Guidelines for the Accreditation of Developers of Socialized Housing Projects

January 2, 2013

HLURB MEMORANDUM CIRCULAR NO. 06-13

 

Pursuant to Section 7 of the Housing and Land Use Regulatory Board (HLURB) Resolution No. 890 Series of 2012, or the Revised Implementing Rules and Regulations (IRR) to Govern Section 18 of Republic Act No. 7279, otherwise known as the Urban Development and Housing Act of 1992 (UDHA), the following guidelines are hereby issued:

RULE I

General Provisions

SECTION 1. Objective. — These guidelines aim to provide a uniform application, interpretation, usage, and implementation of Section 5 of Board Resolution No. 890, Series of 2012, in relation to Section 4.1 thereof.

SECTION 2. Scope of Application. — These guidelines shall apply to all developers of socialized housing projects applying for accreditation as a requirement before they can enter into a joint venture (JV) with developers of main subdivision projects for the development new socialized housing projects or production of new socialized housing units to be utilized as compliance to Section 18 of UDHA, or the balanced housing development requirement. ASHEca

SECTION 3. Definition of Terms. — For purposes of these guidelines, the following terms or words shall, unless the context indicates otherwise, mean or be understood as follows:

3.1 "Applicant" refers to the developer of socialized housing projects applying for accreditation.

3.2 "Cease and Desist Order" refers to an order issued by HLURB directed against a developer, enjoining it from further selling lots and/or units in the said project.

3.3 "Chief Executive Officer" refers to the Commissioner and Chief Executive Officer of HLURB.

3.4 "Compliance Project" refers to the socialized housing project, multi-level, medium-rise housing project, or condominium project sold at or below the prevailing price ceiling for socialized housing or other developments utilized to comply with the balanced housing development requirement of UDHA.

3.5 "Developer" refers to the person, natural or juridical, who develops or improves the subdivision project for and in behalf of the owner thereof. The land owner who develops a subdivision project directly shall be considered as a developer.

3.6 "Joint Venture" refers to the agreement between a developer of a main subdivision project and an HLURB-accredited developer of socialized housing projects, for which purpose the parties thereto combine their funds, land resource, facilities and services, to comply with the balanced housing development requirement of UDHA.

3.7 "Joint Venture Agreement" refers to the document embodying the terms of the joint venture referred to in Section 3.6 above.

3.8 "Main Subdivision Project" refers to the proposed residential subdivision project required to comply with the twenty percent (20%) balanced housing development requirement of UDHA, the total subdivision project cost of which shall be the basis for computing such balanced housing development requirement.

3.9 "Socialized Housing Project" refers to residential subdivision projects, and multi-level and medium rise housing projects and condominium projects, sold at or below the prevailing price ceiling for socialized housing and which comply with the standards under Batas Pambansa Blg. 220 (BP 220), undertaken by the government or the private sector for underprivileged and homeless citizens.

3.10 "Subdivision Project" refers to a tract or parcel of land registered under the Land Registration Act (Act No. 496), as amended by Presidential Decree No. 1529, which is partitioned primarily for residential purposes into individual lots with or without improvements thereon, and offered to the public for sale, in cash or in instalment terms.

SECTION 4. Requirement of Accreditation. — For a JV between the developer of a main subdivision project and a developer of socialized housing projects for the development of new socialized housing projects or production of new socialized housing units to be allowed as a mode of compliance with the balanced housing development requirement of UDHA, the developer of the socialized housing projects which is a party to such JV must first be accredited by HLURB. DACTSa

SECTION 5. Qualifications and Disqualifications for Accreditation.— All developers of socialized housing projects applying for accreditation must possess all the qualifications and none of the disqualifications as hereinafter set forth.

RULE II

Accreditation and Qualifications

SECTION 6. General Accreditation. — A developer of socialized housing projects shall first apply for general accreditation with HLURB before a JV between a developer of a main subdivision project and said developer of socialized housing project for the development of a new socialized housing project or production of new socialized housing units, may be allowed as compliance with the balanced housing development requirement of UDHA.

SECTION 7. Qualifications and Disqualifications for General Accreditation. — The developer of socialized housing projects applying for general accreditation must possess the following qualifications and none of the following disqualifications:

7.1 Qualifications:

7.1.1 It must be engaged in the development of socialized housing projects; and

7.1.2 It must have produced at least two thousand (2,000) units.

7.2 Disqualifications:

7.2.1 It must have no pending cease and desist order (CDO) or suspension of license to sell (LS) issued by any of the Regional Field Offices (RFO) of HLURB against it for any of its projects; and

7.2.2 It must have no unpaid fees, fines or penalties imposed by any RFOs against it for any of its projects.

SECTION 8. Limited Accreditation. — Notwithstanding the provisions of Sections 6 and 7 above, a developer of socialized housing projects may apply and qualify for limited accreditation in the following instances: EHScCA

8.1 If more than fifty percent (50%) of the voting stock of the applicant is owned by the developer of the main subdivision project with which such applicant will enter into a JV to be utilized as compliance with the balanced housing development requirement of UDHA; or

8.2 If more than fifty percent (50%) of the voting stock of the applicant and if more than fifty percent (50%) of the voting stock of the developer of the main subdivision project, with which such applicant will enter into a JV to be utilized as compliance with the balanced housing development requirement of UDHA, are owned by the same corporation.

