Homeowners’ Association (“HOA”) Jurisdiction for Separate Subdivision Units in the Philippines
1. Statutory Matrix
| Key Issuance | Core Coverage | Current Regulator |
|---|---|---|
| Republic Act (RA) 9904 – Magna Carta for Homeowners and Homeowners’ Associations (2010) | Defines HOAs, their rights, powers and liabilities; requires registration; vests them with authority over common areas and member discipline | Department of Human Settlements & Urban Development (DHSUD) - Homeowners Associations & Community Development Bureau (HOACDB) (eLibrary) |
| RA 11201 (2019) & its IRR | Creates DHSUD and Human Settlements Adjudication Commission (HSAC), re-absorbing HLURB’s regulatory and quasi-judicial functions | DHSUD for registration & supervision; HSAC for adjudication of disputes (Lawphil) |
| PD 957 & PD 1216 | Developer duties in subdivision projects; donation of open spaces; eventual turnover to HOA/LGU | DHSUD (Real Estate Development Regulation Bureau) |
| RA 4726 – Condominium Act | Governs condominium corporations; applied by analogy only when a subdivision creates clustered townhouse “condo-type” titles | SEC for condominium corporations |
| DHSUD Department Order 2021-007 & Department Circular 2024-018 | General rule: only one HOA may be registered for every “subdivision/village or defined community,” unless DHSUD expressly allows multiple HOAs for “compelling technical or practical reasons” (e.g., non-contiguous phases) (DHSUD, DHSUD) | |
| HLURB Board Res. 771-2004 | Prescribes merger/consolidation of two or more HOAs; still applied by DHSUD pending new rules (DHSUD) |
2. Who & What an HOA May Regulate
Mandatory constituency – Every titled lot or housing unit inside the approved subdivision plan falls within the HOA’s territorial jurisdiction once the owner becomes a “homeowner” under §3(b) RA 9904, whether or not he signs up for membership.
Powers under §20 RA 9904 include:
- enforcement of deed restrictions & subdivision/village rules;
- administration, maintenance, and improvement of common areas (roads, parks, guard-houses, perimeter walls);
- collection of assessments and imposition of reasonable fines;
- security and traffic control inside the subdivision even after roads are donated to the LGU, so long as rules remain reasonable and non-discriminatory – affirmed by the Supreme Court in Kwong Management, Inc. v. Villacisneros (G.R. 211353, 22 Jan 2019) and echoed by former CJ Panganiban (eLibrary, Inquirer Opinion).
Limitations – HOAs cannot:
- regulate areas outside the approved subdivision boundary;
- enforce rules that contravene national law, zoning ordinances or LGU traffic schemes;
- impede easements of ingress/egress granted in titles or approved plans;
- act as de facto LGU or police power repository.
3. “Separate Subdivision Units”: When Does Jurisdiction Split?
| Scenario | Governing Rule | Practical Effect |
|---|---|---|
| Phased Development (Phase 1, Phase 2, etc.) under one master plan | Phases are usually covered by one DHSUD licence to sell & a single subdivision plan → one HOA | A single HOA board may create sub-HOA committees per phase, but cannot compel a phase to secede without DHSUD approval |
| Physically non-contiguous enclaves sold/licensed as separate subdivision projects | Each project may form its own HOA or agree to an umbrella federation under §§4 & 25 RA 9904 | Jurisdiction is geographic; disputes between HOAs go to HSAC as inter-association controversies |
| “Sub-Villages” carved out only by internal house rules | Disallowed by DO 2021-007: multiple HOAs in the same subdivision need prior DHSUD clearance citing “practical necessity” | Creating splinter HOAs without clearance renders the second group unregistered and its officers liable for §36 RA 9904 penalties |
| Townhouse blocks titled under the Condominium Act but sitting beside subdivision lots | The townhouse block forms a condominium corporation (SEC-registered); the adjacent lots belong to the HOA | Each entity rules its own common areas; they may execute a cross-easement agreement for shared roads/gates |
4. Adjudicatory Jurisdiction over Disputes
HSAC exclusive original jurisdiction over:
- intra-association disputes (member ↔ HOA, member ↔ member)
- inter-association disputes (HOA ↔ HOA or federation)
- controversies on registration, elections, assessments, open-space use, easements, mergers/consolidations (hsac.gov.ph, Lawphil)
HSAC procedure – Summary, paper-based pleadings; RAB decision within 60 days; appeal to Commission en banc then to Court of Appeals on pure questions of law (§30–34 IRR RA 11201).
