Question & AnswerQ&A (HLRB MEMORANDUM CIRCULAR NO. 01, S. 1995)
The main purpose is to clarify and amplify the rule that the payment of street light bills in subdivision projects shall be borne by the developer until the street light facilities are donated to and accepted by the local government units (LGUs).
Presidential Decree No. 957 (PD 957), Presidential Decree No. 1216 (PD 1216), and related laws and their implementing rules and regulations govern this relationship.
The owner-developer is liable for the facilities, improvements, infrastructures, or other forms of development represented or promised in brochures, advertisements, and other sales materials, which are enforceable warranties.
The owner or developer must construct and provide the facilities, improvements, infrastructures, and other developments as indicated in the approved subdivision plan within the period fixed in the license to sell.
The subdivision facilities must be turned over or donated to the homeowners' association or to the local government unit, and acceptance by the recipient is mandatory to relieve the owner-developer of maintenance obligations.
Because street lighting is essential for safety, peace, and order within the subdivision.
The subdivision owner or developer is responsible for paying the electric consumption bills for street lights until the facilities are turned over to the local government unit.
The obligation can be terminated once the street light facilities are donated and accepted by the local government unit or homeowners' association as stipulated by law.
The stipulation in the contract will govern, as the resolution says that the payment by developers continues unless otherwise stipulated in the contract.
Acceptance by the homeowners' association or local government unit is mandatory to relieve the owner-developer from continuing maintenance and payment obligations for the facilities.