Housing and Land Use Regulatory Board: Lupong Nangangasiwa Sa Pabahay at Gamit NG Lupa

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Republic of the Philippines

Office of the President


HOUSING AND LAND USE REGULATORY BOARD
Lupong Nangangasiwa sa Pabahay at Gamit ng Lupa

HLURB MEMORANDUM CIRCULAR NO. 0C'l


Series of 2018 ( \I\A.""t 02. 0) 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 I

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.
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Sunnymede IT Center, 1614 Quezon Ave ., Brgy. South Triangle, Quezon City ~
www.hlurb.gov.ph
RULE II

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

4.1 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

4.1.2 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 PO 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.

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4.2 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%) ofthe total condominium
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 (COO) 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 PO 957 against the developers
and responsible officers ofthe corporation. Further, the Regional Officer shall cause
the annotation with the Registry of Deeds (RO), with notice to the local 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.

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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:

5.1 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 PO 957 against the developers
and responsible officers ofthe corporation. Further, the Regional Officer shall cause
the annotation with the Registry of Deeds, with notice to the local government unit
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
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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 ofthe 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.

5.2 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 PO 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.

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:

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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 (CRlLS) 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%) ofthe 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:

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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 amou nt 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 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 (CRlLS) 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.

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5.2.3 Joint Venture with Another Private Socialized Housing Developer for:

5.2.3.1 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.

5.2.3.2 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 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 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

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upon filing of the Application for Certificate of Registration and
License to Sell (CRlLS) 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


the Provision of Socialized Housing for:

5.2.4.1 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;

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 5.2.4.1.c above in the
current JVA shall not be considered for compliance with Section
18 of UDHA un less 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 (CRlLS) of the socialized housing project.

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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.

5.3 Participation in a New Project under the Community 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.

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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.

5.4 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 5.4.1 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
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escrow trust account with Pag-Ibig 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).

5.5 Purchase 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

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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 JVAlMOA and
geotagging in the approved Bureau of Lands Locational Monument (BLLM)

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 government 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)

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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/so

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 (CR/LS) 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 (CRlLS) 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 ofthe 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 36
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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-a-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 shall 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 (COO) shall be issued against the
developer of the main project.

In the event that any socialized housing developer has been issued a COO or that any
project that has been used as compliance has been found to have a violation on the issued
COO by the regional field office, the violation should be reported to the supervising
commissioner and that whatever liability or penalty on the COO should be applied to the
main developer as well.

RULE III

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 (PO 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 surveyor subdivision plan, and issued with only one

Page 15 of 36
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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 CR/LS of the main
project in accordance with the existing IRR under PO 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 corresponding geotagging
thereof;

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.

page16
A
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 CRlLS:

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 PO 957 and its IRR or the IRR of BP 220, the
notice of filing of registration statement shall likewise include the following:

19.1 Forthe 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:

pagel~
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
PO 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 0 - 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 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;

22.2 The compliance project being registered for subsequent utilization:


Page 18 of 36
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22.2.1 The name and location of the current main project;

22.2.2 The total saleable subdivision or condominium project cost of the current
main project depending on the manner of compliance.

22.2.3 The particular block numbers and lot numbers or unit numbers of the
socialized housing project being allotted as current compliance;

22.2.4 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

22.2.5 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
CR/LS 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.

page19~
RULE IV

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 Oesist Order (COO) 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 (S) 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 COO upon:

2S.1 Reinstatement of the LS of the compliance project; or

2S.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 COO or that any
project that has been used as compliance has been found to have a violation on the issued
COO 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
COO 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
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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
R.A. 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.1 0884.

Developerls 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 developerls 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.

page21~
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 CHRl~R A. LAO


Chief Executive Officer and Commissi~

page22~
ANNEXA
SAMPLE COMPUTATION OF A COMPLIANCE PROJECT
FOR SUBDIVISION/CONDOMINIUM PROJECTS

I. COMPUTATION FOR SOCIALIZED HOUSING COMPLIANCE WITHIN THE MAIN


PROJECT

A. MAIN SUBDIVISION PROJECT


i. 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) x 0.15 (in square meters)

Sample Computation for Main Subdivision Project:

Gross Land Area (GLA) =15,000 sq. m


Housing Floor Area (HFA) = 100 units with 50 sq. 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
= 3,000 sq. m.

