BIZ BUZZ: Rent-free days may soon be over for Ecology Village residents

With the government running a chronic budget deficit, the Department of Finance (DOF) is under constant pressure to search for extra revenues.

That quest has led to the issuance of a letter to residents/owners of units at the Ecology Villages in Makati City, informing them of the government’s intent to “enter into a short-term, month-to-month lease agreement with the unit owners for the continued use and occupation” of the property.

The Privatization and Management Office (PMO) under the DOF underscored in the February 2025 letter that the land on which the Ecology Villages stand was owned by the government.

Also, the original lease agreement between the government and the Technology Resource Center Foundation Inc./Philippines Development Alternatives Foundation Inc. 9 TRCFI/Pdaf) expired back in December 2002 without being renewed.

Since the sublease between TRCFI/Pdaf and the unit owners of Ecology Village was co-terminus with the original contract of lease, the sublease was deemed automatically expired on Dec. 31, 2002.

As such, the PMO said that the continued use and occupation of Ecology Village—built during the first Marcos administration—was “subject to the payment of compensation/rent” to the national government.

The residents have acknowledged these facts and are just waiting for all of the concerned parties to be informed of the PMO’s intent before deciding on their next steps.

They actually tried to purchase the property back in 2004, but the bids had apparently been rejected, thus the planned purchase fell through.

No significant action had been taken one way or another since then to monetize the assets. Until recently, that is.

As of last month, the homeowners have yet to convene to discuss the proposed contract with the government, as some have yet to receive their official copy of the PMO letter.