Dear Atty. Gab

From: Lourdes Macapagal <lourdes.macapagal123@emailprovider.com>
To: Atty. Gab <askattygab@gaboogle.com>
Subject: Musta Atty! Urgent Question about my HOA and Housing Rights

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Musta Atty!

I’m writing to you because I’m in a very worrying situation with my homeowners’ association, “Pag-asa Homes Phase 2,” here in Calamba, Laguna, and I desperately need some guidance. Our HOA was formed a few years ago so we could acquire the land we’ve been living on for decades through the government’s Community Mortgage Program (CMP). I was one of the original occupants and have always tried to be a member in good standing, paying my regular monthly dues of Php 500.

Recently, the HOA board announced a “special assessment fee” of Php 3,000 for “community improvements” that weren’t clearly explained or agreed upon by the general membership. I, along with a few others, raised questions about this during a poorly attended meeting. Since then, I’ve also missed a couple of subsequent general assemblies because my new job requires me to work night shifts.

Now, I’ve received an informal notice – just a printed letter slipped under my door – stating that I am “delinquent” and “subject to expulsion” for non-payment of the special assessment and non-attendance. They haven’t provided any formal charges, nor have they given me a chance to explain my side or discuss a payment plan for the assessment if it’s truly valid. I’m terrified of losing my home, which I’ve worked so hard for. Can they just expel me like this? Don’t I have a right to a proper hearing or to understand the basis of these fees? I thought the CMP was supposed to help us secure our homes, not make it easier to lose them.

Thank you for your time and any advice you can offer.

Sincerely,
Lourdes Macapagal

Dear Lourdes,

Musta Atty! Thank you for reaching out and sharing your distressing situation. I understand your concerns about the potential expulsion from your homeowners’ association and the impact this could have on your rights under the Community Mortgage Program.

The core issue here revolves around two key aspects: the procedural fairness (due process) your HOA must observe before taking disciplinary actions like expulsion, and your rights and responsibilities as a member of the association, particularly in the context of a socialized housing program. While HOAs have the authority to enforce their by-laws and collect dues, this power is not absolute and must be exercised reasonably and with due regard to members’ rights. Similarly, members benefiting from programs like the CMP have obligations to maintain their good standing within the association to continue enjoying those benefits. It’s a balance of rights and duties on both sides, and understanding this balance is crucial for your next steps.

Defining the Lines: HOA Membership, Due Process, and Your Entitlements

It’s important to recognize that homeowners’ associations, like Pag-asa Homes Phase 2, are generally empowered by their by-laws and relevant laws, such as Republic Act No. 9904 (the Magna Carta for Homeowners and Homeowners Associations), to manage community affairs. This includes setting rules, imposing fees and dues, and implementing disciplinary measures for violations. However, this authority is not unbridled and must be exercised within the bounds of the law, particularly respecting the due process rights of its members.

The cornerstone of fairness in any proceeding, including expulsion from an association, is due process. This essentially means you have the right to be informed of the charges against you and an opportunity to be heard before any adverse action is taken. Philippine jurisprudence consistently upholds this principle:

“The essence of due process is the opportunity to be heard. What the law prohibits is not the absence of previous notice but the absolute absence thereof and the lack of opportunity to be heard.” (Principle established in Philippine Jurisprudence regarding Due Process)

This means your HOA should provide you with a formal written notice detailing the specific violations you are accused of (e.g., non-payment of specific, validly approved fees, or excessive absences from meetings as defined by the by-laws). This notice should also inform you of the proposed penalty, such as expulsion. Following this, you must be given a reasonable chance to present your side, explain any circumstances (like your work schedule affecting meeting attendance or your queries about the special assessment), and offer any evidence in your defense. The opportunity to be heard is fundamental:

“As long as the parties are given the opportunity to be heard before judgment is rendered, the demands of due process are sufficiently met. What is offensive to due process is the denial of this opportunity to be heard.” (Philippine Jurisprudence on the Opportunity to be Heard)

Therefore, an informal letter slipped under your door, without a clear statement of charges or an invitation to a hearing, likely falls short of the due process requirement. You are entitled to a more formal and fair procedure.

On the other hand, membership in an association, especially one that facilitates benefits like those under the Community Mortgage Program (CMP), comes with responsibilities. The CMP is a socialized housing initiative designed to help underserved communities acquire land, but it relies on the collective effort and compliance of all beneficiaries. As such, members are expected to adhere to the association’s by-laws and fulfill their obligations. This typically includes paying membership dues, assessments validly imposed according to the by-laws, and participating in the association’s activities as required.

