Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

SEVENTEENTH CONGRESS
Second Regular Session

HOUSE BILL NO.

7414

Introduced by Representatives Winston “Winnie” Castelo and Rodel M. Batocabe

EXPLANATORY NOTE

This bill intends to liberalize voluntary dissolution of condominium projects through the
lowering of percentage requirements needed for the voluntary dissolution of condominium
corporations for condemned projects or projects in existence for more than thirty years.

The State has an interest in protecting public safety and health against buildings that are
already considered hazardous. It is also important to keep the condominium owners
interests in mind to voluntary dissolve the condominium corporation when majority agrees
for its dissolution after thirty (30) years or more in the project's existence. This could occur
when the land value exceeds the unit values or when major repairs are needed, but it does

|. BATOCABE



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

SEVENTEENTH CONGRESS
‘Second Regular Session

HOUSE BILL NO. 7414

Introduced by Representatives Winston “Winnie” Castelo and Rodel M. Batocabe

“AN ACT LOWERING THE PERCENTAGE REQUIREMENT FOR THE VOLUNTARY
DISSOLUTION OF CONDOMINIUM CORPORATIONS FOR CONDEMNED PROJECT
AND PROJECTS IN EXISTENCE FOR MORE THAN THIRTY (30) YEARS, AMENDING
FOR THE PURPOSE REPUBLIC ACT NO. 4726 ENTITLED “THE CONDOMINIUM ACT”

Be it enacted by the Senate and House of Representatives of the Republic of the Philippines
in Congress assembled:

SECTION 1. Short Title. - This Act shall be known as the “Condominium Redevelopment Act
of 2017".

SEC. 2. Declaration of Policy. - It is hereby declared the policy of the state to ensure the
safety and integrity of existing condominium developments in order to protect the public
against hazards of aged buildings that pose as threats to the protection of owners and the
general public.

SEC. 3. Scope. This act shall cover all existing condominium projects which are now in
existence or which may be constructed hereinafter.

‘SEC. 4. Section 8, paragraph (d) of Republic Act No. 4726 is hereby reworded as follows:

d. That the project or a material part thereof has been condemned or expropriated
and that the project is no longer viable, or that the condominium owners, BY VOTE
OF FIFTY PERCENT PLUS ONE OF THE STOCKHOLDERS OR MEMBERS
THEREOF AT A GENERAL OR SPECIAL MEETING DULY CALLED FOR THE


PURPOSE, are opposed to continuation of the condominium regime after the
expropriation or condemnation of a material portion thereof;

SEC. 5. Section 14 of Republic Act No. 4726 is hereby reworded as follows:

Sec. 14. The condominium corporation may also be

, ; Sool S ' 3

dissolved by the affirmative vote of all

with: IN THE FOLLOWING MANNER:

IF THE PROJECT HAS BEEN IN EXISTENCE FOR THIRTY (30) YEARS OR MORE
BUT LESS THAN FORTY (40) YEARS, BY THE AFFIRMATIVE VOTE OF NINETY
PERCENT (90%) OF THE STOCKHOLDERS OR MEMBERS THEREOF AT A
GENERAL OR SPECIAL MEETING DULY CALLED FOR THAT PURPOSE;
PROVIDED THAT ALL THE REQUIREMENTS OF SECTION SIXTY-TWO OF THE
CORPORATION CONDE HAS BEEN COMPLIED WITH; AND

. IF THE PROJECT HAS BEEN IN EXISTENCE FOR FORTY (40) YEARS OR MORE

BUT LESS THAN FIFTY (50) YEARS, BY THE AFFIRMATIVE VOTE OF EIGHTY
PERCENT (80%) OF THE STOCKHOLDERS OR MEMBERS THEREOF AT A
GENERAL OR SPECIAL MEETING DULY CALLED FOR THAT PURPOSE:
PROVIDED, THAT ALL THE REQUIREMENTS OF SECTION SIXTY-TWO OF THE
CORPORATION LAW ARE COMPLIED WITH; AND

IF THE PROJECT HAS BEEN IN EXISTENCE FOR FIFTY (50) YEARS AND
ABOVE, BY THE AFFIRMATIVE VOTE OF TWO THIRDS (2/3) OF THE
STOCKHOLDERS OR MEMBERS THEREOF AT A GENERAL OR SPECIAL
MEETING DULY CALLED FOR THE PURPOSE, PROVIDED, THAT ALL THE
REQUIREMENTS OF SECTION SIXTY-TWO OF THE CORPORATION LAW ARE
COMPLIED WITH.

FOR PURPOSES OF THIS SECTION AND SECTION 8 HEREOF, THE VOTES
ALLOCATED TO EACH UNIT OWNER SHALL BE PROPORTIONATE TO THE FLOOR
AREA OWNED IN THE CONDOMINIUM DIVIDED BY THE TOTAL FLOOR AREA OWNED
BY ALL UNIT OWNERS.

‘SEC. 6. Implementing Rules and Regulations. The Housing and Land Use Regulatory Board
shall have the power to promulgate the implementing rules and regulations as may be


necessary to fully implement the objectives and purposes of this Act within the one (1) year
from approval hereof.

SEC. 7. Separability Clause. — If any provision or section of this Act is held invalid or
unconstitutional, the other provisions and sections not affected thereby shall remain in full
force and effect.

SEC. 8. Repealing Clause. — All laws, presidential decrees, executive orders, or issuances,
or any part thereof which are inconsistent with the provisions of this Act are hereby repealed,
amended, or modified accordingly.

SEC. 9. Effectivity. - This Act shall take effect fifteen (15) days after its publication in the
Official Gazette or two (2) newspapers of general circulation.

Approved.