Legal Existence of SVREHAI
and its continuing challenges
The Sun Valley Residential Estates Homeowners Association Inc. (SVREHAI for brevity) was registered on January 6, 2004 with the housing and land use regulatory board under certificate of registration no. 09588.
Its initial Officers and Members of the Board of Directors were employees/business associates of the Developer in accordance with Section 30 of Presidential Decree No. 357 (Regulating the Sale of Subdivision Lots and Condominiums, Providing Penalties for Violations thereof).
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 buyers and residents of the projects for the purpose of promoting and protecting their mutual interest and assist in their community development. (underscoring supplied).
***Articles of Incorporation and By-Laws
The territorial jurisdiction of SVREHAI at the time of its registration was: (a) the entire SUN VALLEY RESIDENTIAL ESTATES SUBDIVISION, (b) Phases I & II of the subdivision, (c) unsubdivided parcel of land evidenced by a vicinity map attached to the application.
*** Certification of Corporate Secretary Alberto F. Tronio Jr. dated December 17, 2003.
Since the registration of SVREHAI in 2004 until May 2016, its affairs were run by the employees of the developer.
Sometime in 2016 complaints and questions among homeowners cropped up due to the sudden increase in the monthly association dues and lack of transparency in the expenditures of the monthly association dues. A Show Cause Order was issued by the DHSUD on account of its failure to submit financial reports and other reportorial requirements since 2005 to 2015.
*** Show Cause Order
On March 10, 2016 the sitting oficers and board directors of SVREHAI namely, Jose Sorreda, Evangeline Domingo, Bernadette Fajardo, Teresita Caballero, and Virginia Barrios passed a resolution calling for the amendment of the articles of incorporation and by-laws of SVREHAI to cover phases 1 to 6 of the subdivision and election of new officers and Board of Directors in order to be attuned to the Magna Carta for Homeowners and Homeowners Association (RA 9904) due to the expansion of the subdivision and growth in the number of the residents.
*** March 10, 2016 Board Resolution by Jose Sorreda et. al.
An election was held on May 29, 2016. Persuant to the board resolution dated March 10, 2016, nine were elected as members of the Board of Directors and officers. They were Marcelo Ayes, Adrian Araneta, Alejandro Tan, Deborah Enriquez, Vicente Angeles, Arnel Cruz, Ernesto Iglesia, Celes Ulep, and Gina Sahagun.
***Election Report Submitted to the DHSUD NCR Franchising Unit.
Despite the complaint filed by Jose Sorreda and company, the election of Marcelo Ayes, Adrian Araneta, Deborah Enriquez, Alejandro Tan, and Vicente Angeles was affirmed by DHSUD Arbiter Atty. Ma, Lorina Rigor, DHSUD Board of Commissioners, Court of Appeals and the Supreme Court.
***Decision of Atty. Ma. Lorina Rigo
***Decision of DHSUD Board of Commissioners
***Decision of the Court of Appeal
***Decision of the Supreme Court
Due to the lack of development in Sun Valley Residential Estates Subdivision, Marcelo Ayes et. al. filed a complaint for specific performance of obligations against Sun Valley Golf and Development Inc., Johnson Ong and Carolina Dela Cruz. DHSUD. Arbiter Atty. Jose Melchor rendered a decision imposing a fine of ten thousand pesos on each of the respondents for their failure to complete the development and ordered them to immediately complete the development in Sun Valley Subdivision. The decision became final and now awaits full implementation of a writ of execution.
***Decision of DHSUD. Arbiter Atty. Jose Melchor
Marcelo Ayes, Deborah Enriquez, and Alejandro Tan filed a complaint for the cancellation of the certificate of registration of Sun Valley Residentian Estate Phases 3, 4, 5, 6, Homeowners Association Inc. before the DHSUD. It was registered despite the existence of SVREHAI in violation of existing laws. The DHSUD Board of Commissioners promulgated a decision dated May 29, 2018 revoking its certificate of registration. And the court of appeals in its decision dated October 21, 2020 affirmed the decision of the DHSUD Board of Commisioners.
*** Decision dated May 29, 2018 of DHSUD Board of Commissioners
*** Decision dated October 21, 2020 of the Court of Appeals
After a general assembly has been called and notices were sent, an election for the new officers and Board of Directors of SVREHAI was held on May 18, 2019. The following were elected as officers and Board of Directors namely Helen Amante, Ernesto Iglesia, Alejandro Tan, Adrian Araneta, Nerio Me Resuma, Armilyn Buijs, Yolanda Ancajas-Sanfelix, Jose Dan Dauz, and Atty. Robert Cauilan.
*** General Report of Election submitted to DHSUD
The election of Helen Amante and the other officers were nullified on grounds of technicality (lack of notice & quorum) based on two similar complaints for nullification of election with prayer for issuance of Cease and Desist order before the DHSUD. A special election was ordered to be held. Meantime, Helen Amante and the other officers continue to perform their duties in as much as the prayer for issuance of Cease and Desist order was not granted.
*** Two separate Decisions of DHSUD Arbiter Atty. Anne Legarto.
Helen Amante and the other officers did not appeal the decision but demanded for the immediate conduct of the special election. However , this has not been acted upon yet as of this time.
*** Manifestation with Very Urgent Motion to Form Election Committee 2nd & 3rd Motions to Form Election Committee and Conduct of Election.
Every Homeowner & lot owner must participate in the forth coming special election to establish a rightful Homeowners Association that will serve, protect and advance the general wellfare and interest of Sun Valley community.
*** Section 2 of the Implementing Rules and Regulations of Republic Act No. 9904 Otherwise known as The Magna Carta for Homeowners and Homeowners Associations.
*** Sections 7 & 8of the same Republic Act No. 9904(Rights and Duties of Homeowners)
*** Rule 3 of the Implementing Rules and Regulations of Republic Act No. 9904 Otherwise known as The Magna Carta for Homeowners and Homeowners Associations.