Housing department seeks review of rules on fines vs erring estate firms
(Department of Human Settlements and Urban Development)
The Department of Human Settlements and Urban Development (DHSUD) is pushing for a review of decades-old rules on the imposition of fines against real estate developers and practitioners found violating regulations.
DHSUD Secretary Jose Ramon Aliling said the current penalty structure needs to be updated to ensure accountability in the sector and protect homebuyers and law-abiding developers.
“We need to revisit our laws and policies to ensure relevance and responsiveness in the present times. Hindi tayo pwedeng magpatali sa mga outdated na polisiya at upang mas mapabuti ang serbisyo (We cannot allow ourselves to be bound by outdated policies if we want to improve our services),” he said.
Aliling directed DHSUD Senior Undersecretary Sharon Faith Paquiz to lead the review of previous issuances and laws on government penalties and fines.
The review covers the implementing rules and regulations (IRR), guidelines, administrative fines and penalties on Presidential Decree 957 of 1976 or the Subdivision and Condominium Buyers’ Protective Decree, Batas Pambansa Bilang 220 which provides the regulatory framework for the development of economic and socialized housing projects, and Republic Act 7279 or the Urban Development and Housing Act of 1992.
Paquiz said part of the review being spearheaded by the DHSUD's Housing and Real Estate Development and Regulation Bureau (HREDRB) is to look into the fines and penalties being imposed under the current laws and policies to establish whether they remain relevant and responsive to the current state of the housing and real estate industry.
Among these is the imposition of stiffer administrative penalties and fines against erring developers and real estate practitioners selling projects without the necessary registration and licenses to protect both homebuyers and law-abiding developers and agents.
“Initially, we have already identified some provisions that need to be updated and amended. For those that we can immediately revise within our authority as a Department, we will do so as soon as possible,” she said.
The DHSUD stressed that the move is part of the government’s broader effort to strengthen consumer protection in the housing sector and to address issues raised by homebuyers regarding incomplete or substandard projects.