Sec. 18. Balanced Housing Developmentcreba.ph/pdf/SEC18_RA7279.pdfBalanced Housing Development Slum...
Transcript of Sec. 18. Balanced Housing Developmentcreba.ph/pdf/SEC18_RA7279.pdfBalanced Housing Development Slum...
Section 18 of Republic Act No. 7279
Balanced Housing Development
Chamber of Real Estate & Builders’ Asso., Inc.
(CREBA)
4th Monthly Business Meeting April 25, 2013
Section 18 of Republic Act No. 7279
Balanced Housing Development
Sec. 18. Balanced Housing Development
The Program shall include a system to be specified in the Framework plan
whereby developers of proposed subdivision projects shall be required to
develop an area for socialized housing equivalent to at least twenty percent
(20%) of the total subdivision area or total subdivision project cost, at the
option of the developer, within the same city or municipality, whenever
feasible, and in accordance with the standards set by the Housing and Land
Use Regulatory Board and other existing laws. The balanced housing
development as herein required may also be complied with by the
developers concerned in any of the following manners:
Sec. 18. Balanced Housing Development
a) Development of new settlement;
b) Slum upgrading or renewal of areas for priority
development either through zonal improvement
programs or slum improvement and resettlement programs;
c) Joint-venture projects with either the local government
units or any of the housing agencies; or
d) Participation in the community mortgage program.
Requirement to Develop
an Area for SHP
Section 18 of Republic Act No. 7279
Balanced Housing Development
Location of the Socialized
Housing Project
Conformity to the Rules
and Standards of the HLURB
Other Manners of Compliance
Revised Implementing Rules And Regulations
To Govern Section 18 Of Republic Act No.
7279, Otherwise Known As “The Urban
Development and Housing Act of 1992”
Board Resolution No. 890
Series of 2012
Section 18 of Republic Act No. 7279
Balanced Housing Development
Approved on: October 12, 2012
Published on: December 17, 2012
Effective on: January 1, 2013
Scope of Application
Scope of Application Transitory Provision
“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
“Total Subdivision Project Cost” refers to the total cost of:
(i) raw land, based on the zonal value at the time of the
application for subdivision development permit;
(ii) land development; and
(iii) housing component construction.
Area and Cost
Board Resolution No. 890
Series of 2012
1. All new residential subdivision projects; and
2. Expansion or alteration of existing subdivision
projects resulting to an increase in total area
or total cost.
Main subdivision projects with already issued
development permits [before January 01, 2013] and
with allowable compliance under previous HLURB
rules are exempt from the coverage of the new IRR
Main Manner
of Compliance
Other Manners of
Compliance
Main Manner
of Compliance
at least 20% of the total
subdivision project cost
Participation
In CMP
Joint Venture With
Either LGUs or HAs
Slum Upgrading
Development Of
New Settlement
at least 20% of the
total subdivision
area / cost
Board Resolution No. 890
Series of 2012
Balanced Housing
Development
“Developers of proposed
residential subdivision
projects shall be
required to develop and
area for socialized
housing”
“The developers may also
choose any of the
following manners,
subject to the pertinent
guidelines requirements,
and procedures that may
be promulgated by
HLURB”
Other Manners of
Compliance
Development Of
New Settlement
Slum Upgrading
Joint Venture With
Either LGUs or HAs
Participation
in CMP
Balanced Housing
Development
Development Of
New Settlement
Slum Upgrading
Joint Venture With
Either LGUs or HAs
Participation
in CMP
MC Nos. 01 – 05,
Series of 2013
Balanced Housing
Development
Board Resolution No. 890
Series of 2012
Main Manner
of Compliance
Manners Of
Compliance
Balanced Housing
Development
Slum Upgrading
Participation
in CMP
Joint-venture with subsidiaries
or other developers to develop
socialized housing projects
Contribution to new socialized
