DHSUD approves deferment period for developers

Title DHSUD Approves Deferment Period for Developers A Boost for Affo
Affordable Housing Initiatives

The Department of Human Settlements and Urban Development (DHSUD) has made 
a significant move to boost affordable housing initiatives by approving a d
deferment period of 36 months for developers to comply with the Balanced Ho
Housing Development Program (BHDP). This decision comes after the Commissio
Commission on Audit (COA) flagged DHSUD's computation of incentivized balan
balanced housing compliance.

Background

The BHDP program requires private developers, including Chamber of Real Est
Estate and Builders' Associations (Creba) members, to develop socialized ho
housing equivalent to 15 percent of their subdivision project cost or 5 per
percent of the condominium cost. However, COA found that DHSUD's computatio
computation was inconsistent with existing laws, effectively reducing devel
developers' required participation in the program.

DHSUD's Decision

Secretary Jose Ramon Aliling granted the request of the Subdivision and Hou
Housing Developers Association and the Organization of Socialized Housing D
Developers of the Philippines to recalibrate the BHDP. The new computation 
allows for a six-month extension for housing projects with 30 or more month
months of approved duration to satisfy BHDP requirements.

Impact

The deferment period is expected to benefit DHSUD's partner-developers in c
continuously providing safe and affordable housing units under the national
national government's expanded Pambansang Pabahay para sa mga Pilipino (4PH
(4PH) program. Creba President Noel Cariño emphasized the importance of ins
instituting major reforms to ensure more effective delivery of socialized h
housing to underprivileged Filipinos.

Key Takeaways

DHSUD approved a 36-month deferment period for developers to comply with 
BHDP.
The decision comes after COA flagged DHSUD's computation of incentivized 
balanced housing compliance.
Creba urged judiciousness in promulgating implementing rules to ensure so
social objectives are not warped and businesses are insulated from oppressi
oppressive requirements.

Conclusion

The approved deferment period is a significant step forward in addressing t
the country's affordable housing needs. It demonstrates DHSUD's commitment 
to finding solutions that balance the needs of developers with those of the
the homeless poor. As we move forward, it is essential for policymakers and
and professionals to prioritize effective and equitable implementation of s
socialized housing programs.

For Policy Makers and Professionals

This decision highlights the importance of

1. Policy Reforms Supporting the delivery of socialized housing initia
initiatives.
2. Collaboration Between government agencies, developers, and stakehol
stakeholders to ensure effective and efficient implementation of affordable
affordable housing programs.
3. Transparency In reporting on contributions and compliance with soci
socialized housing requirements.

By emphasizing these key takeaways, policymakers and professionals can work
work together to create a more equitable and sustainable housing landscape 
for the Philippines in 2026.

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Edward Lance Arellano Lorilla

CEO / Co-Founder

Enjoy the little things in life. For one day, you may look back and realize they were the big things. Many of life's failures are people who did not realize how close they were to success when they gave up.