Manila: The Supreme Court (SC) has ruled that a homeowners' association (HOA) may sanction members who fail to pay monthly dues, but it cannot ban them from using the subdivision's common areas, including roads. This decision comes as a resolution to a legal battle involving the rights of homeowners and the powers of homeowners' associations.

According to Philippines News Agency, the SC made this statement while affirming the Court of Appeals' (CA) decision, which dismissed a petition filed by HOA officers challenging a ruling from the Human Settlements Adjudication Commission (HSAC). The ruling is grounded in the provisions of Republic Act 9904, also known as the Magna Carta for Homeowners and Homeowners Associations. This act allows homeowners' associations to sanction delinquent members by denying access to basic community services and facilities, but it explicitly prohibits denying access to common areas such as roads.

The ruling was prompted by a case brought forward by homeowners Linley and Juvy Retirado against the directors and officers of La Costa Brava Homeowners' Association Inc. (LCBHAI). The association had imposed several sanctions due to reported nonpayment of monthly dues from 2016 to 2021. These sanctions included banning grass cutting near delinquent members' properties, reducing garbage collection frequency, and restricting deliveries and entry of vehicles associated with delinquent members.

In 2023, the HSAC special adjudicator determined that these sanctions were unlawful as they restricted road use and passage, which are considered common areas. Consequently, the HSAC ordered the permanent disqualification of the officials from holding office in LCBHAI.

The CA supported this decision, stating that while HOAs have the right to sanction members for nonpayment of dues, such actions must adhere to the legal framework established under RA 9904. This ruling underscores the importance of balancing the authority of homeowners' associations with the rights of individual homeowners.