AS
KS RECEIVED

Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila
Twentieth Congress
First Regular Session

House Bilt No,__1268

Introduced by Honorable Roy M. Loyola

EXPLANATORY NOTE

It has been an established policy of the State to undertake programs that will
make available decent housing at affordable cost to our underprivileged and homeless
citizens to uplift the living conditions of our people.

To this end, the bill seeks to strengthen and improve the delivery of socialized
housing programs in cooperation with the private sector by amending the provision on
the Balanced Housing Development under Section 18 of Republic Act No. 7279,
otherwise known as the “Urban Development and Housing Act of 1992”, as amended
by Republic Act No. 10884 or the “Balanced Housing Development Program
Amendments”.

The law provides that a developer proposing to undertake a subdivision or
condominium project is required to develop an area for socialized housing equivalent
to 15% of the total area or total cost of the main subdivision project, or 5% of that of
the condominium project, as the case may be; or submit incentivized compliance
equivalent to at least the required fifteen percent (15%) or five percent (5%) of the total
project cost of the main subdivision or condominium project, respectively, as may be
applicable at the option of the developer.

Relatedly, developers may opt to comply with the foregoing requirements in any
of the following approaches:

1) Allocating part of the main project area for development of the socialized
housing component;

2) Development of socialized housing in a new settlement;

3) Joint-venture projects for socialized housing with an LGU, any of the housing
agencies, another private developer, or an NGO;

4) Participation in a new project under the community mortgage program; and,

5) Submission of developer participation as incentivized compliance.

Under this bill, the Department of Human Settlements and Urban Development
(DHSUD) shall authorize the developers of the subdivision and condominium projects
to provide the equivalent amount, set forth herein, to the city or municipal government,
where the housing project is located in compliance with Section 18 of RA 7279.

REPRESEN

a



The amount shall be used exclusively by the concerned LGU for its housing
programs to effectively provide basic services and facilities to the beneficiaries, and
urgently address critical housing and settlement programs.

Moreover, this bill will reduce, if not totally eliminate, many socialized housing
projects that were constructed in far-flung or remote areas but have never been
inhabited because of issues of accessibility, livelihood, and job opportunities. Thus,
many beneficiaries who had been granted of rights to occupy and own the units were
forced to sell them and return back to the metropolis.

While LGUs have crucial mandate in the implementation and completion of the
potential sites for socialized housing, they are commonly restrained by encumbrances
such as lack of fiscal resources and personnel. Further, the duty of the LGUs does not
end with the provision of socialized housing or resettlement areas alone but also with
the delivery of other basic services and facilities such as health, education,
communications, security, recreation, relief and welfare, and livelihood.

In order to effectively implement all efforts to provide affordable, decent
housing and basic services to displaced, underprivileged and homeless citizens, it is
imperative to empower the local government units by allowing them to make use of
other financial resources to support and implement their mandated duties. In such
way, LGUs will no longer be dependent on utilizing their own meager resources in
implementing government's policies and programs.

It is for this purpose that the approval of this bill is earnestly sought.

Fifth District, Cavite


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila
Twentieth Congress
First Regular Session

House Bill No.__ 1268

Introduced by Honorable Roy M. Loyola

AN ACT
AMENDING SECTION 18 OF THE URBAN DEVELOPMENT AND HOUSING ACT
OF 1992, AS AMENDED BY REPUBLIC ACT NO. 10884 OTHERWISE KNOWN AS
THE BALANCED HOUSING DEVELOPMENT PROGRAM AMENDMENTS BY
STRENGTHENING THE SOCIALIZED HOUSING PROJECTS OF THE LOCAL
GOVERNMENT UNITS, AND FOR OTHER PURPOSES

Be it enacted by the Senate and House of Representatives of the Philippines in
Congress assembled:

SECTION 1. Section 18 of Republic Act No. 7279 otherwise known as the “Urban
Development and Housing Act of 1992", as amended by RA 10884, is hereby
amended to read as follows:

