Magna Carta for Homeowners Associations

Defines "Homeowner" broadly to include owners, awardees, usufructuaries, occupants, lessees, and beneficiaries under socialized or economic housing programs.
Establishes terminology for "Association," "Association Member," "Basic Community Services," "Board," "Common Areas," and others, critical for understanding the rights and operations of HOAs.

All HOAs must register with the Housing and Land Use Regulatory Board (HLURB).
HLURB registration confers juridical personality.
Provides an adjudication mechanism for disputes between coexisting HOAs based on legal establishment, membership, and application dates.

Homeowners enjoy basic community services provided they pay fees and charges.
Members have rights to use common areas, inspect books and records, participate in meetings and elections, and other privileges as per bylaws.

Qualified members are homeowners as defined, with exceptions for lessees who have written consent of owners.
Lessees in certain government housing projects are deemed homeowners for membership purposes without requiring consent.

Includes paying fees, attending meetings, and supporting association projects.
Procedures exist to identify delinquent members and impose sanctions with due process.

Can adopt/amend governing documents with member approval.
May engage in litigation affecting the community.
Regulates common areas, facilities, and access within subdivisions.
May hire staff, acquire property, manage water systems, and grant easements subject to lawful restrictions.
Can impose fees for use of common facilities to defray operational costs.
Has authority to maintain compliance with building and zoning laws.
Can allow establishment of institutions affecting the subdivision’s character with member consent.
May suspend privileges or impose sanctions on members violating rules.
Can petition for creation of separate barangays under law.

The association bylaws govern board composition, qualifications, and terms.
The board manages daily affairs, maintains accounting, collects dues, imposes fines, proposes fundraising measures, and undergoes orientation by HLURB.
Directors and officers owe duties of care and loyalty.

Directors may be removed by a majority petition with HLURB verification, with elections called to fill vacancies.
The entire board may be dissolved by a two-thirds petition, triggering HLURB-supervised elections and appointment of an interim board.

Adopted by simple majority of members; must cover rights, membership rules, meetings, board operations, officer duties, committees, dispute resolution, dues, penalties, and procedural rules.

Members may vote in person or by proxy; proxies must be in writing, signed, and valid only for up to three years unless revoked.

Associations must keep detailed financial records and make them available for inspection.
Annual financial reports prepared by auditors to be posted publicly and submitted to HLURB.
Funds are to be kept in association-named accounts and not commingled.

HOAs are to collaborate with LGUs in service delivery and policy implementation.
Association dues and income from rentals are tax-exempt if used for community-based services.
LGUs must consult associations on zoning, ordinances, projects affecting their area; majority homeowner approval is needed for zonal changes.

Similar cooperative and consultative roles with national agencies on policies and programs affecting residents.

Conducts orientation for association officers.
Registers associations and federation organizations.
Resolves intra- and inter-association disputes.
Sets ethical standards and verifies petitions for board member removal or board dissolution.
Establishes accounting, bylaws, and fee guidelines.
May call on law enforcement to enforce its directives.

Homeowners cannot be compelled to join associations except as provided in pertinent legal documents.
Associations cannot deny basic services or rights of members who have paid fees.
Denial of inspection rights, participation in meetings, or due process is prohibited.
Rights and powers must be exercised with proper consultation and approval.
Must reasonably maintain community services and comply with recordkeeping.

Violations by any person acting within the association may result in fines from PHP 5,000 to PHP 50,000 and permanent disqualification from association office.
Officers and board members may be held liable jointly with offending employees or agents.

Associations must review and amend bylaws within six months to comply with the Act.
HLURB to promulgate implementing rules within six months.
Appropriations for HLURB functions to be included in the General Appropriations Act.
Contains standard legal clauses on separability, repeal of inconsistent laws, and effectivity after publication.