Question & AnswerQ&A (Republic Act No. 9904)
The title is the "Magna Carta for Homeowners' Associations."
The State shall encourage, promote, and respect nongovernmental, community-based organizations such as homeowners' associations, uphold the rights of homeowners, and provide resources and assistance to help them serve their communities and complement efforts of local government units.
A homeowner is an owner or purchaser of a lot in a subdivision or village; an awardee, usufructuary, or legal occupant of a unit/house in government socialized or economic housing or relocation projects; or an informal settler being accredited under certain housing programs like CMP or LTAP.
A homeowner as defined in the Act qualifies. Lessees, usufructuaries, or legal occupants may have rights upon written consent from the owner. Lessees in government socialized housing or underprivileged communities are considered homeowners without need for consent.
Members have the right to enjoy basic community services and use of common areas, inspect association books and records, participate and vote in meetings and elections, receive deposits, and enjoy other rights as provided in the bylaws.
Members must pay membership fees, dues, and special assessments; attend association meetings; and support and participate in projects and activities of the association.
Associations must register with HLURB, have a board of directors/trustees with qualifications and duties provided in the bylaws, maintain accurate accounting records, hold meetings, and adhere to governance procedures stipulated in the Act.
These include adopting/amending bylaws, litigating for the welfare of the association, regulating common areas, managing access roads with conditions, hiring employees, acquiring property, managing utilities, imposing fees, ensuring compliance with building codes, and imposing sanctions on members.
Prohibited acts include compelling membership without proper basis, depriving members of basic services if paid, denying inspection of records, preventing participation in meetings, denying due process, and exercising association powers without required consultation and approval.
Violators are subject to fines between Php5,000 and Php50,000, permanent disqualification from serving in the association, and possible civil or criminal charges. Officers, directors, or trustees who authorized violations may be held liable jointly and severally.
The Board manages the association's affairs, maintains accounting records, collects fees and fines, proposes fund measures, undergoes orientation, and exercises necessary powers, acting on behalf of the association except for certain matters requiring member approval.
A simple majority of members may petition for removal of a director/trustee, with HLURB verification. Two-thirds of members can petition for dissolution of the Board, after which HLURB calls an election and appoints an interim board until new officers qualify.
Associations must keep detailed books and accounts open for inspection by homeowners and authorized government agents, prepare annual financial statements audited and posted in conspicuous places, and keep funds in separate association accounts.
Associations should support and complement LGUs in service delivery, help implement local policies, consult with LGUs on ordinances affecting the community, and their dues and income from rentals are tax-exempt if used for basic services and maintenance.
HLURB must conduct orientations, formulate codes of ethics, register associations, resolve intra and inter-association disputes, verify petitions for removal/dissolution of boards, standardize accounting and bylaws, and assist in enforcement with government agencies.