DV - Administrator's email - Cash Call

I just got this email today, saying a cash call of 140k had been approved in the AGM which I was unable to attend.

Did anyone else get this email and have any idea how much we have to pay each and what the funds are for? Is it the exterior painting of the units?

Thanks

HI,

Everybody got this e-mail and there is also 15 pages document about how much each of us has to pay. It is for re-painting of our complex (or only Phase I, not sure) Did you get one? If you give me your e-mail I will forward it to you

Anna

Hi

I got an email from AEA stating their is cash call but not what for, I was not able to attend the AGM but i understand its for re-painting the exterior. , please can someone explain the following

• Should this not be part of the management charges we are already paying we pay enough already
• Which blocks does it relate to, if its only phase one does that mean we will get another cash call every so ofter for the remaining phases
• Currently a lot of owners are not paying their management charges, thus they will certaily not pay this, what will happen to these defaulters

My big fear is now agreeing to requesting this payment it sets a precident to call for cash for all sundry projects in the future what system is in place that this is a one off call i suspect nil

Regards

Derek

The actual purpose of the money is unclear. I agree with other postings. If those who do not pay the fees, paid-or were made to pay-  there would be no need for this.

As many do not pay the fees they are unlikely to pay this amount.

 Hi All,

I have asked for a meeting with our new Community President and the Administrators to discuss this in more detail. So if you have any questions you would like me to raise please send me a PM.

Thanks

I attended the meeting and a vote took place to decide on the cash call which is around 60 euros for each apartment per quarter there is a list on the email stating exactly how much for each apartment but it averages around 60 euro this is for 4 quarters taking us to the next  financial year 2013.

This fund was agreed as an exraordinary payment which will be kept in a seperate fund to decide what to do with it. It may be used to do the repair jobs neccessary due to damp in some apartment blocks they are looking into whether it becomes a big job to repair or just using a product to seal the damp which obviously is cheaper.But they are waiting for reports as to cost and who is responsible for this happening to begin with so the fund could be used to sue Ross Y Falcon  if they are foulnd to be responsible.

At this moment it seems wise to have such a fund available rather then end up with no funds to correct this matter whichever course of action the community decide to persue. It is in all our interests to ensure our community (I.E. all of us owners ) benefit from having apartments fit to live in . 

  Hope this helps to make the situation clearer.

our regular normal payments are supposed to be set so that reserves are bullt up for periodic maintenance.  Cash calls such not be needed.

Currently there are two issues.

1. Remediation of alleged construction defects (e.g. damp penetration)

2. Slow or non-payment of owners.

The former should not need a special fund unless the developer went bust.

But do I take the point about legal costs - we may have to sue the developer and it will take years and lots of money.

Meanwhile there comes a point where we have to perform remediation work ourselves to stop further water damage.

For a temporary peroid we will all have to stump up to get the place looking as smart as it ought to be.  We might eventually get funds back from R-f-F but who can say.  This is the spanish legal system.

But I would worry more about BAD DEBTORS - this will also result in a cash call for much more serious numbers.

I have closely reviewed the list of debtors.  The developer and the two banks pay their fees.  But its seems about half the retail owners are in significant arrears.  The arrears contine to climb.  The collection process is slow and I wonder if we need to use a Brit lawyer to chase Brit debtors ?

Some owners may have vanished and own more on their mortgages.  Others will be bankcrupts.  So in short a lot of the debts will continue to grow and will be uncollectable.  The longer we leave them the less collectable they become.

Either a significant step change must be made in collection or

expect  a BIG cash call in 2013 or 2014  for about  $3,000 each.

Hi All

Does anyone know what happened to the fund which was set up when the Community was first started.  We had to put in a few hundred euros and this was not the quartely fees.  I would have to look back through our paperwork to find out the exact amount.  Also, there was plaster falling off  in the stair wells when we were shown around and we were told 'not to worry as that was being sorted by the builders'.  It's a pity we didn't hassle them to get this sorted earlier as now we seem to be asked to pay for all the things that went wrong in the building process.  What happened to the 10 year guarantee?!!!!!

