TIME: 2/
Republic of the Philippines
HOUSE OF REPRESENTATIVES

Quezon City

NINETEENTH (19th) CONGRESS
First Regular Session

“House Bill No. 7230

Introduced by: Hon. Ma. Victoria Co - Pilar and Hon. Jose Francisco “Kiko”
Benitez, Ph.D.

EXPLANATORY NOTE

Under Section 9, Article XIII of the 1987 Constitution states that “The State
shall, by law, and for the common good, undertake, in cooperation with the
public 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 resettlements areas.
It shall also promote adequate employment opportunities to such citizens. In the
implementation of such program the State shall respect the rights of small
property owners.”

On 24 March 1992, Republic Act (RA) No. 7279, otherwise known as the
Urban Development and Housing Act of 1992, was enacted for the State to
undertake, in cooperation with the private sector, a comprehensive and
continuing Urban Development and Housing Program. Republic Act (RA) No.
10884 or An Act Strengthening the Balanced Housing Development Program
amends RA 7279 including provisions on the establishment of mechanisms for its
implementation, and for other purposes.

Section 10 of RA 7279 as amended by RA 10884 provides for the modes of
land acquisition, while Section 18 mandates that the program shall include a
system to be specified in the Framework plan whereby owners and/or
developers of proposed subdivision and condominium projects housing
development programs shall be required to develop an area for socialized

RECEIVED %
DATEFES 20 mic

\


housing. Further, Section 20 of the same Act provides provisions for the
incentives of private sector participating in Socialized Housing.

Housing is an essential component of human well-being, a necessity that
provides not only physical shelter but also a sense of security, stability, and
community. Access to adequate and affordable housing is a fundamental human
right and is considered an important indicator of a country’s social and economic
development as one of the factors that dictate the quality of life of a citizen. While
the government has been providing socialized housing programs and projects to
informal settler families since the enactment of RA 7279, the increasing demand
for decent housing poses as a throwback in the housing backlog problem in the
country over the past years. This partly reflects the inadequacy of land allocation
for residential projects, configured monitoring body, and the level of private
sector involvement.

In view of continuing a comprehensive Urban Development and Housing
Program, this measure aims to amend Sections 10, 18, and 20 of RA 7279 as
amended by RA 10884 by adding modes of acquiring lands such as community
mortgage program, direct purchase of the government and swiss challenge. The bill
likewise seeks to provide more power to the Housing instrumentalities of the
National Government as a department approach for the review and monitoring
of the Balanced Housing Development with the primary focus on beneficiaries
settling in danger areas. In addition, imposing higher fines and penalties
intended for the development of local Socialized Housing programs where the
project is located. Finally, the bill also provides the manner and more modes of
incentives to the private sector for the purpose of Socialized Housing to
encourage greater private sector participation and further reduce the cost of
housing units for the benefit of the underprivileged and homeless.

In view hereof, the immediate passage of this bill is earnestly sought.

-PILAR J ISCO “KIKO” B. BENI EZ

/presentative Representative
6t District, Quezon City 3! District, Negros Occidental



worvaunaw

oe
12
13
14
15
16
7
18

Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

NINETEENTH (19th) CONGRESS.
First Regular Session

House Bill No, 2230

Introduced by: Hon. Ma. Victoria Co - Pilar and Hon. Jose Francisco “Kiko”
Benitez, Ph.D.

AN ACT
AMENDING SECTIONS 10, 18 AND 20 REPUBLIC ACT NO. 7279,
OTHERWISE KNOWN AS THE URBAN DEVELOPMENT AND HOUSING ACT
OF 1992 AS AMENDED BY REPUBLIC ACT NO. 10884 OTHERWISE KNOWN
AS AN ACT STRENGTHENING THE BALANCED HOUSING DEVELOPMENT.
PROGRAM

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

SECTION 1. Amendatory Provisions ~ The following provisions 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”, are hereby amended:

(a) Section 10 of Republic Act No. 7279 paragraph (b) as amended is hereby
amended as follows:

“The modes of acquiring lands and creation of socialized housing programs and
projects for purposes of this Act shall include, among others, communi
‘mortgage program, land swapping, land assembly or consolidation, land banking,
donation to the government, joint venture agreement, negotiated purchase, direct
purchase of the government, swiss challenge, and expropriation: x x x”

XXX


wevauneunne

10
oe
12
13
14
15
16
7
18
19
20
21
22
23
24
25
26
27
28
29

31
32
33
34
35
36
37
38
39

41
42
43

4s

“For the purpose of socialized housing, government — owned and foreclosed
properties shall be acquired by the local government units, or by the National
Housing—Authority Housing instrumentalities of the National Government
primary through negotiated purchase: Provided, That qualified beneficiaries who
are actual occupants of the land shall be given the right of first refusal. Forfeiture
of lands and properties through delinquency of payments of real property taxes
shall be automatically prioritized for socialized housing sites unless deemed by
the local Sangguniang Bayan to be used for other purposes in accordance with
zonal concerns as mandated by their respective Comprehensive Land Use Plan
and Shelter Plan: Also, that qualified beneficiaries who are actual occupants of
the land shall be given the right of first refusal.

