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Hi, I am a condo unit owner of a DMCI project in Pasig. Right now, unit owners are having trouble with the newly implemented guest parking policy because of overcharging (50 pesos per hour + overnight rate of 150 at 10PM onwards).

The problem is, we do not have a homeowners' association who can vote for or against a policy. We have what you call a property management office (PMO) who manages everything (admin, policies, security, etc.).

I checked the homeowners' handbook that DMCI gave us upon turnover and nothing about homeowners' association was mentioned. Instead, only PMO gets to decide and implement things without even consulting the unit owners.

Also, DMCI is not providing us with any financial report for the earnings (from fines, parking fees, etc.) and expenditures of PMO. Lastly, they are not issuing official receipts for our monthly association dues payment.

I would like to know if what they're doing is legal? Also an advice on how we can fight back against a certain policy would be very very helpful. Lastly, there's a recently approved Magna Carta for homeowners, I'd like to know how this RA 9904 can help us.

www.senate.gov.ph/republic_acts/ra%209904.pdf

Thanks!

Under the Condo Law, owners own their unit as declared in their individual CCT, and a proportionate share of the common areas. The organization which owns the common areas and manages the project is the condominium corporation. Each unit owner is a "stockholder" with shareholding proportionate to the size of their condo unit. In a condo project, there is no homeowner's association; what you have is a corporate structure headed by a Board of Directors elected by the unit owners.

Now in most cases where the project is still new, most developers are the majority shareholders of the condo corporation and almost completely control the Board of Directors. This is because most unit buyers have not yet fully paid and title remains with the developer, and they take advantage by assigning themselves or an affiliate to handle the property management, in your case, what you call the PMO.

Unit buyers/occupants will definitely be alienated from the decision making processes because of the corporate structure, but this does not make it illegal. I would suggest that you find out who are the members of the board of directors, particularly the president, when the last election was held and when it is scheduled again. You should band with other like-minded unit owners and lobby/dialogue with the PMO and influence their managerial decisions. You can also get your representatives elected into the board later on.

You can challenge their inability to issue official receipts, and ask them to explain (suggest through a letter) why they are unable to do so.

wow thank you so much attyleolop! This is really helpful =)

Hi attyleolop,

I have a follow up question regarding the Condo Law...

You said that condo's do not have HMA, instead, they have PMO. The question is, isn't it the condo's responsibility to encourage or facilitate the establishment of HMA?
Please see below:

PRESIDENTIAL DECREE NO. 957
REGULATING THE SALE OF SUBDIVISION LOTS AND CONDOMINIUMS, PROVIDING PENALTIES FOR VIOLATIONS THEREOF

Sec. 30. Organization of Homeowners Association. - The owner or developer of a subdivision project or condominium project shall initiate the organization of a homeowners association among the buyers and residents of the projects for the purpose of promoting and protecting their mutual interest and assist in their community development.

The provision of PD 957 should be read in harmony with Sec. 10 of RA 4726 (quoted below) which states that a management body will manage the condo project. It is this body which serves the function of the Homeowner's Association in a condo set-up as opposed to the regular Homeowner's Association in a subdivision.

I also did not state that the PMO replaces the HA. What I stated is that the management body of a newly organized condo is usually dominated by representatives of the developer and they assign, as a corporate decision, the management of the condo to a third party, in this case, the PMO.



Sec. 10. Whenever the common areas in a condominium project are held by a condominium corporation, such corporation shall constitute the management body of the project. The corporate purposes of such a corporation shall be limited to the holding of the common areas; either the ownership of any other interest in real property recognized by the law, to the management of the project, and to such other purposes as maybe necessary, incidental or convenient to the accomplishment of said purposes. The articles of incorporation or by laws of the corporation shall not contain any provision contrary to or inconsistent with the provision of this Act, the enabling or master deed, or the declaration of restrictions of the project, membership in a condominium corporation regarding of whether it is stock or non-stock corporation, shall not be transferable separately from the condominium unit of which it is an appurtenance. When a member or a stockholder ceases to own a unit in the project in which the condominium corporation owns or holds the common area, he shall automatically cease to be a member or stockholder of the condominium corporation.

Thank you so much for your help, I really appreciate it. =)