Total Socialized Housing Requirement =3,000 sq. m.

ii. By Cost, where:

Main Subdivision Project


- 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 P)

page23~
Sample Computation for Main Subdivision Project:

Land Area Cost (LAC) =(15,000 sq. m) x (tt2,000 per sq. m. as per Zonal Value)
= tt30, 000, 000

Land Development Cost (LOC) = (15,000 sq. m.) x (ttl,OOO per sq. m.)
= tt15,000,000

Housing Construction Cost (HCC) = (100 units) x (50 sq. m. floor area per unit)
x (tt15,000 per sq. m. construction cost)
= tt75,000,000

Total Subdivision Project Cost = tt30,000,000 + tt15,000,000 + P75,000,000


=P120,000,OOO
Socialized Housing Requirement (SHR) = tt120, 000,000 x 0.15
= P18,000, 000

Total Socialized Housing Requirement = P18,ooo,Ooo

B. MAIN CONDOMINIUM PROJECT


i. By Area, where:

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,resldentlal = (TRA) + (TCA) - (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
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Case 1: Project ABC Residential Condominium (Purely Residential)

Assumptions:
Gross Land Area = 1,000 sq. m.
Total Floor Area of Condominium (purely residential) = 20,000 sq. m.
No. of Units of Socialized Housing =150
Aggregate Floor Area of Residential =13,000 sq. m.
Computations:

. . (TBA) x (TRA)
TFA,resldentzal = (TRA) + (TCA) - (TCA)

-20,000
____ x--'----
13,000 - 0
13,000 + 0

= 20,OOOsq.m.
Condominium Project Area =1,000 + 20,000
= 21,000 sq. m.

Socialized Housing Requirement = (21,000 sq. m.) x (0.05)


=
1,050 sq. m.

Total Socialized Housing Requirement = 1,050 sq. m.

Case 2: Project ABO Residential and Commercial Condominium (Mixed Use)

Assumptions:
Gross Land Area = 1,000 sq. m.
Total Floor Area of Condominium ;:;;; 20,000 sq. m.
Aggregate Floor Area of Residential = 13,000 sq. m.
Aggregate Floor Area of Commercial ;:;;; 1,000 sq. m.

Computations:

. . (TBA) x (TRA)
TFA, resldentzal = (TRA) + (TCA) - (TCA)

20,000 x 13,000
13,000 + 1,000 - 1,000

= 17,572sq.m.
Condominium Project Area =1,000 + 17,572
= 18,572 sq. m.
Socialized Housing Requirement = (18,572 sq. m.) x (0.05)
=
928.60 sq. m.

Total Socialized Housing Requirement =928.60 sq. m.


ii. By Cost, where:

Page 2S of 36
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Main Condominium Project
- Land Area Cost (LAC) =the raw land cost based on Zonal Vale at the time of application
- Land Development Cost (LDC)
- 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

. . [CTBA) x CTRA) ]
BCC, resIdential = (TRA) + (TCA) - (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 (in P)

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)
=P6,000,OOO
Land Development Cost (if applicable) = (1,000 sq. m.) x (*Pl,OOO per sq. m.)
= Pl,OOO,OOO

Total Floor Area of Condominium =20,000 sq. m.


Aggregate Floor Area of Residential =13,000 sq. m.

Construction Cost = P15,000 per sq. m. *

Computations:

(TBA) x (TRA) ]
BCC, residential = [(TRA) + (TCA) - (TCA) x CC

20,000 x 13,000 ]
= [ 13,000 + 0 - 0 x 15,000

= P300,000,000
Condominium Project Cost =P6,000,000 + Pl,OOO,OOO + P300,000,000
= P307,000,000

Socialized Housing Requirement = (P307,000,000) x (0.05)


= P15,350,OOO

Total Socialized Housing Requirement =~151350,000


page26~
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)
=P6,000,OOO
Land Development Cost (if applicable) ={1,000 sq. m.j x (*Pl,OOO per sq. m.)
=Pl,OOO,OOO
Total Floor Area of Condominium = 20,000 sq. m.

