New Rules on Homeowners Association (HOA) Election Procedures
In accordance with Department Order No. 2021-007 Series of 2021, the Department of Human Settlements and Urban Development issued the 2021 Revised Implementing Rules and Regulations of Republic Act No. 9904, otherwise known as The Magna Carta for Homeowners and Homeowners Associations.
What is an Homeowner Association (HOA) in the Philippines?
Section 4, Rule I of the Department Order defines homeowner association (HOA) as a non-stock, non-profit association registered with DHSUD, or one previously registered with HLURB, Home Insurance and Guaranty Corporation (HIGC, now Home Guaranty Corporation or HGC), or Securities and Exchange Commission (SEC), organized by and/or is primarily composed of:
- Owners or purchasers of a lot in a subdivision/ village or other residential real property located within the jurisdiction of the association;
- Awardees, usufructuaries, legal occupants and/or lessees of a housing unit and/or lot in a private, non government or government socialized or economic housing or relocation project and other urban estates;
- Underprivileged and homeless citizens as defined under existing laws who are in the process of being accredited as usufructuaries or awardees of ownership rights under CMP, Land Tenure Assistance Program (LTAP) and other similar programs in relation to a socialized housing project actually being implemented by the national government or the LGU; and
- Potential public housing beneficiaries living in contiguous areas, identified and duly accredited or recognized by, or organized with the assistance of the LGU, the Presidential Commission for the Urban Poor (PCUP), or the National Urban Poor Sectoral Council (NUPSC) for the purpose of availing of housing and/or resettlement programs or housing projects being implemented by the said LGU and/or the national government agencies (NGAs), in which case they will be initially authorized to organize a form of homeowners association known as a neighborhood association.
Homeowner, on the other hand, is defined under the same section as any of the following:
- An owner or purchaser of a lot or house and lot, in a subdivision/ village who acquired the same primarily for residential purposes.
- An awardee, usufructuary, or legal occupant of a unit, house and/or lot in a private, non government or government socialized or economic housing or relocation project and other urban estates.
- An informal settler in the process of being accredited as beneficiary or awardee of ownership rights under the CMP, LTAP, and other similar programs.
Composition of the Boards: Section 68
It provides for the composition of the board, wherein “The Board of Trustees or Directors shall be composed of at least five (5) but not more than fifteen (15) elected members of the association. In no case shall lessees constitute a majority of the Board.”
Election of the Member of the Board
Section 88, Rule XIII on Elections states that:
“An association shall hold regular elections on the date or schedule set forth in its Bylaws. The first election under the Bylaws shall be called by the Interim Board within six (6) months from the approval of the bylaws, and the elected trustees or directors shall only serve until the regular election as provided in the bylaws.”
However, only the incumbent Board and/or through the president or vice president are allowed to call the election as provided for in Section 89 thereof on the calling of an election. Failure to do so within thirty (30) days as indicated in fixed date in the bylaws, the following shall be done thereafter:
- Any member in good standing, in writing, may petition the incumbent Board to call an election, copy furnished the Regional Office where the association is registered.
- When the incumbent Board fails to take action thereon, or sits on the request to call an election within one (1) month from the receipt of the petition or letter, the member in good standing shall report the same to the Regional Office.
- The Regional Office shall take action on the report by directing the incumbent Board, under pain of sanction for non-compliance, to call an election and constitute an Election Committee that shall conduct the election within a specified period.
- Failure of the incumbent Board to call an election and/or constitute an Election Committee as above directed shall cause the Regional Office to create an Election Committee from among the association members who do not intend to run for any position. The members of the incumbent Board who refused to call an election shall be disqualified from running for any position.
- The election authorized and recognized by the Regional Office shall be deemed the official conduct of election of the association.
What Will Happen if the Election is Unauthorized?
If the election done was unauthorized as stated in Section 90 of the Department Order, the results shall not be recognized and shall be considered null and void by the DHSUD. Note, that a quorum as provided for in Section 91 of the same, must be had at the elections either by the member or through proxy. Elections shall be postponed or declared as a failure for reasons such as due to serious causes, lack of candidates, no quorum, or other such causes that hinder the election.
Note that within thirty (30) days from the postponement or failure of election, another election shall then be held. If the second call for elections was still not held, a notice of postponement of the regular or special election, and an affidavit of non-holding of election stating the reasons thereof shall be submitted to the Regional Office.
Need further information and assistance regarding New Rules on HOA Election Procedures? Talk to our team at Duran & Duran-Schulze Law to know more about the requirements and process. Call us today at (+632) 8478 5826 or +63 917 194 0482, or send an email to info@duranschulze.com for more information.
2 Responses
Hi, thank you for this Blog. My inquiry is about the encountered problem of HOAI Election Committee who failed to get candidates to file for Elective Position as Officers (5+1) of the Committee on Election which is elected at large alongside with BODs. What the the EleCom did was to put a clause that says: If in the event you will not win in the position you run for, are you willing to be nominated in the EleCom”. Is this right to put in the COC? My understanding of Election rule in filing COC it is meant for 1 elective position not transferrable. What the EleCom did was to place all candidates who filed for COC for the position either of BODs and Executive. There 42 of them and same name posted as EleCom Nominees but did not file any COC for EleCom. There was a can didate who file for EleCom but it internally make arrangement for that candidate to run instead in BOD but the COC for EleCom was not withdrawn? Another is that the EleCom hold their official meetings for election preparation in a residential house of a volunteer NOT in the HOAI office. Is this allowed? Isn’t it election preparation and meetings should be done in the HOAI office for transparency? Another violation, the election was held last Dec. 17, 2023 but the official result of canvassed votes was only released in December 30, 2023? We sent letter of request to DHSUD about these election irregularities but DHSUD stand was that they are not in a position to declare the legitimacy/illegitimacy of the supposed list of elecom elected for 2024. Besides, in the election report submitted, we noted that the 2023 EleCom did not include in their report the ACTUAL results of canvassed votes of the 42+ candidates they posted as EleCom candidates, but only showed those with votes from 9 to 100. The actual voter turn-out was 474 voters. What we did in the GA is that we presented the problem to the GA, but unfortunately and apparently, the GA has minimal knowledge about the importance of COC ruling. What happened was that the endorsed elected elecom will take the lead of the election for 2025 but the 2023 EleCom was a shadow or the ones providing inputs. What will the BODS do in this case? Please provide appropriate advise. Thank you
Good day, Julieta!
We appreciate your interest. To provide you with the most accurate and detailed response, you may reach us at (+632) 8478 5826 or +63 917 194 0482, or send an email to info@duranschulze.com. Thank you for your cooperation and we look forward to assisting you.