15 Feb 2010 12:00 AM:
Hi everybody,
I think this may be a question for Maria but I would welcome legal opinion from any forum members.
In 2007, I purchased a townhouse on an urbanization consisting of 24 townhouses and an apartment complex comprising of 53 apartments. At the time of completion, my solicitor was provided with my cuota percentage and the initial urbanization budget. Like all other townhouse owners on the complex we thought our fees were very high (originally over €4000/year) but believed that this was because the community budget was high, therefore, none of us sought to challenge the detailed fee calculations.
However, when I carried out an analysis of the 2008 fees, I found that the Administrator was removing some cleaning and maintenance costs from the overall budget prior to applying the cuota. I found out that the administrator was actually holding two separate budgets, one for the apartment maintenance costs and one for the urbanization community costs (she called it the general fund). She was calculating the normal community fees by applying our cuotas to the general fund and then, for each apartment owner, adding a share of the apartment maintenance costs based on only the apartment only cuotas. As a townhouse owner this seemed a fair approach given that I am responsible for the maintenance and repair to my own house and it would be unreasonable for me to pay for the maintenance and repair of the apartment block to which I have no legal ownership rights or economic interest.
On further examination of the budget I found that despite the removal of some "apartment only" costs there remained an even bigger amount of similar costs within the residual community (general) budget. I raised the issue at the AGM and I then visited the Administrator with the President to discuss the matter. The Administrator agreed that townhouse owners should not be paying for any maintenance or repair costs incurred on the apartment block as these costs were the sole responsibility of apartment owners. The Administrator agreed to ensure that all "apartment only" costs would be separated properly in future. Unfortunately now that this decision has been communicated to apartment owners they are angry that their fees (community fees + their share of the apartment only costs) have increased. They are contesting the Administrator’s advice and are now wanting to vote to put all costs into one single budget and share these out across the whole community. If this vote is agreed it will mean that townhouse owners will be paying individually for the maintenance and repair costs on their own properties and 50% of all the maintenance and repair costs of the apartment block i.e. townhouse owners end up subsidising apartment owners maintenance costs by 50%.
I think that the community Administrator Is right but I would welcome some independent legal advice on this one. Can anyone help?
Regards
Cathy
Thread:
Definition of Community Costs
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