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    of 36
    Renu ofthe Pilinpines Office of the President HOUSING AND LAND USE REGULATORY BOARD ALAl Lupong Nangangasiwa sa Pabahay at Gamit ng Lupa HLURB MEMORANDUM CIRCULAR NO. ©7% Series of 2018 (_Wary 02, 2018) To : ALL CONCERNED FROM : THE COMMISSIONER AND CHIEF EXECUTIVE OFFICER SUBJECT GUIDELINES FOR THE REVISED IMPLEMENTING RULES AND REGULATIONS TO GOVERN SECTION 18 OF REPUBLIC ACT NO. 7279, AS AMENDED BY REPUBLIC ACT NO. 10884, OTHERWISE KNOWN AS “BALANCED HOUSING DEVELOPMENT PROGRAM AMENDMENTS”. Pursuant to the Housing and Land Use Regulatory Board (HLURB) Resolution No. 965, Series of 2017, or the Revised Implementing Rules and Regulations (IRR) to Govern Section 18 of Republic Act No. 7279, otherwise known as the Urban Development and Housing Act of 1992 (UDHA), as amended by Republic Act No. 10884, otherwise known as “Balanced Housing Development Program Amendments’, the following guidelines are hereby issued: RULE! GENERAL PROVISIONS Section 1. Objective. These guidelines aim to provide a uniform application, interpretation, usage, and implementation of Board Resolution No. 965, Series of 2017. Section 2. Scope of Application. These guidelines shall apply to developers of main subdivision projects complying with Section 18 of UDHA, or the balanced housing development requirement, as amended by Republic Act No. 10884, otherwise known as “Balanced Housing Development Program Amendments’, by developing an area for a socialized housing project equivalent to at least fifteen percent (15%) of the total subdivision project area or the total subdivision project cost and at least five percent (5%) of condominium project area or condominium project cost, at the option of the developer, as implemented under the Board Resolution No. 965, Series of 2017. Proposed subdivision projects or residential condominium projects to be sold within the prevailing price ceiling for socialized housing, as may be jointly determined by the Housing and Urban Development Coordinating Council (HUDCC) and National Economic and Development Authority (NEDA), shall be exempt from the coverage of this Rules, Page 1 of 3 ‘Sunnymede IT Center, 1614 Quezon Ave., Brgy. South Triangle, Quezon City ‘wwew.hlurb.gov.ph iLIPINO} RULE I COMPLIANCE Section 3. Modes of Compliance. Developers of proposed residential subdivision 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, at the ‘option of the developer. Developers of proposed residential condominium projects shall be required to develop an area for socialized housing equivalent to at least five percent (5%) of the condominium area or project cost, at the option of the developer. In all cases, the compliance project shall be developed in accordance with the standards set by HLURB and other existing laws. Section 4. Preferred Manner of Compliance 44 At the option of the developer, the developer of the main subdivision project shall develop a socialized subdivision housing project: 4.1.1 With an area equivalent to at least fifteen percent (15%) of the total subdivision project area of the main subdivision project; or 4.41.2. With a cost equivalent to at least fifteen percent (15%) of the total subdivision project cost of the main subdivision project. The compliance socialized housing project shall be located within the main subdivision project. ‘Such option of the mode of compliance shall be annotated within six (6) months from the issuance of the License to Sell on the Original Certificate of Title (OCT) and Transfer Certificates of Title (TCTs) of the project and specifying thereof the actual lot numbers, block numbers, unit numbers of the units allocated for sale under the socialized housing price ceiling. The developer shall submit a certification from the Register of Deeds as to the completeness of the requirements submitted for annotation. Failure to comply with the annotation requirements mentioned above within six months shall cause the automatic suspension of the License to Sell and issuance of a Cease and Desist Order against the developer. If no compliance has been made after one year from issuance of the License to Sell, there shall be cancellation of the License to Sell and criminal prosecution for selling without license shall be commenced by HLURB Task Force PD 957 against the developers and responsible officers of the corporation. Further, the Regional Officer shall cause the annotation with the Registry of Deeds, with notice to the local government unit concerned. Page 2 of 36. 42 At the option of the developer, the developer of the main condominium project shall develop a socialized condominium housing project: 4.2.1. With an area equivalent to at least five percent (5%) of the total condom project area; or 4.2.2 With a cost equivalent to at least five percent (5%) of the total condominium project cost. The compliance socialized condominium project shall be located within the main condominium project. Such option of the mode of compliance shall be annotated within six (6) months from the issuance of the License to Sell on the Original Certificate of Title (OCT), Transfer Certificates of Title (TCTs) and Condominium Certificates of Title (CCTs) of the project and specifying thereof the actual lot numbers, block numbers, unit numbers of the units allocated for sale under the socialized housing price ceiling. The developer shall submit a certification from the Register of Deeds as to the completeness of the requirements submitted for annotation. Failure to comply with the annotation requirements mentioned above within six (6) months shall cause the automatic suspension of the License to Sell and issuance of a Cease and Desist Order (CDO) against the developer. If no compliance has been made after one (1) year from issuance of the License to Sell, there shall be cancellation of the License to Sell and criminal prosecution for selling without license shall be commenced by HLURB Task Force PD 957 against the developers and responsible officers of the corporation. Further, the Regional Officer shall cause the annotation with the Registry of Deeds (RD), with notice to the focal government unit (LGU) concerned, In case of expansion or alteration of the main project resulting to an increase in the total subdivision area or condominium area or total subdivision project cost or condominium project cost, the developer thereof shall be required additional compliance to be computed based on the increase in the total subdivision project area or condominium area or total subdivision project cost or condominium project cost. In all cases, the compliance project shall be developed in accordance with the standards and requirements set by HLURB and R.A. 9267, as the case may be and other applicable laws and regulations. The compliance project shall be subject to the minimum design standards promulgated pursuant to Batas Pambansa Big. 220 (BP 220), HLURB rules and regulations, and other related laws. Page 3 of 36. Section 5. Other Manners of Compliance. The developers may choose any of the following manners of compliance, subject to the pertinent guidelines, requirements, and procedures that may be promulgated by HLURB: 5A Development of Socialized Housing in a New Settlement 5.1.1. The developer of the main subdivision project shall develop a socialized ‘subdivision housing project with a cost equivalent to at least fifteen percent (15%) of the total subdivision project cost of the main subdivision project. 