This document summarizes key provisions of Republic Act No. 9904 (also known as the Magna Carta for Homeowners) and Resolution No. 770 regarding homeowners associations in the Philippines. It outlines:
1) The basic rights of homeowners, including access to community services if fees are paid.
2) Questions homeowners should ask their association about registration status, articles of incorporation, and voting procedures for amendments.
3) Who qualifies as a "homeowner".
4) Acts of the association that require a simple majority vote of all members versus a 2/3 vote, such as major property transactions or dissolution.
Original Description:
Hi, This is just my observation about the law...not really authoritative of the subject.
This document summarizes key provisions of Republic Act No. 9904 (also known as the Magna Carta for Homeowners) and Resolution No. 770 regarding homeowners associations in the Philippines. It outlines:
1) The basic rights of homeowners, including access to community services if fees are paid.
2) Questions homeowners should ask their association about registration status, articles of incorporation, and voting procedures for amendments.
3) Who qualifies as a "homeowner".
4) Acts of the association that require a simple majority vote of all members versus a 2/3 vote, such as major property transactions or dissolution.
Copyright:
Attribution Non-Commercial (BY-NC)
Available Formats
Download as ODT, PDF, TXT or read online from Scribd
This document summarizes key provisions of Republic Act No. 9904 (also known as the Magna Carta for Homeowners) and Resolution No. 770 regarding homeowners associations in the Philippines. It outlines:
1) The basic rights of homeowners, including access to community services if fees are paid.
2) Questions homeowners should ask their association about registration status, articles of incorporation, and voting procedures for amendments.
3) Who qualifies as a "homeowner".
4) Acts of the association that require a simple majority vote of all members versus a 2/3 vote, such as major property transactions or dissolution.
Copyright:
Attribution Non-Commercial (BY-NC)
Available Formats
Download as ODT, PDF, TXT or read online from Scribd
“MAGNA CARTA FOR HOMEOWNERS AND HOMEOWNERS’ ASSOCIATION AND FOR OTHER PURPOSES” enacted by the Congress in relation to RESOLUTION NO. 770 of the HLURB known as the “FRAMEWORK FOR GOVERNANCE OF HOMEOWNERS ASSOCIATIONS” by: Ice C.
Approval Date of R.A. No. 9904: January 7, 2010 (Effectivity Date: July 10, 2010) Approval Date of Resolution No. 770: September 20, 1994
1. What are the rights of a Homeowner?
Paragraph (d) of Section 2 of the said law provides that “no homeowner may be excluded from enjoying basic community services and facilities which include but are not limited to the following: a. Security b. Street and vicinity lights c. Maintenance, repairs and cleaning of streets d. Garbage collection and disposal e. And other similar services and facilities
NOTE: However, Section 5 of the same Act provides that in order
to avail the right to enjoy basic community services and facilities, the homeowner should pay the necessary fees and other pertinent charges.
2. Basic questions that you need to ask your Homeowners’
Association: a. Is your homeowners’ association registered at the Housing and Land Use Regulatory Board (HLURB) or with the Home Insurance Guarantee Corporation (HIGC) or the Securities and Exchange Commission (SEC)? Why? Under Sec. 4 of R.A. 9904, every association of homeowners shall be required to register with the HLURB. If it is not yet registered with the HLURB but it is registered with HIGC or the SEC, such association shall not be charged a penalty when they register with the HLURB after this Act takes effect (under the last paragraph of Sec. 4 of this Act). NOTE: This means that notwithstanding the registration with HIGC or SEC, the association is still required to register with the HLURB. What is the effect if the association of homeowners fails to register with the HLURB? NOTE: If the association fails to register with the HLURB (after the effectivity of this Act without valid reasons), it shall be considered as a de facto association and the officers and members of the unregistered association representing themselves as an association or exercising the essential characteristics, rights and privileges of an Association, shall be personally liable for the obligations and liabilities that may be incurred by the de facto association.
b. Does your homeowners’ association have Articles of
Incorporation and By-Laws? Why? A homeowners’ association is a non-stock, non-profit corporation. Under the Corporation Code (which grants an entity the primary franchise to operate as a stock or non-stock corporation), every corporation is required to submit its Articles of Incorporation and By-Laws. c. In adopting the Articles of Incorporation or By-Laws, was the required vote of simple majority obtained from the members of the homeowners’ association? Paragraph (a) of Section 10 of this Act requires that before Articles of Incorporation or By-Laws are adopted or amended, the approval of the members through a vote of simple majority (50% + 1 of the total number of members of the association) must be obtained. (Section 2 of Resolution No. 770 known as the “Framework for the Governance of Homeowners Associations).
