CLI issued a clarification on Aug. 18 after the DHSUD said the developer had received Notices of Deficiency of Requirements (NDRs) for non-compliant applications for licenses to sell, which contributed to delays in the rollout of some projects.
The developer said that to be fair with DHSUD, the deferred launches could be attributed to regulatory requirements that CLI needed to address as part of the agency's ongoing efforts to strengthen the licensing and permitting process for real estate developers.“These requirements have since been hurdled, and CLI is now ready to proceed with its planned launches for the rest of the year,” CLI said.
Non-compliant
In a statement, DHSUD-7 director Mark Anthony Lindugan said CLI had been issued NDRs due to incomplete documentary submissions and non-compliant applications.
"Based on records, the non- issuance of license was associated with various regulatory and compliance concerns, including discrepancies in building permit classifications, the conversion of Temporary Licenses to Sell (TLS) to Regular LS, and pending documentary requirements," Lindugan said.
"Some projects were likewise issued NDRs due to incomplete submissions, non-compliance with applicable standards or the need for technical rectification and referral back to the concerned Local Government Units," he added.
Among those affected were four development projects in Cebu -- North Grove at Pristina Town (Towers 1 and 2) and Alto Ranudo in Cebu City, Mirani Homes in Bogo City, and Casa Mira South Phase 4B.3 in Naga City, which, according to DHSUD-7, had pending deficiencies and other compliance concerns.
"As regulators, we are mandated to strictly enforce existing laws and regulations without shortcuts to ensure compliance to standards and the integrity of each project development. We cannot approve applications with deficiencies," he added.
The DHSUD said its central office and 17 regional offices didn’t have any overdue regulatory applications since the regional offices are given only 15 days to act on all applications, either to approve, deny or issue NDR. Applicants with NDRs are given90 days to comply.
Deferred launches
The DHSUD took exception to some media reports (not InsiderPH) that quoted CLI CEO Jose Franco Soberano as saying the launch of at least four development projects had been deferred due to pending approvals of their licenses to sell (LTS).
Soberano said the postponements resulted in an 82-percent drop in project launches from the previous year, the same reports stated.
Lindugan said it is inaccurate to put the blame for the delays on regulators when they submitted deficient applications. "As regulators, we are mandated to strictly enforce existing laws and regulations without shortcuts to ensure compliance to standards and the integrity of each project development. We cannot approve applications with deficiencies," he added.
Clarification
CLI subsequently issued a separate statement on Aug. 18 to provide additional context on the issue and address the DHSUD’s concerns.
The company acknowledged the regulatory issues raised by the agency and said it had worked to resolve them, paving the way for its planned project launches for the remainder of the year.
CLI said the company used the first half of the year to complete the necessary requirements and secure the approvals needed to bring 11 projects to market.
It said the company is moving forward with its planned second-half launches in Cebu, including Mactan, as well as in Ormoc City in Leyte, Butuan City, Davao City and Panglao Island in Bohol.
The 11 projects comprise more than 5,600 units with a combined sales value of about P25 billion.
Soberano also expressed support for the DHSUD’s efforts to promote responsible development, noting that many of the recent regulatory requirements were designed to strengthen industry standards and ensure compliance.
In a company statement, CLI said it is committed to working closely with DHSUD and other relevant government agencies to ensure that all its projects are delivered responsibly to customers and communities. —Ed: Corrie S. Narisma
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