Page 1

Owners’ Association Conjunto Residencial Señorío de Aloha President’s Newsletter / End of Year 2024

Dear Owners,

As we close 2024, we reflect on a year full of advances, challenges, and continuous efforts to maintain and improve the quality of life within our community. Below is a summary of key developments, issues, and ongoing initiatives:

1. Financial Management

Financial stability, a key priority, has been maintained throughout the year, with bank balances comfortably positive. Community expenses have been maintained in line with the budget approved for 2024. Although there were deviations, especially in utilities, the management team actively monitored and adjusted expenses accordingly. Significant repair and maintenance projects were completed on time and mostly within budget. Although inflation in Spain has been declining, we remain attentive to rising prices in various materials and outsourced services.

A significant burden inherited in 2020 was Pinturas’ claim for 138.000 €, allegedly due to additional costs for painting the community in 2017/18. We refused to acknowledge this cost due to the absence of a contract and invoices. However, in 2024, Pinturas achieved a legal ruling favourable against the community, based on evidence that they were listed as “creditors” in the minutes of general meetings following 2018 (in my opinion, a travesty of justice given the extremely poor quality of the work). An out-of-court settlement was reached, and we made an initial payment of 28.500 € in the third quarter and are currently paying the balance at a rate of 3.000 € per month. Careful management allows us to service this debt from cash flows.

The conclusion of the 15-year legal case against FCC, the general contractor for Señorío de Aloha, resulted in FCC claiming approximately 53.000 € net from the community. I struggle to find reasons beyond the incompetence of lawyers at that time and the shortcomings of the legal system to explain how the community finds itself in this unfortunate situation. The current management team hopes to find an effective solution to this other inherited problem.

2. Reduction of Outstanding Community Fees

The total outstanding debt now stands at 372.255 €, significantly lower than the inherited debt of over 500.000 € in 2020. Of the current total, 88.29 % is attributed to just five owners, and legal actions are proceeding slowly through the courts. Although results are difficult to predict, they include possible asset seizures or auctions of the most indebted properties. This year, approximately 145.000 € has been recovered from previous fiscal years, adding to the 429.382 € collected since ADENJO began its work. The fee collection rate has improved, averaging 95 %, reflecting a notable improvement in owners’ financial discipline. Adenjo’s behind-the-scenes work, including coordination with lawyers and collection agencies, has been instrumental to this continued success.

Page 2

3. Access Control System Developments

This year successfully completed Phases 1 and 2, covering perimeter pedestrian doors and garage doors and gates. This shift in the security approach, from readily available keys and hired security personnel, has already brought several benefits, namely:

✓ Improved security by restricting access to current owners, tenants, and authorized contractors, with the ability to deactivate access for unwanted persons.

✓ The issuance of new key fobs and garage remotes allowed Adenjo to re-establish contact with owners who had disappeared from the radar and were not paying their fees, especially those with debts related to garages and storage units who do not own apartments, making it difficult to serve legal notices.

✓ The ability to deny access to the swimming pools and paddle tennis court to all debtors by deactivating their key fobs for these facilities.

Phase 3, which includes the installation of a new intercom system, is scheduled to begin in January 2025. This is an urgent necessity due to the obsolescence and constant failures of the current system. The new intercoms will be installed building by building, starting with Mezquita, and will offer improvement options such as the ability to allow portal access to people of your trust via a mobile app.

While this strict system has caused inconvenience to a minority, the long-term benefits are expected to outweigh those of the former security service, which lacked control over the issuance of keys and remotes. In the future, some flexibility in the system could be considered if the majority supports it once the pros and cons are understood.

4. Property Renovations Without Consent

This year numerous renovations have been carried out, mainly by companies that buy, renovate, and then sell or rent properties. Many of these renovations did not comply with Spanish law or community regulations. Despite multiple attempts by Adenjo and community manager Víctor Porras to reach agreements on permitted work, legal actions have had to be initiated to prevent the situation from becoming even more out of control and harming the community. Non-compliant renovations can pose safety problems and affect the architectural integrity of the community. While entrepreneurs make substantial profits by modernising apartments, this does not always benefit the value of other properties. The community, advised by legal experts, is drafting updated rules and guidelines on renovations to clarify expectations and streamline their enforcement. A proposal will be presented to all owners in 2025.

In the meantime, I urge ALL owners planning renovations to contact Adenjo and on-site manager Víctor Porras in advance to inform them of your plans and licences. This can save unnecessary costs and work for both parties.

5. Repairs and Maintenance

Despite some owners’ concerns about the pace of repairs, our 24/7 maintenance team attempts to respond immediately to critical issues. One of the most serious in 2024 was the rupture of the main water pipe under the perimeter wall facing Triana building, which took several days to repair.

