Guidelines Providing for Incentives and Uniform Procedures for Developers Complying with Section 18 of Republic Act No. 7279, or the Urban Development and Housing Act of 1992, to Benefit Areas Affected by Calamities

 

February 12, 2014

HLURB MEMORANDUM CIRCULAR NO. 001-14

 

As our Country is continually exposed to calamities like Storm Sendong, Typhoon Pablo, the Zamboanga Siege, Bohol Earthquake and Typhoon Yolanda which bring large-scale damage and devastation to houses, properties and infrastructures and render many Filipinos displaced and homeless, the need for immediate reconstruction and provision of new and more dwellings and houses to those affected and who will be affected has become an added task for the Government in alleviating the country's housing backlog and implementing the State's comprehensive and continuing Urban Development and Housing Program to provide decent and affordable housing to the poor and underprivileged. As its share in aiding those affected by calamities, the Housing and Land Use Regulatory Board (HLURB) as the primary government agency mandated by Republic Act No. 7279, or the "The Urban Development and Housing Act of 1992 (UDHA)" to implement and regulate Section 18 thereof or the Balanced Housing Development, is providing incentives to developers to help those areas affected by calamities by making them the beneficiaries of the Balanced Housing Development. Hence, pursuant to this mandate as implemented by HLURB Resolution No. 890, Series of 2012, or the Revised Implementing Rules and Regulations (IRR) to Govern Section 18 of Republic Act No. 7279, the following guidelines are hereby issued.

RULE I

General Provisions

SECTION 1. Objective. — These guidelines aim to encourage developers of main subdivision projects to avail of the manners and modes of compliance with Section 18 of UDHA that will benefit areas affected by calamities through the immediate reconstruction of dwelling and shelter, development of socialized housing, and provision of facilities, centers and basic amenities. To attain this, incentives shall be extended and the procedures in the availment thereof are herein provided for uniform interpretation, usage and speedy implementation.

SECTION 2. Scope of Application. — These guidelines shall apply to developers of main subdivision projects complying with Section 18 of UDHA to benefit areas affected by calamities where houses and dwellings are damaged or destroyed.

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: HAaDTI

3.1 "Affected Communities" refers to regions, provinces, cities and municipalities where properties, infrastructures, and houses have been damaged or destroyed by calamities and declared as such by competent government agencies and qualified to be the beneficiaries of the Balanced Housing Development in accordance with these guidelines.

3.2 "Asset-Backed Securities" refers to the certificates originated or conveyed by the Social Housing Finance Corporation (SHFC) in accordance with Republic Act No. 9267 or the "Securitization Act of 2004".

3.3. "Calamity" refers to a natural or man-made event or occurrence which causes damage and destruction to houses, infrastructures and properties.

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

3.5 "Certificate of Initial Compliance" refers to a document to be issued by the regional field office of the HLURB where the compliance project shall be eventually registered upon submission of preliminary documents and which shall serve as proof of initial compliance by the developer of the main subdivision project for the purpose of applying for the latter's certificate of registration and license to sell.

3.6 "Community Mortgage Program" refers to a financing window or scheme that is funded by the government through the SHFC and that provides long-term loans to a legally-organized association consisting of the residents of a blighted and depressed community, enabling the association and its qualified members to acquire ownership of or tenurial security on the property and land they occupy.

3.7 "Compliance" refers to any of the manners and modes enumerated by Section 18 of Republic Act No. 7279 and as implemented by Board Resolution No. 890, series of 2013 of developing a socialized housing, together with sites and services development, which a developer of a main subdivision project is required to fulfil as part of a system to carry out the State's Policy of undertaking a comprehensive and continuing Urban Development and Housing Program.

3.8 "Compliance Certificate" refers to a document that proves that the developer of a main subdivision has complied with the balanced housing development requirement of UDHA. This compliance certificate is issued by HLURB to the developer of the main subdivision project upon submission of proof of completion of the compliance project. IASEca

3.9 "Compliance Project" refers to the entire or a portion of the socialized housing project that will benefit areas affected by calamities and utilized to comply with the balanced housing development requirement of UDHA. It also refers to the reconstruction of affected communities or to the provision of educational facilities, health facilities, productivity/livelihood centers and other basic amenities and facilities mentioned in Section 21 of the UDHA provided to benefit those affected by calamities.

3.10 "Initial Compliance" refers to the required amount of compliance the developer needs to comply with for the purpose of the issuance of the certificate of registration and license to sell of the main subdivision project. Such compliance shall benefit those affected by calamities.

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

3.12 "Land Development" refers to land clearing and grubbing, road construction, installation of power and water distribution system, construction of drainage and sewerage system and other amenities and facilities included in the approved development plan.

3.13 "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 area or total subdivision project cost of which shall be the basis for computing such balanced housing development requirement.

3.14 "New Settlement" refers to socialized housing projects, or similar housing development to be developed to benefit areas affected by calamities and which may be or may not be provided with access to basic facilities and services as referred to in Sections 21 and 22 of UDHA.

3.15 "Non-Performing Socialized Housing Assets" refers to socialized housing units or projects owned by the housing agencies needing rehabilitation before they can be made available for sale at or below the prevailing price ceiling for socialized housing under the IRR of Batas Pambansa Blg. 220 (BP 220).

