Sec. 18. Balanced Housing Developmentcreba.ph/pdf/SEC18_RA7279.pdfBalanced Housing Development Slum Upgrading Participation in CMP Joint-venture with subsidiaries or other developers

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



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



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



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


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


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


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


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


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



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



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.


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


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]


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]


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



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



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


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


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


Nos. 01 – 05, S. of 2013

Allowable Utilizations

Application

for CR / LS


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


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


Nos. 01 – 05, S. of 2013

New and Revised

Application Forms

Application for New or

Additional Annotations

Main Subdivision Project


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


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


Nos. 01 – 05, S. of 2013

Revised Registration

Statement

Annotations on the

CR or LS Affidavit of Posting


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.


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


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;


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


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


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.


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


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


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


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



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





Documents

Sec. 18. Balanced Housing Developmentcreba.ph/pdf/SEC18_RA7279.pdfBalanced Housing Development Slum Upgrading Participation in CMP Joint-venture with subsidiaries or other developers