RIV MARTIN V TOLENTINO ET AL FINAL CJSF

Republic of the Philippines
DEPARTMENT OF HUMAN SETTLEMENT

AND URBAN DEVELOPMENT
HUMAN SETTLEMENTS ADJUDICATION
COMMISSION
REGION IV-A
Units 207-208, 2nd Floor, Dencris Business Center,
National Highway, Barangay Halang, Calamba City
RONALDO MARTIN,
Complainant,
-versus- HLURB CASE NO. RIV-

030618-0939
LUCINA A. TOLENTINO,
FORTUNATA B. BANTILING,
JENALYN Z. MEJAS,
SHARON SALVODOR AND
ATTY. SOLEDAD C. SUGATAN
Respondents.
x--------------------------------------x
DECISION
This resolves the intra-association dispute against herein
respondents for violations of R.A. No. 9904, otherwise known as
the Magna Carta for Homeowners’ Association and violation of its
Implementing Rules and Regulations.
Complainant is a homeowner of Fidela Herrera Subdivision

(FHS), M.M. Santol, Tanza, Cavite while respondents are the
Page 1 of 11
officers of Fidela Herrera Neighborhood Association Inc. (FHNAI)
and its counsel Atty. Soledad Sugatan.
Complainant claims that the association is not yet registered

with the Homeowners Association Community and Development
Division Department of Human Settlements and Urban
Development (HOACDD-DHSUD). Despite non-registration, the
HOA was able to open a bank account under the name of the
association. Respondent Lucila Tolentino manages the day-to-day
affairs of the subdivision.
Complainant further assails the failure to hold elections for

the directors of the HOA. He claims that the respondents
prevented the homeowners from participating in elections from
year 2010 up to present. Thus, they are perpetually in hold over
capacity.
On 10 August 2015, members of the FHNAI wrote a letter to

complainant Tolentino to request for a conduct of election.
However, she refused to grant their request.
On 23 August 2015, complainant alleged that respondent

Tolentino called for a meeting together with Atty. Sugatan. This
meeting will be about the conduct of election. Complainant
manifested that the conduct of election was canceled due to the
insistence of Tolentino that she be retained as FHNAI President.
She claims she is the owner/developer of the subdivision.
Complainant explained that the original developer of FHS

was Community Association Habitat Foundation, Inc. (CAHAFI).
However, there was failure and inability of CAHAFI to pay the
balance amounting to Php 2,361,619.00 to Numerania Herrera
Page 2 of 11
Irungin-Hines, the original owner of a parcel of land where the
subdivision was established. On 24 June 2010, complainant
Tolentino, as President of CAHAFI, Santol I HOA, wrote a letter to
Ms. Silvina Bautista, the authorized agent of Iruguin-Hines, to
manifest her intent to redeem the property as assignees of the lot.
On 2 July 2010, Atty. Sugatan and Bautista and Iruguin-Hines
accepted the offer. Thereafter, a deed of sale (DOS) was executed
between FHNAI and Bautista. CAHAFI was re-established as
FHNAI.
The sale was notarized by Atty. Sugatan on 27 April 2011. The

DOS was registered in the Registry of Deeds for the Province of
Cavite. Later a TCT was issued on 26 January 2015 under the name
of FHNAI.
Complainant reiterated that in order to pay the balance,

FHNAI through its officers collected Php11,000.00 from each
lot owners as a contribution. The official receipts were issued by
Mrs. Tolentino without financial records.
Complainant alleged that FHNAI officers lead by Bautista

later mortgaged the property to Mr. Lope Vega and Mrs. Amelita
Vega amounting to P2 million. Respondents claims the said
amount was already paid, but when asked by complainant,
respondents refused to issue a certified true copy of the release of
mortgage.
Complainant also assails respondents’ contract to sell of

several lots without the approval from lot owners and members of
FHNAI. She likewise claims respondents also entered into
contracts with different contractors without approval from the
Page 3 of 11
FHNAI members. Complainant adds that respondents did not
secure an authority or license to sell from DHSUD.
Finally, complainant asserted that the funds of the

association were deposited to the personal account of Mrs.
Tolentino at Metrobank, Tanza Cavite branch.
On 12 March 2018, this office issued a summons to the

parties.
Respondents filed their Answer and averred that they also

want to conduct elections in FHNAI. They want the complaint
dismissed as complainant is allegedly guilty of forum shopping for
filing a criminal case for estafa case against the same respondents.
Respondent Tolentino, on the other hand, manifested that