Aggregate Floor Area of Residential = 13,000 sq. m.

Aggregate Floor Area of Commercial =1,000 sq. m.


Construction Cost =P15, 000 per sq. m. *
Computations:

. . [(TBA) x (TRA) ]
BCC, resldentzal = (TRA) + (TCA) - (TCA) x CC

20,000 x 13,000 ]
= [ 13,000 + 1,000 - 1,000 x 15,000

= P263,580,000
Condominium Project Cost =P6,000,000 + P1,000,000 + P263,580,000
= P270, 580, 000

Socialized Housing Requirement = (P270, 580, 000) x (0.05)


= P13,529,000

Total Socialized Housing Requirement = "13,529,000

II. COMPUTATION FOR SOCIALIZED HOUSING COMPLIANCE IN NEW


SETTLEMENT/OUTSIDE THE MAIN PROJECT

A. MAIN SUBDIVISION PROJECT


i. By Cost, where:

Main Subdivision Project


- 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)

page27~
Socialized Housing Requirement (15% of total subdivision project cost)
= (LAC + LDC + HCC) x 0.15 (in P)

Sample Computation for Main Subdivision Project:

Land Area Cost (LAC) =(15,000 sq. m) x (P2,000 per sq. m. as per Zonal Value)
=P30,000,000
Land Development Cost (LOC) =(15,000 sq. m.) x (Pl,OOO per sq. m.)
= P15, 000,000

Housing Construction Cost (HCC) = (100 units) x (50 sq. m. floor area per unit)
x (P15,OOO per sq. m. construction cost)
= P75,000,000

Total Subdivision Project Cost = P30,000,000 + P15, 000,000 + P75,OOO,OOO


= P120,000,000

Socialized Housing Requirement (SHR) =P120,000,000 x 0.15


=P18,OOO,000

Total Socialized Housing Requirement =P18 ooo Ooo


1 l

B. MAIN CONDOMINIUM PROJECT


i. By Cost, where:
Main Condominium Project
- Land Area Cost (LAC) =the raw land cost based on Zonal Vale at the time of application
- Land Development Cost (LDC)
- 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 = (TRA) + (TCA) - (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 (in P)

Page 28 of 36
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Sample Computation:

Case 1: Project ABC Residential Condominium (Purely Residential)

Land Area Cost = (1,000 sq. m.) x ("6,000 per sq. m. as per Zonal Value)
= "6,000,000

Land Development Cost (if applicable) ={l,ooo sq. m.) x (*"1,000 per sq. m.)
= "1,000,000

Total Floor Area of Condominium = 20,000 sq. m.

Aggregate Floor Area of Residential =13,000 sq. m.

Construction Cost ="15,000 per sq. m. *

Computations:

. . [(TBA) x (TRA) ]
BCC, reszdentwl = (TRA) + (TCA) - (TCA) x cc
_ [20,000 x 13,000 _ ]
- 13,000 + 0 0 x 15,000

= 'P300,OOO,OOO
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

Case 2: Project ABO Residential and Commercial Condominium (Mixed Use)

Land Area Cost = (1,000 sq. m.) x ("6,000 per sq. m. as per Zonal Value)
="6,000,000
Land Development Cost (if applicable) = (1,000 sq. m.) x (*"1,000 per sq. m.)
=
"1,000,000

Total Floor Area of Condominium = 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. *

page29~
Computations:

. . [(TBA) x (TRA) ]
BCC, restdentwl = (TRA) + (TCA) - (TCA) x CC

20,000 x 13,000 ]
= [ 13,000 + 1,000 - 1,000 x 15,000

= P263,580,000
Condominium Project Cost =P6,000,000 + Pl,OOO,OOO + P263,580,000
=P270,580,OOO
Socialized Housing Requirement = (P270,580,000) x (0.05)
=
PH, 529, 000

Total Socialized Housing Requirement = "13,529,000

III. COMPUTATION FOR SOCIALIZED HOUSING COMPLIANCE THROUGH


PARTICIPATION IN A NEW PROJECT UNDER THE COMMUNITY MORTGAGE
PROGRAM

By Cost, where:

• Socialized Housing Project Cost (SHPC) =total project cost ofthe socialized
housing project

