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OWNERS’ ASSOCIATION SEÑORIO DE ALOHA SEÑORIO DE ALOHA – Autumn Newsletter

Dear Owner,

In order to provide you with an overview of the community without reaching an overwhelming level of detail, I am attaching some of the most notable highlights and challenges of this year.

FINANCIAL MATTERS

Given that we are now in the fourth quarter of the accounting year, I can confirm that the key objective of maintaining good financial stability is being met. In fact, the Ordinary Budget (coming from community fees) has spent 66% of funds in 75% of the time (end of third quarter). A busy fourth quarter means that expenses will be in line with the budget. It is important to note that approximately 90% of owners are paying their community fees. Those in arrears and those in default are being penalized with 20%, as previously approved. Approximately 25 debtors are subject to legal proceedings. In most cases, community debt takes priority over other claimants. Total debt is approximately €410,000, a significant amount of which is difficult to recover. Six owners represent more than 50% of the debt. The Extraordinary Budget received €430,000 from the 2022 special assessment. All this money will have been spent by the end of this year. The 2023 accounts will detail the use of these funds.

ACTIVITIES

Repairs and improvements to the pools received very positive approval from users. The three pools were completely occupied during the summer period. The HELP maintenance team has been working on a 22-hour-a-day schedule and has performed numerous painting and repair work throughout the community. Since they work at night, we ask that you remain alert to any antisocial and suspicious behavior. The storage areas in the basement, which have suffered humidity and ventilation problems due to burst water pipes or drain overflows, are being equipped with air extractors and ventilation ducts after a successful experimental system in Alhambra. At a cost of €6,000 per building entrance, these systems will be implemented as needed, with the next installation at Portal 5 of Mezquita. The gardening contractor Jaydo, who has done very good work, will not renew his contract in February. They have been hired by the Meliá group and our gardeners will be reassigned. Good gardening contractors are scarce and we are now looking for a replacement. The summer season was very challenging for the management and maintenance teams due to the negative impact of short-term rentals. Many complaints were received from owners who were disturbed by the antisocial behavior of rental guests. Our staff and police were called on several occasions during the night. The behavior ranged from open use of class A drugs, marijuana, inhaling nitrous oxide balloons, to excessive noise inside and outside apartments and nighttime use of pools, as well as trespassing in building entrances. These incidents cost the community a lot of time and money. Better control is required from owners/agents, as well as improved community rules and means of enforcement.

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OWNERS’ ASSOCIATION SEÑORIO DE ALOHA

The legal case initiated in 2004/05 against the General Contractor of Señorío, FCC, has a hearing scheduled for 22 November. It was originally scheduled for 2020 but was postponed due to the pandemic. In an earlier hearing several years ago, the judge urged an independent assessment of repair costs caused by defects in workmanship. This was due to the large difference in estimates submitted by the Community and FCC. As time passes, repair costs continue to increase and will be unavoidable for the community. We therefore rely on our long-time lawyer, Mr. Urquia of DUA Abogados, to make proper representations to the court. Adenjo, Victor Porras and I will be in court on 22 November. Another inherited problem is that of Pinturas JJ, which filed a lawsuit claiming €138k for painting works performed in 2017/18. These were in addition to the main agreement of 2015/16 to paint the community for approximately €850k. The trial is scheduled for May 2024, and in the meantime, different payment options are being considered. As discussed at the AGM, paying such a significant amount is difficult from the cash flow of community fees, especially if there is no agreed plan for staggered payments. As for the ruling in the Multimalaga case (a lawsuit filed more than ten years ago by a security company) that awarded the plaintiffs almost €50,000, including interest and costs. Adenjo’s efforts to pursue owners’ debts together with careful management of our expenses made it possible to settle this unexpected debt through cash flow. The same applies to HELP’s historical creditors and several external lawyers who were paid €33K. The value of this unexpected debt collection work by Adenjo has allowed us to pay our creditors approximately €131K since his appointment in January 2022. We have very good news regarding the initiative of using an energy consultant to review the community’s various configurations and rates. The year-on-year comparison, from January to August, shows a 50% cost reduction, equivalent to €20K. Work done on the community’s water pipe network, including irrigation and pools, has significantly reduced consumption and cost compared to last year. However, we continue to experience random pipe breaks that carry water from meter rooms to individual apartments. A replacement pipe costs approximately €2k. With 250 throughout the community, we are proactively trying to optimize water pressures to preserve the pipes. Many owners are exacerbated by renovations carried out by neighbors. Owners and their builders, for the most part, have little respect for the inconvenience they cause. A small number of owners has shown willingness to inform Adenjo and Victor Porras in advance of their plans. Most choose not to cooperate, and it is fair to assume they are carrying out work that contravenes Spanish building regulations and community rules. We have requested intervention from the City Council and police in real time, but to date with little effect. It should be noted that when the City Council intervenes, this can result in a legal case against the owner with consequent substantial financial penalties and demolition of illegal works. Agreement will also be sought at the AGM to initiate legal action against owners who, without resorting to the Administration, are flagrantly carrying out illegal work. Several owners inquired about chimney cleaning. Recently a successful cleaning operation was carried out in Doñana. No major repairs were required, it simply appears they have never been cleaned since they were built. Owners who have problems with their chimneys should contact Adenjo to participate in the next cleaning round.

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OWNERS’ ASSOCIATION SEÑORIO DE ALOHA

The NAÔ Pool Club was in daily operation throughout the summer. The club consistently violated noise regulations for a residential area, and the antisocial behavior of many guests was highly disturbing to many residents in the vicinity of the club. The club was raided several times for drug control, and numerous traffic violations and violent behaviors were observed. Efforts in conjunction with our neighbors to curb illegal operations continue.

Warm regards,

John Riley – President of Señorio de Aloha.