Definition of Community Costs

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

I am in a similar position but in the case of my community it is the Apartment community fees that are almost double some of the Townhouse fees.

Yes we have lifts to maintain,lighting,cleaning etc. but I feel slightly aggrieved as my 2bed/1bath Apartment costs more fees than a 3bed/2 bath townhouse.

My qouta includes my basement car parking and storage space. Surely this % is not as valuable as say a third bedroom yet I'm paying a premium for it.

The whole issue of 'mixed communities' will surely get messy when it comes to use the 'Communal Fund' for re-decoration,repairs etc. I can see the Townhouse owners kicking up a fuss if the Apartment Block needs scaffolding and painting in a few years.

I would be interested in seeing how others have approached this as I think its going to be very divisive.

As far as I understood your community is regulated by section 24 of the HPA which tries to cover a legal loophole for those macro-developments in which there are sub-communities integrated in a master community.

One may wish to create a master community in the following situation. Assume there are four blocks of flats around a garden. Each block of flats has its own unique maintenance and covenant issues, but all blocks want to share the common garden. Each block could be a separate community with maintenance obligations, voting and other rights pertaining just to that block. Only those in the affected block would get to vote on issues relating to that block. Each sub-community has its own service fees, its Owners’ Committee, its president and its own common elements  but it is also belongs to a master community with general common elements.

Each sub-community has to contribute to the expense of the master community in accordance with the allocation established for this purpose in the title, thus, there are two types of allocations some in respect of each property to its sub-communities; and others of each sub community in respect of the master community.

As I said before, everything in relation of the contribution  system is established in the title aka master deed or 'declaracion de obra nueva y propiedad horizontal' of your development, bearing in mind that the amendment of its provisions requires unanimity

It is important to get a copy fully translated of the master community title of your development as well as the sub community' title of each sub community in order to find out whether the administrator is distributing the costs accordingly.

Thanks for the prompt response and the advice around HPA and I will certainly follow this up with my Administrator as she was also the administrator when the community was being set up so she should fully understand the issues. 

Should the original master deed not define a sub community then presumably I am legally obliged to pay a full share of all the community costs including the aprtment maintenance costs.  In that situation I will clearly be paying directly for  my own property maintenance charges but also making a substantial contribution towards the maintenance costs of properties I do not own or have any economic interest in. As it is very unlikely that any apartment owners are going to vote to change the system (turkeys and Christmas comes to mind) there would be no chance of getting the deed changed through the unanimous consent of the community. What legal option is then left open to me and the other townhouse owners to challenge the original deed in a local court

If after checking the governing documents of your development and what it is provided there for the owners' contribution to the general expenses of the community you think it is unfair, you and every owner affected may challenge the title at court within four years since the title was registered with the Land Registry.

Many thanks for your help 

Cathy

I agree with CathyP. We own a villa on an urbaization with apartment blocks. I am more than happy to contribute to the communal areas such as the pools, but I do object to contributing to the upkeep of the apartment buildings when I have to maintain my own villa and garden. Why should the fact that I have a 3 bed house make any difference? We were originally told by Parador that the apartment owners would pay more to cover the things exclusive to them, but we seem to pay a lot more than they do! The villa owners are in a minority and I don't think they have the will to buck the system so I guess we'll just have bear it as long as we stay there.

Poppyseed,

Don't give up, get detailed copies of the community accounts and try to estimate the additional cost you and other house owners are overpaying. If significant I would expect other house owners to come onboard and there are clearly avenues open for making a legal challenge. Of course cost of such action may be a prohibitive but I get the feeling that you don't have to go through the Spanish High Courts to get unfair community policies overturned.

Good luck

CathyP