Observations under REPUBLIC ACT NO.

9904, also known as

“MAGNA CARTA FOR HOMEOWNERS AND HOMEOWNERS’
ASSOCIATION AND FOR OTHER PURPOSES” enacted by the
Congress in relation to RESOLUTION NO. 770 of the HLURB
known as the “FRAMEWORK FOR GOVERNANCE OF
HOMEOWNERS ASSOCIATIONS”
by: Ice C.

Approval Date of R.A. No. 9904: January 7, 2010 (Effectivity Date: July
10, 2010)
Approval Date of Resolution No. 770: September 20, 1994

1. What are the rights of a Homeowner?

Paragraph (d) of Section 2 of the said law provides that “no
homeowner may be excluded from enjoying basic community services
and facilities which include but are not limited to the following:
a. Security
b. Street and vicinity lights
c. Maintenance, repairs and cleaning of streets
d. Garbage collection and disposal
e. And other similar services and facilities

NOTE: However, Section 5 of the same Act provides that in order

to avail the right to enjoy basic community services and facilities,
the homeowner should pay the necessary fees and other
pertinent charges.

2. Basic questions that you need to ask your Homeowners’

Association:
a. Is your homeowners’ association registered at the
Housing and Land Use Regulatory Board (HLURB) or
with the Home Insurance Guarantee Corporation (HIGC)
or the Securities and Exchange Commission (SEC)?
Why? Under Sec. 4 of R.A. 9904, every association of
homeowners shall be required to register with the HLURB. If it
is not yet registered with the HLURB but it is registered with
HIGC or the SEC, such association shall not be charged a
penalty when they register with the HLURB after this Act takes
effect (under the last paragraph of Sec. 4 of this Act). NOTE:
This means that notwithstanding the registration with HIGC or
SEC, the association is still required to register with the
HLURB.
 What is the effect if the association of homeowners
fails to register with the HLURB?
NOTE: If the association fails to register with the HLURB (after
the effectivity of this Act without valid reasons), it shall be
considered as a de facto association and the officers and
members of the unregistered association representing
themselves as an association or exercising the essential
characteristics, rights and privileges of an Association, shall be
personally liable for the obligations and liabilities that may be
incurred by the de facto association.

b. Does your homeowners’ association have Articles of

Incorporation and By-Laws?
Why? A homeowners’ association is a non-stock, non-profit
corporation. Under the Corporation Code (which grants an
entity the primary franchise to operate as a stock or non-stock
corporation), every corporation is required to submit its
Articles of Incorporation and By-Laws.
c. In adopting the Articles of Incorporation or By-Laws,
was the required vote of simple majority obtained from
the members of the homeowners’ association?
Paragraph (a) of Section 10 of this Act requires that before
Articles of Incorporation or By-Laws are adopted or amended,
the approval of the members through a vote of simple majority
(50% + 1 of the total number of members of the association)
must be obtained. (Section 2 of Resolution No. 770 known as
the “Framework for the Governance of Homeowners
Associations).

3. Who are considered as “homeowners”? (Paragraph J, Section

3 of RA 9904 and Sec. 4 of Resolution No. 770)
a. Owner or purchaser of a lot in a subdivision or village or a
mortgagee who becomes an owner by virtue of foreclosure of
mortgage and consolidation of title in his name;
b. Awardee, usufructuary, or legal occupant of a unit, house
and/or lot in a government socialized or economic housing or
relocation project and other urban estates; (NOTE: They are
considered as homeowners without need of a written consent
or authorization—provided under last paragraph of Section 6)
c. An informal settler in the process of being accredited as
beneficiary or awardee of ownership rights under the
 Community Mortgage Program (CMP), Land Tenure Assistance
Program (LTAP);
d. Lessee under a contract of lease with a term of at least 3
years, with a written consent or authorization from the owner
of the lot or housing unit [provided under Section 6 of this Act
in relation to Sec. 4, Resolution No. 770].
e. An occupant by virtue of a subsisting usufruct in writing
granted by the owner
f. The developer of the subdivision project who holds title to
unsold lots or units

4. Which acts of the association of homeowners would

require the vote of all the members of the association and
not merely the vote of the Board of Directors or Trustees?

*There is a need to reconcile the provisions of R.A. 9904 and Resolution

No. 770. The law enacted by Congress shall prevail over Resolutions
made by administrative bodies.

Acts of the Association of Number of Votes

No.
Homeowners Required
Amend and adopt the Articles of
Simple Majority
Incorporation, by-laws, rules and
1 (50% + 1 of all the
regulations pursuant to existing laws and
members)
regulations [Basis: R.A. No. 9904]
Acquire, hold, encumber and convey in its
own name any right, title to or interest in
real or personal property where the Simple Majority
2 amount of the property/ies exceeds 10% (50% + 1 of all the
of the association’s cash holdings for its members)
use in the course of its normal operations
[Basis: R.A. No. 9904]
3 Allow the following acts: Simple Majority
1. establishment of certain institutions (50% + 1 of all the
such as, but not limited to schools, members)
hospitals, markets, grocery stores
and other similar establishments that
will necessarily affect the character
of the subdivision/village in terms of
traffic generation; (except sari-sari
stores, home industries and similar
small-scale business enterprise
 within the village classified as
socialized housing)
2. opening the area to outsiders which
may result in the loss of privacy,
security, safety, and tranquility to its
residents
[Basis: R.A. No. 9904]
Sale, lease, exchange, mortgage, pledge
Vote of at least 2/3
or other disposition of all or substantially
4 of the general
all of the association properties [Basis:
membership
Resolution No. 770]
Incurring, creating, or increasing bonded Vote of at least 2/3
5 indebtedness [Basis: Resolution No. 770] of the general
membership
Merger or consolidation of the association
with another association, membership in Vote of at least 2/3
6 or disaffiliation from a federation, and of the general
segregation from the association [Basis: membership
Resolution No. 770]
Use of association funds in projects not
Vote of at least 2/3
otherwise included in the regular or
7 of the general
approved program of activities and
membership
expenditures [Basis: Resolution No. 770]
Ratification of adverse interest or business
Vote of at least 2/3
transactions by directors as provided for
8 of the general
under this Framework [Basis: Resolution
membership
No. 770]
Extension or shortening of the term of Vote of at least 2/3
9 existence of the association [Basis: of the general
Resolution No. 770] membership
Dissolution of the association [Basis: Vote of at least 2/3
10 Resolution No. 770] of the general
membership
Election of the Board of Directors or
Trustees
*The by-laws may provide that only
Provided for under
11 members of good standing shall be
the by-laws
considered in determining a quorum for
the purpose of electing directors and
officers [Basis: Resolution No. 770]
12 Removal of a Director or Trustee Signed petition of a
*But the signed petition is subject to the simple majority of
 verification and validation by the HLURB the association
[Basis: R.A. No. 9904] members in good
standing
Dissolution of the Board Signed petition of
* But the signed petition is subject to the 2/3 of the
13
verification and validation by the HLURB association
[Basis: R.A. No. 9904] members

Take note that in numbers 4-10 enumerated above, it is expressly

provided under Section 32 of Resolution No. 770 that a member,
regardless of his standing, shall be entitled to vote on such matters.

5. The Board is separate from the officers. Section 16 of

Resolution No. 770 (not inconsistent with R.A. 9904) provides that
there shall be a board that is able to exercise objective judgment
on Association affairs INDEPENDENTLY of its officers. This means
that in voting for acts which the Board alone may decide,
the officers do not have the legal capacity to vote
themselves, unless they are at the same time, if allowed by the
law, also members of the Board of Directors or Trustees.