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Republic of the PhilipPines

Offrce of the hesident


gYfi:*:Tlti
Housing and urban Devcloprncnt
l'o"Hffi;$ inxo usE *t"YtNN BOARD

crRculAR lro' o3
HLURB ilEUORANPUI|
3Jiies-;r lbie (Li'brt rl t4, 2016)

TO ALL CONCERNED
CHIEF EXECUTN'E OFFICER
FROM
a
a THE COilMISSIOTIER ATID

GUTDEIJI|ES (,1{ BoARD RE€oLuTroN NO' 926!sERrES


-nevrsro-iiiLrurrrrrc
SUBIECT : JilE RULEs
oF 2o1s, oR gq!t**D rHE rruE oF
AND nreur-lri6is'-ro cotr DottlIl{IU 1'r
o; ;isdrvrsroil- At{ DEcREE No' e57
cou pLETroil
pRorEcrs urriliFnesroerrrru'
pnorEcrs REQUIRED BY
'
AilD ALL orHiil-silli-rln NTGISTERED WITH THE
uAW ATID REGUA;6iJTO-S^E BoARD'
HousrNG AND ilii'-usr REGUIAToRY

of the Housing -91d t'aTI- Use Regulatory Board


Pursuant to Section 14 giO,-S"ri"u-oi i0i5, or the Revised Implementing
of
(HLURB) Resotuuoii'r.ro.
Rutes and n"gi;uon, TIJ of compleuon
(rnn)_to.'6J"lt-'ut"
subdivisionandcondominiutfi#"1**mg':lff'rmff t||#,'i;
Decree,,and A*
RT#;r;f".F.f Resistered w*h the
Btl:il?S,#i"t"*H'1'3SJJl#;"iJconoominiumBuvers'protective
ofr"r-iioi"* euioetines is hereby issued:
Housing ano ranili neiututoty #;;',-t1is

RULE I
General Ptovisions

be referred to as the "2015


Guide-lines shall
Section 1. Title' - This
Aid"lil"ton'fi me of c-omPletion"'
This Guidelines shall aPPIY
to all
Section 2' scope q {qPl5:on' with HLURB'
projecs requireOf,iiaw to be registered
page 1
"rto
frr,nlu

Dilirnan' Quezon City


Avenue cilnerVaYaman Street'
HLURB Bldg', Kalayaan
When used in this Guidelines, the word "projecf'shall include:

2.t All subdivisions, including residential


commercial, farmlot, and industrial
subdivisions;

2.2 All condominiums, including residential and


commercial condominiums; and

2.3 Any other similar projects, including cemeteries,


memorial parK and columbaria.

Section 3. Objective. This Guidelines aims to provide a


uniform
application, interpretation, usage, and implementation of Board Resolution
No. 926, Series of 2015 in order to ensure that all projects, including the
construction and provision of the facilities, improvements, infrastructures
and other forms of development, including water supply and electrical
facilities, which are offered and indicated in the approved proiect plans,
brochures, prospectus, printed matters, letterc, or in any form of
advertisement are completed within one year from the date of issuance of
the license to sell of the project or within such other period of time as may
be fixed in accordance with this Guidelines.

SECTION 4. DefiniUon of Tems. When used in this Guidelines, the


following terms shall be understood to mean as follows:

4.L "Cease and Desist Ordef refers to an order issued by the HLURB
directed against a developer enjoining it from committing ceftain acts
in relation to its project by reason of a violation of Presidential Decree
No. 957, Batas Pambansa Blg.22O, or any of their implementing rules
and regulations or any guidelines or circular issued thereunder.

4.2 "Cemetery" refers to a public or private land used for the burial of the
dead and other uses indicated for cemetery purposes.

4.3 "Columbarium" refers to any structure, either freestanding or part of


another building, containing niches for the inurnment of cremated
human remains.

4.4 "Commercial Condominium" refers to the entire parcel of real property


divided or to be divided primarily for commercial purposes into
commercial units, including all structures thereon.

