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Manila Bulletin devider Philippines devider National devider 'Math isn't mathing': COA flags DHSUD's wrong formula in housing incentives to private developers

'Math isn't mathing': COA flags DHSUD's wrong formula in housing incentives to private developers

Published Apr 9, 2026 01:16 pm
Department of Human Settlements and Urban Development (DHSUD) Secretary Jose Ramon Aliling (Photo: DHSUD)
Department of Human Settlements and Urban Development (DHSUD) Secretary Jose Ramon Aliling (Photo: DHSUD)
The Department of Human Settlements and Urban Development (DHSUD) vowed to implement corrective measures after the Commission on Audit (COA) flagged the computation on incentivized balanced housing for private developers since 2018.
Under the law, developers of subdivision and condominium projects are required to allocate a portion of their project area or cost for socialized housing, but COA noted possible inconsistencies of the computation method with the existing rules and regulations. 
As a result, the national government was shortchanged and this is what DHSUD Secretary Jose Ramon Aliling  wants to look into as private developers insisted that they followed a formula provided by the department itself.
Private developers are referring to the DHSUD Department Order (DO) No. 2021-004 which provided the formula on how the incentives must be computed. 
But COA said the formula is wrong as it put the national government to the disadvantage position The Department of Justice earlier raised the same concern through a legal opinion. 
In its letter, COA tasked the DHSUD to conduct recomputation of all incentives given in order to take back what supposed to be paid to the national government under the Balanced Housing Development Program (BHDP).

 “Reassessment or recomputation of compliance obligations applies to projects with provisional escrow deposits that are still under evaluation and awaiting final compliance clearance,” the COA report read.
"Likewise, projects that have already been granted compliance clearance shall still be subject to reassessment, since subsequent findings show that the compliance rendered was insufficient or not in accordance with the law; hence, they shall be required to fulfill their obligations accordingly," it added.
Aliling vowed to comply, saying the corrective measures include reassessment and collection of underpayment involving housing project developers.
“We will comply with both the DOJ opinion and COA findings, and we will invite officials of developer organizations to discuss the matter and formulate positive ways to move forward,” said Aliling.
But he said the DHSUD will give the concerned developers ample time to comply in consideration of the economic effects of the Middle East conflict.

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