Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

House Bill No. _ 192 §

Introduced by Rep. BERNADETTE “BH” 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 or 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.



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 Visayasand 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
a_ include vertical 1100 sing developments, such as condominium projects, to
help mitigate, if not eradicate 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

BERI IETTE HERRERA-DY


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

4929

House Bill No.
Introduced by Rep. BERNADETTE “BH” HERRERA-DY

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

REPUBLIC ACT NO. 4726 ENTITLED “THE CONDOMINIUM ACT"

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

SECTION 1. Short Title - This Act shall be known as the
“Socialized Housing for Condominium Act of 2019"

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:

"Sec. 26, Developers of proposed condominium projects shall
he required to develop an area for socialized housing equivalent
to atleast 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 Hoard 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;

() _ Joint-venture projects with either the local government
units or any of the housing agencies or

(d) Participation in the community mortgage program.


For purposes of this Act, "socialized housing" shall have
the same meaning as that stated in Section of Republic
Act No. 7270 entitled "Urban Development and Housing
Act of 1992." Similarly, the provisions of said Act on
Socialized Housing, in so far as they are applicable to
carry out the provisions of this section, shall apply
to condominium developers.”

"Sec. 27, Any person who violates the foregoing
provision shall he 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 offenderis 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, 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,