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WHEREAS, Republic Act No. 9285, otherwise known as the Alternative Dispute Resolution (ADR) Act of 2004, declares it the policy of the State to actively promote party autonomy in the resolution of disputes and encourage the use of ADR as a means to speedy and impartial justice;

WHEREAS, Executive Order No. 523 Series of 2005, Instituting the Use of Alternative Dispute Resolution in the Executive Department, mandates the offices under the Office of the President to develop and institutionalize an ADR Program;

WHEREAS, there is a need to incorporate the mediation process in the Rules of Procedure of this Board;

WHEREAS, consistent with the thrust of ADR; there is also a need to strengthen the internal grievance mechanism in homeowners associations;

WHEREFORE, BE IT RESOLVED AS IT IS HEREBY RESOLVED, that the Rules of Procedure of this Board be amended as follows: ^**

(1)Sections 1 and 2 of Rule III, (COMMENCEMENT OF ACTION, SUMMONS AND ANSWER) are hereby amended to read as:

"RULE III
COMMENCEMENT OF ACTION,
SUMMONS AND ANSWER
Section 1. When action is deemed commenced. -An action is deemed commenced upon the filing of a verified complaint with the Regional Office of the Board, in three (3) copies and in such number of copies as there are respondents, with supporting documents. THE FOLLOWING SHALL BEATTACHED TO THE CQMPLAINT UPON FILING:

A. PROOF OF PAYMENT FEES
B. VERIFICATION
C. A certification of non-forum shopping which complies with Supreme Court Circular No. 28-91, as amended [shall be attached to the complaint.]
D. IN HOMEOWNERS ASSOCIATIONS CASES, ACERTIFICATION ISSUED BY THE CHAIRMAN OF THE ELECTION COMMITTEE IN CASES INVOLVING ELECTIONS, GRIEVANCE COMMITTEE, OR ANY OTHER COMMITTEE - CONSTITUTED TO RESOLVE THE MATTER IN CONTROVERSY ATTHE ASSOCIATION LEVEL, STATING UNDER OATHTHATTHE PARTIES HAVE BEEN INVITED TO PARTICIPATE IN PROCEEDINGS TO SETTLE THE DISPUTE BUTTHAT NO AMICABLE SETTLEMENT WAS REACHED.

NON-COMPLIANCE WITH ANY OF THE ABOVE REQUIREMENTS SHALL BEA GROUND FOR DISMISSAL OF THE COMPLAINT, (a)" (2) Rule X of the present rules (Conciliation Conference and Resolution) is hereby amended as follows:

"RULEX
[CONCILIATION] MEDIATION, [CLARIFICATORY CONFERENCE] AND RESOLUTION

SECTION 1. MANDATORY MEDIATION. -THE CONDUCT OF MEDIATION IN ADVERSARIAL CASES FILED BEFORE THE REGIONAL OFFICES IS MANDATORY. HOWEVER, MEDIATION SHALL STILL BE AVAILABLE AT ANY STAGE OF THE ADJUDICATION PROCEEDINGS, EVEN ON APPEAL AND EXECUTION, PRIOR TO THE FULL IMPLEMENTATION OF THE DECISION, UPON THE REQUEST OF BOTH PARTIES, (n)

SECTION 2. CONFIDENTIALITY OF MEDIATION PROCEEDINGS. -ALL INFORMATION OBTAINED DURING THE MEDIATION PROCEEDINGS SHALL BE CONFIDENTIAL. SUCH CONFIDENTIALITY SHALL BE GOVERNED BY SECTIONS 9, 10, 11 AND 12 OF REPUBLIC ACT NO. 9285. (n)

Section [1] 3. MEDIATION [conciliation] conference. - Upon receipt of the answer, the Arbiter shall summon the parties to a MEDIATION [conciliation] conference [to explore the possibility of an amicable settlement] AND THEREAFTER INDORSE THE CASE TO THE MEDIATION UNIT FOR ASSIGNMENTTOAMEDIATOR. (a)

SECTION 4. ROLE OF THE MEDIATOR. - PRIOR TO THE CONDUCT OF ' THE PROCEEDINGS, THE MEDIATOR SHALL EXPLAIN TO THE PARTIES THE OBJECTIVES, NATURE AND RULES OF THE MEDIATION PROCESS AND, UPON THE PARTIES' AGREEMENT TO SUBMIT TO THE SAME, PROCEED TO FACILITATE COMMUNICATION AND NEGOTIATION IN ORDER TO ASSIST THE PARTIES IN REACHING A VOLUNTARY AGREEMENT REGARDING THEIR DISPUTE, (n)

