HLURB Agrees with HOAs


In a letter to Pag-ibig Citihomes Homeowners’ Associations (PICHOAs) dated February 2, 2012, Housing and Land Use Regulatory Board (HLURB) – Region 10 agrees with PICHOAs’ stand on the membership fee and association dues collected by the developer, Johndorf Ventures Corporation.

PICHOAs asked HLURB to issue a ruling for the developer to turn-over the fund to the respective homeowners’ associations of the subdivision, emphasizing that the developer is a totally separate entity from the association and, therefore, has no right to spend the money in their behalf.

HLURB pointed out in its response-letter that under PD 957, developers are obliged to “initiate” the organization of a Homeowners’ Association, but are not allowed to levy and collect association dues.

It also cited Section 27 of PD 957, otherwise known as The Subdivision and Condominium Buyers’ Protective Decree, which states that, “No owner or developer shall levy upon any lot or buyer a fee for an alleged community benefit. Fees to finance services for common comfort, security and sanitation may be collected only by a properly organized homeowners’ association and only with the consent of a majority of the lot or unit buyers actually residing in the subdivision or condominium project.”

The letter also suggest for PICHOAs to make a formal, written demand to the developer, for the turn-over of the fees collected by the latter.

PICHOAs and the developer had previous dialogues but the former were only presented with collected sum of money minus the expenses incurred by the latter in the subdivision.

The associations strong stand is for the 100% turn-over of funds.

A conference or meeting among PICHOAs and representative from the developer will be held on February 10, 2012 at 9:00 o’clock in the morning at HLURB’s Regional Office, 3rd Floor, Du Point Building, Velez corner Akut Streets, Cagayan de Oro City.

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One thought on “HLURB Agrees with HOAs

  1. Pingback: PICHOA-2 Proposed Financial Bible | Echoes of the Valley

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