Republic of the Philippines
HOUSE OF REPRESENTATI
Quezon City, Metro Manila

SEVE.

EENTH CONGRESS
First Regular Session

3933

House Bill No.

PRESE D>

* RECEIVED
pared 4 OCT 2016

Introduced by Rep. BERNADETTE HERRERA-DY

EXPLANATORY NOTE

It is the policy of the state to provide intervention for affordable
housing program for the public, especially for the poor, marginalized and
homeless Filipinos. No less than the 1987 Philippine Constitution, under
Section 9, Article XIII provides: "The State shall, by law, and for the
common good, undertake, in cooperation with the private sector, a
continuing program of urban land reform and housing which will make
available at affordable cost decent housing and basic services to
underprivileged and homeless citizens in urban centers and resettlement
areas,"

With the housing trends in the metropolitan and urban areas in the
country, most housing developers choose, nowadays, vertical housing
projects such as condominium projects to answer for the scarcity and lack
of available lots suitable for housing projects. Past housing programs
have enabled non-poor households to have access to the formal housing,
markets. However, socialized housing is still inaccessible to the poor,
especially those in urban areas. The bottom 40 percent of urban
households had to resort to informal housing or informal settlements
characterized by congestion and very poor living conditions. In fact, under
Chapter 4 of the Medium-Term Philippine Development Plan (MTPDP) for
the year 2004-2010 on Housing Construction, one of the key challenges
set forth therein is expanding private sector participation in socialized
housing financing and construction, and with the thrust of the
government to shift towards a market-oriented housing finance
system, a level playing field for both public and private housing programs
will be ensured.

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Demand for housing continues to grow as the Philippine
population continues to grow rapidly. Government resources are,
however, limited and most public programs tend to produce complete
shelter packages largely affordable to the poor. Annual population
growth is estimated at 2.36 percent while urbanization rate is 52 percent.
For the period 2005-2010 according to the NEDA, the housing need is
projected to be 3.75 million units. In terms of geographical location,
more than half of the total housing needs (56%) is in Southern Tagalog,
the Metropolitan Manila and Central Luzon, 2.1 percent in the Visayas
and the remaining 23 percent in Mindanao (Chapter 4 - Housing
Construction MTPDP 2004-2010). With the vertical housing development
trend nowadays plus the bigger percentage c.)1 housing needs in the
urban areas, the share and participation of the private sector in
socialized housing has to be reassessed and restructured o include
vertical 1100 sing developments, such as condominium projects, to help
mitigate, if not cradicate this backlog of housing needs in the country.

This proposed measure amends the Republic Act 4276 entitled,
The Condominium Act" by requiring developers of proposed
condominium projects to develop an area for socialized housing which is
equivalent to twenty-percent (20%) of the total project area or total
condominium project cost, at the option of the developer. The area for
such socialized housing component shall be done within the same city or
municipality, whenever feasible, and in accordance with the standards
set by the Housing and Land Use Regulatory Board (HLURB) and other
existing laws.

In view of the foregoing, approval of this bill is earnestly sought.

BERNADETTE HERRERA-DY


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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

SEVENTEENTH CONGRESS
First Regular Session

3933

Housing Bill No.

Introduced by REP. BERNAD!

HERRERA-DY

AN ACT REQUIRING DEVELOPERS OF PROPOSED
CONDOMINIUM PROJECTS TO DEVELOP AN AREA FOR
SOCIALIZ! HOUSING, AMENDING FOR THE PURPOSE

REPUBLIC AC }O. 4726 ENTITLED "THE CONDOMINIUM ACT"

Be it enacted by the Senate and the House of Representatives of the
Philippines in joint se

ion:

Section 1. Short Title - This act shall be known as the “
Housing for Condominium Act of 2016"

ocialized

Section 2. The following new sections to be designated as sections
26 and 27 of Republic Act 4726, are hereby inserted to read as follows:

"See. 26. Developers of proposed condominium projects shall be
required to develop an area for socialized housing equivalent to at
least twenty percent (20%) of the total project area or total
condominium 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 requirement
herein may also be complied with in any of the following manner:

(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

(4) Participation in the community mortgage program.


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For purposes of this Act, “socialized housing” shall have the
same meaning as that stated in Section of Republic Act Bo.
7270 entitled “Urban Development and Housing Act of
1992.” Similarly, the provi: said Act on Socialized
Housing, in so far as they are applicable to carry out the
of this section, shall apply to condominium

.27. Any person who violates the foregoing
provision shall be imposed a penalty of not more than six
(6) years of imprisonment or a fine of not less than Five
Hundred Thousand Pesos (P500,000,00) but not more than
Ten Million Pesos (P10,000,000,00 or both, at the discretion
of the court for the first offense and cancellation of license to do
business for the second offense: Provided, that, if the offender
is a corporation, partnership, association or juridical entity,
the penalty shall be imposed on the officer of officers of said
corporation, partnership, association or juridical entity
who caused the violation."

Section 3. Section 26 and 27 of RA 4726 of 4726, are hereby amended
and renumbered to read as Section 28 and 29, respectively.

Section 4. Separability Clause. If any part, section or provision of
this Act shall be held invalid or unconstitutional, the validity of the
remaining provisions thereof shall be in full force and effect.

Section 5. Repealing Clause. Any presidential decree or issuance, executive

order, rules or regulation contrary to or consistent with the provisions of this Act is
hereby repealed, modified, or amended accordingly.

Section 6. Effectivity. This Act shall take effect fifteen (15) days after
publication in the Official Gazette or in at least two newspapers of general
circulation,

Approved,