Current Ceiling on Socialized Housing Package in Metro Manila and Other Areas Designated as Highly Urbanized Increased from P150,000.00 to P180,000.00

March 3, 1997 BIR RULING NO. 021-97 R.A. 7279 000-00 21-97 Confederation Properties, Inc. 690-A Quirino Avenue, Tambo Paraaque, Metro Manila Attention: Mr . Bansan C . Choa Chairman Gentlemen : This refers to your letter dated June 26, 1996 requesting for a confirmation of your opinion that: "1. The current ceiling on socialized housing package in Metro Manila and other designated highly urbanized was increased from P150,000.00 per unit to P180,000.00 per unit pursuant to Section 5.1 of Memorandum of Agreement on Housing Finance entered into by and between the Housing and Urban Development Coordinating Council (HUDCC), and Department of Finance (DOF), Department of Budget and Management (DBM), the Government Service Insurance System (GSIS), the Home Development Mutual Fund (Pag-IBIG), the National Home Mortgage Finance Corporation (NHMFC), and the Social Security System (SSS); and "2. The classification of urban areas mentioned in Table 25, Priority Areas for Shelter Development and Implementation of RA 7279 are the areas referred in Section 5.1 of the said Memorandum." In reply, please be informed that Section 5.1 of the said Memorandum provides: "5.1 On Loan Ceilings. Except in Metro Manila and highly urbanized areas approved by the HUDCC, the current ceilings of P150,000 for socialized housing and P375,000 for economic housing will be maintained. The socialized housing package in Metro Manila and other designated highly urbanized will be adjusted to P180,000 ." (emphasis supplied) Accordingly, we confirm your opinion that the current ceiling on socialized housing package in Metro Manila and other areas designated as highly urbanized was increased from P150,000.00 to P180,000.00 pursuant to the aforecited Memorandum of Agreement. Likewise, the classification of urban areas mentioned in Table 25, Priority Areas For Shelter Development and Implementation of R.A. 7279 prepared by the National Economic and Development Authority (NEDA) are the areas referred to in Section 5.1 of the said Memorandum. It should be understood that the current ceiling of P150,000.00 for socialized housing package in all other areas shall still apply in order that the sale thereof may be exempt under R.A. No. 7279. cdti Very truly yours, LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue