DHSUD HOACD Form No.

2021-002B
Non-Regular

BY-LAWS

OF

______________________________________________________

ARTICLE I
DECLARATION OF PURPOSE

The purposes of this Association are those set forth in its Articles of Incorporation. Its
primary concern is to facilitate and assist the residents-members to acquire the lot they occupy
and to facilitate the delivery of adequate social services and economic activities for the
association to improve the quality of life and well-being of its members.

ARTICLE II
LOCATION

The principal office of ___________________________________________ shall be

located at ____________________________________________________________________.

ARTICLE III
MEMBERSHIP

Section 1. Members. All lessees, awardees, occupants, or informal settlers intending as

beneficiaries of ownership rights over their leased or occupied lots located at
_____________________________________ covered by Transfer Certificate of Title No.
_______________ shall be qualified or eligible to be a member of the association.

Section 2. Application for Membership. All applications for membership shall be

subject to the approval of the Board of Trustees/Directors (hereinafter referred to as the “Board”).
Membership shall become effective upon approval by the Board of the application, and upon
payment of the membership fee.

Section 3. Termination of Membership. Membership in the association is terminated

once the member ceases to be a homeowner.

Section 4. Rights of a member. A member shall have the following rights:

a. Avail of and enjoy all basic community services and the use of common areas and
facilities, Provided, the member is in good standing;

b. Inspect association books and records during office hours and to be provided, upon
request, with a copy of annual reports, including financial statements, at the
member’s own expense;

c. Participate, vote and be eligible for any elective or appointive office of the
association subject to the qualifications as provided for in this Bylaws;

d. Participate in association meetings, elections and referenda, Provided, the member is

in good standing;
 e. Demand and promptly receive the refund of deposits such as construction bonds,
required by the association as soon as the condition for the deposit has been complied
with or the period therefor has expired; and

f. To enjoy all other rights as may be provided in this Bylaws.

Section 5. Duties and Responsibilities of a Member. A member shall have the following
duties:

a. To timely pay association dues, fees and other assessments;

b. To support and participate in the projects, activities and affairs of the association;

c. To attend meetings of the association;

d. To comply with this Bylaws, policies, rules and regulations, and deeds of restrictions
of the association; and

e. To timely pay monthly amortizations and comply with the conditions of the award or
grant as provided in the Lease Purchase Agreement (LPA) and/or other contracts
governing their transaction.

Section 6. Conditions of Membership. Members shall agree to the following provisions:

a. To relocate to other lots/areas and/or vary their house plans and designs when the
community or site development, such as roadways, or drainage, and/or water lines to
be constructed or installed, shall require relocation and/ or alteration of house plans
for the common good of the majority of the members in compliance with
government regulations

b. The right of the association and the agreement of the members to the substitution of
members who default in payment of at least three (3) monthly amortizations, after
due notice and hearing; and,

c. To recognize vested or prior rights of any member whose loan allocation has been
fully paid by the assisting private or public financial institution.

Section 7. Voting Rights. Each member shall be entitled to one (1) vote. A member may
exercise his/her voting right in person or by proxy.

Section 8. Member in Good Standing. A member in good standing is one who complies
faithfully with all the duties and obligations of a member.

Section 9. Delinquent Member or Member Not in Good Standing. A member may be

declared delinquent or not in good standing by the majority of the Board on any of the following
grounds:
a. Failure to pay at least three (3) cumulative monthly association dues, fees, or other
charges/assessments despite repeated demands by the association;

b. Failure to pay at least three (3) monthly amortizations, or as provided in the Lease
Purchase Agreement (LPA) or other contracts governing their transaction;

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 c. Failure to attend membership meetings in person or by proxy without any justifiable
reason for at least three (3) consecutive general membership meetings despite
receipt of notice;

d. Finding of repeated violation of and non-compliance with, including but not limited
to, final orders and directives, pertinent laws, rules and regulations and policies
issued by constituted authorities, and this Bylaws, policies or rules and regulations;
and

e. Commission of conduct inimical to the interest of the association and/or the

community as determined by the Board from competent proof and after due notice
and hearing, to have been committed by the member.
A member who has been declared delinquent or not in good standing in accordance with
the procedure in the succeeding Section is not entitled to exercise the rights of a member, but is
nevertheless obliged to pay all the fees and dues assessed to a member in good standing.
Section 10. Procedure in Declaring a Member Delinquent or a Member Not in Good
Standing. The following procedure shall be observed in declaring a member delinquent or not in
good standing:
a. The Board or the committee shall preliminarily determine whether or not a member
may be declared delinquent or not in good standing on any of the grounds provided
in this Bylaws.

b. The president or the designated officer of the association shall forthwith notify the
said member in writing of the violation and require him/her to explain in writing,
within fifteen (15) days from the receipt of the notice of violation, why he/she
should not be declared delinquent or not in good standing.

