By Benjamin Cuaresma
MANILA, Philippines — The Senate has approved a measure that could make it easier to redevelop aging condominium buildings by reducing the number of unit owners required to approve major changes, reconstruction or dissolution of older projects.
Senate Bill No. 2420, or the proposed Condominium Redevelopment Act, was approved Tuesday with 18 senators voting in favor, with no opposition and no abstentions.
The measure seeks to amend Republic Act No. 4726, or the Condominium Act, which has governed condominium ownership and development for nearly six decades.
Sponsored by Sen. Francis “Chiz” Escudero, the bill seeks to establish updated rules covering the maintenance, repair, reconstruction, redevelopment and possible dissolution of condominium projects.
Escudero said the current requirement for unanimous approval has effectively made redevelopment difficult, particularly when even a single owner refuses to agree.
“Currently, a unanimous vote from every unit owner is required, which we know is impossible. This proposed bill aims to change that,” Escudero said.
Under the proposed system, the voting requirement would depend on the age of the condominium project.
Projects less than 30 years old would continue to require unanimous approval from all members in good standing for redevelopment.
For condominiums at least 30 but not more than 50 years old, the requirement would be reduced to a two-thirds vote of stockholders or members.
Projects that are 50 years old or older could be dissolved through a majority vote.
The measure would also allow the amendment or revocation of a condominium’s enabling or master deed through a simple majority of registered owners, provided that proper notice is given.
Such changes would remain subject to approval by the Department of Human Settlements and Urban Development and the concerned city or municipal engineer before registration.
The bill also introduces safeguards for buyers when the actual floor area of a completed condominium unit differs from the approved floor plan.
The allowable deviation would range from 6 percent for units measuring up to 60 square meters to 2 percent for units exceeding 500 square meters.
Buyers could invoke remedies under existing laws if the reduction in floor area exceeds the prescribed limits.
Developers would also be required to secure a Certificate of Completion from the DHSUD. The agency would have 90 days from receipt of a complete application to inspect the condominium project.
Once the project is completed, the condominium corporation or co-owners would accept the conveyance of common areas, without losing their right to require developers to correct defects covered by applicable warranties.
The proposed law would cover existing condominium projects, developments under construction and future projects, subject to the rules and safeguards provided in the measure.
The Senate approval marks a significant attempt to modernize rules governing condominium projects as older buildings increasingly face questions involving structural upkeep, redevelopment, ownership decisions and the eventual end of a project’s useful life.
ia/xf
