Question & AnswerQ&A (HLURB MEMORANDUM CIRCULAR NO. 04, S. 2014)
The primary purpose of HLURB Board Resolution No. R-911, Series of 2013 is to promulgate the Code of Ethics and Ethical Standards for Officers and Board Members of Homeowners Associations to guide their conduct and ensure they serve the majority interests of the members responsibly and ethically.
The Housing and Land Use Regulatory Board (HLURB) is mandated under Section 20(b) of Republic Act No. 9904 to formulate and publish a Code of Ethics and Ethical Standards for Board Members of Homeowners Associations.
Homeowners Associations must incorporate or append the Code of Ethics and Ethical Standards into their By-Laws as an integral part; failure to do so after notice may result in suspension or revocation of their Certificate of Registration.
A 'Conflict of Interest' occurs whenever the integrity, trustworthiness, or impartiality of an officer/board member is potentially undermined, compromised, or impaired by reason of his/her inconsistent or competing personal or professional interests and welfare, or that of his/her family and/or relatives up to the fourth civil degree.
They must fully disclose the conflict of interest in writing to the Board at the earliest opportunity and inhibit and withdraw themselves from negotiations and voting related to the conflict unless providing input when requested.
No, officers and board members shall not use their positions, powers, or resources of the association to engage in partisan political activities or to support any political party or candidate.
The guilty officer or board member may be fined not less than PHP 5,000 but not more than PHP 50,000 and permanently disqualified from being elected or appointed as a board member, officer, or employee of the association, with possible further disciplinary action by HLURB.
The Board shall form an investigation committee to determine probable cause confidentially; if found, the officer/member must answer the complaint and abstain from proceedings. The Board then evaluates evidence and either dismisses the complaint or imposes sanctions if guilt is established.
This Code applies to all officers and members of the Board of Directors/Trustees of duly registered and/or accredited homeowners associations under RA 9904.
All dealings must be transparent, and no officer/board member may use their position to promote or benefit personally or professionally through recommendations or endorsements of such entities.