SALIENT FEATURES OF REPUBLIC ACT NO.

9904,
THE MAGNA CARTA FOR HOMEOWNERS AND HOMEOWNERS ASSOCIATION

WHO IS A HOMEOWNER?

Homeowner shall refer to any of the following:

1. An owner or purchaser of a lot or house and lot, in a subdivision/village who

acquired the same primarily for residential purposes;

2. An awardee, usufructuary, or legal occupant of a unit, house and/or lot in a

private, nongovernment or government socialized or economic housing or
relocation project and other her urban estates;

3. An informal settler in the process of being accredited as beneficiary or awardee

of ownership rights under the CMP, LTAP, and other similar programs.

WHAT RIGHT DOES EVERY HOMEOWNER HAVE?

Every homeowner has the right to enjoy the basic community services and facilities
(security, street and vicinity lights, maintenance, garbage collection and disposal),
provided that the homeowner pays the necessary fees and other pertinent charges for
such services.

WHAT ARE THE DUTIES AND RESPONSIBILITIES OF A HOMEOWNER?

Every homeowner must:

a. pay the necessary fees, charges pertaining to basic community services, and
other special assessments such as, but not limited to, vehicle pass stickers,
construction fees and/or bond;

b. comply with the village/subdivision/project rules and regulations, policies, and

with the deed of restrictions and covenants annotated in the title or attached or
embodied in the contract to sell or deed of absolute sale; and

c. comply with the Department orders, rules and regulations, legal orders, directives
and other issuances of the DHSUD.

WHAT IS A HOMEOWNERS ASSOCIATION?

A homeowners association is a non-stock, nonprofit association registered with

DHSUD, or one previously registered with HLURB, Home Insurance and Guaranty
Corporation (HIGC, now Home Guaranty Corporation or HGC), or Securities and
Exchange Commission.
IS MEMBER IN THE ASSOCIATION VOLUNTARY OR COMPULSORY?

Membership in the association is voluntary unless -

a. Automatic or compulsory membership is provided in the contract to sell, deed of

sale, other instruments of conveyance, and/or deed of restrictions annotated in
the title of the property, or attached or embodied in the contract to sell or deed of
absolute sale; or

b. Membership in the association is a requirement for an award under the CMP,

LTAP, government housing and/or resettlement programs, and other similar
tenurial arrangement.

WHO IS QUALIFIED TO BE A MEMBER OF THE ASSOCIATION?

Every homeowner shall be qualified to be a member of the association.

CAN THE RENTER OR LESSEE OF A MEMBER QUALIFY AS AN ASSOCIATION

MEMBER?

Yes, a lessee of a member may qualify to be a member and shall have the rights of a
member on three conditions:

1. If the lease contract has a term of at least one (1) year;

2. Renter or lessee has a written consent or authorization from the owner; and

3. Renter or lessee complies with the requirements of membership under the

bylaws and the law.

WHAT IF THE OWNER OWNS MORE THAN ONE UNIT IN THE SUBDIVISION, OR
THE OWNER HAS TWO OR MORE RENTERS OR LESSEES?

When the member owns more than one (1) lot and/or housing unit, or a multi- dwelling
that are leased out to two (2) or more lessees, the written consent or authorization
required herein shall be issued to only one (1) of them.

WHEN MAY MEMBERSHIP IN THE ASSOCIATION BE TERMINATED?

Membership in the association is terminated once the member ceases to be a

homeowner. Termination of membership shall extinguish all rights of a member under
Republic Act No. 9904 and its IRR.
WHAT ARE THE RIGHTS OF A MEMBER?