5.1.2 The developer of the main condominium project shall develop a socialized condominium housing project or socialized subdivision housing project with a cost equivalent to at least five percent (5%) of the condominium project cost. 5.1.3 All the OCT, TCTs, and CCTs of the new settlement project shall be annotated that it is strictly to be sold within the socialized housing price ceiling specifying the actual lot numbers, block numbers, unit numbers of the units allocated for sale; ‘Such option of the mode of compliance shall be annotated within six (6) months from the issuance of the License to Sell on the OCT, TCTs and CCTs of the project and specifying thereof the actual lot numbers, block numbers, unit numbers of the units allocated for sale under the socialized housing price ceiling. The developer shall submit a certification from the Register of Deeds as to the completeness of the requirements submitted for annotation. Failure to comply with the annotation requirements mentioned above within six (6) months shall cause the automatic suspension of the License to Sell and issuance of a Cease and Desist Order against the developer. If no compliance has been made after one (1) year from issuance of the License to Sell, there shall be cancellation of the License to Sell and criminal prosecution for selling without license shall be commenced by HLURB Task Force PD 957 against the developers and responsible officers of the corporation. Further, the Regional Officer shall cause the annotation with the Registry of Deeds, with notice to the local government unit concemed. in case of expansion or alteration of the main project resulting to an increase in the total subdivision area or condominium area or total subdivision project cost or condominium project cost, the developer thereof shall be required additional compliance to be computed based on the increase in the total subdivision project area or condominium area or total subdivision project cost or condominium project cost. In all cases, the compliance project shall be developed in accordance with the standards and requirements set by HLURB and R.A. 9267, as the case may be and other applicable laws and regulations. The compliance project shall be subject to Page 4 of 36 5.2 the minimum design standards promulgated pursuant to Batas Pambansa Big. 220 (BP 220), HLURB rules and regulations, and other related laws. The Chief Executive Officer of the HLURB or his designated officer shall first approve all socialized housing projects or programs that will be utilized as compliance of the balanced housing development before developers of the main project can use it as compliance; Provided that, approval or denial thereof shall be given by the Chief Executive Officer of the HLURB within ten (10) working days upon receipt by the Office of the Chief Executive Officer of the HLURB, subject to existing laws and regulations. Grounds for the denial of the utilization as compliance of the socialized housing projects or programs shall be specified. The registration of socialized housing projects or programs shall be in accordance with the parameters set in Section 7 of this Memorandum Circular. Joint-Venture Projects. Any form of joint venture agreement or participation shall be annotated to the OCT, TCTs, or CCTs of the socialized housing project with geotagging in the approved Bureau of Lands Locational Monument (BLLM). Such option of the mode of compliance shall be annotated within six (6) months from the issuance of the License to Sell on the OCT, TCTs and CCT's of the project and specifying thereof the actual lot numbers, block numbers, unit numbers of the units allocated for sale under the socialized housing price ceiling. The developer ‘shall submit a certification from the Register of Deeds as to the completeness of the requirements submitted for annotation. Failure to comply with the annotation requirements mentioned above within six (6) months shall cause the automatic suspension of the License to Sell and issuance of a Cease and Desist Order against the developer. If no compliance has been made after one (1) year from issuance of the License to Sell, there shall be cancellation of the License to Sell and criminal prosecution for selling without license shall be commenced by HLURB Task Force PD 957 against the developers and responsible officers of the corporation. Further, the Regional Officer shall cause the annotation with the Registry of Deeds, with notice to the local government unit concemed. For purposes of entering into a JV with a local government unit (LGU) or any of the housing agencies, the developer may choose any of the following manners of compliance: 5.2.1 Joint Venture with the Local Government Units. The developer of a main project may be allowed to comply with Section 18 of RA 7279 (UDHA) as amended by RA 10884 by entering into a joint venture with a local government unit for: Page 5 of 36 aS 5.2.1.1 The development of socialized housing program or socialized housing project. This joint venture shall be embodied in a notarized joint venture agreement (JVA) signed by both parties which shall specify: a. The amount of contribution of the developer of the main project to the JVA; b. The total project cost of the socialized housing project undertaken; c. The particular block numbers and lot numbers or unit numbers of the housing project being allotted to the main project under the current JVA, if only a portion of the housing project is being utilized as compliance for the main project; and d. The corresponding geotagging of the location of the project for easy verification. Any excess blocks, lots, or units of the socialized housing project not specified in accordance with Section 5 par 2.1.1.b above in the current JVA shall not be considered for compliance with Section 18 of UDHA unless the same are specified in another JVA or other JVAs with the same or other main project developers submitted upon filing of the Application for Certificate of Registration and License to Sell (CR/LS) of the socialized housing project. Considering that the cost incurred by the developer under paragraph 5.2.1.1.b of this section is recoverable upon the payment of the socialized housing units, the total cost of the socialized housing project shall be equivalent to five percent (5%) of the project cost of the main condominium project and fifteen percent (15%) of the project cost of the main subdivision project. In case of expansion or alteration of the main project resulting to an increase in the total subdivision area or condominium area or total subdivision project cost or condominium project cost, the developer thereof shall be required additional compliance to be computed based on the increase in the total subdivision project area or condominium area or total subdivision project cost or condominium project cost. 5.2.2 Joint