1 
THIRTEENTH CONGRESS OF THE REPUBLI 
8 
OF THE PHILIPPINES 
1 
First Regular Session 
i 
S E N A T E  
S. No. 
~ 
Introduced by Senator S. R. Osmeiia 111 
EXPLANATORY NOTE 
As part of efforts to provide the masses with decent housing, the government 
continues‘to pursue a mechanism to ensure the high quality of housing programs. 
Section 9 of Article Xlll of the Constitution provides that “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 and resettlement areas.” 
Pursuant to said policy, Republic Act No. 7279, otherwise known as Urban 
Devopment and Housing Act, was enacted in 1992. It aimed to provide decent and 
adequate housing to the poor. Recognizing the limited government resources which 
cannot seem to cope with the growing demand for housing, its authors inserted a 
provision granting a package of incentives to encourage greater private sector 
participation in socialized housing. 
However, conflicting interpretations on the 
coverage of the exem’ption from the payment of documentary stamp tax, lessened 
the efficacy of the law. 
Aside from 
putting emphasis on the need to provide shelter security, 
especially for the poor, as a strategy to alleviate the problem of poverty, -this bill 
vows to generate wider private sector participation in the housing industry. By 
amending RA 7279, it seeks to reduce the cost of socialized housing development 
for developers thereby, making housing units more affordable for millions of 
homeless Filipino families. 
SERGIO OSMENA 111 
Senator 


‘ 
1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
THIRTEENTH CONGRESS OF 
OF THE PHILIPPINE 
First Regular Session 
S E N A T E  
S. No. 
Introduced by Senator S. R. Osmeiia 111 
AN ACT 
AMENDING REPUBLIC ACT NO. 7279, OTHERWISE KNOWN AS THE 
URBAN DEVELOPMENT AND HOUSING ACT OF 1992, AND FOR OTHER 
PURPOSES 
I 
Be it enacted by fhe Senai and House of Representatives of the Philippines in 
SECTION 1. - Sec I 
ion 20 of Republic Act No. 7279, otherwise known as 
Congress assembled: 
the Urban Development and Housing Act of 1992, is hereby amended to read as 
follows: 
“SEC. 20. Incentives for Private Sector Participating in Socialized 
Housing. - To encourage greater private sector participation in socialized 
housing and further reduce the cost of housing units for the benefit of the 
underprivileged and homeless, the following incentives shall be extended 
to the private sector: 
(a) 
Reduction 
and 
simplification 
of 
qualification 
and 
accreditation requirements for participating private developers; 
(b) 
Creation of [one-stop officers in the different] ECONOMIC 
AND SOCIAL HOUSING ONE-STOP PROCESSING CENTERS IN ALL 
THE ADMINISTRATIVE regions of the country for the processing, 
approval and issuance of clearances, permits and licenses: Provided, That 
clearances, permits and licenses shall be issued within ninety (90) days 
from the date of submission of all requirements by the participating private 
developers; 
1 


.
l
 
1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
29 
Simplification of financing procedures; and 
Exemption from the payment of the following: 
Project-related income taxes; 
Capital gains tax on raw lands used for the project; 
Value-added tax for the project contractor concerned; 
Transfer tax for both raw completed projects; [and] 
Donor’s tax for lands certified by the local government units 
to have been donated to socialized housing purposes[.]; 
AND 
DOCUMENTARY STAMP TAX AND 
REGISTRATION 
FEES, 
INCLUDING 
FEES 
REQUIRED 
FOR 
THE 
ISSUANCE OF TRANSFER CERTIFICATE OF TITLES: 
“Provided, That upon application for exemption, a lien on the title of 
the land shall be annotated by the Register of Deeds: Provided, further, 
That the socialized housing development plan has already been approved 
by the appropriate government agencies concerned: Provided, finally, 
That all the savings acquired by virtue of this provision shall accrue in 
favor of the beneficiaries subject to the implementing guidelines to be 
issued by the Housing and Urban Development Coordinating Council. 
“Appropriate implementing guidelines shall be prepared by the 
Department of Finance, in consultation with the Housing and Urban 
Development Coordinating Council, for the proper implementation of the 
tax exemption mentioned in this section within one (I) 
year after the 
approval of this Act. 
“Property owners who voluntarily provide resettlement sites to 
illegal occupants of their lands shall be entitled to a tax credit equivalent to 
the actual non-recoverable expenses incurred in the resettlement, subject 
to the implementing guidelines jointly issued by the Housing and Urban 
Development Coordinating Council and the Department of Finance.” 
2 


1 
SEC. 2. Repealing Clause. - All laws, executive orders, letters of 
2 
instructions, rules and regulations, or provisions thereof which are inconsistent 
3 
with the provisions of this Act are hereby repealed] amended or modified 
4 
accordingly. 
5 
6 
7 
circulation. 
SEC. 3. Effectivity Clause. - This Act shall take effect fifteen (15) days 
after the completion of its publication in at least two (2) newspapers of general 
Approved] 
3