Republic of the Philippines
REPUBLIC OF THE PHILIPPINES
Quezon City

15" Congress
2 Regular Sessio7

. 1438
COMMITTEE REPORT NO.
ry aay
Submitted by itge on Koysing and Urban Development on _t J

y the Con
Re: House Bill No: _'iit¥

Recommending its approval n Substitution of House Bill Nos. 3 BB, 3189, 3451, 4022, 4371 and 5282
Sponsors: Representatives Valencia, Herrera-Dy, Mercade-Revilla, Bello and Lazatin

Mr. Speaker:

“The Committee on Housing and Urban Development to which were referred House Bill No. 3188
introduced by Rep. Bernadette R. Herrera-Dy, emtitled:

“AN ACT REQUIRING DEVELOPERS OF PROPOSED CONDOMIMIUM PROJECTS TO
DEVELOP AN AREA FOR SOCIALIZED HOUSING, "AMENDING FOR THE PURPOSE
REPUBLIC ACT NO. 4726 ENTITLED “THE CONDOMINIUM ACT”,

House Bill No, 3189 introduced by Reps. Bemadente R, Herrera-Dy and Marcelino R, Teodoro emitles:

AN ACT REQUIRING DEVELOPERS OF PROPOSED CONDOMIMILM PROJECTS TO.
DEVELOP AN AREA FOR SOCIALIZED HOUSING, AMENDING FOR THE PURPOSE,
REPUBLIC ACT NO. 7279 ENTITLED “URBAN DEVELOPMENT AND HOUSING ACT

OF 1992's
House Bill No. 3451 introduced by Rep. Lani Mervado-Revilla entitled:

AN ACT AMENDING SECTION 18 OF REPUBLIC ACT NO 7279, OTHERWISE
KNOWN AS THE URBAN DEVELOPMENT AND HOUSING ACT OF 1992, AND FOR

OTHER PURPOSES”:
House Bili No. 4022 introduced by Reps. Walden F. Betlo ané Kaka G. Bag-ae entitled

“AN ACT TO PROMOTE BALANCED HOUSING DEVELOPMENT AND ENHANCE
PRIVATE SECTOR CONTRIBUTION TO EFFORTS TO ADDRESS THE HOUSING
BACKLOG AND AMENDING FOR THE PURPOSE PROVISIONS OF REPUBLIC ACT
NO. 7279 OTHERWISE KNOWN AS THE URBAN AND HOUSING DEVELOPMEN f
ACT OF 1992 AND OTHER RELATED LAWS”:



House Bll No. 4371 introduced by Rep. Rodolfo G.Valencia emtitled:

“AN ACT TO AMEND SECTIONS 18 AND 2) OF REPUBLIC ACT NO. 7279,
ENTITLED “AN ACT TO PROVIDE COMPREHENSIVE AND CONTINUING URBAN
DEVELOPMENT AND HOUSING PROGRAM, ESTABLISH THE MECHANISM FOR
ITS PMPLEMENTATION, AND FOR OTHER PURPOSES” OTHERWISE KNOWN AS
“HE “URBAN DEVELOPMENT AND HOUSING ACT OF '992', TO (NCLUDE THE.
CONSTRUCTION OF EDUCATION FACILITIES AS AN ALTERNATIVE
COMPLIANCE TO THE BALANCED HOUSING DEVELOPMENT";

‘and House Bill No. 5282 introduced by Rep. Carmelo F. Lazatin entitled:

“AN ACT AMENDING SECTION 18 OF REPUBLIC ACT NO. 7279, ENTITLED: ‘AN
ACT TO PROVIDE FOR A COMPREHENSIVE AND CONTINUING URBAN
DEVELOPMENT AND HOUSING PROGRAM, ESTABLISH THE MECHANISM FOR
ITS IMPLEMENTATION, AND FOR OTHER PURPOSES.” “ 54 4 @
hhas considered the same anid recommends that the attached House Bill No. , entitled:
“AN ACT STRENGTHENING THE BALANCED HOUSING DEVELOPMENT
PROGRAM, AMENDING FOR THE PURPOSE REPUBLIC ACT NO, 7279, ENTITLED:
"AN ACT TO PROVIDE FOR A COMPREHENSIVE AND CONTINUING URBAN
DEVELOPMENT AND HOUSING PROGRAM, ESTABLISH THE MECHANISM FOR ITS
IMPLEMENTATION, AND FOR OTHER PURPOSES’ ”

House Bill Nos. 3188, 3189, 3451, 4022, 437] and 5282 with Reps- Herrera-Dy,

be approved in substitution of
Ho. Bag20, Valencia, Lazatin, Castelo, Leonen-Pizarro, Olivares, Alcala, Tings,

Teodors, Mercado Revilla, Be
Palmonca. Ty. Lico, De Jesus, Sarmiento and Lapus as authors thereof.

