Amended Implementing Rules and Regulations of Rule 8 (Local Housing Program) of R.A. 7835

November 20, 2001

HUDCC RESOLUTION NO. 001-01

APPROVING THE ADOPTION OF THE IMPLEMENTING RULES AND REGULATIONS OF RULE 8 (LOCAL HOUSING PROGRAM) OF REPUBLIC ACT 7835

WHEREAS, it is the declared policy of the Philippine Government to provide the people with adequate and decent housing facilities through affordable financing package and to encourage various stakeholders to participate in the government housing program;

WHEREAS, Her Excellency, President Gloria Macapagal-Arroyo has expressed her support for housing projects initiated by national government agencies, especially those benefiting low-salaried government personnel, through the assistance of the Housing and Urban Development Coordinating Council (HUDCC) and the other shelter agencies under its supervision;

WHEREAS, pursuant to Section 4e of Republic Act No. 7835, the National Housing Authority is mandated to implement the Local Housing Program in selected urban and urbanizable areas in all Congressional Districts.

WHEREAS, in order to ensure the accelerated and effective implementation of the program, there is a need to revise the Implementing Rules and Regulations on Local Housing Program to make it more responsive to the constituents of the Congressional Districts. cSATDC

WHEREFORE be it RESOLVED, as it is hereby RESOLVED that the adoption of the amended Implementing rules and Regulations of Rule 8 (Local Housing Program) of RA 7835, be APPROVED, as the same is hereby APPROVED.

APPROVED this 20th day of November 2001, Makati City.

(SGD.) SEC. MICHAEL T. DEFENSOR

Chairman, Housing and Urban Development Coordinating Council

(SGD.) GONZALO BENJAMIN A. BONGOLAN

President, Home Insurance and Guaranty Corporation

(SGD.) EDGARDO D. PAMINTUAN

General Manager, National Housing Authority

(SGD.) ROMULO Q. FABUL

CEO/Commissioner, Housing and Land Use Regulatory Board

(SGD.) MANUEL C. CRISOSTOMO

President & CEO, Home Development Mutual Fund

(SGD.) REMEDIOS I. MACALINCAG

President, Development Bank of the Philippines

(SGD.) JOSE ISIDRO N. CAMACHO

Secretary, Department of Finance

(SGD.) SIMEON A. DATUMANONG

Secretary, Department of Public Works and Highways

(SGD.) DANTE B. CANLAS

Director General, National Economic and Development Authority

(SGD.) MANUEL J. COLAYCO

Representative, Private Sector

(SGD.) ANGELICO T. SALUD

President, National Home Mortgage Finance Corporation

(SGD.) EMILIA T. BONCODIN

Secretary, Department of Budget and Management

(SGD.) BENJAMIN S. ABALOS

Chairman, Metropolitan Manila Development Authority

(SGD.) WINSTON F. GARCIA

President & GM, Government Service Insurance System

(SGD.) CORAZON S. DE LA PAZ

President & CEO, Social Security System

(SGD.) VICTORIA P. GARCHITORENA

Head, Presidential Management Staff

(SGD.) CONRADO P. YUVIENCO

Representative, Private Sector

AMENDED IMPLEMENTING RULES AND REGULATIONS OF REPUBLIC ACT NO. 7835 THE COMPREHENSIVE AND INTEGRATED SHELTER FINANCING ACT OF 1994

RULE VIII

Local Housing Program

SECTION 8.1. Program Scope

8.1.a The Local Housing program involves the implementation of cost-recoverable socialized housing projects in urban and urbanizable areas in all congressional districts.

8.1.b The Program may be implemented under various housing options, approaches and programs to include Slum Upgrading, Sites and Services Development, Completed/Core Housing, Medium Rise Housing to include those which address land tenure issues of urban poor families, assistance for survey works provision/installation/repair of facilities and utilities and other pertinent housing approaches and programs.

8.1.c The funds under the Local Housing Program shall be utilized to finance acquisition of land, land development, housing construction, survey works, and/or installation/construction of project facilities and utilities and other related project components. Projects shall have a feasible project cost recovery mechanism consistent with the intent and cost recovery policy of the Program and with existing policies, rules and regulations of NHA.

8.1.d Target Program beneficiaries include those qualified for Socialized Housing assistance under RA 7279 or the Urban Development and Housing Act. CAaSHI

SECTION 8.2. Program Delivery Scheme

8.2.a Projects under the Local Housing Program may be undertaken by the NHA, on its own, or through joint undertakings/joint venture arrangements with Local Government Units (LGUs), other government agencies, and private sector proponents including landowners, developers, Non governmental Organizations (NGOs), cooperatives and community associations (CA's) or people's organizations (PO's).

8.2.b Partners in joint projects may contribute land or funds for land acquisition, land development and housing construction as their contribution or equity into the project.

8.2.c While Local Housing Funds shall be recovered, other partners contribution may or may not be recovered from the beneficiaries depending on the intention or specifications of the particular fund source.

SECTION 8.3. Allocation of Program Funds

8.3.a Program funds released by the National Government shall be equitably allocated among all congressional districts.

8.3.b The requirements of additional congressional districts created after issuance of these Implementing Rules and Regulations shall be funded out of the funds recovered from initial project investments under the Program.

SECTION 8.4. Guidelines for Project Development

8.4.a Land contributed as equity must be suitable for housing development and its title free from any liens and encumbrances.

8.4.b All projects shall be covered by a Feasibility Study indicating the cost recovery scheme.

8.4.c Housing units shall be disposed through outright sale/cash or installment sale.

8.4.d The preferred cost recovery scheme is through mortgage takeout/buyers' financing where the beneficiaries are eligible for buyers' financing.

8.4.e Project partners, depending on their roles and responsibilities in the project, shall create counterpart teams for purposes of implementing project component(s) under their responsibility.

8.4.f All partners shall secure authorization from their respective Boards on their specific participation in the project including the resources being committed as contribution/equity into the project. HDIaET

SECTION 8.5. Roles and Responsibilities

8.5.a Project partners/proponents under the Local Housing Program may assume any or a combination of the following roles and responsibilities:

8.5.a.1 Provide land suitable for the socialized housing project

8.5.a.2 Mobilize other resources and contribute additional funding for the proposed project

8.5.a.3 Prepare subdivision development plans as well as detailed engineering drawings, technical specifications and cost estimates.

8.5.a.4 Undertake overall project operations and management to include securing of all necessary permits and clearances, implementation/supervision of all development works, beneficiary selection, unit disposition and cost recovery and project maintenance;

8.5.a.5 Other roles and responsibilities as agreed by project partners or as approved by NHA.

8.5.b In addition, the NHA shall assume the following responsibilities:

8.5.b.1 Provide technical assistance to partners, where necessary, in project planning, implementation, beneficiary selection, estate management and all other areas of housing development;

8.5.b.2 Conduct periodic inspection to monitor project implementation and fund utilization.

SECTION 8.6. Fund Management and Control.

8.6.a The NHA shall be responsible for the management, disbursement and control of funds for the Local Housing Program, the basic mechanics of which shall be governed by Rule XII hereof.

8.6.b Actual investments recovered and income realized from the utilization of the fund shall be rolled over to finance new projects under the Local Housing Program.

8.6.c Net earnings from projects implemented under joint venture arrangements shall be prorated among the participating entities based on the contribution of each as prescribed in the Memorandum of Agreement executed by the parties involved.