Professional Documents
Culture Documents
PARTI
PRELIMINARY PROVISIONS
Rule 1
GENERAL PROVISIONS
2.3. To adopt adequate and clear procedural guidelines for uniformity and
consistency in the monitoring and the imposition of fines, penalties and sanctions
if so warranted;
2.4. To ensure the protection of and respect for private rights through the
formulation of definitive rules of procedure in the monitoring of development
projects and imposition of sanctions for violation of laws, rules and regulations
being enforced by the HLURB to provide guidance to both the staff and the
public;
3.3. All other land use and development projects and real estate
transactions including offers or proposals and arrangement for the sale and
development of real estate projects, for the purpose of ascertaining applicability
of and compliance with the mandates of the HLURB;
Rule 2
DEFINITION OF TERMS
AND CONSTRUCTION
association and are submitted to the Regional Field Office for determining the
character or nature of the association as a non-stock, non-profit corporate entity
formed for the benefit of the homeowners of a subdivision/ village or
condominium project, whenever applicable.
4.8. Cease and Desist Order refers to the remedy whereby a party is
directed to refrain from doing a particular act or acts pending the resolution of the
case.
4.9. Complainant refers to the party who initiated the action and
includes a respondent who has filed a counter-complaint against the complainant
insofar as such counterclaim is concerned and/or a respondent who has
instituted a cross-complaint against a co-respondent insofar as that crossclaim is
concerned.
4.12. HLURB shall refer to the Housing and Land Use Regulatory Board.
4.13. Inspections shall refer to the act of the responsible officers of the
Regional Office which forms part of the monitoring process for the purpose of
determining whether a project or transaction is compliant with the laws, rules,
regulations and standards implemented by the HLURB.
4.14. Investigations shall refer to the act of the responsible officers of the
Regional Office, initiated either motu propio or upon complaint or information from
a third party, forming part of the monitoring process, for the purpose of
determining whether a violation has been by the respondent of the laws, rules,
regulations and standards implemented by the HLURB. The investigations may
either be-
4.19. Respondent is the party against whom the complainant has filed a
complaint, and includes a complainant against whom a respondent has filed a
claim and/or a respondent who has filed a cross-complaint against a co-
respondent. It may also refer to the person or entity subject to administrative
inspection or investigation, field or non-field investigation, and/or the subject of
administrative proceedings for the purpose of determination of whether to impose
administrative penalties for non-compliance with the laws, rules, regulations and
standards of the HLURB.
Rule3
by the HLURB to determine whether the same has satisfactorily complied with
the terms and conditions thereof;
6.3. Verify reports of alleged violations of the laws, rules, regulations and
standards administered by the HLURB;
Section 7. Powers. - The Regional Officer shall have the following powers:
7.1. Cease and Desist Orders. To issue cease and desist orders
restraining the commission or continuance of the act or acts complained of, or in
requiring the performance of an act or acts either for a limited period or
perpetually subject, which shall be effective immediately upon service to the party
charged.
Within ten (10) days from its issuance, the Regional Officer shall conduct a
summary hearing to determine if the COO shall be continued indefinitely until the
final resolution of the controversy. The order may be appealed to the Board of
Commissioners within fifteen (15) days from notice of its issuance, which appeal,
however, shall not stay the implementation of the said order. In case the appeal
is granted, the party charged shall post a supersedeas bond in an amount to be
fixed by the Board of Commissioners.
7.3. To order the search and seizure or cause the search and seizure of
all .documents, papers, files and records as well as books of accounts of any
e~t1ty ?r person under investigation as may be necessary for the proper
disposition of the cases before it; .
7.4. To impose fines and/or penalties for violation of the laws being
implemented by the HLURB, the pertinent rules and regulations, its orders,
awards and/or ryJings; and,
PART II
Rule4
PROCEDURE IN ADMINISTRATIVE
INSPECTIONS AND INVESTIGATIONS
8.1. Upon the instance of any officer or employee of the HLURB when
the alleged violation was committed or is being committed in his/her presence, or
upon review of the documents and things on record such a violation is probably
being committed or has been committed or is being committed; or
9.2. Evaluation. The designated personnel shall, within ten (10) working
days, review all documents, records and things submitted for evaluation,
including the conduct of field investigations solely for the purpose of confirming
the facts narrated and/or authenticating the aforesaid documents, records and
Page 8 of 32
~hings: H?wever, if there is a.. need to conduct a more detailed and in-depth
investiqation to uncover additional facts and circumstances which are not
covered by the referral, the matter shall be returned to the Head of the Unit
involved for the conduct of field inspection/investigation in accordance with the
procedure in the succeeding section.
