02/09/2026
The (SC) has ruled that homeowners’ associations (HOAs) may impose sanctions or penalties on members who fail to pay association dues, but it cannot deprive them of their right to use common areas, including subdivision roads.
In a Decision penned by Associate Justice Alfredo Benjamin S. Caguioa, the SC’s Third Division dismissed the petition filed by the former directors and officers of La Costa Brava Homeowners’ Association, Inc. (Association).
Spouses Linley and Juvy Retirado failed to pay their monthly association dues from 2016 to 2021. Consequently, the Association declared them delinquent and enforced several penalties.
Among the sanctions were banning of grass-cutting or maintenance within five meters from the property; reducing the frequency of garbage collection; prohibiting food, package, appliance, and gas deliveries to their residence; preventing taxis, tricycles, and ride-hailing vehicles from entering the subdivision to fetch them; barring guests from entering the subdivision to visit them; and imposing delivery fees on trucks and vehicles bringing supplies and materials to their construction site.
The spouses filed a complaint before the Human Settlements Adjudication Commission (HSAC), which ruled that the sanctions violated Republic Act No. (RA) 9904, or 𝘵𝘩𝘦 𝘔𝘢𝘨𝘯𝘢 𝘊𝘢𝘳𝘵𝘢 𝘧𝘰𝘳 𝘏𝘰𝘮𝘦𝘰𝘸𝘯𝘦𝘳𝘴 𝘢𝘯𝘥 𝘏𝘰𝘮𝘦𝘰𝘸𝘯𝘦𝘳𝘴’ 𝘈𝘴𝘴𝘰𝘤𝘪𝘢𝘵𝘪𝘰𝘯𝘴. The HSAC also permanently disqualified the officers responsible from holding any position in the Association.
The officers appealed to the Court of Appeals, which dismissed their petition.
The SC affirmed the HSAC’s ruling on the penalties.
Section 7(a) of RA 9904 grants homeowners two distinct rights: the right to enjoy basic community services and facilities, and the right to use common areas.
The SC clarified that HOAs may impose sanctions on delinquent members under their bylaws. However, this authority is not absolute. HOAs can restrict delinquent members from accessing or enjoying certain community services and facilities, but they cannot deny the right to use common areas like roads.
Applying this distinction, the SC held that restricting deliveries, transportation, and guests effectively violated the spouses’ right to use the subdivision roads.
The SC also rejected the officers’ claim that their violation was not grave enough to warrant permanent disqualification from holding office in the Association. The SC ruled that restricting access to subdivision roads for basic needs such as the delivery of goods and transportation caused great harm and dangerous consequences—a violation serious and grave enough to justify the permanent disqualification.
Read the full text of the press release at https://sc.judiciary.gov.ph/sc-homeowners-associations-may-sanction-delinquent-members-but-cannot-restrict-use-of-subdivision-roads/
Read the full text of the Decision at https://sc.judiciary.gov.ph/278137-reuben-mikhail-p-sabig-et-al-vs-court-of-appeals-18th-division-cebu-city-and-spouses-linley-and-juvy-retirado/
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