The The Housing and Land Use Regulatory Housing and Land Use Regulatory Board (HLURB) Board (HLURB) is one of the key housing is one of the key housing

agencies under the umbrella of the agencies under the umbrella of the Housing and Urban Development Housing and Urban Development Coordinating Council (HUDCC). Coordinating Council (HUDCC).

It is identified as one of the It is identified as one of the regulatory bodies for housing regulatory bodies for housing

and land developmentand land development

HOUSING AND LAND USE REGULATORY BOARD

HLURB is clothed with quasi-judicial HLURB is clothed with quasi-judicial authority to expedite adjudication of authority to expedite adjudication of

violations and complaints against land violations and complaints against land and housing developmentand housing development

HOUSING AND LAND USE REGULATORY BOARD

HLURB has 3-fold functions:

PlanningPlanning RegulationRegulation AdjudicationAdjudication

Mandates of HLURBMandates of HLURBMandates of HLURBMandates of HLURBA. PLANNINGPLANNING : (EO 648; EO 72; RA 7279)

1. Formulation of Comprehensive Land Use Planning Guidelines

2. Technical Assistance to LGU’s in CLUP preparation.

3. Review of CLUPs.4. Approval of CLUPs for Highly

Urbanized Cities (HUCs), Independent Component Cities (ICCs) LGUs for Metro Manila and Provincial Physical Framework Plans (PPFPs)

Mandates of HLURBMandates of HLURBMandates of HLURBMandates of HLURB

B. REGULATIONREGULATION: (EO 71; PD 957, 1216, 1344; RA 9904; RA8763 (Sec.26) ; EO 90)1. Licensing and Monitoring

of Subdivision & Condominium Projects

2. Approval of Condominium Plans

3. Registration and Supervision of HOAs

4. Registration of Real Estate Brokers, Dealers and Salesmen

Mandates of HLURBMandates of HLURBMandates of HLURBMandates of HLURB

C. ADJUDICATIONADJUDICATION: (EO 648; RA 9904, 8763 (Sec. 26))1. Disputes between

Subdivision Lot or Condominium unit buyer and Developer

2. Homeowners Disputes3. Appeals from Decisions

of Local Zoning Bodies.

Republic Act No. 8736Republic Act No. 8736

Pursuant to Section 26 of Republic Act No. 8736,

which took effect on March, 2000 the powers,

authorities and responsibilities vested in the Home

Insurance Guaranty Corporation (HIGC) now the

Home Guaranty Corporation (HGC), with respect to

homeowners associations under Republic Act No.

580, as amended by Executive Order No. 535 series

of 1979 and Presidential Decree No. 902-A, were

transferred to the Housing and Land Use Regulatory

Board (HLURB).

Republic Act 9904 Republic Act 9904 Magna Carta for Homeowners and

Homeowners’ Associations

Republic Act 9904 Republic Act 9904 Magna Carta for Homeowners and

Homeowners’ Associations

HLURB MANDATES RELATING TO HOMEOWNERS ASSOCIATIONS AS PER RA 9904

REGULATIONREGULATION Regularly conduct free orientation for officers of homeowners Regularly conduct free orientation for officers of homeowners

associations or deputize another competent agency to associations or deputize another competent agency to conduct the orientation;conduct the orientation;

Register all associations, federations, confederations or Register all associations, federations, confederations or

umbrella organizations of the associations;umbrella organizations of the associations; Formulate the rules or manner of verification and validation Formulate the rules or manner of verification and validation

of petitions for the removal of director/s or trustee/s of the of petitions for the removal of director/s or trustee/s of the association or dissolution of the board;association or dissolution of the board;

ADJUDICATION

Hear and decide intra-association and/or inter-association controversies and/or conflicts, without prejudice to filing civil and criminal cases by the parties concerned before the regular courts: Provided, That all decisions of the HLURB are appealable directly to the Court of Appeals

HLURB MANDATES RELATING TO HOMEOWNERS ASSOCIATIONS PER RA

9904

What is a homeowners association?

Why is there a need to register homeowners’

associations?

To acquire juridical

personality

To avail of the

services of HLURB

Article of Association, duly notarized &

signed on each and every page by all the

incorporators (5 to 15) accompanied by the

following:

1) Notarized undertaking by the association to: a) Change the name of the association in the event that another persons, firm or entity has acquired a prior right to the use of the name or one similar thereto; and b) Comply with the rules and regulations of HLURB

5) Authorization by the incorporation for the representative of the

association to transact/follow-up its registration application with the HLURB

6) Approved Subdivision/Development Plan indicating the area covered

7) By-laws duly notarized & signed on each and every page by all the incorporators (5 to 15

If application is a self-help housing project or one undertaken under GLAD, CMP or other similar land tenurial assistance

program, the following additional documents must be submitted Location plan and vicinity

map of the project, whether on-site or off-site, duly signed and certified by a geodetic engineer

Notarized list of officers and members stating the nature of their occupancy, whether as owner or tenant

Certified true copy of the original or transfer certificate of title issued not later than 30 days before the date of application

Duplicate original copies of the notarized letter of intent to sell, contract to sell, deed of absolute sale, or MOA between the landowner and association;

