COA: 1,000 Iloilo River Plains families lack formal land tenure

ILOILO CITY — The 1,000 relocated families in the Iloilo River Plains Subdivision resettlement project live in housing units without formal security of tenure because the Iloilo City government has yet to complete the requirements for the turnover and disposition of the project, a Commission on Audit (COA) report showed.

COA first flagged the lack of formal tenure documents and the incomplete turnover in its 2020 audit report, noting that the issue remained unresolved despite being brought to the city government’s attention.

The housing development was established under a tripartite memorandum of agreement (MOA) among the Iloilo City government, the National Housing Authority (NHA), and the office of then-Sen. Franklin M. Drilon.

The project was designed to relocate and provide permanent housing assistance to 1,000 informal settler families who previously lived along the banks of the Iloilo River and its tributaries as part of the city’s river development initiative.

Under the MOA, the NHA was obligated to prepare project development plans, technical specifications, and cost estimates; secure an approved subdivision plan from the Land Management System; and formally turn over all completed infrastructure works to the city.

The city government was responsible for executing pre-relocation, relocation, and post-relocation activities; managing estate operations, including lot disposition and the collection of fees or charges; and issuing formal land tenure documents as approved by the Sangguniang Panlungsod, or city council.

However, audit verification showed that while all 1,000 families currently occupy the residential units, they do so without formal usufruct agreements, which grant the right to use property owned by another, conditional contracts to sell, or approved deeds of conveyance securing their legal rights to the property.

COA said the long-standing issue stemmed primarily from the NHA’s failure to formally turn over the completed infrastructure and provide the required approved subdivision plan.

Without that compliance, the city was unable to execute the required post-relocation and tenurial activities.

While COA acknowledged that the NHA caused the primary delay, it noted that the city government also had oversight deficiencies, failing to exercise sufficient due diligence and close monitoring, and to make formal demands to compel the NHA’s compliance earlier.

“The (Iloilo City government) is likewise expected to exercise due diligence to ensure that NHA can provide the required documents; thus, close monitoring, coordination, and demand should have been undertaken to encourage NHA to perform its responsibilities,” COA said.

PHP 54 million loan repayment at risk

COA warned that the lack of formal tenure and lot disposition mechanisms directly impairs the city’s ability to collect land and housing amortization fees from project beneficiaries.

The revenue collected from beneficiaries was designated to pay off the city’s PHP 54 million loan payable to the NHA, COA said.

The continued delay in post-relocation activities threatens loan repayment, risks accruing interest and penalties, and damages the city’s standing for future government housing partnerships, according to the audit.

“The (Iloilo City government) should exert efforts to require the NHA to expedite the processing of the subdivision plan and turnover of the infrastructure; otherwise, this could negatively impact its reputation in implementing the project, and may not recover the cost from the beneficiaries, which will be used to pay out the P54 million loans payable to the NHA,” COA said.

The state auditors also acknowledged operational bottlenecks during the project’s administrative transition.

The Iloilo City Urban Poor Affairs Office (ICUPAO) originally managed the project before it was formally transferred to the Iloilo City Local Housing Office (ICLHO).

The ICLHO told COA that it could no longer ascertain the root causes of the earlier delays during ICUPAO’s oversight.

Despite this, COA said the ICLHO assumed full responsibility for resolving the outstanding tenurial and turnover requirements.

In 2023, ICUPAO underwent a major overhaul, and its housing-related functions were reorganized and formally transferred to the newly created ICLHO.

The ICLHO was created through Regulation Ordinance No. 2023-193 as the implementing arm of the Iloilo City Local Housing Board. It handles beneficiary applications, social profiling, site surveys, records validation, monitoring of relocation projects, and coordination with housing agencies.

 

City pursues turnover, housing loans

On Aug. 4, 2026, the ICLHO issued a formal demand letter directing the NHA to fulfill its contractual obligations, particularly the formal turnover of completed infrastructure.

The approved subdivision plan was also being processed to facilitate individual lot titling and disposition.

The city government added that it is also coordinating with the Home Development Mutual Fund, or Pag-IBIG Fund, to extend housing loans to the 1,000 beneficiary families.

Under the proposed arrangement, the release of the loans would allow ownership of the properties to be formally transferred to the residents, with the proceeds remitted directly to the NHA to settle the city’s PHP 54 million debt.

The Iloilo River Plains Subdivision resettlement project dates to 2004, when the Iloilo-Batiano River Development Council relocated about 1,000 families living along the Iloilo River to the planned site in Barangays Camalig and Lanit in Jaro district.

Construction of Phase I began on Aug. 16, 2012, and the completed project was turned over in June 2014.