Republika ng Pilipinas KAGAWARAN NG INTERYOR AT PAMAHALAANG LOKAL DILG-NAPOLCOM Center, Panulukan ng EDSA at Quezon Avenue, West Triangle, Quezon City www dilg.gov.ph Agosto 17, 2021 G. RICHARD VENANCIO FERNANDO V. ZIGA Direktor Kawanihan ng Samahan ng May-ari ng Bahay at Pag-unlad ng Komunidad Kagawaran ng Panahanang Pantao at Pagpapaunlad ng Kalunsuran Mayaman St Diliman, Lungsod ng Quezon, 1101 Pilipinas Mahal na Dir. Ziga: Ito ay tungkol sa Joint Memorandum Circular (JMC) bitang 2 serye 2021 na may titulo na Guidelines on the Formation of Federations and Confederations of Homeowners’ Associations sa pagitan ng Kagawaran ng Interyor at Pamahalaang Lokal. Sinusumite naming ang dokumentong nilagdaan ng Kalihim ng Interyor at Pamahalaang Lokal para sa inyong sanggunian Maraming salamat. Tapat na sumasaiyo, ashi cponncun, CESO III Direktor Kawanihan ng Pagpapauniad ng Pamahalaang Lokalp, BLGD-LFRODIAFBIVSCIBFCimma “Matino, Mahusay at Maaasahan” ‘Trunklne No,' 8876-34-54DEPARTMENT OF HUMAN SETTLEMENTS AND URBAN DEVELOPMENT DEPARTMENT OF THE INTERIOR AND LOCAL GOVERNMENT JOINT MEMORANDUM CIRCULAR NO. 02 ‘SERIES OF 2024 To a; DHSUD REGIONAL DIRECTORS, DILG REGIONAL, PROVINCIAL, CITY, AND FIELD OFFICERS AND LOCAL CHIEF EXECUTIVES OF ALL PROVINCES, CITIES, MUNICIPALITIES AND BARANGAYS SUBJECT = GUIDELINES ON THE FORMATION OF FEDERATIONS AND CONFEDERATIONS OF HOMEOWNERS’ ASSOCIATIONS: Section 1. Background In adherence to the constitutional mandate of the government to encourage, promote, an respect the people's right to form organizations and initiate community-based or non- governmental groups within the framework of our democracy, the Department of Human Settlements and Urban Development (DHSUD), cognizant of the combined power and Unifying support of homeowners’ associations (HOAs) and their federations to engage, care, work for, and protect their communities in cooperation with the government, finds it imperative to organize, register, supervise and capacitate them as constructive organizations, efficient and effective, established for cooperation, partnership and unity of action with the government in addressing their common concerns. thas become imperative that HOAs organize in large numbers and form alliances to live up to their role as a key sector to be consulted and considered in the formulation of policies, programs, and projects not only of this Department, but also of the Department of the Interior and Local Government (DILG) and other national government agencies and the local government, as provided under Sections 18 and 19 of Republic Act No. 9904. For this purpose, the DHSUD, in coordination with the DILG through the Local Government Units (LGUs), embarks on a continuing national program to attain improved heights of empowerment for associations as people's organizations by enabling and assisting them to unite as federations and confederations by barangays, cities, municipalities, provinces and regions or by other common uniting considerations aside from territorial jurisdiction in order to pursue their common interests as well as assist the government in furtherance of relevant programs. Page 1 of 8Section 2. Legal Bases The formation of federations and confederations of HOAs and DHSUD and DILG's partnership in the formation of these alliances are supported by the following legal bases: 24 The relevant provisions of RA 9904 are cited as follows: “Section 18. Relationship with LGUs.- Homeowners’ associations shall complement, support and strengthen LGUs in providing vital services to their members and help implement local government policies, programs, ordinances, and rules. Section 19. ___ Relationship _with National. Government Agencies. - The associations shall complement, support and ‘strengthen the efforts of the national government agencies in providing vital services to their members and help implement the national government policies and programs. Section 20. Duties and Responsibilities of the HLURB [now, DHSUD}. - In addition to the powers, authorities and responsibilities vested in it by Republic Act No. 8763, Presidential Decree No. 902 - A, Batas Pambansa Big. 68 and Executive Order No. 535, Series of 1981, as amended, the HLURB (now, DHSUD) shall: (c) Register all _—_ associations, _ federations, confederations or umbrella organizations of the associations; () Exercise the same powers over federations, confederations or umbrella organizations of the associations; (9) Formulate, in consultation with the representatives of associations, federations, confederations or umbrella organizations of + the associations, _ standard nomenclatures to be used for the associations’ books of accounts, and standard articles of incorporation and bylaws for homeowners’ association for reference purposes; (h) Formulate, in consultation with the representatives of associations, federations, confederations or umbrella ‘organizations of the associations, the guidelines in regulating the kinds of contributions and fees that may be charged and/or collected by associations” 22 The relevant provision of Executive Order No. 292, Book IV, Title XII otherwise known as the “Administrative Code of 1987" states that: “Section 2. Mandate. The Department shall assist the President in the exercise of general supervision over local governments and Page 2 of 8in ensuring autonomy, decentralization and community empowerment.” 