housing projects of NGOs
Provision of facility, center
or amenity and other basic facilities
Modes Of
Compliance
Development Of
New Settlement
Manners Of
Compliance
Joint Venture With
Either LGUs or HAs
Development Of
New Settlement
MC Nos. 01 – 05,
Series of 2013
Slum Upgrading
Board Resolution No. 890
Series of 2012
Balanced Housing
Development
Development Of
New Settlement
Slum Upgrading
Participation
in CMP
Purchase of Instrument of
Participation Issued By NHA
Direct Contribution to the Various
Programs and projects of NHA
Slum Upgrading
Joint Venture With
Either LGUs or HAs
Board Resolution No. 890
Series of 2012 MC Nos. 01 – 05,
Series of 2013
Joint Venture With
Either LGUs or HAs
Modes Of
Compliance
Manners Of
Compliance
Balanced Housing
Development
Development Of
New Settlement
Slum Upgrading
Joint Venture With
Either LGUs or HAs
Participation
in CMP
Purchase of socialized housing
bonds approved by HLURB
Rehabilitation of Non-Performing
Socialized Housing Assets
Provision of education/health
facilities, productivity / livelihood
centers and other basic amenities
and facilities as provided in
Secs. 21 and 22 of R.A. No. 7279
Development of socialized housing
or resettlement project or takeover
by HLURB of the development
of socialized housing projects
Board Resolution No. 890
Series of 2012 MC Nos. 01 – 05,
Series of 2013
Modes Of
Compliance
Manners Of
Compliance
Participation
in CMP
Joint Venture With
Either LGUs or HAs
Balanced Housing
Development
Development Of
New Settlement
Slum Upgrading
Subscribing or purchasing asset-
backed securities as originated
or conveyed by SHFC
Providing or developing ROW.
access to roads or public
transportation lines or providing
or upgrading of amenities, facilities,
or other forms of development
in an existing CMP
Providing a parcel of land
To a CMP project
Joint Venture With
Either LGUs or HAs
Participation
in CMP
Modes Of
Compliance
Manners Of
Compliance
Participation
in CMP
Board Resolution No. 890
Series of 2012 MC Nos. 01 – 05,
Series of 2013
Memorandum Circulars
Nos. 01 – 05, S. of 2013
MONITORING,
SANCTION &
REMEDIES
Balanced Housing
Development
Development Of
New Settlement
The memorandum circulars aim to
provide a uniform application,
interpretation, usage and
implementation of the different
manners of compliance provided in
B.R. No. 890, S. of 2012.
Memorandum Circulars
Nos. 01 – 05, S. of 2013
Slum Upgrading
Joint Venture With
Either LGUs or HAs
Participation
in CMP
Manners Of
Compliance Balanced Housing
Development
General
Requirements
APPLICATION
FOR CR/LS
ANNOTATIONS
OF THE LICENSE
PUBLICATION,
BILLBOARDS &
AFFIDAVITS
Development of
New Settlement
7. Penalties and sanctions.
6. Procedure for monitoring;
5. Period of Completion; [MC No. 01, S. of 2013]
Basis of
Computation Balanced Housing
Development
Memorandum Circulars
Nos. 01 – 05, S. of 2013
2. Conformity with BP 220 minimum design
and standards;
3. Requirements and procedure for publication,
posting of billboards and submission of affidavits;
1. Location of the Compliance Project;
4. Registration, licensing, and annotations on the LS;
General
Requirements
Project Area /
Project Cost
Slum Upgrading
Basis of
Computation
Project Cost
[MC No. 02, S. of 2013]
Memorandum Circulars
Nos. 01 – 05, S. of 2013
2. Execution of a notarized joint venture agreement
or memorandum of agreement with the developer of
the socialized housing project or the NGO;
1. Accreditation and qualification of the developer
of the socialized housing project or of the NGO;
3. Obligation of the developer of the main subdivision
project to complete the compliance project;
Development of
New Settlement
General
Requirements
Joint Venture w/
either LGUs or HAs Slum Upgrading
Basis of
Computation
Project Cost [MC No. 03, S. of 2013]
Memorandum Circulars
Nos. 01 – 05, S. of 2013
General
Requirements
1. Prior approval by HLURB ;
2. Proceeds shall be exclusively devoted to NHA’s
program for slum upgrading or renewal of APDs; and
3. Proceeds shall all be deposited in a Special
Bank Account established for that purpose.
