Homeowner Associations must re-register, DHSUD
By: Nonnette C. Bennett
Homeowner Associations in Baguio City and Benguet were asked to re-register with the Department of Human Settlements and Urban Development during the 2025 HOA Summit on July 31, 2025.
Regional Director Marvin M. Feraren told representatives of HOAs that Republic Act No. 9904 known as the Magna Carta for Homeowners and Homeowners Associations in its Implementing Rules and Regulations requires that homeowners in real estate or resettlement projects or prospective beneficiaries or awardees of ownership rights under government housing or resettlement programs must register anew with DHSUD showing registration with the Securities Exchange Commission.
The amendment of RA 9904 in 2024 improved the governance and operations of the HOAs.
He said that this would allow the communities to participate effectively in governance of their associations. He said that the homeowners have the right and responsibility in building harmonious communities and create better environments for all.
Noting the numerous disputes between homeowners and developers or among homeowners, Feraren said that dialogue can result in compromise in order to resolve these issues which is inexpensive. He said that solutions can be achieved at the DHSUD instead of the regular courts which tend to be expensive. He noted that the discussion of procedures in resolving cases were important aspects in the revised IRR.
A salient point of the law requires the annotated membership of the homeowner in the HOA in the contract of sale between the developer or new owner to define membership, said Director Atty. Ma. Lorina Rigor, DHSUD HOACDB. Without this inclusion in the turnover, the membership in the HOA is voluntary. She said that this required membership in the HOA should be included in the contract to sell, deed of sale, or other instruments of conveyance that the HOA can ask members to include. She said that the payment of membership dues is important in the operations and management of the organization.
Beneficial User Fees are another way to involve the non-members in the HOA. This is an amount that can represent a contribution for basic community services extended by the association like security or road maintenance. This also helps the association engage the services of a third party, Rigor added.
In case the homeowner is not the resident, they can execute a Special Power of Attorney (SPA) designating a representative to the HOA. However, the representatives cannot participate in elections. In case the owner has multiple lots, the dues of each lot must be paid and the vote equivalent to the number of lots.
For legal purposes, the Board of Directors (BOD) must pass a resolution stating the member is delinquent after due process. The number of notices for collection that were ignored could be used as basis of the resolution and this results in the non-entitlement to exercise the rights of members like voting or security until they are reinstated as members in good standing. They will need to request guards to open the gate for them to enter the subdivision. However, they are entitled to exercise the right to inspect association books.
Rigor said that the sanctions against the delinquent homeowner extends to the residents of the house. The association may impose other sanctions except the cutting of water supply which is deemed as a necessity of life.
Expulsion requires a BOD resolution after due process.
Rigor listed the requirements of the re-registration of the HOA to include: the Financial Statement submitted by the Treasurer and Auditor attested by the BOD Chairman or President, Affidavit of Registration with the SEC until June 2025, posting of registration in BIR and receipts, and annual reports, among others. In case of failure, Amendment of Articles must be done 45 days after the holding of a General Assembly that includes the minutes of the GA, the votes, and the attendance sheet. –Nonnette C. Bennett