3.16 "Rehabilitation" refers to the repair and restoration of existing socialized housing projects which are already considered as non-performing assets of the housing agencies, in accordance with the standards under the implementing rules and regulations of Batas Pambansa Blg. 220. THEcAS

3.17 "Resettlement Areas" refers to areas identified by the National Housing Authority (NHA) or by a local government unit, with respect to areas under or within its jurisdiction, which shall be utilized for the relocation of those affected by calamities.

3.18 "Slum Improvement and Resettlement Program" and "Zonal Improvement Program" refer to the programs of the National Housing Authority of upgrading and improving blighted areas pursuant to existing statutes and pertinent executive issuances.

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

3.20 "Takeover Development" refers to the action or measure undertaken by HLURB to cause the development and completion of the subdivision or condominium project at the expense of the owner or developer, jointly and severally, in cases where the owner or developer has refused or failed to develop or complete the development of the project as provided in Presidential Decree No. 957.

3.21 "Total Subdivision Area" refers to: (i) gross land area for development of subdivision projects without housing component; or (ii) gross land area for development plus the aggregate floor area of all housing units of subdivision projects with housing components.

3.22 "Total Subdivision Project Cost" refers to the total cost of: (i) raw land, based on the zonal value at the time of application for subdivision development permit, (ii) land development and (iii) housing component construction.

SECTION 4. Incentives and Incentivized Requirements. — For a minimum initial proof of compliance equivalent to five percent (5%) of either the total subdivision project area or total subdivision project cost of the main subdivision project, the license to sell of the main subdivision project may be issued provided that such compliance or compliance project shall benefit or be located in calamity-affected areas in accordance with Sections 1 and 2 hereof. 

To further expedite the issuance of the CR/LS of the main subdivision project, in lieu of the annotated license to sell of the socialized housing project or the issued building permit of the facility, center or amenity to be developed or provided to benefit an area affected by a calamity, the developer may instead submit, together with the other documentary requirements as hereinafter provided, the site development or building plan, work program and bill of materials of the project as the initial proof of compliance. CDESIA

Subject to the minimum requirement of five percent (5%) for the developer's initial compliance as herein provided, a compliance or compliance project benefitting or located in areas affected by calamities may be simultaneously utilized as initial compliance by more than one main subdivision projects.

SECTION 5. Exemptions and Priority Processing. — For the purpose of expediting the issuance of the CR/LS of both the main subdivision and compliance projects and the accreditation of developers and non-government organizations (NGOs), certain qualification requirements and documentary submissions shall be waived and dispensed with, as hereinafter provided.

All Regional Field Offices (RFO) of HLURB shall issue a certificate of initial compliance (CIC) and shall prioritize its issuance and the processing of the CR/LS of both the main subdivision and compliance projects intended to benefit areas affected by calamities. Such CIC shall be accordingly numbered, dated, and signed by the Head of the RFO issuing the same. The format of the CIC is hereto attached as Annex "A".

SECTION 6. Completion of Proof of Compliance. — Within the first half of the period of completion of the main subdivision project as fixed by HLURB, the developer shall submit the required proof of compliance with Section 18 of UDHA equivalent to at least 20% of either the total subdivision project area or total subdivision project cost, including the issued and annotated LS of the socialized housing project or the building permit of the facility, center or amenity utilized as initial compliance. The developer shall likewise submit the issued LS of the main subdivision project for the annotation thereon of the submitted proof of full compliance.

In case the additional compliance or compliance project to complete the twenty percent (20%) requirement shall likewise benefit or be located in calamity-affected areas, the incentivized requirements and procedure as provided in Section 4 hereof shall similarly apply.

RULE II

Manners and Modes of Compliance

SUB-RULE II-A

Balanced Housing Development

SECTION 7. Initial Compliance. — For purposes of complying under Section 3 of Board Resolution No. 890, Series of 2012 to benefit areas affected by calamities, the developer of the main subdivision project can develop a socialized housing project: aCSHDI

7.1 with an area equivalent to at least five percent (5%) of the total subdivision area of the main subdivision project; or

7.2 with a cost equivalent to at least five percent (5%) of the total subdivision project cost of the main subdivision project.

SECTION 8. Certificate of Initial Compliance and Incentivized Requirements. — The developer can secure a CIC from the RFO where the initial compliance project is to be registered by submitting the following:

8.1 Title to or authority to develop the property;

8.2 A copy of the site development plan, program of development and bill of materials; and

8.3 A sworn undertaking executed by the developer to complete the development of the compliance project within the period as may be fixed by HLURB.

Upon evaluation of the sufficiency of the initial compliance and that the proposed project shall be in accordance with all applicable rules including the minimum design and standards required under the implementing rules and regulations of Batas Pambansa Blg. 220 (BP 220), the RFO shall expeditiously prepare and issue the CIC.

SECTION 9. Annotations on the Certificate of Initial Compliance. — Prior to its issuance, the RFO shall cause the annotation of the following on the CIC:

9.1 The proposed name, exact location, and the owner or developer of the socialized housing project;

9.2 The name, exact location, and the owner or developer of the main subdivision project;

9.3 Either the total subdivision area or the total subdivision project cost of the socialized housing project, depending on the manner of compliance; and

9.4 If only a portion of the socialized housing project is being utilized as compliance for the main subdivision project, the particular block numbers and lot numbers or unit numbers of the socialized housing project being allotted as compliance, and either the total area or total cost of such block numbers and lot numbers or units of the socialized housing project. ISDHcT

Upon issuance of the CIC, the development of the socialized housing project shall be subject to the monitoring activity of the RFO issuing the same.

