A lawmaker has filed a bill, dubbed the Condominium Transparency and Socialized Housing Act, to promote good governance and financial accountability in condominium management while also addressing the country’s housing shortage.
Rep. Nathaniel Oducado of the 1Tahanan Party-list, who authored House Bill 5869, said the measure would mandate condominium corporations and management bodies to submit annual audited financial statements from an independent external auditor.
These statements should be made accessible to unit owners at least once a year and upon reasonable request.
Oducado said that any proposed increase in association dues should be backed by a presentation of these audited statements during a general assembly.
The bill grants unit owners the right to inspect and obtain copies of financial and management records, ensuring full transparency in the use of association dues. Officers who fail to comply may face administrative fines and suspension from office.
The Department of Human Settlements and Urban Development (DHSUD), in coordination with the Securities and Exchange Commission (SEC), will serve as the oversight agency.
It will be empowered to investigate mismanagement, issue compliance orders, and impose sanctions on erring condominium corporations. Violations, such as failure to submit audited reports, may result in fines ranging from P100,000 to P500,000 per year of non-compliance.
The measure also seeks to address the housing shortage by allowing the conversion of abandoned or underutilized condominium properties into socialized housing projects.
The DHSUD, in cooperation with the National Housing Authority (NHA) and concerned local governments, will undertake the initiative.
Oducado noted that priority beneficiaries for the socialized housing would include low-income families, informal settlers and displaced individuals.
Oducado said the bill upholds the welfare and rights of condominium residents while advancing the government’s goal of providing affordable and decent housing for all.