List of beneficiaries as certified by the proper settlement office of the LGU or Urban Poor Affairs Office (UPAO)

Certificate of orientation from the SHFC accredited mobilizer

Bylaws of the association as ratified and approved by the members

• SHFC Certification that its is the only proposed association that is seeking to apply for CMP loan in order to acquire the parcel of land

• LGU Alteration approval of subdivision plan for HOAs intending to avail of CMP if located within existing subdivisions

• For NHA projects, certification that it is the HOA recognized by NHA

HOA Registration Approval Process

Registration Fee

Php 1,818.00

Registration of Bylaws

Php 780.00

Registration of Article of AssociationPhp 780.00

Registration of Books

Php 240.00

UP Legal Research Fee

Php 18.00

Number of Incorporators, Directors and Members,

Required Number of Incorporators

The number of incorporators shall

not be less than 5 nor more than 15

Required Number of Board of Directors

The number of Board of Directors shall not

be less than 5 nor more than 15

Qualifications of

BOD/Officers(Sect. 52,

Rule 9)

Must be of legal age; Must be a member in good

standing Must be an actual resident of the a

subdivision, housing or relocation project for at least 6 months as certified by the association secretary or in default thereof, by a member having personal knowledge thereof

Has not been convicted by final judgment of an offense involving moral turpitude

The legitimate spouse of a member may be a candidate in lieu of the member

Maximum Number of Members

Maximum Number of Members

If the association would avail the Community Mortgage Program

and other similar tenurial program, the members shall not

be more than 200 members

If the association would avail the Community Mortgage Program

and other similar tenurial program, the members shall not

be more than 200 members

Noneexcept

Who are Homeowners under RA

9904?

(1)Owner or purchaser of lot in a subdivision/village;

(2) An awardee, usufructuary or legal occupant of a unit, house and/lot in a government socialized or economic housing or relocation project and other urban estates;

(3)(3)An informal settler in the process An informal settler in the process of being accredited as beneficiary of being accredited as beneficiary or awardee of ownership rights or awardee of ownership rights under the CMP, LTAP and other under the CMP, LTAP and other similar programs. similar programs.

Section 3. RA 9904Section 3. RA 9904

Can there be more than one association in a subdivision or

village?

Section 26. Adjudicatory Mechanism in the Registration of Association

In case two or more associations are organized within the same subdivision/village and both applied for registration with HLURB, the office shall register only only one associationone association in accordance with the following guidelines:

•The association which submitted first its registration papers and complied with all the requirements of the HLURB shall be registered

Section 26. Adjudicatory Mechanism in the Registration of Association

›In case there are two (2) associations registered with the SEC or HIGC, then the association which was registered EARLIER shall be recognized

Section 26. Adjudicatory Mechanism in the Registration of Association

›In case one (1) of the associations is registered with the SEC and the other with the HLURB, the one earlier registered shall prevail and the registration of the other shall be revoked, provided the requirements under Section 24 are submitted within a period of one (1) year of the effectivity of this rules.

Nothing in this Rules shall prevent the HLURB from taking into consideration other factors in determining whose association shall be registered and recognized.

Kinds of HOA Members

•Members in good standing

•Members who are not in good standing/delinquent members

Who is a member in good standing?

He is one who complies with his duties as member of his homeowners association

What are the duties of a

member?

Duties of a memberA member shall have the following duties:

To pay membership fees, dues and special assessments;

To attend meetings of the association; and,

To support and participate in projects and activities of the association

What if a member fails to comply

his duties and obligations?

All the rights and privileges of a

member as provided in Section

11 of the RA 9904 implementing

rules and regulations and in the

Bylaws will be suspended upon

the declaration of delinquency by

the Board

What are the rights of a

member in good standing?

Rights of a memberA member in good standing shall have the right to –

Avail of and enjoy all basic community services and the use of common areas and facilities;

Inspect association books and records during office hours and to be provided upon request with annual reports, including financial statements;

Participate, vote and be eligible for any elective or appointive office of the association subject to the qualifications as provided for in the bylaws;

Rights of a memberA member in good standing shall have the right to –

Demand and promptly receive deposits required by the association as soon as the condition for the deposit has been complied with or the period has expired;

Participate in association meetings, elections and referenda, as long as bona fide membership subsists; and,

To enjoy all other rights as may be provided in the by-laws of the association.

Declaring Members as Declaring Members as DelinquentDelinquent

Delisting or Expulsion of Delisting or Expulsion of Delinquent MemberDelinquent Member

Unless otherwise provided in the by-laws, the following may be declared delinquent by the Board of Directors in accordance with the procedure in Section 14:

A member who has failed to pay three (3) cumulative monthly dues or membership fees, or other charges/assessment despite demands by the association

A member who has repeatedly violated the association’s

by-laws and/or declared policies

Board or Committee assigned by Boarddetermines whether a member a)failed to pay at least 3 cumulative monthly dues, fees or other charges, orb)repeatedly or grossly violated the by-laws or policies of the association

The President or the designated officer of the association shall notify the said member in writing of the violation and require him to explain in writing, within 15 days from receipt of notice, why he should not be declared delinquent

After the lapse of 15 days, with or without a with or without a written explanationwritten explanation, the President or the designated officer shall submit the matter to the Board or committee for hearing and deliberation.

