PHILIPPINES — A national organization representing urban poor communities has formally thrown its weight behind the Commission on Audit’s (COA) directive to recalculate developers’ compliance incentives under the Balanced Housing Development Program (BHDP). The group is now pressing the Department of Human Settlements and Urban Development (DHSUD) to move quickly on implementing the audit order.
In a letter addressed to DHSUD Secretary Jose Ramon Aliling, the Community Organizers Multiversity (CO Multiversity) cited the COA’s finding that the housing department miscalculated developers’ contributions, a shortfall that has constrained funding for socialized shelters.
How the Miscalculation Happened
At the center of the dispute is Department Order No. 2021-004, a DHSUD issuance that CO Multiversity said has “decreased the funding for the BHDP.” Under the original Urban Development and Housing Act (RA 7279, as amended by RA 10884), developers of subdivision projects are required to allocate 15 percent of their project cost to socialized housing. For condominium projects, the requirement is 5 percent.
However, CO Multiversity explained that DO 2021-004 introduced a formula that “effectively reduced the required participation for the non‑saleable and non‑recoverable portion at twenty‑five percent (25%) of the mandated fifteen percent (15%), or equivalent to five percent (5%) of the total project cost.” This narrower interpretation, the group argued, has “made it more difficult for urban poor groups and communities to access the resources and financial support needed for housing projects, such as people’s plans and similar initiatives.”
COA’s Order: Recompute From 2018
The COA’s directive calls for a recomputation of all incentivized compliance with the BHDP dating back to 2018 to correct underpayments and ensure proper collection. The audit bureau flagged DHSUD’s computation method as inconsistent with the law, and said the reassessment applies to projects with provisional escrow deposits still under evaluation as well as those already granted compliance clearance.
CO Multiversity Executive Director Lucila Malibiran signed the letter of support, stating that the COA’s move “marks a significant step toward ensuring accountability and adherence to the law.” She added that the recomputation “will expand opportunities for vulnerable groups, who have long had limited access to affordable housing.”
A Strong Push for DHSUD Action
The NGO urged DHSUD to act promptly, expressing confidence that the directive will lead to “a more efficient, transparent, and tangible delivery of socialized housing units.”
“The urban poor sector expresses its full support for and affirmation of the COA’s directive to undertake this recomputation. We believe that this action will contribute to meaningful progress in delivering housing services to vulnerable communities,” CO Multiversity said.
What This Means for Developers
The real estate sector is watching closely. DHSUD has already communicated with the COA to seek clarification and ensure clear implementation of the recomputation. Secretary Aliling has previously assured that concerned developers will be given ample time to comply with the audit order.
The directive aligns with the government’s broader push to expand socialized housing under the Pambansang Pabahay para sa Pilipino (4PH) Program, and could substantially increase the pool of developer‑contributed funds available for pro‑poor shelter projects nationwide.