In case the violation was for non-payment of dues, fees and other assessments, the
notice shall state that the said member is given a grace period of sixty (60) days
reckoned from the receipt of the notice to pay his/her arrears. The member shall
notify the Board of his/her intention to avail of the grace period within fifteen (15)
days from said receipt.

c. After the lapse of fifteen (15) days, with or without a written explanation or notice
of intention to avail of the grace period, the president or the designated officer shall
submit the matter to the Board or the Committee for hearing and deliberation. If a
Committee shall hear and deliberate, it shall transmit to the Board a summary of its
findings and recommendations.

d. Within fifteen (15) days from the commencement of the hearing and deliberations,
or the termination thereof, whichever is earlier, by majority vote of all members of
the Board, the member may be declared delinquent or member not in good standing.

e. The President shall notify the member concerned of the decision of the Board and
shall furnish him/her a copy of the resolution.

f. The member declared delinquent or not in good standing may file a motion for
reconsideration with the Board within ten (10) days from the receipt of the
resolution declaring him/her delinquent or not in good standing. The motion must be
resolved by the Board within five (5) days from the receipt thereof.

Section 11. Sanctions for a Delinquent Member or a Member Not in Good Standing.
The rights and privileges of a member is suspended upon the declaration of delinquency by the

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Board. Such suspension shall extend to his/her co-owner/homeowners or co-lessees, as
applicable, and all those residing in his/her property.
Section 12. Reinstatement of a Delinquent Member or a Member Not in Good
Standing. The Board shall, by majority vote of those present at a meeting at which there is a
quorum, reinstate the membership of the delinquent member or member not in good standing
within ten (10) days from the receipt of proof of payment of the unpaid dues, fees or charges, or
satisfaction of the sanctions imposed.

If the Board fails to reinstate the suspended member within the prescribed period through
no fault of the delinquent member, such as but not limited to the failure of the Board to hold a
meeting or muster a quorum, the membership of the member concerned shall automatically be
deemed reinstated and all rights restored at the lapse of the prescribed period.

When the declaration of delinquency is on the ground of non-payment of monthly

amortizations, or as provided in the Lease Purchase Agreement or other contracts governing their
transaction, the member shall notify the association, in writing, his/her payment and present proof
of payment. Full payment of the arrears shall automatically reinstate his/her status of good
standing on the day following the receipt by the association of the notice and proof of payment.

Section 13. Expulsion or Substitution of Members. Resolutions delisting and/or

expelling members from the association, and the corresponding substitutions, if any, shall be
submitted to the DHSUD, and to the LGU housing or settlements unit, SHFC, NHA, or any other
agency administering or managing the housing project within fifteen (15) days from its adoption.
Otherwise, the delisting or expulsion of members shall not be enforceable.

ARTICLE IV
FEES AND DUES

Section 14. Membership Fee. Every member of the association shall pay the amount of
________________________ in consideration for membership in the association.

Section 15. Association or Maintenance Dues. Monthly association and/or maintenance

dues of _______________________ shall be collected from every member to defray the
administrative cost and operational expenses of the association.

Section 16. Contributions. The association may raise funds for its programs and activities,
through contributions, donations and/or other forms.

Section 17. Special Assessments. The Board may, from time to time, assess and collect
from each member reasonable amounts as may be necessary to fund special community projects
for the common good and benefit of the association, as approved by the majority of the members
of the Board and the members of the association.

ARTICLE V
MEETING OF MEMBERS

Section 18. Regular or Annual Meetings. The annual or regular meeting of the
members shall be held at the principal office of the association, or at a place determined by the
Board on _________________________ of each year. The election of the members of the
Election Committee shall also be held during the annual meeting.