Venture with any of the Housing Agencies. The developer of a main project may be allowed to comply with Section 18 of RA 7279 (UDHA) as amended by RA 10884 by entering into a joint venture with any of the housing agencies for: Page 6 of 36 5.2.2.1 The development of socialized housing program or socialized housing project. This joint venture shall be embodied in a notarized joint venture agreement (JVA) signed by both parties which shall specify: a. The amount of contribution of the developer of the main project to the JV/ b. The total project cost of the socialized housing project undertaken; . The particular block numbers and lot numbers or unit numbers of the housing project being allotted to the main project under the current JVA, if only a portion of the housing project is being utilized as compliance for the main project; and d. The corresponding geotagging of the location of the project for easy verification. Any excess blocks, lots, or units of the socialized housing project not specified in accordance with paragraph 5.2.2.1.c above in the current JVA shall not be considered for compliance with Section 18 of UDHA unless the same are specified in another JVA or other JVAs with the same or other main project developers submitted upon filing of the Application for Certificate of Registration and License to Sell (CRILS) of the socialized housing project. Considering that the cost incurred by the developer under paragraph 5.2.2.1 above is recoverable upon the payment of the socialized housing units, the total cost of the socialized housing project shall be equivalent to five percent (5%) of the project cost of the main condominium project and fifteen percent (15%) of the Project cost of the main subdivision project. In case of expansion or alteration of the main project resulting to an increase in the total subdivision area or condominium area or total subdivision project cost or condominium project cost, the developer thereof shall be required additional compliance to be computed based on the increase in the total subdivision project area or condominium area or total subdivision project cost or condominium project cost. age 7 of 36 5.2.3. Joint Venture with Another Private Socialized Housing Developer for: 5.2.3.1 5.2.3.2 The development of socialized housing program or socialized housing project by its subsidiary of the main developer. Provided that, the mother company owns at least fifty-one percent (51%) of the subsidiary. Considering that the cost incurred by the developer under paragraph 5.2.3.1 above is recoverable upon the payment of the socialized housing units, the total cost of the socialized housing project shall be equivalent to five percent (5%) of the project cost of the main condominium project and fifteen percent (15%) of the project cost of the main subdivision project. The development of socialized housing program or socialized housing project by a socialized housing developer. The developer of the main project shall be allowed to comply with Section 18 of RA 7279 (UDHA) as amended by RA 10884 through a joint venture with a socialized housing developer provided that such joint venture is entered into only after the developer of the ‘main project has filed an application for development permit for its main project This joint venture shall be embodied in a notarized joint venture agreement (JVA) signed by both parties which shall specify: a. The amount of contribution of the developer of the main project to the JV/ b. The total project cost of the socialized housing project undertaken; c. The particular block numbers and lot numbers or unit numbers of the housing project being allotted to the main project under the current JVA, if only a portion of the housing project is being utilized as compliance for the main project; and d. The corresponding geotagging of the location of the project for easy verification Any excess blocks, lots, or units of the socialized housing project not specified in accordance with paragraph 5.2.3.2.c above in the current JVA shall not be considered for compliance with Section 18 of UDHA unless the same are specified in another JVA or other JVAs with the same or other main project developers submitted Page 8 of 36 upon filing of the Application for Certificate of Registration and License to Sell (CRILS) of the socialized housing project Provided, that if the developer of the compliance project as provided under paragraph 5.2.3 hereof shall fail to complete the development of the project, the developer of the main project shall be solidarily liable with the private socialized housing developer to the extent of compliance to the balanced housing development, regardless of the provision in the joint venture agreement. 5.2.4 Joint Venture with a Non-Government Organization (NGO) Engaged in n of Socialized Housing for: The development of socialized housing program or socialized housing project. The developer of the main project shall be allowed to comply with Section 18 of RA 7279 (UDHA) as amended by RA 10884 through a joint venture with a socialized housing developer provided that such joint venture is entered into only after the developer of the main project has filed an application for development permit for its main project This joint venture shall be embodied in a notarized joint venture agreement (JVA) signed by both parties which shall specify: a. The amount of contribution of the developer of the main project to the JVA; b. The total project cost of the socialized housing project undertaken; ¢. The particular block numbers and lot numbers or unit numbers of the housing project being allotted to the main project under the current JVA, if only a portion of the housing project is being utilized as compliance for the main project; and d. The corresponding geotagging of the location of the project for easy verification. Any excess blocks, lots, or units of the socialized housing project not specified in accordance with paragraph 5.2.4.1.c above in the current JVA shall not be considered for compliance with Section 18 of UDHA unless the same are specified in another JVA or other JVAs with the same or other main project developers submitted upon filing of the Application for Certificate of Registration and License to Sell (CR/LS) of the socialized housing project. Page 9 of Se 5.3. Participation in a New Project under the Communi Provided, that if the developer of the compliance project as provided under paragraph 5.2.4.1 hereof shall fail to complete the development of the project, the developer of the main project shall be solidarily liable with the NGO to the extent of compliance to the balanced housing development, regardless of the provision in the joint venture agreement. Considering that the cost incurred by the developer under paragraph 5.2.4.1 of this section is recoverable upon the payment of the socialized housing units, the total cost of the socialized housing project shall be equivalent to five percent (5%) of the project cost of the main condominium project and fifteen percent (15%) of the project cost of the main subdivision project. Mortgage Program (CMP) through Land Development in a CMP Project. The developer of