FREQUENTLY ASKED QUESTIONS
What is the Homeowners’ Association Dues?
It is an amount of money collected that must be paid monthly by all members of the association, the HOA’s collect these fees for the
maintenance and improvement of the village, the By-laws of the Association states:
Article VIII Fees & Dues Section 1 Association Maintenance Dues – A Monthly Association Maintenance Due in an amount to be determined by the Board of Directors and computed based on the area of the lot owned by the member or by virtue of which he holds membership shall be collected from every member to defray the administration and operational expenses of the Association.
How much is the Homeowners’ Association Dues?
The Association dues is Php 6.50 per square meter per month. For example, for a lot whose size is 300 square meters; the monthly association dues will be: (300 square meters x (Php 6.50 per square meter per month)) = Php 1,950.00. It is computed by summing up the projected over-all operational expenses of the village for the year divided by the total lot area of the property.
Who has the obligation to form the HOA?
The developer, is among those who has the obligation to form the HOA as indicated in Republic Act 9904 (Magna Carta for Homeowners’ and Homeowners’ Association).
What is the importance of Homeowners’ Association Dues?
It is utilized as funds for the operational expenses, maintenance & upkeep of the common areas in the village and future projects that will benefit the members of the Association. Examples of operational expenses are:
1) Deployment of Village Security Guards
2) Deployment of Housekeeping and Grounds Maintenance Personnel
3) Regular collection of garbage
4) Deployment of Village Manager and Village Admin Assistant
5) Implementation of Preventive Maintenance program for all common areas
6) Pest control services for common areas
7) All operational & maintenance expenses of the village such as electricity, water, and other utility services that will benefit the Village
What will happen if a member of the Association will not pay the Association Dues?
It will have a detrimental effect to the over-all operation of the association, and can lead to a decrease in the deployment of the Security Guards, Maintenance Personnel and Admin Personnel which will in turn cause a decrease in the value of the entire property.
What will I gain in return if I will pay my Association dues regularly?
For paying the Association dues regularly, you will be an Association member in good standing.
The By-Laws of the Association states that every member in good standing will have the following rights and privileges:
1. To vote on all matters brought before the members.
2. To be eligible to any elective or appointive office of the association subject to the qualifications as provided for in the By-Laws.
3. To participate in association meetings, elections and referenda, as long as bonafide membership subsists.
4. To avail of and enjoy all basic community services and the use of common areas and facilities.
5. To inspect association books and records during office hours and to be provided upon request with annual reports, including financial statements.
6. To demand and promptly receive deposits required by the association as soon as the condition for the deposit has been complied with or the period has expired.
7. To enjoy all the rights as may be provided in the By-Laws.
Why do I need to pay the association dues, even if I don’t have any house constructed on my lot and I am not residing in the subdivision?
The payment of association dues is for all the members of the Association whether those with a house constructed in the village or those who are owners of open lots.
Based on the By-Laws of the Association Article III Membership Section 1 Scope of Membership - Each lot owner in the village automatically becomes a member of the association, provided that, should one lot be owned by more than one person, then the
owners must agree and notify the association in writing, as to who is to be considered as the registered owner for the purpose of membership in the association.
Regular payment of Association Dues by the members ensures that the village administration collects a sufficient amount to be used for the maintenance and smooth operation of the village. This will contribute to the continued appreciation of property values within the village.
Furthermore, the Magna Carta for Homeowners and Homeowners’ Associations (Republic Act 9904) defines an Association member and a Homeowner as follows:
Section 3: Definition of Terms
(c) “Association member” refers to a homeowner who is a member of the association where his/her housing unit or lot is situated and those defined in the articles of incorporation and by-laws of the association.
(emphasis supplied)
(j) “Homeowner” refers to any of the following:
1) An owner or purchaser of a lot in a subdivision / village
(emphasis supplied)
If I want to sell my lot in the future, can I opt not pay the association dues?
No, you need to pay all dues, assessments and fees to obtain clearance from the officers of the association.
The Association By-Laws clearly state: Article III Membership Sec. 7 Ownership Transfers – Any member who shall transfer, convey or otherwise dispose of his lot in favor of another shall be required to notify the Board of Directors of such transfer and obtain a certification from the Board of Directors that all dues, assessments and other fees levied upon the member have been fully paid.
The foregoing conditions shall be annotated in the respective Transfer Certificates of Title of all members of the Association.
