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Newsletter 4th Quarter 2022

Dear fellow owners,

The fourth quarter of 2022 has witnessed significant progress, with major improvements and repairs made possible through increased community funds and more effective deployment of our human resources. In short, we have a stronger team of people who are more productive and highly focused on the key issues affecting our community. Funds are allocated carefully to projects approved at the annual ordinary meeting, but we must also acknowledge that new problems arising daily require funding as well. Rather than provide detailed commentary on the various improvements and repairs undertaken, a photo gallery at the end of this newsletter speaks for itself.

1. ANNUAL ORDINARY MEETING 2023

The 2023 annual ordinary meeting is scheduled for Friday, 31 March 2023 in the morning. Adenjo Gestión SL will distribute a formal notice shortly. The 2022 financial accounts, delinquency report, and President’s report will be presented. In addition to the annually elected positions of President, Vice President, and Administrator, if any owner wishes to volunteer to assist in specific areas of community management, please contact Adenjo Gestión SL to register your interest, which can be discussed at the annual ordinary meeting. Should any owner wish to submit a matter for discussion on the agenda of the annual ordinary meeting, please send it to Adenjo Gestión SL before 20 February. The submission must contain a brief description, justification, and, where applicable, a cost estimate. This will help the management team understand the request. Given that community finances remain under pressure, it is unlikely that the management team will support funding from the standard 2023 budget for what might be considered non-essential projects. Should the community as a whole not support funding from the budget, voluntary non-binding financing would be necessary.

2. COMMUNITY FINANCES

a) Delinquent accounts. There has been an increase in the number of short-term delinquent accounts, which in part may be attributed to the increase in community fees and the special assessment. Positively, although some owners did not meet initial payment deadlines, many have since made arrears payments bringing us closer to projected income. Those owners who have not met their payment obligations within a reasonable timeframe are now subject to the 20% penalty approved by the annual ordinary meeting and legally binding. Unfortunately, we have had to initiate new legal proceedings against several owners. We also intend to implement new legislation that permits the community management team to deny certain services to owners, their tenants, or guests for non-payment of community fees. Long-term delinquent accounts, numbering fewer than 10, represent approximately 75% of total debt of approximately 430,000 euros. Adenjo Gestión SL has been working with the former lawyers appointed under the previous President’s tenure to understand why these cases remain in court, and in some instances are providing new legal insights. A more detailed update is expected for the meeting.

b) Creditors. In recent months the community has received unexpected payment demands, as follows:

I. For at least 4 years the company that painted the community between 2014–2018 has claimed 138,000 € in unpaid fees. The fact is that following the change of President and Administrator in 2020, only a small portion of accounting records and service contracts for the community were transferred. Among the missing documents were the contract, invoices, and correspondence with the painting company. Despite repeated requests since 2020 for these key documents that would facilitate payment, the painting company has not provided them. Recently they filed a claim for payment, which has led us to seek legal advice as an obligation of the community to satisfy this claim.

II) The lawyers engaged by the previous President to work with former delinquent accounts have submitted claims for nearly 30,000 euros in unpaid fees. A negotiated settlement has been reached resulting in unexpected costs of 20,000 euros.

III) A legal case against the community of which the current community management team was unaware has resulted in an unexpected cost to the community of 49,000 euros plus interest not yet determined. The case dates back to 2009, when the community terminated the contract with the then security company, and shortly thereafter an incident occurred resulting in serious damage to the community. The finger of blame pointed at the outgoing security company, which in turn decided to sue the community. Obviously, the previous President and Administration were aware of this lawsuit, but did not communicate it to the incoming Administration. After seeking legal advice, we believe we have no choice but to accept the court judgment, and therefore there will be an unexpected cost in the 2022 accounts estimated between 50,000 and 60,000 euros.

IV) Following the decision to terminate the security contract with Cofer, we have agreed to settle the inherited debt from before 2020, which amounts to approximately 70,000 euros. This will be charged to the 2022 accounts. In future this will significantly reduce our creditor balances and also eliminates approximately 65,000 € + VAT in annual costs that can be deployed elsewhere in the community. Of course, community security will be a matter for debate at the annual ordinary meeting.

3. HELP SERVICES / External Contractors

Changing the HELP contract from a passive concierge service to an “extra pair of hands” for maintenance services is yielding immediate benefits. Victor, our on-site engineer, assigns work to both Luis and Jose (HELP employee) and determines priorities and costs included in the overall repairs and maintenance budget. Within this budget are also the costs of “capital works,” which are large-scale projects, for example the pools, mostly carried out by external contractors. In addition to contracted service providers (landscaping, cleaning services, etc.), Victor and Andreas are responsible for specifying and negotiating contracts with all other external contractors. The Monday.com management system we use contains detailed records of all work performed and all expenses, both for completed contracts and ongoing work.