Participation
In CMP
Joint Venture w/
either LGUs or HAs
Basis of
Computation
Project Cost [MC No. 04, S. of 2013]
Memorandum Circulars
Nos. 01 – 05, S. of 2013
1. Execution of a notarized joint venture agreement
with the LGU or housing agency;
2. Resolution by the Sanggunian or by the Board of
the housing agency authorizing the joint-venture; and
3. The creation of a special bank account for the JV.
General
Requirements
Required Provisions
The JVA and MOA
Participation
In CMP
Basis of
Computation
Project Cost [MC No. 05, S. of 2013]
Memorandum Circulars
Nos. 01 – 05, S. of 2013
1. HOA of the CMP project must be in good standing
with HLURB and SHFC; and
2. Execution of a notarized memorandum of
agreement between the developer and
representative of the HOA with the conformity
and approval of SHFC;
General
Requirements
Utilization of the
Compliance Project The JVA and MOA
Allowable Utilizations Required Provisions
Memorandum Circulars
Nos. 01 – 05, S. of 2013
1. Contribution of the developer of the main
subdivision project;
2. The rights, duties, and obligations of the parties; and
3. The allotment of specific blocks and lots or units of
the socialized housing project as compliance of the
main subdivision project.
At the time of issuance of the LS (or CR),
only one main subdivision project is utilizing
the compliance project.
One-Time
Utilization
Future and Subsequent Utilizations
Future and Subsequent Utilizations
At the time of issuance of the LS (or CR),
two or more main subdivision projects are
utilizing allotted blocks and lots, or units
of the SHP as their compliance project.
Simultaneous
Utilization
EXCEPTION:
Utilization of the
Compliance Project
Memorandum Circulars
Nos. 01 – 05, S. of 2013
Allowable Utilizations
Application
for CR / LS
Future and Subsequent Utilizations
Subsequent Utilization – The developer of a MSP or its
subsidiary may develop a socialized housing project in excess
of the required compliance of the current MSP in terms of area
or cost, and subsequently utilize the excess thereof, in terms of
area or cost, for the same developer’s other or subsequent
main subdivision projects.
Future Utilization – The developer of a MSP or its subsidiary
may develop a SHP to be utilized as compliance for future
MSP/s of the developer of the MSP.
JV w/
Subsidiaries
Balanced
Housing
Memorandum Circulars
Nos. 01 – 05, S. of 2013
Utilization of the
Compliance Project
Documentary
Submissions
Declaration of UDHA
Compliance
Revised Registration Statement
Memorandum Circular
No. 10, Series of 2013
Application
for CR / LS
Memorandum Circulars
Nos. 01 – 05, S. of 2013
New and Revised
Application Forms
Application for New or
Additional Annotations
Main Subdivision Project
Memorandum Circulars
Nos. 01 – 05, S. of 2013
Application
for CR / LS
Documentary
Submissions Compliance Project
2. Certificate of Accreditation
1. Joint Venture Agreement or
Memorandum of Agreement
3. Sanggunian or Board Resolution
authorizing the joint venture
Revised Registration
Statement
Memorandum Circulars
Nos. 01 – 05, S. of 2013
Application
for CR / LS
Documentary
Submissions Main Subdivision Project
2. The JVA or MOA;
1. Certified true copy of the annotated
CR or LS of the Compliance Project
Copy of the building permit and program of development
3. Other Proof of Compliance such as:
NHA / SHFC Certificates, Instruments of Participation,
deed of donation, and/or the official receipts;
Posting of Billboards
Memorandum Circulars
Nos. 01 – 05, S. of 2013
Revised Registration
Statement
Annotations on the
CR or LS Affidavit of Posting
Memorandum Circulars
Nos. 01 – 05, S. of 2013 Posting of Billboards
Annotations on the
CR or LS Affidavit of Posting
SAMPLE OF AFFIDAVIT OF POSTING OF BILLBOARD
Fact of Posting of
Billboard
Fact of Posting of
Billboard
Contents of
Billboard
Photograph/s
Common Requirements
The Affidavit of Posting of Billboard Notice shall state:
The fact of posting at the sites of
both the MSP and the CP ; and
The respective contents of the
Billboard Notices.
