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PRESIDENT-REPORT President's Report · 2024-12-05

President's Circular — December 2024

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Reference 2024-president-newsletter-dec
Document Type President's Report president-report
Date 2024-12-05 (4 December 2024)
Issued by Presidente, Conjunto Señorío de Aloha
Affects All buildings (5 of 5)
Available in ENESSVARFR
Storage ?Cryptographic hash for verifying that this file matches the original on record. r2://2024/Newsletter_2024_End_of_Year_Spanish_Official.pdf
This is a translation. The Spanish version is the legally authoritative document. View original

Owner-prepared summary. Original document is the authoritative source.

At a glance

  • The circular dated 5 December 2024 reports that the community’s bank balances remain positive and expenses stayed within the 2024 approved budget, with a 95 % average collection rate for fees.
  • A legacy claim from Pinturas of €138,000 was settled by an initial payment of €28,500 in Q3 2024 and ongoing monthly payments of €3,000; a separate FCC case resulted in a net claim of €53,000 against the community.
  • Total outstanding community fee debt is €372,255, down from over €500,000 in 2020, with 88.29 % attributable to five owners and €145,000 recovered from previous fiscal years, adding to €429,382 collected since the current management began.
  • Phases 1 and 2 of the access‑control system (pedestrian gates and garage doors) were completed, and Phase 3 (intercom upgrade) is scheduled to start in January 2025.
  • The administration highlighted ongoing legal actions concerning non‑compliant property renovations, short‑term rental disturbances, and the NAÔ Pool Club, with the first court hearing set for February 2025.
  • Service agreements such as the internet/TV contract with Avatel were reviewed, and a recommendation was made to negotiate compensation for the management company’s additional workload.

Page 1

OWNERS’ ASSOCIATION
RESIDENTIAL ESTATE SEÑORIO DE ALOHA
NEWSLETTER FROM THE PRESIDENT / End of Year 2024 Dear Owners, As we close the year 2024, we reflect on a year filled with progress, challenges, and continuous efforts to maintain and improve the quality of life within our community. Below is a summary of key developments, problems, and ongoing initiatives:

  1. Financial Management Financial stability, a top priority, has been maintained throughout the year, with comfortably positive bank balances. Community expenses have been kept in line with the approved 2024 budget. Although there were deviations, especially in public services, the management team actively monitored and adjusted expenses accordingly. Significant repair and maintenance projects were completed on time and largely within budget. Despite decreasing inflation in Spain, we remain vigilant about price increases in various materials and subcontracted services. A significant inherited burden in 2020 was the claim of Paints 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, Paints had a favorable legal outcome against the community, based on evidence that they were listed as “creditors” in subsequent AGM minutes (in my opinion, a parody of justice given the extremely poor quality of the work). An extrajudicial agreement 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 address this debt with cash flows. The conclusion of the 15-year legal case against FCC, the general contractor of Señorio de Aloha, resulted in FCC claiming approximately €53,000 net to the community. I struggle to find reasons beyond the incompetence of the former lawyers and the deficiencies 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 inherited problem.

  2. Reduction of Community Fee Arrears The total outstanding debt now stands at €372,255, a significantly lower figure than the over €500,000 inherited in 2020. Of the current total, 88.29% is attributed to just five owners, and legal actions are progressing slowly in the courts. Although results are difficult to predict, they may include possible asset seizures or auctions of the most indebted properties. This year, approximately €145,000 was recovered from previous fiscal years, adding to the €429,382 collected since ADENJO took over. The collection rate of community fees has improved, with an average of 95%, reflecting a notable improvement in the financial discipline of owners. The behind-the-scenes work of ADENJO, including coordination with lawyers and debt collection agencies, has been crucial to this continued success.