11.2. Review. The Head of the Monitoring or HOA Unit shall review the
NIR or SIR, including all attached documents, and, within five (5) working days,
either-
11.3. Order. The Regional Officer shall evaluate the NIR or SIR within ten
(10) working days from receipt thereof. If the Regional Officer agrees with the
conclusions of the NIR/SIR or, if to the contrary, the Head of the Monitoring or
HOA units, he/she shall sign the appropriate draft Order, either closing the
proceedings or directing the issuance of the Notice of Reported Alleged Violation
(NORA V). If the Regional Officer disagrees with both or determines that the draft
Order or Notice is defective, he/she shall prepare a new Order and/or Notice, and
return the same to the unit from whence the inspection or investigation
originated.
Rule5
The NORAV shall be furnished the respondent within a period of ten (10)
days from its issuance. If the investigation was initiated by the complaint of a third
party, the latter shall be entitled to copies of the Inspection/investigation Report,
and the NORAV.
Section 13. Comment. - The NORAV shall include an order directing the
respondent to comment thereon within a period of ten (10) days from receipt
thereof. The Regional Officer may resolve the matter on the basis of the
documents on record within a period of fifteen (15) working days from receipt of
the comment or the lapse of the period within which the said comment ought to
have been submitted.
15.3. Resolution. The Regional Officer shall, within five (5) working days
from receipt, either approve or disapprove the draft Order, or choose between
which of the two (2) draft Orders will be approved, or draft a new Order stating
the findings of fact, the issues resolved and the basis for the resolution.
16.1. Contents.
16.2. Notice. Within five (5) working days from the resolution of the case,
the Regional Officer shall cause, through whatever means available and
expeditious, furnish a copy of the order to the parties.
Page 12 of 32
Rule6
18.1. Ordinary Appeal. The final orders and resolutions of the Regional
Officer, in the exercise of his/her regulatory jurisdiction may be appealed to the
Board of Commissioners within fifteen (15) days from receipt thereof by the
aggrieved party.
PART Ill
SPECIAL ADMINISTRATIVE
INSPECTIONS AND INVESTIGATIONS
Rule7
MONITORING OF NEW
REAL ESTATE DEVELOPMENTS
Section 23. Resolution. - The Regional Officer shall act on the documents
reviewed by the Head of the Monitoring Division, within a period of five (5)
working days from receipt thereof, either by terminating the proceedings or
issuing a NORAV by -
Rule8
ADJUDICATORY MECHANISM
Section 24. Application. - The procedure through which the issue of which
of two (2) or more homeowners associations existing within the same or
substantially the same area of the subdivision or condominium, shall be certified
is applicable to the following situations:
24.1. One of the associations is registered with the SEC and another with
the HGC;
24.2. One of the associations is registered with either the Securities and
Exchange or the HGC, and the other with the HLURB; or
24.3. Both or all the associations are registered with the HLURB.
25.2. Confirmation of Legal Existence. In the event that the dispute is not
settled amicably, the Regional Office shall conduct a non-field investigation to
determine the legal existence of the contending associations by -
During the conference, the parties shall be asked to make a final effort at
reaching an amicable settlement. Failing that, the parties shall be required to
submit their comment to the list of members submitted by the other party within a
period of ten (10) days from the date of the last hearing.
26.1. Recognition.
Rule9
notice thereof and directing the Association to answer the petition within ten (1 O)
days from receipt of the said notice.
27.4. Conference. On the date set for the conference, the Regional
Officer shall render judgment if, as of that date, the Association has not filed its
Answer. Otherwise, the Regional Officer shall attempt to mediate the dispute,
failing which, the Regional Officer shall inform the parties that the petition is
deemed submitted for resolution.