Written notice of regular or annual meetings stating the date, time and place of the meeting
shall be sent to all members personally, through registered or electronic mail, or any available
means, not less than fourteen (14) days before the date set for such meeting and shall be posted at
the bulletin board of the association and other conspicuous places in the community.

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 Section 19. Special Meetings. Special meeting of the members may be held at any time
upon the call of the President or by the majority of the Board, or upon petition of thirty percent
(30%) of the members in good standing whenever they shall deem it necessary.

The written notice of any special or emergency meetings stating the date, time and place of
the meeting, and purpose of the meeting shall be sent to each member personally, through
registered or electronic mail, or any available means, not less than five (5) days prior to the
meeting.

Section 20. Quorum. The presence in person or by proxy of at least the majority of the
members in good standing shall constitute a quorum for all meetings of members. Where a
quorum is present in person or by proxy, any action approved by the majority of the members
present shall be the act of the members, unless a greater number is required by law, or by this
Bylaws.

Section 21. Proxies. Any member may be represented by proxy in all meetings. Proxies
shall be in writing, signed by the member, and presented to the association secretary before such
meeting. Unless otherwise provided in the proxy, it shall be valid only for the meeting for which
it is intended. No proxy shall be valid and effective for a period longer than three (3) years at any
one time unless earlier revoked by the member.

Section 22. Annual Statement. A true and full statement of the affairs of the
association, including the financial status, shall be reported at the annual meeting for the
information of the members.

Section 23. Minutes. Minutes of all meetings shall be kept and preserved by the
Association Secretary as a record of the matters and business transacted at such meetings.

Section 24. Order of Business. The order of business at all meetings of the members shall
be as follows:

a. Proof of service of the notice of meeting

b. Determination of quorum
c. Reading and approval of the minutes of previous annual meeting
d. Report of the President and Treasurer of the Association
e. Unfinished business.
f. Election of the members of the Election Committee
g. Other matters
h. Adjournment

ARTICLE VI
BOARD OF TRUSTEES/DIRECTORS

Section 25. Board of Directors. The powers of the association shall be exercised, all
business conducted, and all of its property controlled and held by the Board of Trustees/Directors
elected from among the members in good standing of this association. The Board of Directors
shall have the power to appoint and/or remove the officers of the association.

Section 26. Duties and Responsibilities of the Board. 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;

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 b. Collect reasonable fees, dues and other assessments that may be provided for in this
Bylaws and approved by the majority of the members of the association;

c. Collect reasonable charges for assessments, and after due notice and hearing by the
Board in accordance with the procedures, and rules and regulations adopted by the
board, charge reasonable fines for late payments and for violation of the by-laws,
rules, and regulations of the association, in accordance with previously established
schedule adopted by the board and furnished to the homeowners;

d. Remind members to pay their monthly amortizations, or as provided in the Lease

Purchase Agreement or other contracts governing their transaction;

e. Propose measures to raise funds and the utilization of such funds and submit the
same for consideration of the members of the association;

f. Undergo a free orientation by the DSHUD 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;

g. Discharge the duties and responsibilities provided for in the association’s Bylaws;

h. The Board shall act in all instances on behalf of the association, except to amend the
Articles of Incorporation and Bylaws, to dissolve the association, to elect members of
the Board or to determine the qualifications, powers and duties, and/or terms of
office of the Board, and other instances that require the vote or approval of the
members themselves;

i. To have a working knowledge of the statutory and regulatory requirements affecting

the association;

j. Adopt a system of internal checks and balances to safeguard the integrity of the
operations of the association; and

k. Exercise such other powers as may be necessary and proper for the accomplishment
of the purposes for which the association was organized.

In the performance of their duties, the officers and members of the Board shall exercise the
degree of care and loyalty required by such position.

Section 27. Composition of the Board. The Board shall be composed of

____________________ elected members of the association.

Section 28. Qualifications of Directors/Trustees and/or Officers: A director and/or

officer of an association:

a. Must be a Filipino citizen;

b. Must be of legal age;
c. Must be a member in good standing as of three (3) months prior to the date of the
election;

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 d. Must be an actual resident of the subdivision, housing or relocation project as
certified by the association secretary or in default thereof, by a member having
personal knowledge thereof; and,
e. Has not been convicted by final judgment of an offense involving moral turpitude.
f. Must be the identified and recognized awardee, must have updated monthly
amortizations, and compliant with the pertinent occupancy rules and regulations, as
certified by the agency administering the program or project.
The legitimate spouse of a qualified member, when qualified in his/her own right and not
disqualified by his/her own account, may be a candidate in lieu of the member.