SECTION 10. Proof of Initial Compliance of the Main Subdivision Project. — In addition to the documents required to be submitted upon the filing of application for CR/LS of the main subdivision project in accordance with the existing IRR under PD 957 or BP 220, the developer shall be required to submit:

10.1 A copy of the CIC as annotated in accordance with Section 9 hereof. However, if the annotated CIC is issued by a different RFO, a certified true copy thereof is required; and

10.2 A sworn undertaking executed by the developer to submit within the first half of the period of completion of the main subdivision project as may be fixed by HLURB the required proof of compliance equivalent to twenty percent (20%) of either the total project area or total subdivision project cost of the main subdivision project, including the annotated license to sell of the compliance project.

SECTION 11. Initial Annotations on the License to Sell of the Main Subdivision Project. — Upon submission of all the required documents for registration and licensing of the main subdivision project, the RFO shall prepare its CR/LS and cause the annotation of the following on its LS:

11.1 The proposed name and location of the compliance project;

11.2 The CIC number and date of issue;

11.3 The total subdivision area or total subdivision project cost of socialized housing project;

11.4 If only a portion of the socialized housing project is being utilized as compliance for the main subdivision project, the particular block numbers and lot numbers, or unit numbers of the socialized housing project being allotted, and either the total area or total cost of such block numbers and lot numbers, or units of the socialized housing project; and

11.5 The condition that the LS shall be suspended and a Cease and Desist Order (CDO) issued should the developer fail to submit within the first half of the period of completion of the main subdivision project the required proof of compliance equivalent to twenty percent (20%) of either the total project area or total subdivision project cost of the main subdivision project, including the annotated license to sell of the compliance project.

If the RFO finds everything complete and in order, it shall approve and release the CR/LS of the main subdivision project. SHIcDT

SECTION 12. Submission of the Annotated License to Sell of the Compliance Project. — The developer shall be required to secure the CR/LS of the socialized housing project within the first half of the period of completion of the main subdivision project fixed by HLURB and accordingly cause the annotation on the said LS of the items enumerated under Section 9 hereof. The RFO issuing the same shall likewise cause the annotation of its number and date of issue on the LS of the main subdivision project.

In case the main subdivision project is registered with another RFO, a certified true copy thereof shall be submitted by the developer to the RFO where the main subdivision project is registered, together with the issued LS of the main subdivision project for the additional annotation of the number and date of issue of the LS of the compliance project.

Should the developer fail to secure the LS of the compliance project as herein required, the LS of the main subdivision project shall be suspended and a CDO issued until such time the LS of the compliance project is annotated, issued and submitted.

SUB-RULE II-B

Development of New Settlements

SECTION 13. Initial Compliance. — For purposes of complying under Section 4.1 of Board Resolution No. 890, series of 2012 to benefit areas affected by calamities, the developer of the main subdivision project can develop a new settlement with a cost equivalent to at least five percent (5%) of the total subdivision project cost of the main subdivision project.

For purposes of complying under the preceding paragraph, the developer may choose any of the following modes of compliance:

13.1 Joint venture (JV) of the developer with an HLURB-accredited subsidiary or an HLURB-accredited developer for the production of new socialized housing in areas affected by calamities;

13.2 Contribution of the developer to accredited non-government organizations (NGOs) for the development of socialized housing and reconstruction of destroyed or damaged houses in areas affected by calamities; or

13.3 The provision of educational facilities, health facilities, productivity/livelihood centers and other basic amenities and facilities mentioned in Section 21 of UDHA which will benefit socialized housing communities in areas affected by calamities. cDSAEI

Notwithstanding the provisions of the notarized agreements between the developer of the main subdivision project and the developer of the socialized housing project or the NGO, the former shall be liable for the full completion or reconstruction of the compliance project and shall not be considered as compliant until the complete development or reconstruction of the compliance project.

SECTION 14. Accreditation of Developers of Socialized Housing Projects and Non-Government Organizations. — Subject to the qualification and disqualification requirements as provided under Memorandum Circulars Nos. 06 and 07, series of 2013, a developer of socialized housing or an NGO engaged in the development and production of socialized housing units and projects or construction of facility, center or amenity as provided under Section 13.3 hereof may apply for accreditation and shall be exempt from the requirement of 500 housing units built under Memorandum Circulars Nos. 07 and 07B, series of 2013 provided that the compliance project shall be located in areas affected by calamities. In addition thereto, the housing units constructed shall be credited in favor of the developer of the socialized housing or the NGO to qualify for general accreditation. 

SECTION 15. Certificate of Initial Compliance and Incentivized Requirements. — The developer can secure a CIC from the RFO where the initial compliance project is to be registered or where the facility, center or amenity will be provided in accordance with the following:

15.1 For the purpose of complying under 13.1 hereof, by submitting the following:

15.1.1 Title to or authority to develop the subject property;

15.1.2 Copy of the notarized agreement for the development or production of socialized housing which shall specify:

15.1.2.1 The contribution of both parties and the sharing of profits and liabilities; and

15.1.2.2 The particular block numbers and lot numbers or unit numbers of the socialized housing being allotted to the main subdivision project, if only a portion thereof is being utilized as compliance.

