The NHA did not have enough funds to cover its project obligations, leading to a budget shortfall. They had to stop many housing projects to avoid running out of cash, which delayed the delivery of homes to intended beneficiaries.

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Original Audit Finding Excerpt

"(2) “Allotment” refers to an authorization issued by the Department of the Budget to an agency, which allows it to incur obligations for specified amounts contained in a legislative appropriation. (11) “Obligation” refers to an amount committed to be paid by the Government for any lawful act made by an authorized officer for and in behalf of the government. (Emphasis ours) Generally, the National Government provides allotments to the Authority for the implementation of housing programs through Special Allotment Release Orders (SAROs). Consequently, it receives the funds based on Notice of Cash Allocations (NCAs) within the approved SAROs. As at December 31, 2023, the balance of the unreleased allotments is P6.677 billion including the P1.652 billion under Disbursement Acceleration Program (DAP) that was declared unconstitutional by the Supreme Court. To wit: Table 10.1 Balance of Unreleased Allotments and DAP Funds As at December 31, 2023 In pursuit of the Authority’s mandate to p"

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