Eligibility Requirements for Homeowners-Association Officers in the Philippines
A comprehensive legal guide based on Republic Act No. 9904 (the “Magna Carta for Homeowners and Homeowners’ Associations”), its Implementing Rules and Regulations, and the Revised Corporation Code (R.A. 11232).
1. Governing Legal Framework
| Source | Key Provisions on Eligibility |
|---|---|
| Republic Act No. 9904 (2010) | §§ 20–23 set minimum qualifications and disqualifications for members, directors, and officers of a homeowners’ association (HOA). |
| IRR of R.A. 9904 (HLURB Board Res. No. 922-2014) | Expands statutory criteria; prescribes nomination, screening, and election procedures. |
| Revised Corporation Code (R.A. 11232, 2019) | Applies to HOAs as non-stock, non-profit corporations; adds corporate-governance-related disqualifications for directors/officers (§§ 26, 38, 140). |
| DHSUD Circulars & HSAC Rules | Re-issues HLURB rules after agency re-organization (2019–2021); clarify compliance audits and dispute resolution. |
| Local Government & Zoning Ordinances | May impose supplemental, but not inconsistent, requirements (e.g., city ordinances on residency length). |
Note: While R.A. 9904 is specialized, the Revised Corporation Code governs in a suppletory manner—i.e., it fills gaps unless R.A. 9904 provides a contrary rule.
2. Who Elects Whom?
- Members in Good Standing (MIGS) elect the Board of Directors/Trustees (BOD).
- The BOD, at its first meeting, elects the statutory officers—President, Vice-President, Treasurer, Secretary—and any additional officers authorized by the by-laws.
Consequently, eligibility rules operate at two levels:
| Level | Governing Criteria |
|---|---|
| A. Eligibility to run for the Board (candidate-director) | Primarily R.A. 9904 §21 + IRR Rule VII. |
| B. Eligibility to be elected or appointed as an officer from among the directors | Same baseline qualifications plus any office-specific requirements in the by-laws (e.g., Treasurer must be a citizen & resident, and may need a bonding). |
3. Statutory Qualifications for Directors & Officers
| Requirement | Legal Basis | Practical Notes |
|---|---|---|
| 1. Membership in Good Standing | R.A. 9904 §21(a) | Must be listed in the Masterlist; no unpaid dues, fees, or penalties for at least 3 months immediately preceding the election. |
| 2. Age — At least 18 years | R.A. 9904 §21(b) | Corporations Code default age is 18 for directors/trustees. |
| 3. Citizenship | IRR Rule VII §2 | Must be Filipino unless by-laws allow aliens who own units/ lots (in condos, subdivisions where foreign ownership is permitted). |
| 4. Ownership / Residency | R.A. 9904 §3(f), IRR Rule II | Candidate must be (a) registered lot/unit owner, or (b) the spouse/representative of such owner actually residing in the project. |
| 5. Clean Criminal Record | R.A. 9904 §21(c) | No conviction, by final judgment, of a crime involving moral turpitude, graft, or violation of the Corporation Code within the last 5 years. |
| 6. No Conflict-of-Interest Public Office | R.A. 9904 §22 | Incumbent barangay, municipal, city, provincial, or national elective officials cannot concurrently sit as HOA director/officer (to prevent political dominance). |
| 7. Compliance With Mandatory Trainings | IRR Rule VII §6, DHSUD MC 2021-02 | Newly elected directors must complete DHSUD-accredited governance seminar within 90 days; failure bars assumption/continuance in office. |
| 8. Other By-law-Specific Conditions | R.A. 9904 §25 | e.g., term limits, professional expertise for Treasurer, surety bond for those handling funds. |
4. Disqualifications (Automatic Ineligibility or Removal)
| Ground | Statute / Rule | Timing |
|---|---|---|
| A. Arrearages > Three Months | R.A. 9904 §21(a) | Disqualifies candidacy; if incurred after election, leads to automatic suspension until settled. |
| B. Conviction of Specific Offenses | R.A. 9904 §21(c); Corp. Code §26 | Disqualifies or removes upon final judgment. |
| C. Public Elective Position | R.A. 9904 §22 | Immediate vacancy arises once member assumes conflicted public office. |
| D. Adverse Administrative Resolution (e.g., HLURB/HSAC order finding serious mismanagement) | IRR Rule IX | Removal or perpetual disqualification possible. |
| E. Non-Completion of Mandatory Training | IRR Rule VII §6 | Automatic cessation after 90-day grace period. |
| F. Conflict-of-Interest Transactions (self-dealing without member approval) | Corp. Code §31 | May lead to removal & liability. |
| G. By-law Infractions | R.A. 9904 §25 | E.g., exceeding term limits, reneging on oath, repeated absenteeism. |
5. Nomination, Screening, and Election Mechanics (Snapshot)
Notice & Record Dates
- At least 21 days’ written notice to all MIGS (IRR Rule VI).