4.5 "Commercial Subdivision" refers to a tract or parcel of land registered


under Act No. 495 which is partiUoned primarily into individual lots for
commercial use with or without improvements thereon and offered to
the public for sale in cash or in installment terms-
Pase2otil
pup
4.6 "Condominium Project" refers to the entire parcel of real property
divided or to be divided primarily for residential purposes into
condominium units, including all structures thereon, and offered to
the public for sale, in cash or in installment terms.

4.7 "Developer" referc to any person who develops or improves the


subdivision project or condominium project for and in behalf of the
owner thereof.

4.8 "Farmlot Subdivision" refers to a subdivision project primarily intended


for agricultural production, with a minimum lot area of 1000 sq.m.
and with a 25o/o maximum allowable buildable area.

4.9 "Industrial SuMivision" refers to a tract of land paftitioned into lots for
sale or lease to establishments engaged primarily in industrial
production or services. The degree of development may be limited to
the provision of utilities and allocation of arleas for industrial buildings,
facilities, and amenities, or it may also include the provision of
buildings, facilities, and ameniUes.

4.10 "Land Developmenf' refers to land clearing and grubbing, road


construction, installation of power and water distribution qystem,
construction of drainage and sewerage q6tem and other
developments contained in the approved plans and/or in the brochure
and adveftisement.

4.LI "Memorial Park" refers to a privately-owned cemetery provided with a


qystematic superuision and maintenance where park{ike atmosphere
is its outstanding quality.

4.t2 "Ownef refers to the registered owner of the land subject of a


project. An owner who develops a project by himself shall be
considercd as a developer.

4.t3 'Projecf' refers to the different real estate development enumerated


under Section 2 hereof which are required by law to be registered with
the HLURB.

4.t4 "Sale" or "sell" shall include every disposition or attempt to dispose, for
a valuable consideration, of any lot, including the building and other
improvements thereof, or any unit in a project. "Sale" and "sell" shall
also include a contract to sell, a contract of purchase and sale, an
exchange, an attempt to sell, an option of sale or purchase, a
solicitation of a sale, or an offer to sell, directly or by an agent, or by a
circular, letter, adveftisement or othenruise.

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0''f-
A privilege given to a member of a cooperative, corporation,
partnership, or any association and/or the issuance of a ceftificate or
receipt evidencing or giving the right of participation in, or right to,
any land in consideraUon of payment of the membership fee or dues,
shall be deemed a sale within the meaning of this definition.

4.15 "Subdivision Project" shall mean a tract or a parcel of land registered


under Act No. 496, as amended by Presidential Decree No. t529,
which is paftitioned primarily for residential purposes into individual
lots with or without improvements thereon, and offered to the public
for sale, in cash or in installment terms. It shall include all residential,
commercial, industrial and recreational areas as well as open spaces
and other community and public areas in the project.

4.t6 "Time of Completion" refers to the period of time fixed by the HLURB
within which the owner or developer shall develop and complete the
project, including the construction and provision of facilities,
improvements and other forms of development, including water
supply and electrical facility.

All other words as may be used in this Guidelines shall be interpreted in


accordance with their normal and popular usage and meaning,

Rule II. General Rules and Guidelines


section 5. Time of completion. within one year from the date of the
issuance of the license for the project or such other period of time as may be
fixed by the HLURB in accordance with this Guidelines, every owner or
developer shall construct and provide the f-acilities, 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.