No Conveyance of any lot shall be binding upon the Association unless so accompanied by the foregoing certification, signed by the Association’s President or such other officer of the Association might authorize, that all dues, assessments and other fees levied upon the member have been fully paid.
Furthermore, in the Contract to Sell it is stated:
11. Transfer of rights (a) The BUYER agrees not to sell, cede, lease, transfer or in any other manner dispose of his rights and obligations under this contract without the prior written consent of, and under such terms and/or conditions as may be required or imposed by the SELLER and if payment of thirty (30%) of the total contract price of the property has been made, prior clearance from the pertinent Homeowners’ Village Association or Merchants’ Association (the “Association”), as applicable, would also be required.
''I will not pay my Association Dues until the perimeter fence has been completed and the streetlights has not been installed (or any other facilities / amenities have been built).'' ''I will not pay my Association Dues until the title to my lot has been issued'.''
The above mentioned issues should not be a reason for not paying the association dues. The issuance of titles and completion of the village facilities and amenities are the obligation of the developer which is a separate entity from the Homeowners’ Association.
What is the main duty of Landco and the Property Manager in the subdivision?
Landco is the owner of the land which has the responsibility for its development while the Property Manager coordinates with the Homeowners’ Association and it also provides guidance to the Association in running the property; its duty is to implement the rules and regulations imposed by the Association’s Board of Directors in accordance with RA 9904, the Association By-laws, the Deed of Restrictions of the Village and the Contract to Sell, with a goal to provide smooth operations and orderliness of the property.
What will I expect if I will pay my HOA dues regularly?
a) Proper landscape maintenance
b) Proper security deployment
c) Regular equipment maintenance
d) Repair and maintenance of common areas
e) Regular garbage collection
f) Special village events such as Christmas Party, Halloween Trick-or-Treat activity
The owner of the lot is my son/daughter/parents/etc. who is residing abroad, how would they pay the association dues?
You can remind them to pay association dues, and give them the HOA account numbers and details as follows:
Who and how did they decide to select and hire a Property Management company?
The Association By-Laws prescribes that the business and affairs of the Association shall be managed by the Board of Directors which shall exercise all the powers of the Association, among which is to appoint a Village Manager and a Property Management team.
The welcome letter quoted a “House Rules and Regulations”. Who decided on what to put on the House Rules? Who developed the house rules and regulations?
The village House Rules and Regulations was developed by the Property Manager and was approved by the different Homeowners’ Association Board of Directors.
How did your company come up with the amount for the monthly HOA fees? This is also supposed to be decided by the Board of Directors and home owners based on a CPA’s recommended amount. We have not received any information on what the projected monthly expenses will be. How about emergency funding?
The amount of monthly Association dues was computed based on the overall projected expenses for the year divided by the total lot area of the property. The monthly Association dues was approved by the HOA Board of Directors including the budget for the entire year. Emergency funding can be included in the approved budget or as advances by the Developer (Landco).
How much and how did they come to the amount of the “one-time association member’s equity”? As far as I know, one-time association member’s fees is normally for high-end golf course private clubs. What do we have to support this?
The one-time member’s equity or joining fee is collected as start-up fund for the operation of the Homeowners’ Association as justified and indicated in the approved Association By- Laws:
Article 3 Membership Section 2 Membership Fee – All members of the association shall be required to pay an amount equivalent to not less than 3 months of the current amount of association dues imposed in the village, such amount to constitute its initial working capital.
From what I have been told, there are only a handful of built and completed houses at my village. How can such a low number of houses in the village justify having a HOA?
The triggering factor to form the HOA is not only the number of houses built in the Village but also the number of lots sold.
Furthermore, the Contract to Sell indicates that the buyer accepts membership in the Association after payment of the first monthly amortization after payment of the reservation fee or as mandated by the Association.
How will the HOA monthly fee be calculated for homes already built on the property compared to property owners not having a house built on the property yet?
The Contract to Sell indicates that the buyer accepts membership in the Association after payment of the first monthly amortization after payment of the reservation fee or as mandated by the Association.
After the HOA is formed and the buyer accepts membership in the association, he / she is obliged to pay the Association dues. The Association dues is computed by summing up the projected over-all operational expenses of the village for the year divided by the total lot area of the property.
The Association dues computation is the same for members who have homes in the village and for members who have lots.