• Socialized Housing Compliance (SHC) = full compliance of main developer to the


socialized housing requirement

SHC =SHPC X 0.25 (in 11))


Sample Computation:

Total Project Cost o/the Socialized Housing Project (SHPC) =P18,000,OOO


Socialized Housing Compliance (SHC) =P18,000,OOO x 0.25
= P4,500,OOO

Total Requirement jar Socialized Housing Compliance to credit the whole Socialized
=
Housing Project P4,5oo,ooO

page30~
IV. COMPUTATION FOR SOCIALIZED HOUSING COMPLIANCE THROUGH
PARTICIPATION BASED ON A PERCENTAGE OF THE AMOUNT OF INVESTMENT

A. Thru a Third Party for the Implementation of Land Development, Installation of


Water Utility or Power Utility

B. Construction, thru a Third Party, of Non-Saleable and Non-Recoverable Housing


Projects on land owned by the Government or Donated Private land (covers
Housing for AFP Personnel, Public Housing, Rehabilitation of Calamity-Stricken
Communities, Housing for Street Children, Indigent Elderly and People with
Disability)

By Cost, where:

• Socialized Housing Project Cost (SHPC) =total project cost of the socialized
housing project
• Socialized Housing Compliance (SHC) =full compliance of main developer to the
socialized housing requirement

SHC = SHPC x 0.25 (in P)

Sample Computation:

Total Project Cost o/the Socialized Housing Project (SHPC) =P18,000,000


Socialized Housing Compliance (SHC) = P18,000,000 x 0.25
=P4,500,000

Total Requirement for Socialized Housing Compliance to credit the whole Socialized
=
Housing Project P41 5OOl 000

page310~
V. COMPUTATION FOR SOCIALIZED HOUSING COMPLIANCE THROUGH
INCENTIVIZED COMPLIANCE

This covers participation in any socialized housing project approved by the HLURB
or rehabilitation of calamity-stricken communities that are under the BALAI
programs of the HUDCC, by way of construction and/or installation, through a third
party or own, of any of the enumerated:

(a) Provision of adequate and potable water supply and distribution;


(b) Provision of adequate power/electrical distribution system;
(c) Implementation of land development plans which shall include the construction
of roads, drainage and open space facilities; and
(d) Construction of non-saleable and non-recoverable housing projects on land
owned by the government or donated land such as housing for military
personnel, public housing, housing for street children, indigent elderly and
people with disability.

By Cost, where:

• Socialized Housing Project Cost (SHPe) =total project cost of the socialized
housing project
• Socialized Housing Compliance (SHe) = full compliance of main developer to the
socialized housing requirement

SHC = SHPC x 0.20 (in P)

Sample computation:

Total Project Cost o/the Socialized Housing Project (SHPC) = P18,OOO,OOO

Socialized Housing Compliance (SHC) =P18,OOO,OOO x 0.20


="3,600,000

Total Requirement for Socialized Housing Compliance to credit the whole Socialized
=
Housing Project P3,6oo,000

page3a
ANNEXB

NOTICE OF FlUNG OF REGISTRATION STATEMENT


FOR THE MAIN PROJECT

HOUSING AND LAND USE REGULATORY BOARD


(Regional Field Office)
Office Address

NOTICE

Notice is hereby given that OWNER / DEVELOPER has filed with this Office a
sworn registration statement for the sale of LOTS/HOUSE AND LOTS in NAME
OF MAIN PROJECT located at LOCATION and more particularly described as
LOT / PSD NO. containing an area of sq.m. and covered by TCT No.

The foregoing project is utilizing NAME OF COMPLIANCE PROJECT INAME OF


FACIUTY, CENTER OR BASIC AMENITY located at LOCATION or PURCHASE
OF SOCIALIZED HOUSING BOND ISSUED BY as its compliance
pursuant to Section 18 of Republic Act No. 7279.

All papers relative thereto shall, upon request and payment of processing fee,
be available for inspection during business hours by any person having legal
interest thereon.

Absent any legal impediment, the above-cited project is deemed registered


and a certificate, in evidence thereof, shall forthwith be issued after five (5)
days from the last day of publication.