Section 6. Additional Period of Time to complete, No e><tension or


additional period of time may be granted to develop and complete the
project unless such failure or inability of the owner or developer to complete
the project within the original period is caused by:

6.1 Existence of sub-soil conditions discoverable only after actual


excavation works in the project and would necessarily require
addiUonal excavation time;

6.2 Occurrence of an event which is independent of the will of the


owner or developer, unforeseeable or unavoidable, and causes
damage to the on-going project that requires reconstruction or
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@uses delays which are directly attributable to the event and
renders its completion within the original approved period
impossible in a normal manner; provided however that the
owner or developer is free from any participation or
aggravation of the damage sustained by the project, and
provided finally that the owner or developer may report the
event to the RFO where the project is registered within thifty
(30) days from the occurrence thereof to put on record such
event and its effect on the projec$ or

6.3 Issuance of a lawful order of the court, government agency or


local government unit resulUng to the temporary enjoinment or
stoppage of the construction or development of the project
except when the issuance of such order is attributable to any
fault, mistake, or negligence on the part of the owner or
developer, or by reason of any dispute between the owner
and developer in the development and completion of the
project, and provided further that the owner or developer shall
have, within thirty (30) days from receipt or knowledge
thereof, notified in writing the Regional Field ffice (RFO)
where the project is registered of such issuance.

The additional period of time as provided under this section shall only be
granted upon posting of a new bond or security in accordance with the
existing rules and guidelines of the HLURB.

Section 7. Monitoring. In the exercise of its visitorial powers, the HLURB


may, on its own initiative or upon verified complaint, monitor the completion
and development of all projects in accordance with the rules and guidelines
herein provided and impose appropriate sanctions, fines and penalties in
case of violaUon or non-compliance herewith.

Rule III.
Time of Completion

Section 8. Periods of Completion. The work program or program of


development submitted for approval by the owner or developer upon
application for the projecfs Ceftificate of Registration and License to Sell
(CR/6) shall primarily be the basis for fixing the period of completion of the
project. In the case of residential suMivision projecb with house and lot
package, there shall be separate periods of completion for land development
and house construction, as hereinafter provided.

The work program or progmm of development shall consider and provide for
reasonable allowance for possible delay in the project development due to
work interruptions or temporary suspensions brought about by inclement
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weather, prolonged or repeated power failures, shortage of construction
supplies or materials, and other similar incidents.

Section 9. Period of Completion for land Development. The work


program or program of development submitted for approval by the owner or
developer upon application for the projecfs Ceftificate of Registration and
License to Sell (CR/|S) shall primarily be the basis for fixing the period of
completion. In fixing such period of completion, the project's level of
development, at the time of the issuance of the project's CR/[S, shall also be
considered.

Section 10. Period of Completion and Delivery of Housing


Components. The period of completion and delivery of any housing unit
purchased shall be explicitly provided in the contract to sell or any purchase
agreement.

In the absence of such provision or in case of failure to indicate the same,


the period of compleUon and delivery of the housing unit shall in no case
exceed one (1) year from the date of purchase.

Section 11. Subdivision Amenities and Facilities. All subdivision


amenities and facilities such as clubhouse, playgrounds, spoft facilities and
other infrastructures as may be included in the approved project plans,
brochures, prospecG printed matters, letters or any forms of adveftisement
shall be developed and completed within the submitted and approved
period for the projecfs land development.

Section t,2. Condominium AmeniUes. All amenities and facilities


included in the apprcved plan or included or represented in brochures,
prospectus, printed matters, letters or any form of advertisement of the
project shall all be completed in accordance with the work program or
program of development of the project.

Section 13. Uniform Stabment of Date of Completion on the


License to Sell and Advertisements. The date of completion of the
project shall include the month, day and year and shall be indicated on the
license to sell of the project.

For subdivision project with housing component, the date of completion and
delivery of the housing component shall be stated as one of the conditions in
the license to sell as follows:

"The date of completion and delivery of the housing component


shall be explicifly provided in the contract to sell or any
purchase agreement.

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In the absence of such provision or in case of failure to indicate
the same, the period of compleUon and delivery of the housing
unit shall in no case exceed one (1) year from the date of
purchase."

Such time of completion as indicated on the license to sell is a condition for


the issuance of the license to sell and shall be binding and obligatory on the
paft of the owner or developer unless a shofter period of completion or
delivery is represented in any form of adveftisement for the project.

Such date of completion of the project and date of completion and delivery
from date of purchase of any housing unit if applicable, is a mandatory
statement in any adveftisement of the project and shall likewise be stated
therein.

