Revised Guidelines for the Terms of Payment of the Acquisition of Developed Lots and Completed Housing Units in Permanent Housing Sites/Low Rise Buildings (LRBs) through the Community Based Initiative Approach (CBIA) and through Public Bidding

October 12, 2018

NHA MEMORANDUM CIRCULAR NO. 2018-028

 

1.0 BACKGROUND AND PURPOSE

This Memo Circular is being issued to prescribe the terms of payment and requirements for the acquisition of developed lots with completed units in permanent housing sites/Low Rise Buildings (LRBs) through the Community Based Initiative Approach (CBIA) 1 and Public Bidding. acEHCD

The intent of the Memo Circular is to liberalize the requirements needed in the processing of payment for the acquisition and development of lots and housing units in NHA housing projects by Landowners/Contractors and Developers, streamline processing time for more effective government service delivery as mandated under RA 11032 or the Ease of Doing Business Act of 2018 and consequently, increase the absorptive capacity of NHA in the disbursement of funds.

2.0 SCOPE AND COVERAGE

This Memo Circular shall cover the basic requirements for the processing of payment to landowners/contractors/developers in the acquisition of developed lots and housing units/Low Rise Buildings for housing projects implemented through the CBIA or through bidding.

The processing of payment shall cover the following three major components:

a. Land Acquisition

b. Land Development

c. Housing Construction

3.0 GENERAL GUIDELINES

3.1 FOR PROJECTS IMPLEMENTED THROUGH BIDDING AS PER 2016 REVISED IMPLEMENTING RULES & REGULATIONS (IRR) OF R.A. 9184 — GOVERNMENT PROCUREMENT REFORM ACT.

3.1.1 Advance Payment

 The 15% advance payment for contract package shall be released to Contractor/Developer:

 Basic Requirements

1. Letter-request by the Contractor/Developer

2. Notice to Proceed

3. Irrevocable Standby Letter of Credit from a Commercial Bank, or

4. Bank Guarantee in the amount equivalent to 15% of Contract Cost, or

5. Surety bond callable upon demand, issued by a surety or insurance company duly licensed by the Insurance Commission and confirmed by the Authority

 Refer to: Checklist 1: Complete List of Requirements — Payment of Bid-out Projects

3.1.2 Payment for Land Acquisition

 

Billing	Basic Requirements
First Billing (comprises 50% of the estimated value of the total number of acquired lots)	1. Certified True Copy of the Land Title from Register of Deed (RD) 2. Certified True Copy of Tax Declaration from Assessors Office 3. Notarized Deed of Absolute Sale (DOAS) 4. MGB Assessment Report 5. Clearance from PHIVOLCS 6. ECC Electronic Application duly received by DENR-EMB 7. LGU Zoning (reclassified as residential per SB/SP Resolution
Succeeding billing (remaining 50% of the estimated value of the total number of acquired lots)	1. GSD's certification of record custody of the Owner's duplicate copy of Transfer Certificate of Title (TCT) in the name of NHA 2. Approved ECC 3. Reclassified LGU Zoning 4. Development Permit (DP)

 

 Refer to Checklist 2: Complete List of Requirements — Payment of Cost of Land: First Billing

 Checklist 3: Complete List of Requirements — Payment of Cost of Land: Succeeding Billing

 

3.1.3 Payment for Land Development

 

Billing	Basic Requirements
Succeeding billing (the amount to be based on actual work accomplishment)	1. Accomplishment Report with certification from the District/Project Office 2. Plan indicating the location of accomplished items of work 3. Photos

 

 Refer to Checklist 4: Complete List of Requirements — Payment for Land Development

3.1.4 Payment for Housing Units

 

Billing	Basic Requirements
Succeeding billing (Amount to be based on the actual accomplishment of housing units as per Schedule of Deliveries (25%, 50%, 75%)	1. Accomplishment Report with certification from the District/Project Office 2. Building Permit (BP)

 

 Refer to Checklist 5: Complete List of Requirements — Payment for Housing Units

3.1.5 Final Billing: Basic Requirements

1. Letter request of contractor/developer

2. As Built Plan with certification from General Services Department (GSD)

3. Project Inspection and Completion Report by the Acceptance Committee

4. GSD's certification of record custody of the individual TCTs under the name of NHA

5. GSD's certification of record custody of individual Tax Declaration

 Refer to Checklist 6: Complete List of Requirements — Final Payment

3.1.6 Payment for Retention Money will be released one (1) year after submission of the project inspection and completion report.

