Press Release
May 30, 2009

Senate approves Magna Carta for Homeowners and Homeowners Association on 2nd reading
Bill to accord equal rights to homeowner members and non-members

Senate Majority Leader Juan Miguel Zubiri on Saturday committed to approve the Magna Carta for Homeowners and Homeowners Association for third and final reading before Congress adjourns sine die on Thursday.

Senate Bill No. 3061 or the Magna Carta for Homeowners and Homeowners Association was submitted to the plenary on Wednesday and was approved on second reading after lengthy debates and additional amendments proposed by Senators Aquilino Pimentel Jr, Jingoy Estrada, Miriam Defensor Santiago and Panfilo Lacson.

He said the Magna Carta for Homeowners and Homeowners Association aims "to provide homeowners both members and non-homeowner members association their rights and duties" and to finally "put to rest the issue of jurisdiction of homeowners associations including their intra and inter-association controversies."

In his sponsorship speech, the senator defined homeowners as "not only those living in titled homes and lots in subdivisions but to lessees, awardees, beneficiaries, or occupants in government socialized or economic housing or relocation projects, and even underprivileged and homeless citizens while they are in the process of being accredited as beneficiaries or awardees of ownership rights under the CMP, LTA, and other similar programs."

Zubiri explained that "homeownership is not necessarily dependent on full and actual ownership, as even those with beneficial ownership can be entitled to the rights granted to homeowners."

He said "provided that lessees in government socialized housing projects or urban estates and those in communities of underprivileged and homeless citizens covered under the term under Section 3 (1) of this Act, will be considered as homeowners for the purpose of qualifying as a member of a homeowners' association without need of such written consent or authorization."

The Majority Leader also clarified that "all homeowners can become members of the homeowners' association and at the same time allows homeowners not to engage or member in any homeowners association as indicated in Article III, sec. 8 of the 1987 Constitution, stating "membership in homeowner's association is generally voluntary, subject only to a few exceptions recognized by the Supreme Court through various decisions on the matter."

He said that while the law recognized that membership in any association is voluntary unless it is stipulated in the contract or annotated in the title.

The proposed act likewise recognized two classes of homeowners exist, non-member homeowners and the homeowner members.

"The rights of both classes are enumerated in the proposed legislation, subject to any additional benefits which they may receive by virtue of the homeowners' association by-laws," Zubiri said.

"A non-member homeowner has the duty to pay the costs and expenses incurred by the association for the payment of basic community services."

"On grounds of equity alone, a non-member homeowner should contribute in the community expenses that redound to his or her benefit.

Membership in homeowners association on the other hand "entails more rights and responsibilities, he said.

The Magna Carta for Homeowners and Homeowners Association specifies services which homeowner members can avail such as community services and the use of common areas and facilities, including the inspection of association books and records during office hours, annual reports and financial statements, and accord them the right to vote for any elective or appointive office of the association subject to the qualification provided in the By-Laws, and participation in association meetings.

Section 29 of the proposed Act states that no homeowners shall be deprived to enjoy basic community services and facilities including common areas, as long as, he or she pays the necessary dues and charges accorded by the association by laws for such use.

SB 3061 likewise proposes that the registration of homeowners association be placed under the control of the Housing and Land Use Regulation Board (HLURB). The HLURB under Section 28 of the proposed Act "will provide free orientation to the officers of the association, registration of all associations, federations, confederations and other umbrella organizations of housing organization. It will also take the responsibility to hear and decide o intra and/or inter-corporate controversies, and conflicts among association members and non-members without prejudice to filing civil and criminal cases by the parties concerned before the regular court."

Zubiri believes that "with the passage of the Magna Carta for Homeowners and Homeowners Association there will now be clear cut guidelines on how homeowners association may conduct its operations, and provide basic services to its homeowners, as well as homeowners knowing their right as paying members."

"With this measure we will see lesser disputes between subdivisions against subdivisions, subdivision against their members, and members against other members. This Magna Carta will assist in solving several cases that are now languishing in the courts due to a lack of legislation concerning the matter. It is every Filipinos dream to own his home and it is my dream to give them some peace of mind," Zubiri said.

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