Delinquent homeowners
Dear Atty. Chris,
As an officer of a homeowners’ association, I am very concerned that some members are not paying association dues. They still demand their rights as members even though they’re not paying. May I know what action can we take against them? Albert
Dear Albert,
Republic Act (RA) 9904, otherwise known as the “Magna Carta for Homeowners and Homeowners’ Associations” is particularly crafted to recognize and promote the rights and roles of homeowners as individuals and as members of society, and of homeowners associations. To achieve its purpose, the law provided, among others, the rights and duties of a homeowner, and the legal implications in case of breach of such rights and duties.
The Magna Carta provides that an association member has full rights to (1) avail of and enjoy all basic community services and the use of common areas and facilities; (2) inspect association books and records; (3) vote and be eligible for any elective or appointive office of the association;
(4) demand and promptly receive deposits required by the association that have become due; (5) participate in association meetings, elections and referenda; and (6) enjoy all other rights as may be provided for in the association bylaws (Sec. 7, RA 9904). However, such rights entail corresponding and obligations, special to assessments, wit: to pay membership to attend meetings fees, dues of the association, and to support and participate in projects and activities of the association (Sec. 8, Ibid.). Thus, while a homeowner can demand to be accorded certain rights, he or she may also be required to perform certain obligations.
Given that the law itself has imposed certain obligations on a member of a homeowners association, his or her failure to abide will have
legal repercussions. On this score, the pertinent
rules provide that “unless otherwise provided in the bylaws, a member who has failed to pay three
(3) cumulative monthly dues or membership fees, or other charges/assessment despite demands by the association, or has repeatedly violated the association’s bylaws and/or declared policies, may be declared delinquent by the Board of Directors” (Sec. 13, Rule 3, Implementing Rules and Regulations of R.A. No. 9904). Declaration of delinquency by the Board will result in suspension of the rights and privileges of the concerned member, and other sanctions as may be provided
in the bylaws of the association (Sections 15 &
16, Ibid.). In relation to this, please be informed that the declaration of delinquency by the Board is necessary before the rights and privileges of a member may be suspended.
Thus, the non-paying members of your association are still entitled to demand their rights as a member despite the fact that they refuse to pay the association dues. However, this does not mean that the association has no recourse. Upon the non-paying member’s failure to pay the three
(3) cumulative association dues despite demand, the board of directors of your association may
declare them as delinquent. Such declaration will effectively suspend their right to enjoy the rights and privileges of a member, and burden them with other sanctions as may be provided in your association bylaws.
To declare the delinquency of a member, the board or a designated committee should comply with the procedures laid down in the rules, which include written notice of the charge to the concerned member with a directive to explain in writing within 15 days from receipt of notice, hearing and deliberation of the case, and majority vote of all members of the Board (Sec. 14, Id.).
Hope this helps.