How do homeowners’ associations operate?

(First of two parts)

The essence of community life is association and cooperation for without these such broader welfare goals cannot be attained, according to the Supreme Court in Bel-Air Village Association Inc. v. Dionisio.

Thus, subdivisions now impose as an encumbrance upon the titles of prospective lot buyers their automatic membership in their homeowners’ associations (HA). Moreover, the Supreme Court held that this membership does not violate the constitutional prohibition on compelling a person to be a member of an association against his will as it only applies to governmental acts, and not to private transactions, such as the purchase of a subdivision lot.

With this practice, and pursuant to the state policy recognizing and promoting the rights and roles of homeowners as individuals and as members of the society and of HAs, Congress enacted Republic Act No. 9904, otherwise known as “Magna Carta for Homeowners and Homeowners’ Associations.”

This Magna Carta regulates HAs, which refer to nonstock, nonprofit corporations registered with the Housing and Land Use Regulatory Board, or previously registered with the now Home Guaranty Corporation and Securities and Exchange Commission.

Homeowners, whose housing units or lots are situated within the HA’s jurisdiction, and as further defined in its by-laws, can become its members. In this regard, homeowners include owners or purchasers of said units or lots, as well as informal settlers in the process of being accredited as an usufructuary or awardee of ownership rights under the Community Mortgage Program, Land Tenure Assistance Program, and other similar programs.

A lessee, as well as an usufructuary or legal occupant of a unit, house, and/or lot in a government socialized or economic housing or relocation project or other urban estate may qualify as a member upon procuring a written consent or authorization from its owner.

Nevertheless, lessees in government socialized housing projects or urban estates, and those communities of underprivileged and homeless citizens, as defined under the Magna Carta, will be considered as homeowners for the purpose of qualifying as a member of a homeowners’ association without need of such written consent or authorization.

HA members are entitled to: (a) avail themselves of, and enjoy, all basic community services and the use of common areas and facilities, upon paying the necessary fees and other pertinent charges; (b) participate, vote, and be eligible for any elective or appointive office of the HA subject to the qualifications as provided under the by-laws; (c) demand and promptly receive deposits required by the HA as soon as the condition for the deposit has been complied with or the period has expired; (d) participate in HA meetings, elections, and referenda, as long as his bona fide membership subsists; and (e) enjoy all other rights as may be provided in the by-laws.

In consenting to or authorizing the usufructuary or legal occupant’s standing as such, the unit or lot owner is deemed to have waived these rights as a HA member, until he shall have revoked the same in writing.

But, he can simultaneously enjoy with the lessee the right to inspect association books and records during office hours and to be provided upon request with annual reports, including financial statements.

Meanwhile, HA members are required to pay membership fees, dues and special assessments, attend HA meetings, and support and participate in the HA’s projects and other activities. In this regard, the Supreme Court held in the Bel-Air case that these fees, dues and special assessments are not akin to the real property tax, and partake the nature of shares in the common expenses for necessary services.

The by-laws shall determine whether an HA member is not in good standing or is otherwise delinquent. Moreover, it shall prescribe the applicable administrative sanctions, in which case, the right to due process shall be observed before they may be imposed on a delinquent member.

(To be continued)

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