TWG on Regulations and Standards
REVISED IMPLEMENTING RULES AND REGULATIONS TO GOVERN
SECTION 18 OF REPUBLIC ACT NO. 7279 OTHERWISE KNOWN
AS THE URBAN DEVELOPMENT AND HOUSING ACT OF 1992
GUIDELINES FOR SECTION 3 (BALANCED HOUSING DEVELOPMENT COMPLIANCE) OF THE REVISED IMPLEMENTING RULES AND REGULATIONS TO GOVERN SECTION 18 OF REPUBLIC ACT NO. 7279
GUIDELINES FOR SECTION 4.1 (DEVELOPMENT OF NEW SETTLEMENT) OF THE REVISED IMPLEMENTING RULES AND REGULATIONS TO GOVERN SECTION 18 REPUBLIC ACT NO. 7279
GUIDELINES FOR SECTION 4.2 (SLUM UPGRADING) OF THE REVISED IMPLEMENTING RULES AND REGULATIONS TO GOVERN SECTION 18 REPUBLIC ACT NO. 7279
GUIDELINES FOR SECTION 4.3 (JOINT VENTURE WITH EITHER THE LOCAL GOVERNMENT UNITS OR ANY OF THE HOUSING AGENCIES) OF THE REVISED IMPLEMENTING RULES AND REGULATIONS TO GOVERN SECTION 18 OF REPUBLIC ACT NO. 7279
GUIDELINES FOR SECTION 4.4 [PARTICIPATION IN THE COMMUNITY MORTGAGE PROGRAM (CMP)] OF THE REVISED IMPLEMENTING RULES AND REGULATIONS TO GOVERN SECTION 18 OF REPUBLIC ACT NO. 7279
GUIDELINES FOR THE ACCREDITATION OF DEVELOPERS OF SOCIALIZED HOUSING PROJECTS AS PROVIDED UNDER SECTION 5 OF BOARD RESOLUTION NO. 890, SERIES OF 2012, OR THE REVISED IMPLEMENTING RULES AND REGULATIONS TO GOVERN SECTION 18 OF REPUBLIC ACT NO. 7279
GUIDELINES FOR THE ACCREDITATION OF NON-GOVERNMENT ORGANIZATIONS AS PROVIDED UNDER SECTION 5 OF BOARD RESOLUTION NO. 890, SERIES OF 2012, OR THE REVISED IMPLEMENTING RULES AND REGULATIONS TO GOVERN SECTION 18 OF REPUBLIC ACT NO. 7279
REVISED REGISTRATION STATEMENT AND APPLICATIONS FOR ADDITIONAL ANNOTATION OF LICENSE TO SELL OF COMPLIANCE PROJECT, ACCREDITATION OF DEVELOPERS OF SOCIALIZED HOUSING PROJECTS AND NON-GOVERNMENTAL ORGANIZATION
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House Bill No. 5446 proposed by Bagong Henerasyon Party-list Representative Cong. Bernadette Herrera-Dy seeks to amend Section 18 of R.A. 7279 or the Urban Development and Housing Act (UDHA) by requiring condominium developers to be also covered by the 20% balanced housing requirement of law.
In a Senate meeting held last November 22, 2012 with resource persons from both public and private sectors, the Chamber of Real Estate and Builders’ Associations, Inc. (CREBA) once again asserted the inclusion of socialized residential condominiums or medium-rise buildings (MRBs) as an alternative mode of compliance to Sec. 18 of UDHA.
CREBA’s design is to build MRBs in urban areas at a minimum of 20 square meters each and sell them for a maximum ceiling price of Php850,000 per unit or for whichever price will be set by the Housing and Urban Development Coordinating Council (HUDCC) – the highest national housing policy-making body.
For one, while there exists a socialized housing package of Php400,000 under Pag-IBIG loan programs, the spiraling costs of land, labor and materials make it impossible to develop them in Metro Manila and other urban areas. Hence, compliance projects in rural areas abound, but not all of them are occupied.
And while this accounts to some addition in the national housing stock, it does not suffice to answer the demand for affordable housing for the working class in our rapidly developing urban areas nationwide.
Additionally, we are of the strong opinion that compliance projects should be allowed to be located anywhere in the Philippines. This is to prevent any opportunity for compromise with local government units whose exercise of discretionary powers in the issuance of development permits, etc. bears huge impact not only on the over-all project feasibility but also on the developer’s capacity to complete the project on time.
The basis for computing the compliance project for condominiums must also be clearly defined to be 20% of the net saleable area as opposed to total project cost or gross area for horizontal subdivisions.
But the social obligation imposed by law is not without a corresponding obligation on the part of the government. To entice the private sector in investing in socialized MRBs, it must be covered by all the applicable incentives and entitlements for developers under Section 20 of UDHA.
The additional requirement for a BIR ruling for every project that is built must finally be dispensed with as the certification from HLURB shall suffice as proof that the project is classified as socialized housing.
To CREBA’s mind, this additional requirement defeats the very purpose for which the tax incentives were made available: to encourage more players to undertake mass housing projects, and thus increase economic activities -- mass housing being the major pump-primer of the economy.
The additional taxes generated by heightened activity in the construction and real estate industries would also be good for employment generation and the fiscal coffers. It will boost tax collection due to increased development and construction activities and ensure that the money spent on housing permeates widely in the economy and create broader benefits for the people. It is about time to harmonize the seemingly conflicting, unreasonable and overlapping requirements imposed upon an already heavily-taxed and highly-regulated industry.
