The National Housing Authority (NHA) and the Department of Justice (DoJ) warned the public about real estate scammers who are reportedly misusing Presidential Decree No. 957 to delay criminal charges for estafa and protect illegal housing projects.

NHA general manager Joeben Tai said the agency is working closely with the DoJ to ensure that PD 957 — the law regulating the sale and development of subdivision and condominium projects — is not exploited to evade accountability.

Tai reported that the NHA has received accounts of developers and syndicates invoking PD 957 to delay criminal cases or secure court injunctions, even when their projects lack proper permits or clearances from the NHA or local government.

“This cannot be allowed to continue,” Tai said.

Meantime, Justice Secretary Jesus Crispin Remulla confirmed that some groups have indeed exploited legal loopholes to defraud buyers while prolonging estafa cases.

“PD 957 was enacted to protect homebuyers, not to shield unscrupulous developers from prosecution,” Remulla said. “We are taking steps to ensure the law is used properly.”

The two agencies are coordinating on a legal clarification that will differentiate civil and criminal liabilities in housing scams. The DoJ is also expediting estafa complaints against developers operating without NHA permits.

The NHA urged potential homebuyers to verify the legitimacy of housing projects and developers before making any payments as Tai announced that the NHA will release a verified list of accredited developers and authorized housing projects to help the public avoid scams.