Image Up Advertising & Design

| OHCC LIVING | JUNE 2026 | 5 Update On Legal Expenses As we all know, life is uncertain. We insure what we can, and where insurance is not the solution, we plan carefully to protect ourselves and our assets. That begins with identifying risk. The same is true for our community. The Board has consistently committed to transparency — particularly when it comes to our financial condition and emerging risks. As I've pointed out previously, one of the most significant risks we are currently facing is the escalating cost of legal activity driven by a small number of homeowners. I have been asked to provide more detail, and it is my fiduciary responsibility to share what I legally can. We do not identify individuals; every homeowner has the right to raise concerns and even pursue legal action. However, there is a real and unavoidable consequence when repeated legal threats are made: the entire community pays for the response. Over the past five months, the Association has paid, on average, $20,130 per month in legal fees. Part of this calculation includes accounts payable estimates for February and March. We have defended the HOA from approximately seventy legal threats and complaints. That is not typical. It is not sustainable. And it directly impacts on every homeowner. As I informed you earlier, our legal expense budget of $60,000 per year had to be increased to $200,000 this year. Hopefully, if this expense comes down, we will come in near or below that budget. These are funds that could have been used for community projects but had to be moved to cover legal expenses; the impact is real. When legal threats are made, the Board has no discretion to ignore them. We are required to involve our insurance carrier and legal counsel. From that point forward, communications move to attorneys, and costs escalate quickly — regardless of the merit of the claims. Some have asked why the Board does not simply "fight back" or take aggressive counteraction. The reality is that the Association will continue to respond and take legal action where necessary. However, our job is not to react emotionally or prove a point. Our job is to protect the financial stability of this community. We also cannot — and will not — simply concede to demands that are not in the best interest of the Association or not legally required. That would be just as irresponsible. The expenses detailed above are ONLY the legal bills — they do not include the estimated 100 hours of staff time we have paid to accommodate records requests over the past months. To put the operational impact in perspective, one records request required the production of approximately 5,000 pages of documents, consuming many hours of staff time over a single weekend to meet the legal deadline; they were never picked up. This is not just inefficient — it is a misuse of community resources. The Board has repeatedly offered reasonable paths to resolve disputes, including discussions and informal mediations. These options have sometimes been ignored, other times refused. To be clear: a small number of actions can create a large financial burden for everyone else. That is the reality we are managing. So, when you ask why the Board is not taking more aggressive action, understand this — we are acting. It is deliberate, disciplined, and focused on protecting the entire community. It is also attempting to balance the monetary impact on the Association. Our financial position remains strong. But continued, unnecessary legal activity has real consequences. Those consequences do not fall on a few — they are shared by all. We will continue to keep you informed — directly and transparently. Treasurer's Report By Van Rametta, OHCC Treasurer Balance Sheet: March 31, 2026 Operating Cash $ 875,248 Reserves & Other Assets $ 4,678,393 Total Assets $5,553,641 Current Liabilities $ 749,367 Reserve & Capital Obligations $ 4,502,372 Total Liabilities & Obligations $ 5,251,739 Equity $ 333,604 Plus Net Actual $ (31,701) Total Liabilities and Equity $ 5,553,641 Income and Expense Statement: Twelve months ended March 31, 2026 Budget Actual Variance Income $10,261,342 $ 10,283,211 $ 21,869 Expenses $10,362,303 $ 10,314,912 $ 47,391 Net $ (100,961) $ (31,701) $ 69,260

• Cover