Question & AnswerQ&A (Republic Act No. 9904)
The Act is known as the "Magna Carta for Homeowners and Homeowners' Associations".
The State upholds the rights of people to form unions, associations or societies, and recognizes and promotes the rights and roles of homeowners and homeowners' associations. It also supports providing resources and assistance to help these associations serve their communities and complement local government efforts.
A homeowner includes: (1) An owner or purchaser of a lot in a subdivision/village; (2) An awardee, usufructuary or legal occupant of a unit in government socialized or economic housing or relocation project; (3) An informal settler in the process of being accredited as beneficiary of ownership rights under programs such as CMP or LTAP.
Association members have rights to avail of basic community services, inspect association books and records, participate and vote in meetings and elections, demand deposits, and enjoy all rights provided in the bylaws.
Associations have powers such as adopting/amending bylaws, instituting litigation, regulating common areas, controlling access to subdivision roads, hiring employees, acquiring property, managing water services, imposing fees, ensuring compliance with regulations, suspending privileges for violations, and petitioning for barangay creation among others.
Members must pay membership fees, attend meetings, and support and participate in association projects and activities.
HLURB is tasked to register all homeowners associations, conduct orientations, promulgate ethical standards, resolve disputes, formulate rules, and supervise elections and petitions concerning boards and associations.
A director or trustee may be removed through a petition signed by a simple majority of association members in good standing, subject to verification by the HLURB, for causes stated in the bylaws.
Violators may be fined from Php 5,000 up to Php 50,000, be permanently disqualified from holding board or association office, and face civil or criminal charges. Officers or directors who participated or authorized the violation are liable jointly and severally.
Yes, all homeowners' associations must register with HLURB to gain juridical personality if not previously registered under other laws.