15.1.3 A copy of the site development plan, program of development and bill of materials; and

15.1.4 A sworn undertaking executed by the developer to complete the development of the compliance project within the period as may be fixed by HLURB.

15.2 For the purpose of complying under 13.2 hereof, by submitting the following: cEAHSC

15.2.1 Title to or authority to develop or reconstruct the subject property or affected community;

15.2.2 Copy of the notarized agreement for the contribution of the developer for the development of socialized housing project or reconstruction of damaged communities in areas affected by calamities which shall specify:

15.2.2.1 The amount of contribution of the developer and the responsibilities of both parties; and

15.2.2.2 The particular block numbers and lot numbers or unit numbers of the socialized housing being allotted to the main subdivision project, if only a portion thereof is being utilized as compliance.

15.2.3 Copy of the site development plan, work program and bill of materials; and

15.2.4 A sworn undertaking executed by the NGO to complete the development of the socialized housing or the reconstruction of affected communities within the period as may be fixed by HLURB.

15.3 For the purpose of complying under 13.3 hereof, by submitting the following:

15.3.1 Title to or authority to develop the facility, center or amenity;

15.3.2 Copy of the building plan, work program and bill of materials; and

15.3.3 A sworn undertaking executed by the developer to complete development of the facility, center or amenity within the period as may be fixed by HLURB.

Upon evaluation of the sufficiency of the initial compliance and that the proposed project shall be in accordance with all applicable rules including the minimum design and standards required under the implementing rules and regulations of Batas Pambansa Blg. 220 (BP 220), the RFO shall expeditiously prepare and issue the CIC.

SECTION 16. Annotations on the Certificate of Initial Compliance. — Prior to its issuance, the RFO shall cause the annotation of the following:

16.1 On the CIC for the socialized housing developed pursuant to Sections 13.1 and 13.2 hereof: ECcTaS

16.1.1 The proposed name, exact location, and the owner, developer or NGO developing the socialized housing or reconstructing the affected community;

16.1.2 The name, exact location, and the owner or developer of the main subdivision project;

16.1.3 The total participation or contribution of the developer of the main subdivision as indicated in the notarized agreement; and

16.1.4 If only a portion of the socialized housing project is being utilized as compliance for the main subdivision project, the particular block numbers and lot numbers or unit numbers of the socialized housing project being allotted as compliance, and the total cost of such block numbers and lot numbers or units of the socialized housing project.

16.2 On the CIC for the reconstruction of damaged or destroyed communities pursuant to Section 13.2 hereof:

16.2.1 The areas where the reconstruction of houses and dwellings destroyed or damaged by calamities shall be undertaken;

16.2.2 The amount of contribution of the developer of the main subdivision project; and

16.2.3 If only a portion of the reconstruction of affected communities is being utilized as compliance for the main subdivision project, the number of houses or dwellings reconstructed allotted as compliance.

16.3 On the CIC for the facility, center or amenity provided pursuant to Section 13.3 hereof:

16.3.1 The name and location of the main subdivision project; and

16.3.2 The total cost of facility, center or amenity based on its building plan and bill of materials.

Upon issuance of the certificate of initial compliance, the development of the socialized housing project, the reconstruction of affected communities and the development and completion of the facility, center or amenity shall be subject to the monitoring activity of the RFO issuing the same.

SECTION 17. Proof of Initial Compliance of the Main Subdivision Project. — In addition to the documents required to be submitted upon the filing of application for CR/LS of the main subdivision project in accordance with the existing IRR under PD 957 or BP 220, the developer shall submit:

17.1. For compliance under 13.1 and 13.2 hereof: IESTcD

17.1.1 A copy of the CIC as annotated in accordance with Sections 16.1 and 16.2 hereof. However, if the CIC is issued by another RFO, a certified true copy thereof is required.

17.1.2 Copy of the notarized agreement between the developer of the main subdivision project and the developer of the socialized housing or the NGO; and

17.1.3 A sworn undertaking executed by the developer to submit within the first half of the period of completion of the main subdivision project as may be fixed by HLURB the required proof of compliance equivalent to twenty percent (20%) of the total subdivision project cost of the main subdivision project, including the annotated license to sell of the compliance project.

17.2 For compliance under 13.3 hereof:

17.2.1 A copy of CIC as annotated in accordance with Section 16.3 hereof. However, if the CIC is issued by another RFO, a certified true copy thereof is required; and

17.2.2 A sworn undertaking executed by the developer to submit within the first half of the period of completion of the main subdivision project as may be fixed by HLURB the required proof of compliance equivalent to twenty percent (20%) of the total subdivision project cost of the main subdivision project, including the issued building permit of the facility, center or amenity.