THE HONORABLE SPEAKER
HOUSE OF REPRESENTATIVES
QUEZON CITY


Revablis of the Philippines:
Bouse wf Bepresentatives:
@rarsan Cite”

FIFTEENTH CONGRESS
Second Regular Session

S446

HOUSE BILLNO.

ee

introduced by Reps. Herrere-Dy, Teodoro, Mercado-Revilla, Bello, 2g-20, Valencia, Lazatin,
Castelo, Leonen-Pizarro, Olivares, Alcala, Tinga, Paimones, Ty, Lico, De Jesus, Sarmiento and Lagus

AN ACT STRENGTHENING THE BALANCED HOUSING DEVELOPMENT PROGRAM, AMENDING FOR THE

PURPOSE REPUBLIC ACT NO. 7279, ENTITLED: “AN ACT TO PROVIDE FOR A COMPREHENSIVE A\
CONTINUING URBAN DEVELOPMENT AND HOUSING PROGRAM, ESTABLISH THE MECHANISM FOR

ITS IMPLEMENTATION, ANO FOR OTHER PURPOSES"

Be it enacted by the Senote and House of Representatwes of the Philippines in Congress assembled:

1 SEC. 1. Short Title. - This act shall be known as the “Balanced Housing Development

2 Program Amendment of 2011",
3 SEC. 2. Amendatory Provisions. - For purposes of this Act, the following provisions of
4 Republic Act (R.A.) No. 7279, entitled: "An Act to Provide for a Comprehensive and Continuing Urban,

5 Development and Housing Program, Establish the Mechanism for its Implementation, and for Other

6 Purposes," are hereby amended:

7 {a)Section 18 of R. A. 7279 is hereby amended to read as follows:
a "SEC. 18. Balanced Housing Development: - The Program shall
9 include a system to be specified in the Framework plan whereby OWNERS

10 AND/OR developers of praposed subdivision AND CONDOMINIUM projects


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shall be required to develop an area for socialized housing equivalent to at
least twenty percent (20%) of the total subdivision OR CONDOMINIUM area
of total subdivision OR 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[.J: PROVIDED, THAT OWNERS AND/OR
DEVELOPERS OF PROPOSED SOCIALIZED HOUSING SUBDIVISION PROJECTS
AND OWNERS AND/OR DEVELOPERS Of PROPOSED CONDOMINIUM
PROIECTS TO BE SOLD AT SOCIALIZED HOUSING PRICES SHALL BE EXEMPT
‘THEREFROM. The balanced housing development as herein required may also
be comptied with by the OWNERS AND/OR developers concerned 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;
¢) Joint-venture projects FOR SOCIALIZED HOUSING with either the
local government units or any of the housing agencies {;] or WITH
ANOTHER PRIVATE DEVELOPER, PROVIDED THAT, THE OWNER
"AND/OR DEVELOPER OF THE MAIN SUBDIVISION OR CONDOMINIUM
PROJECT SHALL BE SOLIDARILY LIABLE WITH THE OWNER AND/OR
DEVELOPER OF THE SOCIALIZED HOUSING PROJECT FOR THE
DEVELOPMENT OF THE LATTER, IRRESPECTIVE OF THE PROVISIONS OF
THEIRJOINT VENTURE AGREEMENT;

¢) Participation in the community mortgage program, EITHER AS

FINANCIER OR DEVELOPER. {.]; OR


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UCATION FACILITIES WITHIN THE PROJECT,

£) DEVELOPMENT 1

~ WHENEVER FEASIBLE, OR WITHIN THE CITY OR MUNICIPALITY,
WHEREVER SEASIBLE, IN ACCORDANCE WITH SECTION 21 HEREOF.

NO OTHER FORM OF COMPLANCE TO THIS SECTION MAY BE
PRESCRIBED EXCEPT THROUGH THE ENACTMENT OF A SUBSEQUENT LAW.

FURTHERMORE, NO SUBDIVISION PLAN SHALL BE APPROVED BY ANY

LOCAL GOVERNMENT UNIT OR GCVERNVENT AGENCY UNLESS THE SAME 1S

IG, MADE UNDER OATH, 8Y THE

ACCOMPANIED BY A WRITTEN UNDERTA\

OWNER AND/OR DEVELOPER, SETTING FORTH IN DETAIL THE MANNER IN
WHICH COMPLIANCE WITH THIS SECTION IS PROPOSED.” .

{b) Section 21 of R.A 7273 is hereby amended to read as follows:

"SEC. 21. Basic Services, - Socialized housing or resettlement areas shall de

provided by the local government unit of the National Housing Autnority in

cooperation
with the following basic services and facilities:
2) Potable water;

b) Power and electricity and an adequate power distribution system;

¢) Sewerage facilities and an efficient and adequate solid waste disposal

system; aad
} Access to primary roads and transportation facilities,
The provision of other basic services a
communication, security, recreation relit
given priority for implementation

agencies in cooperati

PROVIDED, THAT THE PROVISION OF EDUCATION FACILITIES BY AN OWNER ANO/OR

with the private OWNERS AND/OR developers and concerned agencies

ind facilities such as health, education,
ef and welfare shall be planned and shall be
by the local government unit and concerned

lon with the private sector and the beneficiaries themselves(.}:


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this Act, the Housing and Land Use Regulato!

