Philippine Senate passes Condominium Redevelopment Act on final reading

The Philippine Senate has approved on third and final reading the Condominium Redevelopment Act, which eases voting thresholds for redeveloping aging condo buildings. The bill lowers the required unit-owner approval from unanimous to majority or two-thirds, depending on the building's age, and offer

The Philippine Senate has approved on third and final reading a measure seeking to protect unit owners, occupants, and the public from the hazards of aging condominium units by providing structural regulations and tax exemptions for redevelopment. Voting 18-0-0, the chamber passed Senate Bill No. 2420, or the Condominium Redevelopment Act, which establishes a clearer legal framework easing the decision-making process of unit owners on the redevelopment of condominium buildings.

“Currently, a unanimous vote from every unit owner is required, which we know is impossible. This proposed bill aims to change that,” Senator Francis Joseph G. Escudero said during his sponsorship of the bill on 25 Aug. The measure also aims to promote the redevelopment of condominiums by exempting conveyance of common areas to condominium corporations from all national and local taxes.

Under the bill, condominiums under 30 years old would require approval from unit owners in good standing before its corporation is dissolved, while condominiums aged 30 to 50 years old require the approval of two-thirds of stakeholders. For condominiums aged 50 years old and above, a condominium corporation may be dissolved with affirmative votes by a majority of the stakeholders.