THE Department of Human Settlements and Urban Development (DHSUD) 7 has confirmed that Azzela Properties Development Corp. (APDC) has been selling housing units without the necessary permits. More seriously, the developer allegedly continued to collect payments from buyers for two years despite a cease and desist order (CDO) issued against it in 2022.
BACKSTORY. The issue dates back to June 2020, when APDC began pre-selling units for several projects, including Azienda Azaliyah and Azella Heights. DHSUD 7 official Mark Anthony Lindogan told Beyond the Headlines, SunStar Cebu’s online news and commentary program, that only Phase 1 of Azienda Azaliyah ever secured a license to sell. However, even that license was suspended in June 2022 due to violations related to incomplete development.
Despite the suspension and the subsequent CDO, the developer allegedly continued its operations, including collecting amortization payments, which the agency considers illegal. This has led to over 100 formal complaints from buyers, many of whom are overseas Filipino workers (OFWs) who invested their savings in homes that were never built.
REGULATORS VS. DEVELOPER. The conflict involves three main parties with different positions and stakes.
For the homebuyers: Many, like one buyer from Samar who paid P1.1 million for a lot that remains empty, are victims of significant financial loss. They were reportedly told by APDC to disregard negative online reports and attribute delays to the pandemic and typhoons. After losing patience with trickling refunds as low as P5,000 a month, many have resorted to filing complaints and pursuing legal action.
For the developer (APDC): The company is accused of defying a government order and continuing to operate illegally. According to DHSUD 7, when mediation was attempted, APDC sent representatives who lacked the authority to negotiate settlements, frustrating efforts to resolve the buyers’ complaints.
For the regulator (DHSUD 7): The agency has fulfilled its initial mandate by issuing a CDO and imposing administrative fines. However, officials admit they have a crucial limitation: they lack “police power” to physically shut down a developer’s operations. This regulatory gap allowed the alleged illegal activities to continue for years after the order was issued.
WHAT’S AT STAKE. The primary issue is the financial security of homebuyers who have poured their life savings into these projects. For many OFWs, these investments represented a dream of owning a retirement home, which has now turned into a financial nightmare.
Beyond the individual losses, the case exposes a potential weakness in consumer protection within the real estate sector. If a developer can ignore a CDO for years without immediate enforcement, it raises questions about the effectiveness of regulatory oversight and undermines public trust in the housing industry. The DHSUD 7 confirmed that this is not an isolated incident, describing a “rising” number of cases involving non-compliant developers in Cebu.
WHAT WE DON’T KNOW YET. Several questions remain unanswered. It is unclear why APDC allegedly chose to defy the CDO for two years and whether the administrative fines imposed have been paid. Furthermore, while the government has identified the problem, it is not yet certain how or when the affected buyers will be able to recover their money in full. Finally, the success of any future legal action hinges on the cases that will be filed before the courts and the Human Settlements Adjudication Commission (HSAC).
WHAT’S NEXT. With mediation efforts failing, the DHSUD 7 said its next step is to recommend the filing of a formal case against the developer with the HSAC and the courts. The fate of the hundred-plus complainants now rests on the outcome of this legal process, which will determine whether they can get their money back and hold the developer accountable. / EHP