 Basic Requirements

1. Final Inspection and Acceptance Report by the Acceptance Committee

2. Warranty as prescribed in Section 62.2.3.1 (a) of the 2016 Revised IRR of R.A. 9184

 Refer to Checklist 7: Complete List of Requirements — Release of Retention Money upon Acceptance

3.2 FOR PROJECTS IMPLEMENTED UNDER THE COMMUNITY BASED INITIATIVE APPROACH (CBIA)

3.2.1 Payment for Land Acquisition

 

Billing	Basic Requirements
First Billing (comprises 50% of the estimated value of the total number of acquired lots)	1. Contract Agreement (Developer-HOA)/Memorandum of Agreement (MOA) (NHA-Developer-HOA)/Letter of Guaranty (LOG) to be issued by NHA. 2. Masterlist of Beneficiaries (based on Census and Tagging) 3. Notice to Proceed (NTP) 4. Certified True Copy of the Land Title from Register of Deed (RD) 5. Certified True Copy of Tax Declaration from Assessors Office 6. Notarized Deed of Absolute Sale (DOAS) 7. MGB Assessment Report 8. Clearance from PHIVOLCS 9. City/Municipality Planning Certificate of Land Use 10. Deed of Assignment of Loan proceeds corresponding to the value of land between HOA and Developer, and NHA as financier
Succeeding billing (remaining 50% of the estimated value of the total number of acquired lots)	1. GSD's certification of record custody of the Owner's duplicate copy of the Mother TCT in the name of NHA 2. Approved ECC 3. LGU Zoning (reclassified as residential per SB/SP Resolution) 4. Approved Site Development Plan by Management 5. Development Permit (DP) 6. Deed of Conveyance of the residential area and Deed of Donation of the non-residential area of the total project in favor of NHA

 

 Refer to Checklist 8: CBIA Contracts — Complete List of Requirements for Payment for Land (first 50%)

 Checklist 9: CBIA contracts — Complete List of Requirements for Payment of Land (remaining 50%)

3.2.2 Payment for Land Development

 

Billing	Basic Requirements
Succeeding billing (the amount to be based on actual work accomplishment)	1. Approved Subdivision Development Plan by Land Management Bureau (LMB) 2. Accomplishment Report with certification from the District/Project Office 3. Plan indicating the location of accomplished items of work 4. Photos 5. Individual Loan Agreement with Deed of Assignment 6. Appraisal of developed lots/housing units (In-house & 2 private appraisers)

 

 Refer to Checklist 10: CBIA Contracts — Complete List of Requirements for payment for Land Development

3.2.3 Payment for Housing Units/LRBs

 

Billing	Basic Requirements
a. Housing Units Succeeding billing (Amount to be based on the actual accomplishment of housing units as per Schedule of Deliveries (25%, 50%, 75%)	1. Accomplishment Report with certification from the District/Project Office 2. Approved Detailed Architectural and Engineering Building Plans and Drawings 3. Building Permit (BP) 4. Plan indicating the location of accomplished items of work
b. LRBs — PER BUILDING BASIS  First payment: at 50% accomplishment (refer to ANNEX A for parameters for 50% accomplishment)   Final payment: at 100% accomplishment	1. Accomplishment Report with certification from the District/Project Office 2. Approved Detailed Architectural and Engineering Building Plans and Drawings 3. Building Permit (BP) 4. Plan indicating the location of accomplished items of work

 