(b) Section 18 of Republic Act No. 7279 paragraph (b) as amended is hereby
amended as follows:

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 housing development
programs shall be required to develop an area for socialized housing
equivalent to at least fifteen percent (15%) of the total subdivision project
area for subdivisions or village and at least five percent (5%) of condominium
or vertical housing project area or project cost, at-the-option-of the-developer,
all of which shall be undertaken in the project site or within the city, or
municipality to which the development is situated, in accordance with the

standards as provided by law: Provided That propend ssilindaubdvision

caine eee ete For this purpose, the Housing-end-Urban
Development Coordinating Couneil Department of Human Settlements and
Urban Development together and its attached agencies, the National
Economic and Development Authority and the Local Government Unit
where the project is located shall jointly determine and set separate socialized
housing price ceilings for socialized subdivision-and-sociatized-condominium
housing projects which shall be mandatorily reviewed or revised every two-2)
five (5) 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:

(@ Development of socialized housing in a new settlement with primary
focus on beneficiaries settling on danger areas as defined in Republic
Act No. 11201 Section 3, Paragraph E

(b) Joint venture Projects for socialized housing with either the local
government units or any of the housing agencies or with another private
developer, or with a non governmental organization engaged in the
provision of socialized housing and duly accredited by the Housing-and

4



wCeVauawnen

10
ca
2
13
14
15
16
7
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43

45

Land-Use-Regulatory Board Department of Human Settlements and
Urban Development and its attached agencies, but if the developer has
failed to complete the development of the project, the owner and/or
developer of the mainsubdivisionoreondominium project shall be
solitarily liable only to the extent of compliance to the balance housing
requirement regardless of the provisions of their joint venture agreement:
oF

(©) Participation in a new project under the community mortgage program
with primary focus on beneficiaries settling on danger areas as defined
in Republic Act No. 11201 Section 3, Paragraph E:

The Housing-and-Land-Use Regulatory Board- Department of Human

Settlements and Urban Development is hereby mandated to submit to
Congress an annual report on the compliance hereof by the owners and/or
developers of subdivision-and- condominium the housing projects.

“Any person violating any provision of this section shall be imposed a fine

of not less than five-hundred—thousand—peses One Million Pesos (P
1,000,000.00), for the first offense; suspension of license to do business

for a period of three-(3}-40-six-(6}-months six (6) months to one (1) year
and a fine of not less than five-hundred-thousend-pesos-(P-S00;000-00)
One Million Pesos (P 1,000,000.00), for the second offense; and
cancellation of license to do business for the third offense and a fine of
not less than Five Million Pesos (P 5,000,000.00); 10 which all fines and
penalties shall be intended for the development of local socialized
housing programs where the project is located.”

(©) Section 20 of Republic Act No. 7279 paragraph (b) as amended is hereby
amended as follows:

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 shop offices in the different regions with emphasis on
highly urbanized cities of the country for the processing, approval and
issuances 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;


Caoyvauawne

10
1
2
13
14
15
16
7
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39

41
42
43

45

In government initiated socialized housing projects, once the
requirements of a developer has been compliant to be issued with a
notice to proceed, the local building official of the local government unit
where the project is located shall also deem the developer, compliant
with the requirements and ordinances governing the issuance of a local
building permit. Likewise, once the requirements of the project and
developer has been compliant to be issued with a certificate of
acceptance, the local building official of the local government unit
where the project is located shall also deem the project and the
developer, compliant with the requirements and ordinances governing
the issuance of a certificate of acceptance.

(c) Simplification of financing procedures upon which the Department of
Human Settlements and Urban Development and its attached agencies
together with the Local Government Units may agree on joint ventures;
and

(4) Exemption from the payment of the following:

(1) Project related income taxes;

(2) Capital gains tax on raw-lands used-for-the-project deemed for the use
of socialized housing:

(3) Value added tax for the project contract concerned

(4) Transfer tax for beth-raw completed projects with issued certificate of
acceptance

(5) Documentary stamp taxes for all the documentary requirements
pertaining to the project

(© Donor’s Tax for lands certified by the local government units to have
been donated for socialized housing purposes.

“Provided, That a socialized housing certification issued by the Housing
and_LandUse-Regulatory-Beard Department Human Settlements and Urban
Development and its attached agencies or @ resolution by the Sangguniang
Bayan that designates or deems an area as a socialized housing project or area
shall be sufficient for the purpose of availment of tax exemption, a lien on the title
of the land, shall be annotated by the Register of Deeds: Provided, furthermore,
That the socialized housing development plan has already been approved by the
appropriate government agencies concerned: Provided, finally, That all the
savings realized by virtue of this provision shall accrue in favor of the
beneficiaries subject to the implementing guidelines to be issued by the Housing


CeVvauneune

10
uw
12
13
14
15
16
7
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35

and—Land—Use-RegitateryBoard Department Human Settlements and Urban

Development and its attached agencies.”

SECTION 2. Implementing Rules and Regulations. — within ninety (90) days
from the effectivity of this Act, the Housing—and—Land—Use—Regulatory—Board
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

SECTION 3. Reporting to Congress — The ChiefExecutive-Officer-of-the
Housing-and—Land—Use-Regulatory Beard Department of Human Settlements and

Urban Development shall submit an evaluation and accomplishment report to Congress
every (2) years after the effectivity of this Act

SECTION 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.

SECTION 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.

SECTION 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,