Barangay Katarungang Pambarangay – Only personal disputes (e.g., slander, nuisance) must pass through barangay mediation; HOA governance issues go straight to HSAC (see Makati Palace Hotel Homeowners Association v. Esguerra, G.R. 171763, 24 Jun 2009 ) (Lawphil).
5. Enforcement Tools Inside Separate Units
| Tool | Legal Source | Notes |
|---|---|---|
| Fines / suspension of privileges | §20(f) RA 9904 | Must observe due process (notice-hearing-resolution) and record in HOA books |
| Lien over title for unpaid assessments | §20(h) RA 9904; PD 957 §21 | Annotated on title upon HSAC order; foreclosure via Rule 68, Rules of Court |
| Gate access cards / stickers | Upheld in Kwong; must not bar emergency or LGU vehicles (eLibrary) | |
| Civil action for injunction | Rules of Court + §34.2(d) IRR RA 11201 | Usually lodged with HSAC first; RTC only if pure civil ownership issues |
6. Merging, Splitting or Federating HOAs
Merger or consolidation requires:
- Majority vote of each constituent HOA BOD and ⅔ of each membership;
- Plan of merger + amended articles & by-laws;
- DHSUD approval and issuance of a new certificate of registration. (DHSUD)
Dissolution of an HOA located inside an active subdivision is rarely allowed; DHSUD demands proof that another qualified entity will assume common-area management, or that the LGU has formally accepted the donation of all open spaces.
Federations / confederations (city or regional level) are voluntary unions of at least five (5) HOAs for “matters of mutual concern” (§25 RA 9904). They do not usurp the individual HOA’s territorial jurisdiction; rather, they coordinate common utilities, security command centers, or city-wide advocacy.
7. Selected Jurisprudence Shaping HOA Reach
| Case | G.R. No. / Date | Doctrine |
|---|---|---|
| Santos v. National Housing Authority | 149417 / 15 Jun 2004 | HLURB lacked basis to compel developer to cede additional open space; HOA jurisdiction does not extend to altering the approved subdivision plan. (Lawphil) |
| MLPAI v. Fajardo | 171763 / 24 Jun 2009 | HLURB (now HSAC) retains primary jurisdiction in HOA disputes even if issues overlap with civil contracts. (Lawphil) |
| Kwong Management | 211353 / 22 Jan 2019 | Upheld HOA’s right to regulate ingress/egress for security after road donation; regulation must be reasonable and time-bound. (eLibrary) |
| Woodridge Homes v. ARPO | 164795 / 25 Apr 2017 | Confirmed HLURB jurisdiction over developer-HOA dispute on defective amenities; HOA may sue developer in representative capacity. (Lawphil) |
8. Practical Guidance for Stakeholders
| Actor | Checklist |
|---|---|
| Developers | ● Disclose at marketing stage whether the project will consist of several subdivision units or phases with separate HOAs. ● Turn over common areas with clean title & audited funds. |
| Prospective HOA Boards | ● Verify DHSUD project data sheet to see exact metes-and-bounds of your jurisdiction. ● Before creating a break-away HOA, secure HOACDB clearance and conduct a feasibility study (membership size, budget, common-area boundaries). |
| Individual Lot Owners | ● Register with the existing HOA to enjoy voting rights; non-members are still bound by subdivision restrictions and assessments. ● When disputing an HOA act, exhaust internal remedies first, then file with HSAC RAB. |
| LGUs | ● Coordinate with HOAs on traffic rerouting or road repairs; HOA rules cease where barangay roads begin. |
9. Conclusion
In the Philippine setting, territorial jurisdiction follows the DHSUD-approved subdivision map. As a rule, one—and only one—HOA governs that territory, unless DHSUD grants an exception because the “subdivision” is really a mosaic of physically detached units. Within those boundaries, the HOA enjoys extensive but not unlimited authority: it may enforce restrictions, collect dues, and even regulate traffic, but it cannot annex adjacent blocks, override national statutes, or supplant LGU powers.
Where overlapping or splinter claims arise, the Human Settlements Adjudication Commission now provides the dedicated forum for speedy, expert resolution. Understanding this layered framework—statutory, regulatory, and jurisprudential—is essential for developers launching multi-phase estates, boards mulling a break-away HOA, and homeowners asserting their rights in the ever-evolving Philippine residential landscape.