Attached herewith is a copy of HLURB Board Resolution No. R-788, Series of 2006, Amending Certain Provisions of the 2004 Rules on Registration and Supervision of Homeowners Associations, which was approved by the Board on 11 Jan. 2006.

The above was published in the Philippine Daily Inquirer on 12 March 2006, and, in accordance with the provisions of law, shall take effect fifteen (15) days from its date of publication.

Please be guided accordingly.

Adopted: 17 March 2006


(SGD.) ROMULO Q.M. FABUL




Amending Certain Provisions of the 2004 Rules on Registration and Supervision of Homeowners Associations (Board Resolution No. R-771, s. 2004)

WHEREAS, a number of groups of homeowners associations have expressed appeals for the amendment of certain provisions of the 2004 Rules on Registration and Supervision of Homeowners Associations;

WHEREAS, the Board deems it to the best interest of all homeowners associations to re-examine and reconsider the proposals;

WHEREFORE, the Board of Commissioners hereby resolves to amend the following provisions of Board Resolution No. R-771, series of 2004:

Rule IX

œSection 1. Segregation - A group of members of a homeowners association may, after conducting among themselves a referendum with prior notice to the affected mother homeowners association and the Regional Office of the HLURB, form a new association by filing a verified petition with said Regional Office x x x . 

Rule XII

œSection 3. Homeowners Association books to be kept - Every homeowners association shall keep and carefully preserve a book or  record  of all transactions and minutes of all meetings of members, or of the board of directors of trustees, in which shall be set forth in detail the time and agenda for holding the meeting, how authorized, the notice given, whether the meeting was regular or special, if special its object, those present and absent, and every act done or ordered done at the meeting. 

When books or records are required to be produced and examined upon proper petition before the HLURB, a certified true copy of the same shall be produced by the Association Secretary. 

Rule XIII

œSection 1. Annual Report - Within forty five (45) days from the close of the accounting period, the homeowners association shall submit to the Regional Office the following books and documents concerning its operations during the preceding accounting period:

a.  General information sheet; and,
b. Most recently audited financial statement.
[c. Certified true copy of the membership book and the minutes book as certified by the association secretary;] 

œx x x 

Rule XV

œSection 1. Treasurer ™s Bond - The treasurer of the homeowners association, before assumption of his/her office, shall file a treasurer ™s bond to guarantee the faithful and effective performance of his/her duties and responsibilities. The premium of such treasurer ™s bond may be sourced from the operating expenses of the homeowners associations in an amount equivalent to the association ™s cash assets and its equivalent at the time of assumption to office of the officers concerned. 

œSection 2. Failure to post treasurer ™s bond - If the treasurer of the home- owners association fails to post the required bond, he/she may nonetheless perform his/her official functions, except the disbursement of the funds of the homeowners association shall be at the instance of the board of directors or trustees. 

Rule XVI

œSection 5. Involuntary Dissolution - A homeowners association may be dissolved by the Regional Office upon its prior investigation or the filing of a verified complaint, after proper notice and hearing, on the following grounds provided by existing laws, rules and regulations:

a.    When the homeowners association has violated against a provision of an act for its creation or renewal;

b.    When it has forfeited its privileges and franchises by continuous in operation or non-user for a period of at least five (5) years;

c.    When it has committed or omitted an act which amounts to a surrender of its corporate rights, privileges, or franchises;

d.    When it has misused a right, privilege or franchise conferred upon it by law or when it has exercised a right, privilege or franchise in contravention of law. 

Adopted: 11 Jan. 2006

(SGD.) THE HONORABLE NOLI L. DE CASTRO Vice-President of the Philippines and HUDCC Chairman
(SGD.) AUGUSTO B. SANTOS Director General, NEDA	(SGD.) ROMULO Q. FABUL Commissioner and Chief Executive Officer
(SGD.) TERESITA A. DESIERTO Commissioner	(SGD.) JESUS YAP PANG Commissioner
(SGD.) JOEL I. JACOB DPWH
Attested by:
(SGD.) CHARITO B. LANSANG Board Secretary

---

^[*] Not filed/included