Republic of the Philippines

HOUSH OF REIPRHSIINTATIVES
Quezon City, Metro Manila

NINETEHNTH CONGRESS
First Regular Sessi,on

HOUSE RHSOLUTI0N'

Introduced by Representative Ivan Howard Guintu

RESOLUTION
URGING THFj DI]PARTMHNT 0F HUMAN SETTLEMENTS AND URBAN
DHVI£LOPMENT AND THE NATIONAL ECONOMIC DEVELOPMENT
AUTHORITY TO REVIEW AND REVISE THE PRICE CEILING FOR
SOCIALIZED HOUSING TO CONFORM T0 PREVAILING ECONOMIC
CONDITIONS

WHEREAS, Section 23 of Republic Act No. (RA) 11201, otherwise known as the
"Department of Hunian Settlements and Urban Development Act," provides that "the

respective ceilings for socialized, low cost/economic and middle-income housing shall be
jointly determined by the Department and NEDA" and "that at any time, but not more than
once every two (2) years, such ceilings may be reviewed or revised to conform to prevailing
economic conditions;"

WHEREAS, in 2018, the Housing and Urban Development Coordinating Council

(HUDCC) adjusted the price ceiling for socialized housing units through HUDCC
Resolutions No. 1 and 2, Series of 2018, entitled "Price Ceiling for Socialized Subdivision
Projects" and "Price Ceiling for Socialized Condominium Projects," respectively;

WHEREAS, in the said HUDCC Resolutions, the former price ceiling for socialized
housing of P450,000 was changed into a multi-tiered set of socialized housing price ceiling,
which are as follows:

Socfa[ized Housing Unit Price Ceiling

For Socialized Horizontal Housing

22 sqm. P480,000

24 sqm. P530,000

28 sqm. P580,000
 For Socialized Vertical Housing in the NCR

22 sqm. P700,000

24 sqm. P750,000

For Socialized Vertical Housing outside the NCR

22 sqm. P600,000

24 sqm. P650,000

WHHRHAS, the prevailing ecoiiomic conditions in the country at present is

drastically different from the past economic conditions that was considered in determining
the adjustments in the price ceiling for socialized houLsing back in 2018;

WHERHAS, the cost of construction materials has significantly increased over the
years and, in fact, the Philippine Statistics Authority's (PSA) Construction Materials
Wholesale Price Index recoi-ded an annual growth rate of 10.4 percent in September 2022, the
highest in the past 10 years;

WHEREAS, the cost of labor also became more expensive since recent wage orders
increased the minimum wage per region with NCR's minimum wage increasing from P537
back in 2018 to P570 at present;

WHEREAS, Section 2 of BafczLs Pcz#tz)ciff,s`cz 8/g. 220 defines socialized housing as

"housing units which are within the affordability level of the average and low-income earners

which is thirty percciit (30%) of the gross family income as determined by the National
Economic and Development Authority fi-om time to time."

WHEREAS, based on the 2018 Family Income and Expenditure Survey (FIES) data
from the PSA, the average annual income of families that are part of the bottom 30% income
group was Pl 68,161, a 26.45% increase from P132,983 in the 2015 FIES, which was one of.
the factors taken into consideration by HUDCC and NEDA for the price ceiling adjustments
back in 2018;

WHHREAS, based on the foregoing economic dat.a showing the concurrent increase
in input costs and the annual income of low-income families, the review and adjustinent of
the current price ceilings for socialized housing is necessary to set a feasible price ceiling that
conforms to the prevailing economic conditions;
 WHHREAS, the Balanced Housing Development Program under Section 18 of RA
7279, as amended by RA 10884, requires developers to develop an area foi. socialized
housing equivalent to at least 15% of the total area or total project cost, however-, the same
section also provides for alternative modes of compliance;

WHEREAS, under the Revised lmplementing Rules and Regulations of RA 7279, as

amcndcd, the purchase or subscription of asset-backed securities is one of the alternative
modes of compliance with the Balanced Housing Development Prograln;

WHEREAS, there is a decrease in the number of socialized housing units produced

since developers opt to just purchase bonds instead of developing socialized housing units as
part of their compliance with Section 18 of RA 7279, as amended, due to the unfeasible price
ceilings;

WHF,REAS, the cur-ent price ceilings discourage socialized housing developers to

produce more housing units since their input cost has substantially increased aiid the
incompatibility of the current price ceiling and the prevailing economic coiiditions may
contribute to the decrease or lack of palficipation from the private sector in the production of
socialized housing units, which may further wor.son the problem of housing backlogs;

WHEREAS, tlic multi-tiered set of price ceilings based on floor area introduced in
2018 tlirough the HUDCC Resolutions `should be abandoned and there should just be one
price ceiling applicable for socialized subdivision projects and also a single price ceiling for
socialized condominium projects;

NOW, THEREFORE, BE IT RESOLVED, by the House of Representatives to urge

the Department of Human Settlements and Urban Development and the National Economic
Development Authority to review and revise the price ceiling for socialized housing to
confonn to prevailing ecoiiomic conditions.

Adopted'