The trustees or directors and/or officers, during their term, shall continuously possess all
the qualifications and none of the disqualifications enumerated in the immediately following
section; otherwise the Board, by majority vote of all its members, is authorized to remove them
from office on said grounds.

Section 29. Disqualifications of Trustees or Directors, and Officers. A trustee or

director and/or officer of an association shall not have any of the following disqualifications:

a. Those found guilty of having committed fraud, falsification, defalcation, or any other
act inimical to the interests of the association;

b. Former officers and/or trustees or directors who, despite demands by the previous or
incumbent Board or officers, have not turned over the books, funds, records and
properties of the association established to be in their custody during their term;

c. Former members or the incumbent Board who unjustifiably refused to call an

election;

d. Those who unreasonably failed and/or refused to comply with the orders of HLURB,
DHSUD and/or HSAC;

e. Members who are trustees or directors and/or officers of another registered

homeowner’s association;

f. Those who have been declared or found by HSAC in an adversarial case filed before
it, to have instigated, incited or initiated the conduct of an unauthorized election in
accordance with Section 90 hereof, and those who have actively participated therein,
either as members of the election committee or as candidates; and
g. Those imposed with penalty of disqualification in any case filed before the HLURB
and/or HSAC.

Section 30. Election and Term of Office. The trustees/directors shall be elected by the
majority of the members in good standing. The directors or trustees so elected shall hold office
for a term of ________________ and until their successors are elected and qualified.

Section 31. Turnover of Records and Properties by the Outgoing Trustees/Directors

and/or Officers. The outgoing trustees/directors or officers of an Association shall turn over all
association books, records, properties and other assets to the new set of directors and officers
within fifteen (15) days from the assumption of office of the new Board.
Section 32. Removal of a Trustee/Director. A trustee or director may be removed from
office by way of a petition signed by the majority of the members in good standing of the

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association, for any cause or causes provided in this Bylaws, subject to the verification and
validation of the DSHUD Regional Office.

Section 33. Dissolution of the Board of Directors. The Board may be dissolved by way
of a petition signed by two-thirds (2/3) of all the members of the association, subject to the
verification and validation of the DSHUD Regional Office.

Section 34. Vacancy in the office of the Director/Trustee. Any vacancy occurring in the
Board due to removal by a vote of the majority of the members in good standing after verification
and validation by the DSHUD, resignation, death, or incapacity or any other cause or causes,
shall be filled by a majority vote of the members in good standing in a special election called for
the purpose. The trustee/director so elected shall serve only the unexpired term of office of
his/her predecessor in office.

Section 35. Grounds for Removal of a Trustee or Director or Dissolution of the Board
of Directors. A director may be removed, or the Board may be dissolved on grounds, such as but
not limited to, the following:

a. Breach of trust;
b. Conflict of interests;
c. Mismanagement, fraud or abuse of authority;
d. Tolerated the commission of fraudulent activities and other illegal acts
committed by a trustee or director and/or homeowners;
e. Gross negligence in managing the affairs of the association; or
f. Failed to perform their fiduciary duties and/or responsibilities.

Section 36. Board Meetings. The Board shall hold monthly meetings at such time and
place to be determined by the Board. Special meetings may be held at any time upon the call of
the chairperson, president, or by the majority of the Board with notice to the chairperson or the
president. The chairperson or, in his/her absence, the president, shall preside at all meetings of
the Board. Board meetings may be held in person or through remote or electronic means, or a
combination of both.

Notice of meetings shall be sent to the members of the Board by the Secretary at least two
(2) days prior to such meeting. The notice shall state the date, time and place of such meeting,
and shall state the purpose of such meeting. No other business shall be transacted at such
meeting except as stated in the notice unless by consent of the majority of the members of the
Board present at the said meeting at which a quorum is present.

Section 37. Personal Attendance. A director shall attend board meetings in person or
through remote or electronic means of communication. Trustees/directors cannot attend or vote
by proxy at Board meetings.

