NINETEENTH CONGRESS  
) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session  
 
) 
HOUSE OF REPRESENTATIVES 
Introduced by Representative Rufus B. Rodriguez 
House Bill No.  _____ 
EXPLANATORY NOTE 
The 1987 Constitution, particularly Section 9 of Article XIII, mandated the State to 
undertake, in cooperation with the private sector, a comprehensive and continuing program of 
urban land reform and housing that would make decent housing and basic services available 
at affordable cost to under privileged and homeless citizens in "urban areas and 
resettlement areas.” In March 1992, Congress enacted Republic Act No. 7279, otherwise 
known as the “Urban Development and Housing Act” or UDHA to put flesh to this 
Constitutional mandate. UDHA required all proponents or developers of residential subdivision 
projects to develop an area for socialized housing equivalent to at least twenty percent of the 
total subdivision area or project cost, at the option of the developer. 
For more than two decades from the enactment of UDHA into law, however, most of 
the socialized housing compliance produced by private developers have been outside the 
urban areas and not within urban areas as primarily mandated by the constitution and 
UDHA. This resulted to the current huge housing crisis in informal settlements in Metro Manila 
and other highly urbanized areas, which requires changes in policies to speed up the 
implementation of housing for the underprivileged, particularly the informal settler families. 
Hence, amendments to R.A. 7279 are hereby proposed as follows: 
1. Considering the very high cost of land in urban areas, this bill proposes the
introduction of direct subsidy to price down the socialized housing cost affordable to 
informal settler families. The current socialized housing price ceiling of Php 
450,000.00 is set and adjusted periodically by the Housing and Urban Development 
Coordinating Council and the National Economic Development Authority. This direct 
subsidy shall be provided primarily by the government from budgetary allocation 
and partly from private sector donations (as also proposed to be introduced in this 
bill) to NGOs/Foundations or to any of the housing agencies engaged in the delivery 
of socialized housing services to informal settler families.  
2. To optimize the utilization of the high cost of urban land, this bill proposes
the recognition by government of residential condominiums in the form of medium 
rise buildings up to five levels as acceptable and preferred alternative in the 
production and delivery of socialized housing compliance by private developers.  
3. To fast track the production and delivery of socialized housing to all
intended socialized housing beneficiaries particularly within urban areas, the extension 
of fiscal incentives to private developers such as exemptions from project related 
income tax, value added tax, donor's tax, among others, is proposed by amendment 
in this bill to be facilitated without undue delay by the Bureau of Internal Revenue 
(BIR). In this regard, the application for availment of such fiscal incentives by 
developers is proposed to be acted upon by the BIR within a maximum period of thirty 
working days from submission of complete documents.  
March 16, 2023
7:00 pm
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Finally, this bill seeks to amend certain definitions of terms in order to minimize conflicts 
in interpretation and to ensure that the benefits of affordable socialized housing is redirected 
to the most needy, the underprivileged and homeless citizens within urban centers referred to 
as the urban poor or informal settler families.  
In view of the foregoing explanations, approval of this bill is earnestly sought. 
  RUFUS B. RODRIGUEZ 