“Beneficiaries must be reminded that they have to comply with certain requirements and obligations to qualify as beneficiaries and be entitled to the benefits under the program.” (Guidance from Philippine Jurisprudence on Beneficiary Obligations in Socialized Housing)

Your HOA’s by-laws would outline these obligations, including the process for levying special assessments and the rules regarding meeting attendance. If special assessments are properly approved by the majority of members or as prescribed in your by-laws, they generally become binding. Failure to meet these obligations, after due process has been observed, can indeed lead to sanctions, including expulsion. The association has a legitimate interest in ensuring all members contribute, as non-compliance by some can jeopardize the entire community’s standing in the CMP, especially concerning loan amortizations to government financing institutions like the National Home Mortgage Finance Corporation (NHMFC).

Regarding your fear of losing your home, it’s crucial to understand that participation in the CMP and continued enjoyment of its benefits are often contingent upon maintaining good standing in the homeowners’ association. If a member is validly expelled, their right to continue as a beneficiary under the CMP and occupy the lot may be affected. Long-term occupancy, by itself, does not automatically guarantee ownership if the terms of the program or the association’s rules are breached.

“The period during which occupants may have possessed the lots, no matter how long, does not necessarily vest them with any right to claim ownership if such possession was by mere license or tolerance of the owner, and particularly if they fail to meet the conditions for continued beneficial use under a specific program.” (Established Legal Principle in Philippine Jurisprudence on Possessory Rights)

This means that while the CMP aims to provide security of tenure, this is conditioned upon fulfilling the responsibilities that come with it. If the special assessment was validly imposed and you were found to be in default after a fair process, or if your absences violated clear provisions in the by-laws leading to sanctions, these could be grounds for action by the HOA. However, the key is that any such action must follow the correct, fair procedure.

Practical Advice for Your Situation

• Review Your HOA By-Laws: Obtain a copy of your HOA’s Articles of Incorporation and By-Laws. These documents are crucial as they outline the rules for membership, imposition of dues and assessments, grounds for disciplinary action, and the procedure for expulsion. Pay close attention to provisions on special assessments, meeting attendance, and member rights during disciplinary proceedings.
• Formally Request Written Charges and Procedure: Write a formal letter to the HOA Board requesting a detailed written statement of the alleged violations, citing specific provisions of the by-laws. Also, inquire about the official procedure for addressing such allegations, including your right to a hearing.
• Assert Your Right to Be Heard: In your letter, clearly state your request for a formal hearing where you can present your side regarding the special assessment and your meeting absences. Explain your reasons and express your willingness to find a resolution.
• Document Everything: Keep copies of all correspondence with the HOA, notices received, proof of payments for regular dues, and any evidence supporting your case (e.g., work schedule, communications about the special assessment).
• Seek Clarification on Special Assessments: Politely request detailed information about the special assessment – the purpose, the total amount, how it was approved by the membership (e.g., minutes of the meeting where it was voted upon), and the breakdown of expenses.
• Communicate Willingness to Comply (Conditionally): If the special assessment is found to be validly imposed according to the by-laws, and your financial situation is a concern, discuss the possibility of a payment plan with the HOA board.
• Consider Mediation: If direct communication with the board is unproductive, you may explore mediation options. The Department of Human Settlements and Urban Development (DHSUD) has jurisdiction over disputes involving homeowners’ associations and may offer mediation services.
• Seek Legal Counsel: If the situation escalates or if you feel your rights are being significantly infringed upon, consult with a lawyer who specializes in HOA disputes or property law. They can provide advice specific to your circumstances and represent you if necessary.

Lourdes, your situation highlights the delicate balance between an HOA’s need to enforce rules for the common good and an individual member’s right to fair treatment and due process. By understanding your rights and obligations, and by proactively engaging with your HOA in a formal and informed manner, you can better navigate this challenge.

Hope this helps!

Sincerely,
Atty. Gabriel Ablola

For more specific legal assistance related to your situation, please contact me through gaboogle.com or via email at connect@gaboogle.com.

Disclaimer: This correspondence is provided for informational purposes only and does not constitute legal advice. For specific legal guidance tailored to your situation, please schedule a formal consultation.