SECTION 18. Initial Annotations on the License to Sell of the Main Subdivision Project. — Upon submission of all the required documents for registration and licensing of the main subdivision project, the RFO shall prepare its CR/LS and cause the annotation of the following on its LS:

18.1 The proposed name and exact location of the compliance project;

18.2 The CIC number and date of issue; TcCEDS

18.3 The total participation or contribution of the developer under the notarized agreement;

18.4 If only a portion of the compliance project is being utilized as compliance for the main subdivision project, the particular block numbers and lot numbers or unit numbers, or number of dwellings or houses being allotted; and

18.5 The condition that the LS shall be suspended and a CDO issued should the developer fail to submit within the first half of the period of completion of the main subdivision project the required proof of compliance equivalent to twenty percent (20%) of the total subdivision project cost of the main subdivision project, including the annotated license to sell of the compliance project or the issued building permit of the facility, center or amenity.

If the RFO finds everything complete and in order, it shall approve and release the CR/LS of the main subdivision project.

SECTION 19. Submission of the Annotated License to Sell, Certificate of Registration or Building Permit of the Compliance Project. — The developer of the socialized housing project or the NGO shall be required to secure the LS, CR, or building permit of the compliance project within the first half of the period of completion of the main subdivision project as fixed by HLURB and accordingly cause the annotation of the items enumerated under Sections 16.1 and 16.2 hereof on the said LS or CR. Upon issuance or submission of the LS, CR or building permit of the compliance project, the RFO shall likewise cause the annotation of the CR, LS, or building permit number and date of issue on the LS of the main subdivision project.

In case the main subdivision project is registered with another RFO, a certified true copy of the annotated LS or CR, or of the building permit shall be submitted by the developer to the RFO where the main subdivision project is registered, together with the issued LS of the main subdivision project for the additional annotation of the number and date of issue of the LS, CR or building permit of the compliance project.

SUB-RULE III-C n

Zonal and Slum Improvement and Resettlement Programs

SECTION 20. Initial Compliance. — For purposes of complying under Section 4.2 of Board Resolution No. 890, Series of 2012, the developer of the main subdivision project may participate in the various housing and resettlement programs and projects of the National Housing Authority (NHA) that will benefit areas affected by calamities with costs equivalent to at least five percent (5%) of the total subdivision project cost of the main subdivision project.

For purposes of complying under the preceding paragraph, the developer may choose any of the following modes of compliance:

20.1 Purchase of instrument of participation specifically issued by NHA to benefit areas affected by calamities; or

20.2 Direct contribution to the programs and projects of NHA specifically in areas affected by calamities. AEcTaS

SECTION 21. Certificate of Participation or Contribution. — The developer can secure a certificate from the NHA indicating:

21.1 The amount of participation or contribution made by the developer; 

21.2 The official receipt number and date of issue; and

22.3 The affected community benefiting from the developer's participation or contribution.

Such certificate of participation or contribution shall likewise serve as the CIC.

SECTION 22. Proof of Initial Compliance of the Main Subdivision Project. — In addition to the documents required to be submitted upon the filing of application for CR/LS of the main subdivision project in accordance with the existing IRR under PD 957 or BP 220, the developer shall submit:

22.1 Certified true copy of the Certificate of Participation or Contribution issued by NHA and of the Official Receipt as proof of its participation or contribution; and

22.2 A sworn undertaking executed by the developer to submit within the first half of the period of completion of the main subdivision project the required proof of compliance equivalent to twenty percent (20%) of the total subdivision project cost of the main subdivision project.

SECTION 23. Initial Annotations on the License to Sell of the Main Subdivision Project. — Upon submission of all the required documents for registration and licensing of the main subdivision project, the RFO shall prepare its CR/LS and cause the annotation of the following on its LS:

23.1 The exact amount of participation or contribution by the developer;

23.2 The Certificate of Participation or Contribution Number, date of issue, and Official Receipt Number;

23.3 The affected community benefiting from such participation or contribution; and

23.4 The condition that the LS shall be suspended and a CDO issued should the developer fail to submit within the first half of the period of completion of the main subdivision project the required proof of compliance equivalent to twenty percent (20%) of the total subdivision project cost of the main subdivision project.

If the RFO finds everything complete and in order, it shall approve and release the CR/LS of the main subdivision project. ECaScD

SUB-RULE III-D

Joint Venture with the Local Government Units or Any of the Housing Agencies

SECTION 24. Initial Compliance. — For purposes of complying under Section 4.3 of Board Resolution No. 890, series of 2012 to benefit areas affected by calamities, the developer of the main subdivision project may enter into a joint venture (JV) with a local government unit (LGU) or any of the housing agencies (HAs) wherein the developer's participation in or contribution to the JV shall be equivalent to at least five percent (5%) of the total subdivision project cost of the main subdivision project.

For purposes of the joint venture with an LGU or any of the HAs as provided under the preceding paragraph, the developer may choose any of the following modes of compliance:

24.1 Development of a socialized housing or resettlement project in areas affected by calamities;

24.2 Development and completion of a socialized housing project which has been taken over by HLURB pursuant to Section 35 of Presidential Decree No. 957 (PD 957) in areas affected by calamities;

24.3 Rehabilitation of non-performing socialized housing of any of the HAs to benefit areas affected by calamities;

24.4 Provision of educational facilities, health facilities, productivity/livelihood centers and other basic amenities and facilities mentioned in Section 21 of UDHA which will benefit socialized housing communities in areas affected by calamities; and

24.5 Purchase of socialized housing bonds as approved by HLURB and specifically issued by any of the HAs to benefit areas affected by calamities.

