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Also, the matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.
AT A GLANCE:
HLURB Administrative Order 03-2017 sets forth the Executive Committee Resolution No. 001, series of 2017 or the “Guidelines In The Kinds Of Dues, Fees, And Contributions That May Be Collected By Homeowners Associations”.
The said Administrative Order provides for the powers and functions of the Homeowners Association, its Board of Directors, various remedies for failure to pay the dues, fees and contributions legally imposed by the association, among others.
OBJECTIVES
Section 2.2.provides for the objectives of the said Guidelines, which are:
(a) To provide standards in the formulation of dues, fees, and contributions which may be charged by associations with the end in view of eliminating unauthorized, excessive and arbitrary fees and assessments;
(b) To provide associations with the funds necessary to defray their administrative and other operating expenses in the performance of their duties and functions for the promotion of the welfare of all persons within their territorial jurisdiction and not for profit;
(c) To promote membership in the association by providing incentives in the assessment of dues, fees, and contributions;
(d) To promote fiscal autonomy and responsibility in the generation and management of the funds of the association.
DEFINITION OF HOMEOWNERS ASSOCIATION
“Homeowners Association” is a non-stock and non-profit corporation registered with the Housing and Land Use Regulatory Board, or one previously registered with the Home Insurance Guarantee Corporation (now Home Guaranty Corporation) or the Securities and Exchange Commission organized to manage the roads, open spaces and community facilities, and provide services to its members.
POWERS AND FUNCTIONS OF HOMEOWNERS ASSOCIATIONS AND ITS BOARD OF DIRECTORS
Section 6. Powers and Duties. – The powers and duties of associations and the Board of Directors are as follows:
6.1. Homeowners Associations.
(a) Institute, defend, or intervene in litigation and/or administrative proceedings affecting the welfare of the association and the subdivision or condominium as a whole;
(b) Regulate the use, maintenance, repair, replacement and modification of open spaces and cause additional improvements thereon;
(c) Regulate access to, or passage through the subdivision or condominium roads for purposes of preserving privacy, tranquility, internal security and safety and traffic order;
(d) Ensure the availability of quality water services at a reasonable price, and, at its option, administer and manage the waterworks system of the subdivision or condominium;
(e) Grant easements, leases, concessions and authority to use open spaces and petition for or consent to the vacation of streets and alleys;
(f) Impose or collect reasonable fees for the use of open spaces, facilities, and services of the association; and,
(g) Regulate the establishment of certain institutions such as, but not limited to, schools, hospitals, markets, grocery stores and other similar establishments affecting the character of the subdivision or condominium in traffic generation, and/or opening the area to outsiders which may result in the loss of privacy, security safety, and tranquility to its residents.
6.2. Board of Directors.
(a) In general, to act in all instances on behalf of the association except on matters which are exclusively reserved to the members or homeowners. In the performance of their duties, the officers and members of the Board shall exercise the degree of care and loyalty required by the position;
(b) Regularly maintain an accounting principles, and keep books of accounts, which shall be open for inspection to any homeowner and duly authorized representatives of government agencies upon request, during reasonable hours, on business days;
(c) Collect the fees, dues and assessments that may be provided for in the By-Laws, and such rules as may be approved by the Board and upon publication in at least three (3) conspicuous places within the subdivision/village, ratified by a majority of the members;
(d) Collect reasonable charges for assessments, and, after due notice and hearing by the Board in accordance with the procedures as provided in the By-Laws and/or the rules and regulations adopted by the Board, charge reasonable fines for late payments and for violation of the By-Laws, rules, and regulations of the association, in accordance with a previously established schedule adopted by the Board and furnished to the homeowners;
(e) Cause compliance with regard to height regulations, easements, use of homes, buildings, edifices, or structures that may be built within the subdivision or condominium, in accordance with the National Building Code, zoning laws, Housing and Land Use Regulatory Board, rules and regulations, existing local ordinances, and existing deeds of restriction;
(f) Propose measures to raise funds and the utilization of such funds and submit the same for the consideration of the members of the association; and,
(g) Exercise such other powers as may be necessary and proper in accordance with the law and these Guidelines, and for the accomplishment of the purposes for which the association was organized.
REMEDIES
15.1. Homeowners Association. The failure of any member or beneficial user to pay the dues, fees and contributions legally imposed by the association may be remedied, either singularly or cumulatively, through the following:
(a) Administrative Liability. The association may also suspend or revoke the membership of the erring member.
(b) Civil Liability. The association may file with the Housing and Land Use Regulatory Board a suit for collection of a sum of money against the erring member or beneficial user.
(c) Criminal Liability. If the acts complained of constitute a crime under the criminal or special laws, a criminal complaint may be filed with the appropriate government agency.
15.2. Member or Beneficial User. Any member or beneficial user aggrieved by any dues, fees, or contributions charged by the association may seek redress as follows:
(a) A complaint for the nullification of the dues, fees, and contributions assessed, with prayer for refund if already paid, shall be filed with the Grievance Committee, which shall resolve the dispute within a period of thirty (30) days from its inception;
(b) If there is no Grievance Committee or the latter ignores or fails to resolve the complaint within the prescribed period, the complainant may file a complaint, directly to the Housing and Land Use Regulatory Board and attaching thereto an affidavit attesting to such fact, for the nullification of the dues, fees, and contributions, with prayer for refund and such other provisional or accessory damages;
(c) The decision of the Grievance Committee may be appealed to the Housing and Land Use Regulatory Board within five (5) days from receipt of the resolution. Unless a cease and desist order or a temporary restraining order or writ of preliminary injunction is issued, the obligor shall pay the dues, fees, and contributions charged and, in the event that the complaint is sustained, shall be entitled to full restitution of the amounts paid;
(d) If the acts committed constitute a crime, the aggrieved party may file a criminal complaint with the appropriate government agency.
Aside from the aforesaid provisions, the Guidelines also contain provisions regarding the kinds of dues, fees and contributions, proscribed acts, sanctions, punishable acts and omissions, imposable penalties, among others.
Therefore, if you are planning on buying your own home in a secure village or subdivision, it is important for you to read up on these Guidelines to protect your rights and duly comply with your responsibilities as a homeowner.
Related articles:
- RIGHTS OF A CONDOMINIUM UNIT OWNER
- Requisites for Deduction of Family Home From The Gross Estate
- WHAT IS RECTO LAW?
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Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries regarding legal services, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/ 0917-5772207/ 09778050020.
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