Page 3

Less critical tasks, aimed at improving the appearance of the community, include: painting the fireproof doors of the garage exits, painting the exteriors of the lifts on each floor, and painting the basement-level walls of Mezquita building. The other four buildings will be completed in the coming weeks.

Behind the scenes, potable water tanks have been replaced, as well as several individual pipes from the basement meter rooms to owners’ apartments. The programme continued with the repair of waterproofing on the terraces of several apartments affected by deficient original construction and problems arising from the planter irrigation system. These repairs help prevent further discolouration of the terrace façades.

We remind owners that the removal of planters is prohibited by municipal regulations. We also inform you that we have hired a technical architect to advise on a permanent solution for the façades and planters of all buildings.

Since the contracted security service was suspended 2 years ago, our night maintenance staff carries out a minimum of three full patrols between 21:00 and 07:00. They also attend to various incidents. This has had positive results, but much remains to be improved, especially with problems generated by short-term rental guests in summer, to prevent incidents before they occur.

In early 2024, we replaced the previous landscaping company with an equally experienced but more dynamic team. As you can imagine, maintaining gardens under the drought conditions imposed by the regional government has been a major challenge, but positive feedback from owners is a testament to the team’s hard work, and we have ended the year with gardens in very good condition.

We are maintaining contact with our neighbouring community “Casaño” regarding the vacant land between their property and our Triana/Giralda buildings. We hope that “Casaño” decides to finance the construction of a wall to replace the broken fence, and if so, we would in return improve the gardens in that area of the community.

We hope that throughout 2024 owners have been satisfied with the performance of the cleaning team. We want to highlight the challenge of having to clean up after careless workers leave mess in and around the lifts, in the garages, or along the corridors leading to the streets. We deem it necessary to attempt to impose sanctions on owners who do not control the negative impact of their workers. In addition, there are numerous cases where tenants leave their rubbish outside their apartments and expect our cleaning staff to carry it to the external waste areas.

6. Short-Term Rentals

The summer of 2024 presented challenges with short-term rentals due to noise, vandalism, and other nuisances. The administration is collaborating with owners and experienced rental agents to create guidelines that improve accountability. For example, owners will be asked to install noise monitoring devices in their apartments and to place community regulations and important contact numbers prominently.

Currently, the Spanish government is tightening regulations on short-term rentals, which should help mitigate these problems in the future.

The key safes that adorned the community’s perimeter walls were removed as part of the implementation of access control.

Page 4

On a related note, after many years of successful operation, Gloria is taking her business in a new direction and will no longer continue operating within the community. Her apartment-office, a two-bedroom duplex very well located near the main entrance, is for sale to interested buyers at a very reasonable price. The listing can be found on the “Idealista” website.

7. Recurring Issues

Persistent issues in 2024 included:

• Blockages in the sewage system due to wet wipes. • Damage to garage doors caused by rental vehicles. • Broken portal doors and windows from acts of vandalism. • Disruptions and litter associated with work on private properties. • Improper parking in other owners’ private spaces. • Unauthorized use of community electricity to charge electric vehicles. • Pet waste within the community.

CCTV footage will be used to sanction repeat offenders, as gardeners and cleaning staff refuse to deal with this problem. The administration continues to address these issues through proactive measures and community education. It is important that owners understand the time and resources consumed by these avoidable situations.

8. Avatel Internet and TV Service

The community’s agreement with Avatel has been beneficial, but also presents challenges. Although discounted rates are welcome, Adenjo has assumed a significant workload to manage payments and resolve owners’ service issues. In the future, the community will need to decide whether to compensate Adenjo for this additional work or transition to direct contracts between owners and service providers. As president, my recommendation would be to reach an agreement with Adenjo.

9. Disturbances from NAÔ Pool Club

The opening in May of the new entrance to NAÔ Pool Club, facing the Giralda/Alhambra portals, caused serious disruptions, such as noise, vandalism, and security problems during mass events. The community, together with Aldea Blanca, initiated legal actions against NAÔ, with the first court hearing scheduled for February 2025. Although negotiations for an out-of-court settlement are underway, we maintain cautious confidence in a favourable outcome.

Page 5

Conclusion

2024 has been a year of progress and perseverance for Señorío de Aloha. Despite the challenges, we continue striving to maintain the community as a safe, welcoming, and harmonious environment for all residents. We look forward to the participation of owners in 2025 to address outstanding concerns and implement improvements. My best wishes for 2025.

John Riley, President C.P Señorío de Aloha.