Provision of Group Home/Foster Home for Neglected, Abandoned, Abused, Detached and Poor Older Persons and Persons with Disabilities

October 10, 2003

RULES AND REGULATIONS IMPLEMENTING EXECUTIVE ORDER NO. 105 APPROVING AND DIRECTING THE IMPLEMENTATION OF THE PROGRAM "PROVISION OF GROUP HOME/FOSTER HOME FOR NEGLECTED, ABANDONED, ABUSED, DETACHED AND POOR OLDER PERSONS AND PERSONS WITH DISABILITIES"

ARTICLE I

Title, Authority, Purpose, Construction and Scope

SECTION 1.  Title. — These rules shall be known and cited as the Rules and Regulations Implementing Executive Order No. 105, otherwise known as Approving and Directing the Implementation of the Program "PROVISION OF GROUP HOME/FOSTER HOME FOR NEGLECTED, ABANDONED, ABUSED, DETACHED AND POOR OLDER PERSONS AND PERSONS WITH DISABILITIES". cHEATI

SECTION 2.  Authority. — By virtue of Section 4 of Executive Order No. 105, the Housing and Urban Development Coordinating Council (HUDCC), the National Anti-Poverty Commission (NAPC) and the Department of Social Welfare and Development (DSWD) are hereby tasked to promulgate the rules and regulations implementing the program, "PROVISION OF GROUP HOME/FOSTER HOME FOR NEGLECTED, ABANDONED, ABUSED, DETACHED AND POOR OLDER PERSONS AND PERSONS WITH DISABILITIES."

SECTION 3.  Purpose. — These rules and regulations shall provide the concerned national government agencies, Local Government Units, non-government organizations and private sector with guidelines for the comprehensive implementation, participation and compliance with the program of providing Group Home/Foster Home and caregiving to the neglected, abandoned, abused, detached and poor older persons and/or person with disabilities.

SECTION 4.  Construction. — These rules shall be construed and applied in accordance with and in furtherance of the policy and objectives of the law. In case of conflict and/or ambiguity, which may arise in the implementation of these Rules, the concerned agencies shall issue the necessary clarification. In case of doubt, the same shall be construed liberally and in favor of the beneficiaries.

SECTION 5.  Scope. — These rules and regulations shall apply to the provision, establishment, and/or donation of Group Home/Foster Home and caregiving to neglected, abandoned, abused, detached and poor older persons and/or persons with disabilities and grant of incentives to participating entities/donors and foster person/family.

The provision of incentives is open to every person, whether natural or juridical, resident or non-resident, who transfers or causes to transfer property by gift, whether in trust or otherwise, whether the gift is direct or indirect and whether the property is real or personal, tangible and intangible.

ARTICLE II

Definition of Terms

SECTION 6.  Definition of Terms. — As used in these Rules, the following terms shall mean as follows:

(a)  Older person (OP) — is a resident senior citizen of the Philippines who is 60 years old and above who may be detached, neglected, abandoned, abused, and poor.

(b)  Person with disability (PWD) — a person with disability is one who is suffering from restriction or different abilities, as a result of a mental, physical or sensory impairment, to perform an activity in the manner or within the range considered normal for a human being.

(c)  Disability — refers to a (1) physical or mental impairment that substantially limits one or more psychological, physiological or anatomical function of an individual or activities of such individual; (2) a record of such an impairment; or (3) being regarded as having such an impairment.

(d)  Detached Person — refers to an older person and/or a person with disability and with no family who can provide the necessary care, protection and support, and is incapable or has no means of meeting his/her needs.

(e) Neglected Person — refers to an older person and/or a person with disability, whose basic needs for survival have been deliberately unattended or inadequately attended by his/her family.

(f)  Abandoned Person — refers to an older person and/or a person with disability who has no means of meeting basic needs, and whose family had deserted him/her, hence, appropriate care, protection and support, are not met.