SECTION [2] 5. APPEARANCE OF PARTIES MANDATORY. - THE APPEARANCE OF PARTIES IN THE MEDIATION PROCEEDINGS IS MANDATORY. In case the parties CANNOT BE [are not] personally present, their representative [or counsel] shall be clothed with the proper special power of attorney or board resolution, as the case may be, WITH FULL POWER to enter into a COMPROMISE AGREEMENT OR settlement. Such authority shall be presented before the commencement of the MEDIATION proceedings, (a)

Section [2] 6. Effect of non-appearance in MEDIATION [conciliation] conference. - Where a party fails [or refuses] to appear PERSONALLY OR THROUGH A REPRESENTATIVE during the scheduled MEDIATION [conciliation] conference, the party present may move for termination of the conference AND CONTINUATION OF THE PROCEEDINGS BEFORE THE ARBITER [and submission of the case for resolution in accordance with Section 10 of this rule], OTHERWISE, THE MEDIATOR, MOW PROPRIO OR UPON REQUEST OF THE PARTY PRESENT, SHALL RESET THE MEDIATION CONFERENCE AND CAUSE THE ISSUANCE OF NOTICE OF SUCH RESETTING, (a)

Section [4] 7. Compromise agreement; JUDGMENT UPON COMPROMISE. -If a[n amicable settlement] COMPROMISE IS REACHED, THE AGREEMENT SHALLBE REDUCED IN WRITING, SIGNED BYTHE PARTIESANDATTESTED BY THE MEDIATOR WHO SHALL THEN RETURN THE CASE TO THE ARBITERTOGETHERWITHTHEAGREEMENT. FORTHWITH, THEARBITER SHALL RENDER judgment [shall be rendered] based on the compromise agreement WHICH SHALL BE IMMEDIATELY EXECUTORY AND NOT APPEALABLE [duly signed by the parties, or their duly authorized representatives], (a)

SECTION 8. TERMINATION OF THE MEDIATION CONFERENCE. -WHERE NO COMPROMISE OR SETTLEMENT IS REACHED WITHIN THIRTY (30) DAYS FROM THE DATE OF THE INITIAL CONFERENCE, THE MEDIATOR SHALLTERMINATE THE MEDIATION PROCEEDINGS UNLESS BOTH PAR- TIES AGREE TO AN EXTENSION. UPON TERMINATION, THE MEDIATOR SHALL FORTHWITH RETURN THE CASE TO THE ARBITER WITH ACER- TIFICATE ATTESTING THAT RULE X, SECTION 1 OF THESE RULES HAS BEEN COMPLIED WITH, (n)

Section [5] 9. Position paper and draft decision- -WHERE THE MEDIATION IS TERMINATED AND THE CASE IS RETURNED FOR CONTINUATION OF THE ADJUDICATiON PROCEEDINGS, [If the parties fail to agree upon an amicable settlement, either in whole or in part during the conciliation conference; the Arbiter or Executive Committee, AS THE CASE MAY BE shall issue an order directing the parties to simultaneously file within thirty (30) days their respective position papers, jointly verified by counsel and the parties, attaching thereto the affidavits of their witnesses and documentary evidence, as well as. their draft decisions as provided for by Executive Order No. 26. (a)

Said position paper and draft decision shall state clearly and distinctly the facts, the issues and applicable laws and jurisprudence on which it is based. (a)

Section [3] 10. Ocular inspection and/or ciarificatory questions. - [During the conference, and/or] [A]t any time before or after the case is submitted for resolution, the Arbiter may in his discretion, require an ocular inspection of the project or the site of the homeowners association, examination of the records of the owner or the developer, or the corporate records of the association, and the presentation of witnesses, solely for purposes of clarification or additional information on the evidence on record, (a)

Section [6] 11. Summary resolution. -With or without the position paper and draft decision, the Arbiter shall resolve the case on the basis of the pleadings and pertinent records of the case and of the Board."

RESOLVED FURTHER, AS IT IS HEREBY FURTHER RESOLVED, that the Chief Executive Officer be authorized to issue supplemental orders to establish the mechanisms for the implementation of these rules.

Adopted; 26 Feb. 2007

(SGD.) THE HONORABLE NOLI L. DE CASTRO
Vice President of the Philippines
and Chairman, HUDCC
(SGD.) ERNESTO L. PINEDA	(SGD.) ROMULO Q.M. FABUL
Undersecretary, DOJ	Commissioner and Chief Executive Officer
(SGD.) TERESITA A. DESIERTO	(SGD.) AUGUSTO B. SANTOS
Commissioner	Deputy Director-General, NEDA
(SGD.) JESUS YAP PANG	(SGD.) ARTURO M. DUBLADO
Commissioner	Commissioner
ATTESTED BY:
(SGD.) CHARITO B. LANSANG
Board Secretary