Republic of the Philippines

Office of the President

HOUSING AND LAND USE REGULATORY BOARD
Norther Tagalog Region Field Office
3rd Floor Insular Life Building, Dolores
City of San Fernando, Pampanga

The Interim Officers of

GREEN FORBES RESIDENCE PHASE II
HOMEOWNERS ASSOCIATION, INC. et al.,
Complainants,

- versus - HLURB Case No:

The Board of Directors of

GREEN FORBES RESIDENCE
HOA, Inc. et al.,
Respondents,

x-------------------------x

POSITION PAPER

COMPLAINANTS, by themselves, to this Honorable Commission, most respectfully

submits this Position Paper and in support hereof states:

I.
THE PARTIES

1.1 The complainants ERIC FLORENDO, ALEJANDRO TUBAY,

CONCEPCION G. SANTOS, RYANE MACARIO, BIENVENIDO BAUTISTA, GLORIA
T. SAN PEDRO, MARIEFE ADOLFO and MYRNA LIBRANDO, are all of legal age,
Filipinos, herein referred to as the Interim Officers of GREEN FORBES RESIDENCE PH2
HOMEOWNERS’ ASSOCIATION, INC (hereinafter GFRPH2HOA). They may be served
with notices and processes of this Honorable Commission at
_______________________________________________________________;

1.2 The authority of the above-named complainants to represent other bona fide
members of GFRPH2HOA is evidenced by a Special Power of Attorney (SPA)1; and

1.3 The respondents AR. MICHAEL D. LANDICHO (President), DOMINGO

CRUZ JR (Vice-President), JERICK VILLAR, et al. (Directors), are all of legal age and
Filipinos, with office address at the
_______________________________________________________________, where they
may be served with summons and other processes of this Honorable Commission.

II.
STATEMENT OF FACTS

1
See Annex “A”

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2.1 Complainants, are homeowners and residents of Phase II of Green Forbes Residences,
seeking registration of their association before the Housing and Land Use Regulatory Board
(HLURB) regional Office (Region III) in San Fernando, Pampanga;

2.2 Considering that respondents Green Forbes Residences HOA Inc. is the registered
homeowners association in Green Forbes Residence, Complainants, as per HLURB advise,
directed to enter into an agreement with the Respondents, but the latter refused to talk, insisting
that Phase II of Green Forbes Residences is within their territorial jurisdiction and
complainants are bound to their articles and by-laws;

2.3 As per minutes of conference/hearing, a scheduled conciliation conference held, dated

April 26, 2018, before the HLURB assigned conciliator, MAYCIL A. ATANACIO.
Complainants manifested that they wanted to form a new HOA which is Green Forbes
Residence Phase II HOA, Inc. The reason Complainants wanted to form a new HOA, because
Respondents, the current HOA, incurs liabilities and not in a good management as per issuance
of official receipt;

2.4 On the other, Respondents avers that they can stand on their own HOA because they
maintain and liable for the whole Green Forbes Residence Subdivision. Respondents insisted
that they are not amenable to settle the issue and to enter into agreement with the “HOA Phase
2”.

2.5 Considering both parties failed to amicably agree, and no such agreement availed, herein
complainants advised to file a verified complaint.

2.6 Hence, the instant complaint/position paper.

III.
ISSUES

3.1 Whether the respondents violated RA 9904,;

3.2 Whether the respondents violated their By-Laws

3.3 Whether the manner of respondents’ appointment as HOA’s Board of Directors/Officers

are patently void; and

3.4 Whether there are reasonable grounds for the allowance of this Honorable Office the
registration of Green Forbes Residence Ph2 HOA, Inc. without complying the prior agreement
with respondents.

DISCUSSION

THE RESPONDENTS
VIOLATED RA 9904

NON-FILING OF THE FINANCIAL REPORTS

WITH THE HLURB

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 8. Section 17, RA 9904 enumerates the duties of the Treasurer and President or
Chairman of the Board of Directors2 of the Association in relation to financial reports and other
records, to wit:

“Section 17. Financial and Other Records. - The homeowners’ association is

enjoined to observe the following, with regard to its funds, financial and other
records:

(a) The association or its managing agent shall keep financial and other records
sufficiently detailed to enable the association to fully declare to each member
the true statement of its financial status. All financial and other records of the
association including, but not limited to, checks, bank records and invoices, in
whatever form these are kept, are the property of the association. Each
association’s managing agent shall turn over all original books and records to
the association immediately upon termination of the management relationship
with the association, or upon such other demand as is made by the board. An
association’s managing agent is entitled to keep association records. All records
which the managing agent has turned over to the association shall be made
reasonably available for the examination and copying by the managing agent;

(b) All records involving the affairs of the association shall be available for
examination by all owners, holders of mortgages on the lots, and their
respective authorized agents upon reasonable advanced notice, during normal
working hours at the office of the association: Provided, That holders of
mortgages on lots may have access to the information about the property held
in mortgage with the written consent of the registered owner;

(c) A financial statement of the association shall be prepared annually by an

auditor, the treasurer and/or an independent certified public accountant within
ninety (90) days from the end of the accounting period to be posted in the
association office, bulletin boards, or other conspicuous places within the
subdivision/village, and to be submitted to the HLURB; and

(d) The funds of the association shall be kept in accounts in the name of the
association and shall not be joined with the funds of any other association, or
any person responsible for the custody of such funds”

9. In relation to the above-cited provision of RA 9904, Section 4, Article IX of the

GFR-HOA, Inc. By-Laws provides for the fiscal period for the preparation of the financial
report. The cited provision reads:

“The fiscal year of the Association shall begin on the first day of January and
shall end on the 31st of December of each year xxx.”

10. Upon inquiry from the HLURB on June 2019, only the cash flow for 2013 was
filed. No financial statement was filed by the Treasurer and President or the Chairman of the
Board from fiscal year 2014 until the present year in blatant disregard of their duties as officers
of the Association. Belated compliance by the respondents with the obligation to file the
financial statements with the HLURB will not cure their prior violation. Copies of the GFR-
HOA, Inc. By-Laws3 and the certificate from HULRB Tagalog Region Field
Office4 are hereto made an integral part of this Position Paper.

2
Reportorial Requirements., hlurb.gov.ph/homeowners-association/., accessed last 22 December 2014.
3
Annex B
4
Annex C
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 11. This is a wanton violation by the respondents of their sworn duty and
obligation to fully declare to each member the true statement of its financial status.

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