HOA can impose property construction restrictions

Can a homeowners' association restrict me to only build a two-story house?. Are these kinds of restriction allowed?

Yes, homeowners' associations (HOAs) and exclusive subdivisions often have restrictions on home construction, including height limits, architectural styles, and building materials. These rules are typically outlined in the deed of restrictions, subdivision rules, or master deed that you agreed to when purchasing the lot.

One of the most important features of Philippine Property law is the right to ownership which is protected by Republic Act (RA) 386, otherwise known as the "Civil Code of the Philippines." Articles 427 and 428 of the Civil Code of the Philippines define ownership as the independent and general right of a person to control a thing, particularly in terms of use, possession, enjoyment, disposition, and recovery, subject only to certain limitations established by law or agreements, viz.:

"Article 427. Ownership may be exercised over things or rights.

"Article 428. The owner has the right to enjoy and dispose of a thing, without other limitations than those established by law.

"The owner has also a right of action against the holder and possessor of the thing in order to recover it."

Relative thereto, Sections 10 and 18 of Republic Act (RA) 9904, otherwise known as the "Magna Carta for Homeowners and Homeowners' Association," provide for the rights and powers of the homeowners' associations (HoAs), to wit:

"Section 10. Rights and Powers of the Association. - An association shall have the following rights and shall exercise the following powers:

(j) Cause compliance with regard to height regulations, easements, use of homes, buildings, edifices, or structures that may be built within the subdivision, in accordance with the National Building Code, zoning laws, HLURB rules and regulations, existing local ordinances, and existing deeds of restriction;"

Clearly, our laws recognize the owner's right to control the property in line with these principles, subject to any limitations imposed by contracts, local ordinances, or zoning rules and regulations. Relative to validity of restrictions in deeds or contracts, Cezar Yatco Real Estate Services, Inc. vs. Bel-Air Village Association, Inc. GR 211780, 21 November 2018, with Honorable Associate Justice Marvic M.V.F. Leonen as ponente, is instructive:

"The Deed Restrictions is a restrictive covenant that governs how lot owners can use or enjoy their properties. It was annotated on the land titles issued to the lot owners and it is not disputed that lot owners are bound by these annotations under Section 39 of Act 496, or the Land Registration Act, which provides:

"Section 39. Every applicant receiving a certificate of title in pursuance of a decree of registration, and every subsequent purchaser of registered land who takes a certificate of title for value in good faith, shall hold the same free of all encumbrance except those noted on said certificate, and any of the following incumbrances which may be subsisting, ..."

Thus, if there is indeed a validly instituted restriction on the number of stories or floors that can be built on the property that you purchased, then the same may be imposed or implemented by the HoA.

Corollary, as a buyer, you are duty-bound to comply with such restriction as it forms part of your contractual obligation when you purchased the subject property. Although, as owner of the property, you have rights to use and develop it, these rights are not absolute and must comply with laws, contracts, local ordinances, and zoning rules and regulations.

Source: Manila Times

Construction material prices flat in February

The wholesale price growth rate of construction materials in the National Capital Region (NCR) remained flat in February compared to a year earlier, according to the Philippine Statistics Authority (PSA).

Data showed the construction materials' wholesale price index (CMWPI) posted a zero-percent year-on-year growth last month compared to 0.1 percent in January.

Its annual growth rate in February 2024 was at 1.0 percent.

Main factor for the flat rate was the slower annual increases in the indices of three commodities.

The price index of doors, jambs and steel casement was 0.5 percent in February, lower than the 0.6 percent in the comparable month; electrical works, 0.2 percent from 0.3 percent; and painting works, 1.0 percent from 1.1 percent.

Three commodity groups, on the other hand, had higher annual increases in February compared a month earlier.

The price index of hardware was 0.2 percent from 0.1 percent in January; tileworks, 1.1 percent from 0.8 percent; and plumbing fixtures and accessories/waterworks, 0.8 percent from 0.7 percent.

PVC pipes posted an annual increase of 0.1 percent compared to a 0.1 percent annual decline in January.

On the other hand, there were slower annual declines in the indices of cement at -1.0 percent from -1.1 percent; reinforcing steel, -0.1 percent from -0.3 percent; and fuels and lubricants, -3.3 percent from -3.4 percent.

The indices of the rest of the commodity groups either retained their respective previous month's annual growth rates, or had zero percent annual rates in February, the PSA said.

The CMWPl measures changes in the average wholesale prices of construction materials. It is a variant of the general wholesale price index (GWPI) and is used in the computation of price hikes of construction materials for various government projects.

Source: Manila Times

Open spaces in a subdivision are beyond the commerce of man

In the Philippines, open spaces in a subdivision—such as parks, playgrounds, and roads—are typically beyond the commerce of man, meaning they cannot be sold or privately owned once they are designated as common areas.

Legal Basis:

1. Presidential Decree No. 957 (Subdivision and Condominium Buyers' Protective Decree)

   • Requires developers to allocate at least 30% of the total subdivision area for open spaces, roads, and other community facilities.

   • These open spaces are meant for public or homeowners' association (HOA) use and cannot be sold or used for commercial purposes.

2. Local Government Code of 1991 (Republic Act No. 7160)

   • Upon completion of the subdivision, the roads and open spaces must be turned over to the local government or the HOA for maintenance.

   • If turned over to the local government, these spaces become public domain and cannot be sold.

3. Revised Implementing Rules and Regulations of PD 957

   • Open spaces are considered part of the subdivision’s amenities and should not be converted for private or commercial use unless properly reclassified by authorities.

     
     

Exceptions:

• In some cases, developers or HOAs may petition the Housing and Land Use Regulatory Board (HLURB, now DHSUD) or the local government unit (LGU) for reclassification. If approved, these open spaces might be used differently (e.g., converted into commercial property), but this is rare and subject to strict legal processes.

  
  

Source: Ziggurat Real Estate.