The report on how much money NHA collects from its housing loans is not accurate because the amounts due and collected are not properly recorded. Also, NHA only collects 23% of what is owed, which is very low. This happens because NHA does not monitor and enforce penalties well. Because of this, NHA might keep needing government subsidies to run its projects, which is not what the law intended.

Why It Matters

Recommended Actions

No recommendations are available for this finding yet.

Original Audit Finding Excerpt

"The collection efficiency rates reported in the Collection Evaluation Report (CER) could not be relied upon due to improper and incomplete reporting of total amount due and actual collection which may mislead its users. Further, NHA has low collection efficiency of 23 per cent out of the total outstanding receivables for residential and commercial property amounting to P18.308 billion as at December 31, 2022, due to inadequate monitoring and enforcement of sanctions under certain provisions of PD No. 1472, MC Nos. 2596 and 003, Individual Loan Agreement and Conditional Contract to Sell, thereby, NHA may continuously depend on the subsidy provided by National Government to sustain its socialized housing projects, contrary to Section 2 of EO 195."

Source Document