Rule IV.
Additional Time of Completion

Section 14. Application for Additional Time of Completion. The


owner or developer who shall not be able to complete the project, including
all improvements thereon, within the approved time of completion by reason
of any of the circumstances provided under section 6 hereof may apply for
an additional period of time to complete the project with the RFO where the
project is registered by submitting the following:

L4.t Swom application by the owner or developer, staUng the


grounds or reasons justiffing the application for additional
time to develop;

L4.2 Proof of noUce to all lot or unit buyers or owners;

I4.3 Suppofting pictures or documents, if any;

L4.4 In cases falling under Section 6.1 hereof, a sworn


statement by a licensed engineer attesting to the e><istence
of the condition justiffing the grant of additional time to
complete the project; and

14.5 Revised work program with computation of the remaining


cost of completion duly signed or sealed by a licensed
engineer or architect.

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A pro-forma copy of the applicaUon for additional time of completion as
provided under Section 14.1 hereof is hereto attached as Annexs oA"and
'A-1".

Section 15. t{otie to All Lot or Unit Buyens or Ownens. Any owner or
developer applying for additional time of completion in accordance with this
Guidelines shall notiff all lot or unit buyers or owners of its intent to apply
for additional Ume to complete the development of the project.

Section 16. Periods to Apply. All applications for additional period of


time to complete the project as may be justified under Section 6 hereof shall
be filed:

16.1 Under Section 6.1 hereof, within sixty (60) days from
discovery thereof;

t6.2 Under Section 6.2 hereof, within shty (60) days prior to the
expiration of the approved original time of completion,
provided however that if such occurence shall fall within the
last sixty (60) days of the approved period of completion,
the application shall be Rled within sixff (60) days from the
occurrence thereof; and

16.3 Under Section 6.3 hereof, within sixty (60) days from receipt
or knowledge of the order or issuance of a court,
government agenry or local govemment unit lifting the
enjoinment or stoppage of the construction or development
of the project.

Section 17. Evaluation and Grant of Additional Period of Time. Upon


receipt of any application for addiUonal period of time, the RFO shall verifo
the nature and extent of damage or validate the justification for the
application of addiUonal Ume to develop, and ascertain the additional period
of time needed to complete the project and the estimated remaining cost of
compleUon. If necessary, the RFO may conduct an ocular inspection of the
project.

If the RFO finds justifiable to grant the additional period of time in


reason
accordance with Section 6 it shall proceed to grant the application.
hereof,
Otherwise, it shall deny the same. Any appeal from the decision of the
application by the RFO shall be decided by the Superuising Commissioner.
Any such decision of the SupeMsing Commissioner may be appealed to the
Board of Commissioners in accordance with the ocisting rules of procedure
of HLURB.
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Section 18. Fees. The fees provided for e><tension or additional time to
develop applicable to the different classifications of subdivision and
condominium projects in the approved Schedule of Fees of the HLURB,
including Processing Fee, Additional Fee, and Inspection Fee are hereby
adopted and made applicable to grant of addiUonal time to complete the
project as provided under this Guidelins.

Section 19. Posting of Peilormanoe Bond or Security. The grant of


additional time to complete the project as may be justified under Section 6
hereof shall only be effective upon posting of an acceptable peformance
bond or security in accordance with existing HLURB rules and guidelines.

Rule V.
Honibring, Completion and Of[enses and Sanctions

Section 2O. Monitoring. Upon issuance of the development permit or the


CR/IS of the prcjd, its development and completion shall be subject to
the regular monitoring activi$ of the RFO where the same is registered.

Section 21.. Issuance of Certiftcates of Completion for land


Development and Housing Component. Upon completion of the
projecfs land development, the owner or developer shall apply for the
issuance of Ceftificate of Completion for Land Development (COCLD) from
the RFO where the project is registered. Upon completion of the housing
component, a separate Certificate of Completion for Housing Component
(COCHC) may also be issued. If upon ocular inspection the project is found
to have been completed in accordance with the approved work program or
program of developmen! a COCLD or COCHC shall be issued in accordance
with the o<isting rules and guidelines of the HLURB.

