Atty. Benjamin S. Benito

July 13, 1989 Atty. Benjamin S. Benito Benjamin S. Benito & Associates NICSON Bldg., 488 Araneta Ave., cor. Kapiligan St., Quezon City Sir : This refers to your letter, dated May 31, 1989, inquiring whether the members of the United Hills Homeowners Association, Inc ., a non-stock corporation, can vote by proxy in the annual elections of its directors even in the absence of a provision in its by-laws authorizing proxy voting. In connection therewith, please be advised that a verification from the Records Section of this Commission disclosed that no association under said name appears to have been registered with the Commission. However, there is an association registered designated as United Hills Association, Inc ., whose corporate records were forwarded to the Home Financing Corporation on April 29, 1983 in view of the transfer of jurisdiction over "homeowners association" from the Securities and Exchange Commission to the Home Financing Corporation pursuant to Executive Order No. 535, dated May 3, 1979. Under the said Executive Order the powers, authorities and responsibilities of the Securities and Exchange Commission with respect to homeowners associations, including the registration thereof, are now vested with the Home Financing Corporation (HFC). The Executive Order provides, thus: "1 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 associations 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 associations, the provision of Art. 1459, as amended by PD 902-A to the contrary notwithstanding. b) To regulate and supervise the activities and operations of all homeowners associations registered in accordance therewith . (emphasis supplied). It appearing that the regulation and supervision of the activities and operation of homeowners associations are well within the jurisdiction of the Home Financing Corporation under Executive Order No. 535, we regret to inform you that we cannot comment on the issue raised in your letter. It is therefore suggested that you communicate directly with Home Financing Corporation. Please be advised accordingly. Very truly yours, (SGD.) RODOLFO L. SAMARISTA Associate Commissioner