Question & AnswerQ&A (HLURB ADMINISTRATIVE ORDER NO. 05, S. 2005)
An Association refers to a homeowners association registered with the HLURB or previously with Home Guaranty Corporation or the Securities and Exchange Commission, including homeowners and lot owners/buyers in subdivision projects, awardees, lessees, occupants in housing or relocation projects, and informal settlers under certain government programs.
Registration with the HLURB grants a homeowners association juridical personality. Unregistered associations or unincorporated groups may have their officers or members personally liable for obligations incurred by the de facto association.
Members qualify as homeowners, lot owners or buyers, mortgagees, lessees under contracts of at least three years with the owners' consent, occupants under usufruct, beneficiaries under certain government land programs, or developers holding unsold titles.
Membership is generally voluntary except when required by deed restrictions, purchase contracts, or tenurial arrangements like Community Mortgage Programs.
Members have rights to vote in meetings, inspect books and records, avail services and facilities, and any additional rights provided by the association by-laws.
Members must pay fees, attend meetings, support association projects and comply with by-laws, rules, and regulations. Non-compliance may lead to sanctions.
The Board should have at least five and no more than fifteen elected members.
No, they shall not constitute a majority of the Board.
They must prepare annual programs and budgets, adopt accounting systems, ensure internal controls, understand legal requirements, conduct member education, and enforce by-laws.
Such fees must be approved by the general membership and should only be for roads and facilities maintained by the Association to cover operating and maintenance costs.
At least annually on the date fixed in the by-laws.
A majority of the members unless otherwise provided in the by-laws.
Matters such as amendments to articles of incorporation, sale or disposition of properties, bonded indebtedness, merger or consolidation, use of funds outside approved projects, term extensions, or dissolution.
They must be of legal age, members in good standing, actual residents of the subdivision for at least six months, and not convicted of offenses involving moral turpitude. The Secretary must additionally be a Filipino citizen.
Disqualifications include being a long-term lessee or developer holding executive posts, failure to turn over association records previously, or serving three consecutive terms immediately before the election to encourage leadership rotation.
Administrative sanctions or penalties as provided under existing HLURB rules and regulations may be imposed.
Associations must maintain prescribed books and records, regularly post income and expenditure reports, keep funds in proper bank accounts, and disclose director remunerations annually.
Directors may only enter contracts if they did not vote or quorum depend on their presence, the contract is fair, approved by the board, or ratified by two-thirds of members if exceptions apply, with full disclosure of interest.
Members may vote by proxy, which must be written, signed, filed with the secretary, valid only for the meeting date, and limited to five years. Voting by mail may also be authorized as prescribed in the by-laws.
The Board should establish a Grievance Committee, an Audit Committee (excluding directors and internal auditors), and an independent Election Committee.