Law Summary
Scope of Application
- Applies to land use projects with locational clearances, subdivisions, condominiums, and other real estate developments with HLURB-issued permits.
- Covers real estate transactions, including offers, proposals, and complaints from buyers or homeowners associations.
- Includes monitoring and investigations conducted by HLURB Regional Offices.
Definitions
- Key terms such as "Association," "Homeowner," "Regional Officer," "Inspection," "Investigation," "Penalties," "Respondent," and others are defined.
- Clarifies types of investigations (field and non-field) and types of penalties (divisible, qualified, indivisible).
- Introduces aggravating, mitigating, and alternative circumstances affecting penalties.
Jurisdiction and Powers of Regional Officer
- Regional Officer has exclusive jurisdiction to inspect, investigate, verify reports, examine records, issue notices and impose sanctions.
- Powers include issuing cease and desist orders, recommending punishments for contempt, ordering search and seizure of documents, imposing fines, and other incidental powers.
Administrative Inspection and Investigation Procedures
- Proceedings may begin motu proprio or on complaint.
- Non-field investigations involve document review and reports; field investigations require written authority and involve site visits, interviews, and document verification.
- Inspection/investigation reports must be reviewed and acted upon by the Head of the appropriate Unit and the Regional Officer.
- Reconsideration and appeals processes are provided.
Determination of Violations and Issuance of Orders
- If violations are found, a Notice of Reported Alleged Violation (NORAV) is issued.
- Respondents given time to comment; clarificatory conferences or joint ocular inspections may be conducted.
- The Regional Officer issues an order that may impose sanctions or penalties.
- Orders must be served promptly; motions for reconsideration are not entertained but appeals may be filed.
Appeals and Implementation of Final Orders
- Appeals to Board of Commissioners are allowed within 15 days.
- Cease and desist orders and planning and zoning resolutions may be appealed by petition for review.
- Finality rules for orders and judgments at various levels (Regional Officer, Board, Office of the President, Court of Appeals, Supreme Court).
- Execution of final orders is handled by the Regional Arbiter.
Special Administrative Inspections: Monitoring New Developments
- Regional Office must inspect new real estate projects within six months after issuance of permits.
- Can also inspect sooner if violations are alleged.
- Procedures include pre-inspection authorization, notice to developers, site inspection, report preparation, review, and resolution by Regional Officer.
Adjudicatory Mechanism for Multiple Homeowners Associations
- Applies when two or more associations claim authority over the same area.
- Mediation first; if unresolved, legal existence is confirmed through investigation.
- Conference and member survey conducted to ascertain majority.
- Factors for accreditation include registration date, membership numbers, financial viability, governance history.
- Only one association authorized to represent homeowners; others are barred from exercising HOA functions.
Inspection of Books and Records
- Homeowners can file petitions for inspection or copies of association records.
- Regional Office conducts conference and mediates disputes.
- Decision issued requiring inspection with conditions and cost deposits.
Removal of Directors
- Proceedings initiated by petition signed by at least five members.
- Petition must allege substantial violations and loss of confidence.
- Evaluation of formal and substantial sufficiency; conference held with parties present.
- Verification of signatures conducted.
- Regional Officer issues order either dismissing or approving removal and calling for special elections.
Dissolution of the Board of Directors
- Automatic dissolution if Board loses quorum.
- Petition dissolution requires two-thirds membership support.
- Procedure same as director removal.
- Regional Officer orders dissolution and calls for special elections.
- Interim Board appointed to maintain basic operations but members cannot run in elections.
Supervised Elections
- Conducted when mandated by court or HLURB orders, or upon petition when elections fail.
- Petition filing, reply, preliminary order, payment of election expenses.
- A Special Elections Committee is formed, comprising HLURB officers and party representatives.
- Committee formulates guidelines and supervises pre-election, election, and post-election activities.
- Hold-over of incumbent officers allowed if immediate elections cannot be held.
- Election contests appealed to Board of Commissioners.
- Outgoing officers must turnover records promptly; non-compliance may result in fines.
Management Committee
- Regional Officer may create a Management Committee to operate the association during transitional periods.
- Committee composed of members nominated by parties and an arbiter appointee; members barred from running in next election.
- Powers to maintain operations, receive expense reimbursement, and immunity from suit.
- Monthly reporting required.
- Committee discharged once new board elected or necessity ends.
Imposition and Computation of Fines and Penalties
- Penalties are classified as divisible, qualified, or indivisible.
- Aggravating factors include fraud, repeated offenses, misconduct, falsified documents, and disrespect.
- Mitigating factors include absence of fraud, first offense, good faith efforts, and lack of experience.
- Alternative factors include financial capacity and project magnitude.
- Penalties computed per violation; multiple units may count as separate violations.
- Reinterpretations of laws apply prospectively if detrimental and retroactively if favorable.
Final Provisions
- Separability clause ensures unaffected provisions remain if any part is invalidated.
- Repealing clause rescinds inconsistent previous HLURB rules.
- Rules take effect fifteen days after publication in the Official Gazette.