Photograph/s of the Billboard Notice/s clearly showing
the location where posted shall be attached and
annexed thereto.
Memorandum Circulars
Nos. 01 – 05, S. of 2013
Subsequent Utilization One –Time Utilization
2. The total project area or total subdivision
project cost of the main subdivision and
compliance projects.
1. Names, owner/s or developer/s and locations of
the main subdivision / compliance projects; and
Memorandum Circulars
Nos. 01 – 05, S. of 2013
Annotations on the
CR or LS
Simultaneous Utilization Subsequent Utilization
2. The total project area or total subdivision
project cost of the main subdivision and
compliance projects;
1. Names, owner/s or developer/s and locations of
the main subdivision and compliance projects;
Memorandum Circulars
Nos. 01 – 05, S. of 2013
Annotations on the
CR or LS
3. The particular blocks, lots, or units being
allotted as compliance; and
4. The remaining number of lots, unit, in
terms of area or cost available for
subsequent utilization.
Other Annotations on the LS of
The Main Subdivision Project
Memorandum Circulars
Nos. 01 – 05, S. of 2013
Simultaneous Utilization
2. The total subdivision project cost of the
compliance projects and all of the main
subdivision projects; and
1. Names, owners / developers and location of all
of the main subdivisions / compliance project;
Annotations on the
CR or LS
3. The particular blocks, lots, or units being
allotted as compliance to each of the main
subidivion project.
Compliance
Certificate
1. The other modes of compliance availed of:
: Introducing or upgrading
of basic facilities and other
forms of development
to a CMP project;
: Purchase of Asset-Backed
Securities;
: Purchase of instrument
of participation
: Direct contribution,
: Provision of land , ROW
and access to
transportation lines
Other Annotations on the LS of
The Main Subdivision Project
2. The amount or cost of such purchase,
subscription, contribution or provision;
4. The TCT No., the Certificate Number, or Subscription
Number, the official receipt number and date of issue.
3. The name and location of the NHA’s project, SHP or CMP
Project benefitted by such contribution, participation,
purchase, subscription or provision; and
Memorandum Circulars
Nos. 01 – 05, S. of 2013
Annotations on the
CR or LS
Requirements “Compliance Certificate” refers to a document that
proves that the developer of the 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.
Memorandum Circulars
Nos. 01 – 05, S. of 2013
Compliance
Certificate
Procedure
2. By Licensing Division, together with the annotated LS, in
cases of compliance which do not require development,
monitoring, and completion.
Issuing Office:
1. By Monitoring Division, if the Compliance requires
monitoring of development and completion.
Monitoring and
Sanctions
Memorandum Circulars
Nos. 01 – 05, S. of 2013
Compliance
Certificate
Requirements
1. Certificate of Completion (COC); or
2. Certification issued by RFO of completion of the
particular blocks and lots, or units or of the facility
or development introduced or upgraded.
3. Certificate of Fire Inspection and Occupancy Permit; or
4. Certified true copies of the certificates of subscription,
participation or purchase of bonds , securities or
instruments and of the official receipts.
Suspension and
Reinstatement of License
Memorandum Circulars
Nos. 01 – 05, S. of 2013
Both the main subdivision project and the compliance project
shall be subject to the regular monitoring
The imposition of fines and sanctions shall be in accordance
with the schedule and guidelines of HLURB.
Cease and Desist Order (CDO)” 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.
License to Sell of the MSP may be suspended if CDO or
suspension of license is issued to the compliance project
1. Reinstatement of the CR or LS of the
compliance project; or
2. Submission of a different full
compliance, without prejudice to
the developer’s liabilities already incurred.
The application for the issuance of CR/LS for
a new main subdivision anywhere in the Phils.
shall not be accepted or shall be denied if
any of the developer’s compliance projects
has not been completed within the period
fixed by HLURB.