SECTION 25. Certificate of Initial Compliance and Incentivized Requirements.— The developer can secure a CIC from the RFO where the compliance project will be registered or provided in accordance with the following:

25.1 For the purpose of complying under Sec. 24.1 hereof, by submitting the following:

25.1.1 Title to or authority to develop the subject property;

25.1.2 Copy of the notarized agreement with the local government unit or the housing agency for the development of the socialized housing or resettlement project which shall specify: ACTISE

25.1.2.1 The amount of contribution of the developer of the main subdivision project; and

25.1.2.2 The particular block numbers and lot numbers or unit numbers of the socialized housing being allotted to the main subdivision project, if only a portion thereof is being utilized as compliance.

25.1.3 A copy of the site development plan, work program and bill of materials; and

25.1.4 A sworn undertaking executed by the developer to complete the development of the compliance project within the period as may be fixed by HLURB.

25.2 For the purpose of complying under Sec. 24.2 and 24.3 hereof, by submitting the following:

25.2.1 A copy of the notarized agreement with the HLURB or any of the HAs for the completion of the development of the socialized housing project taken-over or for the rehabilitation of the non-performing socialized housing assets which shall specify:

25.2.1.1 The amount of contribution of the developer for the completion of development or rehabilitation; and

25.2.1.2 The nature, extent and cost of the work to be done based on the program of development signed and sealed by a licensed engineer or architect.

25.2.2 A copy of the development and/or housing rehabilitation plan, work program, and bill of materials; and

25.2.3 A sworn undertaking to complete the development or rehabilitation within the period as may be fixed by HLURB.

25.3 For the purpose of complying under Sec. 24.4 hereof, by submitting the following:

25.3.1 A copy of the notarized agreement with the local government unit or the housing agency for the provision of facility, center or amenity which shall specify: aDSHCc

25.3.1.1 The amount of contribution of the developer; and

25.3.1.2 The nature of the facility center or amenity to be provided, the affected community benefiting therefrom, and the cost of the work to be done based on the program of development signed and sealed by a license engineer or architect.

25.3.2 A copy of the building plan, work program and bill of materials therefor; and

25.3.3 A sworn undertaking to complete the provision and construction of the facility, center or amenity within the period as may be approved by HLURB.

25.4 For the purpose of complying under Sec. 24.5 hereof, the socialized housing bond or the certificate evidencing purchase thereof shall serve as the initial certificate of compliance and which shall indicate its face value equivalent to the amount of bond purchased by the developer and the areas affected by calamities which will benefit therefrom.

SECTION 26. Annotations on the Certificate of Initial Compliance. — Upon submission of all of the required documents for the issuance of the CIC, the RFO shall prepare the same and cause the annotation of the following:

26.1 On the CIC for the socialized housing or resettlement project:

26.1.1 The proposed name, exact location, and the owner or developer of the socialized housing or resettlement project;

26.1.2 The name, exact location, and the owner or developer of the main subdivision project;

26.1.3 The total participation or contribution of the developer of the main subdivision project; and

26.1.4 If only a portion of the socialized housing or resettlement project is being utilized as compliance for the main subdivision project, the particular block numbers and lot numbers or unit numbers of the project being allotted as compliance, and the total cost of such block numbers and lot numbers or units of the socialized housing project.

26.2 On the CIC for the completion of development of the socialized housing project taken-over or rehabilitation of non-performing socialized housing assets: SaCIAE

26.2.1 The name, exact location, and the owner or developer of the socialized housing project taken-over or non-performing socialized housing assets to be rehabilitated;

26.2.2 The name, exact location, and the owner or developer of the main subdivision project;

26.2.3 The total participation or contribution of the developer of the main subdivision project; and

26.2.4 If only a portion of the socialized housing taken-over or of the non-performing socialized housing assets to be rehabilitated is being utilized as compliance for the main subdivision project, the particular block numbers and lot numbers or unit numbers of the project being allotted as compliance, and the total cost of such block numbers and lot numbers or units of the socialized housing project.

26.3 On the CIC for the facility, center or amenity:

26.3.1 The name or nature, and exact location of the facility, center or amenity to be provided;

26.3.2 The name, exact location, and developer or owner of the main subdivision project;

26.3.3 The total cost of facility, center or amenity based on its building plan and bill of materials; and

26.3.4 The socialized housing community in an area affected by calamities which will benefit from the facility, center or amenity.

Once issued with the certificate of initial compliance, the development of the socialized housing or resettlement project, the completion or rehabilitation of the socialized housing project taken-over or to be rehabilitated, and the provision of the facility, center or amenity shall be subject to the monitoring activity of the RFO issuing the certificate.

SECTION 27. Proof of Initial Compliance of the Main Subdivision Project. — In addition to the documents required to be submitted upon the filing of application for CR/LS of the main subdivision project in accordance with the existing IRR under PD 957 or BP 220, the developer shall submit:

27.1. For compliance under 24.1, 24.2, 24. 3 and 24.4 hereof:

27.1.1 A copy of the CIC as annotated in accordance with Sections 26.1, 26.2, 26.3 and 26.4 hereof. However, if the CIC is issued by another RFO, a certified copy thereof is required.