- Establish Record Date for membership status cut-off (typically 15 days before election).
Nomination Committee
- Chaired by a non-candidate.
- Screens nominees solely on statutory/by-law eligibility; must publish preliminary list.
Challenges & Final List
- Aggrieved parties may file protests within 5 days; committee decides within 7 days.
- Final list posted 7 days before election.
Voting
- One vote per unit/lot, exercised personally or by proxy (if by-laws allow).
- Spouses: either may vote, but not both; in co-ownership, authorized representative needed.
Certification & Reporting
- Election returns plus sworn list of winning directors filed with DHSUD/HSAC within 30 days.
- SEC General Information Sheet (GIS) also updated within 30 days under the Corporation Code.
6. Post-Election Requirements for Officers
| Action | Deadline / Rule |
|---|---|
| Oath of Office before the HOA Secretary or notary | Within 10 days of election. |
| Fidelity Bond (Treasurer & other fund-handlers) | Prior to assumption of duties; amount set by by-laws or BOD resolution. |
| Disclosure of Business Interests | Within 30 days; serves conflict-of-interest checks (Corp. Code §31 analogue). |
| Annual Performance Report to Members | Presented at next regular general assembly; content per IRR Rule VIII. |
Failure to comply may be treated as just cause for removal by a ¾ vote of the BOD or by majority of the members in a special meeting, per R.A. 9904 §24 and by-laws.
7. Term, Tenure, and Vacancies
| Item | Default Rule | By-law Modifications |
|---|---|---|
| Directors’ Term | 2 years and until successors qualify (R.A. 9904 §24). | May shorten but not extend; staggering allowed. |
| Officers’ Term | 1 year unless sooner removed. | Common to limit President to 2 consecutive terms. |
| Vacancy Filling | Remaining directors appoint replacement within 30 days if quorum remains; otherwise members elect. | Some by-laws require special election regardless of quorum. |
8. Intersection with the Revised Corporation Code
R.A. 11232 provisions that supplement HOA governance:
Additional Director Disqualifications (§26)
- Conviction by final judgment of offenses punishable by > 6 years.
- Violation of Securities Regulation Code (R.A. 8799).
Self-Dealing & Conflicted Transactions (§31)
- Contract voidable unless material facts are fully disclosed and approved by ⅔ of the members.
Liability for Wilful Acts (§161)
- Officers who consent to patently unlawful acts or ultra-vires expenditures may be solidarily liable with the HOA.
Derivative & Representative Suits (§s 59-60)
- MIGS may sue directors/officers for breach of fiduciary duties.
9. Selected Jurisprudence & Administrative Rulings
| Case / Ruling | Key Take-Away |
|---|---|
| HLURB Case No. IV6-070-342-2016, Spouses Cruz v. Greenfields HOA | Delinquent dues incurred after candidacy suspend but do not nullify election; suspension lifted upon full payment. |
| HSAC Adm. Case 2022-AA-015, DHSUD v. BOD of Villa Alegre HA | Failure to file GIS and annual financial report for 3 consecutive years bars re-election of incumbent directors. |
| SC G.R. No. 228688 (2020), People v. Go (dictum) | Clarified that R.A. 9904 is a special law; corporate-crime provisions of the Revised Penal Code may apply in addition where funds are misappropriated. |
10. Best-Practice Compliance Checklist
| Timing | Responsible | Action |
|---|---|---|
| Pre-Election | Secretary & NomCom | Verify MIGS list, post eligibility guidelines in common areas. |
| During Election | Election Committee | Enforce one-vote-per-unit rule; secure ballots. |
| Immediately After | Newly elected BOD | Pass resolution confirming officers; schedule DHSUD seminar. |
| Quarterly | Treasurer | Circulate delinquency list to warn potential candidates early. |
| Annually | President | Deliver State-of-the-HOA address covering finances, projects, and compliance. |
11. Key Take-Aways
- Membership in good standing is the gateway criterion; delinquency disqualifies or suspends.
- Public elective officials are categorically barred to preserve HOA independence from partisan politics.
- The Revised Corporation Code broadens disqualifications and imposes fiduciary liabilities that HOA leaders must heed.
- Completion of the mandatory governance seminar is now a statutory condition precedent to valid tenure.
- By-laws may impose additional, but never less stringent, standards—especially on tenure limits, bonding, and professional qualifications.
Bottom line: Before running for office—or appointing someone—an HOA should run a five-point check: membership standing, age & citizenship, residency/ownership, criminal & conflict screening, and training compliance documentation. Observed diligently, these rules foster transparent, accountable, and community-centric association governance.