4. CHANGE OF INSURANCE COMPANY

There has been an exceptional number of insurance claims throughout 2022. This is due in part to some claims from owners, but mainly to having a team that is proactive in identifying and submitting claims to the insurer. A measure of success is that the insurance company refused to renew our policy for 2023 because payments to the community far exceeded the cost of the policy. The good news is that a lower cost has been negotiated with the new insurance company.

5. STORAGE UNITS

There have been significant problems during 2022 with storage units, particularly during the fourth quarter. The main issues are lack of ventilation and humidity, as well as foul odours. These are compounded when there are problems with drainage and sewage pipes running underground or directly from apartments. Many of you know that solving these problems and negotiating with insurance companies is not an easy task. The combination of poor design and construction and lack of maintenance presents a considerable challenge. Victor has initiated a pilot project to increase ventilation and control humidity. If successful, the project will be extended to all affected areas of the community.

6. TERRACE REPAIRS

Work has been completed on the first group of terraces with humidity and corrosion problems approved by the annual ordinary meeting. In combination with disconnecting the irrigation system from the terrace planters, it is expected that deterioration will have substantially slowed or stopped. With the repair of each terrace, we are in a position to consider painting the facades of the repaired terrace and those below. These are significant and costly works which, due to cost constraints, can only be undertaken over an extended period. Options will be presented at the annual ordinary meeting.

7. POOLS

In accordance with health and safety regulations, the 3 pools now have a fenced perimeter and lockable gates (opened in the morning and closed at night). Following completion of the Giralda pool, which required extensive substructure repairs, which I believe you will agree looks excellent, work is underway on the central pool. It seems that in Señorío, under every stone that is moved, there is a problem beneath it. This has also occurred at the central pool, where even the shower water pipe was obstructed by roots growing inside it. It was necessary to excavate the entire underground piping around the pool to the pump room. Compliance with safety regulations required remodelling the pool corners, which necessitated extensive tiling work. When the central pool is completed, water (now salt water) from Mezquita will be pumped to the central pool, saving approximately 4,000 euros in water costs. Work on Mezquita is expected to be completed in spring, and we have no doubt that the pools will substantially improve the image and value of the community. It would be absurd on our part to leave the sun loungers in their current poor condition, so the plan is to refurbish/replace them.

8. DOG EXCREMENT

It is sad to say that this problem continues, particularly around Giralda. A low-cost ultrasonic system with light sensors will shortly be tested. If the problem persists we will consider reviewing CCTV footage of the affected areas which would necessarily involve the police. We again appeal to dog owners to act responsibly.

9. VANDALISM

A resident of Giralda has committed acts of vandalism to a fuse box, a service access point, and stairwell walls. The culprit has not yet been identified, but owners are urged to be vigilant and report to Adenjo Gestión SL any disturbance in the community’s common areas. In an unrelated incident, a tenant of Doñana chose to activate the fire alarm system in the garage in the early hours of Christmas morning. Police and firefighters had to attend and cut the wiring of an external alarm. Apparently the culprit activated the alarm to open the garage door and introduce a poorly maintained vehicle into it. The police are aware of the circumstances.

10. NAÔ / POOL CLUB

Advance notice that the grand opening party will take place on 6 April in the afternoon and a large attendance is expected. The final 50 m of bollards will have been installed on Calle las Adelfas to restrict parking outside the community. We continue to strive to find a solution to this problem, which real estate experts believe will over time negatively affect property values in the area.

COLLECTIVE DEMAND

In summary, 2022 began with significant changes in community management. Since then, we have made considerable progress with a large number of improvements throughout the community. This has been made possible through approval by the majority of owners of an increase in community fees and a significant liquidity request. By providing the necessary financing, we have been able, for the first time in many years, to undertake capital-intensive infrastructure projects while at the same time carrying out regular maintenance and repairs. The combination of financing and better deployment of our human resources has made this possible. As owners, I believe we should feel very proud of the continuous improvements to the community and very grateful to our team at Adenjo Gestión SL, Victor, Andreas, Luis, and other subcontracted workers.

Yours sincerely

John Riley President Conjunto Señorío de Aloha

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PHOTO GALLERY / REPAIRS AND MAINTENANCE

Pools Triana/Giralda after works

Installation of new safety fencing around the pools

Renovation works Doñana/Alhambra. Work will commence on Mezquita thereafter

All works will be completed by summer.

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Repair work, painting of entrances, doors of all buildings

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Repair of loose tiles. It is difficult to find ones matching the exact colour of the old ones.

Installation of anti-slip tape on stairs

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Winter pruning

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Drainage construction Mezquita/Giralda

Main entrance painting