300 Euro Monthly Community Charge!

Some of us already know about this I think, but we learned through our lawyer that it is GPS' intention to charge this monthly amount, or it was until late last week. Now we understand that it will be an initial one off payment with the actual charge being decided at the first meeting which will be held sometime this August. It is clear that GPS were trying to offset the fact that they have to pay the charge on those unoccupied properties in dispute as well as trying to recoup the paltry level of compensation they have paid to some of us so far. They clearly think we are not that bright - 300 euros is around 150% higher than El Soto and totally out of kilter with a small development such as MHV.

Collectively our best bet is to act together on anything like this - I am sure GPS will have other stunts up their sleeve in the coming months. We need to make sure we prepared for the meeting in August with the GPS appointed administrator (help!!) I for one will not be paying any 'one off' charge until, at the very least, I have a full and totally justified breakdown as to what the 300 euros maybe going towards - their mistakes perhaps!

It May help if I outline some of the costs associated with El Soto Phase 1 and the action that a new community can take to take control of its future.

The budget for a community has a fixed cost element and  variable costs. The community of owners can control these costs, once they are in a position of management. Before that they are at the mercy of the developer and his chosen administrators, who can, in effect, levy whatever costs they choose. In order to exercise total control of their fortunes, the owners must gain control of the administration of the urbanization. This can be achieved by 51% of the owners voting the developer out at the first AGM or a subsequent EGM. To be strictly constitutional the election of a president and an administrator should be an agenda item at the AGM. This change can be achieved through proxy as well as physical voting. The owners will need to have a president and an alternative administration in place at the time of execising this right. The developer will still have voting rights based on the number of unsold and non completed properties. So if 50% of the urbanization remains unsold or is in dispute, then the owners will not be able to take control. Past experience suggests that a community of owners is better keeping a developer on side, rather than threatening to sue at every corner. However there have been a couple of law suits against the developer on phase 1 el soto which have been successful on an individual basis.

Once the owners have control of the budget they can then decide how much to spend on items such as upkeeping the gardens, for example, but items such as pool cleaning are subject to health and safety regulations and would be difficult to reduce unless they were being seriously over charged in the first place.

The community charges per apartment are determined by the individual co-efficient. This being based on the size of the apartment, its terrace area and if , if relevant, the garden area. 

The average costs for a two bedroom apartment in El Soto Phase 1 are: Operational costs (gardens, lifts, water, electric, cleaning,pool and golf club contribution etc.) 230€ per month, plus contributions for repairs & improvements, security and the urbanistica of an additional 60€ per month. Therefore a total of approx 290€ per month. A three bedroom apartment is around 420€ per month.

For further info please contact me at: info@hilltopprops.net