(g)  Abused Person — refers to an older person and/or a person with disability who is psychologically, emotionally, sexually and physically maltreated and exploited resulting to violation of his/her rights and degradation of his/her intrinsic worth and dignity as a human being.

(h)  Poor Person — refers to an older person and/or person with disability with no means to support his/her basic needs.

(i)  Foster Person/Family — refers to a licensed individual or family whether related or not to the neglected, abandoned, abused, detached and poor OP and/or PWD who takes care of him/her as dependent in the foster home.

(j)  Foster home — is where OPs and/or PWDs are provided with alternative family care by a foster person/family

(k)  Group home — is a facility where older persons and/or persons with disabilities are provided with alternative living arrangement to enable them to experience independent group living within a homelife atmosphere under the supervision of a social worker from the DSWD, LGU or NGO.

— also refers to the provision of decent and affordable housing to the OPs and/or PWDs who choose to live independently or outside of the family and who have the capacity to pay.

(l)  Donation — is an act of liberality whereby a person disposes gratuitously, of a thing or right in favor or another, who accepts it.

(m)  Donor's tax — is a tax on a donation or gift, and is imposed on the gratuitous transfer or property between two or more person who are living at the time of the transfer. It shall apply whether the transfer is in trust or otherwise, whether the gift is direct or indirect and whether the property is real or personal, tangible or intangible.

(n)  Donor — one who transfers or causes to transfer property by gift, whether in trust or otherwise, whether the gift is direct or indirect and whether the property is real or personal, tangible or intangible.

(o)  Family — is a basic social institution which public policy cherishes and protects. Consequently, family relations are governed by laws and no custom, practice or agreement destructive of the family shall be recognized or given effect.

Family relations include those:

(1)  Between husband and wife

(2)  Between parents and children

(3)  Among brothers and sisters, whether of the full or half blood

Also refers to those with single/solo parent and those who are sibling- or relative-headed family.

(p)  NGO Operated Group Home/Foster Home — refers to non-governmental organization licensed and accredited by the Department of Social Welfare and Development

ARTICLE III

Group Home/Foster Home Program

SECTION 7.  Group Home/Foster Home Program for Neglected, Abandoned, Abused, Detached and Poor Older Persons and/or Persons with Disabilities. — The Department of Social Welfare and Development (DSWD) shall be responsible for the development of Group Home/Foster Home program for neglected, abandoned, abused, detached and poor OPs and/or PWDs within six months from the approval of these rules and regulations.

SECTION 8.  Criteria for Availment of the Program. — Any OPs and/or PWDs who fall to any of the following categories as defined under Section 6 of these IRRs and subject to the assessment of the duly appointed or designated social worker in their place of domicile shall be eligible for the assistance provided for under these IRRs:

a.  Abandoned

b.  Neglected

c.  Abused

d.  Detached

e.  Poor

SECTION 9.  Assessment of Qualified OPs and PWDs. — The assessment for OPs and/or PWDs who can avail of the Group Home/Foster Home Program, is as follows:

(a)  Any concerned citizens shall refer OPs and/or PWDs whom they suspected as abandoned, neglected, abused, detached and poor to the nearest Social Welfare Office at the city/municipality.

(b)  The Social Workers from the DSWD and Social Welfare Office at the city/municipality shall conduct an assessment of OPs and/or PWDs who may qualify for the Group Home/Foster Home Program.

(c)  The Social Workers shall assist the OPs/PWDs in securing certification of his/her disability from the government physician or from the accredited hospital of the Department of Health (DOH).

(d)  In cases where OPs and/or PWDs are residents of shelters/institutions the social workers from the DSWD shall conduct the assessment.

(e)  The Social Workers shall indicate in their assessment, the following:

(i)  Category of OPs and/or PWDs as defined under Sections 6 and 8 of this IRR; and

(ii)  Types of assistance (foster care or assignment to Group Home) to be given to qualified OPs and/or PWDs.

(f)  Upon favorable evaluation, the Social Worker shall match and recommend qualified OPs and/or PWDs to the licensed foster persons/families or administrators of Group Homes intended for neglected, abandoned, abused, detached and poor OPs and/or PWDs.

