MAGNA CARTA FOR HOMEOWNERS AND HOMEOWNERS ASSOCIATIONS

Case Overview and Summary

Magna Carta for Homeowners and Homeowners' Associations

Declaration of Policy (Section 2):
- Uphold rights of people to form associations and recognize rights/roles of homeowners and homeowners' associations
- State shall provide resources and assistance to help associations fulfill roles in serving community needs, complementing LGUs, and implementing policies/programs

Definitions (Section 3):
- Defines terms like "accounting period", "association", "association member", "basic community services and facilities", "board", "common areas", "common expense", "economic housing", "governing document", "homeowner", "residential real property", "simple majority", "socialized housing", "subdivision/village"

Registration with HLURB (Section 4):
- Associations must register with HLURB to acquire juridical personality
- HLURB to provide procedure and adjudication mechanism for disputes involving multiple associations
- Existing associations previously registered with other agencies respected

Rights and Duties of Homeowners (Sections 5-9):
- Right to enjoy basic community services/facilities by paying fees (Section 5)
- Qualification as member, including lessees with owner's consent (Section 6)
- Rights of members like using facilities, inspecting records, voting, participating in meetings/elections (Section 7)
- Duties of members like paying fees/dues, attending meetings, supporting projects (Section 8)
- Guidelines for delinquent members and due process for sanctions (Section 9)

Rights and Powers of Associations (Section 10):
- Adopt/amend governing documents with majority approval (a)
- Institute legal proceedings affecting association welfare (b)
- Regulate use/maintenance of common areas (c)
- Regulate access to subdivision roads with conditions (d)
- Hire employees/contractors for association operations (e)
- Acquire/convey property with majority approval (f)
- Ensure water services and manage waterworks system (g)
- Grant easements/leases for common areas with conditions (h)
- Impose reasonable fees for using facilities/services (i)
- Ensure compliance with building codes/zoning laws (j)
- Allow establishments with majority approval and conditions (k)
- Suspend privileges/services, impose sanctions for violations (l)
- Petition for separate barangay if requirements met (m)
- Exercise other necessary powers per bylaws and HLURB (n)

Board of Directors/Trustees (Sections 11-14):
- Bylaws to provide for board qualifications and number (Section 11)
- Duties like maintaining accounts, collecting fees, undergoing HLURB orientation (Section 12)
- Removal through majority petition and HLURB validation (Section 13)
- Dissolution through 2/3 petition, HLURB validation, interim board (Section 14)

Association Bylaws (Sections 15-16):
- Adopted by majority, to cover rights/duties, membership, meetings, board/officers, proxies, violations, penalties, other matters (Section 15)
- Provisions for proxies in meetings (Section 16)

Financial and Other Records (Section 17):
- Keeping detailed financial records open for inspection
- Preparing annual financial statement within 90 days
- Keeping association funds separate

Relationship with LGUs and National Agencies (Sections 18-19):
- Associations to complement LGUs in providing services (Section 18)
- LGUs to consult associations on rules/projects affecting them (Section 18)
- Associations to cooperate with national agencies, be consulted (Section 19)

Duties of HLURB (Sections 20-21):
- Conduct orientation, formulate code of ethics, register associations (a-c)
- Hear inter-association disputes, validate petitions (d-e)
- Formulate rules, standard documents, fee guidelines (f-h)
- Enlist additional personnel as needed (Section 21)

Prohibited Acts and Penalties (Sections 22-23):
- Lists prohibited acts like compelling membership, depriving services, denying rights (Section 22)
- Penalties of fines from ₱5,000 to ₱50,000 and disqualification (Section 23)

Other Provisions (Sections 24-29):
- Review bylaws within 6 months, draft rules, plebiscite (Section 24)
- Appropriations for implementation (Section 25)
- Separability clause (Section 26)
- Repealing inconsistent issuances (Section 27)
- HLURB to issue implementing rules within 6 months (Section 28)
- Effectivity 15 days after publication (Section 29)