DHSUD orders developers to follow balanced housing law

Department of Human Settlements and Urban Development (DHSUD) Secretary Jose Ramon Aliling on Thursday said the agency is strictly requiring private developers to comply with the Balanced Housing Development Program (BHDP) as mandated by law.

This comes after around 600 real estate projects by private developers were found to be non-compliant with Republic Act 10884, particularly the provisions on the BHDP, over the past four years.

Aliling said the Department discovered the violations of the BHDP under Republic Act 7279, as amended by RA 10884, during the implementation of its ongoing Zero Backlog Program.

“We discovered these alleged violations recently as we pursue the department-wide Zero Backlog Program. We intend to correct this soonest to enhance production of socialized housing projects for the benefit of the underprivileged Filipinos,” Aliling said.

“We are mandated to implement the law, and we will do just that,” he added.

RA 10884 requires developers of new residential subdivision and condominium projects to provide for socialized housing—either by developing on-site socialized housing (15 percent for subdivisions, 5 percent for condominiums) or through alternative compliance options.

Compliance projects may include developing socialized housing in a new settlement, entering joint ventures, or contributing to a socialized housing fund through incentivized compliance mechanisms.

The law also prescribes penalties for non-compliance, including a P500,000 fine for the first offense and the issuance of cease and desist orders (CDOs) against erring developers.

“In compliance with the law and existing rules, we already started sending orders against these developers for them to start complying,” Aliling said.

On average, non-compliant private developers face about P600,000 in penalties on top of CDOs covering their main projects—meaning they must stop selling units until the CDOs are lifted as provided by law.

Senior Undersecretary Sharon Faith Paquiz, who leads the DHSUD Zero Backlog Program, said her office discovered the non-compliances while reviewing regulatory backlogs in all Regional Offices.

“We need to strictly implement the law and our guidelines. We will continue to issue necessary orders to the concerned developers for their compliance,” said Paquiz, who also serves as supervising undersecretary for the Housing and Real Estate Development Regulation Bureau.

Aliling is set to meet with officials of the country’s top developers’ groups for a dialogue to ensure they are fully informed of the Department’s enforcement efforts.