Guidelines for the Provisional Accreditation of Developers of Socialized Housing Projects

October 23, 2015

HLURB MEMORANDUM CIRCULAR NO. 10-15

 

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), this Guidelines is hereby issued:

SECTION 1. Objective. — This Guidelines aims 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. — This Guidelines shall apply to all developers of socialized housing that have not yet constructed or developed at least 500 housing units but are intending to apply for provisional accreditation as provided under this Guidelines.

SECTION 3. Provisional Accreditation. — Any developer of socialized housing projects that has not yet developed or constructed at least five hundred (500) housing units may apply for provisional accreditation in order that its joint venture agreement entered into with a developer of main subdivision project for the development and production of new socialized housing or socialized housing units may be allowed as the latter's mode of compliance with the balanced housing development requirement of the UDHA provided that it has already secured the development permit of the socialized housing project. Such provisional accreditation shall remain valid and effective unless suspended or revoked.

SECTION 4. Qualifications and Disqualifications for Provisional Accreditation. — The developer of socialized housing projects applying for provisional accreditation must possess all the qualifications and none of the disqualifications as hereinafter set forth:

4.1 Qualifications:

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

4.2 Disqualifications:

4.2.1 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

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

SECTION 5. 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:

5.1 Sworn Application for Accreditation;

5.2 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;

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

5.4 Copy of the notarized joint-venture agreement between the developer of the main subdivision project and the developer of socialized housing;

5.5 Certified true copy of the Development Permit of the socialized housing; and

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

After the initial evaluation of the application and each of the required supporting documents, including ascertaining the completeness thereof, the RFO concerned shall forward and submit all records pertaining to the application to the Accreditation Committee, together with its certification that the applicant has no pending CDO, unpaid fees, fines or penalties imposed by it against the applicant on any of its projects. Upon receipt thereof, the Accreditation Committee shall require all the other regional field offices to likewise submit the corresponding clearance certification that the applicant has no pending CDO, unpaid fees, fines or penalties imposed on it on any of its projects. In case however the applicant has pending CDO, unpaid fees, fines or penalties imposed against it on any of its projects, the certification shall instead set forth the nature and details thereof. Thereafter, the Accreditation Committee shall recommend to the Chief Executive Officer whether to approve or deny the application for accreditation. CAIHTE

SECTION 6. Certificate of Provisional Accreditation. — If the application is approved, a certification shall be issued indicating the following:

6.1 Name and principal address of the provisionally accredited developer;

6.2 Provisional Accreditation Certificate Number;

6.3 Date of the provisional accreditation;

6.4 Official Receipt Number and Amount Paid;

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

6.6 The terms and conditions of the provisional accreditation.

SECTION 7. Effect of Provisional Accreditation. — The provisional accreditation of an applicant shall allow the utilization of the new socialized housing project or units to be developed or produced under the joint venture as compliance of the developer of the main subdivision project with the balanced housing development requirement of UDHA.

SECTION 8. Suspension and Revocation of the Provisional Accreditation. —

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

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

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

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

8.2 The provisional 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 provisional accreditation.

An RFO where any of the projects of a provisionally accredited developer is registered shall report to the CEO any of the incidents mentioned in Sections 8.1.1, 8.1.2 and 8.1.3 above within five (5) days from its occurrence in order that appropriate sanctions may be imposed.

In all instances, the provisionally accredited developer shall first be required to explain in writing why no suspension or revocation of the provisional 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.

SECTION 9. Effects of Suspension of the Provisional Accreditation. — The suspension or revocation of the provisional accreditation of the developer of the compliance project shall be a ground for the suspension of the license to sell of the main subdivision project. Such suspension of the license to sell of the main subdivision project may only be lifted upon reinstatement of the provisional accreditation, subject to the payment and satisfaction of applicable fees and fines or penalties that may have been imposed.

SECTION 10. 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.

SECTION 11. Upgrading to General Accreditation. — The provisional accreditation of a developer of socialized housing may be upgraded to general accreditation as provided under Memorandum Circular No. 06, Series of 2013 upon submission of proof of completion of 500 housing units, subject to the same qualification and disqualification requirements as provided under the said memorandum circular.

SECTION 12. Separability Clause. — The provisions of this 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 13. Effectivity Clause. — This Guidelines shall take effect immediately.

For strict compliance and implementation.

 

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