the main project ‘shall participate in or contribute to a CMP project wherein the cost of its participation or contribution shall be equivalent to at least fifteen percent (15%) of the total subdivision project cost of the main subdivision project or five percent (5%) of the total condominium project cost of the main condominium project. In case of expansion or alteration of the main project resulting to an increase in the total subdivision area or condominium area or total subdivision project cost or condominium project cost, the developer thereof shall be required additional compliance to be computed based on the increase in the total subdivision project area or condominium area or total subdivision project cost or condominium project cost. Considering that the cost incurred by the developer under paragraph 3 of this section is non-recoverable, the computation of the required value of participation, for purposes of compliance, shall be in the amount equivalent to at least twenty five (25%) percent of the total project cost of the socialized housing project in order to be credited the entire socialized housing project or program. For purposes of participating in the non-salable components of a CMP, the developer may choose any of the following: 5.3.1. Providing a parcel of land to a CMP project; 5.3.2 Land development or housing or building construction in a CMP project; or 5.3.3 Provision or development of right-of-way or access to roads or public transportation lines, or provision or upgrading of amenities, facilities or other forms of development in a CMP project. Page 1001 3h 54 The developer of the main project may be allowed to comply with Section 18 of UDHA under paragraphs 5.3.1, 5.3.2 or 5.3.3 hereof by participating in or contributing to a CMP project. The participation in or contribution to a CMP project shall be embodied in a notarized Memorandum of Agreement (MOA) between the developer and the authorized representative of the homeowner's association of the CMP project and a certification issued by SHFC that the project is under the CMP. The MOA shall specify the amount of participation in or contribution of the developer of the main subdivision project to the CMP project and the corresponding geotagging of the location of the project for easy verification. The developer of the main project shall be allowed to participate in or contribute only to a CMP project with a Homeowners’ Association (HOA) that is currently in good standing with both HLURB and SHFC. in all instances, compliance shall be subject to the rules, policies, and guidelines of the SHFC on CMP. Participation through Investment. Participation based on a percentage of the amount of investment required to undertake a new settlement for socialized housing project applicable as follows: 5.4.1. Through a third party for the implementation of land development, installation of water utility, or power utility; or 5.4.2 Construction, through a third party, of non-salable and non-recoverable housing projects on land owned by the government or donated private land such as housing for AFP personnel, public housing, rehabilitation of calamity- stricken communities, housing for street children, indigent elderly and people with disability or other types of projects. Considering that the cost incurred by the developer under paragraphs §.4.1 and 5.4.2 above are non-recoverable, the computation of the required value of participation, for purposes of compliance, shall be in the amount equivalent to at least twenty five (25%) percent of the total project cost of the socialized housing project in order to be credited the entire socialized housing project or program. The developer participating under this provision shall enter into a Memorandum of ‘Agreement with the HLURB, HUDCC and any Shelter Agency or Local Government Unit as proof of participation. The socialized housing developer shall submit to HLURB a proposed socialized housing project or program for HLURB evaluation and approval within the parameters set in Section 6 of this Memorandum Circular. The amount of participation required for socialized housing compliance shall be deposited by the private developer, together with the HLURB Regional Officer, in an Page 11 of: x 5.5. Purch escrow trust account with Pag-lbig Fund or any commercial bank, if Pag-ibig Fund is unavailable and such funds shall be subject to release to the third party contractor accredited by the HLURB in accordance with the terms and conditions of a work order or construction agreement. Upon remittance by the developer of its participation in escrow with the Pag-Ibig Fund or any commercial bank, if Pag-ibig Fund is unavailable, as enumerated in the Memorandum of Agreement, a Provisional Certificate of Compliance to the socialized housing requirement shall be issued in its favor. A Final Certificate of Compliance shall be issued in favor of the developer upon completion of the construction or installation intended for the remitted participation in escrow with the Pag-ibig Fund or any commercial bank, if Pag-ibig Fund is unavailable indicating the specific construction or installation with the corresponding geotagging of the location of the project/installation for easy verification. Any form of joint venture agreement or participation shall be annotated to the OCT, TCTs or CCTs of the socialized housing project with geotagging in the approved Bureau of Lands Locational Monument (BLLM). or Subscription of “Asset-Backed Securities”. The purchase or subscription of "Asset-Backed Securities” issued or conveyed by any of the housing agencies for the purpose of raising funds for the development of new socialized housing projects, subject to the maximum amount to be set by the HUDCC and National Economic and Development Authority (NEDA). The actual purchase price of the “Asset-Backed Security’ shall be evidenced by an official receipt issued by the issuing shelter agencies which shall be reflected on the face of the Asset-Backed Security. Asset-Backed Securities must be made in accordance with existing laws. Upon registration by the main developer of its subscription/purchase of the Asset- Backed Security, a Provisional Certificate of Compliance to the socialized housing requirement shall be issued in its favor by the HLURB. A final Certificate of Compliance shall be issued in favor of the main developer upon completion of the construction of the socialized housing project funded by the asset-backed security, with the corresponding geotagging of the location of the project for easy verification. Considering that the cost incurred by the developer under paragraph 5 above is recoverable upon maturity of the issued bonds with payment of the prescribed interest, the actual subscription cost of the bond, as evidenced by the official receipt issued by the issuing Shelter Agency, shall be equivalent to five percent (5%) of the project cost of the main condominium project and fifteen percent (15%) of the project cost of the main subdivision project. Section 6. Registration of Socialized Housing Projects or Programs Page 12 of 6.1 Documentary Requirements for Approval of Socialized Housing Projects or Programs. The developers of the main project shall submit to the Regional Officer the following requirements for their compliance project or program: 6.1.1 Certified true copy of the Development Permit, Certificate of Registration and License to Sell of the Compliance Project if the project is for sale 6.1.2 Joint Venture Agreement (JVA)/Memorandum of Agreement (MOA) signed by both parties. 