Mr. Roberto O. Parel

July 21, 1982 Mr. Roberto O. Parel LSG-PTA Community Association, Inc. La Salle Heights State Financing Center Bldg. Ortigas Avenue, Mandaluyong Metro Manila Sir : This has reference to your letter dated July 8, 1982 requesting an opinion as to the validity/efficacy of Executive Order 535, especially with regard to the power to incorporate homeowners association. Executive Order 535 dated May 3, 1979, Pres. Marcos has vested the Home Financing Corporation (HFC) additional powers in order to make it more effective instrument of the government in solving the acute housing problems of the country. Thus, Executive Order No. 535 expressly prescribed the following: 2. In addition to the powers and functions vested under the Home Financing Act, the corporation shall have, among others, the following additional powers: a) To require submission of and register articles of incorporation of homeowners association and issue certificates of incorporation/registration, upon compliance by the registering association with the fully promulgated rules and regulations thereon; maintain a registry thereof, and exercise all the powers, authorities and responsibilities that are vested on the Securities and Exchange Commission with respect to homeowners association, the provision of Act 1459, as amended by P.D. 902-A, to the contrary notwithstanding; b) To regulate and supervise the activities and operations of all homeowners association registered in accordance therewith;" Likewise, Section 4 of the Corporation Code expressly provides that corporations created by special laws or charters shall be governed primarily by the provisions thereof and supplementarily by the Code, to wit: SECTION 4. Corporation created by special laws or charters . Corporations created by special laws or charters shall be governed primarily by the provisions of the special law or charter creating them or applicable to them, supplemented by the provisions of this Code, insofar as they are applicable. In view of the foregoing provisions of Executive Order 535 and the Corporation Code homeowners association has to be registered with the Home Financing Corporation and not with this Commission. Please be guided accordingly. Very truly yours, (SGD.) JULIO A. SULIT, JR. Associate Commissioner