Are There Fees for Urban Poor Association Membership? Legal Basis and LGU Programs (Philippines)

Are There Fees for Urban Poor Association Membership? Legal Basis and LGU Programs in the Philippines

Introduction

In the Philippines, urban poor associations play a crucial role in advocating for the rights and welfare of marginalized communities, particularly in areas of housing, land tenure, and social services. These associations are often formed by informal settlers, low-income families, and other underprivileged urban residents to collectively address issues such as relocation, access to basic services, and participation in government programs. A common question arises regarding whether membership in these associations entails fees, and if so, under what legal framework such fees are imposed or regulated. This article examines the legal basis for urban poor associations, the potential imposition of membership fees, and the role of Local Government Units (LGUs) in supporting related programs, drawing from key Philippine laws and policies.

The discussion is grounded in the Philippine Constitution, Republic Act (RA) No. 7279 or the Urban Development and Housing Act of 1992 (UDHA), RA No. 7160 or the Local Government Code of 1991, and other relevant statutes. It highlights the balance between organizational sustainability and the principle of accessibility for the urban poor, ensuring that fees do not become barriers to participation.

Legal Basis for Urban Poor Associations

Urban poor associations are not merely informal groups but are recognized under Philippine law as essential mechanisms for community empowerment and social justice. The 1987 Philippine Constitution provides the foundational basis, particularly in Article XIII on Social Justice and Human Rights. Section 9 mandates the State to promote a just and dynamic social order that ensures the prosperity and independence of the nation while freeing people from poverty through policies that provide adequate social services, promote full employment, and ensure a rising standard of living. This includes the right of the urban poor to organize for collective action.

The primary statutory framework is RA 7279 (UDHA), enacted to provide a comprehensive program for urban development and housing. Under Section 23 of UDHA, urban poor residents are encouraged to form associations or cooperatives to participate in housing programs, such as the Community Mortgage Program (CMP). These associations serve as originators or beneficiaries in land acquisition, site development, and housing construction. The law defines "urban poor" as individuals or families whose income falls below the poverty threshold as determined by the National Economic and Development Authority (NEDA), residing in urban or urbanizable areas without secure tenure.

Additionally, RA 7160 (Local Government Code) devolves powers to LGUs to address local concerns, including the welfare of the urban poor. Section 17 outlines basic services and facilities that LGUs must provide, such as social welfare services for the disadvantaged, which can include support for community organizations. The Code empowers cities and municipalities to enact ordinances regulating associations and ensuring their alignment with national policies.

Other relevant laws include RA 9904 (Magna Carta for Homeowners and Homeowners' Associations), which, while primarily for formal homeowners, has implications for urban poor groups transitioning to formalized communities. Executive Order No. 153 (2002) institutionalized the Socialized Housing Finance Corporation (SHFC), which administers the CMP and requires beneficiary associations to be duly registered with the Housing and Land Use Regulatory Board (HLURB) or the Securities and Exchange Commission (SEC) for cooperatives.

Registration is a key legal requirement. Urban poor associations must typically register as non-stock, non-profit corporations under the Revised Corporation Code (RA 11232) or as cooperatives under RA 9520 (Philippine Cooperative Code). This formalization grants them legal personality to enter contracts, receive government assistance, and manage funds, including membership contributions.

Membership Fees in Urban Poor Associations: Imposition and Regulation

The question of fees for membership in urban poor associations is nuanced, as Philippine law does not explicitly mandate or prohibit such fees but regulates them to prevent exploitation and ensure inclusivity.

General Principles on Fees

Under UDHA, associations are formed to empower the urban poor, and any fees must align with the law's intent to provide affordable housing and services. Section 24 of UDHA emphasizes beneficiary participation without undue financial burden. While associations may collect dues or fees for operational sustainability—such as administrative costs, community projects, or loan repayments—these must be reasonable and voluntary.

In practice, many urban poor associations under the CMP require minimal membership fees or equity contributions. For instance, the CMP guidelines from the SHFC stipulate that beneficiaries contribute equity equivalent to at least 10% of the loan amount, but this is not a "membership fee" per se; rather, it is a program-specific requirement for housing loans. Monthly amortizations and association dues are separate, often set at affordable levels (e.g., PHP 50–200 per member) to cover maintenance, utilities, or contingency funds.