NINETEENTH CONGRESS 
) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
) 
HOUSE OF REPRESENTATIVES 
Introduced by Representative Rufus B. Rodriguez 
House Bill No.  _____ 
AN ACT 
AMENDING REPUBLIC ACT NO. 7279, ENTITLED URBAN DEVELOPMENT AND 
HOUSING ACT OF 1992, ESTABLISHING THE PROGRAMS AND MECHANISMS TO 
ENSURE THAT SOCIALIZED HOUSING UNITS PRODUCED ARE RE-DIRECTED 
TOWARDS ITS PRIORITY BENEFICIARIES PARTICULARLY THE UNDERPRIVILEGED 
HOMELESS IN HIGHLY URBANIZED AREAS REFERRED TO AS INFORMAL SETTLER 
FAMILIES WHICH HAVE REMAINED WITHOUT BENEFIT UNDER RA 7279 EVEN AFTER 
MORE THAN TWENTY YEARS OF ITS IMPLEMENTATION 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
SEC. 1. Short Title. - This act shall be known as the “Inclusive Socialized Housing Act”. 
SEC. 2. Amendatory Provisions. – For purposes of this Act, certain provisions of Republic Act 
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 to make socialized housing more pro-poor and more relevant 
to the affordability of homeless and underprivileged families living in informal settlements 
within highly urbanized areas as follows: 
1. Article I, Section 2. is amended to read as follows:
“Section 2. Declaration of State Policy and Program Objectives. – It shall be 
the policy of the State to undertake, in cooperation with the private sector, a 
comprehensive and continuing Urban Development and Housing Program, 
hereinafter referred to as the Program, which shall: 
a) Uplift the conditions of the underprivileged and homeless citizens in HIGHLY
[urban] URBANIZED OR URBANIZABLE areas and in resettlement areas by
making available to them decent housing at affordable cost, PROVIDING FOR
THE PURPOSE, A CONTINUING GOVERNMENT DIRECT AND INDIRECT
SUBSIDY PROGRAM FROM ANNUAL BUDGETARY ALLOCATION
PARTICULARLY FOR URBAN POOR INFORMAL SETTLER FAMILIES, basic
services, and employment opportunities;”
2. Article I, Section 3 (a) is amended to read as follows:
“Section 3. Definition of Terms - For purposes of this Act : 
a) “Affordable cost” refers to the most reasonable price of land and shelter
based on the needs and financial capability of Program beneficiaries and
appropriate financing schemes REALIZED BY WAY OF GOVERNMENT
DIRECT OR INDIRECT SUBSIDY TO PRICE DOWN THE COST OF
SOCIALIZED 
HOUSING 
UNITS 
AND 
LOWER 
THE 
MONTHLY
AMORTIZATION AFFORDABLE TO PROGRAM BENEFICIARIES;”
3. Article I, Section 3 (r) is amended to read as follows:
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“r) “Socialized housing” refers to housing programs and projects covering 
houses and lots, home lots only OR RESIDENTIAL CONDOMINIUM UNITS 
undertaken by the Government or the private sector for the underprivileged and 
homeless citizens WITH SELLING PRICES SET AT LOWER LEVELS FOR 
HOUSES AND LOTS OR LOT ONLY AND AT HIGHER LEVEL FOR 
CONDOMINIUM UNITS IN URBANIZED AREAS AS DETERMINED EVERY 
THREE (3) YEARS BY THE HOUSING AND URBAN DEVELOPMENT 
COORDINATING COUNCIL AND THE NATIONAL ECONOMIC AND 
DEVELOPMENT AUTHORITY, which shall include sites and services 
development, long-term financing, liberalized terms on interest payments, and 
such other benefits in accordance with the provisions of this Act;” 
 
4. Article I, Section 3 (t) is amended to read as follows: 
“t) Underprivileged and homeless citizens” refers to the beneficiaries of this Act 
and to individuals or families residing in HIGHLY URBANIZED [urban] and 
urbanizable areas INCLUDING INFORMAL SETTLERS whose income or 
combined household income falls within the poverty threshold as defined by 
the National Economic and Development Authority and who do not own 
housing facilities. This shall include those who live in makeshift dwelling units 
and do not enjoy security of tenure;” 
 
5. Article 1, Section 3 (y) is added to read as follows: 
y) "COST OF RAW LAND" - REFERS TO THE ZONAL VALUE OF THE RAW 
LAND PREVAILING AT THE LOCALITY AT THE TIME OF APPLICATION OF 
LICENSE TO SELL FOR THE SUBDIVISION PROJECT. 
 