27.1.2 Copy of the notarized agreement between the developer of the main subdivision project and the LGU or any of the HAs; and 

27.1.3 A sworn undertaking executed by the developer to submit within the first half of the period of completion of the main subdivision project the required proof of compliance equivalent to twenty percent (20%) of the total subdivision project cost of the main subdivision project, including either the annotated license to sell of the main subdivision project or the building permit of the facility, center or amenity.

27.2 For compliance under 24.5 hereof:

27.2.1 Certified true copy of the official receipt and of the certificate of purchase of the socialized housing bond as evidence of payment therefor; and

27.2.2 A sworn undertaking executed by the developer to submit within the first half of the period of completion of the main subdivision project the required proof of compliance equivalent to twenty percent (20%) of the total subdivision project cost of the main subdivision project.

SECTION 28. Submission of the Annotated License to Sell of the Compliance Project. — The developer shall be required to secure the CR or LS of the socialized housing or resettlement project or the building permit of the facility, center or amenity within the first half of the period of completion of the main subdivision project as fixed by HLURB and accordingly cause the annotation of the items enumerated under Section 26 hereof. Upon issuance or submission of the LS, CR or building permit, the RFO shall likewise cause the annotation of the CR, LS, or Building Permit number and date of issue on the LS of the main subdivision project.

In case the main subdivision project is registered with another RFO, a certified true copy of the annotated LS or CR, or of the building permit shall be submitted by the developer to the RFO where the main subdivision project is registered, together with the issued LS of the main subdivision project for the additional annotation of the number and date of issue of the LS, CR or building permit of the compliance project.

SUB-RULE III-E

Participation in Community Mortgage Program

SECTION 29. Initial Compliance. — For purposes of complying with Section 4.4 of Board Resolution No. 890, series of 2012 to benefit areas affected by calamities, the developer of the main subdivision project may participate in or contribute to a CMP project wherein the cost of the developer's participation or contribution shall be equivalent to at least five percent (5%) of the total subdivision project cost of the main subdivision project.

For purposes of complying under the preceding paragraph, the developer may choose any of the following modes:

29.1 Providing a parcel of land to a CMP project located in areas affected by calamities;

29.2 Providing and developing a right-of-way or access to roads or public transportation lines or introducing amenities, facilities or other forms of development in a CMP project in areas affected by calamities; or

29.3 Subscription or purchase of asset-backed securities originated or conveyed by the SHFC specifically to finance CMP projects in affected communities.

SECTION 30. Certificate of Initial Compliance and Incentivized Requirements. — The developer can secure a CIC from the RFO where the CMP project is registered or to be registered in accordance with the following:

30.1 For the purpose of complying under Sections 29.1 (donation of a parcel of land) or 29.2 (provision of right-of-way or access to roads or public transportation lines) hereof, by submitting the following:

30.1.1 Copy of the notarized Memorandum of Agreement (MOA) with the homeowners' association or legally-organized association of the CMP, as conformed with by the SHFC; and aAHSEC

30.1.2 Copy of the notarized Deed of Donation.

30.2 For the purpose of complying under Section 29.2 hereof (introducing amenities, facilities and other forms of development), by submitting the following:

30.2.1 Copy of the development or building plan, work program, and bill of materials; and

30.2.2 A sworn undertaking executed by the developer to complete the development of the compliance project within the period as may be fixed by HLURB, indicating therein the socialized housing community in the areas affected by calamities benefitting therefrom.

30.3 For the purpose of complying under Section 29.3 hereof, the asset-backed securities or the certificate evidencing purchase or subscription thereof shall serve as the CIC which shall indicate:

30.3.1 The face value equivalent to the amount of securities purchase or subscribed by the developer.

30.3.2 The areas affected by calamities benefiting from such origination or conveyance of the securities.

Upon evaluation of the sufficiency of the initial compliance, the RFO shall expeditiously prepare and issue the CIC.

SECTION 31. Annotations on the Certificate of Initial Compliance. — Upon submission of all of the required documents for the issuance of the CIC, the RFO shall prepare the same and cause the annotation of the following:

31.1 The transfer certificate of title number and the issuing Office of the Register of Deeds of the land provided, its current zonal valuation, and the CMP project to which the land is being provided; or

31.2 The total cost of the provision of right of way or access to roads or public transportation lines, or the introduction of amenity, facility, or other forms of development based on the work program and bill of materials.

SECTION 32. Proof of Initial Compliance of the Main Subdivision Project. — In addition to the documents required to be submitted upon the filing of application for CR/LS of the main subdivision project in accordance with the existing IRR under PD 957 or BP 220, the developer shall be required to submit proof of compliance to Section 18 of UDHA as follows:

32.1 Copy of CIC as annotated in accordance with Section 31 hereof. However, if the annotated CIC is issued by a different RFO, a certified true copy thereof is required; or

32.2 Certified true copy of the certificate of subscription or purchase of the asset-backed securities and of the official receipt as proof of payment thereof; and

32.3 A sworn undertaking executed by the developer to submit within the first half of the period of completion of the main subdivision project the required proof of compliance equivalent to twenty percent (20%) of the total subdivision project cost of the main subdivision project.

