Enforcement Training

Simple Subdivision Approval, PALC and

Guidelines on Section 18 of RA 7279

Engr. PERLITO C. ABELLO

Head, Planning, Registration &Licensing Division
November 7-8, 2013
Hacienda Gracia Resort and Hotel, Purok 3, Sta. Maria, Lubao,
Pampanga
LOCAL GOVERNMENT CODE OF 1991
SECTIONS 447 (a) (2)(x) AND 458 (a)(2)(x)

SECTION 447.Powers, Duties, Functions and

Compensation
(a) The sangguniang bayan… (2)..shall:
(X) Subject to national law, process and approve subdivision
plans for residential, commercial, or industrial purposesand
other development purposes, and collect processing fees
and other charges, the proceeds of which shall accrue
entirely to the municipality; Provided, however, that where
approval by a national agency or office is required, said
approval shall not be withheld for more than thirty (30) days
from receipt of the application. Failure to act on the
application within the period stated above shall be deemed
as approval thereof.
EXECUTIVE ORDER NO. 71, DEVOLVING THE
POWERS OF THE HOUSING AND LAND USE
REGULATORY BOARD TO APPROVE SUBDIVISION
PLANS TO CITIES AND MUNICIPALITIES PURSUANT
TO R.A. NO. 7160, OTHERWISE KNOWN AS THE
LOCAL GOVERNMENT CODE OF 1991

SECTION 1.– Cities and municipalities

shall heretofore assume the powers of the
Housing and Land Use Regulatory Board
(HLRB) over the following:
(a) Approval of preliminary as well as final
subdivision schemes and development
plans of all subdivisions, residential,
commercial, industrial and for other
purposes of the public and private sectors,
in accordance with the provisions of P.D.
No. 957 as amended and its implementing
standards, rules and regulations concerning
approval of subdivision plans
(b) Approval of preliminary and final
subdivision schemes and development
plans of all economic and socialized
housing projects as well as individual or
group building and occupancy permits
covered by BP 220 and its implementing
standards, rules and regulations
BOARD RESOLUTION NO. R-725, AMENDING
THE REVISED RULES AND REGULATIONS FOR
PRESIDENTIAL DECREE NO. 957 AND BATAS
PAMBANSA BLG. 220 SERIES OF 2002

That DAR Exemption Clearance be deleted as a

requirement for the issuance of Development Permit
for subdivision and condominium projects, and that in
lieu thereof, a zoning certification issued by HLURB
Regional Officer be submitted indicating that the
project site is within the area zoned for urban use (i.e.
other than agricultural) prior to June 1988.
 BOARD RESOLUTION NO. 748
Series of 2003
FURTHER RELAXING THE REQUIREMENTS FOR THE
ISSUANCE OF CERTIFICATE OF REGISTRATION AND
LICENSE TO SELL
WHEREFORE, be it resolved, as it is hereby resolved, that this
Board shall no longer require as a precondition for issuance of
Certificate Registration and License to Sell a DAR Conversion
Order in cases where the property involved is located in an area
already classified as residential, commercial, industrial or other
similar development purposes as provided in CLUPs approved
pursuant to EO 72, Series of 1993.
 SUBDIVISION PROJECT
“Subdivision Project” shall mean a tract of a parcel of land
registered under Act. No. 496, which is partitioned
primarily for residential purposes into individual lots with
or without improvement thereon, and offered to the public
for sale, in cash or in installment terms. It shall include all
residential, commercial, industrial and recreational as well
as open spaces and other community and public areas in
the project.
1. HLURB REM Function to be devolved to LGUs

a) Simple Subdivision approval (SSA)

b) Preliminary Approval andLocational
Clearance (PALC)

c) Final Approval / Development Permit (DP)

d) Alteration of Plan Approval(AP)

e) Issuance of Building Permits for BP 220

Project with housing components (BP)
f) Implementation of Section 18 of RA 7279
(Urban Development and Housing Act of
July 2, 1992 (UDHA). Allocating of 20% SHP
2. 2 TYPE OF SUBDIVISION PLAN

a) Simple Subdivision
 no roads are delineated on the
plan subject of subdivision.

b) Complex Subdivision
 a road or passage way is delineated
on the plan. Development permit is
necessary.
3. BASIS FOR APPROVAL OF SUBDIVISION
1) Comprehensive Land Use Plan (CLUP)

2) Implementing Rules and Regulation

for Subdivision (PD 957, BP 220, EO
648, RA 7279) other related laws.

4. EVALUATION PROCESS
1. Evaluation as to completeness of
documents / requirements.
2) Evaluation as to minimum design
standards.
5. PROJECTS NOT COVERED BY
SECTION 18 OF RA 7279

a) Projects intended for the

homeless and unprivileged
where the price of a house
and lot package does not
exceed P400,000.00
PIECE MEAL APPLICATIONS

 (Chopping) - Partial submission of plans for approval.

WHY DO OWNERS OF LOTS RESORT TO

PIECE-MEALING APPLICATIONS?

