Around 600 real estate projects in various parts of the country were found to be not complying with regulations on Balanced Housing Development Program (BHDP), prompting the Department of Human Settlements and Urban Development (DHSUD) to warn private developers of consequences if the law provisions of the law are ignored.

DHSUD Secretary Jose Ramon Aliling was referring to the Republic Act 10884, or “An act strengthening the Balanced Housing Development Program”, which amended the Urban Development and Housing Act of 1992.

The mandates that developers of new residential subdivision and condominium projects must provide for socialized housing, either by developing socialized housing on-site (15% for subdivisions, 5% for condominiums) or through alternative compliance options.

"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 the underprivileged Filipinos," Aliling said.

"We are mandated to implement the law, and we will do just that," he emphasized.

Aliling said he already issued a directive reiterating the need for all private developers to comply with the BHDP, as provided by the law.

The move, he said, was aimed at ensuring that the violations that were monitored in the past four years in the 600 real estate projects will not be repeated.

"In compliance with the law and existing rules, we have already started sending orders against these developers for them to start complying," Aliling said.

He said compliance projects under the law 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.

The law also outlined penalties for non-compliance, including P500,000 for first offense and issuance of cease and desist orders (CDO) against erring developers.

On the average, Aliling disclosed that erring private developers are facing around P600,000 in penalties on top of the issuance CDO covering their main projects, “Meaning, they have to stop selling units until the lifting of the CDO as provided by law.”

Aliling is set to meet with officials of the country's top developers groups for a dialogue.

For her part, DHSUD Senior Undersecretary Sharon Faith Paquiz, who is spearheading the DHSUD Zero Backlog Program, said that her office discovered the non-compliances by the developers during backtracking of the regulatory backlogs of all Regional Offices (ROs).

"We need to strictly implement the law and our guidelines. We will continue to issue necessary orders to the concerned developers for their compliance," said Paquiz.