REPUBLIKA NG PILIPINAS LUNGSOD NG CEBU ‘TANGGAPAN NG SANGGUNIANG PANLUNGSOD CEBU CITY HALL, TEL. NO. 7-36-31 7-60-19 8TH SANGGUNIANG PANLUNGSOD EXCERPT FROM THE MINUTES OF THEREGULAR SESSION HELD 8Y THE SANGGUNIANG PANLUNGSOD OF THE CITY OF CEBU IN ITS SESSION HALL ON JUNE 16, 1999. PRESENT: Hon, Renato V. Osmefia . ss. « Presiding Officer Hon. Franklin N. Seno vse Pres. Protempore Hon. Michael L. Rema Ae Maj. Floor Leader A Hon, Rogelio V. Osmefia »...Asel. Maj. Floor Leader Hon. Ronald R. Cuenco . Member Hon. Firmo S, Dayao . Member oe Hon, Ernesto A. Elizondo . Member ETH. Hon. Procopio &, Fernandez Member “ Hon: Eugenio F. Gabuya, Jr. vee se Member Hon. Edgardo C, Labella . Member Ron, Meruele, Levan = Neca Member Hon. Anthony Jones Luy .. Member Hon. Laurito M, Malinao Member Hon, Jose F. Navarro . +. Member Hon. Ananias. G. Ouano +s Member Hon, Jocelyn G, Pecquera ves Member Hon, Fe Mantua Ruiz .... Member ABSENT: Hon. Rodolfo Y, Estella w+. Member Hon. Felixberlo A. Rosito ++... Member (Sick Leave) RESOL' The Sangguniang Panlungsod of the City of Cebu, on molion of Member Legaspi, seconded by Members Pesqueta and Seno, RESOLVED, lo approve the following ordinance: ORDINANCE No, 1770 AN ORDINANCE IMPLEMENTING BALANCED HOUSING AS PROVIDED FOR IN SECTION 18 OF R.A 7279,- OTHERWISE KNOWN AS ‘URBAN DEVELOPMENT AND HOUSING'ACT OF 1992", AND PROVIDING FOR THE MECHANISM THEREFOR. WHEREAS, the Constitution, in Arlicle 13, Section 9 thereof, provides that the State shall, by law and for the common good, undertake, in cooperation with the private sector, a continuing program of urban land reform and housing which will make available at affordable cost decent housing and basic cervices to the underprivileged and homeless cliz ens in urban centers and resettlement areas. I! shall also promote adequate employment opportunities to such citizens. in the implementation of such program the slate shall respect the righis of mall properly owners;REPUBLIKA NG PILIPINAS LUNGSOD NG CEBU = TANGGAPAN NG SANGGUNIANG PANLUNGSOD * CEBU CITY HALL TELNO. 7-36.31 7-60.19 (Res. No, '99-4632, Ord, No. 1770, dated June 16, 1999, cont’. d) > page2- WHEREAS, in response to the cbove constitutional mandale, the Philippine Congress, on February 3, 1992, casted Republic Acl 7279. otherwine known as the Urban Development and Housing Act of 1992, which look affect on March 29, 1992; WHEREAS, R.A. 7279, in Section 18 thereof, provides for a Balanced Housing Dev elopment whereby developers ofp rep oved subdivision projects shall be required to develop an area for socialized h outing; WHEREAS, the above-mentioned stalut oy scheme of balanced housing development remains untapped and unprotect ed: worst, It is being ulilized by unscrupulous developers fo get the tax incenliv eunder the said law; WHEREAS, it is Necessary to enact an ordinance thal would ensure the proper implementation of the Balance Housing Scheme as envisioned by RA. 7279; y NOW, THEREFORE, for and in consideration of the foregoing premises, the Sangguniang Panlungeod of the Cily of Cebu, in a regular session assembled, hereby ordaine that: ARTICLE | TILE, GENERAL STATEMENT OF POLICY AND DEFINITION OF TERMS Seclion 1. Tille. ~ This Ordinance thall be known as the “Balanced Housing Ordinance of Cebu Cily’, Section 2, Statement of Policy. - Hl shallbe the policy of the Cebu City Government to adopt a continuing housing and reselllemen! program which wit make available al reasonable and affordable cot! decent housing lo ils urban poor and homeless constituents. Section 3. Definition of Terms, As used in this ordinance, the following are defined: % —“Balanoed Housing’ refers to the housing program whereby developers of proposed subdivisions, lown houses and the like including condominium development for purposes olher than for Socialized housing, is required lo develop an area for socialized housing equivalent to al leasi