An agricultural non-governmental organization is calling on housing officials to immediately comply with a state audit directive to recompute developer incentives, arguing that miscalculations have drained funds intended for the urban poor.

Community Organizers Multiversity (CO Multiversity) expressed support for the Commission on Audit’s (CoA) decision to review compliance incentives under the Balanced Housing Development Program.

The program requires developers of subdivisions and condominiums to allocate a portion of their project area or cost for socialized housing.

In a letter to Department of Human Settlements and Urban Development (DHSUD) Secretary Jose Ramon Aliling, CO Multiversity executive director Lucila Malibiran cited audit findings that flagged the department for miscalculating developer contributions.

The organization cited that a 2021 department order effectively reduced the required participation for certain project portions to 5 percent of the total cost, down from the mandated 15 percent.

This policy, the NGO argued, has decreased funding and made it more difficult for vulnerable communities to access resources for “people’s plans” and other housing initiatives.

To recall, the CoA previously found that provisions in Department Order No. 2021-004 were inconsistent with Republic Act 7279, as amended by Republic Act 10884. The commission has called for a recomputation of all incentivized compliance dating back to 2018 to address deficiencies and collect underpayments.

“The CoA’s call to recompute all incentivized compliance marks a significant step toward ensuring accountability and adherence to the law,” CO Multiversity said in a statement. “This measure will expand opportunities for vulnerable groups, who have long had limited access to affordable housing.”

The group added that the urban poor sector believes the recomputation will lead to a more transparent delivery of socialized housing units.

DHSUD has since communicated with the audit commission to seek clarification on the implementation of the directive.

Aliling previously assured the public that affected developers would be given sufficient time to comply with the order once the new calculations are finalized.