Article 164Labor and Agrarian Laws and Social Legislation, p. 164

LABOR LAWS AND SOCIAL LEGISLATION SPECIAL LAWS AND IMPLEMENTING RULES AND REGULATIONS

(h) Which of its officers may prepare, execute, certify

and record amendments to the governing documents on

behalf of the association;

(i) The grounds and procedure for removal of director

or trustee, and the manner of filling up vacancies in the

board, consistent with Section 13 of this Act;

(j) The grounds and procedure for dissolution of the

board, and the manner of reconstituting the board,

consistent with Sections 13 and 14 of this Act;

(k) The actions for limiting, broadening or denying

the right to vote, and the extent thereof;

(I)

The

designation

of

the

presiding

officer

at

meetings of directors or trustees and members;

(m) The time for holding the regular election of

directors or trustees and the mode or manner of giving

notice thereof;

(n) The creation of election, grievance and audit

committees,

and

such

other committees which the

association may deem necessary; as well as a conciliation

or mediation mechanism for the amicable settlement of

disputes among members, directors or trustees, officers

and committee members of the association;

(o) The dues, fees, and special assessments to be

imposed on a regular basis, and the manner in which the

same may be imposed and/or increased;

(p) The method of adopting, amending, repealing

and abrogating the bylaws;

(q) The list of acts constituting a violation by its

officers and the corresponding penalties therefor;

(r) The penalties for violation of the bylaws; and

(s) Such other matters necessary for the proper or

convenient transaction of its corporate business and

affairs.

Section 16. Proxies. - Association members may vote

in person or by proxy in all meetings of members. Proxies

shall be in writing, signed by the member and filed

before

the

scheduled

meeting

with

the association

secretary. Unless otherwise provided in the proxy, it shall

be valid only for the meeting for which it is intended, No

proxy shall be valid and effective for a period longer than

three (3) years at anyone time unless earlier revoked by

the member.

Section

17.

Financial

and Other Records. - The

homeowners’

association

is enjoined to observe the

following, with regard to its funds, financial and other

records:

(a) The association or its managing agent shall keep

financial and other records sufficiently detailed to enable

the association to fully declare to each member the true

statement of its financial status. All financial and other

records of the association including, but not limited to,

checks, bank records and invoices, in whatever form

these are kept, are the property of the association. Each

association’s managing agent shall turn over all original

books and records to the association immediately upon

termination of the management relationship with the

association, or upon such other demand as is made by

the board. An association’s managing agent is entitled to

keep association records. All records which the managing

agent has turned over to the association shall be made

reasonably available for the examination and copying by

the managing agent;

(b) All records involving the affairs of the association

shall be available for examination by all owners, holders of

mortgages on the lots, and their respective authorized

agents upon reasonable advance notice, during normal

working hours at the office of the association: Provided,

That holders of mortgages on lots may have access to the

information about the property held in mortgage with

the written consent of the registered owner;

(c) A financial statement of the association shall be

prepared annually by an auditor, the treasurer and/or an

independent certified public accountant within ninety

(90) days from the end of the accounting period to be

posted in the association office, bulletin boards, or other

conspicuous places within the subdivision/village, and to

be submitted to the HLURB; and

(d) The funds of the association shall be kept in

accounts in the name of the association and shall not be

joined with the funds of any other association, or any

person responsible for the custody of such funds.

Section 18. Relationship with LGUs. - Homeowners'

associations shall complement, support and strengthen

LGUs in providing vital services to their members and

help implement local government policies, programs,

ordinances, and rules.

Associations are encouraged to actively cooperate

with LGUs in furtherance of their common goals and

activities

for

the

benefit

of

the

residents

of

the

subdivisions/villages and their environs.

Where the LGUs lack resources to provide for basic

services, the associations shall endeavor to tap the means

to provide for the same. In recognition of the associations’

efforts to assist the LGUs III providing such basic services,

association dues and income derived from rentals of their

facilities shall be tax - exempt: Provided, That such

income and dues shall be used for the cleanliness, safety,

security

and

other

basic

services

needed

by

the

members, including the maintenance of the facilities of

their respective subdivisions or villages.

LGUs

shall,

upon

due

notice,

hold

public

consultations

with

the

members

of

the

affected

associations, especially their officers and directors, where

proposed rules, zoning and other ordinances, projects

and/or

programs

affecting

their

jurisdiction

and

surrounding vicinity are to be implemented prior to the

effectivity

or

implementation

of

such

rules,

zoning,

ordinances, projects or programs: Provided, That in cases

of zonal reclassification, the approval of a simple majority

of homeowners shall be required.

Such

public

consultations

shall

conform

to

the

manner

as

specified

in

Rule

XI,

Article

54

of

the

implementing rules and regulations of Republic Act No.

7160, otherwise known as the Local Government Code of

1991.

Section 19. Relationship with National Government

Agencies. - The associations shall complement, support

and strengthen the efforts of the national government

agencies in providing vital services to their members and

help implement the national government policies and

programs.

Associations are encouraged to actively cooperate

with national government agencies in the furtherance of

their common goals and activities for the benefit of the

residents of the subdivisions and its environs. National

government

agencies

shall

consult

the

associations

where proposed rules, projects and/or programs may

affect their welfare.

CHAPTER IV DUTIES AND RESPONSIBILITIES OF

THE HLURB

Section 20. Duties and Responsibilities of the HLURB.

-

In

addition

to

the

powers,

authorities

and

responsibilities vested in it by Republic Act No. 8763,

Presidential Decree No. 902 - A, Batas Pambansa Big. 68

and Executive Order No. 535, Series of 1981, as amended,

the HLURB shall:

(a) Regularly conduct free orientation for officers of

homeowners’

associations

or

deputize

another

competent agency to conduct the orientation;

(b) Formulate and publish a Code of Ethics and

Ethical

Standards

for

board

members

detailing

prohibited conflicts of interest;

(c)

Register

all

associations,

federations,

confederations

or

umbrella

organizations

of

the

associations;

© Compiled By RGL

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