Rule 10
REMOVAL OF DIRECTORS
Whenever the petition for the removal of director(s) shall result in the
absence of a quorum for the Board to legally conduct business, the action shall
be considered as a petition for the dissolution of the Board and shall be
considered and resolved in accordance with the procedure for such dissolution.
Page 19 of 32
The petition for the removal of director(s) or for the dissolution of the Board
filed within the period of three (3) months before the expiration of the term of
office of the director(s) or the Board shall be dismissed, without prejudice to the
right of the petitioner to invoke the adjudicatory jurisdiction of the HLURB.
30.1. Contents.
Section 31. Initial Evaluation. - Upon filing and payment of the required
fees, the Regional Office shall evaluate the petition for sufficiency in form and
substance, and make a determination, within ten (1 O) days from the filing thereof,
as follows:
Page 20 of 32
32.1. Notice. Notice shall be sent to the parties, within five (5) days from
the determination of sufficiency in form and substance, stating the following:
Section 33. Re-evaluation. - The Regional Officer shall, within five (5)
calendar days from the termination of the conference, issue an Order ruling that -
Page 21of32
33.1. Dismissal. The petition is dismissed for the failure of the petitioner
to prove, by prima facie evidence, the cause(s) alleged or that the petitioners do
not constitute a simple majority of all the members in good standing of the
association; or,
33.2. Due course. The petition shall proceed as the petitioners have
proven the sufficiency of the petition in form and substance and sending a notice
to all parties that the Regional Office shall verify the identity and validate the
signatures as appearing on the petition and its attached documents on the dates
set therein.
Section 34. Order. - Within five (5) working days from the submission of
the Report, the Regional Officer shall issue an Order:
Rule 11
Section 35. Dissolution. - The Board may be dissolved under the following
circumstances:
Section 37. Decision. - The Regional Officer shall issue an Order within a
period of fifteen (15) days from completion of all proceedings as follows:
37.1. Resolution. If the petitioner has failed to prove the reasons for the
dissolution of the Board, the Regional Officer shall order the dismissal of the
petition. Otherwise, he/she shall order the dissolution of the Board upon a finding
that there is cause therefor.
37.2. Special Election. The Regional Officer shall immediately call for the
conduct of special elections to elect the members of the replacement Board
which shall only serve the unexpired portion thereof.
37.3 Interim Board. The Regional Officer shall likewise appoint the
members of the interim Board who shall hold office until the new Board has been
elected and qualified: Provided, That the interim Board shall only function to
insure that the basic services are provided the members and the performance of
the day-to-day operations of the association: Provided, further, That such Board
shall be composed of association members· in good standing: and, Provided
additionally, That such interim directors shall not be eligible to run in the election
called for the purpose of replacing the members of the dissolved board; and,
Provided, finally, That the Interim Board is automatically dissolved upon the
qualification and assumption into office of the newly elected Board.
Rule 12
SUPERVISED ELECTIONS
39.1. Petition. The petition shall be filed with the Regional Office having
jurisdiction over the association and shall state the material circumstances of the
parties, the reasons for the conduct of the supervised elections, the name of the
nominee for the Special Elections Committee in the event that the petition is
granted, and the payment of the corresponding fees which shall cover the costs
of service of pleadings and the conduct of the investigations.
The Regional Officer shall resolve the issue within a period of five (5)
working days from receipt of the reply or the lapse of the period within which the
said reply should have been filed.
If the Regional Officer finds no merit in the petition, he/she shall issue an
Order dismissing the petition.
39.3. Preliminary Order. In the event that the Regional Officer finds merit
to the petition, he/she shall issue a preliminary order stating that -
39.4. Order. Upon payment of the election expenses, the Regional Officer
shall create and name the Special Elections Committee and charge them with the
duty of supervising the pre-elections, elections and post-elections activities, with
the instruction that the entire election process be completed within a period of
sixty (60) days from the date of the convening of the Special Election Committee.
Page 24 of 32
40.2.3. Provide for the date and time of postings, filing, and
submission of the master list of the members qualified to vote, the
certificates of candidacy, and the proxy forms if allowed by the By-
laws;
Section 41. Election Procedure. - Within five (5) days from the payment of
the election fees, the Regional Officer shall immediately designate the chair of
the committee supervising the elections and the two other members as well as
appoint the representatives of the contending parties as provided herein.