iwenly percent (20%) of the lotal Subdivision area or total subdiviei on or development cost al the option of the developer,REPUBLIKA NG PILIPINAS -LUNGSOD NG CEBU TANGGAPAN NG SANGGUNIANG PANLUNGSOD CEBU CITY HALL TEL. NO. 7-36-31 7-60-19 (Res. No. ‘99-4632, Ord, No, 1770, dated June 16, 1999, cont'd:) + paged - “Socialized Housing’ refers to housing programs and projects covering houses and lols or home lots only undertaken by the governmen ot the private sector for the under-privileged and homeless cilizens which shall include sites and services development long-term financing, liberalized lerms on interest payments and cuch other “benefils in accordance, wilh the provisions of RA. 7279, “Developers” tefer to individuals, partnerships, corporations or agents thereof who develop or improve a subdivision, townhouse, condominium, and similar development projects. “UDHA' refers to the “Urban Development and Housing Act of 1992". “Projecte’ For. purposes of this ordinance, refer fo residential subdivision townhouse projects, condominiums and other similar development projects "Joint Venture’ refers to the commitment or agreement by two (2) or more persons to carry out a specific or single business enterprises for their mutual benefit, for which purpose they combine their funds, land resources, facilities and services. "Socialized Housing Beneficiaries’ refer to the Homeless and Underprivileged constituents of Cebu Cily whose families reside in urbanized. area and who are qualified and registered in accordance wilh R.A. 7279. “Townhouse Projeol* refers to @ single family allached dwelling usually {wo-slorey containing three or more separale living unils decignedin such a way that they abut each other at the sides, as in a row, and are separated from each other by parly wall, provided with independent access, services and use of land, “Condominium Project” refers to an entire parcel or real property divided or to be divided primarily for residential purposes into condominium units, including all structures thereon. “Condominicim Unit’ refers to a part of the condominium projects intended for any ype of independent use/ownerehip including one or more rooms or spaces localed in one or more floore in building or buildings and such accessories as may be appended Ihereto.REPUBLIKA NG PILIPINAS LUNGSOD NG CEBU TANGGAPAN NG SANGGUNIANG PANLUNGSOD CEBU CITY HALL TEL. NO, 7-36-31 7-60-19 (Res, No, ‘99-4632, Ord, No, 1770, dated June 16, 1999, cont'd.) + page 4- k. ‘New selllemeni’ refers to any new, large scale development consisting of one or several subdivision projects planned to provide housing, work places and facililies within more or less self-contained environment. 4 "Project area’ refers to: a. Subdivision Project withoul housing component,’ the gross developed land area. ». Subdivision Project wilh housing component. 1.4,” gross developed land area; and b.2. aggregate floor area of all housing units. m. ‘Project Cosi’ refers to cost of the project based on the following: a, Current markel value of the raw land plus estimated land development cost plus estimated housing project cost. >. Home Insurance Guaranly, Corporation (HIGC) preliminary appraisal for projects requiring HIGC guarantee. n. “Housing Board’ means the Cebu City Housing Board. ARTICLE I! SCOPE OR COVERAGE, EXEMPTIONS AND OPTIONS AVAILABLE TO DEVELOPERS Section 4. . Coverage - This ordinance shall apply to all residential subdivision, residential condor ium, townhouse projects and/or expansion of existing residential subdivision, residential condominiums and townhouse projects no! otherwise exempled under this ordinance or law, the application of which is still pending before the Office of the Departmen! of Planning and Development and Office of the Building Official reckoned from the dale of affectivily of this ordinance. Section 5. Exemptions ~ in addition to the exemptions enumeraled in