Battad

January 04, 2024
Greetings:
This refers to your electronic-mail (e-mail) which was received by this Office on
December 13, 2023. In your letter, you asked regarding minimum requirement for the
registration of homeowner’s association (HOA), and you raised an issue on the
obligation to provide basic community service and facilities by your owner/developer
of Tierra San Jose Subdivision project located at Mulawin, San Jose Del Monte,
Bulacan.
Relative thereto, please be advised that the owner/developer may initiate the
registration without the percentage requirement pursuant to Section 30 of
Department Order No.2021-007 or The 2021 Revised Implementing Rules and
Regulations of Republic Act No. 9904, to quote:
“Section 30. Organization of Associations Initiated by Subdivision

Owners/Developers. Where the organization and registration of the
association was initiated by the subdivision owner/developer pursuant
to Sec. 27 of Presidential Decree No. 957, in addition to the
documents stated in Sections 28 and 29 of this Rules, the applicant
association shall submit the following documents in triplicate:
a. Certification under oath attesting that as of the date of the filing of

the application for registration, the subdivision lot buyers have neither
constructed their homes, nor have on-going constructions or occupied
their lots. Otherwise, the applicant association shall certify that fifty
percent (50%) of the saleable house and lots have not yet been sold.
b. Certification under oath that the existing residents have been duly
informed and they consent to the project owner and/or developer's
organization and registration of the homeowners association.
c. Names of the buyers and/or existing residents of the project.”
Likewise, in case when the owner/developer did not register or failed to provide the
necessary documents for registration, the purchasers/buyers may cause the
registration of HOA pursuant to Section 27, 28 and 29 (A) of Department Order
No.2021-007 to quote:
“Section 27. Mandatory Registration. All associations whose purpose,

among others, is to promote and protect their mutual interest and assist
in their community development as homeowners are considered
homeowners associations. It is mandatory for all homeowners and/or
neighborhood associations, federations, confederations or other
umbrella organizations of associations to register solely with DHSUD
conformably with Republic Act No. 11201, except:
a. Homeowners associations that registered with HLURB; and

b. Associations previously registered with the SEC or HIGC/HGC that
have reregistered with HLURB pursuant to the 2004 HLURB Rules on
Registration and Supervision of Homeowners Associations or the
2011 Implementing Rules and Regulations of Republic Act No. 9904.
The registration with DHSUD shall serve to grant juridical personality

to all such associations that have not previously acquired the same by
operation of the General Corporation Law or by any other general law.
Upon full compliance with the requirements for registration, the
association shall be issued a Certificate of Incorporation.
The registration of associations previously registered with the SEC or

HIGC/HGC, but who did not re-register with HLURB, shall however be
respected and recognized and these associations shall not be
charged a penalty when they reregister with the DHSUD, Provided,
that the non-application of penalty shall not apply to associations
obtaining registration with the SEC upon the effectivity of this Rules.
(Emphasis supplied.)
Section 28. Procedure for Registration of a New Association; Basic

Requirements. The applicant association shall, upon payment of the
prescribed fees, submit to the DHSUD Regional Office where the
association is to operate or located, the following documents in
triplicate:
a. Notarized Articles of Incorporation signed on each and every page

thereof by all the incorporators consisting of not less than five (5) nor
more than fifteen (15) natural persons;
b. Notarized Bylaws signed on each and every page thereof by all

incorporators or members of the interim Board consisting of not less
than five (5) nor more than fifteen (15) natural persons;
c. Except for registration of associations initiated by subdivision owners/

developers, the minutes of the general assembly meeting certified by
the interim secretary and attested to by the interim president, stating,
among others, the date of the meeting and the fact of quorum,
together with the attendance sheet signed by the members present
and their corresponding votes approving or disapproving the Bylaws.
d. Notarized General Information Sheet;
e. Certification issued by the president, as to the existence or absence of

any other association in the subdivision/village or community; and the
name and address of the nearest association, if any;
f. Code of Ethics signed on every page by the members of the Board of