6.1.3 Title of the compliance project with annotation of the JVAMOA and geotagging in the approved Bureau of Lands Locational Monument (BLM) 6.1.4 Total Project Cost of the Main Project and the Compliance Project or Program. 6.1.5 If the compliance is a Socialized Housing Program, description of the socialized housing program including methodology, work program and appropriate goverment permits necessary to implement the program. 6.1.6 If the socialized housing program is under the BALAI program, a certificate of approval from the Housing and Urban Development Coordinating Council. 6.2 Criteria in the Evaluation for Approval or Denial. The Regional Officer shall review and evaluate the proposed socialized housing project or program to be used as compliance after the recommendation by the technical working group (TWG). The TWG shall be composed of at least 3 members to be headed by the Head of PRLD. The said Regional Officer shall complete the task in ten working (10) days and recommend to the Chief Executive Officer its approval or denial. 6.3. Approval or Denial of the Socialized Housing Project or Program as Compliance. The approval or denial of the Chief Executive Officer of the HLURB or his designated officer shall be made in writing within ten (10) working days upon receipt by the Office of the Chief Executive Officer. In case the socialized housing project or program will be denied, the ground/s for denial will be stated in the letter. Section 7. Computation and Allowable Combination of Compliance. If the socialized housing project will not be equivalent to at least fifteen percent (15%) of the total subdivision area or total subdivision project cost of the main subdivision project or at least five percent (5%) of the condominium area or condominium project cost, it shall not be considered as full compliance. In such case, the developer may combine one manner of compliance with other allowable manners. However, the developer of the main project shall not be allowed to use a combination of project area and project cost as basis for computation of a single compliance. (Sec. 6 of BR No. 965, S. 2017) Page 13 of 36 Section 8. Future or Subsequent Utilization of a Compliance Project. 8.1. Future Utilization. A developer may develop a socialized housing project as, compliance for its future main project/s. 8.2 Subsequent Utilization. A developer may develop a socialized housing project in excess of the required cost of its main project and utilize the excess thereof for the ‘same developer's other main projects. In both cases, such future or subsequent utilization shall likewise be declared in the application form for Certificate of Registration and License to Sell (CRILS) of the compliance project. A ledger shall also be maintained by the HLURB Central office maintaining an inventory of the total cost of compliance project vis-a-vis the total cost of the main subdivision projects of the developer. Future or subsequent utilization of any excess blocks, lots or units of a socialized housing project, as the subject of a joint venture agreement (JVA), may only be availed of by main project developers as parties of the JVA from the time of the filing of the Application of, Certificate of Registration and License to Sell (CR/LS) until the issuance thereof, of the socialized housing project. Section 9. Minimum Design Standards. The compliance project shall be subject to the minimum design standards promulgated pursuant to Batas Pambansa Big. 220 (BP 220), HLURB rules and regulations, and other related laws. Section 10. Location of Compliance Project. A compliance project in a new settlement shall be located in the same city or municipality where the main project is located, if feasible. The location of the compliance project, indicating its main project, shall be specified via geotagging for easy verification. Section 11. Computation of Compliance. If the compliance socialized residential project is located within the main residential subdivision project, the computation for the compliance of the fifteen (15%) of the project area or cost of the main subdivision project shall be based on the total saleable residential area or cost of the main subdivision project. If the compliance socialized residential project is located within the main residential condominium project, the computation for the compliance of the five (5%) of the project area or cost of the main condominium project shall be based on the total saleable residential area or cost of the main condominium project. If the compliance socialized residential project is located in a new settlement, the computation for the compliance of fifteen (15%) of the project cost of the main subdivision project shall be based on the total saleable cost of the main subdivision project vis-a-vis. the total saleable cost of the compliance socialized residential project. Page 14 of x If the compliance socialized residential project is located in a new settlement, the ‘computation for the compliance of five (5%) of the project cost of the main condominium project shall be based on the total saleable cost of the main condominium project vis-8-vis, the total saleable cost of the compliance socialized residential project. ‘See Annex A for sample computation of a compliance project for subdivision/condominium projects. Section 12. Completion of Compliance Project. The compliance project shall be completed within one year from the date of the issuance of the License to Sell for the compliance project or such other period of time as may be fixed by HLURB in accordance with its rules and guidelines. Further, every owner or developer shall construct and provide the facilities, improvements, infrastructures and other forms of development, including water supply and electrical facilities, which are offered and indicated in the approved project plans, brochures, prospectus, printed matters, letters or any form of advertisement. The Time of Completion shall follow Board Resolution No. 926, Series of 2016. Section 13. Liability of Developers. The developer of the main project shall be liable for the full completion of the compliance project and such developer shail not be considered compliant with the balanced housing development requirement until the complete development of the compliance project. if any administrative sanctions and penalties for non-development have been imposed on the compliance project, a Cease and Desist Order (CDO) shall be issued against the developer of the main project. In the event that any socialized housing developer has been issued a CDO or that any project that has been used as compliance has been found to have a violation on the issued CDO by the regional field office, the violation should be reported to the supervising commissioner and that