Disqualification of a director of a homeowner's association

Disqualification of a director of a homeowner’s association

Dear PAO,

I own a house and lot inside a subdivision in Pasig City, where I am a member of the Board of Directors of its registered homeowner’s association (HOA). Last month, I bought another residential property in the neighboring subdivision where my current house is. I would like to know if, as a member of the HOA of the subdivision where my second property is located, I am qualified to be a member of its Board of Directors even if I am already a member of the Board of Directors of another HOA.

Lynette

Dear Lynette,

Please be informed that Section 11 of Republic Act (RA) 9904, otherwise known as the “Magna Carta for Homeowners and Homeowners’ Associations,” provides:

“Section 11. Board of Directors or Trustees. – The by-laws of the association shall provide for the qualifications and number of the directors or trustees that will comprise the board.”

Moreover, Section 73 of Department Order 2021-007, Series of 2021, or the “2021 Revised Implementing Rules and Regulations of Republic Act 9904,” issued by the Department of Human Settlements and Urban Development (DHSUD), provides:

“Section 73. Disqualifications of Trustees or Directors, and Officers. A trustee or director and/or officer of an association shall not have any of the following disqualifications:

“xxx

“e. Members who are trustees or directors and/or officers of another registered homeowners association;” (Emphasis supplied)

It is clear from the foregoing that the power to determine the qualifications, as well as the number of directors or trustees that will comprise the board, is given to the HOA through its by-laws. Nevertheless, the Implementing Rules and Regulations of RA 9904 provides the list of circumstances/conditions for the disqualification of a trustee/director, or officer of an association. One of the listed circumstances for disqualification is when a member is a trustee, director and/or officer of another registered homeowners’ association. Other grounds for disqualification provided under the same law include the commission of fraud, falsification, defalcation, or any other act inimical to the interests of the association, and failure to turn over the books, funds, records and properties of the association in their custody to the new officers, among others.

In your case, considering that you are a member of the Board of Directors of the HOA where your residential property is located, you are therefore disqualified to be a member of the Board of Directors of the HOA where your newly acquired residential property is located. It is worth noting that the disqualifications listed above are not an exclusive list, as the HOA, through its by-laws, may provide for reasonable disqualifications in addition thereto.

We hope that we were able to answer your queries. This advice is based solely on the facts you have narrated and our appreciation of the same. Our opinion may vary when other facts are changed or elaborated on.

Editor’s note: Dear PAO is a daily column of the Public Attorney’s Office. Questions for Chief Acosta may be sent to [email protected]