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Dear Owners,

The 4th quarter of 2022 has been a period of significant progress, with numerous improvements and repairs made possible by the increase in community funds and a better utilization of our human resources. In short, we have a stronger team of more productive and highly focused individuals who are centered on the key issues of the community. The money is carefully allocated to the projects agreed upon at the Annual General Meeting, but we must also recognize that new problems that arise daily also require financing. Instead of a detailed comment on the various improvements and repairs that have taken place, there is a photo gallery at the end of this bulletin that speaks for itself.

1. ANNUAL GENERAL MEETING 2023

The Annual General Meeting of 2023 will be held on Friday, March 31, 2023, in the morning. Adenjo will distribute a formal notice shortly. The financial accounts for 2022, the debtor report, and the president’s report will be presented.

In addition to the annually elected positions of President, Vice President, and Administrator, if there are any volunteers who wish to help in specific areas of community management, please contact Adenjo to register their interest, and this can be discussed at the Annual General Meeting.

If any owner wishes to submit a petition to be debated on the agenda of the Annual General Meeting, please send it to Adenjo before February 20. The petition must contain a brief description, justification, and, if applicable, an estimate of costs. This will help the management team understand the petition. Given that the community’s finances are still under pressure, it is unlikely that the management team will support funding from the standard 2023 budget for non-essential projects. If the community as a whole does not support funding from the budget, voluntary non-obligatory funding will be necessary.

2. COMMUNITY FINANCES

a) Debtors.

There has been an increase in the number of short-term debtors, which can be partly attributed to the increase in community fees and the levy. Positively, although some owners did not meet the initial payment deadlines, many have since made overdue payments to bring us closer to the expected income. Owners who have not fulfilled their payment obligations within a reasonable timeframe are now subject to the 20% penalty approved by the Annual General Meeting and legally binding. Unfortunately, we have had to initiate new legal proceedings against several owners. We also intend to promulgate new laws that allow the community management team to deny certain services to owners, their tenants, or guests, for non-payment of community fees.

The long-term debtors, which are less than 10, represent around 75% of the total debt of approximately €430,000. Adenjo has been working with the former lawyers, appointed under the mandate of the previous President, to understand why these cases are still in court, and in some cases, they are providing new legal knowledge. A more detailed update will be provided at the meeting.

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b) Creditors.

In recent months, the community has received unexpected payment requests, 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 after the change of President and Administrator in 2020, only a small part of the accounting records and service contracts for the community were transferred. Among the missing documents was 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. They have recently filed a payment claim, which has led us to seek legal advice as an obligation of the community to satisfy this claim.

II) The lawyers hired by the previous President to work with the former debtors have filed claims for almost €30,000 in unpaid fees. A negotiated agreement has resulted in unexpected costs of €20,000.

III) A lawsuit against the community that the current community management team was unaware of has resulted in an unexpected cost of €49,000 plus undetermined interest. The case dates back to 2009, when the community terminated the contract with the then-security company, and shortly after, an incident occurred that gravely damaged the community. The accusing finger pointed to the outgoing security company, which in turn decided to sue the community. Obviously, the previous President and Administration knew about this lawsuit, but did not inform the incoming Administration. After seeking legal advice, we believe we have no choice but to accept the judicial sentence, and there will be an unexpected cost in the 2022 accounts estimated between €50,000 and €60,000.

IV) After deciding to terminate the surveillance contract with Cofer, we have agreed to settle the inherited debt before 2020, which amounts to approximately €70,000. This will be charged to the 2022 accounts. In the future, this will significantly reduce our creditor balances and also eliminate approximately €65,000 + IV A of annual costs that can be redeployed elsewhere in the community. Of course, community security will be a topic for debate at the Annual General Meeting.

3. HELP SERVICES / External Contractors

Changing the contract with HELP from a passive concierge service to a “pair of extra 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 repair and maintenance budget. Within this budget are the costs of “capital works,” which are large-scale projects, such as pools, and are mostly carried out by external contractors. In addition to the contracted contractors (gardening, cleaning, etc.), Victor and Andreas are responsible for specifying and negotiating contracts with all other external contractors. Our Monday.com management system contains detailed records of all work done and all expenses, both for completed contracts and ongoing work.