A member shall have the right to:

1. Avail of and enjoy all basic community services and the use of common areas
and facilities, Provided, the member is in good standing;

2. Inspect association books and records during office hours and to be provided,
upon request, with a copy of annual reports, including financial statements, at the
member's own expense;

3. Participate, vote and be eligible for any elective or appointive office of the
association subject to the qualifications as provided for in the bylaws, and in this
Rules;

4. Participate in association meetings, elections and referenda, Provided, the

member is in good standing, unless otherwise provided in the bylaws, and
existing rules and regulations of DHSUD, or ordered in final decisions of the
HLURB/HSAC or ordered by DHSUD when acting as a special Election
Committee under special circumstances;

5. Demand and promptly receive refund of deposits such as construction bonds,

required by the association as soon as the condition for the deposit has been
complied with or the period therefor has expired; and

6. Enjoy all other rights as may be provided in the bylaws of the association, subject
to the limitations as may be provided in the bylaws. No owner or developer shall levy
upon any lot or buyer a fee for an
WHAT ARE THE DUTIES OF A MEMBER? alleged community benefit. Fees to
finance services for common
comfort, security and sanitation
A member shall have the following duties: may be collected only by a properly
organized homeowners association
and only with the consent of a
1. To timely pay monthly dues, fees and special assessments; majority of the lot or unit buyers
actually residing in the subdivision
or condominium project. (Sec. 27,
2. To attend meetings of the association; P.D. 957)

3. To support and participate in the projects and activities of the association;

4. Comply with all other duties as required by the association's bylaws, policies,
rules and regulations, and deed of restrictions.

5. In case of beneficiaries of CMP, LTAP or other similar programs, to timely pay

monthly amortizations and comply with the conditions of the award or grant as
provided in the Lease Purchase Agreement (LPA)or other contracts governing
their transaction.
Non-compliance with the above and all other duties may be a ground for the imposition
of sanctions against a member after complying with the procedure laid down in the
bylaws or as provided in this Rules

HOW MANY VOTING RIGHTS DOES A MEMBER ENJOY?

Unless otherwise provided in the Bylaws, each member shall be entitled to one (1) vote
regardless of the number of properties owned.

CAN A MEMBER VOTE BY PROXY?

Yes. A member may exercise his/her/its voting right in person or by proxy.*

*proxy: a person authorized to act for another

WHO CAN DECLARE A MEMBER DELIQUENT OR NOT IN GOOD STANDING?

Unless otherwise provided in the bylaws, a member may be declared delinquent or not
in good standing by the Board of Directors.

WHAT ARE THE GROUNDS FOR A MEMBER TO BE DECLARED DELINQUENT OR

NOT IN GOOD STANDING?

1. Failure to pay at least three (3) cumulative monthly dues or membership fees,
and/or other charges and/or assessments despite repeated demands by the
association;

2. Finding of repeated violation of and non-compliance with, including but not

limited to, final orders and directives, pertinent laws, rules and regulations and
policies issued by duly constituted authorities, and the association's bylaws,
policies or rules and regulations;

3. Commission of conduct inimical to the interest of the association and/or the

community as provided in the bylaws and determined by the Board from
competent proof and after due notice and hearing, to have been committed by
the member;

4. Failure to attend membership meetings in person or by proxy without any

justifiable reason for at least three (3) consecutive general membership meetings
despite receipt of notice; and

5. In case of CMP, LTAP or other similar programs, failure to pay at least three (3)
monthly amortizations, or as provided in the LPA or other contracts governing
their transaction.
IF A MEMBER IS DECALRED DELINQUENT, CAN THE MEMBER STOP PAYING
ALL FEES AND DUES?

A member who has been declared delinquent or not in good standing is not entitled to
exercise the rights of a member, but is nevertheless obliged to pay all fees and dues
assessed a member in good standing.

CAN A MEMBER BE DECLARED DELINQUENT OR NOT IN GOOD STANDING

WITHOUT DUE PROCESS?

No. The Board or a committee assigned by the Board must observe due process in
declaring a member delinquent or not in good standing.

WHAT IS THE PROCEDURE IN DECLARING A MEMBER DELIQUENT OR NOT IN

GOOD STANDING?

