2017 Investment Priorities Plan (Mass Housing) - shda.phshda.ph/wp-content/uploads/2017/08/LPR-SHDA... · 2017 Investment Priorities Plan ... ARMM List 2017 Investment Priorities

2017 Investment Priorities Plan

(Mass Housing)

Governor Lucita P. Reyes

Board of Investments

SHDA Business Forum

Metropolitan Club, Rockwell Center, Makati City

27 July 2017

I. Preferred Activities

1. MANUFACTURING

2. AGRIBUSINESS AND

FISHERY

3. SERVICES

4. ECONOMIC & LOW

COST HOUSING

5. HOSPITALS

6. ENERGY

7. PUBLIC INFRA &

LOGISTICS

II. Export Activities

III. Mandatory List

Production & manufacturing of

export products

Services exports

IV. ARMM List

2017 Investment Priorities Plan

3

Development of Economic and Low Cost Housing

2017 Investment Priorities Plan (IPP)Specific Guidelines

2017 IPP Highlights(Mass Housing)

• Selling Price:

Above PhP450K to PhP2.0M

• Location:

Outside Metro Manila

• New acceptable mode of SH compliance

• In-City Housing for Lease

• Qualifications for registration:

- Selling price: Above Php450K - Php 2.0M per unit

- Located outside Metro Manila

- Minimum: 20 livable dwelling units in a single site or building

- New or expansion

At least 51% of the total gross floor area must be devoted tohousing (residential condominiums)

2017 IPP Specific GuidelinesEconomic and Low-Cost Housing

• Un-incorporated JV (landowner and developer) -- only theshare of the developer may qualify for registration

• Projects that have already been completed (with HLURBcertificate of completion) and have incurred sales of anyhousing unit prior to the date of the Contract-to-Sell shall notqualify for registration.



• Socialized Housing Requirement

Socialized housing requirement (SHR) by building socializedhousing units in an area equivalent to at least 20% of the totalregistered project area or total BOI registered project cost forsubdivision housing and 20% of the total floor area of qualifiedsaleable housing units for residential condominium projects.



SHR compliance may be any or a combination (i.e. costrecoverable and non-recoverable modes) of any of the followingmodes:

1. Development of a new settlement

2. Development of a new settlement through joint venture withSHFC, LGU or Developer/NGO accredited by HLURB

In the case of joint venture projects, the BOI registered entity shall be required to provide proof of funds transferredor assessed value of the land, where applicable, to the implementing entity



3. Development of a new settlement through donation of landwith basic infrastructure facilities and/or construction materials(preferably locally produced) in partnership with relevant LGU,key shelter agency, or with BOI/HLURB-accredited NGO in anyof the following:

a. Comprehensive rural community housing development (w/ social services + livelihood)

b. To benefit families in calamity-stricken or armed conflict areas



- Amount to be donated for residential housing units:30% of (20% of the building construction cost based on theactual number or equivalent total floor area of qualifiedsaleable low cost housing units) or 40% of the estimated ITH.Equivalent total floor area refers to the sum total of the floorarea of all registered low cost housing units


Some reminders:

• ITH availment - 20% SHR compliance - computed based on the actual units sold during the ITH availment period.Failure to submit proof = Forfeiture of ITH for that particular taxable period.

• Non-compliance with the 20% SHR on previous registrations using the ITH-based Compliance (IBC) = denial of applications for registration for succeeding projects

• Interest income arising from in-house financing shall not be entitled to ITH


Some reminders:

• Application for registration must be accompanied by a copy of theDevelopment Permit issued by HLURB or concerned LGU.

• Prior to registration submit copies of License to Sell (LTS) andCertificate of Registration (CoR) issued by HLURB – now applies toboth subdivision and condominium projects

BOI Memorandum Circular No. 2017-002 Series of 2017 – RevisedTerms and Conditions of BOI-Accredited NGO Engaged in DirectParticipation on the Compliance of the 20%SHR

1. The construction cost per SH unit shall not be less thanPhP200K

2. Ensure that the construction of SH units covered by its previousAgreement are completed and/or in accordance with thetimetable set for the previous projects as required in theAgreement. Further the accredited entity shall first completethe community development or construction of housing unitsin one location before transferring to another location, unlessthere is pressing need to do otherwise due to unforeseeableoccurrence of those falling under the acts of God.