"SEC. 18. Balanced Housing Development. — The Program shall include a
system to be specified in the Framework plan whereby owners and/or
developers of proposed subdivision and condominium projects shall be
required to develop an area for socialized housing equivalent to at least fifteen
percent (15%) of the total subdivision area or total subdivision project cost and
at least five percent (5%) of condominium area or project cost, at the option of
the developer, in accordance with the standards as provided by law. Provided,
That proposed socialized subdivision and village projects and proposed
socialized condominium projects shall be exempt from this requirement. For
this purpose, the [Housing and Urban Development Coordinating Council]
DEPARTMENT OF HUMAN SETTLEMENTS AND URBAN DEVELOPMENT
and the National Economic and Development Authority, shall jointly determine
and set separate socialized housing price ceilings for socialized subdivision
and socialized condominium projects which shall be mandatorily reviewed or
revised every two (2) years. The balanced housing development as herein
required may also be complied with by the owners and/or developers
concerned in any of the following manner:

(a) xx;
(b) 0x; or
(0) xx.


27
28
29
30
31
32
33
34
35
36
37
38
39

41
42
43

45
46
47
48
49

51
52
53
54
55
56
57

58
59

61
62
63

65
66
67
68
69
70
71
72

73

74
75

PROVIDED, HOWEVER, THAT IN CASES WHERE THE DEVELOPERS.
OF THE PROPOSED RESIDENTIAL SUBDIVISION AND
CONDOMINIUM PROJECTS MAY OPT TO PAY THE EQUIVALENT
PROJECT COSTS, IN COMPLIANCE TO THE PRECEEDING
PARAGRAPH, IN WHICH CASE, THE DHSUD SHALL AUTHORIZE THE
DEVELOPERS TO PROVIDE THE AMOUNT EQUIVALENT TO AT
LEAST TWENTY-FIVE PERCENT (25%) OF THE FIFTEEN PERCENT
(15%) OF THE TOTAL SUBDIVISION PROJECT COST AND AT LEAST
TWENTY-FIVE PERCENT (25%) OF THE FIVE PERCENT (5%) OF
CONDOMINIUM PROJECT COST TO THE CITY OR MUNICIPAL
GOVERNMENT WHERE THE PROJECT IS LOCATED, TO BE USED
EXCLUSIVELY BY THE CONCERNED LOCAL GOVERNMENT UNIT
FOR ITS SOCIALIZED HOUSING PROGRAMS; PROVIDED, THAT IF
THE CONCERNED LOCAL GOVERNMENT UNIT WHERE THE
PROJECT IS LOCATED DOES NOT HAVE ANY AVAILABLE LAND FOR
THE PURPOSE, THE COMPLIANCE PROJECT SHALL BE OFFERED,
TO A NEAR CITY OR OFF-CITY LOCAL GOVERNMENT UNIT;
PROVIDED, FURTHER, THAT IN CASE THE LOCAL GOVERNMENT
UNIT CONCERNED HAS ITS OWN SOCIALIZED HOUSING PROGRAM
WHICH REQUIRES TO BE COMPLIED WITH BY THE DEVELOPER OR
OWNER OF THE SUBDIVISION OR CONDOMINIUM PROJECT
PURSUANT TO ITS ORDINANCES OR RESOLUTIONS, AND THE COST
1S HIGHER THAN WHAT IS PRESCRIBED UNDER THE PRECEEDING
PARAGRAPH, THE DEVELOPER SHALL BE DEEMED TO HAVE
COMPLIED WITH THIS ACT AND WHATEVER EXCESS INCURRED
THERETO CAN BE CREDITED TO THE CONCERNED DEVELOPER OR
OWNER FOR ITS FUTURE PROJECTS. PROVIDED, FINALLY, THAT
THE LOCAL GOVERNMENT UNIT CONCERNED SHALL LIQUIDATE
THE AMOUNT RECEIVED TO THE DHSUD FOR PROPER AUDITING
AND ACCOUNTING.