Section 38. Quorum in Board Meetings. Majority of the number of directors as fixed in
the Articles of Incorporation shall constitute a quorum to transact business. Every decision of at
least a majority of the directors present at a meeting at which there is a quorum shall be valid as a
corporate act, except those that require the vote of the majority of all the members of the Board.

Section 39. Minutes. Minutes of all board meetings shall be kept and preserved by the
Association Secretary as a record of the matters and business transacted at such meetings.

Section 40. Compensation. The members of the Board shall serve without compensation.
However, reasonable expenses incurred by the Board in connection with official activities may be
reimbursed upon presentation of receipts and other documentary evidence in support of such
claims.

ARTICLE VII

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 OFFICERS

Section 41. Officers. The association shall have the following executive officers who
shall be responsible for the management of the association’s business: president, vice-president,
secretary, treasurer, and auditor who must all be Filipino citizens. No one shall act as president
and secretary, or as president and treasurer at the same time.

Section 42. Election and Term of Office. The officers shall be elected by the Board from
among themselves during the organizational meeting or the first meeting of the Board
immediately after the election. The term of office of the officers shall coincide or correspond to
the term of office of the trustees or directors.

Section 43. Compensation. Officers who are not members of the Board may receive such
honoraria as may be determined by the Board.

Section 44. Suspension and/or Removal of Officer. An officer may be suspended and/or
removed, after due notice and hearing, by a majority vote of the entire Board whenever in its
judgment the best interest of the Association will be served thereby.

Section 45. Vacancy in any office. In the event of a vacancy in any office due to removal,
resignation, death, or incapacity or any other cause or causes, unless the officers are elected by
the members, the majority of the entire Board shall elect a successor. The officer so elected shall
serve only the unexpired term of office of his/her predecessor in office.

Section 46. President. The president shall preside at all meetings of the members, and in
the absence of the Chairperson of the Board, shall preside Board meetings. He/she shall exercise
such powers and perform such duties incident to his/her office, and other necessary functions as
the Board may assign. Among others, the president shall perform the following functions:

a. Exercise general supervision over all the other officers of the association;

b. Represent the association in all meetings or activities to which it is a party or

participant;

c. Preside, in consultation with the appropriate officers and committees, a yearly

program of activities and submit an annual report of the operations of the association
to the members at the annual meeting, and to the board of directors or trustees such
statements, report, memoranda and accounts as may be requested by the latter; and

d. Shall execute in the name of the association all contracts and agreements authorized
by the Board.

Section 47. Vice-President. The Vice-President shall be vested with all the powers and
authorities of, perform the duties and functions of the President during the latter’s absence or
incapacity, and shall perform such other duties as the Board may from time to time assign to
him/her. He/she shall assist the president in all matters affecting the operation of the association.

Section 48. Treasurer. The treasurer shall have overall responsibility for all association
funds, receipts and disbursements of the association, and shall perform the following:

a. Act as the custodian of all money and property of the association;

b. Keep a complete and accurate record of all receipts and disbursements of the
association, and ensure that all disbursements and/or expenditures are evidenced by
appropriate vouchers;

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 c. Disburse the funds of the association, for specific purpose/s authorized by a
resolution of the Board;

d. Collect fees, dues and other assessments from the members;

e. Deposit the funds of the association in bank accounts in the name of the association;

f. Shall monitor all delinquencies and send notices on overdue association’s dues and/or
demand letters;

g. Prepare the financial statements of the association, periodically submit and report to
the President and to the Board, and report to the members during the general
assembly meeting an account of the financial condition of the association;

h. Such other duties incident to the office of the treasurer and such other duties that the
Board may assign to him/her.
The treasurer may delegate the routine duties of the office of the treasurer to one or more
employees of the association subject to the approval of the president.

Section 49. Secretary. The Secretary shall keep and maintain a membership book
containing the list of all members including information and data which may be required by the
Board, act as repository of all records and other documents of the association, handle all
correspondences of the association, and perform such other functions and/or duties incident to the
office of the secretary and as the Board may assign.

Section 50. Auditor. The Auditor, who may or may not be a director of the association,
shall perform the following functions:

a. Serve as the chairperson of the audit and inventory committee of the association;

b. Conduct a detailed and periodic audit of all financial accounts, books and transactions
of the association, and shall render a report of his/her audit as may be required by the
Board or by request of the majority of the members; and

c. Such other duties as are incident to his/her office and as may be assigned by the
Board.

