SIXTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Ref;lular Session 
) 
) 
) 
SENATE 
'I ' 
J 
S.B. NO . 
..L~ t 
'13 
JtlL -1 PI :26 
Introduced by SENATOR FERDINAND R. MARCOS, JR. 
Explanatory Note 
The Urban Development and Housing Act of 1992 or the UDHA was 
passed for the primary purpose of, 
"(uplifting) 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, basic services, 
and employment opportunities." To accomplish this purpose, Congress had 
envisioned that the comprehensive and continuing Urban Housing and 
Development Program that would be set up by the law should be, "in cooperation 
with the private sector". True enough, the UDHA declared as one of its policies, 
to "(e)ncourage more effective people's partiCipation in the urban development 
process." 
One of the tools instituted by this landmark legislation to attain the stated 
objectives was the granting of incentives, both fiscal and non-fiscal, to the private 
sector. These incentives may be found in Sections 19, 20, and 32 of the law. 
This bill seeks to clarify the process of the grant of the tax incentives to the 
private sector and their entitlement thereto, as provided for under Section 20 of 
the UDHA. This bill hopes to clarify the roles and functions of the Bureau of 
Internal Revenue, the local government units, and the appropriate housing 
agencies, and strengthen their coordination, on the matter of certifying projects 
and traflsactions that may be covered by and entitled to the said incentives. 
Concomitantly, 
because of the clarified functions 
of and 
strengthened 
coordination between and among the agencies and offices concerned, this bill 
will ultimately achieve the purpose of expediting and rationalizing the registration 
and titling process of the socialized housing units with the Registers of Deeds. 
In view of thereof, the passage of this bill is earnestly requested. 
FERDINAN 
R. M1Rcos, JR. 


SIXTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
) 
) 
) 
SENATE 
SENATE BILL NO. 
1.1.1 
Introduced by Senator FERDINAND R. MARCOS, JR. 
'13 
JUL -1 
P1 :26 
AN ACT AMENDING SECTION 20 OF REPUBLIC ACT NO. 7279, 
OTHERWISE KNOWN AS THE URBAN DEVELOPMENT 
AND HOUSING ACT (UDHA) OF 1992 
Be it enacted by the Senate and the House of Representatives of the 
Philippines in Congress Assembled: 
SECTION 1. Section 20 of Republic Act No. 7279, otherwise known as 
the Urban Development and Housing Act of 1992, is hereby amended, and shall 
read as Ifollows: 
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 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 income taxes; 
2) Capital gains tax on THE SALE, EXCHANGE OR DISPOSITION 
OF raw lands use for the project; 
3) 
Value-added 
tax 
for 
the 
project 
DEVELOPER 
OR 
CONTRACTOR CONCERNED, AS PROVIDED FOR UNDER SECTION 
109 OF REPUBLIC ACT NO. 8424, OTHERWISE KNOWN AS THE 
NATIONAL INTERNAL REVENUE CODE, AS AMENDED [concerned]; 
4) LOCAL t[T]ransfer tax ON THE SALE, DONATION, BARTER 
OR TRANSFER OF [for] both raw and completed projects; and 


