Ineffective Implementation and Protection of Foreclosed Properties
National Housing Authority · 2022
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What Happened?
Category: Asset ManagementIssue: InefficiencyThe agency spent millions buying back foreclosed properties but failed to secure or manage them, leaving them occupied by illegal settlers or used without paying rent for decades.
Why It Matters
Recommended Actions
- Exercise the rights and interest over the foreclosed properties by: immediately resolving the resettlement of the illegal occupants of the properties, prioritizing the settlers occupying buildings found to be deteriorating in order to prevent loss of life and further damages to NHA’s image in delivering its mandates
- Instituting foreclosure proceedings for accounts under SSS
- And exploring opportunities to generate income from the foreclosed properties.
Original Audit Finding Excerpt
"Rights and interest over 143 units of foreclosed properties were not protected/exercised for 17 to 33 years despite paying an approximate amount of P73.833 million due to the presence of illegal settlers on the 101 units, non-collection of rental fees of tenants on the 30 units and non-utilization of the remaining units."