she is also a victim of CAHAFI as she is also a buyer of lot on the
said subdivision. She claimed that she is the one who initiated the
registration of FHNAI to the Securities and Exchange Commission.
She asserted that she is acting on behalf of the homeowners to have
their individual title. The alleged P11, 000 contributions are with
the consent of the homeowners during their general meeting. Mrs.
Tolentino admitted that the funds are being deposited to her
personal account but she claims this only happens if there is no
bank available in the place where payments will be made. She
claimed that she issues receipts thereafter. Finally, she also moved
for the dismissal of the case for forum shopping, referring also to
the estafa case.
Respondents Bantiling and Mejas generally denied the

allegations in the complaint. They explained they only helped Mrs.
Tolentino to facilitate the transfer of individual title.
Page 4 of 11
During the scheduled mandatory conference on 26 April
2021, the parties did not arrive at a settlement. Thus, this Office
directed them to file their position paper and draft decision
pursuant to the En Banc Resolution No. 08, Series of 2021 of
Human Settlements Adjudication Commission fifteen (15) days
from date of mandatory conference.
After requisite proceedings, we now resolve.
ISSUES:
The issues for resolution are:
1. Whether or not FHNAI should be registered with the

HOACDD-DHSUD.
2. Whether or not it is proper to conduct elections for Board
members of the FHNAI;
3. Whether or not the respondents violated RA 9902 when
they:
a. Failed to conduct elections for almost 11 years
b. Engaged with contractors without authority from
members
c. Deposited HOA funds in a personal, not a HOA
account
d. Failed to submit reportorial requirements,
specifically financial reports
The instant case should be resolved by conducting an

election in accordance with the FHNAI association by-laws.
Page 5 of 11
Upon perusal of the records, it shows that the FHNAI was
duly registered by the Securities and Exchange Commission. The
incorporators stated in the documents bears the name of the
respondents.
Under Section1 of its by-laws, it states that:
“Annual Meetings: The annual meetings of the members

shall be held at the principal office of the association
December 31 of each year. xxx”
Here, we find it necessary to conduct the election since

respondents hold their position for more than a year as indicated
in the by-laws. Respondents hold office from year 2010 up to
present without even conducting an election. They performed their
functions for more one (1) year contrary to what was directed by
their association by-laws.
Second, the respondents are only confined to act within the

ambit of their by-laws. They are obligated to carry their individual
functions as officer. They will perform their duties as mandated by
the laws and regulations under Republic Act 9904.
Here, respondent Tolentino as President of CAHAFI,

redeemed the property on 24 June 2010. It was accepted by Atty.
Sugatan on 02 July 2010. There is a deed of absolute sale executed
and duly signed by the parties dated 27 April 2011.
Page 6 of 11
The DOS provides that the sale was entered into by Seller,
Numeriana H. Iruguin-Hines, represented by Silvina H. Bautista
and Buyer, Fidela Herrera Homeowners Association, Inc.
represented by its President Lucina Tolentino,Vice-President
Fortunata B. Bantiling and Treasurer Jenalyn Mejas.
It appears from the record of the case that the properties

inside the subdivision were bought by the FHNAI and not by the
respondents in their personal capacity.
Under the R.A 9904, Section 12. Duties and

Responsibilities of the Board. In addition to the duties and
responsibilities stated in the bylaws of the association, the board
shall have the following duties and responsibilities:
(a) Regularly maintain an accounting system using

generally accepted accounting principles, and keep
books of accounts, which shall be open for
inspection to any homeowner and duly authorized
representatives of government agencies upon
request, during reasonable hours, on business days;
(b) Collect the fees, dues and assessments that may

be provided for in the bylaws and approved by a
majority of the members;
(c) Collect reasonable charges for assessments, and

after due notice and hearing by the board in
accordance with the procedures as provided in the
bylaws, and rules and regulations adopted by the
board, charge reasonable fines for late payments
Page 7 of 11
and for violation of the bylaws, rules, and
regulations of the association, in accordance with a
previously established schedule adopted by the
board and furnished to the homeowners;
(d) Propose measures to raise funds and the

utilization of such funds and submit the same for
consideration of the members of the association;
(e) Undergo a free orientation by the HLURB or

any other competent agency deputized by it on how
to conduct meetings, preparation of minutes,
handling of accounts, laws and pertinent rules and
regulations within thirty (30) days after election or
appointment;
(f) Discharge the duties and responsibilities

provided for in the association’s bylaws; and
(g) Exercise such other powers as may be necessary

and proper in accordance with this Act and for the
accomplishment of the purposes for which the
association was organized.
The board shall act in all instances on behalf

of the association, except to amend the articles of
incorporation, to dissolve the association, to elect
members of the board or to determine the
qualifications, powers and duties, or terms of office
of the board, and other instances that require the
vote or approval of the members themselves. In the
Page 8 of 11
performance of their duties, the officers and
members of the board shall exercise the degree of
care and loyalty required by such position.
Thus, respondents are not acting under the cloak of the

above provision. The respondents’ action to collect funds from the
homeowners without approval to do so is a violation of law. In fact,
there is no evidence to prove that such financial statement was
submitted to DHSUD as for its reportorial requirement.
Hence, the dispute between the parties will be resolved by

scheduling the delayed regular elections.
Further, there is a need to elect new BOD of FHNAI to

facilitate the day-to-day affairs of the association which includes
facilitating the individual title of homeowners’ association.
Third, there is a need to re-apply for a Certificate of

