Atty. Merle Cunanan

November 3, 1993 Atty. Merle Cunanan Officer-in-Charge SEC Cebu Extension Office Cebu City M a d a m : This refers to your letter of October 5, 1993 requesting opinion relative to the letter of the Home Insurance and Guaranty Corporation (HIGC) dated October 1, 1993 returning to your office the corporate documents of Tipolo Urban Poor Dwellers Association, Inc. and complaint filed by its officer claiming that the HIGC has no jurisdiction over that corporation. Rule 1, Sec. 1 (b) of the Implementing Rules and Regulations of Executive O rde r No. 535 defines "homeowners association" as follows: "Homeowners Association is any housing or community association composed primarily of present or future homeowners/awardees/occupants of private or government housing project, subdivision and urban estates organized for the purpose of facilitating the delivery of adequate social and economic services to improve the quality of life of its members." (Emphasis supplied) It can be construed from the above provision that in a "homeowners association" there is already an existing housing project, subdivision or urban estate in which the members are legally occupying or is going to occupy. A perusal of the articles of incorporation of Tipolo Urban Poor Dwellers Association, Inc. on file with the Commission disclosed that the same was registered as an ordinary non-stock association organized to assist the members to acquire housing lots. Nowhere was it clearly shown in the purpose clause of its articles of incorporation that it was organized for the above-defined purpose which is to facilitate the delivery of adequate social and economic services to improve the quality of life of the occupants of a specific housing project, subdivision or urban estate. In view thereof, it is opined that the above mentioned association does not meet the requirements for a "homeowners association " as the term is defined under Executive Order No. 535 which would warrant transfer of its corporate records and /or jurisdiction to the HIGC. cdll Please be advised accordingly. Very truly yours, (SGD.) ROSARIO N. LOPEZ Chairman