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Nineteenth Congress BR ui hy
First Regular Session Ae a

House Bill No. 5754

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
oF 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 he
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 to the city or municipal
government, where the housing project is located in compliance with Section
18 of RA 7279. ~

The equivalent 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 aiso 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

HON. ROY M. LOYOLA

Fifth District, Cavite


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

House Bill No.__5754.__

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
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 shal! 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
projects and proposed socialized condominium projects shall be
exempt from this requirement. For this purpose, the Housing and
Urban Development Coordinating Council 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) x,
(b) 200%; or
(0) xx.

“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 FIFTEEN
PERCENT (15%) OF THE TOTAL SUBDIVISION PROJECT
COST AND AT LEAST 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 LGU FOR ITS SOCIALIZED HOUSING
PROGRAMS; PROVIDED FURTHER, THAT THE CONCERNED
LGU HAS AVAILABLE LAND THEREFOR. IN CASES WHERE
THE CITY OR MUNICIPAL GOVERNMENT WHERE THE
PROJECT IS LOCATED CANNOT COMPLY WITH THE ABOVE
REQUISITES, THE DHSUD SHALL AUTHORIZE THE
DEVELOPERS TO OFFER AND PROVIDE THE EQUIVALENT
AMOUNT TO OTHER CITY OR MUNICIPAL GOVERNMENT,
PROVIDED THAT THE CONCERNED LGU CAN COMPLY
THERETO. PROVIDED FURTHER, THAT IN CASE THE LGU
CONCERNED HAS ITS OWN HOUSING PROGRAM WHICH
REQUIRES TO BE COMPLIED BY THE DEVELOPER OR
OWNER OF THE SUBDIVISION OR CONDOMINIUM PROJECT
PURSUANT TO ITS ORDINANCES/RESOLUTIONS, AND THE
COST IS HIGHER THAN WHAT IS PRESCRIBED UNDER THE
PRECEEDING PARAGRAPH, WHATEVER EXCESS
INCURRED THERETO CAN BE CREDITED TO THE SAID
DEVELOPER OR OWNER FOR THEIR FUTURE PROJECTS.
PROVIDED LASTLY, THAT THE LGU CONCERNED SHALL
LIQUIDATE THE AMOUNT RECEIVED TO THE DHSUD FOR
PROPER AUDITING AND ACCOUNTING.”

Section 2. Separability Clause. - \f any provision or part hereof is held
invalid or unconstitutional, the remainder of the law or the provision not
otherwise affected shall remain valid and subsisting.


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Section 3. Repealing Clause. - Any law, presidential decree or
issuance, executive order, letter of instruction, administrative order, rule or
regulation contrary to, or inconsistent with, the provisions of this Act is hereby
repealed, modified or amended accordingly

Section 4. Effectivity. - This Act shall take effect fifteen (15) days after
the completion of its publication in the Official Gazette or in a newspaper of
general circulation.

Approved,