A homeowners’ association (HOA) is a formal group within a subdivision or development that manages the community and maintains its amenities. In the Philippines, HOAs are non-stock, non-profit corporations that are duly registered and are organized by the property owners within the subdivision or development.
While they are envisioned to be for the good of the community, as with any organized group, some HOAs can be quite bad. If you ever fancy, just visit the Department of Human Settlements and Urban Development office and inquire about disputes and cases they handle involving HOAs and dissatisfied members.
So, if you’re looking to find a good community to establish your home or even buy property in, you should look into the HOA if it is well-run. But what are the signs that you a HOA is actually quite good? Here are 10 signs.
1 – Financial Transparency
One of the most common sources of disputes in HOAs is financial transparency. Good HOAs inform their members where and how money is being spent. In our experience, providing the audited financial statement which is a yearly compliance requirement to the membership that’s should be good enough. However, allowing members to request information like monthly cash flow statements is also acceptable.
2 – Low Delinquency Rates Among Members
HOAs primarily make money from association dues which members pay on a monthly or yearly basis. In well-run HOAs, this should be enough to cover the basic operations of the association but should be fair and affordable enough for it not to be a burden to homeowners. Good collection rates are also a sign of satisfaction in the community.
3 – Frequent Communication
Good HOAs communicate with the community in a timely and respectful manner. Announcements should be posted conspicuously. Aside from banners and bulletin boards, good HOAs maximize various channels. These days, HOAs can have websites, email lists, and chat groups to keep members informed and updated.
4 – Well-Maintained Facilities and Common Areas
You can tell if a subdivision’s HOA is doing its job when the environment is maaliwalas. It should be able to maintain the community’s common areas, such as the entrance gate and guardhouse, landscaping, clubhouses, basketball courts, swimming pools, and other amenities. Good HOAs are proactive about repairs and maintenance. They should also take care of vacant lots. Some HOAs provide grass cutting services to prevent.
5 – Professional Management
Typically, HOAs are led by boards of directors. Directors technically can’t have salaries and must serve pro bonos. Some generous individuals go above and beyond their duties by leading committees and even pitching in on the day-to-day.
However, HOAs typically have administrative offices manned by salaried staff and they may also have maintenance people on payroll. Security is often outsourced to proper agencies. Those with capacity even have subdivision or village managers who oversee they day-to-day administration.
6 – Community Engagement
Effective HOAs promote community engagement. They may organize events, maintain community forums, or facilitate activities that encourage neighbor interaction and a strong sense of community. Ask if there are special committees and volunteer groups that meet regularly to organize activities in the community. These could be events, sports and fitness clubs, social activities, and even bazaars and tiangge.
7- Regular Meetings
HOAs are mandated by their by-laws to hold regular meetings or general assemblies. Good HOAs stick by these regulations. But aside from these, good HOAs organize other meetings for consultation and information dissemination. These forums provide members with the opportunity to voice out concerns or debate issues productively. In addition, regular elections should be held as dictated by the by-laws.
8 – Fair Enforcement of Rules
HOAs are empowered to create and impose rules on the general membership. These could be codes of conduct, rules on the use of amenities and facilities, security, and other related While HOAs must enforce community rules, they should do so fairly and consistently. Good HOAs avoid the palakasan system and refrain from showing favoritism to certain members. That said, they should also be flexible in certain circumstances.
9 – Security and Safety Are Apparent
One of the big selling points for living in subdivisions is security. Subdivisions have perimeter walls and gates designed for privacy and security of residents. Entrance and exit to communities should be controlled. The Magna Carta for HOAs law, does give HOAs the authority to be in charge of access into their communities. Having gateways where access of pedestrians and vehicles are monitored or controlled are an indication of HOAs doing their jobs.
10 – Has a Plan for Sustainability
Financial transparency aside, good HOAs are also sustainable. Aside from being able to cover routine expenses, HOAs should also be saving up for future ones. This might include establishing a reserve fund for major repairs or replacements, planning for community growth, or preparing for changes in local regulations. This would help prevent unnecessary charging of special assessments that members will have to shoulder.
A Good HOA is a Blessing
A standout HOA creates an environment where homeowners feel valued, informed, and engaged. It balances enforcing community standards with respecting individual rights, all while managing resources wisely for present needs and future sustainability. An exceptional HOA truly enhances the quality of life for its community members. If you happen to have one, make sure that you become involved enough in the community to maintain your HOA’s quality.