A DEVELOPER IN SOCIALIZED HOUSING AREAS PURSUANT TO SECTION 38 (E)

HEREOF SHALL BE ACCORDED A HIGH PRIORITY.

The local government unit, in coordination with the concerned nat onal
agenties, shall ensure that these basic services 2re provided at the most zost-
efficient rates, and shall set a mechanism to coardinate operationally the thrusts;

objectives and activities of other government =gencies concerned with providing

basic services to housing projects.”
{c} Section 45 of RA. 7279 is hereay amended to read 2s follows:

“SEC. 45. Penaity Clause. Any person who violates any provision of this Act
ent or a

shall be imposed the penalty of not more than six (6) years of imprisonm

fine of not less than Five thousad pesos (25,000} but not mere than One hundred

thousand pesos {100,000}, or both, at the discretion of the court: PROVIDED, THAT,
ANY PERSON WHO VIOLATES THE PROVISION OF SECTION 18 HEREOF SHALL BE
IMPOSED A PENALTY OF NOT MORE THAN SIX (6) YEARS OF IMPRISONMENT ORA
FINE OF NCT LESS THAN FIVE MUNDRED THOUSAND PESOS (500,000.00) BUT NOT
MORE THAN TEN MILLION PESOS (#40,000,000.00), OR BOTH, AT THE DISCRETION
Of THE COURT FOR THE FIRST OFFENSE AND CANCELLATION OF LICENSE TO DO
QUSINESS FOR THE SECOND OFFENSE: Provided FURTHER, That, if the offender is a
corporation, partnership, association or juridical entity, the penalty shall be imposed
‘on the officer or officers of said corporation, partnership, association oF juridical
entity who caused the violation.”

SEC. 3. Implementing Rules and Regulations. - Withi

jin sixty (60) days from the effectivity of

ry Board sail promulgate a new set of implementing

ules and Regulations for the amended Sections 18, 21 end 45 of Republic Act No. 7279, consistent ~

wwita the parameters and standards set forth in said sections. Non-government organizations and



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___ sector, shat he consulted in the process of drafting these. implementing rules,_

people's organizations Involved in housing rights and urban poor advocacy, as well as the private

SEC. 4. Separability Clause. - \f for any reason, any provision of this Act is declared invalid or
unconstitutional, the remaining provisions not affected thereby shal! continue to be in force and
effect.

SEC. 5. Repealing Clause. - All laws, decrees, executive orders, proclamations, rules and
regulations, and other issuances, or part or parts thereof, which are inconsistent with the provisions

of this Act are hereby repealed or modified accordingly.

SEC. 6. Effectivity Clause. - This Act shall take effect fifteen (25} days after the completion of
its publication in the Official Gazette or in at least two {2) newspapers of general circulation.

Approved.



wee we FACT. SHEET --

House Bit No. >*_$446
(As Approved by the Committee on October 12, 2011)

BALANCED HOUSING DEVELOPMENT PROGRAM
AMENDMENT OF 2011

Introduced by: REPS, HERRERA-DY, TEODORO, MERCADO-REVILLA, BELLO, BAG-AO,
VALENCIA, LAZATIN, CASTELO, LEONEN-PIZARRO, OLIVARES, ALCALA, TINGA,
PALMONES, TY, LICO, DE JESUS, SARMIENTO and LAPUS

Committes Referral: COMMITTEE ON HOUSING AND URBAN DEVELOPMENT
Committee Chairperson: REP. RODOLFO G. VALENCIA

OBJECTIVES:

* To accelerate the provision of affordable socialized housing nationwide and
provide underprivileged and homeless Filipinos the ‘opportunity to own a home by
including the owners and developers of condominium projects in the production of
socialized housing projects

To include the development of education facilities within the project or within the
city or municipality as a mode of compliance

KEY PROVISIONS:

Includes in the coverage of Section 18 of Republic Act (RA.) No. 7279
condominium projects whose owners of developers shall be required to develop
gn area for socialized housing equivalent to at least 20% of the total condominium
area or condominium cost .

« Exempts owners and/or developers of proposed socialized housing subdivision
and condominium projects from the coverage of this Act

* Aliows developers covered by this Act to engage in a joint-venture project with
another private developer both of whom shall be solidarily liable in the production
of the socialized housing in compliance with the balanced housing recuirement
regardless of the provisions of their joint-venture agreement

«Includes the development of education facilities within the project. city oF
municipality as. a mode of compliance with the balanced housing requirement


«Amends Section 45 of R.A. 7279 to include a provision that penalizes any person
who violates the provision of Section 18 with imprisonment of not more than six
(6) years or a fine of not less than Five Hundred Thousand Pesos (PS00,000.00)
but not more than Ten Million Pesos (P10,000,000.00)
RELATED LAWS:

* Republic Act No. 7279 — Urban Development and Housing Act
» Republic Act No. 4726 - Condominium Act

CHUDAS feomnitiee eepor Balanced Housing/ FS