Section § of RA 7279, the following shall likewise be exempted from the coverage of this ordinance: a. Development projects for the underprivileged and homeless where the selling price of lol and/or house and lol package does not exceed ONE HUNDRED FIFTY THOUSAND (P 150,000.00) PESOS.REPUBLIKA NG PILIPINAS. LUNGSOD NG CEBU TANGGAPAN NG SANGGUNIANG PANLUNGSOD CEBU CITY HALL TEL. NO. 7-96-31 7-60-19, (Res. No, ‘99-4632, Ord. No. 1770, dated June 16, 1999, cont'd.) - paged - b. Residential’ subdivision, residential condominium projects. and lownhouse projects of co-heirs or members of one and the same family and nol for commercial or business purposes, unless such heirs had previously consiucled a similar project. e, Development projects intended for the purpose other than for residential or housing, ¢.9. industrial or commercial zones or estates. : Section 6. Options.’ - Owners’ and/or developers of development projects covered by {his ordinance shall have the following. options in compliance thereto: a. For main subdivision projects which are limited to the sale of lots only: a.1. Land equivalent to twenty percent (20%) of the total area of the. main subdivision. project shall be developed — for socialized housing; or a.2 A socialized housing projec! equivalent to twenly. percent (20%) of {he main subdivision total project cost. b. Subdivision projects which venture inlo the sale of house and lol packages: : b.1+ Develop a land area equivalent to twenty percent (20%) of the lotai area of the eubdivision project. Furthermore, housing. units equivalent lo twenly percent (20%) of the aggregate floor area of all housing unite of the herein- mention ed subdivision project shall be constructed, b.2 A sovialized housing projecl equivalent to twenty percent (20% of iis total project cost. c, For townhouse and residential condominium unils, a socialized housing projecl equivalent to }wenty (20%) of its total project cost. 4, Aside from what sre provided in the preceding paragraphs, the d houting projec! equivalent to twenly (20%) of total on project cos! may also be complied in the following manner: 4.1 Development of anew celllement as may be authorized or certified by the Housing Board upon favorable endorsement of the Division for the Welfare of the Urban Poor (DUP); Provided, however, that such new seltlement must be located in Cebu Cily preferably the area declared by the S ocializ ed Housing Sile Identification Committee of the cily governm ent;REPUBLIKA NG PILIPINAS LUNGSOD NG CEBU “TANGGAPAN NG SANGGUNIANG PANLUNGSOD (CEBU CITY HALL TEL. NO. 7-36-31 7-60.19 (Res. No. ‘99-4632, Ord. No. 4770, dated June 16, 1999, cont'd.) + page 6 - 42 Development upgrading and improvements of Cebu City sium and/or blighted area ac may be certified by Ihe Housing Board upon favorable endorsement of the Division for the Welfare of the Urban Poor (DWUP); 4.3 The developer may also take the option of financing ihe acquisition of the sile or sites, equivalent to twenly (20%) percent of his project cosi, identified by the Socialzed Housing Sile Identification Committee as suileble for socialized housing and cerlified as. such by the Housing Board; ” 4.4 The developer may also enter into-a joint venture project or agreement with the Cebu Cily Government to develo a socialized housing project; provided, that his parlicipalion shall-only be limited to twenty percent (20%) equival enl to the area cost of his subdivision or development project s; 4.5 Purchase of bonds floated or that may be floated bylh eCity of Cebu for the purpose of raising resources to finarice ile socialized housing projects. The bonds purchased, vhich shall’ be equivalent to twenly percent (20%) of, the developer's lolal project cost, “shall be covered by @ Memorandum of Agreement that provides, among aher things, a provision againcl pre-lerminalion and early redemption; 4.6 The developers may likewise opt lo