ARTICLE VIII
STANDING COMMITTEES

Section 51. Committees. The Board shall have the power to create committees, such as, but
not limited to, the following:

a. Election Committee. The members of the Committee shall be elected by the

majority of the members in good standing at the annual meeting of members. Only
members who are in good standing and not members of the incumbent Board may
qualify to be members of the Committee.

The Committee shall conduct and supervise all election activities, referenda and/or
plebiscite, and shall prepare the rules and regulations for the conduct of elections for
the members of the Board. It shall perform such other functions as may be assigned
by the Board.

b. Grievance Committee. The committee shall accept and investigate grievances or

complaints filed by a member, homeowner or beneficial users against any other

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 member, homeowner, beneficial user, director or officer, and shall settle any disputes
within its power. The Committee shall resolve the complaints or dispute brought
before it within thirty (30) days from the receipt thereof.

Any controversy or dispute shall first be brought before the Grievance Committee
prior to elevating the same to the Department of Human Settlements and Urban
Development (DHSUD) and/or the Human Settlements Adjudication Commission
(HSAC).

c. Audit Committee. The Committee shall be responsible for preparing the

association’s financial statements. It shall conduct such audit at least semi-annually
and submit its reports thereon to the Board Trustees/Directors
d. Environment Committee. The Committee shall foster awareness, recognition and
support for a healthy and sustainable natural environment. The Committee shall
likewise extend help during natural calamities and/or any environmental
eventualities.
e. Livelihood Committee. The Committee shall plan and coordinate all economic
programs designed to supplement the income of the members.

f. Peace and Order Committee. The Committee shall be responsible for maintaining
peace and order in the community. It shall form and organize the members into
brigades to safeguard the security of the area and emergency/disaster brigade to meet
any natural or man-made calamity.

g. Social and Cultural Affairs Committee. It shall be tasked with planning,

organizing and implementing social activities that will help improve inter-personal
relations among the members. It shall also develop programs and activities to deepen
cultural awareness among the members.

h. Kasambahay Affairs Committee. It shall be responsible for the registration of all

domestic workers and employees employed by the members and homeowners within
their territorial jurisdiction, at which registration list shall be submitted to the
barangay secretary and duly updated on a monthly basis.

i. Maintenance Committee. The maintenance committee shall be responsible for the

upkeep and repair of community facilities and services.

The Committee members shall be members in good standing and not members of the
Board. The Board may establish such other committees as it may deem necessary.

ARTICLE IX
ELECTIONS

Section 52. Holding of Elections. Elections for the members of the Board shall be held
on _______________________ of each year. The first election under this Bylaws shall be called
by the interim Board within six (6) months from the approval of this Bylaws, and the elected
trustees or directors shall only serve until the regular election as provided in this Bylaws. The
election shall be done by secret ballot.

Section 53. Calling of an Election. Only the incumbent Board and/or through the
president or vice president are authorized to call the election in accordance with this Bylaws.

Section 54. Quorum in Elections. At all elections, there must be present or votes cast by
majority of the association members in good standing, either in person or by proxy.

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 Section 55. Proxies in Elections. Members in good standing may vote in person or by
proxy in all elections of trustees/directors. Proxies shall be in writing, signed by the member and
submitted to the Election Committee in accordance with the schedule as set by the Election
Committee. Unless otherwise provided in the proxy, it shall be valid only for the election for
which it is intended. No proxy shall be valid and effective for a period longer than three (3) years
at any one time unless earlier revoked by the member.

Section 56. Postponement or Failure of Election. When a regular or special election

cannot be held or conducted due to lack of candidates, or the number of qualified candidates did
not reach a number as to constitute majority of the entire Board, or for any other serious cause
such as violence, terrorism, force majeure, and other analogous causes of such a nature that the
holding of a free, orderly and honest election should become impossible, the Election Committee
shall postpone the election and call another election within a period of thirty (30) days from the
initial date of the election or the cessation of the cause for such postponement of election.