whatever liability or penalty on the CDO should be applied to the main developer as well RULE Ill APPLICATION FOR CERTIFICATE OF REGISTRATION AND LICENSE TO SELL AND ANNOTATIONS Section 14. Certificate of Registration and License to Sell. The main project and its ‘compliance project shall be issued separate Certificate of Registration (CR) and License to Sell (LS), subject to the procedures and documentary requirements under the existing implementing rules and regulations (IRR) of Presidential Decree No. 957 (PD 957) or Batas Pambansa Big. (BP) 220, as the case may be. However, in case the main subdivision project and the compliance project are covered or included ‘in a single verified survey or subdivision plan, and issued with only one Page 15 of 36. development permit, only one CR shall be issued covering both the main subdivision and compliance projects. Section 15. Application for Certificate of Registration and License to Sell of the Project. The developer shall submit a copy of the LS of the compliance project with the required annotations in accordance with the subsequent sections hereof, in addition to the documents required to be submitted upon the filing of application for CRILS of the main project in accordance with the existing IRR under PD 957 or BP 220. However, if the LS of the compliance project is issued by a different regional field office (RFO) of HLURB, a certified true copy thereof is required. Section 16. Application for Certificate of Registration and License to Sell of Main Project Utilizing a Previously Declared Compliance Project. The developer registering a new main project which will utilize a previously declared compliance project for future or subsequent utilization shall first submit the original LS of the compliance project to the regional field office that issued it for the annotation of the following new or additional items: 16.1 The name and location of the new main project with the correspon thereof, 1g geotagging 16.2 If only a portion of the socialized housing project is being utilized as compliance for the main project, the particular block numbers, lot numbers and unit numbers of the socialized housing project being allotted as compliance for the new main project and the total cost of such blocks, lots and units of the socialized housing project; and 16.3 The available balance for future or subsequent utilization in terms of remaining area or cost and number of lots or units. If the main project is to be registered and licensed in another regional field office, the developer shall submit therein a certified true copy of the LS of the previously declared compliance project with the required new or additional annotations as above-stated. Section 17. Application for Certificate of Registration and License to Sell of the Compliance Project. In addition to submitting the documents required upon the filing of application for CRILS of the compliance project in accordance with the existing IRR under BP 220, the developer shall indicate the following information in the application for CR/LS: 17.1 The name and exact location of the main project with the corresponding geotagging thereof; and 17.2. The total subdivision or condominium project cost, of the main project. ‘Any new socialized housing program undertaken by a developer under the BALAI program of HUDCC, shall have the same registration for approval by the Chief Executive Officer of HLURB or his designated officer before the same can be used as a compliance project. Page 16 of 36 ‘Such compliance projects shall be subject to HLURB rules and guidelines, as may be issued pursuant thereto. A Provisional Certificate of Compliance to the socialized housing requirement shall be issued in its favor by the HLURB. A final Certificate of Compliance shall be issued in favor of the main developer upon completion of the construction of the socialized housing Project, with the corresponding geotagging of the location of the project for easy verification. Section 18, Application for Certificate of Registration and License to Sell of the Compliance Project to be Developed by a Subsidiary for Future or Subsequent Utilization. If the socialized housing project to be registered is likewise intended for subsequent utilization, the developer shall indicate the following information in the application for CRILS: 18.1. The name and exact location of the current main project, with the corresponding geotagging thereof; 18.2 The total subdivision or condominium project cost of the current main project; 18.3 The particular block numbers and lot numbers or unit numbers of the socialized housing project being allotted as current compliance with the corresponding total cost; and 18.4. The available balance for subsequent utilization in terms of remaining cost. If the socialized housing project to be registered is intended for future utilization, such intention shall likewise be indicated in the application for CR/LS. Section 19. Publication. Upon receipt of the Notice to Publish from the regional field office, the developer shall cause the publication of the notice of filing of registration statement and the posting of billboard notices at the sites of both the main and compliance projects. In addition to the requirements of PD 957 and its IRR or the IRR of BP 220, the notice of filing of registration statement shall likewise include the follo 19.1. For the main project: 19.1.1. The name and location of the compliance project with the corresponding geotagging; and 19.1.2. The particular block numbers and lot numbers or unit numbers of the socialized housing project being allotted as current compliance, if only a portion of the socialized housing project is being utilized as compliance for the main project. 19.2. For the compliance project: Page 17 of 36 19.2.1 The name and location of the main project, with the corresponding geotagging; and 19.2.2 The particular block numbers and lot numbers or unit numbers of the socialized housing project being allotted as compliance, if only a portion of the socialized housing project is being utilized as compliance for the main project. See Annex B - Notice of Filing of Registration Statement for the Main Project Section 20. Posting of Billboard Notices. The billboard notices required by the IRRs of PD 957 and BP 220 shall be posted at the sites of both the main project and the compliance project, and both shall contain the same information as in the notice of filing of registration statement. The billboard notices for the main project and the compliance project shall be posted until their respective LS are issued. See Annex C - Billboard Notice and Annex D - Affidavit of Posting of Billboard Notice for ‘the main project. Section 21. Submission of Affidavits of Publication and Posting. The developer shall ‘submit the Affidavit of Publication executed by the publisher and the Affidavit of Posting of Billboard Notice to the regional field office where the projects are registered. ‘Section 22. Annotations and Issuance of the Certificate of Registration and License to Sell of the Compliance Project. Upon submission of all of the required documents for registration and licensing of the compliance project, the regional field office shall prepare its CRILS and the developer shall cause the annotation of the following on the OCT’s, TCT's and CCT's and on the LS of: 22.1. The compliance project: 22.1.1 The name and location of the main project and its corresponding geotagging; 22.1.2. The total saleable subdivision or condominium project cost of the main project depending on the manner of compliance. 