Trustees or Directors and officers of the association;
g. Notarized undertaking by the association president to change the

name of the association in the event that another person, firm or entity
within the same barangay, city or municipality has acquired a prior
right to the use of the name or one similar thereto, and to comply with
pertinent rules and regulations; and
h. Authorization by the interim president for the representative of the

association to transact and/or follow-up its application for registration
with the Regional Office
Section 29. Additional Requirements.
A. For subdivision projects, the applicant association shall submit the

following:
1. Certified true copy of the approved subdivision or development

plan indicating the area covered by the association.
2. List of members of applicant association with the members'
corresponding signatures and addresses, certified by the
association secretary and attested to by the association
president.
x x x
As to the issue on the provision of basic community service and facilities, please be
guided of Section 19 of Presidential Decree No. 957 otherwise known as Subdivision
and Condominium buyer's Protective Decree (as amended by P.D. 1216). To quote:
SECTION 19. Advertisements. - Advertisements that may be made by

the owner or developer through newspaper, radio, television, leaflets,
circulars or any other form about the subdivision or the condominium or
its operations or activities must reflect the real facts and must be
presented in such manner that will not tend to mislead or deceive the
public.
The owner or developer shall [be] answerable and liable for the
facilities, improvements, infrastructures or other forms of
development represented or promised in brochures,
advertisements and other sales propaganda disseminated by the
owner or developer or his agents and the same shall form part of the
sales warranties enforceable against said owner or developer, jointly
and severally. Failure to comply with these warranties shall also be
punishable in accordance with the penalties provided for in this Decree.
Moreover, please be advised that the available remedy in situations where the
owner/developer failed to provide the basic community service and facilities
aforesaid is to file a Verified Complaint with the Human Settlements Adjudication
Commission pursuant to Republic Act 11201 otherwise known as “An Act Creating
the Department of Human Settlements and Urban Development, Defining its
Mandate, Powers and Functions, and Appropriating Funds Therefor.”
Additionally, you are informed hereby that, by virtue of RA 11201, the Housing and
Land Use Regulatory Board (HLURB) and the Housing and Urban Development
Coordinating Council (HUDCC) were consolidated into the Department of Human
Settlements and Urban Development (DHSUD). As a consequence of this
consolidation, the power/authority of the former HLURB to hear and decide cases
involving allegations of violations of existing laws, rules and regulations governing
HOAs was transferred to a newly-created agency, the HSAC.
In other words, when the situation is highly adversarial by nature which requires the
presentation of contrary/opposing sides from adverse parties in support of their
individual claims/contentions, it is the HSAC − not the DHSUD − which has the
mandate to handle the situation at hand. This applies to complaint against
owner/developer of the subdivision as enunciated in Section 16 of RA 11201. To
quote:
Section 16. Jurisdiction of Regional Adjudicators. - The Regional

Adjudicators shall exercise original and exclusive jurisdiction to hear
and decide cases involving the following:
(a) Cases involving subdivisions, condominiums, memorial parks and

similar real estate developments:
(1) Actions concerning unsound real estate business practices filed by
buyers or homeowners against the project owner or developer, which
cause prejudice to the buyers or committed with bad faith and disregard
of the buyers’ rights;
(2) xxx
(3) Cases involving specific performance or contractual and
statutory obligations arising from the sale of the lot or unit and
development of the subdivision or condominium project;
(4) xxx
Finally, you are likewise advised to seek the assistance of a lawyer in the
preparation of your Verified Complaint in order to determine the other causes of
action you may have and the appropriate judicial or quasi-judicial body which will
hear and decide your case.
For your information and guidance.
Truly yours,

Battad

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January 04, 2024

“Section 30. Organization of Associations Initiated by Subdivision

a. Certification under oath attesting that as of the date of the filing of

c. Names of the buyers and/or existing residents of the project.”

“Section 27. Mandatory Registration. All associations whose purpose,

a. Homeowners associations that registered with HLURB; and

The registration with DHSUD shall serve to grant juridical personality

The registration of associations previously registered with the SEC or

Section 28. Procedure for Registration of a New Association; Basic

a. Notarized Articles of Incorporation signed on each and every page

b. Notarized Bylaws signed on each and every page thereof by all

c. Except for registration of associations initiated by subdivision owners/

d. Notarized General Information Sheet;

e. Certification issued by the president, as to the existence or absence of

f. Code of Ethics signed on every page by the members of the Board of

g. Notarized undertaking by the association president to change the

h. Authorization by the interim president for the representative of the

Section 29. Additional Requirements.

A. For subdivision projects, the applicant association shall submit the

1. Certified true copy of the approved subdivision or development

SECTION 19. Advertisements. - Advertisements that may be made by

Section 16. Jurisdiction of Regional Adjudicators. - The Regional

(a) Cases involving subdivisions, condominiums, memorial parks and

For your information and guidance.

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