Are Real Estate Developers Allowed to Collect Fees for Community Benefit?
The answer is NO.
But why are we paying for additional fees and maintenance in condominiums and subdivisions?
If you count to check your receipts or invoice the monthly dues that you are paying for are from Homeowners Association Fees. Homeowners Association is a community built organization, created and governed by homeowners or co-owners of the subdivision you are in. Prior to purchasing the property, you are informed of the existence of this association to help maintain peace and camaraderie among homeowners. [To learn more about Homeowners Association and Condo Dues click here]
Any collections for said purpose may only be done by the duly organized homeowners association but with the consent of the actual residents in the project.
What are these fees for?
The Homeowners association dues that are usually paid monthly or annually covers the following;
- Subdivision/Condominium maintenance of the common areas.
- Community Security Guards and CCTV’s
- Garbage Disposal and Facilities
- Community Club House and Amenities
- Community Gardens and the likes
- Other fees that are necessary for community living
Section 27 of PD 957 provides, thus:
“SECTION 27. Other Charges. – No owner or developer shall levy upon any lot or unit buyer a fee for an alleged community benefit. Fees to finance services for common comfort, security and sanitation may be collected only by a properly organized homeowners association and only with the consent of a majority of the lot or unit buyers actually residing in the subdivision or condominium project.”
