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The following post does not create a lawyer-client relationship between Alburo Alburo and Associates Law Offices (or any of its lawyers) and the reader. It is still best for you to engage the services of a lawyer or you may directly contact and consult Alburo Alburo and Associates Law Offices to address your specific legal concerns, if there is any.
Also, the matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.
AT A GLANCE:
Under the 2024 Implementing Rules of Magna Carta for Homeowners and Homeowners’ Associations (RA 9904), a delinquent member or member not in good standing shall refer to a member who has been declared as such after due notice and hearing on the basis of the grounds and in accordance with the procedures set forth under the bylaws and/or existing policies of the association or, in lieu thereof, under this Rules.
Under the 2024 Revised Implementing Rules of R.A. 9904, cognizant of the Constitutional principles directing the State to encourage, promote, and respect nongovernmental, community-based, and the people’s right to form organizations and initiate associations in serving their legitimate collective interests in our participatory democracy, it is the policy of the State:
- To uphold the rights of the people to form associations;
- To recognize and promote the rights and the roles of homeowners as individuals and as members of the society and of homeowners associations;
- To make available resources and assistance that will help them fulfill their roles in serving the needs and interests of their communities; and
- To complement the efforts of local government units (LGUs) in providing vital and basic services to their citizens, and in helping implement local and national government policies, programs, rules and ordinances for the development of the nation.
Section 16 of the Implementing Rules provides that, a member may be declared delinquent or not in good standing by the Board of Directors on any of the following grounds:
- Failure to pay at least three (3) cumulative monthly dues, fees and/or other assessments despite repeated demands by the association;
- 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;
- Commission of conduct detrimental 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;
- 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
- In case of Community Mortgage Program (CMP), Land Tenure Assistance Program (LTAP), or other government housing and/or resettlement programs or projects, failure to pay at least three (3) monthly amortizations, or as provided in the LPA or other contracts governing their transaction.
A member who has been declared delinquent or not in good standing in accordance with the procedure is not entitled to exercise rights of a member, except the right to inspect association books and records, but is nevertheless obliged to pay all fees, dues, and other assessments charged the members in good standing.
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Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries regarding legal services, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/ 09175772207/ 09778050020.
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Good morning!
Does the law allow a subdivision HOA to post the names of delinquent members? If so, are there restrictions as to where and how such an announcmeent may be made? For example, can the names be published via a tarpaulin put up at the village entrance? Could the HOA also publish a delinquent member’s address and amount due?
What about delinquent members who have not been paying for years despite being sent statements of account regularly? Are they automatically declared delinquent, or should they still be given the 15-day leadtime to explain?
Thank you!