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1 RepublicorthePhilippinesO fficeofthe PresidentHousingand UrbanDevelopmentCoordinatingCouncilHOUSI NGANI>LANDUSEREGULATOI{ BOARI>;.4~ ,.- BoardofCommissionersRESOLUTIONNO. 770 Seriesof 2004 FRAMEWORKFORGOVERNANCEOFHOMEOWNERSASSOCI ATIONSWHEREAS, pursuant toExecutive Order No. 648, seriesof1981, asamended, in relation to Republic Act No. 8763, Executive Order No. 535seriesof1979, and Presidential Decree No. 902-A,the HousingandLandUseRegulatoryBoard(HLURO) is charged with the regulationandsupervisionofthe activities and operationsofhomeownersassociations;WHERE AS, there is a need tohighlightthe basic roles, powers andresponsibilitiesofa homeowners association and its officers and membersunderexisting lawsandregulations;WHEREAS, there is also a need to promote andoperationalizethebest practices and normsofgoodgovernancein the managementofahomeowners assoc iation:WHEREAS,the activeandenlightened managementofthe affairsofahomeownersassociation willenhance the deliveryofbasic services to andpromotethegeneralwelfareofits members;NOW THEREFORE the BLURB,after a nationwide consultationwith homeownersassociationsandconcernedstakeh olders hereby adopts thefollowing Framework for the )R~.}

2 L1 MINARYPROVISIONSS ection the context provides otherwise,the followingterms shallbeinterpreted to meanasfnllowr.'. a.,.Association"refersto ahomeownersassocranonthatisregisteredwit h the HLURB, or one previouslyregisteredwith theIl omeInsurance Guaranty Corporation(now Home GuarantyCorporation) or the SecuritiesandExchange Commission (SEC)inaccordance with lawandshall owncrlbuyerin asubdivision projectwithinthe 957andrelated laws; , a lessee,andanoccupantinaprivateorgovernme nthousingor relocatiouprojectand other urbanestates; in the processofbeing accredited asbeneficiary orawardeeofownershiprightsunder theCommunity MortgageProgram, Land TenureAssistanceandother similarprograms;b." Board"refers to the boardofdirectorsor trustees of anAssociationthat exercises,as a collegial body, all the powers,dutiesandresponsibilities relatingto the administration,management and operationofan Association; andc.

3 " Director" shall refer to a memberofa . Associationshall register with the HLURB inorder toacquire juridical officers or members of an unregisteredassociation,or anunincorporatedgroupofhomeowners representingthemselvesasanassociatiou,or exercisingthe essential characteristics,rights and privilegesof an Association,shall be personally liable for the obligationsandliabilitiesthatmay be incurredby Association .endeavor to servetheinterestofits members through equityofaccessin the decision-makingprocess,transparencyandac countab ility,andthe promotionofsecurityintheirlivingenvironm ent;establish its vision, define and periodicallyassessits mission,policies, andobj ectives and the means to attain the same; andwithout abandoning its non-partisancharacterr,:. withlocal government units and nationalgovernme nt agencies, in furtheranceofitscommon goalsand activitieslorthe benefitof the residents insideandoutsideofthe subdivision; , supportandstrengthen local government unitsand nationalgovernmentagencies in providingvitalservicesto its membersand in helping implementlocal governmentpolicies, programs, ordinances, ASSOCIATIONI\-mMBERSSec.

4 Otherwiseprovided in theby-laws,a memberofan Association should either , lot owner and lotbuyer,or a mortgagee whobecomes anowner by virtueofforeelosure of mortgageandconsolidation oftitlein his name; lesseeunder acontractwith a termofat leastthree (3) years,inlieu of the ownerofthe leasedproperty, if allowedin writing tobe amemberby saidowner. However,where the Associationdues are imposedother than on a perlotbasis and both theownerand lesseepay said dues, both may qualify as members; occupant by virtueofa subsistingusufruct in writing grantedby the owner; awardeeunder theCommunity MortgageProgram/Self-HelpLandAcquisition Program/GroupLandAcquisition Development Projects who is ineluded in the registryofbeneficiariesofthegovernmentfi nancinginstitutionconcernedorits equivalentorganization intheprivatesector; developerofthe subdivision projectwho holds title to unsoldlots or an Association shouldbe voluntary is requiredunderthe deedrestrictionsannotatedonthetitle of the property; stipulated underthe contractfor the porchaseofa lot in thesubdivision project; arequirementloranaward underaCommunity MortgageProgramproject ors imilartenurialarrnngemen~".

5 Sec. membersofan Associationshallhavethe vole in person or by proxy; inspectAssociationbooksand recordsduring office hours andtobeprovidedwithannualreports,includi ngfinancialstatements; all the services andfacilitiesofthe Association; enj oy allother rights as maybeprovided in the shall have the followingduties:, pay membershipfees and dues and special assessments;to attend meetings of the Association;to supportand participatein projects and activitiesoftheAssociation; andto comply with all otherduties asrequired by the Associationby-laws,nilesand any of the foregoingduties may be a ground fortheimpositionofsanctionsagainst amemberin accordancewith the ,e boardshould establish guidelinesandproceduresindeterminingwhoi sa "membernotingoodstanding", and to prescribe the administrative sanctions against to due process should be observedincaseswhere administrative sanctionsare imposed on a delinquent.