23 The relevant provisions of the Local Government Code of 1991 are as follows: “Section 34. Role of People's and Non-governmental Organizations. Local government units shall promote the establishment and operation of people's and non-governmental organizations to become active partners in the pursuit of local autonomy. Section 36. Assistance to People and Non-governmental Organizations. A local government unit may, through its local chief executive and with the concurrence of the Sanggunian concerned, provide assistance, financial or otherwise, to such people and non- governmental organizations for economic, socially-oriented, environmental, or cultural projects to be implemented within its territorial jurisdiction.” Section 3. Purpose This Joint Memorandum Circular (JMC) shall operationalize the above constitutional mandate and state policy as declared in RA 9904, RA 7160, and EO 292 to assist in the organization of federations and confederations of HOAs as non-governmental, non- political, community-based and people's organizations that shall serve their legitimate collective interests and as partners of the government in nation-building. Membership in federations/confederations of HOAs shall be voluntary in nature. Section 4. Coverage This JMC shall cover all DHSUD Regional Offices, DILG Regional, Provincial, City and Field Offices, all LGUs, and all homeowners’ associations registered with the DHSUD within their respective territorial jurisdiction. Section 5. Definition of Terms 5.4 Homeowners’ Associations (HOAs) - refers to associations which are non-stock, nonprofit associations registered with the DHSUD or previously registered with the defunct Housing and Land Use Regulatory Board (HLURB), the Home Insurance Guarantee Corporation (now Home Guaranty Corporation) or the Securities and Exchange Commission (SEC), organized by: 5.1.1. Owners or purchasers of a lot in a subdivision/village or other residential real property located within the jurisdiction of the association; Page 3 of 85.1.2 Awardees, usufructuaries, legal occupants and/or lessees of a housing unit and/or lot in a government socialized or economic housing or relocation project and other urban estates; or 5.1.3. Underprivileged and homeless citizens as defined under existing laws in the process of being accredited as usufructuaries or awardees of ownership rights under the Community Mortgage Program (CMP), Land Tenure Assistance Program (LTAP), and other similar programs in elation to a socialized housing project actually being implemented by the national government or the LGU 5.2 Federation - refers to an organization of two (2) or more HOAs created and registered to pursue common goals beneficial to the interest of the constituent associations and members thereof. 53 Confederation - refers to an association of two (2) or more federated HOAs created and registered to pursue common goals beneficial to the interest of the constituent associations and members thereof. Section 6. Federation of Homeowners’ Associations ‘All HOAs shall be sequentially federated/confederated in every political unit, starting fror the barangay to the municipal and city levels and the municipallcity level to the provincial level, with the following guidelines: 61 Levels of Federations and Membership Requirement 6.1.1 Federations of HOAs shall be established at the following levels: 6.1.1.1 Barangay federations, which shall be composed of HOAs within the same barangay; Municipal federations, which shall be composed of HOAs within the same municipality; 6.1.1.3 City federations, which shall be composed of HOAS within the same city; 6.1.1.4 Provincial Confederations, which shall be composed of city and municipal federations of HOAs; 6.1.1.5 Regional Confederations, which shall be composed of provincial confederations and confederations in highly urbanized cities; and 6.1.1.6 There shall be only one national confederation composed of regional confederations. Page 4 of 86.1.2 _Inter-city or inter-municipal federations may be established based on commonality of interests of participating HOAs such as, but not limited to: 6.1.2.1. The members of the constituent associations are beneficiaries of the Community Mortgage Program of the Social Housing Finance Corporation or of the LGU, housing program of the National Housing ‘Authority and other similar government-funded or managed housing or resettlement projects; and 6.1.2.2 The associations are established in subdivision projects with common subdivision owners and/or developers. 62 Federation/Confederation Officers - The HOA Federations/ Confederations at all levels, shall elect its officers, including but not limited to the following positions: President, Vice-President, Secretary, Treasurer, and Auditor. Section 7. Eligibility for Membership in Federations A HOA is eligible for membership in federations provided that it is registered and/or enrolled with the former HLURB, now DHSUD and that membership in a federation is not prohibited in the association's governing documents, deed of restrictions or any contract of conveyance executed by the HOA member with the owner/developer of the subdivision project. Section 8. Roles and Responsibilities 8.1 The DHSUD shall: 8.1.1 Promote and support the alliances of homeowners’ associations, federations and confederations as a channel for communication between the community associations and the government, and as a means to facilitate consultations on matters affecting their