SECTION 10.  Group Home for OPs and/or PWDs who have the Capacity to Pay. — The Social Security System (SSS), the Government Service Insurance System (GSIS), the Home Development Mutual Fund (HDMF) and the Land Bank of the Philippines (LBP) shall develop innovative financing/lending schemes for OPs/PWDs to support the housing requirements of those OPs and/or PWDs who choose to live independently or outside of the family home and who have the capacity to pay.

Assessment of OPs and/or PWDs who would opt to avail the home lending programs of SSS, GSIS, HDMF and LBP shall be conducted in accordance with the lending policies and guidelines of the said government financial institutions.

SECTION 11.  Housing Designs and Standards for Older Persons and/or Persons with Disabilities. — The Housing and Land Use Regulatory Board (HLURB) shall formulate housing designs suitable to the requirements of male and female OPs and/or PWDs.

SECTION 12.  Site Selection. — The sites for the establishment of Group Home/Foster Home for OPs and/or PWDs shall be determined by the DSWD and NGOs in coordination with the LGUs.

ARTICLE IV

Procedures, Management, and Valuation of Donations 

SECTION 13.  Procedures for Donations. — Support and participation of concerned national government agencies, Local Government Units, non-government organizations and private sector can be made through the following:

13.1  Manner of Donations

(a)  Donation of land or existing or newly constructed housing unit(s)/structure(s) for use as Group Home/Foster Home for OPs and/or PWDs.

(b)  Donation in cash or in kind (e.g. construction materials) for the construction, operation and/or maintenance of Group Home/Foster Home.

13.2  Procedures for Donations. The procedures for donations to the Program are as follows:

13.2.1  Local Donations

(a)  In Kind

(1)  A company or organization or individual can donate in kind (e.g. construction materials) for use in the construction, operation and maintenance of Group Home/Foster Home Program for OPs and PWDs to the DSWD, NGOs or LGUs;

(2)  The donor will signify its intention by submitting its letter or proposal of intent to the DSWD, NGOs or LGUs;

(3)  The donation will be officially and formally accepted through a Memorandum of Agreement (MOA) to be signed by the DSWD, NGOs or LGUS and donor;

(4)  After the signing of the MOA, the donor will then give the donation in kind and execute the deed of donation in favor of the donee;

(5)  Donation in kind will be turned over to the DSWD, NGOs or LGUs for use in the construction, operation and/or maintenance of Group Home/Foster, Home; and

(6)  The DSWD, NGOs or LGUs will make an official and public acknowledgment of the donation.

(b)  In Cash

(1)  A company or organization or individual can donate in cash for the construction, operation, maintenance of the Group Home/Foster Home Program to the DSWD, NGOs or LGUs;

(2)  Follow procedures 2 to 6 above; and

(3)  The donor shall be informed of the progress of the utilization of his cash donation and its accomplishment by DSWD, NGOs or LGUs.

(c)  In Property

(1)  A company or organization or individual can donate land or at least one housing unit to the DSWD, NGOs or LGUs;

(2)  The donor will signify its intention by submitting its letter or proposal of intent to the DSWD, NGOs or LGUS;

(3)  The donation will be officially and formally accepted through a Memorandum of Agreement (MOA) to be signed by the DSWD, NGOs or LGUS and the donor;

(4)  After the signing of the MOA, the donor will then donate the land or housing units and execute the deed of donation in favor of the donee; CcAESI

(5)  The DSWD, NGOs or LGUs will make an official and public acknowledgement of the donation;

(6)  The DSWD, NGOs or LGUs shall exercise their options to sell the donated land intended for Group Home/Foster Home to generate funds but the proceeds from the disposition of said land shall be used exclusively for the establishment/construction and operation and maintenance of Group Home/Foster Home for OPs and/or PWDs.

