Mr. Antonio Tinsay of UBFHAI sent us this Jan. 18th email:
Senate Majority Leader Juan Miguel F. Zubiri, in a press briefing at the Senate, said that homeowners and HOAs are now well-protected and will cut conflicts now experienced in many communities with the signing into law last January 7, 2010 of RA 9904 otherwise known as the Magna Carta for Homeowners and Homeowners Associations.
"In very clear and specific language the law laid down the rights and responsibilities of homeowners and the guidelines on the operations of homeowners associations," said Zubiri, past chairman of the Committee on Housing, Urban Planning and Resettlement now chaired by Senator Rodolfo Biazon.
"From now on, homeowners and homeowners association members will be supported by the law’s clear provisions and guidelines ensuring their right to avail of basic community services and facilities due them. There will be less frustrations on both sectors."
"The Magna Carta will be the vehicle to bring peace and comfortable living conditions in many communities," he said.
"This law will benefit all homeowners from the different socio-economic classes. We made sure that the benefits will be encompassing. Homeowners are defined as ‘not only those living in titled homes and lots in subdivisions but to lessees, awardees, beneficiaries, or occupants in government socialized or economic housing or relocation projects, and even underprivileged and homeless citizens while they are in the process of being accredited as beneficiaries or awardees of ownership rights under the CMP, LTA, and other similar programs.’"
Zubiri clarified that "contrary to earlier perceptions, this law was not made for rich residents of gated subdivisions only. Lessees in government socialized housing projects or urban estates and those in communities of underprivileged and homeless citizens are also considered as homeowners for the purpose of qualifying as a member of a homeowners’ association without need of any written consent or authorization."
"We tried our best not to leave gray areas to prevent conflicts and confusion." Zubiri said the rights and benefits of homeowners, both members and non-members of homeowners associations, are enumerated in the law. “
The highlights of the new law are:
The rights of a member are as follows: "(1) to avail of and enjoy all basic community services and the use of common areas and facilities; (2) to inspect association books and records during office hours and to be provided upon request with annual reports, including financial statements; (3) to participate, vote and be eligible for any elective or appointive office of the association subject to the qualifications as provided for in the bylaws; (4) 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; (5) to participate in association meetings, elections and referenda, as long as his/her bonafide membership subsists."
On the other hand, members have the following duties: "(1) to pay membership fees, dues and special assessments; (2) to attend meetings of the association; and (3) to support and participate in projects and activities of the association." The bylaws shall contain the definition and procedure of determining who are delinquent and administrative sanctions even as it guarantees their right to due process.
HOMEOWNER ASSOCIATIONS (HOAs)
The rights and powers of the association are:
"- regulate the use, maintenance, repair, replacement and modification and modification of common areas and cause additional improvements to be made part of the common areas: Provided, That the aforementioned do not contradict the provisions of the approved subdivision plan;
- regulate access to, or passage through the subdivision/village roads for purposes of preserving privacy, tranquility, internal security, safety and traffic order;
- ensure the availability of quality water services at a reasonable price and, at its option, administer and manage the waterworks system of the subdivision;
- impose or collect reasonable fees for the use of open spaces, facilities and services of the association to defray necessary operational expenses, subject to the limitations and conditions imposed under the law, the regulations of the board and the association’s bylaws;
- subject to consultation and with the approval of a simple majority of the association members, allow the establishment of certain institutions such as, but not limited to, schools, hospitals, markets, grocery stores and other similar establishments that will necessarily affect the character of the subdivision/village in terms of traffic generation, and/or opening the area to outsiders which may result in the loss of privacy, security, safety and tranquility to its residents, in accordance with…. ZONING laws Provided, That such prior approval shall not be necessary for the establishment of sari-sari stores; and,
- suspend privileges of and services to and/or impose sanctions upon its members for violations and/or noncompliance with the association’s bylaws, rules and regulations,” among others.
DUES AND INCOME OF HOAs ARE TAX-EXEMPT
- association dues and income derived from the use/rental of its facilities shall be TAX-EXEMPT; Provided, That such income and dues shall be used for the cleanliness, safety, security and other basic services needed by the members, including the maintenance of the facilities;” among others.
Zubiri also stressed that the Magna Carta strengthens the accountability of association directors, trustees and Board. "Through a signed petition of a simple majority of the association members in good standing, subject to verification and validation of the HLURB, a director/trustee may be removed for causes provided in the bylaws of the association: Provided, That if a majority of the members of the board is removed, it shall be considered a dissolution of the entire board, in which case, Section 14 hereof shall govern.
A signed petition of two-thirds (2/3) of the association members subject to verification and validation of the HLURB, the board of the association may be dissolved for causes provided in the bylaws of the association."
"Until the new board members shall have been elected and qualified, the HLURB shall designate an interim board: Provided, That, such board shall be composed of association members in good standing: Provided, further, That such interim board members shall not be eligible to run in the election called for the purpose of replacing the members of the dissolved board."
The Magna Carta also provided for the duties and responsibilities of the HLURB. Among which are as follows: "Regularly conduct free orientation for officers of homeowners’ associations or deputize another competent agency to conduct the orientation; Formulate and publish a Code of Ethics and Ethical Standards for board members detailing prohibited conflicts of interest; Hear and decide intra 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."
The HLURB is also authorized to ask the assistance of the Philippine National Police and other law enforcement agencies and instrumentalities of the government if necessary to rightfully enforce its functions.
Zubiri stressed the Magna Carta would "hopefully put an end to the confusion on where to register homeowners’ associations. All homeowners’ association shall register with the Housing and Land Use Regulatory Board (HLURB), instead of listing with the Securities and Exchange Commission (SEC). This will immediately lessen future conflicts and unify fractured homeowners belonging to different associations in one community."
He explained that while existing associations previously registered with the Home Insurance Guarantee Corporation (HIGC) or SEC would still be recognized, the associations could opt to register anew to the HLURB without penalty after the law becomes effective.
As to the activities of local governments such as zone reclassification, the law mandates the LGU to first get the consent of the homeowners in the area targeted for reclassification before these are undertaken.
The Magna Carta also provided for prohibited acts, among them: To deprive any homeowner of his/her right to avail of or enjoy basic community services and facilities where he/she has paid the dues, charges and other fees for such services; To prevent any member in good standing from participating in association meetings, elections and referenda. Violations of the Magna Carta shall be punished with a fine of not less than P5,000 but not more than P50,000 and permanent disqualification from being elected or appointed as members of the board, officer or employee of the association.
attached is a scanned copy of RA 9904:
(Please click on image to enlarge)