welfare; 8.1.2 In partnership with the DILG, encourage LGUs to initiate the conduct of orientations for HOAs together with an aggressive information and education campaign on the benefits and strengths of consolidating or federating associations for community development activities, and the need for the active participation of associations through the federations and confederations in the formulation and implementation of policies and programs of the national and local government; 8.1.3. Promote the sustainability of the federations and confederations formed by developing, by itself or in coordination other government agencies, appropriate Page 5 of 88.2 83 programs and projects beneficial to the federations, confederations and participating HOAs; 8.1.4 Devise a system to ensure that the activities of the federations and confederations are compliant with pertinent laws, policies, rules and regulations and that these activities are non-partisan and not platforms for the promotion of personal, religious and ideological preferences; 8.1.5 Coordinate and maintain linkage with LGUs to ensure the federations’, confederations’ and participating HOAs’ access to basic services and governmental programs; and 8.1.6 Pursue the institutionalization of offices in LGUs that shall address the concems of homeowners’ associations through the federations and confederations within their respective jurisdictions and the representation of the associations in the Local Housing Board. In collaboration with the DHSUD, the DILG shall: 8.2.1 Enjoin LGUs to support the mobilization and organization HOAs into federations/confederations in their respective jurisdictions as active partners in enforcing regulations, supporting local government programs, and complementing service delivery functions of LGUs; 8.2.2 Encourage LGUs to initiate the conduct of orientations for HOAs together with an information and education campaign on the benefits and strengths of consolidating or federating associations for community development activities, and the need for the active participation of associations through the federations and confederations in the formulation and implementation of policies and programs of the national and local government; and 82.3 Issue, as may be necessary, supplementary guidelines to LGUs in the implementation of this JMC. The LGUs thru the local housing board shall: 8.3.1 Provide support in reaching out to and mobilizing the HOAs for the organization of federations and confederations; 83.2 Promote the federations/confederations and support the activities and programs of registered federations/confederations; 8.3.3 Recognize registered federations and confederations as representatives of HOAs in the formulation and enforcement of related national laws and policies, local ordinances, and regulations; and Page 6 of 88.3.4 Engage the federations and confederations of HOAs, when necessary, in public education and information dissemination campaigns, providing assistance in enforcing regulations within and among federating members; and extending service delivery to HOA communities. 8.3.5 Designate an LGU HOA focal officer who shall: 8.3.5.1 Coordinate and liaise with the designated DHSUD liaison officer on all matters pertaining to HOAs within their jurisdiction; 8.3.5.2 Man the provided HOA Desk in their respective local housing office/unit; 8.3.5.3 Keep a record of all HOA matters and communications brought before the DHSUD and monitor their status; and 83.5.4 Keep an updated master list, as shared by the DHSUD liaison officer, which includes contact details of all HOAs, federations and confederations, as well as their member HOAs, within their jurisdiction. Section 9. Technical Support of DHSUD to LGUs via Designation of a Liaison Officer The DHSUD, through its Homeowners’ Association and Community Development Division, shall coordinate with LGUs, through their local hot offices, and provide technical assistance to the HOAs, federations, and confederations in their respective jurisdictions. The DHSUD shall designate a Liaison Officer or focal person to assist LGUs in providing technical assistance to HOAs, federations, and confederations in their respective jurisdictions. The LGU shall provide a HOA Desk for the designated DHSUD liaison officer in their local housing office/unit, which shall be manned by the LGU-designated HOA focal officer, and where the DHSUD liaison officer shalll hold office. The DHSUD Liaison Officer shall be authorized to receive and conduct preliminary evaluation of documents for action by the DHSUD Regional Office, provide technical assistance or render advice with regard thereto, and periodically inform the LGU HOA Focal Officer of their status. Page 7 of 8Section 10. Monitoring and Reporting The DILG and DSHUD shall institutionalize a monitoring and reporting system on the federations and confederations of HOAs. LGUs shall prepare and submit reports to the designated DSHUD Liaison Officer which shall then be consolidated at the regional and national level. Section 11. Separability Clause If any section of this JMC is declared invalid or unconstitutional, the other sections not otherwise affected shall remain in full force and effect. Section 12. Effectivity. This Joint Memorandum Circular shall take effect immediately. SIGNED AND AGREED UPON by the member-agencies this 8° day of July 2021 in Quezon City, Metro Manila. UAT |. ANO Secretary, DILG Page 8 of 8