FOR THIS PURPOSE, THE CONCERNED LOCAL GOVERNMENT UNIT
SHALL HAVE A TWO-YEAR EXCLUSIVE RIGHT TO UTILIZE THE
AMOUNT PROVIDED BY THE DEVELOPERS FOR ITS OWN
SOCIALIZED HOUSING PROGRAMS. THE LOCAL GOVERNMENT
UNIT’S TWO-YEAR EXCLUSIVE RIGHT SHALL COMMENCE ONCE
THE FUNDS HAVE BEEN DOWNLOADED TO THE CONCERNED
LOCAL GOVERNMENT UNIT. IN THE EVENT OF NATURAL
DISASTERS, CALAMITIES, CRISES, AND OTHER FORTUITOUS
EVENTS THAT ARE BEYOND THE CONTROL OF THE CONCERNED
LOCAL GOVERNMENT UNIT, THE TWO-YEAR EXCLUSIVE PERIOD
SHALL BE EXTENDED TO COVER SUCH PERIOD OF CONTINGENCY.
FAILURE OF THE CONCERNED LOCAL GOVERNMENT UNIT TO
UTILIZE THE AMOUNT FOR ITS OWN SOCIALIZED HOUSING
PROGRAMS WITHIN THE PRESCRIBED PERIOD SHALL RESULT IN
FORFEITURE OF THE EXCLUSIVE RIGHT.

ALL LOCAL GOVERNMENT UNITS THAT HAVE EXISTING HOUSING
PROGRAMS AND ARE HOLDING ANY AMOUNT PROVIDED BY

4


76
7
78
79

80
81
82
83

85

87
88
89
90
91
92
93

95

97

98

99
100
101
102
103
104
105
106
107
108
109
110
ut
112
113
114
115

DEVELOPERS IN COMPLIANCE WITH SECTIONS 18 AND 20 OF
REPUBLIC ACT NO. 7279, AS AMENDED BY REPUBLIC ACT NO.
10884, PRIOR TO THE EFFECTIVITY OF THIS ACT SHALL ALSO
ENJOY THE FOREGOING TWO-YEAR EXCLUSIVE RIGHT.

IN GOVERNMENT INITIATED SOCIALIZED HOUSING PROJECTS, ONCE THE
DEVELOPER HAS BEEN ISSUED WITH A NOTICE TO PROCEED, THE LOCAL
GOVERNMENT UNIT WHERE THE PROJECT IS LOCATED SHALL CAUSE THE
ISSUANCE OF A BUILDING PERMIT. LIKEWISE, ONCE THE REQUIREMENTS OF
THE PROJECT AND THE DEVELOPER HAS BEEN ISSUED WITH A
CERTIFICATE OF ACCEPTANCE BY THE PROJECT PROPONENT, THE LOCAL,
GOVERNMENT UNIT SHALL CAUSE THE ISSUANCE OF A CERTIFICATE OF
ACCEPTANCE.

SEC. 2. Implementing Rules and Regulations. - within ninety (90) days from
the effectivity of this Act, the Department Human Settlements and Urban Development
and its attached agencies shall promulgate a new set of implementing rules and
regulations for the amended sections, consistent with the parameters and standards
set forth in the said sections. Nongovernment organizations and people's
organizations involved in housing rights and urban poor advocacy, as well as the
private sector shall be consulted in the process of drafting these implementing rules
and regulations.

SEC. 3. Report to Congress. — The DHSUD shall submit an evaluation and
accomplishment report to Congress every (2) years after the effectivity of this Act.

SEC. 4. Separability Clause. — If any portion or provision of this Act is held
unconstitutional or invalid, the remaining provisions not affected thereby shall continue
to be in full force and effect.

SEC. 5. Repealing Clause. — All laws, executive orders, proclamations, rules,
regulations and other issuances or parts thereof which are inconsistent with the
provisions of this Act are hereby repealed, amended or modified accordingly.

SEC. 6. Effectivity. — This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in a newspaper of general circulation.

Approved,