 Hi 

After reading the posts is it true to say that the cash is only to be used on the first phase, can some one tell me what blocks are in Phase one? it does not seem fair that everyone has to pay and their block is not painted?

If block 8 is not included in the re-painting then can someone give me some paint and i will paint it myself!!! 

I respect the block I live in and its looking very tired and after all this rain the paint is peeling off everywhere, the builders did not do the job in the first place!!! 

Helen.

As stated at the meeting we are no longer phase 1/2/3 we are a community. I myself live in phase 3 and dont object to any repairs or paining in phase 1.

The community as a whole needs to be maintained and the repairs and painting are NOT just in the first phase as some properties built later are in need of repair.

I dont mean to sound nasty but as we all own the properties it is in your own interest to attend the annual meetings and cast your vote otherwise you wont get your fair share of oppinions accross which as an owner you are entitled to.

I know its not always possible due to personal and financial commitents but then you cant really object when others have to make decisions on your behalf.

To be honest the attendance was disgracefull from 600 to 700 apartments there where about 15 people and some of them  voting as a couple.(I.E husband and wife )

The funds will not be used for anything else other than to benefit us and then only when put to the vote .There is going to be another extraordinary meeting as a follow up to the last one in June this year .I think 16th but not sure of exact date.

You can take a paint sample to any paint shop here and get it mixed if you so wish.

Sorry to sound as though i am on my soap box i too dont want to pay any more than neccessary as we are all trying to survive in this economic climate. but  i would love to see more of my fellow owners attending and caring about our homes be it the main residence or second home.

 Demo1212 - the low attendance may be due to the very short period of notice - about 10 days or so.  

Some of us need a couple of months notice.

A sceptic might wonder if the short notice was deliberate.

Some well run communities with resident/owner Presidents set the date 6 to 12 months ahead which gives rise to high attendance.

I am angry about the short notice and being unable to attend.  It is an injustice and counter democratic.

I will be voting to change our administrators for this reason.

We attended the meeting last year in September and it was a complete waste of time as we were outvoted every time.  We were really disheartend.  There were proposals for the gardeners who then had the contract to plant up the stair planters and also take on the pools for less money but the owners were outvoted.   The cleaning company was another issue, the owners were the minority and our votes did not count at all. 

 Hi All,

 I think there has been a lot of progress since last year’s AGM, for example:-

1. As from Jan of this year our Gardeners took over all Phase 3 gardens (doing a great job) and started work on treating the staircase planters. We now have independence regarding the gardening.

2. During this year’s AGM the Vice President (an ordinary Owner who is doing a great job for us) was voted in as President so we now have more community independence.

3. The banks are keen to improve things in order to sell their remaining properties.

4. There is most likely to be an EGM next month (tentative date June 16^th but please confirm with the Administrators) to discuss the cash call, vote on the action plan, update us on the situation regarding the electrical cables in phase 3.

If the EGM does go ahead (I agree there is never enough notice and we should address this) I think it will be more productive than previous meetings and will be in our interest to attend wherever possible or pass on our proxy votes.

 Thanks 

Re the funds for the repainting I set out below copies of correspondence with AEA from 2009. 

Phase 1 was meant to be repainted by the CONTRACTOR (not the devloper) in 2007 and the contractor was also notified of problem areas in the other Phases so as I see it the fund is for the benefit of all owners.

As you an see AEA have proved to be absolutely useless in taking this forward against INCOPLAN or RYF

Dear Sandra,

Michael,

Do you think the two Banks who between them own several hundred units would be forceful in pressing for this work to be done too?   The general status of the whole estate is surely an influence on the saleability of their units.

Or do you think they (the Bank owners) are keen to get the work done quickly in the interest of selling sooner before the market drops further?  Thus the banks are prepared to fork out the cash call and therefore voting for the quickest means to get the painting done?

Any news about what this money is for?

We have no news yet with details on april s meeting.