Page 2

  1. Developments in Access Control System This year, Phases 1 and 2 were successfully completed, covering perimeter pedestrian doors and garage doors and gates. This change in security focus, from easily available keys and contracted security personnel, has already brought several benefits, such as: ✓ Improved security by restricting access to current owners, tenants, and authorized contractors, with the ability to disable access for unwanted individuals. ✓ The issuance of new key fobs and garage remotes allowed ADENJO to reestablish contact with owners who had gone off the radar and were not paying their community fees, particularly those with debts related to garages and storage units they do not own, making it difficult to deliver legal notices. ✓ The possibility of denying access to pools and paddle courts for all debtors by disabling 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. New intercoms will be installed building by building, starting with Mezquita, and will offer improvements such as the ability to allow portal access to trusted individuals via a mobile app. Although this strict system has caused inconvenience to a minority, we expect the long-term benefits to exceed those of the old security service, which lacked control over key issuance and remotes. In the future, we may consider some flexibility in the system if the majority supports it once the pros and cons are understood.
  2. Unauthorized Property Renovations This year, numerous renovations were carried out, mainly by companies that buy, renovate, and then sell or rent out properties. Many of these renovations did not comply with Spanish law or community regulations. Despite multiple attempts by ADENJO and the community manager, Víctor Porras, to reach agreements on permitted work, legal actions had to be initiated to prevent the situation from getting out of control and harming the community. Unauthorized renovations can pose security risks and affect the architectural integrity of the community. While entrepreneurs reap significant benefits from modernizing 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 application. A proposal will be presented to all owners in 2025. In the meantime, I urge ALL owners planning renovations to contact ADENJO and the site manager, Víctor Porras, in advance to inform them of their plans and licenses. This can save costs and unnecessary work for both parties.
  3. Repairs and Maintenance Despite concerns from some owners about the pace of repairs, our 24/7 maintenance team strives 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 in front of Triana building, which took several days to repair.

Page 3

Less critical tasks aimed at improving the community’s appearance include: painting fire doors at garage exits, painting exterior elevator facades on each floor, and painting Mezquita’s ground-floor walls. The other four buildings will be completed in the coming weeks. In the background, water tanks and several individual pipes from basement meter rooms to owner apartments have been replaced. The program continued with the repair of Mezquita’s terraces’ waterproofing, affected by original construction defects and problems related to the irrigation system of planters. These repairs help prevent further discoloration of Mezquita’s facade planters. We remind owners that removing planters is prohibited by municipal regulations. We also inform you that we have hired an architect to advise on a permanent solution for Mezquita’s and all other buildings’ facades and planters. Since contracted security services were suspended two years ago, our night maintenance personnel make a minimum of three complete patrols between 21:00 and 07:00. They also attend to several incidents. This has had positive results, but there is still much to be improved, especially with problems generated by short-term rental guests in summer, to prevent incidents before they occur. At the beginning of 2024, we replaced the previous gardening 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 significant challenge, but the team’s hard work has been praised by owners, and we ended the year with the gardens in very good condition. We are maintaining contact with our neighboring community “Casaño” regarding the vacant land between their property and our Triana/Giralda buildings. We hope “Casaño” will decide to finance the construction of a wall to replace the broken fence, and in that case, we will improve the gardens in that area of the community.

Page 4

We hope that during 2024, owners have been satisfied with the performance of our cleaning team. We want to highlight the challenge of cleaning up after careless workers leave messes in and around elevators, garages, or along corridors leading to streets. We consider it necessary to try to impose fines on owners who do not control the negative impact of their workers. There are also numerous cases where tenants leave their trash outside apartments and expect our cleaning staff to take it to external waste containers.

  1. Short-Term Rentals Summer 2024 presented challenges with short-term rentals due to noise, vandalism, and other disturbances. The administration is collaborating with experienced owners and rental agents to create guidelines that improve responsibility. For example, owners will be asked to install noise-monitoring devices in their apartments and display community rules and important contact numbers visibly. 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 perimeter walls were removed as part of the implementation of access control.

Page 5

In 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 well located near the main entrance, is for sale to interested buyers at a very reasonable price. The announcement can be found on the “Idealista” website. 7. Persistent Problems Persistent problems in 2024 included: • Clogs in the sewage system due to wet wipes. • Damage to garage doors caused by rental vehicles. • Broken portal doors and shattered glass due to vandalism. • Disruptions and trash associated with private property renovations. • Unauthorized parking in private spaces belonging to other owners. • Unauthorized use of community electricity to charge electric vehicles. • Pet excrement within the community. CCTV recordings will be used to sanction repeat offenders, as gardeners and cleaning staff refuse to deal with this problem. The administration continues to address these problems through proactive measures and community education. It is essential that owners understand the time and resources consumed by these avoidable situations.

  1. 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 issues with owners. 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 providers. As president, my recommendation would be to reach an agreement with ADENJO.

  2. NAÔ Pool Club Disturbances

The opening in May of the new entrance to NAÔ Pool Club, in front of Giralda/Alhambra portals, caused serious disturbances, including noise, vandalism, and security problems during massive events.

The community, along with Aldea Blanca, initiated legal action against NAÔ, with the first court hearing scheduled for February 2025. Although negotiations for an extrajudicial agreement are ongoing, we maintain cautious optimism about a favorable outcome.

Page 6

Conclusión 2024 has been a year of progress and perseverance for Señorio de Aloha. Despite 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 pending concerns and implement improvements.

Best wishes for 2025. John Riley, President C.P Señorio de Aloha.

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