THE Department of Human Settlement and Urban Development (DHSUD) did not inspect 110 real estate development projects, (REDPs) including 72 in Metro Manila, which is part of its mandate to ensure developers are compliant with standards and safety guidelines to protect homeowners and buyers.
In its 2022 report on DHSUD, the Commission on Audit revealed that the agency also failed to check 29 other projects in Region 1 (Ilocos Region), and nine more in Region 9 (Zamboanga Peninsula).
The projects included condominium projects and residential subdivisions as defined by Presidential Decree No. 957 and Batasang Pambansa Blg. 220, both requiring compliance by developers and property sellers to environmental, hygiene and public safety standards.
In addition, the same laws required the proper construction of improvements, including roads, drainage, sewerage, water systems, and lighting systems.
The DHSUD’s Housing and Real Estate Development-Regulation-Monitoring Unit (HREDRD-MU) admitted the audit observation but defended its shortcoming, saying it was deluged by “multiple tasks such as responding to email queries and petty complaints from buyers.”
Agency inspectors in Region 1 attributed their failure to do their job to a “lack of personnel,” while Region 9 inspectors invoked “budget constraints” and the lack of a service vehicle.
Under the Housing and Land Use Regulatory Board (HLURB), Resolution No. 985 recommended sanctions against developers found to be in violation of PD 957 and related laws.
The same resolution mandated DHSUD regional offices to conduct mandatory inspections of all projects regulated by the HLURB six months after the issuance of the certificate of registration (CR) and the license to sell (LS).
By failing to do the inspection, DHSUD left home and condo buyers at risk while letting unscrupulous developers get away with safety and structural standards violations.
“The inability to undertake the mandatory inspection after six months from the issuance of CR/LS would mean failure to proactively apprehend erring developers and warn the buying public,” the audit team said.
In addition, auditors found that 34 inspections in NCR real estate projects were delayed by 39 days to one year but the DHSUD blamed the COVID-19 pandemic for slowing down the work of its inspectors.