The conditions that must be satisfied, before the donated land may be allowed for disposition, are as follows:

i) The donated land is not accessible to the facilities and resources in the area which may be considered as disadvantageous for the OPs and/or PWDs; and

ii)  Donee has other available land, which it can be used for the purpose and has limited funds for the construction/development of group/foster home.

SECTION 14.  Fund Management. — A cash donation shall be held in trust by the DSWD, NGOs or LGUs to which the donation was made.

The donor shall be entitled to a formal statement of account on the utilization of his/her donation and the DSWD, NGOs or LGUs shall submit a monthly report to the donor on the status of the trust fund and its utilization.

SECTION 15.  Determination of Valuation of Donations. — Pursuant to the National Internal Revenue Code, the basis in the valuation of donation, is as follows:

If the gift is made in property, the fair market value at the time will be considered the amount of donation. In case of real property; the taxable base is the fair market value as determined by the Commissioner of Internal Revenue (Zonal value) or fair market value as shown in the latest schedules of values of the provincial and city assessor (Tax Declaration), whichever is lower. If there is no zonal value, the taxable base is the fair market value that appears in the latest tax declaration. If there is an improvement, the value of improvement is the construction cost per building permit or occupancy permit plus 10% per year after year of construction, or the market value per latest tax declaration.

ARTICLE V

Government Assistance

SECTION 16.  Tax Incentives. — The donors for Group Home/Foster Home and Foster Person/Family of OPs and/or PWDs are entitled to the following tax incentives:

(a)  Any donation and/or contribution of a housing unit, or its equivalent amount in cash or in kind, that may be made by participating entities/donors for use as Group Home/Foster Home of neglected, abandoned, abused, detached and poor OPs and/or PWDs shall be exempt from the donor's tax subject to the provisions of Section 34 of Republic Act No. 8424 or the Tax Reform Act of 1997, and shall be allowed as deductions from the donor's gross income for purposes of computing the taxable income (for the year the donation was made) subject to the provisions of Section 30 (H, 1 and 2 (a)) of the Act;

(b)  The families or individual taxpayers that will serve as foster persons/families for the neglected, abandoned, abused, detached and poor OPs and/or PWDs shall also be entitled to basic personal exemptions of P25,000 as head of the family pursuant to Section 7 of Revenue Regulations which implemented the provisions of Sections 4 and 5(a) of Republic Act No. 7432. However, such foster person/family shall no longer be entitled to claim additional exemption allowable to a married individual or head of the family with qualified dependent children under section 35(B) of the Tax Code of 1997.

(c)  Any individuals or non-government institutions establishing homes, residential communities or retirement villages solely for OPs/PWDs shall be entitled to other tax incentives as provided for in RA 7432 (Senior Citizens Act), BP 344 (Accessibility Law) and other existing laws.

SECTION 17.  Procedures in the Availment of Tax Incentives. — The requirements and procedures for the availment of tax incentives are as follows:

A.  Donors

a.  The participating entity/donor shall file a written application for exemption from donor's tax, and for certificate or authorization allowing the donation as tax deductible item from donor's gross income with the:

Legislative, Ruling and Research Division

Bureau of Internal Revenue

National Office, Building, Diliman, Quezon City

or to the

Revenue Collection Office where the donor was domiciled.

B.  Foster Person/Family

a.  The OP and/or PWD shall be required by the Social Welfare Office (SWO) at the city/municipal level to declare his/her foster person/family who will be granted the exclusive right to claim him/her as dependent and issue a certification thereof;

b.  The designated foster person/family shall present the certification to the BIR for purposes of determining exemptions; and

c.  The designated foster person/family shall file his/her income tax returns indicating the allowable personal and additional tax exemptions for dependents in accordance with the Guidelines and instructions contained in BIR Form No. 1700 (Annual Income Tax Return).

