Board Resolution No. R-575, Amending Sections 1(b), (c), (e.3), (i); 2, 3(c), 3(d.3) and (d.4), 3(e) and 7, of the Implementing Rules and Regulations to Govern Section 18 of R.A. No. 7279 Otherwise Known as the Urban Development and Housing Act of 1992

October 23, 1995

HLURB ADMINISTRATIVE ORDER NO. 10-95

 

Anent Board Resolution No. R-575, Series of 1995, approved by the Board on 25 September 1995, please be advised that:

1.  With the publication of said resolution in Today on 11 October 1995 and in Malaya on 18 October, the same takes effect immediately after the last publication.

2.  Salient features of subject resolution, among others, are as follows:

2.1  Exclusion of condominium projects from the coverage of the 20 percent socialized/balanced housing development requirement, and therefore the deletion from the rules of all references to condominiums

2.2  Limiting the developer's mode of compliance under the Community Mortgage Program to participation as project financier and/or developer [Section 3(c)(3)]

2.3  Stress on the responsibility of the developer, in case of joint ventures, for the project completion

2.4  Clarification that advanced socialized housing credit is limited to projects approved after the effectivity of Implementing Rules and Regulations to Govern Sec. 18 of RA 7279 (i.e., 02 July 1992)

3.  The full text of the resolution is quoted hereunder for your reference:

"WHEREAS, it is the policy of the state to encourage greater private sector participation in socialized housing under EO 90 and insure easy compliance with the 20% socialized housing quota under RA 7279;

WHEREAS, further review of RA 7279 and the proceedings of the Bicameral Conference Committee on the same did not yield any legal basis for the inclusion of residential condominium projects in the coverage of Sec. 18 of RA 7279 as attested by DOJ Opinion No. 80, Series of 1995;

WHEREAS, a number of developers have to be thoroughly enlightened on the procedure for alternative modes of compliance to the 20% socialized housing quota;

WHEREAS, developers need a good grasp of the procedures on drawing from advance socialized housing credits to be able to exercise greater flexibility to produce big inventories for socialized housing; and

WHEREAS, this Board has conducted consultation meetings on the proposed amendments;

WHEREFORE; be it RESOLVED as it is hereby RESOLVED that Sections 1(b) (c) (e.3) (i), 2, 3(c), 3(d.3 and d.4), (e) and 7 of the Implementing Rules and Regulations to Govern Section 18 of RA 7279 otherwise known as the Urban Development and Housing Act of 1992 be revised to read as follows:

SEC. 1.  Definition of Terms. — For the purpose of these Rules and Regulations, the term or words used herein shall, unless the text indicates otherwise, mean or be understood as follows:

(a)  "Board" shall refer to the Housing and Land Use Regulatory Board

(b)  "Developer" as defined under PD 4726

(c)  "Project Area" shall mean:

c.1  for subdivision projects without housing component, the gross developed land area

c.2  for subdivision projects with housing component:

c.2.1  gross developed land area, and

c.2.2  aggregate floor area of all housing units

(d)  "Project Cost" refers to cost of the project based on the following:

d.1  current market value of the raw land plus estimated land development cost plus estimated housing project cost, or

d.2  HIGC preliminary appraisal for projects requiring HIGC guarantee or appraisal

(e)  "Socialized Housing" — In addition to the definition in the Housing Act (RA 7279), it shall refer to projects intended for the underprivileged and homeless wherein the housing package selling price is within the lowest interest rate of the Unified Home Lending Program (UHLP) or any equivalent housing program of the Government, the private sector or non-governmental organizations.

(f)  "Subdivision Project" as defined in PD 957

(g)  "Main Subdivision Project shall refer to the proposed residential subdivision project which shall be the basis for computing the 20% requirement for socialized housing.

(h)  "New Settlement" shall mean any new, large-scale development, consisting of one or several subdivision projects planned to provide housing, work places and related facilities within a more or less self-contained environment.

SEC. 2.  Scope of Application. — These Rules and Regulations shall apply to residential subdivision projects and/or proposed expansion of existing residential subdivision filed after the date of effectivity of these implementing rules and regulations.

Proposed main subdivision projects falling under the category of socialized housing as herein defined shall be considered as having fully complied with the requirements of Sec. 18 and are thus exempted from the 20% requirement for socialized housing.