SECTION 9. Qualifications and Disqualifications for Limited Accreditation. — A developer of socialized housing projects applying for limited accreditation must possess the qualification provided for under Section 7.1.1 hereof but need not possess the qualification provided for under Section 7.1.2 hereof. In addition, the applicant must not have any of the disqualifications provided under Section 7.2 hereof. ACcHIa

However, the developer of a main subdivision project which will comply with the balanced housing development requirement of UDHA through a JV with a developer of socialized housing projects which has been accredited under Section 8 hereof must possess the following qualifications and none of the following disqualifications:

9.1 Qualifications:

9.1.1 It must have been engaged in the business of real estate development for at least five (5) years; and

9.1.2 It must have produced at least five thousand (5,000) housing or condominium units.

9.2 Disqualifications:

9.2.1 It must have no pending CDO or suspension of LS issued by any of the RFOs against it for any of its projects; and

9.2.2 It must have no unpaid fees, fines or penalties imposed by any of the RFOs against it for any of its projects.

RULE III

Issuance of Certificate of Accreditation

SECTION 10. Application and Documentary Requirements. — The applicant shall submit the following documents to the RFO which has jurisdiction over the region where the principal office of the applicant is located:

10.1 Sworn Application for Accreditation;

10.2 Certified true copies of its SEC Certificate of Registration, Articles of Incorporation, By-laws, including all amendments thereto, and its latest General Information Sheet submitted to the SEC;

10.3 A copy of its latest Audited Financial Statement and its latest Income Tax Return, if applicable;

10.4 Proof of completion of the required number of units produced, i.e., either the certified true copies of the Certificate/s of Completion (COC) of the socialized housing project/s where the required total number of produced units are located or a certification from any of the RFOs stating the completion of the required number of socialized housing units produced, if applicable;

10.5 Certification from each RFO that the developer has no pending CDO, unpaid fees, fines, or penalties imposed by it against the developer on any of its projects; and

10.6 Copy of the official receipt evidencing payment of the accreditation fee.

In addition to the applicable requirements stated herein, the applicant for a limited accreditation shall specify in its sworn application the name/s of the developer/s of main subdivisions with which it may enter into JVs as provided in Section 9 hereof and submit certified true copies of the latest GIS submitted to the SEC by the developer/s of the main subdivision/s as provided in Section 9.2.

After the initial evaluation of the application and each of the required supporting documents, including ascertaining the completeness thereof, the RFO concerned shall submit its recommendation and all records pertaining to the application to the Chief Executive Officer (CEO) who shall then approve or deny the application for accreditation.

SECTION 11. Certificate of Accreditation. — If the application is approved, a certification shall be issued indicating the following:

11.1 Name of the accredited developer;

11.2 Principal Address;

11.3 Accreditation Certificate Number;

11.4 Date of Accreditation;

11.5 Official Receipt Number and Amount Paid;

11.6 Taxpayer's Identification Number (TIN) of the applicant; and

11.7 Terms and Conditions of the accreditation.

In case of limited accreditation, a separate certificate shall be issued for every accreditation allowing a JV as a mode of compliance with the balanced housing development requirement of UDHA by each developer of the main subdivision project. The name of such developer of main subdivision project shall likewise be stated in the certificate of accreditation.

SECTION 12. Effect of Accreditation. — The accreditation of an applicant shall allow the joint venture entered into by it with a developer of a main subdivision project, for the development of new socialized housing projects or production of new socialized housing units, to be utilized as compliance with the balanced housing development requirement of UDHA. Such accreditation shall remain valid and effective unless suspended or revoked. ECcTaS

RULE IV

Suspension, Revocation and Reinstatement of Accreditation

SECTION 13. Suspension and Revocation of Accreditation. —

13.1 The accreditation of a developer may be suspended by the CEO on the following grounds:

13.1.1 Issuance of a CDO against the developer on any of its projects; or

13.1.2 Suspension or revocation of the LS of any of the developer's projects;

13.1.3 Failure of the accredited developer to complete the development of a compliance project within one year from the issuance of its LS or within such other period of time fixed by HLURB.

13.2 The accreditation of a developer may be revoked by the CEO on the ground of misrepresentation on the part of the developer in applying for its accreditation.

An RFO where any of the projects of an accredited developer is registered shall report to the CEO any of the incidents mentioned in Sections 13.1.1, 13.1.2 and 13.1.3 above within five (5) days from its occurrence in order that appropriate sanctions may be imposed.

In all instances, the accredited developer shall first be required to explain in writing why no suspension or revocation of the accreditation should be imposed against it.

The suspension or revocation shall take effect upon signing of the order of suspension or revocation by the CEO. IaSAHC

SECTION 14. Effects of Suspension of the Accreditation. — The suspension of accreditation of any developer of socialized housing projects shall have the following effects:

14.1 Any JV entered into by such developer with any developer of main subdivision projects after the suspension of the accreditation shall not be allowed as the latter's compliance with the balanced housing development requirement of UDHA; and

14.2 Any obligation or liability incurred by such developer under any JV entered into by it prior to the suspension of accreditation shall subsist, more particularly the obligation to complete the development of the compliance project.

SECTION 15. Reinstatement of Accreditation. — The CEO may reinstate the accreditation of developer of socialized housing projects upon lifting of the CDO or of the suspension of the LS of any of its projects.

RULE V

Separability and Effectivity

SECTION 17. ^* Separability Clause. — The provisions of these guidelines are hereby declared separable, and in the event that any provision herein is declared null and void, the validity of all other provisions shall not be affected thereby.

SECTION 18. Effectivity Clause. — These guidelines shall take effect immediately.

For strict compliance and implementation.

 

(SGD.) ANTONIO M. BERNARDOCommissioner and Chief Executive Officer