5) Donor's tax for [both] lands certified by the NATIONAL 
HOUSING AUTHORITY (NHA) OR local government units to have been 
donated TO THEM FOR RESETTLEMENT AND/OR [for] socialized 
housing purposes. 
(E) TAX CREDITS FOR PROPERTY OWNERS WHO VOLUNTARILY 
, 
PROVIDE RESETTLEMENT TO THE ILLEGAL OCCUPANTS OF THEIR 
F1ROPERTY, WHICH SHALL BE EQUIVALENT TO niE ACTUAL NON-
RECOVERABLE EXPENSES INCURRED IN THE RESETTLEMENT, AS 
CERTIFIED 
BY THE 
HOUSING 
AND 
URBAN 
DEVELOPMENT 
COORDINATING 
COUNCIL 
(HUDCC) 
AND/OR 
THE 
LOCAL 
GOVERNMENT UNIT CONCERNED. 
[Provided, that upon application for exemption, a lien on that 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 (1) 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.] 
FOR PURPOSES OF AVAILING THE TAX INCENTIVES UNDER THIS 
SECTION, IT SHALL BE MANDATORY THAT THE SOCIALIZED 
HOUSING DEVELOPMENT OR THE RESETTLEMENT PLAN, AS THE 
CASE MAY BE, SHALL HAVE FIRST BEEN APPROVED BY THE 
HOUSING AND LAND USE REGULATORY BOARD (HLURB) AND/OR 
THE CONCERNED LOCAL GOVERNMENT UNIT. 
FOR PURPOSES OF ISSUANCE BY THE BUREAU OF INTERNAL 
REVENUE (BIR) AND/OR THE LOCAL GOVERNMENT UNITS OF THE 
TAX 
CLEARANCE 
AND/OR 
THE 
CERTIFICATE 
AUTHORIZING 
REGISTRATION, THE CERTIFICATION BY THE HLURB, THE NHA, 
AND/OR THE CONCERNED LOCAL GOVERNMENT UNIT THAT THE 
PROJECT IS A DULY APPROVED SOCIALIZED HOUSING PROJECT 
OR 
RESETTLEMENT 
SITE 
OR 
DONATED 
FOR 
SOCIALIZED 
PURPOSES, AS THE CASE MAY BE, SHALL BE SUFFICIENT 
GUARANTEE OF THE DUE DILIGENCE OF THE SAID AGENCIES AND 
THE LGU WITH REGARD TO THE STATUS OF A PARTICULAR 
PROJECT, LAND OR BUILDING. SUCH CERTIFICATION SHALL BE 
SUFFICIENT BASIS FOR THE BIR AND/OR THE LGU TO GRANT AND 
ALLOW THE TAX INCENTIVES HEREUNDER AND THEREAFTER 
ISSUE THE TAX CLEARANCE AND/OR CERTIFICATE AUTHORIZING 
REGISTRATION. 


HOWEVER, IN CASES OF TAX-EXEMPT SALE OR DONATION OF 
PROPERTY UNDER THIS SECTION, THE APPROPRIATE REGISTER 
OF 
DEEDS 
SHALL 
CAUSE 
THE 
ANNOTATION 
ON 
THE 
MEMORANDUM OF ENCUMBRANCES OF THE OCTITCTICCT AS 
FOLLOWS: 
'THE ACQUISITION OF THE PROPERTY DESCRIBED IN 
THIS 
TITLE IS 
BY VIRTUE. OF A 
TAX-EXEMPT 
TRANSACTION 
PURSUANT 
TO 
SECTION 
20 
OF 
REPUBLIC ACT NO. 7279, AND IS SUBJECT TO A LIEN 
THAT THE LANDIS SOLDIDONATED ISIARE TO BE 
USED 
EXCLUSIVELY FOR 
SOCIALIZED 
HOUSING 
PURPOSES.' 
FINALLY, ALL THE SAVINGS ACQUIRED BY VIRTUE OF THIS 
PROVISION SHALL ACCRUE IN FAVOR OF THE BENEFICIARIES, 
SUBJECT TO THE IMPLEMENTING GUIDELINES TO BE JOINTLY 
ISSUED BY THE HUDCC AND THE HLURB." 
SECTION 2. Implementing Rules and Revenue Regulations. - The 
appropriate guidelines or revenue regulations shall be jointly prepared by the 
Bureau of Internal Revenue, the Housing and Land Use Regulatory Board and 
the Department of Interior and Local Government, for the proper implementation 
of the tax incentives under this Act, within six (6) months from the approval of this 
amendatory Act. 
SECTION 3. Separability Clause. - The provisions of this Act are hereby 
declared to be separable and if any clause, sentence, provision or section of this 
Act or Its application thereof to any person or circumstance should, for any 
reason, I be held invalid or unconstitutional, such invalidity or' unconstitutionality 
shall not affect the other provisions or application of this Act which can be given 
force and effect. 
SECTION 4. Repealing Clause. - All laws, decrees, charters, executive 
orders, administrative orders, proclamations, rules and regulations, or parts 
thereof insofar as they are inconsistent with the provisions of this Act are hereby 
repealed or modified accordingly. 
SECTION 5. Effectivity. - This Act shall take effect fifteen (15) days after 
completion of publication in the Official Gazette or in a newspaper of general 
circulation. 
Approved,