1. Owner does not want to develop

2. Owner does not want to provide open space
3. Owner does not want to secure permits and
licenses
4. Wrong advise from surveyors/private
practitioners
EFFECTS/DISADVANTAGE OF PIECE-MEAL
APPROVALS

1. Buyers are deprived of development in the

subdivision
2. Open space/parks & playground are not
provided if more than 1.0 Ha.
3. Buyers will take a hard time of lots purchased
will be applied for loan purposes at Pag-Ibig or
other financing institutions since the projects
does not have permits & licenses.
4. Minimum design standards for subdivision
projects such as roadwidth minimum lot areas &
frontages as well as drainage system outfall are
not complied thus resulting to substandard
development.
 RA 7279 OF JULY 2, 1992
OTHERWISE KNOWN AS THE LINA LAW OR THE URBAN
DEVELOPMENT AND HOUSING ACT (UDHA) OF 1992

SECTION 18 OF RA 7279
- Balance Housing Development of RA 7279. Section 18
mandates developers of non-socialized Housing Projects
to allocate 20% of the total project cost or total project
area for socialized housing.

MODE OFCOMPLIANCE

a. For main subdivision projects which are limited to the sale

of lotsonly:
1. Land equivalent to twenty percent (20%) of the total
area of the main subdivision project shall be
developed for socialized housing or
2. A socialized housing project equivalent to twenty
percent (20%) of the main subdivision total project
cost.
b. For main subdivision projects which consist of
the sale of house and lot packages:

1. Land equivalent to twenty percent (20%) of the

total area of the main subdivision project shall
be developed and housing units equivalent to
twenty percent (20%) of the aggregate floor area
of all housing units of the main subdivision
project shall be constructed or

2. A socialized housing project equivalent to

twenty percent (20%) of the main subdivision
total projectcost.
E. REPUBLIC ACT7279

Section 18. Balanced Housing Development

The program shall include a system to be specified in the

Framework plan whereby developers of proposed
subdivision projects shall be required to develop an area for
socialized housing equivalent to at least twenty percent
(20%) of the total subdivision area or total subdivision cost,
at the option of the developer, within the same city of
municipality, whenever feasible, and in accordance with the
standards set by the Housing and Land Use Regulatory
Board and other existing laws.
Revised Implementing Rules and Regulations for Sec. 18
(Balanced Housing Development) of Republic Act No.
7279 with Implementing Guidelines 2013

BOARD RESOLUTION NO. 890,

Series of 2012

REVISED IMPLEMENTING RULES AND REGULATIONS

TO GOVERN SECTION 18 OF REPUBLIC ACT NO. 7279
OTHERWISE KNOWN AS THE URBAN DEVELOPMENT
AND HOUSING ACT OF 1992.
 Memorandum Circular No. 01,
Series of 2013

Guidelines for Section 3 (Balanced Housing Development

Compliance) of the Revised Implementing Rules and Regulations to
Govern Section 18 of Republic Act No. 7279.

Developers of proposed residential subdivision projects shall be

required to develop an area for socialized housing equivalent to at
least 20% of the total subdivision area or total subdivision project
cost. The socialized housing shall be developed within the same city
or municipality, whenever feasible; otherwise, it shall be allowed
elsewhere on the Philippines.
 Memorandum Circular No. 02,
Series of 2013

Guidelines for Section 4.1 (Development of New Settlement) of the

Revised Implementing Rules and Regulations to
Govern Section 18 of Republic Act No. 7279.

Modes of compliance:
a. Joint venture (JV) with an HLURB-accredited developer or subsidiary for the
production of new socialized housing projects.
b. Contribution of the developer in new socialized housing projects of HLURB-
accredited non-government organizations (NGOs).
c. Provision of educational & health facilities, productivity/livelihood centers and
other basic amenities which will benefit a
socialized housing project.
 Memorandum Circular No. 03,
Series of 2013

Guidelines for Section 4.2 (Slum Upgrading) of the Revised

Implementing Rules and Regulations to Govern Section 18 of
Republic Act No. 7279.

The developer of the main subdivision project may participate in

various programs and projects of NHA for slum upgrading or
renewal of Areas for Priority Development (APDs) through zonal
improvement programs with a cost equivalent to 20% of the total
project cost of the main subdivision project.
 Memorandum Circular No. 04,
Series of 2013

Guidelines for Section 4.3 (Joint Venture with Either The Local Government
Units or any of the Housing Agencies) of the Revised Implementing
Rules and Regulations to Govern Section 18 of Republic Act No.
7279.

Manner of compliance:
q. Joint venture with a Local Government Unit (LGU) in the development of a
socialized housing project in a resettlement area. To be embodied in a JVA.
b. Joint venture with any of the Housing Agencie’s in the development of a
socialized housing project or a housing project in a resettlement area to be
embodied in a JVA.
 Memorandum Circular No. 05,
Series of 2013

Guidelines for Section 4.4 [Participation in the Community

Mortgage Program (CMP)] of the Revised Implementing Rules
and Regulations to Govern Section 18 of Republic Act No. 7279.

Manner of Compliance: The developer of the main subdivision

project shall participate or contribute to a CMP project of the Social
Housing Finance Corporation (SHFC) the amount equivalent to 20%
of the total subdivision project cost.
 Memorandum Circular No. 06,
Series of 2013

Guidelines for the Accreditation of Developers of Socialized Housing

Projects as Provided under Section 5 of Board Resolution No. 890,
Series of 2012, or the Revised Implementing Rules and Regulations to
Govern Section 18 of Republic Act No. 7279.