In the event of lack of quorum or for any other serious cause such as violence, terrorism,
force majeure, and other analogous causes of such a nature that the holding of a free, orderly and
honest election should become impossible, the Election Committee shall declare a failure of
election, and shall call for another election within a period of thirty (30) days from the date of the
failed election or the cessation of the cause for such failure of election.

Section 57. Hold-Over. Where there is a justified failure to elect a new set of directors
and the causes for such failure persist after a second election is called, the incumbent Board shall
be allowed to continue in a hold-over capacity until their successors are elected and qualified for
the next term.

Section 58. Election Protests. Election protests shall be in writing and must be filed
before the Election Committee within five (5) days after the proclamation of the winning
candidates, specifically stating the grounds thereof, except in issues of qualification or
disqualification of candidates and/or voters, in which case it may be filed within three (3) days
from the discovery thereof. The Election Committee shall decide on the controversy brought
before it within the non-extendible period of five (5) days from the receipt of the protest.

If the complainant or protestant is dissatisfied with the decision of the Election Committee,
he/she may file an election protest or complaint before the proper Regional Adjudication Branch
of the HSAC pursuant to its Rules of Procedure.

ARTICLE X
FINANCIAL TRANSACTIONSAND OTHER RECORDS

Section 59. Contracts – The Board shall, by specific resolution, authorize the President
to enter into and execute any contract and deliver any instrument in the name or in behalf of the
association.

Section 60. Signing of Checks, etc. – All checks, drafts, or other orders for payment of
money, and all notes, bond or other evidence of indebtedness issued in the name of the
association shall be signed jointly by the treasurer and the president or other officers authorized
by the Board.

Section 61. The association shall observe the following with regard to its funds, financial
and other records:

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 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.
b. A financial statement of the association shall be prepared annually by the treasurer,
attested to by the chairperson of the Board or the president, and audited by the auditor
and/or an independent certified public accountant within ninety (90) days from the
end of the accounting period. The financial statement shall be posted in the
association office, bulletin boards, and other conspicuous places within the
subdivision/village or community, and shall be submitted to the DHSUD; and
c. The funds of the association shall be kept and deposited in bank accounts in the name
of the association and shall not be joined or commingled with the fund of any other
association, trustee/director, officer or any other person responsible for the custody of
such funds.

Section 62. Fiscal Year. The fiscal year of the association shall be from January 1 st to
December 31st of each year.

ARTICLE XI
DISSOLUTION OF THE ASSOCIATION

Section 63. In the event that the association fails to acquire the land subject of the
Community Mortgage program, group land acquisition and development, self-help land
acquisition scheme, and other similar land tenurial arrangements, the association shall be deemed
dissolved and the registration thereof is deemed revoked, and not valid for any other purpose.

ARTICLE XII
MISCELLANEOUS PROVISIONS

Section 64. Policies, Rules and Regulations – The Board shall have the power to
promulgate policies, rules and regulations consistent with the laws, and pertinent rules and
regulations subject to consultation and ratification of the majority of the members regardless of
standing.

Section 65. Amendment. This Bylaws or any portion or provision thereof may be
amended or repealed by majority vote of all members of the association regardless of standing at
a duly called and held regular or special meeting; provided, the notice of such meeting shall
contain a fair statement of the proposed amendments.

Adopted and approved by the interim Board and majority of all the members of the
association on ____________________________ at ______________________________.

IN WITNESS WHEREOF, We, the incorporators, have hereunto signed this By-laws
this ______ day of _________ , 20___ at ________________, Philippines.

________________________________ _________________________________

________________________________ _________________________________

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 ________________________________ _________________________________

________________________________ _________________________________

________________________________ _________________________________

________________________________ _________________________________

________________________________ _________________________________

_________________________

SIGNED IN THE PRESENCE OF:

________________________________ _________________________________

ACKNOWLEDGMENT

Republic of the Philippines)

_______________________) S.S.

BEFORE ME, this ____________ day of ___________, at _______________,

personally appeared and exhibiting to me their respective identification cards:

Name ID Issued at/on

known to me to be the same persons who executed the foregoing Bylaws consisting of fifteen
(15) pages, including this page, and who acknowledged to me that the same is their true and
voluntary act and deed.

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 WITNESS MY HAND SEAL on the day and place first above mentioned.

NOTARY PUBLIC

Doc. No. _______;

Page No. _______;
Book No. _______;
Series of _______.

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