6. Article V, Section 18 is amended to read as follows: 
“Sec.18. Balanced Housing Development. - The Program shall include a 
system to be specified in the Framework plan whereby developers of proposed 
subdivision projects UNDER PRESIDENTIAL DECREE 957 shall be required 
to 
DIRECTLY 
INVEST 
IN 
ITS 
OWN 
PROJECT 
THE 
[develop] 
DEVELOPMENT OF an area for socialized housing equivalent to at least 
twenty percent (20%) of the total LAND subdivision area or total subdivision 
LAND AND LAND DEVELOPMENT project cost, at the option of the developer, 
within ANY RESIDENTIAL ZONE IN THE COUNTRY [the same city or 
municipality, whenever feasible], and in accordance with the standards set by 
the Housing and Land Use Regulatory Board and other existing laws. The 
balanced housing development as herein required may also be complied with 
by the developers concerned in any of the following manner: 
a) BY WAY OF INVESTMENT EQUIVALENT TO AT LEAST TWENTY 
PERCENT (20%) OF THE TOTAL LAND SUBDIVISION AREA OR TWENTY 
PER CENT (20%) OF TOTAL SUBDIVISION LAND AND LAND 
DEVELOPMENT PROJECT COST, AT THE OPTION OF THE DEVELOPER 
AND SUCH INVESTMENT SHALL BE APPLICABLE TO: 
(i) Joint-venture projects with [the] ANY OF the local government units, 
[or] any of the housing agencies OR ANY SOCIALIZED HOUSING 
DEVELOPER ACCREDITED BY THE HLURB, 
(ii) IN SOCIALIZED HOUSING BONDS ISSUED TO THE DEVELOPER 
BY ANY OF THE HOUSING AGENCIES AS AUTHORIZED BY THE 
HOUSING 
AND 
URBAN 
DEVELOPMENT 
COORDINATING 
COUNCIL; 
b) BY WAY OF DONATION EQUIVALENT TO TEN PER CENT (10%) OF THE 
TWENTY PERCENT (20%) OF THE MAIN SUBDIVISION LAND AND LAND 
DEVELOPMENT PROJECT COST, AND SUCH DONATION SHALL BE 
APPLICABLE TO: 


(i) DONATIONS TO THE NATIONAL HOUSING AUTHORITY FOR 
Slum upgrading or renewal of areas for priority development either 
through zonal improvement programs or slum improvement and 
resettlement programs; 
(ii) DONATIONS TO THE SOCIAL HOUSING AND FINANCE 
CORPORATION FOR Participation in the community mortgage 
program; 
(iii) DONATIONS TO ANY LOCAL GOVERNMENT UNIT OR 
DEPARTMENT OF EDUCATION FOR THE CONSTRUCTION OF 
PUBLIC SCHOOL BUILDINGS AND RELATED EDUCATIONAL 
FACILITIES; 
(iv) DONATIONS TO ANY NON-GOVERNMENT ORGANIZATION 
(NGO) OR FOUNDATION ENGAGED IN THE DEVELOPMENT OF 
SUBSIDIZED SOCIALIZED HOUSING PROJECTS FOR THE 
UNDERPRIVILEGED AND HOMELESS, PROVIDED SUCH NGOS 
OR FOUNDATIONS ARE DULY ACCREDITED/ CERTIFIED BY THE 
DEPARTMENT OF SOCIAL WELFARE AND DEVELOPMENT, 
PHILIPPINE COUNCIL FOR NGO CERTIFICATION AND THE 
HOUSING AND LAND USE REGULATORY BOARD. 
 
