How LEHOA was "legalized" to be controlled by the real-estate developer.

This is a follow up article on the comparison of LEHOA By-laws and the laws for the homeowners association stated in PD957 and RA9904 (previous article here).

From the previous article you may have already saw how the by-laws of LEHOA have contradicted with the laws that protect a homeowners association from the real-estate developer. On this article, let us pinpoint why even if the existence of the LEHOA by-laws contradicting RA9904 and PD957, it was still made to be "legal".




There are several documents provided by Property Company of Friends, Inc. (Profriends) that made its way before the by-law was legalized.

The following are:

1. Master Deed with Declaration of Restriction of Lancaster Estates by Profriends
2. The Articles of Incorporation of Lancaster Estates Homeowners Association Inc. (LEHOA)
3. The LEHOA By-laws.

1. Master Deed with Declaration of Restriction of Lancaster Estates

Section 10-13 of the Master Deed states the power of the real-estate developer (ProFriends) over the homeowners association.

The following are the excerpts:

Section 10a. The DECLARANT, through its nominees, shall initially form, organize and incorporate the Lancaster Estates Homeowners Association, Inc., a non-stock, non-profit association organized in accordance with and for purposes as herein provided. The nominees of the DECLARANT shall in the interim serve as the members of the Board of Directors. There shall be no other association similar organization to be formed by the members of the Association. - Master Deed with Declaration of Restriction of Lancaster Estates

Section 10a of the master deed may seem to confer with the law on PD957 where it says:

Section 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. - PD957 - See more at: http://lancasterresidences.blogspot.com/2013/05/lehoa-by-laws-and-pd957-and-ra9904.html#sthash.iBWaS4W9.dpuf

Section 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 - PD957

However, the law according to PD957 only states that the developer can only help on initiating the homeowners association among the buyers and residents. But in the Master Deed of ProFriends to which the DECLARANT is Property Company of Friends, Inc., may have gone around the law to ensure that they can create a homeowners association to which they can handle and to which they can create its by-laws in contrast to the interests of the homeowners.

The Declarant of the Master Deed is no other else but ProFriends

2. Articles of Incorporation of LEHOA
Because of the master deed that was authored no other else but by ProFriends themselves who is the real-estate developer, they paved their own way to create a homeowners association last September 2009. This is in the absence of real residents and an election participated by the residents to which the only project where there are residents during that time is Lancaster Residences Phase 1 and some in Phase 2.

Let us not forget that Section 30 of PD957 only requires the real-estate developer to assist the homeowners and residents to put up a homeowners association and not to govern it. However, the signatories of the incorporation of LEHOA are quite dubious.

LEHOA Board of Directors

The image above are our LEHOA Board of Directors as mentioned on the Articles of Incorporation of LEHOA. To which, according to the document, they all reside at Barangay Alapan II-B. Take note that Lancaster Residences is at Alapan II-A. Also take note of the 2nd person in the list. That person is the Project Director of the Lancaster Estates Project of ProFriends... an employee of the real-estate developer. Proven on the signed Master Deed document of ProFriends.

And just in case we thought that the addresses are only typographical errors... Take note on the image below on where they have issued their cedula or community tax certificate:

Cedula of LEHOA Board of Directors

So, are they our neighbors?

Thus one can say that our incumbent LEHOA directors are:

1. They are unknown to us.
2. They are not from around and are not residents of Lancaster Residences.
3. They never were elected by the homeowners to be the first board of directors of LEHOA
4. Neither of these people affixed their signatures in any memo by LEHOA given to us for the past years.
5. Never did these people consulted anyone from the residents of Lancaster Residences during their incorporation last Septermber 2009 for the by-laws they drafted which is in violation of Section 15 RA9904 which states:

Sec. 15. Association Bylaws. - The bylaws of the association shall be adopted by a simple majority of the members of the association. Consistent with the provisions of this Act. - RA9904

Thus, these two documents (Master Deed of Lancaster Estates, and LEHOA Articles of Incorporation) gave birth to the LEHOA By-laws to which is the basis of our association dues and many other anti-homeowners policies have been drafted. And to which most of its tenets contradicts with PD957 and the Magna Carta of the Homeowners Association RA9904. (see related article)

And what government institution approved LEHOA's incorporation?

Conclusion

It is saddening to know that public documents and policies were created to make a master plan to have an almost indefinite grip to its own customers (the residents of Lancaster Residences). And it exists even if it contradicts with the laws to protect homeowners associations. Worse, the government agency sworn to protect the interest of the people have approved it without verifying who the signatories of the HOA incorporation are.

Still the law remains which makes any contract null and void if it contradicts with it.



Solution (as it must be re-stated and emphasized):

In the name of community empowerment, uphold your rights as homeowners of Lancaster Residences. Do not allow the developer to handle the homeowners association because the mandate of a homeowners association is to protect and nurture the community via a non-profit organization to which is only handled by homeowners. The resistance of the developer holding LEHOA to provide financial statements even if asked by paying members is a good reason enough that there is a probability that the dues you pay may be going somewhere else.

RA9904 provides specific instructions on how to unseat the board of directors and modify the bylaws with a simple majority of its members excluding the directors. Use this power given by law to protect your rights and of your family in years to come. Through a simple majority of Lancaster Residences, you can oust the incumbent, non-resident board of directors of the association. From there, elect your board of directors and draft a new by-laws with consultation and approval of majority of our neighbors. After all, this is OUR COMMUNITY.

To our fellow neighbors of Lancaster Residences:

Through this article, you have already seen how Property Company of Friends, Inc. (ProFriends) manipulated, organized, and planned ahead so that they can control the homeowners association for a very long time (until all the units are sold throughout the whole Lancaster New City project). Using their own employees, the Board of Directors of LEHOA, they have deceived us and continue to press the deception within us.

For a one-time P3000 of registration fees to HLURB, they were given a go signal to collect an amount of up to P1,374,940 per month from HOA dues (reference) without knowing where your money goes to. Because they continue to hesitate on not giving a transparent financial statement and still push to have the HOA be handled by themselves and not by 100% elected homeowners. Would you allow this corruption to continue amongst ourselves?

To HLURB:

It is a right time  to uphold the values to which your institution has been created: which is to ensure to promulgate and enforce land use and housing regulations which sustain a balance among economic advancement, social justice, and environmental protection for the equitable distribution and enjoyment of development benefits. There is still enough time to correct the wrong. Make the heads behind this grand master plan roll to justice and help us have a fair election to which the result is to handle our homeowners association as directed by RA9904.


Related Articles:

• Homeowners Dues Illegally Being Collected by the Developer
  This article discusses the legality of HOA dues collection in Lancaster Residences by LEHOA
• LEHOA Bylaws and PD957 and RA9904
  The article explains PD957 and RA9904 which are the tenets of law for homeowners associations and compares the bylaws promulgated by LEHOA
• Estimated Collections of LEHOA
  This article gives an overview of the potential collection generation of LEHOA in comparison with other subdivisions.

Section 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. - PD957 - See more at: http://lancasterresidences.blogspot.com/2013/05/lehoa-by-laws-and-pd957-and-ra9904.html#sthash.iBWaS4W9.dpuf

Section 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. - PD957 - See more at: http://lancasterresidences.blogspot.com/2013/05/lehoa-by-laws-and-pd957-and-ra9904.html#sthash.iBWaS4W9.dpuf