PLACE OF ISSUE,

Regional Officer

Page 33 of 36

~
PILIPINO VERSION OF NOTICE OF FILING OF
REGISTRATION STATEMENT FOR THE
MAIN PROJECT
(PANGUNAHING PROYEKTO)

HOUSING AND LAND USE REGULATORY BOARD


(Tanggapang Rehional)
Lugar ng Tanggapan

PAUNAWA

Ipinagbibigay-alam na ang MAY-ARI I DEVELOPER ay naghain sa


Tanggapang ito ng sinumpaang aplikasyon para sa pagbebenta ng mga LOTE
I BAHAY AT LOTE sa PANGUNAHING PROYEKTO na matatagpuan sa
KINAROROONAN at sinasakop ng LOT I PSD NO. sa ilalim ng TITULO
BLG.

Ang nasabing proyekto ay ginagamit ang PROYEKTONG TAGATUPAD 0


PASILIDAD 0 SENTRONG PANGKALUSUGAN, PANG EDUKASYON, ATBP. na
matatagpuan sa (KINAROROONANl 0 PAGBILI NG PABAHAY BONDS MULA
SA bilang pagtupad sa Seksyon 18 ng Batas ng Republika Big.
7279.
Lahat ng mga kasulatang kaugnay nita ay maaaring suriin ng sinuman na
nagtataglay ng legal na interes dito matapos humiling ng pagsusuri at
magbayad ng kaukulang halaga sa tanggapang ito.

Kapag walang sagabal na legal, ang proyektong nabanggit ay ituturing na


rehistrado at maaari nang bigyan ng sertipiko bilang katibayan nito,
pagkalipas ng limang (5) araw mula sa huling paglalathala.

LUGAR NG TANGGAPAN,

Pinunong Rehional

Page 34 of 36

~
ANNEXC

BILLBOARD NOTICE

MAIN PROJECT

Name of ABC SUBDIVISION


Project:
ABC REALTV & DEVT. CORP.
Owner/Deve
loper:
Location: 11_ _ __
Total
Subdivision XYZ SOCIALIZED/HOUSING PROJECT PURCHASE
Project Cost: OF SOCIALIZED HOUSING BONDS/XYZ
EDUCATIONAL/HEALTH CENTER
Compliance
Project: XYZ SOCIALIZED BUILDER

Owner/Deve
loper:
Location:
Compliance
Cost:

COMPLIANCE PROJECT

Name of Compliance Project: XYZ SOCIALIZED HOUSING PROJECT


Owner / Developer: XYZ SOCIALIZED BUILDER

Location:
Project Cost: iII _ _ __

Main Project: ABC SUBDIVISION


Owner / Developer: REALTV & DEVT. CORP.
Location:
Project Cost: 11 _ _ _-

Page 3S of 36
~
ANNEXD

AFFIDAVIT OF POSTING OF BILLBOARD NOTICE


FOR THE MAIN PROJECT

Republic of the Philippines ]


_ _ _ _ , _ _ _ _ _ _ ] S.s.

AFFIDAVIT OF POSTING OF BILLBOARD NOTICE

I, _ _ _ _ _ _ _---1' Filipino, of legal age, with residence and postal


address at , after being sworn in
accordance with law, hereby depose and state:

1. That I am the POSITION of OWNER/DEVELOPER;

2. That said corporation is the owner/developer of NAME OF MAIN


PROJECT located at LOCATION which is the subject of an application for
Certificate of Registration and License to Sell before the Housing and
Land Use Regulatory Board (HLURB)i

3. That OWNER/DEVELOPER has caused the posting of a 3' X 6'


billboard notice in front of the project site in compliance with the
requirements of the HLURBi

4. That stated in the said billboard notice are the following:

4.1 Name and location of the


main project:

4.2 Total subdivision cost: Pesos: or ___ sq.m.


(ta _ _ _ _ _ )

4.3 Name and location of the


compliance projector or Or Purchase of Socialized
Mode of Compliance: Housing Bond Issued by

4.4 Compliance Cost: Pesos: or _ _ sq.m.


(ta _ _ _ _ )

S. That a billboard notice was likewise posted in front of the project


site of NAME OF COMPLIANCE PROJECT located at
.,
page36~

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