Stricter penalties for subdivision, condo developers proposed

MANILA, Philippines – A bill seeking stricter penalties for subdivision and condominium developers was approved on second reading by the House of Representatives.

Rep. Susan Yap filed House Bill 395 or the “Subdivision and Condominium Buyers’ protective Decree Amendment of 2013″ which amends the penalties provided under the Presidential Decree 957 or the Subdivision and Condominium Buyers’ Protective Decree of 1976.

The proposed measure increases the administrative fine to P50,000 for each violation committed by unscrupulous developers. 

“Due to obsolete penalties for violations of PD957 or the Subdivision and Condominium Buyer’s Protective Degree of 1976, many land and condominium developers contravene the decree knowing fully well that payment for the defiance of the law is so small,” Yap said.

House Committee on Housing and Urban Development Chairman and bill co-author Rep. Alfredo Benitez explained that the bill ensures protection for buyers of subdivision lots and condominium units.

Penalizing failures

Several condomeniums and subdivisions are sprouting across the country; however, not all of them are safe, well-built, and well-maintained.

In the proposed measure, the failure to accomplish the following  will be penalized accordingly:

• Complete the development of the project
• Deliver the title
• Refund the purchase price
• Follow construction specifications or
• Provide good workmanship resulting to sub-standard units or to construction defects 

Violators will be fined P500,000 and a 4 year-imprisonment for the first offense; P750,000 and a 7-year imprisonment for the second offense; and P1 million, a 10-year imprisonment, plus the revocation of business permit and licenses for the third offense.

The bill also mandates owners and developers to donate open spaces reserved for schools, places of worship, hospitals, health centers, and barangay centers to the local government.

The proposed bill will still have to undergo a third reading session before it moves closer to a final approval. – Rappler.com