Monitoring and
Sanctions
General Rules
Board Resolution No. 890
Series of 2012
Guidelines For The
Accreditation of
Developers of Socialized
Housing Projects
Guidelines For The
Accreditation of Non-
Government Organizations
Memorandum
Circular No. 06,
Series of 2013
Memorandum
Circular No. 07,
Series of 2013
ACCREDITATION Board Resolution No. 890
Series of 2012
Allows JV with any developer of main subdivision
projects as compliance to Sec. 18 Disqualifications
General Accreditation
1. Applicant must be engaged in the development of
socialized housing projects; and
2. Applicant must have produced at least 2,000
SOCIALIZED HOUSING UNITS.
Qualifications
ACCREDITATION
Limited Accreditation
1. No pending CDO or suspension of license to sell
imposed by any RFO on any of its projects; and
2. No unpaid fees, fines or penalties imposed by any
RFO on any of its projects.
ACCREDITATION General Accreditation
Disqualifications
Qualifications Allows JV with developers of main subdivision projects
as compliance to Sec. 18 ONLY under any of the ff.
conditions:
1. If more than 50% of the voting stock of the
applicant is owned by the developer of the
main subdivision project; or
2. If more than 50% of the voting stock of the
applicant and if more than 50% of the voting
stock of the developer of the main subdivision
project are owned by the same corporation.
ACCREDITATION Limited Accreditation
HOWEVER, the developers of the main subdivision projects
with which applicant is entering into JV must have the
following qualifications, and none of the disqualifications
for general accreditation;
Applicant need not possess the qualifications for general
accreditation but must not possess any of the
disqualifications.
1. Must be engaged in the business of real estate
development for at least five (5) years; and
2. Must have produced at least 5,000 units.
1. No pending CDO or suspension of license to sell
imposed by any RFO on any of its projects; and
2. No unpaid fees, fines or penalties imposed by any
RFO on any of its projects.
Limited Accreditation ACCREDITATION
Disqualifications Qualifications
Other Features and
Provisions
Documentary Requirements
Procedure for Accreditation
Certificate of Accreditation
Grounds / Procedure for
Suspension and Revocation
Memorandum
Circulars
Board Resolution
No. 890, S. of 2012 Other Features and
Provisions ACCREDITATION
1. Takeover Development and Rehabilitation of Non-
Performing Socialized Housing Assets of the
Housing Agencies;
2. Donation of land and introduction or upgrading
of facilities, centers, amenities or other forms of
development to a CMP Project;
3. Purchase of Asset-Backed Securities conveyed
by SHFC;
What’s New New Features What’s Out
Memorandum
Circulars
Board Resolution
No. 890, S. of 2012
What’s Back
Joint Venture, but with more safeguards through
qualification and accreditation
“Credits” or utilizing as compliance old and
already existing socialized housing projects
and units, except only in cases of allowable
and properly declared future and subsequent
utilizations;
5. Submission of new documentary requirements;
7. Disallowance of registration and licensing of new
projects in case of incomplete or unfinished
compliance projects.
6. Close and regular monitoring of compliance
projects and introduction of clearance and
reporting system; and
4. Implementation and use of new forms;
1. Strict implementation of the required
20% compliance;
2. Detailed declaration, identification and
annotations of the particular lots or units;
3. Integration of the requirements of the Balanced
Housing Development with PD 957 Procedure;
More Options New Features
Board Resolution
No. 890, S. of 2012 Memorandum
Circulars
Section 18 of Republic Act No. 7279
Balanced Housing Development
2. More duties and responsibilities not only on the part of the
developers but also on HLURB in the implementation and
monitoring of the new Rules.
1. More participants in the Balanced Housing Program
THANK YOU.
1. More Modes of Compliance
Memorandum
Circulars
Board Resolution
No. 890, S. of 2012
3. Ease of Locating The Project
2. Allowable Combination of
of Manners and Modes
More Houses More Options
Section 18 of Republic Act No. 7279
Balanced Housing Development
Section 18 of Republic Act No. 7279
Balanced Housing Development