Professional Documents
Culture Documents
A. DEFINITION
B. PURPOSE
The compliance of the developers to the balanced housing requirement is supposed to help
achieve the objectives of RA 7279. The requirement should help in improving the conditions of
the underprivileged and homeless citizens in urban areas and in resettlement areas by increasing
their access to decent and affordable housing.
C. COVERAGE
The Balanced Housing Development Program under RA 10884 covers all new residential
subdivision and new residential condominium projects with applications for approval or
development permit filed with the local government unit or HLURB, and all existing residential
subdivision and existing residential condominium projects with applications 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 filed with the local government unit
or HLURB upon the effectivity of RA 10884.
D. MANNERS OF COMPLIANCE2
1. Development of socialized housing within the main subdivision project (or socialized
condominium housing):
This is the preferred manner of compliance. At the option of the developer, the developer of the
main subdivision project shall develop a socialized subdivision housing project:
(a) With an area equivalent to at least 15% of the total subdivision project area of the main
subdivision project; and at least 5% of condominium project area; or
(b) With a cost equivalent to at least 15% of the total subdivision project cost of the main
subdivision project; and at least 5% of condominium project cost.
1
HLURB Board Resolution No. 965, Series of 2017,
2
HLURB Memorandum Circular No. 09 (02 May 2018)
The compliance socialized housing/condominium project shall be located within the main
subdivision/condominium project.
Such mode of compliance shall be annotated within six (6) months from the issuance of the
License to Sell on the OCT, TCT and CCT of the project, specifying thereof the actual lot
numbers, block number, 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 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
commenced by the HLURB against the developers and responsible officers of the corporation.
Further, the Regional Office 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/condominium area or total subdivision/condominium project cost, the developer
thereof shall be required additional compliance to be computed based on the increase in the total
subdivision/condominium project area or cost. In all cases, the compliance project shall be
developed in accordance with the standards and requirements set by HLURB and RA 9267, and
such applicable laws and regulations.
The compliance project shall be subject to the minimum design standards promulgated pursuant
to BP 220, HLURB rules and regulations, and such other related laws or issuances. (See HLURB
Board Reso No. 973, S. 2018, for the standards and technical requirements for the development
of social housing projects.)
At the option of the developer, the developer of the main subdivision/condominium project shall
develop a socialized subdivision/condominium housing project:
(a) With an area equivalent to at least 15% of the total subdivision project area of the main
subdivision project, and at least 5% of condominium project area; or
(b) With a cost equivalent to at least 15% of the total subdivision project cost of the main
subdivision project, and at least 5% of condominium project cost.
The compliance project shall be located in the same city where the main project is located, if
feasible.
All the OCTs, 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.
In case of expansion or alteration of the main project resulting to an increase in the total
subdivision/condominium area or total subdivision/condominium project cost, the developer
thereof shall be required additional compliance to be computed based on the increase in the total
subdivision/condominium project area or cost. In all cases, the compliance project shall be
developed in accordance with the standards and requirements set by HLURB and RA 9267, and
such applicable laws and regulations.
The compliance project shall be subject to the minimum design standards promulgated pursuant
to BP 220, HLURB rules and regulations, and such other related laws or issuances. (See HLURB
Board Reso No. 973, S. 2018, for the standards and technical requirements for the development
of social housing projects.)
All developers and non-government organizations with which the developer of the main project
shall enter into a joint venture agreement with the following entities below shall apply for
accreditation in accordance with HLURB Memo Circular No. 09, Series of 2018.
Notarized JVA signed by both parties, which specifies the amount of contribution of the
developer of the main project, total project cost of the socialized housing project
undertaken, other particulars of the project
Notarized JVA signed by both parties, which specifies the amount of contribution of the
developer of the main project, total project cost of the socialized housing project
undertaken, other particulars of the project
Notarized JVA signed by both parties, which specifies the amount of contribution of the
developer of the main project, total project cost of the socialized housing project
undertaken, other particulars of the 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 15% of
the total subdivision cost
For purposes of participating in the non-salable components of the CMP, the developer
may choose any of the following:
o Providing a parcel of land to a CMP project;
o Land development or housing or building construction in a CMP project; or
o 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
The developer shall not be allowed to use a combination of project area and project cost as basis
for computation of a single compliance.
A new socialized housing program undertaken by a developer shall have its registration
approved by the CEO of HLURB before it can be used as a compliance project, which shall be
subject to HLURB rules and guidelines.
To encourage greater private sector participation in socialized housing and further reduce the
cost of housing units for the benefit of the underprivileged and homeless, the following
incentives shall be extended to the private sector:
2. Creation of one-stop offices in the different regions of the country for the processing,
approval and issuance of clearances, permits and licenses: Provided, That clearances,
3
Sections 6 and 7, IRR of RA 10884
4
Section 2 (c), RA 10884
permits and licenses shall be issued within ninety (90) days from the date of submission
of all requirements by the participating private developers;
Provided, that a socialized housing certification issued by the Housing and Land Use Regulatory
Board shall be sufficient for the purpose of availment of tax exemption: Provided, further, that
upon application for exemption, a lien on the title of the land shall be annotated by the Register
of Deeds: Provided, Furthermore, That the socialized housing development plan has already been
approved by the appropriate government agencies concerned: Provided, finally, That all the
savings realized by virtue of this provision shall accrue in favor of the beneficiaries subject to the
implementing guidelines to be issued by the Housing and Urban Development Coordinating
Council.
Further, any developer, who shall participate in any socialized housing project approved by the
HLURB or rehabilitation of calamity-stricken communities, under the BALAI programs of the
HUDCC, by way of constructing or contracting through a third party for the construction or
installation of any of the enumerated, shall be considered as compliance:
Considering that the cost incurred by the developer in the aforementioned activities is
nonrecoverable, the computation of the value of the above enumerated construction or
installation vis-a-vis its actual cost, for purposes of compliance, shall be in the amount equivalent
to at least twenty percent (20%)5 of the total project cost of the socialized housing project in
order to be credited the entire socialized housing project or program.
G. PENALTY CLAUSE6
Any developer who are required to comply to the balanced housing development program must
carefully abide by the laws and rules governing the same. Thus, any violation of RA 7279, RA
10884, HLURB Board Reso. No. 965 (s. 2017), and HLURB Memo Circ. No. 09, s. 2018) shall
be penalized with the imposition of fine of not less than five hundred thousand pesos (Php
500,000.00) for the first offense; suspension of license to do business for a period of three (3) to
six (6) months and a fine of not less than five hundred thousand pesos (Php 500,000.00), for the
second offense; and cancellation of license to do business for the third offense: Provided, That, if
5
Section 11, HLURB Board Reso. No. 965 (s. 2017)
6
Section 14, ibid.
the offender is a corporation, partnership, association or other juridical entity, the penalty shall
be imposed on the officer or officers of said corporation, partnership, association or juridical
entity who caused the violation. Furthermore, the license to sell of the main project may be
suspended, cancelled, or revoked, if the required compliance project has not been developed or
has not been completely developed in accordance with the approved work program and within
the period approved by HLURB. If any of the compliance projects of the developer, under
Sections 3 and 4.2.3, to any of its main projects has not been completed within the period
allowed by HLURB at the time any application for a new main project is filed, such an
application shall not be accepted until and unless such compliance project/s is completed.