Around 1,700 individuals who purchased housing units in Magalang years ago but never received their homes have sought help from the Social Housing Finance Corporation (SHFC). The buyers, many of whom are teachers, were reportedly scammed in a “ghost housing” project initiated during the term of former Mayor Romy Pecson.

SHFC President and CEO Federico A. Laxa confirmed that the agency received no official documents or coordination regarding the project. According to Laxa, the SHFC logo was allegedly used without authorization during a groundbreaking ceremony, while only the entrance of the development was completed. Other structures and facilities promised to buyers remain unfinished.

“SHFC was not involved in this project in any capacity,” Laxa said. He reminded the public to transact only with authorized representatives and follow proper procedures to avoid falling victim to illegal housing schemes.

Meanwhile, former Magalang Chief of Urban Poor Affairs Virgilio “Billy” Cudia challenged ex-Mayor Pecson to assist in refunding the victims. Today, February 15, 2026, the Magalang municipal government, led by current Mayor Malou Lacson, is set to hold a legal consultation for affected buyers to provide guidance and support.

Authorities have reiterated their commitment to ensuring the victims receive legal assistance and other forms of aid to recover from the fraudulent housing project.