New Policy on Donations with NGOs (Highlights)

BOI Memorandum Circular No. 2017-002 Series of 2017 – RevisedTerms and Conditions of BOI-Accredited NGO Engaged in DirectParticipation on the Compliance of the 20%SHR

3. The accredited entity shall provide for basic facilities such aselectricity, water and sewerage system

4. Period of completion of the project shall not exceed one (1) yearfrom the date of signing of the agreement or prior to ITHavailment for that particular taxable year, whichever comeslater

New Policy on Donations with NGOs (Highlights)

In-City Low Cost Housing for Lease

2017 Investment Priorities Plan (IPP)Specific Guidelines

• Only developers shall be entitled to ITH and as such, purchasers of housing units with the intention of leasing out shall not be qualified for registration.

• Registered enterprise shall not be required to comply with the SHR.

2017 IPP Specific GuidelinesIn-City Low Cost Housing for Lease

This covers newly constructed, low to medium-rise anddormitory-type housing projects including those located inMetro Manila.

Qualifications for Registration:

1. Minimum of 20 livable dwelling units for lease in a single building

2. Within4 kilometer radius from an economic zone,industrialparks/complex, business districts

3. Monthly lease price shall not exceed the threshold of the Rent Control Law (R.A. No. 9653) covering all private residential units with monthly rent of Php10,000.00.

2017 IPP Specific GuidelinesIn-City Low Cost Housing for Lease

BOI-Registered MH Projects

BOI-Registered Projects

(Economic and Low Cost Housing)Total as of 30 June 2017

No. of Projects 1,164

Horizontal 824

Vertical 340

Registered Capacity 544,199 units

Horizontal 319,190

Vertical 225,009

Total Project Cost P461.0 Billion

Job Generation 290,531 jobs

ITH Availment (2005-2015)

P19.2 BillionTotal ITH Availment

(2005-2015)

P14.8M2005

P95.7M2006

P304.8M2007

P704.2M2008

P1.0B2009

P3.7B2014

P3.4B2013

P2.5B2012

P2.2B2011

P1.7B2010

P3.5B2015

Revocation of the Issuance of Temporary License to Sell

– Effective July 1, 2017 HLURB through its Board ResolutionNo. R-948 (Revoking Board Resolution No. 756, S2003Otherwise Known as Building Permit as a PostRequirement to Registration and License to Sell forCondominium Projects) stops the issuance of TLTS tocondominium developers.

– HLURB Memo Circular No. 12 (18 July 2017) – states thatonly applications for LTS for condo projects acceptedbefore the effectivity of the resolution can still be issuedTLTS

Current Housing Industry Issues

• Booked Sales


Source of Revenue

Time of Recognition

Supporting Documents

1. HDMF Upon receipt of Takeouts from HDMF

Duly notarized Contract to Sell (CTS), or Certificationsfrom the HDMF the takeout of days, or Duly notarized Deed of Absolute Sale

2. Banks Upon receipt of payment from banks

Duly notarized Contract to Sell (CTS), or Certificationsfrom the Bank of the payment date, or Duly notarized Deed of Absolute Sale

• Booked Sales


Source of Revenue

Time of Recognition Supporting Documents

3. Outright Cash Full Payment

Upon receipt of outright cash full payment

Duly notarized Contract to Sell (CTS)or Duly notarized Deed of Absolute Sale

4. In-housefinancing

Upon receipt of at least a certain percentage of payment of the total house and lot package price under the “deferred payment scheme”

Duly notarized Contract to Sell (CTS)

• Exemption BOI-registered projects to Local Business Tax

Section 133 of RA 9160 or the Local Government Code of 1991

Common Limitations on the Taxing Powers of Local GovernmentUnits (provinces, cities, municipalities, and Barangays )

“Xxx

(38) Taxes on business enterprises certified to by the Board ofInvestments as pioneer or non-pioneer for a period of six(6) and (4) four years, respectively from the date ofregistration;

Xxx”


• Inclusion of indicative selling price of housingunits registered with the Board in theregistered firms Specific Terms and Conditions


Thank you!

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