation and engagement are important parts of community governance, and the Association remains committed to complying with all lawful member requests under California statutes. At the same time, the cumulative volume of recent requests — many involving overlapping historical materials — has created measurable financial and operational impacts that must be ref lected in future budgeting. Based on current projections, these expenses could translate to an additional increase of approximately $15 per month per household in future assessments. It is important to emphasize that this projected increase does not ref lect weakened reserves or financial instability, but rather the operational cost of responding to increased legal and administrative activity. Questions have arisen regarding the increase in legal expenses. The figures presented here ref lect documented workload and actual costs incurred. The Association respects the privacy of all homeowners and does not publicly identify individuals involved in these matters. It is a privilege to serve on your Master Board as Treasurer. Through these updates, I will continue working to provide clear financial transparency and responsible stewardship on behalf of our entire community. Our goal is to keep homeowners informed while maintaining a balanced, respectful approach that protects both the Association's financial strength and the sense of community that makes OHCC a special place to live. Treasurer's Report By Van Rametta, OHCC Treasurer Balance Sheet: December 31, 2025 Operating Cash $ 664,825 Cash Reserves $ 4,900,292 Other Assets $ 353,060 Total Assets $5,918,177 Reserve & Capital Obligations $ 5,069,815 Current Liabilities $ 353,060 Total Liabilities & Obligations $ 5,633,829 Equity $ 284,348 Income and Expense Statement: Nine months ended December 31, 2025 Budget Actual Variance Income $ 7,696,006 $ 7,722,920 $ 26,913 Expenses $ 7,902,340 $ 7,772,176 $ 130,164 Net $ (206,333) $ (49,256) $ 157,077

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