22.1.3. The particular block numbers and lot numbers or unit numbers of the socialized housing project being allotted as current compliance; and 22.1.4 The restriction on the price celling of the compliance project to be sold by the developer and the right of recourse of the buyer to demand for reimbursement with payment of damages and interest for payments made in excess of the mandatory price ceiling upon the sale by the developer to qualified beneficiaries thereof; 22.2. The compliance project being registered for subsequent utilization: Page 18 of 36 22.2.4 22.2.2 22.2.3 22.24 22.2.5 The name and location of the current main project; The total saleable subdivision or condominium project cost of the current main project depending on the manner of compliance. The particular block numbers and lot numbers or unit numbers of the socialized housing project being allotted as current compliance The restriction on the price ceiling of the compliance project to be sold by the developer and the right of recourse of the buyer to demand for reimbursement with payment of damages and interest for payments made in excess of the mandatory price ceiling upon the sale by the developer to qualified beneficiaries thereof; and The available balance for subsequent utilization in terms of remaining cost and number of lots or units. If the regional field office finds everything complete and in order, it shall approve and release the CRILS of the compliance project. Section 23. Annotations and Issuance of the Certificate of Registration and License to Sell of the Main Project. Upon submission of all of the required documents for registration and licensing of the main project, the regional field office shall prepare its CRILS and the developer shall cause the annotation of the following on its LS, TCT's, CCT's and OCT: 23.1 The name and location of the compliance project, with the corresponding geotagging; 23.2 The CR and LS number of the compliance project and date of its issuance; 23.3. The total subdivision saleable project cost of the socialized subdivision project or the total condominium saleable project cost of the socialized saleable condominium project, depending on manner selected; and 23.4. If only a portion of the socialized housing project is being utilized as compliance for the main project, the particular block numbers and lot numbers or unit numbers of the socialized housing project being allotted as compliance and the total cost of such block numbers and lot numbers or units of the socialized housing project. If the regional field office finds everything complete and in order, it shall approve and release the CRILS of the main project. Page 19 of 36 RULEIV MONITORING, SANCTIONS AND REMEDIES Section 24. Monitoring. Both the main project and the compliance project shall be subject to the regular monitoring activity of the regional field office of the abovementioned projects, the supervising Commissioner and the Chief Executive Officer. The developer of the main project and the compliance project shall allow the inspection of the documents required by the officers conducting the monitoring as long as such is within a working day and during working hours. Section 25. Suspension or Revocation of License to Sell. The LS of the main project shall be suspended or revoked and a Cease and Desist Order (CDO) shall be issued against its developer in case the LS of the compliance project is suspended or revoked in accordance with existing HLURB substantive and procedural rules, on the ground, among others, of non-completion of development of the compliance project within the period fixed by HLURB. Any order of suspension or revocation issued against the compliance project shall be reported, within five (5) working days from the issuance of the said order, by the regional field office where the compliance project is registered to the regional field office where the main project is registered in order that appropriate sanctions may be imposed on the main project, the supervising Commissioner of the regional field office and to the Chief Executive Officer. The regional field office may lift the CDO upon: 25.1 Reinstatement of the LS of the compliance project; or 25.2. Submission of proof of a difference full compliance by the developer without prejudice to the liabilities that the developer may have incurred in the development of the original compliance project. In the event that any socialized housing developer has been issued a CDO or that any project that has been used as compliance has been found to have a violation on the issued CDO by the regional field office, the violation should be reported to the supervising Commissioner and the Chief Executive Officer and that whatever liability or penalty on the CDO should be applied to the main developer as well Section 26. Sanctions. The imposition of fines and other administrative sanctions shall be in accordance with the schedule and guidelines promulgated by HLURB. Section 27. Effect of Non-Completion. The application for the issuance of CRILS of a developer for a new main project anywhere in the Philippines shall not be accepted or shall be denied if any of its compliance projects for any of its main projects has not been completed within the period fixed by HLURB. Page 20 of 36 Section 28. Evaluation. The Chief Executive Officer may from time to time send evaluation forms to the recipient buyers of the compliance socialized housing residential units or compliance residential condominium units of the main developers and shall collate the responses thereof and report the same to Congress in accordance with Section 4 of RA. 10884. RULE V TRANSITORY, SEPARABILITY AND EFFECTIVITY SECTION 29. Transitory Provision. 