7. Article V, Section 20 is amended to read as follows: 
“Section 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 offices in the different 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 THE 
PERIOD PRESCRIBED UNDER EXECUTIVE ORDER NO. 45, SERIES OF 
2001, ENTITLED: “PRESCRIBING TIME PERIODS FOR ISSUANCE OF 
HOUSING RELATED CERTIFICATIONS, CLEARANCES AND PERMITS, 
AND IMPOSING SANCTIONS FOR FAILURE TO OBSERVE THE SAME” 
AND UNDER THE APPLICABLE PROVISIONS OF REPUBLIC ACT NO. 
9485, OTHERWISE KNOWN AS THE “ANTI-RED TAPE ACT OF 2007”; [ 
ninety (90) days from the date of submission of all requirements by the 
participating private developers]; 
c) Simplification of financing procedures; and 
d) Exemption from the payment of the following: 
1) Project-related CORPORATE OR income taxes, INCLUDING CREDITABLE 
WITHHOLDING TAX (CWT) ON INCOME DIRECTLY REALIZED FROM 
DEVELOPMENT AND IMPROVEMENT OF SOCIALIZED HOUSING SITES, 
SLUM AREAS, RESETTLEMENT AREAS, AND/OR CONSTRUCTION AND 
SALE OF SOCIALIZED HOUSING TO QUALIFIED BENEFICIARIES ; 
2) Capital gains tax OR VALUE ADDED TAX AND CREDITABLE 
WITHHOLDING TAX on raw lands used for the project; 
3) Value-added tax for the project [contractor] concerned; 
4) Transfer tax for both raw and completed projects; and 
5) Donor’s tax for both lands certified by the local government units to have 
been donated for socialized housing purposes. 
Provided, 
that 
upon 
application 
for 
CERTIFICATE 
AUTHORIZING 
REGISTRATION (CAR) [exemption] WITH THE BUREAU OF INTERNAL 
REVENUE (BIR), FOR INDIVIDUALLY TITLED/DEVELOPED LOTS, THE 


SUPPORTING DOCUMENT REQUIRED SHALL BE A COPY OF THE 
MOTHER TITLE/S COVERING THE RAWLAND WITH LIEN ANNOTATED 
THEREIN THAT THE RAWLAND SHALL BE DEDICATED TO THE 
DEVELOPMENT OF A SOCIALIZED HOUSING PROJECT. ON THE OTHER 
HAND, UPON APPLICATION FOR A CERTIFICATE AUTHORIZING 
REGISTRATION WITH THE BIR FOR RAWLAND COVERED BY MOTHER 
TITLE/S, THE SUPPORTING DOCUMENT REQUIRED SHALL BE A 
NOTARIZED UNDERTAKING BY THE APPLICANT DEVELOPER THAT THE 
RAWLAND SUBJECT OF THE APPLICATION SHALL BE DEDICATED TO 
THE DEVELOPMENT OF A SOCIALIZED HOUSING PROJECT AND SUCH 
SHALL BE ANNOTATED AS A LIEN ON THE LAND TITLE UPON TRANSFER 
IN THE NAME OF THE DEVELOPER, PROVIDED FURTHER THAT IN BOTH 
OF THE FOREGOING CASES, THE BIR SHALL ACT TO APPROVE OR 
DISAPPROVE THE APPLICATION WITHIN A MAXIMUM PERIOD OF 
THIRTY (30) DAYS FROM DATE OF RECEIPT OF THE APPLICATION. IF 
DISAPPROVED, A FULL EXPLANATION IN WRITING SHALL BE 
INDICATED IN THE LETTER OF DISAPPROVAL. FAILURE TO ACT ON 
SUCH APPLICATIONS WITHIN THE PRESCRIBED PERIOD OF TIME 
SHALL SUBJECT THE RESPONSIBLE OFFICER OF THE BIR TO 
SANCTIONS AS PRESCRIBED UNDER THE ANTI-RED TAPE ACT AND ITS 
IMPLEMENTING RULES AND REGULATIONS. 
 
SEC. 3. Implementing Rules and Regulations. - Within sixty (60) days from the effectivity of 
this Act, the Housing and Land Use Regulatory Board shall promulgate the appropriate 
Implementing Rules and Regulations necessary to effectively implement the provisions of this 
Act. 
 
SEC. 4. Separability Clause. - If for any reason, any provision of this Act is declared invalid or 
unconstitutional, the remaining provisions not affected thereby shall continue to be valid and 
in full force and effect. 
 
SEC. 5. Repealing Clause. - All laws, decrees, executive orders, proclamations, rules and 
regulations, and other issuances, or part or parts thereof, which are inconsistent with the 
provisions of this Act are hereby repealed or modified accordingly. 
 
SEC. 6. Effectivity Clause. - This Act shall take effect fifteen (15) days after the completion of 
its publication in the Official Gazette or in at least two (2) newspapers of general circulation. 
 
Approved,