Thereafter, the member may be declared delinquent by majority vote of all members of the Board.

15 daysTreasurer’

s Report

Assn Book of Records

The rights and privileges of a member as provided in Section 11 is suspendedsuspended upon the declaration of delinquency by the Board

• The Board shall, by MAJORITY VOTE OF ALL ALL MEMBERS, reinstate the membership of the delinquent member, provided that unpaid dues, fees or charges are paid or the sanctions imposed are satisfied.

• Nothing in this Rules shall prevent the association from imposing other sanctions against the delinquent member in accordance with the by-laws.

Waiver of RightsDefault in Payment

Violation of By-Laws

In cases of CMP, GLAD and other similar land CMP, GLAD and other similar land tenurial projects/arrangementstenurial projects/arrangements, the resolution delisting/expelling members from the association, and the corresponding substitutions, if any, shall be submitted to the HLURB, within thirty (30) days from its adoption. Otherwise, the delisting or expulsion of members shall not not be enforceableenforceable.

POST REGISTRATION & POST REGISTRATION & ANNUAL REPORTORIALANNUAL REPORTORIALREQUIREMENTREQUIREMENTSS

Prepared by:HOA TEAM

Prepared by:HOA TEAM

REPORTORIAL REQUIREMENTS :REPORTORIAL REQUIREMENTS :

1.POST REGISTRATION REQUIREMENTS

2. ANNUAL REPORTS

3. ELECTION REPORTS

POST REGISTRATION(Section 43, Rule 8)

Within 30 days from the issuance of the Certificate of Registration of the association, the HOA shall submit the following to the Regional Office:

Tax Identification Number

BIR Certification/Official BIR Stamps/ Receipts

Updated Master List of members & their authorized representatives, if any with their corresponding signatures as attested by the association’s incumbent Secretary

BOOKS TO BE KEPT (RULE 8, SECTION 45)BOOKS TO BE KEPT (RULE 8, SECTION 45)

Every association shall keep and carefully preserve a record of all transactions and minutes of meetings of the general membership and the board of directors or trustees, setting forth, in detail, the date, time, and agenda, proof of notice, whether the meeting was regular or special, and the significant acts done or ordered in the meeting.

Books Required for Stamping(Section 44, Rule 8)

Within thirty days from registration, the association shall submit the following books in blank forms to the Regional Office for stamping or marking as official association books

Cash Receipts Book and Cash Disbursement Book

Ledger and journal duly registered with BIR

Reminders

• The funds of the association shall be kept in accounts in the name of the association and shall not be joined with the funds of any other association, or any person responsible for the custody of such funds.

• The outgoing directors/ officers shall turn-over the association books, records, properties and other assets to the new set of officers and directors within 60 days from the election of the new board

• Where there is a failure to elect a new set of directors/officers, the incumbent directors/officers shall be allowed in a holdover capacity until their successors are elected and qualified. In no case shall the holdover period exceed two years.

Annual Reports (Section 46, Rule 8)

Within ninety (90) days from the close of the fiscal period, the association shall submit to the Regional Office the following

books and documents concerning its operations during the preceding accounting period:

1. General Information Sheet detailing the names of the members of the BOD or trustees, including the executive and other accountable association officers;

2. Latest financial statement certified correct by the treasurer and auditor of the association & attested to by the Chairman of the Board /President, and externally audited, preferably, by and independent CPA

3. Certified true copy of the master list of members and the compiled resolutions duly certified by the association’s incumbent secretary and attested to by the President

Independent Audit; When Necessary(Sec. 71, Rule 11)

If, upon evaluation, the Regional Office finds ambiguity or inconsistency in the documents submitted, it may require the BOD of the association to engage, at its own expense, the services of an independent auditor who shall conduct and review the said financial records, and finish the same within 30 days from receipt of the HLURB order.

The independent auditor shall be an accredited CPA of the Board of Accountancy and the SEC. Thereafter, the association shall submit the report of the independent auditor

If, upon evaluation, the Regional Office finds ambiguity or inconsistency in the documents submitted, it may require the BOD of the association to engage, at its own expense, the services of an independent auditor who shall conduct and review the said financial records, and finish the same within 30 days from receipt of the HLURB order.

The independent auditor shall be an accredited CPA of the Board of Accountancy and the SEC. Thereafter, the association shall submit the report of the independent auditor

a. Proof of notice of election together with the secretary’s affidavit stating that the notice of election was posted in conspicuous places inside the community stating the time, date and place of the election;

b. A copy of the notice sent to the members or posted in conspicuous places stating the time, date and place of the election;

c. Attendance sheet signed by the members and attested by the association’s incumbent secretary;

d. Notarized minutes of elections prepared and signed by the Election Committee (ELECOM) who supervised the election of the association;

e. Election returns duly certified by the ELECOM who supervised the election of the association and

f. Master list of qualified voters as certified by the association’s incumbent secretary and treasurer.

THANK YOUTHANK YOU