Amending Ordinance No. 98-019 Re: Grant of Tax Exemption to Sellers or Donors of Real Property for Socialized housing Program

November 14, 2002 MUNTINLUPA CITY ORDINANCE NO. 072-02 AN ORDINANCE AMENDING ORDINANCE NO. 98-019 "GRANTING EXEMPTION IN THE PAYMENT OF TRANSFER TAXES TO REAL PROPERTY OWNERS WHO SHALL SELL, DONATE, OR OTHERWISE DISPOSED OF THEIR REAL PROPERTY TO THE CITY GOVERNMENT OF MUNTINLUPA FOR ITS RELOCATION AND SOCIALIZED HOUSING PROGRAM, AND TO URBAN POOR ASSOCIATIONS THROUGH THE COMMUNITY MORTGAGE PROGRAM OF THE NATIONAL HOME MORTGAGE FINANCE CORPORATION" TO INCLUDE THE SAME MODE OF TAX EXEMPTION FROM COMMUNITY ASSOCIATION TO INDIVIDUAL MEMBERS Sponsored by: Hon. Engr. Mamerto T. Sevilla, Jr., Hon. Engr. Rufino B. Joaquin, Hon. Francis Ian T. Bagatsing, Hon. Artemio A. Simundac, Hon. Atty. Patricio L. Boncayao, Jr., Hon. Melchor R. Teves, Hon. Aldrin L. San Pedro, Hon. Dr. Nicanor L. Echavez, Hon. Allan Rey A. Camilon, Hon. Atty. Raul R. Corro, Hon. Atty. Icasiano M. Dela Rea, Hon. Lucio B. Constantino Hon. Mario E. Bulay, Jr. and Hon. Christian Glenn D. Lorica WHEREAS, the power of the local government units to create their own sources of revenue under Section 5, Article X of the Constitution and Section 129 of the Local Government Code of 1991 carries with it the power to grant tax exemption; WHEREAS, Section 192 of Republic Act 7160 , otherwise known as the Local Government Code of 1991 provides that " Local government units, may, through ordinances duly approved, grant tax exemptions, incentives or reliefs under such terms and conditions as they may deem necessary "; WHEREAS, Section 20 (d) (4) of Republic Act 7279 , otherwise known as the Urban Development and Housing Act of 1992 states that " To encourage greater private sector participation in socialized housing and further reduce the cost of housing units for the benefit of the underprivileged and homeless, the following incentives shall be extended to the private sector: d) Exemption from the payment of the following: 4) transfer tax for both raw and completed projects "; TAaCED WHEREAS, Ordinance No. 98-19 exempts community association from the payment of transfer tax but as a community association, it only represent the individual members on all its transaction pertaining to the buying and paying of property under Community Mortgage Program of the National Home Mortgage and Finance Corporation; WHEREAS, individual members of urban poor/community association, on the other hand, are bonafide members of community associations duly accredited by the Sangguniang Panlungsod, who are not tax exempt under Ordinance No. 98-019 and are therefore oblige to pay the corresponding transfer tax, but the truth is, they were the ones who actually buy and pay for the cost of the property and other pertinent documents under the Community Mortgage Program of the National Home Mortgage Finance Corporation (CMP-NHMFC) and whose payment was made only in the name of the community association they belong; WHEREAS, the inclusion of individual members from the payment of transfer tax is necessary to lessen its financial burden; NOW, THEREFORE, BE IT ORDAINED by the Sangguniang Panlungsod of Muntinlupa to amend Sections 1 and 2 of Ordinance 98-019 , as follows: "SEC. 1. Exemption from the payment of Transfer Taxes shall be granted to the seller, donor or grantor of the real property, if it is made in favor of the City Government for its relocation and socialized housing program, or to Urban Poor association through the Community Mortgage Program of the National Home Mortgage Finance Corporation" cDSAEI is hereby amended to read as follows: SECTION 1. Exemption from the payment of transfer taxes shall be granted to the seller, donor or grantor of the real property " and individual members of the urban poor/community association who were in the process of individualization or unitization of their respective Community Mortgage Program project ", provided, that the project is made in favor of the City Government of Muntinlupa for its relocation and socialized housing program or to Urban Poor Association through the Community Mortgage Program of the National Home Mortgage Finance Corporation. "SEC. 2. To avail of this privilege, the landowner, seller, donor and grantor shall be required to secure a certification from the City Urban Planning and Development Office attesting to the fact that the property so disposed is situated within the area earlier earmarked for socialized housing site. The said certificate shall be presented to the City Assessor's Office for proper action/notation. Upon endorsement by the City Assessor's Office, it shall be incumbent upon the City Treasurer to issue a corresponding Certificate of Exemption to facilitate the documentation or registration of the transaction or disposition with the Registry of Deeds for the City of Muntinlupa" is hereby amended to read as follows: SECTION 2. To avail of this privilege, the landowner, seller, donor, grantor " and individual member of the urban poor/community associations " shall be required to secure a certification from the " Urban Poor Affairs Office (UPAO) " attesting that the project so disposed is part of the socialized housing program of the City Government of Muntinlupa. The said certificate shall be presented to the City Assessor's Office for proper action/notation. Upon endorsement by the City Assessor's Office, it shall be incumbent upon the City Treasurer to issue a corresponding Certificate of Exemption to facilitate the documentation or registration of the transaction or disposition with the Registry of Deeds for the City of Muntinlupa. ETIcHa SECTION 3. This transfer tax exemption privilege shall not be applicable to transfers where there are existing liens and/or encumbrances annotated upon the title of the property sought to be transferred. However, the transferor may execute a sworn undertaking in favor of the City Government for the lifting or cancellation of the said lien or encumbrance within thirty (30) days from the execution date of the document for the transfer of the property. Failure of the transferor to effect such cancellation or lifting shall result to the transferor being held liable for the amount of transfer tax otherwise previously exempted, in addition to the corresponding interest and penalties due thereon. SECTION 4. The City Treasurer's Office and the City Assessor's are hereby mandated to adopt, within ten (10) days, the necessary implementing guidelines/procedures from the time of approval for the purpose of carrying out the specific intent of this Ordinance. SECTION 5. This Ordinance shall take effect ten (10) days after completion of its publication in a newspaper of local circulation. APPROVED by the Sangguniang Panlungsod of Muntinlupa this 14th day of November 2002 , on its 54th Regular Session. AEDCHc CONCURRED: (SGD.) ALDRIN L. SAN PEDRO Councilor (SGD.) LUCIO B. CONSTANTINO Councilor (SGD.) DR. NICANOR L. ECHAVEZ Councilor (SGD.) MARIO E. BULAY, JR. Councilor (SGD.) ATTY. PATRICIO L. BONCAYAO, JR. Councilor (SGD.) MAMERTO T. SEVILLA, JR. Councilor (SGD.) ALLAN REY A. CAMILON Councilor (SGD.) RUFINO B. JOAQUIN Councilor (SGD.) ATTY. RAUL R. CORRO Councilor (SGD.) MELCHOR R. TEVES Councilor (SGD.) ATTY. ICASIANO M. DELA REA Councilor (SGD.) CHRISTIAN GLENN D. LORICA Sectoral Representative President Federation of Sangguniang Kabataan (SGD.) ARTEMIO A. SIMUNDAC Sectoral Representative President Association of Barangay Captains ABSENT: ELMER S. ESPELETA Councilor FRANCIS IAN T. BAGATSING Councilor BAL NIEFES Councilor RENE CARL S. CAYETANO Councilor I HEREBY CERTIFY as to the correctness of the foregoing Ordinance. (SGD.) ATTY. ISIDORO L. SORIANO, JR. Secretary Sangguniang Panlungsod ATTESTED: (SGD.) ATTY. JO JASON T. ALCARAZ City Vice Mayor/Presiding Officer APPROVED: (SGD.) ATTY. JAIME R. FRESNEDI City Mayor Date: _____________