📋 Tender Overview
Department of Human Settlements and Urban Development Secretary Jose Ramon Aliling (File photo courtesy of DHSUD)
MANILA – The Department of Human Settlements and Urban Development (DHSUD) on Thursday directed private real estate developers to strictly comply with the Balanced Housing Development Program (BHDP) as mandated under Republic Act 10884.
DHSUD gave the order after it found out that around 600 private development projects are non-compliant with the law’s requirement on balanced housing over the past four years.
DHSUD Secretary Jose Ramon Aliling said the violations were uncovered amid the agency’s ongoing Zero Backlog Program which reviews pending and existing projects across all regional offices.
“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 underprivileged Filipinos” Aliling said.
Under RA 10884 which amended the Urban Development and Housing Act of 1992 (RA 7279) developers of new residential subdivision and condominium projects are required to provide socialized housing equivalent to at least 15 percent for subdivisions and 5 percent for condominiums.
Developers may comply through onsite construction development of new socialized housing settlements joint ventures or contributions to the socialized housing fund under the incentivized compliance scheme.
The law also imposes penalties for violations including a fine of up to PHP500000 for the first offense and the issuance of cease-and-desist orders (CDOs) against non-compliant developers.
“In compliance with the law and existing rules we already started sending orders against these developers for them to start complying” Aliling said.
He added that on average erring developers face around PHP600000 in penalties aside from the CDOs which suspend the sale of housing units until the orders are lifted.
DHSUD Senior Undersecretary Sharon Faith Paquiz who leads the Zero Backlog Program and oversees the Housing and Real Estate Development Regulation Bureau said non-compliance cases surfaced during the backtracking of pending regulatory processes in regional offices.
“We need to strictly implement the law and our guidelines. We will continue to issue the necessary orders to the concerned developers for their compliance” Paquiz said.
To further strengthen coordination Aliling is set to meet with leaders of major real estate developer groups for a dialogue aimed at reinforcing awareness and cooperation in implementing the balanced housing program. (PNA)