The issuance however of a COCLD shall not relieve the owner or developer
of the obligation to maintain the roads, alleys, sidewalks, playgrounds,
amenities, facilities, improvements infrasffuctures or other forms of
developments represented or promised in brochures, prospectus, printed
matters, letters or any form of advertisement of the project, until proper
donation or tumover of the same.

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U/
Sub-Rule V-A
llon-Completion of the Project Within
The Approved Period of Time

Section 22. Etrects of llon-Completion. Except as provided under


Section 6 hereof, non-completion of the project within the approved time of
completion shall entitle a buyer to exercise ib rights in accordance with
Presidential Decree No. 957 and the Civil Code of the Philippines, in addition
to the other rights and remedies provided for by other laws as may be
warranted under the circumstance. Administrative fines, sanctions and
penalties shall likewise be imposed on the owner or developer as provided
under Sections 25,26 and 27 hereof.

Section 23. ilotice of Alleged Repofted Violation for Failure to


Complete Within The Approved Period of Time. If upon complaint or
monitoring the project is found not completed within the period fixed by the
HLURB, a NoUce of Alleged Reported Violation (NOMV) shall be serued
upon the owner or developer, requiring the latter to submit within ten
calendar (10) days from receipt thereof an explanaUon under oath why no
administrative fine and sanctions and a cease and desist order (CDO) as
provided under Section 25 hereof should be imposed against it.

Section 24. Oder of ImposiUon of Fine. If the owner or developer shall


fail to comply with the order as provided under Section 23 hereof or shall fail
to justiff the non-completion of the project in accordance with HLURB's
existing rules and guidelines, an order accordingly imposing administrative
fines and sanctions shall be issued and the owner or developer shall further
be ordered to,submit within ten (10) calendar days:

24.1 A revised or updated Fact Sheet and Program of


Development signed and sealed by a licensed engineer,
indicaUng the new target date of completion;

24.2 Revised or updated remaining cost of completion;

24.3 Updated Sales Status Repot as ceftified true and correct


by a responsible officer of the corporation;

24.4 An Affidavit or Sworn Undertaking to refund payments to


affected buyers pumuant to Presidential Decree No. 957;
and

24.5 Proof or payment of the required processing fee in


accordance with HLURB"S approved Schedule of Fees.
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fu,f
Upon review of the submitted document, a final order shall be issued
requiring the owner or developer to complete the development of the project
within such period as may be fixed by the HLURB based on the submitted
revised documents, without prejudice to the imposition of administrative
fines and sanctions as hereinafter provided. The owner and developer shall
be fufther required to post a bond or security, and submit proof of posting
thereof, in accordance with HLURB's existing rules and guidelines.

Sub-Rule V-B
Fines and Sanctions

Section 25. Administrative Fines and Sanctions. In case of non-


completion of the project within the approved period time of completion, an
administrative fine shall be imposed in accordance with approved Schedule
of Fines and other existing rules and guidelines of the HLURB.

Section 26. Suspension of the License to Sell. In case of non-


completion of the project within the approved period Ume of completion, the
license to sell of the project shall be suspended and a coffesponding Cease
and Desist Order (CDO) shall be issued enjoining the owner or developer
from fufther selling any lot, including any building or improvement thereon,
or any unit in a project, from adveftising the project, and from collecting
amortization payment in accordance with the existing rules and guidelines of
the HLURB. Such suspension and CDO shall not be lifted until the project
shall have been completed and a COCLD is issued to the project.

Section 27. Penalties. In addition to the imposition of administrative fines


and sanctions provided under Sections 25 and 26 hereof, any violation of
Board Resolution No. 926, Series of 2015 and of this Guidelines shall be
penalized in accordance with the provisions of Erecutive Order No. 648 and
Section 38 (Administrative Fines) and Section 39 (Penalties) of Presidential
Decree No. 957.