ARTICLE VI

Final Provisions

SECTION 18.  Implementation. — The DSWD, HUDCC and NAPC shall implement the Group Home/Foster Home Program for OPs and/or PWDs:

SECTION 19.  Duties and Responsibilities of Participating Agencies. —

19.1  Department of Social Welfare and Development (DSWD)

(a)  Develop policies, services and standards of the Group Home/Foster Home Program in consultation with any department, bureau, office, agency or instrumentality of the national government agencies, Local Government Units and other stakeholders;

(b)  Provide training and other capacity building opportunities for the LGUs, NGOs and foster persons/families for the effective implementation of the Group Home/Foster Home Program;

(c)  Formulate the action plan and the corresponding program of activities to promote the objectives of the Group/Foster Home Program;

(d)  Provide technical assistance and resource augmentation support to implementing LGUs and NGOs;

(e)  License/accredit the operation and maintenance of LGU and NGO-operated Group Home/Foster Home;

(f)  Determine and extend livelihood program/assistance and other support services to OPs and/or PWDs assigned to the Group Home/Foster Home in coordination with government agencies involved in the provision of livelihood program/assistance;

(g)  Issue a certification stating that the foster persons/families have been designated as the benefactors of OPs and/or PWDs for purposes of claiming tax exemptions; and

(h)  Monitor and evaluate the implementation of program and services in the group/foster home for OPs and PWDs. HTCESI

19.2  Housing and Urban Development Coordinating Council (HUDCC)

(a)  Assist in the solicitation and dissemination of EO 105 and its IRRs to prospective donors; and

(b)  Provide technical assistance in the construction of Group Home/Foster Home for OPs and/or PWDs.

19.3  National Anti-Poverty Commission (NAPC).

(a)  Undertake solicitation and promotional campaigns in accordance with the approved action plan; and

(b)  In coordination with DSWD, submit regular reports on the status of implementation of Group/Foster Home for OPs and PWDs to the Office of the President.

19.4  Local Government Units (LGUs)

(a)  Operate, maintain and provide adequate funding for the operation and maintenance of Group Home/Foster Home for OPs and/or PWDs in areas where the donation is given;

(b)  In collaboration with DSWD, assign qualified foster person/family in providing care for OPs and/or PWDs; in accordance with the standards set by DSWD;

(c)  Ensure compliance to the standards in the operations and maintenance of LGU/NGO-operated Group Home/Foster Home;

(d)  Ensure compliance of private developers with the provisions of Batas Pambansa 344 or the Accessibility Law; and

(e)  Submit regular reports on the implementation of Group Home/Foster Home for OPs and/or PWDs to DSWD for monitoring purposes.

19.5  Bureau of Internal Revenue (BIR)

(a)  Issue circular/ruling allowing donations for Group Home/Foster Home and caregiving for OPS and PWDs as exempted from donor's tax and personal income tax.

19.6  National Economic and Development Authority (NEDA)

(a)  Include donations for the establishment/construction of Group Home/Foster Home for OPs and/or PWDs in the annual national priority plan to avail the maximum allowable donor's tax deduction.

19.7  Non-Government Organizations (NGOs)

(a)  Operate, maintain and provide adequate funding in the operation and maintenance of group/foster home for OPs and/or PWDs; and

(b)  Submit regular reports on the implementation of group/foster home for OPs and/or PWDs to DSWD for monitoring purposes.

SECTION 20.  Sanctions. — In case the responsible officers of the agencies concerned fail to adopt/follow the provisions prescribed above, said officers shall, in accordance with civil service laws, rules and regulations including Civil Service Commission Resolution No. 99-1936, be liable for administrative sanctions.

SECTION 21.  Monitoring and Evaluation. — The DSWD, HUDCC and NAPC shall conduct periodic evaluation on the implementation of these Implementing Rules and Regulations (IRRs). The HUDCC shall convene an Inter-Agency committee to undertake periodic assessment every year, and provisions of the guidelines may be refined as need arises.

SECTION 22.  Effectivity. — These Implementing Rules and Regulations shall take effect fifteen (15) days after its publication in any two (2) national newspapers of general circulation.

 

(SGD.) SECRETARY MICHAEL T. DEFENSORChairman, HUDCC

Published in Today on October 10, 2003.