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Republic of the Philippines
E Y ou: 15 10 2016

HOUSE OF REPRESENTATIVES

Quezon City TIME:
SEVENTEENTH CONGRESS
First Regular Session 8 vinci
ynev

HOUSE BILL NO. 4381

Introduced by Rep. Winston “Winnie” Castelo

EXPLANATORY NOTE

The housing shortage in the Philippines persistently haunts the government,
especially in urban areas. With the enactment of Republic Act No. 7279, otherwise
known as the Urban Development and Housing Act (UDHA) of 1992, the national
government declared it as a policy to undertake a comprehensive and continuing Urban
Development and Housing Program which was viewed to uplift the conditions of the
underprivileged and homeless citizens in urban areas and in resettlement areas by
making available to them decent housing at affordable cost.

The law is an embodiment of the mandate of the Constitution in Article XIII,
Section 9, which provides:

“Section 9. 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
under-privileged and homeless citizens in urban centers and
resettlement areas. xxx"

To encourage greater private sector participation in land and housing reform,
Section 18 of the UDHA, as recently amended by Republic Act No. 10884, provided for
a “Balanced Housing Development Program,” requiring developers of proposed
subdivision and condominium projects 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 set by the
Housing and Land Use Regulatory Board and other existing laws.”

While this amendment expanded the balanced housing development program to
include condominium projects, it removed the requirement that the compliance project
be constructed within the same city or municipality where the proposed subdivision or
condominium project is to be constructed. The local government units are thus left



powerless to ensure that the intent of the program -that the homeless and the urban
poor are not left out whenever a subdivision project for the more fortunate citizens is
built - is fulfilled. It likewise runs counter to the avowed policy of the UDHA to improve
the capability of local government units in undertaking urban development and housing
programs and projects.



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. 4381

Introduced by Rep. Winston “Winnie” Castelo

AN ACT AMENDING REPUBLIC ACT NO. 7279, AS AMENDED BY REPUBLIC ACT
NO. 9397 AND REPUBLIC ACT NO. 10884, OTHERWISE KNOWN AS THE URBAN
DEVELOPMENT AND HOUSING ACT OF 1992

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

SECTION 1.Section 18 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," is hereby amended to
read as follows:

“SECTION 18. Balanced Housing Development. — The Program shall
include a system to be specified in the Framework plan whereby
developers of proposed subdivision and condominium projects shall 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, WITHIN THE SAME CITY OR
MUNICIPALITY, 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
PROVIDED, FURTHER, THAT IF THE CONSTRUCTION OF THE
COMPLIANCE PROJECT WITHIN THE SAME CITY OR MUNICIPALITY
IS NOT FEASIBLE, THE CONCERNED CITY OR MUNICIPALITY
SHALL DETERMINE WHERE IT WOULD BE CONSTRUCTED. For this
purpose, the Housing and Urban Development Coordinating Council and
the National Economic Development Authority shall jointly determine and
set separate socialized housing price ceilings for socialized subdivision
and socialized condominium project 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) Development of socialized housing in a new settlement;

“(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 nongovernmental organization engaged
in the provision of socialized housing and duly accredited by the
Housing and Land Use Regulatory Board, but if the developer has
failed to complete the development of the project, the owner and/or
developer of the main subdivision or condominium project shall be
solidarily liable only to the extent of compliance to the balanced
housing requirement regardless of the provisions of their joint
venture agreement; [or]

“(c) Participation in a new project under the community mortgage program;

“(D) SLUM UPGRADING OR RENEWAL OF AREAS FOR PRIORITY
DEVELOPMENT EITHER THROUGH ZONAL IMPROVEMENT
PROGRAMS OR SLUM IMPROVEMENT AND RESETTLEMENT
PROGRAMS WITHIN THE CITY OR MUNICIPALITY WHERE THE
PROPOSED SUBDIVISION OR CONDOMINIUM PROJECT IS
DEVELOPED; OR

“(E) DEVELOPMENT OF EDUCATION FACILITIES, HEALTH
FACILITIES, PRODUCTIVITY/LIVELIHOOD CENTERS, AND
OTHER BASIC AMENITIES AND FACILITIES AS PROVIDED IN
SECTIONS 21 AND 22 OF RA 7279 IN EXISTING SOCIALIZED
HOUSING PROJECTS.

"The Housing and Land Use Regulatory Board is hereby mandated to submit
to congress an annual report on the compliance hereof by the owners and/or
developers of subdivision and condominium projects.

"Any person violating any provision of this section shall be imposed a fine of
not less than five hundred thousand pesos (P500,000.00), for the first offense;
suspension of license to do business for a period of three (3) to six (6) months
and a fine of not less than five hundred thousand pesos (P500,000.00), for the
second offense; and cancellation of license to do business for the third offense."

SECTION 2. Separability Clause. If any provision or part hereof is held invalid or
unconstitutional, the remainder of the provision not otherwise affected shall remain valid
and subsisting.

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 after fifteen (15) days following
its publication in at least two (2) newspapers of general circulation

Approved,