RULE III

Compliance Certificate

SECTION 33. Issuance of Compliance Certificate. — A compliance certificate shall be issued to the main subdivision project upon full compliance with the balanced housing development requirement of UDHA by the developer which shall be equivalent to at least twenty percent (20%) of the total project area or total subdivision project cost of the main subdivision project. DIcSHE

33.1 In case the developer is complying under Sections 7.1, 7.2, 13.1, 13.2, 24.1 or 24.2 hereof (development of a socialized housing or resettlement project either by the developer itself, through joint-venture with another developer, an LGU or any of the HAs, or by contribution to a socialized housing project of an NGO), the compliance certificate shall be issued in accordance with the following procedure:

33.1.1 If the main subdivision and the compliance projects are registered in the same RFO:

33.1.1.1 Upon issuance of the Certificate of Completion (COC) of the compliance project, if the entire project constitutes full compliance for the main subdivision project; or

33.1.1.2 If only a portion of the compliance project is being utilized as compliance for the main subdivision project, upon issuance by the RFO of a certification attesting that the particular blocks and lots or units of the compliance project allotted as compliance, together with the required roads and access to ingress or egress, the utilities and amenities, and the required open space have been completely developed.

33.1.2 If the main subdivision and the compliance projects are registered in two different RFOs:

33.1.2.1 Upon submission by the developer of a certified true copy of the Certificate of Completion (COC) issued to the compliance project, if the entire project constitutes full compliance for the main subdivision project; or

33.1.2.2 If only a portion of the compliance project is being utilized as compliance for the main subdivision project, upon submission by the developer of a certification from the RFO where the compliance project is registered attesting that the particular blocks and lots or units of the compliance project allotted as compliance, together with the required roads and access to ingress or egress, the utilities and amenities, and the required open space have been completely developed.

33.2 In case the developer is complying under Section 13.2 hereof (contribution to an NGO for the reconstruction of affected communities), upon submission by the developer of a certification from the RFO where the affected community is located attesting that the reconstruction has been completed in accordance with the approved work program. TCAScE

33.3 In case the developer is complying under Sections 13.3 or 24.4 (provision of facility, center or amenity), or 24.3 (joint-venture with any of the HAs for the rehabilitation of non-performing socialized housing assets) hereof, upon submission by the developer of a certified true copy of the Fire Safety Inspection Certificate and Occupancy Permit issued to the compliance project.

If the developer availed of the allowable combination of modes of compliance, the compliance certificate shall only be issued upon completion of all the component modes.

RULE IV

Monitoring, Sanctions and Remedies

SECTION 34. Monitoring. — Both the main subdivision project and the compliance project shall be subject to the monitoring activity of the RFO where each project is registered.

SECTION 35. Suspension or Revocation of License to Sell. — The LS of the main subdivision project shall be suspended and a CDO issued against it in case of:

35.1 Failure of the developer to submit the CR, LS or building permit of the compliance project within the first half of the period of completion of the main subdivision project as fixed by HLURB; or 

35.2 Failure of the developer to complete the required full compliance and submit proof thereof within the first half of the period of completion of the main subdivision project as fixed by HLURB.

In addition thereto, said LS of the main subdivision project shall likewise be suspended or revoked and a CDO shall be issued against its developer in case the LS or CR of the compliance project is suspended or revoked in accordance with existing HLURB substantive and procedural rules, on the ground, among others, of non-completion of the development of the compliance project within its period of completion as fixed by HLURB.

Any order of suspension or revocation issued against the compliance project shall be reported, within five (5) working days from the issuance of the said order, by the RFO where the compliance project is registered to the RFO where the main subdivision project is registered in order that appropriate sanctions may be imposed on the main subdivision project. ADSTCI

The RFO may lift the suspension or CDO upon:

35.3 Submission of the annotated LS of the compliance project;

35.4 Submission of proof of full compliance;

35.5 Reinstatement of the LS of the compliance project; or

35.6 Subject to Section 36 hereof, submission of proof of a different full compliance by the developer, without prejudice to the liabilities that the developer may have incurred in the development of the original compliance project.

SECTION 36. Sanctions. — The imposition of fines and other administrative sanctions shall be in accordance with the schedule and guidelines promulgated by HLURB.

SECTION 37. Substitution of the Initial Compliance. — Substitution of the initial compliance shall only be allowed prior to the issuance of the license to sell of the main subdivision project. Thereafter, substitution may only be allowed if the substitute compliance shall likewise benefit those affected by calamities, and provided further that if the substitution shall take place during the second-half of the period of completion of the main subdivision project, its LS shall either remain suspended or be immediately suspended and shall only be lifted upon submission of proof of compliance in accordance with these guidelines.

SECTION 38. Effect of Non-Completion. — The application for the issuance of CR/LS of a developer for a new main subdivision project anywhere in the Philippines shall not be accepted or shall be denied if any of its compliance projects for any of its main subdivision projects has not been completed within the period fixed by HLURB.

RULE VI n

Separability and Effectivity

SECTION 39. 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 40. Effectivity Clause. — These guidelines shall take effect immediately. HcaDTE

For strict compliance and implementation.

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

ANNEX A

Certificate of Initial Compliance

 

n Note from the Publisher: Copied verbatim from the official copy.

n Note from the Publisher: Copied verbatim from the official copy. Missing Rule V.