 Refer to Checklist 11: CBIA Contracts — Complete List of Requirements for Payment for Housing Units

 Refer to Checklist 12: CBIA Contracts — Complete List of Requirement for Payment for LRBs

3.2.4 Final Billing: Basic Requirements

1. As Built Plan with certification from GSD

2. Project Inspection and Completion Report by the Acceptance Committee

3. GSD's certification of record custody of the individual TCTs under the name of NHA

4. GSD's certification of record custody of the individual Tax Declaration

5. Individual Acceptance Report (IAR) of house and lot units by project beneficiaries

6. Occupancy permit and Certificate of Fire Eligibility Inspection (CFEI)

 Refer to Checklist 13: CBIA Contracts — Complete List of Requirements for Final Payment

3.2.5 Payment for Retention Money — to be released one (1) year after submission of the Project Inspection and Completion Report.

 Basic Requirements

1. Final Inspection and Acceptance Report by the Acceptance Committee

2. Warranty as prescribed in Section 62.2.3.1 (a) of the 2016 Revised IRR of R.A. 9184

 Refer to Checklist 14: CBIA Contracts — Complete List of Requirements for Release of Retention Money

4.0 REPEALING CLAUSE

This Circular supersedes the following:

i. Provisions of Section 16.0 on the Terms of Payment to Landowners/Contractors/Developers of Memo Circular 2018-014 prescribing the Revised Guidelines for the Financing of the Acquisition of Developed lots and Completed housing units in Permanent Housing Sites through the CBIA. EcTCAD

ii. Pertinent provisions of MC 2059 dated 27 September 2006 prescribing the Checklist of Contract implementation of infra and surveying projects.

iii. All other related issuances such as Terms of Reference (TOR) required for housing projects where NHA is procuring developed lots and completed housing units.

5.0 EFFECTIVITY

This Memorandum Circular shall take effect immediately.

For implementation and guidance of all concerned. SDHTEC

(SGD.) MARCELINO P. ESCALADA, JR.General Manager

ANNEX A

Parameters for Determining 50% Accomplishment for One (1) LRB Building

ITEM	ACCOMPLISHMENT
Structural Works	100%
Roofing Works	100%
Plumbing & Sanitary Works	With Roughing-in
Electrical Works	With Roughing-in
TOTAL ACCOMPLISHMENT	~50%

Structural Works — Consists of Columns, Beams, Slabs and Walls (unplastered) Roofing Works — Consists of Trusses and Sheathing Roughing-in — Part of the electrical & plumbing that is concealed (as in walls, columns, beams of under floors)

 

Checklist 1 — Payment for Bid-Out Contracts

 

Checklist 2 — Payment for Bid-Out Contracts

 

Checklist 3 — Payment for Bid-Out Contracts

 

Checklist 4 — Payment for Bid-Out Contracts(Succeeding Billings — Land Development)

 

Checklist 5 — Payment for Bid-Out Contracts

 

Checklist 6 — Payment for Bid-Out Contracts(Final Billing — Land Dev't./Housing)

 

Checklist 7 — Payment for Bid-Out Contracts(Release of Retention Money upon Acceptance)

 

Checklist 8 — CBIA Contracts(First Billing — 1st 50% of Cost of Land)

 

Checklist 9 — CBIA Contracts(Succeeding Billing — 2nd 50% of Cost of Land)

 

Checklist 10 — CBIA Contracts(Succeeding Billing — Land Development)

 

Checklist 11 — CBIA Contracts(Succeeding Billing — Housing Units)

 

Checklist 12 — CBIA Contracts(Billing — LRBs) — (50%)

 

Checklist 13 — CBIA Contracts(Final Billing — Housing Units/LRBs)

 

Checklist 14 — Payment for CBIA Contracts(Release of Retention Money)

 

 

Footnotes

1. Community Based Initiative Approach (CBIA) is an implementation strategy designed to build on the community's initiative and promote the participation of affected families, through their Community Associations, in the relocation and resettlement decision process.