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4. CHANGE OF INSURANCE COMPANY

There has been an exceptional number of insurance claims throughout 2022. This is partly due to some owner claims, but mainly due to having a proactive team that identifies and presents a claim to the insurance company. A measure of success is that the insurance company refused to renew our policy for 2023 because community payments exceeded the policy cost by a considerable margin. The good news is that a lower-cost policy has been negotiated with the new insurance company.

5. STORAGE UNITS.

There have been significant problems during 2022 with storage units, and especially during the 4th quarter. The main problems are lack of ventilation and humidity, as well as bad smells. These are exacerbated when there are problems with underground drainage and sewage pipes or directly from apartments. Many of you know that solving these problems and negotiating with insurance companies is not easy. The combination of a deficient design and construction and lack of maintenance poses a significant challenge. Victor has initiated a trial project to increase ventilation and control humidity. If successful, the project will be extended to all affected areas of the community.

6. TERRACE REPAIRS

The works on the first group of terraces with humidity and corrosion problems approved by the Annual General Meeting have been completed. In combination with the disconnection of the irrigation system from the terraces, it is expected that the deterioration will be significantly slowed or stopped. With the repair of each terrace, we are in a position to consider painting the repaired terrace facade and the ones below. This is important and costly work that, due to cost limitations, can only be carried out over a long period. Options will be presented at the Annual General Meeting.

7. POOLS

In accordance with health and safety regulations, the 3 pools now have a perimeter fence and locked gates (which open in the morning and close at night).

After the completion of the Giralda pool, which required extensive repairs to the substructure, the work is underway on the central pool. It appears that under every stone moved in Señorío, there is a problem beneath it.

Similarly, this has occurred in the central pool, where even the water supply pipe for the shower was obstructed by roots growing inside it. It was necessary to excavate the entire underground pipe around the pool to the pump room.

The compliance with safety regulations required remodeling the pool corners, which involved extensive tile work. When the central pool is completed, the saltwater from Mezquita will be pumped to the central pool, saving approximately €4,000 in water costs. It is expected that the Mezquita works will be completed in the spring, and it is certain that the pools will significantly improve the community’s image and value. It would be absurd for us to leave the sunbeds in their current poor state, so the plan is to renovate or replace them.

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8. DOG WASTE

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

9. VANDALISM

An occupant of Giralda has committed acts of vandalism in a fuse box, a service access point, and the walls of the staircase. The culprit has not yet been identified, but we ask owners to be vigilant and inform Adenjo of any alterations in the community common areas.

In an unrelated incident, a Donaña tenant activated the fire alarm in the garage in the early hours of Christmas morning. The police and firefighters had to attend and cut the external alarm cable. Apparently, the culprit activated the alarm to open the garage door and introduce a damaged car. The police are aware of the circumstances.

10. NAÔ / POOL CLUB

Advance notice that the grand inauguration party will take place on April 6th in the afternoon, and a large crowd is expected. The last 50 meters of bollards on Calle las Adelfas will have been installed to restrict parking outside the community. We continue to strive to find a solution to this problem, which experts believe will negatively affect property values in the area. DEMANDA COLECTIVA

In summary, 2022 began with significant changes in community management. Since then, we have made significant progress with numerous improvements throughout the community. This has been possible thanks to the 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 to, for the first time in many years, undertake capital-intensive infrastructure projects and, at the same time, carry out regular maintenance and repairs. The combination of financing and better deployment of our human resources has made it possible.

As owners, I believe we should feel very proud of the continuous improvements in the community and very grateful to our Adenjo team, Victor, Andreas, Luis, and other subcontracted workers.

Best regards,

John Riley President, Señorio de Aloha.

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PHOTO GALLERY / REPAIRS AND MAINTENANCE

Pools Triana/Giralda after works

Installation of new security fences around the pools

Reform works Doñana/Alhambra. Work will begin on Mezquital. All works will be completed by summer.

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Reform works, painting of entrances, doors of all buildings

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Reparation of loose tiles. It is complicated to find tiles of the exact color of the old ones.

Installation of anti-slip tape on stairs

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Winter pruning

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Construction of drainage Mezquita/Giralda

Painting of main entrance