Still much is to be desired in the enforcement of E.O. 45 which prescribes the period of compliance by concerned agencies (DENR, DAR, DA, DILG/LGUs and attached agencies). More importantly, developers are often left alone to contend with housing-related ordinances of most LGUs that clearly are against the spirit of RA 7279 and which tend to make it difficult for us to comply with the law.
To ensure cohesive implementation, HUDCC must be allowed to be the sole agency to promulgate the implementing rules and regulations once the bill is passed into law. Hence, we also propose to add a new provision under Section 45 of the law penalizing erring government officials with imprisonment and/or removal from office to raise their level of responsibility and accountability.
Building vertical residential communities is timely to start creating opportunities out of the growing scarcity and increasing cost of land in the cities – which remains to be the centre of business activities, employment, livelihood, education and other inevitable basic services - where demand for decent and affordable housing will be constantly at its peak.
Providing mass housing the impetus it deserves will lead to more activities in construction and real estate, which will then redound to the benefit of both the public and private sectors. It is a move that works to the advantage of all stakeholders and, at the very least, deserves the attention and consideration of government.
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The Housing and Land Use Regulatory Board (HLURB) is one of several agencies of government undertaking a revisiting of its policy through the reform of the implementing guidelines governing the modes of compliance to Section 18 of R.A. 7279 or the Urban Development Housing Act (UDHA).
We, in the Chamber of Real Estate & Builders’ Associations, Inc. (CREBA), adhere to our position that any form of alternative compliance should serve to make it easier and attractive for the private sector to comply, and still be able to attain its social objectives. CREBA commends the HLURB for providing developers more avenues to comply with the law, and at the same time effectively uphold its core and crucial mandate to deliver housing units for the marginalized beneficiaries.
Homelessness points to several major factors: urbanization caused by massive migration from rural to urban areas due largely to extreme rural poverty, lack of opportunity, peace and order issues, unemployment, forced evictions and distant relocation, unaffordable housing or the lack of capacity to acquire decent shelter, clamour for basic social services, and list goes on.
Sources from the World Bank report that with an annual growth in urban population of 5.1 percent in the last four decades, the Philippines had one of the highest rates of urban growth in the developing world. Data from the United Nations confirm that about 60 percent of the country’s population is currently urban.
The Greater Metro Manila area has over 12 million people. This accounts for 36 percent of the total urban population. An additional 10 percent of the urban population are situated in the next four largest metropolitan regions as identified by NEDA: Metro Cebu, Metro Davao, Metro Cagayan de Oro and Metro Angeles.
While government and other affected sectors confront the myriad challenges brought about by the concentration of people in the cities in terms of productive employment and production of adequate housing and basic services, it will no longer be enough to merely try to slow the rate of urbanization without improving the system to more productively handle rapid demographic growth.
Among CREBA’s package of proposals for the private sector to efficiently do its share in helping address the staggering housing backlog of over 3.7 million units is to urge government to encourage the construction of socialized and low-cost residential condominiums with a minimum floor area of twenty (20) square meters provided that the project is located in urban or urbanizing areas.
Under this proposal, CREBA invites government to consider this type of development as an alternative mode of compliance to the balanced housing requirement of the UDHA with all the applicable incentives as provided for by existing laws, such as income tax holidays, exemption from VAT, and such other incentives for BOI-registered projects.
Projects may come in either of the following packages: (1) socialized 5-storey walk-up condominiums with a maximum ceiling price of Php750,000.00 per unit; or (2) low-cost 6 to 12-storey condominiums with elevator with a maximum ceiling price Php1.2M per unit.
This type of development particularly targets the urban dwellers who will naturally prefer locations near urban development centres, where walking or short travels from place of residence to work, education, and other purposes is vital to the budget. At the same time, this will provide low-income earners access and opportunity to safe and decent shelter in the city that they can eventually own, for a price that they can afford.
Building vertical residential communities is as timely as it is extremely necessary to start creating opportunities out of the growing scarcity and increasing cost of land in the cities – the centre of business activities, employment, livelihood, education and other inevitable services where demand for decent and affordable housing – as well as the issue of traffic - is at its peak.
With a burgeoning population of close to 100 Million Filipinos as of 2010, which is continuously growing at the rate of 1.9% every year, it is easy to infer the enormity of the demand for social and other basic services in the next few decades.
Along with food and clothing, shelter is considered one of mankind’s most basic needs. But the land under our feet cannot be multiplied to match our needs. To optimize the use of land and multiply its benefits, we must plan ahead and begin building vertical communities where families can grow and thrive as a social unit, now before it’s too late.
In order to realize the effective increase in annual national housing production target of at least 300,000 new houses in all segments annually, however, government must rationalise the incentives program for housing to ensure that all incentives offered by specific agencies are synchronized and are made as easy and practicable to avail of as possible.
To assist the private sector in fulfilling its role in the production and delivery of socialized housing units, the government must perform its mandate as catalyst for growth and national development. It must therefore eliminate red tape, particularly in the Bureau of Internal Revenue (BIR) where documentary requirements are duplicated and provisions of related laws are ignored. This has been one of the biggest stumbling blocks to socialized and low-cost housing delivery.
What is needed is less bureaucracy, quicker release of the necessary licenses and permits, more loanable funds from government financing institutions, better incentives for real estate developers, and a clear identification of lands that may be set aside for residential, agricultural, commercial, industrial, and other equally vital uses that are already governed by various existing laws. #