SEC. 3.  Mode of Compliance. —

(a)  For main subdivision projects which are limited to the sale of lots only:

xxx xxx xxx

(b)  For main subdivision projects which consist of the sale of house and lot packages:

xxx xxx xxx

(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:

xxx xxx xxx

(3)  Community Mortgage Program (CMP). The DEVELOPER'S PARTICIPATION IN A CMP PROJECT MAY EITHER BE ANY OF THE FOLLOWING:

3.1  AS FINANCIER

3.2  AS A DEVELOPER

(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.

IN CASE THE JOINT-VENTURE PROJECT DOES NOT PROSPER OR MATERIALIZE, THE SOLE RESPONSIBILITY FOR PROJECT COMPLETION SHALL BE IN THE DEVELOPER OF THE MAIN SUBDIVISION PROJECT.

The developer shall abide by the implementing guidelines on joint-venture programs of the local government units concerned, Section 6.c of the implementing rules that governs Section 18 of RA 7279 or any of the housing agencies, who shall in turn certify to the developer's compliance to the 20% requirement.

(d)  Developers may undertake a large socialized housing project in advance in order to build up a credit balance against which future main subdivision project can draw their 20% requirements, provided that at the time the main project is to be developed outside of the city or municipality where the large socialized housing project is located, a socialized housing project is deemed not feasible or viable in that same city or municipality.

ONLY PROJECTS APPROVED AFTER THE EFFECTIVITY OF THE IMPLEMENTING RULES AND REGULATIONS TO GOVERN SEC. 18 OTHERWISE KNOWN AS "BALANCED HOUSING DEVELOPMENT" OF RA 7279 (UDHA) SHALL BE VALID FOR ADVANCE CREDIT.

SEC. 7.  Time of Completion. — Socialized housing projects shall be completed within one (1) year from the date of issuance of the license to sell for the subdivision project or as approved by the Board and in accordance with the rules and regulations implementing PD 957 and BP 220.

xxx xxx xxx

APPROVED this 24th day of September 1995, Quezon City."

For your information, guidance and compliance.

(SGD.) ERNESTO C. MENDIOLACommissioner and Chief Executive Officer

Board Resolution No. R-575 Series of 1995

AMENDING SECTIONS 1 (b) (c) (e.3) (i); 2, (c) 3 (d.3) AND (d.4), 3 (e) AND 7 OF THE IMPLEMENTING RULES AND REGULATIONS TO GOVERN SECTION 18 OF REPUBLIC ACT NO. 7279 OTHERWISE KNOWN AS THE URBAN DEVELOPMENT AND HOUSING ACT OF 1992

WHEREAS, it is the policy of the state to encourage greater private sector participation in socialized housing under EO 90 and insure easy compliance with the 20% socialized housing quota under RA 7279;

WHEREAS, further review of RA 7279 and the proceedings of the Bicameral Conference Committee on the same did not yield any legal basis for the inclusion of residential condominium projects in the coverage of Sec. 18 of RA 7279 as attested by DOJ Opinion No. 80, Series of 1995;

WHEREAS, a number of developers have to be thoroughly enlightened on the procedure for alternative modes of compliance to the 20% socialized housing quota;

WHEREAS, developers need a good grasp of the procedures on drawing from advance socialized housing credits to be able to exercise greater flexibility to produce big inventories for socialized housing: and

WHEREAS, this Board has conducted consultation meetings on the proposed amendments;

WHEREFORE; be it RESOLVED as it is hereby RESOLVED that Sections 1(b) (c) (e.3) (i), 2, 3(c), 3(d.3 and d.4), (e) and 7 of the Implementing Rules and Regulations to Govern Section 18 of RA 7279 otherwise known as the Urban Development and Housing Act of 1992 be revised to read as follows:

SECTION 1.  Definition of Terms. — For the purpose of these Rules and Regulations, the term of words used herein shall, unless the text indicates otherwise, mean or be understood as follows:

(a)  "Board" shall refer to the Housing and Land Use Regulatory Board

(b)  "Developer" as defined under PD 4726

(c)  "Project Area" shall mean:

c.1  for subdivision projects without housing component, the gross developed land area

c.2  for subdivision projects with housing component:

c.2.1  gross developed land area, and

c.2.2  aggregate floor area of all housing units

(d)  "Project Cost" refers to cost of the project based on the following:

d.1  current market value of the raw land plus estimated land development cost plus estimated housing project cost, or

d.2  HIGC preliminary appraisal for projects requiring HIGC guarantee or HIGC appraisal

(e)  "Socialized Housing" — In addition to the definition in the Housing Act (RA 7279), it shall refer to projects intended for the underprivileged and homeless wherein the housing package selling price is within the lowest interest rate of the Unified Home Lending Program (UHLP) or any equivalent housing program of the Government, the private sector or non-governmental organizations.