All fines imposed in this Guidelines shall be payable to HLURB and


enforceable through writs of execuUon in accordance with the existing
HLURB's Rules of Procedure. The rights and remedies provided in this
Guidelines shall be in addition to any and all other rights and remedies that
may be available under o<isting laws.

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Section 28. Separability Clause. The provisions of this 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 29. Effiectivity Clause. This Guidelines shall take effect


immediately.

SECTION 30. Transitory Prcvision. Within ninety (90) days from the
effectivity of this Rules, all on-going projects with an original approved
period of completion or o<tension of time to develop that is shofter than the
period of completion provided in the originally submitted or revised work
program or program of development may apply for a final additional time to
develop and complete the project based on their approved or revised work
program or program of development subject to existing rules and
regulations and guidelines of the HLURB.

All applications for extension of time already filed upon the effectivity of
Board Resolution No. 926 shall be given a final extension of time which shall
be based on the submitted revised work program or program of
development.

For immediate implementation and strict compliance.

M /1 t

A]ITOIIIO M. BERNARDO
Commissioner and Chief Executive Officer

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ANNEX A
l-lorJsing drd Land use Regdatory Boarl
'z;\
w' RegimField ffice

RE
p*dFqirtdrnlsforrin
I ir&# srffidSt'| ffii
h tle S!*ilte|{

The Re<imdOmcec

Prrsuat b pedilenr bs tfrl the imptstrFntng ndes ild rEgu*ali(ns of ttir Bord, ! tn
hseby elyirg hr ADOITIOiIAL PERIOD OF TUE TO DET ELOP br OE &ve-
mentioned p.qed by d
teasil
I I pniects SG.Sof Cqdlin ne$iitg Addind
Excavdin Petud
[ | Foltinnls Brwrt Ce.cnp Dsnage h tte Pried d Dclry ln tc Deuelognent
t I L&rful Order dcqtq Ttbmd. GosnllFrtAgGncy a Loc.l
Govenrnent t.Irt Eniin-E ilc Cons8uctm c Dewhprnr* dfie Prq€cf

Bdcf tlescrifin dthe Alovel|arted Glqttd bAddind Ferirt| dTme:

Phme canriler lhe dHred d$trEtts listed b€ht rill d|€d( s crF C,- 6')c)
ccr$sGntslfr trE Isi q reqrierpds sfabd h tE lrpleflEntiE R.des td neq{dins
d PD S57 ild nunbecd cdEeeNlhr€fy b srpportthe {pfcCin b Addainsl Perbd of
Til|e:

I Ploof d NoLe b HLuRB d bgnnce d |he t'std mt


I Pro.f,d Ndile b Buyets
I stEn SlaHreat d Ucenscd EntirEr Afieshs to ute St|bSof Condlin
I Revi*<tWct nogrrn Sii$ted trf a Lists<l Erfgiwtryfi Cdnpdditn
dRs'||ilirgCostdcoquio
I Snpprtitg Pktres
]Pefutmfl|ce Band
cfli ber€ed|eal at
Addess
Tebphore No-

page 13 of 14
fur-
ANNEX A-{

Ortllqigh lrlf
(tjarlp)

A('d€ss :
TeleptprE No. :

In tis ffi to: (t) the ruth ild Ycn*ty d ore iotegriur €) ttd dtplicate
canreclirr, |
fle rrE fid tr]nnr rcprorlrrf<n d tre clrird doornerls; flIl (9) _frr* dcunerts
cofr.es
coiiam *icfy !g fte fieiC clbcfisn of rcqriencnts nd tre deiabd esctifi.n thecot

Verytrufy yorrrq

(Ptin&.lt lfirlc and Sipefrne,


(Dcslitrffiltim)
SUBSCRIBED AtfDsK)Rtl b beftre rne tf,s By d - n-
dtar{ odining ?istnr r coEeieril Evirterc d lffi'ficdin I iss|red at
-
NOTARYPUBLIC

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