41.1.1. Set the date, time and place of the elections, which
shall not be more than sixty (60) days from the date of the notice;
association, containing: (a) the time, date and place of the special
elections; (b) the period and place for the submission of any petition
to include or exclude voters; and, (c) the period for the submission
of certificates of candidacy and proxies, if allowed by the By-laws;
41. 3.2. Election Activities which state the date and time of
the commencement and end of the election, the number of qualified
voters, number of votes cast and the number of votes received by
the candidates, and all other matters which occurred in the course
of the elections, and documents pertaining to the Minutes of the
Elections, the list of voters with their corresponding signatures, the
certified election returns and any protests filed, and such other
documents as may be deemed relevant and necessary.
the outgoing directors and officers of an association shall turn over all association
books, records, properties and other assets, to the new set of directors and
officers within fifteen (15) days from the proclamation of the new Board. The
refusal or unreasonable failure to comply with this provision shall constitute a
ground for contempt and fine imposed on the erring officers at the rate of
P.500.00 per day reckoned from the last day for the turn-over thereof, apart from
such other penalties which may be imposed by law.
Rule 13
MANAGEMENT COMMITTEE
45.1. Creation. The Regional Officer having jurisdiction over the case
may, upon a verified petition or motion by any of the parties, create a
management committee for the Association to carry out the day-to-day
operations of the association until a new set of officers is elected. The members
ofthe management committee are considered agents of the HLURB and shall be
under the control and supervision of the Regional Officer.
45.3. Grounds. The petition shall establish that there is no other adequate
remedy available and that the creation of the committee is necessary -
46.4. Reports. - Within a period of thirty (30) days from their appointment
and every month thereafter, the members the management committee shall
submit a report to the Arbiter, Board of Commissioners or its duly authorized
representative, as the case may be, on the state and condition of the association
under management.
Section 48. Report. - The management committee shall submit its final
report, render an accounting of the management, and turn-over all the records
and assets of the association to the duly qualified officers of the association,
upon its discharge or dissolution, and within such reasonable time as the
Regional Officer, the Board of Commissioners, or their authorized representative,
may allow.
PART IV
MISCELLANEOUS PROVISIONS
Rule 14
49.1. Division. The divisible penalty shall be divided into two as follows:
Section 50. Qualified Penalties. - When the law, rule or regulation sets
either a minimum but not a maximum, or a maximum without a minimum amount
or period, the penalties to be imposed are, as follows:
50.1. When the law, rule or regulation uses the words "not more than" or
terms of similar import, the minimum imposable penalty shall be the median
between the maximum as provided by law and zero penalty. Thereafter, the
imposable penalty shall be divided into minimum, medium and maximum degrees
in accordance with the preceding paragraph.
50.2. When the law, rule or regulation uses the words "not less than" or
terms of similar import, the minimum imposable penalty shall be that as provided
by law and the maximum being double that amount or period. Thereafter, the
imposable penalty shall be divided into minimum, medium and maximum degrees
in accordance with the preceding Section.
Section 51. Indivisible Penalty. - When the law, rule or regulation sets the
amount and/or period of the penalty without any qualifying terms to indicate
whether the imposable penalty may be more or less than that fixed therein, then
the HLURB shall impose the penalty provided regardless of the number and
quality of the mitigating or aggravating circumstances.
the determination that an offense or violation has been committed, the following
circumstances shall be considered in the imposition of penalties:
committed was more than five (5) years from the last offense;
Rule 15
FINAL PROVISIONS
Section 56. Repealing Clause. - Upon the effectivity of this Rules, all
resolutions, orders, memoranda, and circulars of the HLURB which are
inconsistent herewith are hereby repealed or modified accordingly.
Section 57. Effectivitv. - This Rules shall take effect fifteen (15) days after
publication in the Official Gazette.
DRUECO EL ROS~
DCC Chairperson_;;;;; :
~1ftl.J~
Undersecretary, DOJ--:Jil"!J ~
J GUI LON
Commissioner
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D. BARRAMEDA ~IA
IV, NEDA Commissioner