The Philippine Cooperative Code (RA 9520) allows cooperatives, which many urban poor associations adopt as their form, to collect membership fees, share capital, or patronage refunds. Article 26 requires that fees be fair and non-discriminatory. However, for urban poor cooperatives, exemptions or subsidies may apply under socialized housing policies.

Legal Safeguards Against Excessive Fees

To protect members, several safeguards exist:

  • Transparency and Consent: The Revised Corporation Code (Section 47) requires associations to have bylaws that specify fees, approved by members. Fees cannot be imposed without majority consent at a general assembly.

  • Prohibition on Exploitation: RA 7279's Section 39 penalizes profiteering in housing programs, which could extend to associations charging exorbitant fees. The Department of Human Settlements and Urban Development (DHSUD) oversees compliance.

  • Indigency Considerations: Under the Local Government Code, LGUs may waive fees for indigent members through ordinances. The Magna Carta for the Poor (RA 11291) reinforces this by mandating priority access to services without cost barriers.

  • Judicial Oversight: Courts have intervened in cases of fee disputes. For example, in jurisprudence like Federation of Free Workers v. Inciong (though labor-related), principles of equity apply, ensuring fees do not disenfranchise the poor.

In summary, while fees are permissible for sustainability, they are not mandatory under national law and must remain minimal. Many associations operate on voluntary contributions or government subsidies to avoid alienating members.

LGU Programs Supporting Urban Poor Associations

LGUs are pivotal in implementing national policies at the grassroots level, often providing programs that either subsidize or eliminate the need for membership fees in urban poor associations.

Mandated LGU Responsibilities

Under RA 7160, LGUs must formulate Local Shelter Plans integrating urban poor needs. Section 444 (for municipalities) and Section 455 (for cities) empower mayors to support community organizations. This includes funding for association formation, training, and projects.

Specific Programs and Initiatives

  • Community Mortgage Program Localization: Many LGUs partner with SHFC to localize CMP, covering initial costs like surveying or legal fees, reducing the burden on associations. For example, in highly urbanized cities, LGUs may allocate budgets from the 20% development fund (IRA share) for urban poor initiatives.

  • Relocation and Resettlement Programs: Under UDHA's Section 28, LGUs handle evictions and relocations, often requiring associations to organize without fees. Programs like the People's Plan allow communities to design their resettlement, with LGU funding for association activities.

  • Social Services Integration: LGUs integrate urban poor associations into broader programs, such as the Pantawid Pamilyang Pilipino Program (4Ps) or Kapit-Bisig Laban sa Kahirapan (KALAHI-CIDSS), where community groups receive grants without membership costs.

  • Ordinance-Based Support: Cities like Quezon City have ordinances (e.g., Ordinance No. SP-1708) establishing Urban Poor Affairs Offices that assist in association registration and provide seed funds, waiving fees for indigent groups. Similarly, Manila's urban poor programs under its charter emphasize free organizational support.

  • Partnerships with NGOs: LGUs often collaborate with non-governmental organizations (NGOs) like Gawad Kalinga or Habitat for Humanity, which help form associations and cover operational costs through donations.

Challenges include inconsistent implementation across LGUs, with rural-urban divides affecting program availability. However, the DHSUD's National Housing Authority (NHA) provides oversight, ensuring LGUs comply with UDHA.

Conclusion

Urban poor associations in the Philippines are vital for advancing social justice, backed by a robust legal framework that promotes their formation without imposing burdensome fees. While minimal contributions may be collected for sustainability, laws like UDHA and the Local Government Code emphasize accessibility, with safeguards against exploitation. LGUs play a frontline role through programs that subsidize or eliminate fees, fostering inclusive community participation. Ultimately, the goal is to empower the urban poor to achieve secure housing and improved livelihoods, aligning with the constitutional mandate for a poverty-free society. Stakeholders, including associations and LGUs, must continually ensure that fees, if any, do not hinder this objective.

Disclaimer: This content is not legal advice and may involve AI assistance. Information may be inaccurate.