3. Who are considered as “homeowners”? (Paragraph J, Section
3 of RA 9904 and Sec. 4 of Resolution No. 770) a. Owner or purchaser of a lot in a subdivision or village or a mortgagee who becomes an owner by virtue of foreclosure of mortgage and consolidation of title in his name; b. Awardee, usufructuary, or legal occupant of a unit, house and/or lot in a government socialized or economic housing or relocation project and other urban estates; (NOTE: They are considered as homeowners without need of a written consent or authorization—provided under last paragraph of Section 6) c. An informal settler in the process of being accredited as beneficiary or awardee of ownership rights under the Community Mortgage Program (CMP), Land Tenure Assistance Program (LTAP); d. Lessee under a contract of lease with a term of at least 3 years, with a written consent or authorization from the owner of the lot or housing unit [provided under Section 6 of this Act in relation to Sec. 4, Resolution No. 770]. e. An occupant by virtue of a subsisting usufruct in writing granted by the owner f. The developer of the subdivision project who holds title to unsold lots or units
4. Which acts of the association of homeowners would
require the vote of all the members of the association and not merely the vote of the Board of Directors or Trustees?
*There is a need to reconcile the provisions of R.A. 9904 and Resolution
No. 770. The law enacted by Congress shall prevail over Resolutions made by administrative bodies.
Acts of the Association of Number of Votes
No. Homeowners Required Amend and adopt the Articles of Simple Majority Incorporation, by-laws, rules and 1 (50% + 1 of all the regulations pursuant to existing laws and members) regulations [Basis: R.A. No. 9904] Acquire, hold, encumber and convey in its own name any right, title to or interest in real or personal property where the Simple Majority 2 amount of the property/ies exceeds 10% (50% + 1 of all the of the association’s cash holdings for its members) use in the course of its normal operations [Basis: R.A. No. 9904] 3 Allow the following acts: Simple Majority 1. establishment of certain institutions (50% + 1 of all the such as, but not limited to schools, members) hospitals, markets, grocery stores and other similar establishments that will necessarily affect the character of the subdivision/village in terms of traffic generation; (except sari-sari stores, home industries and similar small-scale business enterprise within the village classified as socialized housing) 2. opening the area to outsiders which may result in the loss of privacy, security, safety, and tranquility to its residents [Basis: R.A. No. 9904] Sale, lease, exchange, mortgage, pledge Vote of at least 2/3 or other disposition of all or substantially 4 of the general all of the association properties [Basis: membership Resolution No. 770] Incurring, creating, or increasing bonded Vote of at least 2/3 5 indebtedness [Basis: Resolution No. 770] of the general membership Merger or consolidation of the association with another association, membership in Vote of at least 2/3 6 or disaffiliation from a federation, and of the general segregation from the association [Basis: membership Resolution No. 770] Use of association funds in projects not Vote of at least 2/3 otherwise included in the regular or 7 of the general approved program of activities and membership expenditures [Basis: Resolution No. 770] Ratification of adverse interest or business Vote of at least 2/3 transactions by directors as provided for 8 of the general under this Framework [Basis: Resolution membership No. 770] Extension or shortening of the term of Vote of at least 2/3 9 existence of the association [Basis: of the general Resolution No. 770] membership Dissolution of the association [Basis: Vote of at least 2/3 10 Resolution No. 770] of the general membership Election of the Board of Directors or Trustees *The by-laws may provide that only Provided for under 11 members of good standing shall be the by-laws considered in determining a quorum for the purpose of electing directors and officers [Basis: Resolution No. 770] 12 Removal of a Director or Trustee Signed petition of a *But the signed petition is subject to the simple majority of verification and validation by the HLURB the association [Basis: R.A. No. 9904] members in good standing Dissolution of the Board Signed petition of * But the signed petition is subject to the 2/3 of the 13 verification and validation by the HLURB association [Basis: R.A. No. 9904] members
Take note that in numbers 4-10 enumerated above, it is expressly
provided under Section 32 of Resolution No. 770 that a member, regardless of his standing, shall be entitled to vote on such matters.
5. The Board is separate from the officers. Section 16 of
Resolution No. 770 (not inconsistent with R.A. 9904) provides that there shall be a board that is able to exercise objective judgment on Association affairs INDEPENDENTLY of its officers. This means that in voting for acts which the Board alone may decide, the officers do not have the legal capacity to vote themselves, unless they are at the same time, if allowed by the law, also members of the Board of Directors or Trustees.
Documented History of PhilRES' Recognition and Accreditation As The Sole Accredited and Integrated Professional Organization (AIPO) For The Real Estate Service of The PRC