DHSUD sets deadline for socialized housing compliance

MANILA, Philippines — The Department of Human Settlements and Urban Development has given real estate developers flagged for violation of Republic Act 10884, particularly on the socialized housing provision, until Dec. 31 to comply with their undertakings, the DHSUD said.

In a memorandum, DHSUD Secretary Jose Ramon Aliling deferred the implementation of the cease and desist orders as well as the suspension or cancellation of licenses to sell issued against non-compliant developers, to give them until year-end to rectify their violations.

Aliling said the monetary fines for offenders will remain and are immediately executory upon receipt of the order of imposition of administrative sanction.

“This is a win-win approach. It will allow private developers ample time to cope with the effects of the strict implementation of the law and their compliance will lead to the production of more socialized housing projects that will benefit the underprivileged Filipinos,” Aliling said.

The DHSUD earlier flagged about 600 projects for non-compliance with RA 10884 or the Balanced Housing Development Program Amendments Act, the law that mandates real estate developers to allocate portions of their new residential subdivision or condominium projects for socialized housing.

Under RA 10884, developers of new residential subdivision and condominium projects must provide for socialized housing, either by developing socialized housing on-site – pegged at 15 percent for subdivisions and five percent for condominiums – or through alternative compliance options.

The DHSUD explained that compliance projects can include creating socialized housing projects in a new settlement, joint ventures or contributing to a socialized housing fund through mechanisms like the incentivized compliance.

Under RA 10884, penalties for non-compliance with the balanced housing provision include a fine of P500,000 for first offense, suspension of license to do business from three to six months and another P500,000 fine for second offense; and the cancellation of license to do business for third offense.

“In strictly implementing the law, we hope to provide more socialized housing options for the underprivileged Filipinos while protecting the vibrancy of the housing sector,” Aliling said.