29.1 All residential subdivision and residential condominium projects with development permit, certificate of registration and license to sell issued upon and after the effectivity of Republic Act No. 10884 or August 16, 2017 shall be covered by the amendments introduced by Section 2 (b); 29.2. All new residential subdivision and new residential condominium projects with applications for approval of development permit, preliminary and locational clearance, certificate of registration and license to sell, filed with the local government unit or with HLURB upon and after the effectivity of Republic Act No. 10884, or August 16, 2017 shall be covered by the amendments introduced by Section 2 (b) thereof, 29.2 All existing residential subdivision or residential condominium projects with application filed with the local government unit or HLURB for expansion or alteration resulting to an increase in the total project area or total project cost of the original residential subdivision or residential condominium projects shall likewise be ‘covered by the amendments introduced by Section 2 (b) of Republic Act No. 10884. Developer/s and NGOS who have been granted accreditation prior to the effectivity of these guidelines shall request for a new certificate of accreditation from HLURB, provided that it shall submit a list of all the socialized housing projects it has undertaken as compliance by a main developer with proof of the completion thereof issued by the regional field office where the compliance project is located. The said list shall state the exact address of the project, with geotagging for easy verification. If the compliance project is through a JV agreement, the JV agreement should be submitted Failure on the part of the developer/s and NGO to submit a list of all the socialized housing projects it has undertaken as a compliance by a main developer with proof of the ‘completion thereof or upon findings by the HLURB that any or all of the socialized housing projects undertaken by the developer or NGO concerned, has not been completed or cannot be located, shall be a ground for the blacklisting of the developer and NGO. Page 21 of 36 Section 30. Repealing Clause. All memoranda, circulars, guidelines and similar official issuances mandating the guidelines for Board Resolution No. 965, Series of 2017, or the Revised Implementing Rules and Regulations (IRR) to Govern Section 18 of Republic Act No. 7279, otherwise known as the Urban Development and Housing Act of 1992 (UDHA), as amended by Republic Act No. 10884, otherwise known as “Balanced Housing Development Program Amendments that are inconsistent herewith are hereby repealed Section 31. Separability Clause. The provisions of these guidelines are hereby declared separable and, in the event that any provision herein is declared null and void, the validity of all other provisions shall not be affected thereby. Section 32. Effectivity Clause. These guidelines shall take effect immediately. For strict compliance and implementation. LLoyD enniten A.LAO Chief Executive Officer and Commissiongttes Page 220 36 ANNEX A ‘SAMPLE COMPUTATION OF A COMPLIANCE PROJECT FOR SUBDIVISION/CONDOMINIUM PROJECTS COMPUTATION FOR SOCIALIZED HOUSING COMPLIANCE WITHIN THE MAIN PROJECT A. MAIN SUBDIVISION PROJECT By Area, where: Main Subdivision Project Total Subdivision Area (TSA) = GLA + HFA - Gross Land Area (GLA) = total project land area, = Housing Floor Area (HFA) = aggregate floor area of all housing units Socialized Housing Requirement (15% of TSA) = (GLA+ HFA) x0.15 (in square meters) ‘Sample Computation for Main Subdivision Project: Gross tand Area (GLA) = 15,000sq.m Housing Floor Area (HFA) = 100 units with 50.sa. m. floor area per unit 5,000 sq. m. Total Subdivision Area (TSA) = 15,000 + 5,000 = 20,000'sq. m. Socialized Housing Requirement (SHR) = 20,000 sq. m. x 0.15 - Land Area Cost (LAC) = the raw land cost based on Zonal Vale at the time of application - Land Development Cost (LDC) - Housing Construction Cost (HCC) Total Subdivision Project Cost = (LAC + LDC + HCC) Socialized Housing Requirement (15% of total subdivision project cost) = (LAC + LDC + HCC) x 0.15 (in?) Pag6 23 of 3 Sample Computation for Main Subdivision Project: Land Area Cost (LAC) = (15,000 sq. m) x (®2,000 per sq. m. as per Zonal Value) 230,000,000 Land Development Cost (LDC) = (15,000 sq. m.) x (P1,000 per sq. m.) = 15,000,000 Housing Construction Cost (HCC) = (100 units) x (50 sq. m. floor area per unit) x (P15,000 per sq. m. construction cost) = 975,000,000 Total Subdivision Project Cost = ®30,000,000 + ®15,000,000 + ®75,000,000 120,000,000 Socialized Housing Requirement (SHR) = 120,000,000 x 0.15 = 18,000,000 Total Socialized Housing Requirement = 18,000,000 B, MAIN CONDOMINIUM PROJECT i. By Area, wher Main Condominium Project - Gross Land Area (GLA) ~ Total Floor Area of Condominium (TFA, residential) © Total Building Area (TBA) = Total Construction Building Area © Total Residential Area (TRA) = aggregate floor area of residential units (saleable area) © Total Commercial Area (TCA) = aggregate floor area of commercial units (saleable area) (TBA) x (TRA) TFA,residentlal = aa rcay~ (TCA) Condominium Project Area = GLA + TFA,residential Socialized Housing Requirement (5% of condominium project area) = (GLA + TFA,residential) x 0.05 (in square meters) ‘Sample Computation: Page 24 of 36, Case 1: Project ABC Residential Condominium (Purely Residential) Assumptions: Gross Land Area Total Floor Area of Condominium (purely residential) ‘No. of Units of Socialized Housing Aggregate Floor Area of Residential Computations: sen a (PBAYX TRA) TFA residential = Tray = tregy ~ (TCAD }00 x 13,000 = “73,0004 0 0,000 s9.m. Condominium Project Area = 1,000 + 20,000 =21,0005q. m. Socialized Housing Requirement 1,000 sq. m.) x (0.05) 1,050.59. m. Total Socialized Housing Requirement = 1,050 sq. m. Case 2: Project ABD Residential and Commercial Condominium (Mixed Use) Assumptions: Gross Land Area Total Floor Area of Condominium Aggregate Floor Area of Residential Aggregate Floor Area of Commercial Computations: (TBA) x (TRA) TRA) + (TCA) 20,000 x 13,000 73,000 + 1,000 TFA,residential (ea) = 1,000 75572 sq.m. Condominium Project Area = 1,000 + 17,572 Total Socialized Housing Requirement = 928.60 sq. m. li, By Cost, where: Page 25 of 36. Main Condominium Project - Land Area Cost (LAC) = the raw land cost based on Zonal Vale at the time of application - Land Development Cost (LOC) - Building Construction Cost (BCC) Construction cost per square meter (CC) Total Building Area (TBA) = Total Construction Building Area Total Residential Area (TRA) = aggregate floor area of residential Total Commercial Area (TCA) = aggregate floor area of commercial (TBA) x (TRA) BCC,residential = | a rca — (TCA)| x CC Condominium Project Cost = LAC + LDC + BCC,residential Socialized Housing Requirement (5% of condominium project cost) = (LAC + LDC + BCC,residential) x 0.05, fin ®) Sample Computation: Case 1: Project ABC Residential Condominium (Purely Residential) Land Area Cost = (1,000 sq. m.) x (P6,000 per sq. m. as per Zonal Value) 16,000,000 Land Development Cost (if applicable) Total Floor Area of Condominium = 20,000 sq. m. Aggregate Floor Area of Residential = 13,000 sq. m. Construction Cost 115,000 per sq. m.* Computations: _ [read x crea) 7 sccrestenit = [REE ec ce 20,000 x 13,000 ~ Prana re~ 6350 300,000,000 Condominium Project Cost = 6,000,000 + ®1,000,000 + 300,000,000 307,000,000 Socialized Housing Requirement = (307,000,000) x (0.05) 15,350,000 Total Socialized Housing Requirement = 15,350,000 Page 26 of 36 ASS Case 2: Project ABD Residential and Commercial Condominium (Mixed Use) Land Area Cost 1,000 sq. m.) x (P6,000 per sq. m. as per Zonal Value) ‘6,000,000 Land Development Cost (if applicable} = (1,000 sq. m.) x (*P1,000 per sq. rm.) 1,000,000 Total Floor Area of Condominiur 20,000 sq.m. Aggregate Floor Area of Residential = 13,000 sq. m. Aggregate Floor Area of Commercial = 1,000 sq.m. Construction Cost 15,000 per sq. m.* Conptcton |(TBA) x (TRA) BCC,residential ge = (TCAD) x CC 13,000 + 1,000 ne ‘Condominium Project Cost = ®6,000,000 + #1,000,000 + ®263,580,000

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