Manila: The Senate on Tuesday gave its approval to a bill aimed at easing the redevelopment rules for aging condominiums. The new legislation lowers the number of unit owners required to agree on the future of older buildings, potentially transforming the landscape for condominium redevelopment.
According to Philippines News Agency, Senate Bill No. 2420, known as the proposed Condominium Redevelopment Act, received unanimous support with 18 affirmative votes. This measure proposes amendments to the nearly 60-year-old Republic Act No. 4726, commonly referred to as the Condominium Act. The bill seeks to update the rules governing maintenance, repair, reconstruction, redevelopment, and dissolution of condominium projects.
Senator Francis 'Chiz' Escudero, who sponsored the bill during the August 25 plenary session, emphasized the challenges posed by the current requirement for unanimous consent among unit owners, a condition he described as impractical. "Currently, a unanimous vote from every unit owner is required, which we know is impossible. This proposed bill aims to change that," Escudero stated.
The proposed legislation establishes new thresholds for redevelopment consent based on the age of the condominium. Projects less than 30 years old would still require unanimous approval from all members in good standing. For those between 30 and 50 years old, a two-thirds majority of stockholders or members would suffice. Projects over 50 years old could be dissolved with a simple majority vote.
Additionally, the bill allows for amendments or revocation of a condominium's enabling or master deed through a simple majority of registered owners. This process would require prior notification and approval by the Department of Human Settlements and Urban Development (DHSUD) and the relevant city or municipal engineer.
The legislation also introduces protections for buyers concerning discrepancies between the approved floor plan and the actual floor area of completed units. Allowable deviations range from 6 percent for units up to 60 square meters to 2 percent for units exceeding 500 square meters. Buyers have the right to seek remedies under existing laws if reductions exceed these limits.
Developers would be mandated to obtain a Certificate of Completion from the DHSUD, which would have 90 days to inspect the project upon receiving a complete application. The condominium corporation or co-owners would then accept the conveyance of common areas, retaining the right to require developers to address any defects under warranty.
The proposed law is set to apply to existing condominium projects, those currently under construction, and future developments, aiming to create a more flexible redevelopment process for aging condominiums across the nation.
