Atty. Chuchi S.M. Tan

December 6, 1991 Atty. Chuchi S.M. Tan Public Attorney's Office Department of Justice Ground Floor, Department of Trade Bldg. Capitol Compound, Pasig, Metro Manila S i r : This refers to your letter dated November 18, 1991 requesting opinion on the query posed therein. As stated, Sitio Sto. Nio de Pasig Neighborhood Association, Inc. had filed its application for registration of its Articles of Incorporation including its by-laws on June 13, 1986 and was approved on July 3, 1986. Before January 18, 1990, there was a resolution by the board that delinquent members can only vote upon payment of updated dues. There were members who disregarded the board resolution and dissociated themselves from the Association. These members formed a new Sitio Sto. Nio de Pasig Homeowners Association and filed an amendment to Article III of the By-Laws of Sitio Sto. Nio de Pasig Neighborhood Association, Inc. increasing the monthly due from P2.00 to P5.00. No other legal actions were taken by the members of the Sto. Nio de Pasig Homeowners Association who disassociated from Sitio Sto. Nio de Pasig Neighborhood Association, Inc. against the latter questioning any violation of the by-laws if ever there was any. Your query is, can the members of Sitio Sto. Nio de Pasig Homeowners Association by filing articles of incorporation now claim that it is the same as that of Sitio Sto. Nio de Pasig Neighborhood Association? A perusal of the articles of incorporation of Sitio Sto. Nio de Pasig Neighborhood Association, Inc. on file with the Commission disclosed that the same was registered as an ordinary non-stock corporation. Should some members of said association desire to put up another association, a "homeowners association", the same shall be registered pursuant to the provisions of Executive Order No. 535, Series of 1979. Under said Executive Order, the registration of "homeowners association" is now vested with the Home Insurance and Guaranty Corporation (formerly Home Financing Corporation). In such event, the two entities shall have a separate and distinct personality. Take note, however, that the Home Insurance and Guaranty Corporation, in a letter dated July 24, 1990, xerox copy of which is herewith attached, advised this Commission that " neighborhood associations " which are the "legal owners or present or future awardees and/or actual occupants of the housing units in a private or government housing project, subdivision or urban estate, or ii) beneficiaries of the Community Mortgage Program (CPM), or iii) members of any association organized for the primary purpose of homeownership , who have met all the qualifications and none of the disqualifications set forth by the Articles of Incorporation, By-Laws or rules and regulations of such housing projects, subdivision housing estate, or associations." are considered within the meaning of " homeowners association " as contemplated by Executive Order No. 535. In the case of Sitio Sto. Nio de Pasig Neighborhood Association, Inc. there is no clear indication that it was organized for the above-purpose. It can be construed from the purposes of the corporation as reflected in its articles of incorporation that it is more of an ordinary non-stock association. Hence, we have to treat it as such. If the members thereof intends to convert the said association as a "homeowners association", you may communicate directly with the Office of the Home Insurance and Guaranty Corporation for further information on how to go about it. Please be advised accordingly. Very truly yours, (SGD.) ROSARIO N. LOPEZ Chairman