On August 17, 2007, HLURB Resolution No. 806-07 was enacted to amend Section 3.C.4 of the Implementing Rules and Regulations governing Section 18 of R.A. 7279. The amendment clarifies that joint ventures, as a mode of compliance, must meet specific legal criteria akin to partnerships, emphasizing the necessity of including provisions for a common fund contribution and profit sharing in the Joint-Venture Agreement. Developers can collaborate with local government units or other entities to fulfill the socialized housing requirement, which must equate to 20% of the subdivision project’s total cost or area. The revised rules aim to ensure that joint ventures effectively contribute to socialized housing projects.
August 17, 2007
HLURB RESOLUTION NO. 806-07
AMENDING SECTION 3.C.4 OF IMPLEMENTING RULES AND REGULATIONS TO GOVERN SECTION 18 OF R.A. 7279
WHEREAS, Joint Ventures are one of the modes of compliance to Sec. 18 of R.A. 7279;
WHEREAS, Joint Ventures are governed by the law on partnerships;
WHEREAS, there is a need to require the provision of the two basic elements of a partnership to ensure that the joint ventures submitted as compliance to Section 18 of R.A. 7279, legally qualify as such;
WHEREFORE, be it RESOLVED, as it is hereby RESOLVED, that Section 3.c.4 of Implementing Rules and Regulations to Govern Section 18 of R.A. 7279 be revised to read as follows:
"Section 3. Mode of Compliance. —
(a) For main subdivision projects which are limited to the sale of lots only: . . .
(b) For main subdivision projects which consist of the sale of house and lot packages: . . .
(c) The socialized housing project equivalent to twenty percent (20%) of total subdivision project cost may also be complied with in any of the following manner feasible in the municipality or city: . . . AcICHD
(3) Community Mortgage Program (CMP). The developer's participation in a CMP project may either be any of the following: . . .
(4) Joint-Venture Projects. The developer may enter into a joint project or agreement with the concerned local government unit, with another private developer or any of the housing agencies, to develop a socialized housing project. His participation shall be equivalent to 20% of project area or 20% of the cost of the main subdivision project. The developer shall be required to submit to the HLURB a copy of the Joint-Venture Contract as proof of participation in a Joint-Venture Project. THE JOINT VENTURE AGREEMENT SHOULD CONTAIN THE FOLLOWING: THE CONTRIBUTION OF A SPECIFIED SUM TO A COMMON FUND AND THE SHARING OF PROFITS.
xxx xxx xxx"
APPROVED this 17th day of August 2007 at Makati City.
(SGD.) HON. NOLI L. DE CASTROVice-President of the Philippines and HUDCC Chairman
(SGD.) ERNESTO L. PINEDAUndersecretary, DOJ
(SGD.) ROMULO Q.M. FABULChief Executive Officer and
(SGD.) AUGUSTO B. SANTOSDeputy Director General, NEDA
(SGD.) TERESITA A. DESIERTOCommissioner
(SGD.) AUSTERE A. PANADEROUndersecretary, DILG
(SGD.) JESUS YAP PANGCommissioner
(SGD.) JOEL I. JACOBDPWH
(SGD.) ARTURO M. DUBLADOCommissioner
Attested by:
(SGD.) CHARITO B. LANSANGBoard Secretary