6 Of the boardshallbecomposedofatleastfive(5) but notmore than fifteen(15) elected no case shall lessees, occupantsordevelopers as mentionedmSection4 hereofconstitutea majority of The board should examine or re-examineOlenumberofits directorswith a view to delennining the impactthereofuponits effectiveness and to decide on what it considers as an appropriate size forthe boardthat will facilitate effective The Boardshall have the followingdutiesand preparean annual programofactivities and the correspondingbudget,and identifysourcesoffunding for thc same; a uniform accountingsystemin the recordingandpreparationofitsfinancial records,books and statementsconforming togenerally accepted principlesofaccountingandauditingand the standard form prescribedby HLURB; adopt asystemofinternal checks and balances to safeguardtheintegrityofthe operationsofthe Association;d.

7 Tohave a workingknowledgeofthestatutory and regulatoryrequirementsaffecting the Association; instituteandsustain continuingeducation on collectiveorganizationand mobilizationofmembershipfor the attainmentof commongoals; exercise such other powers as may be necessary and proper forthe enforcementofthe by-lawsofthe of toll. f board may requirethe members and non-membersofthe Associationto pay a loll,fee or to posta bondlorthe useofroads and other facilitiesofthe Association,the amountof whichshall be approved by thegeneral membership as being necessary todefraythecostofthe operation and maintenance thereof: Provided, thatOlesaidroads and other subdivision facilitiesarebeing maintained The board should not engage inanybusiness other than thosethatare incidental to the operationsoftheAssociation and should exercise its authority within the boundsofits articlesofincorporation, by-laws and other existinglaws, rules and boardshould have aformalscheduleofmatters specifically reservedto it for should be a strong element inthe board thatisable toexerciseobj ective judgmenton Associationaff"jr.

8 , independentlyofits individualor small groupofindividualsshould beallowedto dominate the Board' . should be a formalassessmentby the Board of i tseffectivenessasa whole and the contributionof . meet regularly andwheneverparticularcircumstances warrantas determined by its ,eboardshould adopt rules to governits . hoard shall hold its regularmeetings in accordance withthescheduleset forth in the . attend all boardmeetingsin pers may not attendorvote by proxy atboardmeetings, board meetingsmay becalledby itschairpersonor by majorityofthe directorsofthe . in articlesofincorporation or the by-lawsprovide otherwise, a majorityofthe numberofdirectorsas fixed in the articlesofincorporationshallconstitutea quorumforthetransactionofAssociation decisionofat least amajorityofthedirectorspresent ata meeting at whichthereisa quorumshallbevalidasa corporateact, except for the electionofofficers, whichshallrequire tile vote of a majorityof all the.

9 24 .Numberof meetingsheld in ayear,as well as theattendanceofeveryboardmember at thosemeetingsand meetingsofspecial committees establishedby the hoard,shouldbedisclosed in theAssociation'sannual 'MEETINGSSec . "[be regularmeetingsofmembers shallbe hcld at l east annually on the date fixed in the noticeofregularmeetings, including the agenda,shall be sent to all members atle(1S,',..' two (2)weeksprior to the meeting unlessa dilTerentperiodisrequiredbythe ,e board may callspecial membershipmeetings at any time wheneverit is deemednecessary,or as providedin theby-laws. Awritten notice,including the agendashall be sent to all membersa tleast one(l)week before thescheduled meeting,unlessotherwiseprovidedin the A quorumin general membershipmeetings shallconsistof the majorityofthe members,unless otherwise provided forin the electionof directorsand officers,the by-lawsmay provide thatonly membersofgoodstandingshall be considered in Members may votein personor by proxyin all meetings of the of Proxiesshall bein be filed with the Associationsecretary beforethescheduled meetingand duly validatedin accordancewith the of Unless otherwiseprovidedin the proxyor in the by-laws, the proxyshall be valid only for the dateofthe meeting forwhich it is intended.)]

10 No proxy shall be valid and effective for a periodofmorethan five (5) member participation in Association affairs shall be encouragedandvoting by proxyshould not be allowed to enable an individual or groupof individualsto subvert the true willofthe members or to dominate theactivitiesofthe by Voting by mail or other similar means bymembers of the Association may be authorizedunder such conditious asmaybe prescribed in the . rightsin member, regardlessofhis standing,shall beentitled tovote on thefollowing matters: articles ofincorporati~..' . theBoardofthepowerto amend or repeal theby-lawsoradoptnewby-laws;sale,lease, exchange, mortgage, pledgeorotherdispositionofallor substantiallyalloftheAssociationproperti es ;ineuning,creatingorincreasingbondedinde btedness;increaseordecreaseofmembers' equity;mergerorconsolidationoftheAssocia tionwithanotherAssociation,membershipino rdisaffiliationfromafederation, andsegregationfrom theAssociation;useofAssociationfunds inprojectsnototherwiseincludedinU,Cregul arorapprovedprogramofactivitiesandexpend itures;ratificationofadverseinterestor businesstransactionsbydirectorsasprovide dforunderthisFramework;extensionorshorte ningofthetcnnofexistenceoftheAssociati on.