(f)  "Subdivision Project" as defined in PD 957

(g)  "Main Subdivision Project shall refer to the proposed residential subdivision project which shall be the basis for computing the 20% requirement for socialized housing.

(h)  "New Settlement" shall mean any new, large-scale development, consisting of one or several subdivision projects planned to provide housing, work places and related facilities within a more or less self-contained environment.

SECTION 2.  Scope of Application. — These Rules and Regulations shall apply to residential subdivision projects and/or proposed expansion of existing residential subdivision filed after the date of effectivity of these implementing rules and regulations.

Proposed main subdivision projects falling under the category of socialized housing as herein defined shall be considered as having fully complied with the requirements of Sec. 18 and are thus exempted from the 20% requirement for socialized housing.

SECTION 3.  Mode of Compliance. —

(a)  For main subdivision projects which are limited to the sale of lots only:

xxx xxx xxx

(b)  For main subdivision projects which consist of the sale of house and lot packages:

xxx xxx xxx

(c)  The socialized housing project equivalent to twenty percent (20%) or total subdivision project cost may also be complied with in any of the following manner leasable in the municipality or city:

xxx xxx xxx

(3)  Community Mortgage Program (CMP). The developer's PARTICIPATION IN A CMP PROJECT MAY EITHER BE ANY OF THE FOLLOWING:

3.1  AS FINANCIER

3.2  AS A DEVELOPER

(4)  Joint-Venture Projects. The development 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.

IN CASE THE JOINT-VENTURE PROJECT DOES NOT PROSPER OR MATERIALIZE, THE SOLE RESPONSIBILITY FOR PROJECT COMPLETION SHALL BE IN THE DEVELOPER OF THE MAIN SUBDIVISION PROJECT.

The developer shall abide by the Implementing guidelines on joint-venture programs of the local government units concerned, Section 6.c of the Implementing rules that governs Section 18 of RA 7279 or any of the housing agencies, who shall in turn certify the developer's compliance to the 20% requirement.

(d)  Developers may undertake a large socialized housing project in advance in order to build up a credit balance against which future main subdivision project can draw their 20% requirements, provided that at the time the main project is to be developed outside of the city or municipality where the large socialized housing project is located, a socialized housing project is deemed not feasible or viable in that same city or municipality.

ONLY PROJECTS APPROVED AFTER THE EFFECTIVITY OF THE IMPLEMENTING RULES AND REGULATIONS TO GOVERN SEC. 18 OTHERWISE KNOWN AS "BALANCED HOUSING DEVELOPMENT" OF RA 7279 (UDHA) SHALL BE VALID FOR ADVANCE CREDIT.

SECTION 7.  Time of Completion. — Socialized housing projects shall be completed one (1) year from the date of issuance of the license to sell for the subdivision project or as approved by the Board and in accordance with the rules and regulations implementing PD 957 BP 220.

xxx xxx xxx

APPROVED this 25th day of September 1995, Quezon City.

(SGD.) DIONISIO C. DE LA SERNAChairman, HUDCCEx-Officio Chairman, HLURB

(SGD.) ISAGANI B. VALDELLONDeputy Director General, NEDAEx-Officio Commissioner

(SGD.) PRESBITERO J. VELASCO, JR.Undersecretary, DOJEx-Officio Commissioner

(SGD.) SIMEON R. VENTURAUndersecretary, DILGEx-Officio Commissioner

(SGD.) JOEL L. ALTEAAsst. Secretary, DPWHEx-Officio Commissioner

(SGD.) ERNESTO C. MENDIOLACommissioner and Chief Executive Officer

(SGD.) ROMULO Q. FABULCommissioner

(SGD.) LUIS T. TUNGPALANCommissioner

(SGD.) TERESITA A. DESIERTOCommissioner