MANILA — The Department of Human Settlements and Urban Development (DHSUD) cannot tap developers’ incentivized compliance funds to rebuild mosques in Marawi City, according to a legal opinion from the Department of Justice (DOJ).

In 2017, the then Housing and Land Use Regulatory Board (HLURB), DHSUD’s predecessor, allowed developers under the Balanced Housing Development Program (BHDP) to deposit required cash into trust accounts instead of building socialized housing projects.

DOJ Acting Secretary Fredderick A. Vida said in a legal opinion to DHSUD Secretary Jose Ramon P. Aliling that Republic Act No. 7279, or the Urban Development and Housing Act of 1992, “does not contemplate the allocation or utilization of any portion of the required compliance to administrative expenses.”

“Allowing this would expand the permissible uses of the funds beyond what the law provides,” Vida added, emphasizing that administrative issuances cannot enlarge or restrict the coverage of enabling statutes.

The DOJ clarified that unless Congress amends RA 7279, DHSUD “cannot, through an administrative issuance, modify the prescribed percentage of participation or broaden the allocation of compliance funds.” As a result, using these funds for mosque reconstruction or any purpose not authorized by law “remains without legal basis and therefore shall not proceed.”

The DHSUD had previously issued Department Order No. 2021-004, amending HLURB Board Resolution No. 965, which broadened the allocation of the funds and allowed them to be used for repairing mosques damaged during the 2017 conflict between government forces and a terrorist group in Marawi City.

However, the release of the funds was suspended in 2022 due to legal questions regarding both the incentivized mode of compliance and its allocation, prompting the DHSUD to seek guidance from the DOJ.