Registration of FHNAI with HOACDD-DHSUD Calamba, Laguna
as mandated by Section 4 of R.A 9904 which states:
“Section 4. Registration with the HLURB. - Every

association of homeowners shall be required to register with the
HLURB. This registration shall serve to grant juridical
personality to all such associations that have not previously
acquired the same by operation of the General Corporation Law
or by any other general law.
xxx
Page 9 of 11
The existence of associations previously registered with the
Home Insurance Guarantee Corporation or the SEC shall be
respected, and the said associations shall not be charged a
penalty when they register with the HLURB after this
Act takes effect.”
WHEREFORE, the parties are ordered to hold elections on

or before 28th day of February 2022.
Respondents are required to report to the Homeowners

Association and Community Development Division (HOACDD) of
the Department of Human Settlements and Urban development
(DHSUD) in Calamba, Laguna strictly within ten (10) days from
receipt of this decision to make proper arrangement for the
conduct of the elections on or before 28th day of February 2022.
The HOACDD-DHSUD is directed to supervise the conduct

of elections and guide the parties based on the DHSUD
Department Circular No. 2020-003 and its Addendum
Department Circular No. 2021-001.1
Respondents are likewise directed to re-apply for the

Certificate of Registration of FHNAI with the HOACDD-DHSUD
Calamba, Laguna.
SO ORDERED.
City of San Fernando, Pampanga. 16 November 2021.
1
Addendum to Department Circular No. 2020-03 dated November 20, 2020: Authorizing and
providing additional alternative modes of conducting meetings and voting for homeowners’
association under extraordinary circumstances, signed by DHSUD Secretary Eduardo Del
Rosario
Page 10 of 11
Atty. JOSELITO MELCHOR
Chief Regional Adjudicator
*maycil//http12785
Page 11 of 11

RIV MARTIN V TOLENTINO ET AL FINAL CJSF

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

RIV MARTIN V TOLENTINO ET AL FINAL CJSF

Uploaded by

Copyright:

Available Formats

Republic of the Philippines

DEPARTMENT OF HUMAN SETTLEMENT

-versus- HLURB CASE NO. RIV-

Complainant is a homeowner of Fidela Herrera Subdivision

Complainant claims that the association is not yet registered

Complainant further assails the failure to hold elections for

On 10 August 2015, members of the FHNAI wrote a letter to

On 23 August 2015, complainant alleged that respondent

Complainant explained that the original developer of FHS

The sale was notarized by Atty. Sugatan on 27 April 2011. The

Complainant reiterated that in order to pay the balance,

Complainant alleged that FHNAI officers lead by Bautista

Complainant also assails respondents’ contract to sell of

Finally, complainant asserted that the funds of the

On 12 March 2018, this office issued a summons to the

Respondents filed their Answer and averred that they also

Respondent Tolentino, on the other hand, manifested that

Respondents Bantiling and Mejas generally denied the

After requisite proceedings, we now resolve.

The issues for resolution are:

1. Whether or not FHNAI should be registered with the

The instant case should be resolved by conducting an

Under Section1 of its by-laws, it states that:

“Annual Meetings: The annual meetings of the members

Here, we find it necessary to conduct the election since

Second, the respondents are only confined to act within the

Here, respondent Tolentino as President of CAHAFI,

It appears from the record of the case that the properties

Under the R.A 9904, Section 12. Duties and

(a) Regularly maintain an accounting system using

(b) Collect the fees, dues and assessments that may

(c) Collect reasonable charges for assessments, and

(d) Propose measures to raise funds and the

(e) Undergo a free orientation by the HLURB or

(f) Discharge the duties and responsibilities

(g) Exercise such other powers as may be necessary

The board shall act in all instances on behalf

Thus, respondents are not acting under the cloak of the

Hence, the dispute between the parties will be resolved by

Further, there is a need to elect new BOD of FHNAI to

Third, there is a need to re-apply for a Certificate of

“Section 4. Registration with the HLURB. - Every

WHEREFORE, the parties are ordered to hold elections on

Respondents are required to report to the Homeowners

The HOACDD-DHSUD is directed to supervise the conduct

Respondents are likewise directed to re-apply for the

City of San Fernando, Pampanga. 16 November 2021.

You might also like