The Board of the committee assigned must observe the following procedure:

1. The Board or the committee shall preliminarily determine whether or not a

member may be declared delinquent or not in good standing on any of the
grounds provided in the bylaws or as stated in the IRR, based on the
association's records on file with the Regional Office.

2. The president or the designated officer of the association shall forthwith notify the
said member in writing of the violation and require him/her to explain in writing,
within fifteen (15) days from the receipt of the notice of violation, why he/she
should not be declared delinquent or not in good standing.

3. In case the violation was for non-payment of dues, fees and other assessments,
the notice shall state that the said member is given a grace period of sixty (60)
days reckoned from the receipt of the notice to pay his/her/its arrears. The
member shall notify the Board of his/her intention to avail of the grace period
within fifteen (15) days from the receipt of the said notice.

4. After the lapse of fifteen (15) days, with or without a written explanation or notice
of intention to avail of the grace period, the President or the designated officer
shall submit the matter to the Board or the Committee for hearing and
deliberation. If a Committee shall hear and deliberate, it shall transmit to the
Board a summary of its findings and recommendations.

5. Within fifteen (15) days from the commencement of the hearing and
deliberations, or the termination thereof, whichever is earlier, by majority vote of
all members of the Board, the member may be declared delinquent or not in
good standing.
 6. The President shall notify the member concerned of the decision of the Board
and shall furnish him/her a copy of the board resolution.

7. The member declared delinquent or not in good standing may file a motion for
reconsideration with the Board within ten (10) days from the receipt of the board
resolution declaring him/her delinquent or not in good standing. The motion must
be resolved by the Board within five (5) days from the receipt thereof.

WHAT ARE THE SANCTIONS THAT MAY BE IMPOSED AGAINST A DELINQUENT

MEMBER?

The rights and privileges of a member is suspended upon the declaration of

delinquency by the Board. Such suspension shall extend to his/her
co-owner/homeowners or co-lessees, as applicable, and all those residing in his/her
property.

The association may impose other sanctions against the delinquent member in
accordance with law and the bylaws, but if the water system is operated by or under the
control of the association, the cutting-off of water supply shall not be imposed as a
sanction.

CAN A DELINQUENT MEMBER BE REINSTATED?

Unless otherwise provided in the bylaws, the Board shall, by majority vote of those
present at a meeting at which there is a quorum, reinstate the membership of the
delinquent member or member not in good standing within ten (10) days from the
receipt of proof of payment of the unpaid dues, fees or charges, or satisfaction of the
sanctions imposed.

IF THE MEMBER HAS SUBMITTED PROOF OF PAYMENT OR PROOF OF

SATISFACTION OF THE SANCTIONS IMPOSED, BUT THE TEN DAYS HAS
LAPSED THROUGH NO FAULT OF THE MEMBER, IS THE MEMBER
AUTOMATICALLY REINSTATED?

Yes. If the Board fails to reinstate the suspended member within the prescribed period
through no fault of the delinquent member, such as but not limited to the failure of the
Board to hold a meeting or muster a quorum, his/her membership shall automatically be
deemed reinstated and all rights restored at the lapse of the prescribed period.

DOES A SUBDIVISION DEVELOPER HAVE THE RIGHT TO INITIATE THE

ORGANIZATION AND REGISTRATION OF THE ASSOCIATION?

Yes. Under Section 30 of the 2021 Revised IRR of R.A. No. 9904, the subdivision
developer may initiate the organization and registration of the association.
CAN THE DEVELOPER MANAGE THE ASSOCIATION FOR AN INDEFINITE
PERIOD OF TIME?

No. In cases where the registration of the association was initiated by the subdivision
developer/owner, the latter shall be required to execute and submit an undertaking that
management of the association shall be turned over to the homeowners when
occupancy of the house and lots have reached twenty five percent (25%) or after two
(2) years from the date of registration of the association, whichever comes first, unless
the homeowners demand for earlier turnover upon proper showing of capability to
manage the association.