deposit the amount equivalent to twenty percent (20%) of his total project cost tothe Trust Fund set up by the City of Cebu for Ihe purpose of raising resources for ils socialized housing projets. d.7 The developers may also opt to participate in the com munity morlgage program. The herein-mentioned options and/or the development projects, in compliance therewith, must be exercised in Cebu Cily whenever feasible, otherwise it may be implemented anywhere wilhin Region Vil. For this purpose, the owner and/or developer must satisfactorily prove thal ihe compliance is. not feasible in Cebu Cily so that il has to be implemented somewhere elsewit hin the region.REPUBLIKA NG PILIPINAS LUNGSOD NG CEBU TANGGAPAN NG SANGGUNIANG PANLUNGSOD (CEBU CITY: HALL TEL. NO. 7-36-31" 7-60-19 (Res, No. ‘99-4632, Ord. No. 1770, dated June 16, 1999, conl’d.) = page 7 - ARTICLE Il APPLICATION FOR APPROVAL AND ISSUANCE OF DEVELOPMENT PERMIT AND BUILDING PERMIT Section 7. Application. - Upon receipt of an application for the approval of a subdivision project or application for a building permit in the case of townhouse or condominium projects, the Deparment of Planning and Development or Office of the Building Officlal (OBO), as the case may be, musi immediately ascertain whether the herein-mentioned project is covered or not by this ordinanoe and shall. stamp in the application the words “covered” or “nol covered’. In cases where the development project is covered by this ordinance, it shall cause Ihe application and the requirement as provided in Section 8 hereof to be forwarded lo the Office of the Division for the Welfare of the Urban Poor (OWUP) and the Balanced Housing Monitoring Team herein created which must aol on it within twenty (20) days from receipl thereof, and forward its findings and recommendation to the Housing Board which will in turn make ils own recommendation to the Department of Planning and Development and/or the Office of the Building Official, as the case may be, Section, Covered, requirements. - In addition to the existing requirements under P.O. 957, B.P.. 220 P.D. Nos.1096, 1216 and 1086, developers or owners of the development projects shall comply with the following requirements, a. Lelter of option ~ this letter shall state the oplion taken by the developer or owner of the project in accordance with Section 6 hereof; b. Affidavit of Undertaking ~ thie shall contain the undertaking under tha oath of the developer or project owner thel he shell comply with the, option he earlier made; thal he will not start the development project without complying wilh the requiremenls hereinementioned; that he will not dispose or sell the twenty (20%) percent socialized housing equivalent without the clearance of the Division for the Welfare of the Urban Poor (OWUF); and that he will abide by the provisions of this ordinance; c. Two separate plans, one for the regular development projects and another for the socialized housing projects; 4. List of Socialized Housing Program Beneficiaries as prepared by DWUP as mandated by the Cily Registration Committee,REPUBLIKA NG PILIPINAS LUNGSOD NG CEBU TANGGAPAN NG SANGGUNIANG PANLUNGSOD CEBU CITY HALL, TEL, NO, 7-36-31 7-60-19 (Res, No, ‘99-4632, Ord. No. 1770, dated June 16, 1899, cont'd.) ~ page B= No developer or owner of development projects shall start with the projects, unlese the above-mentioned requirements are complied: wilh. Any violation thereof chall mean an automatic disapproval of the application, Section 9. Issuance of development and Building Permil — No development or building permit shall be issued unless all the above-mentined requirements are complied with and upon favorable recommendations of the Monitoring Team crealed under this ordinance. Upon issuance of such pemil, the developer shall commence with the Socialized Housing Project if. opted within @ reasonable period of time, in accordance with sound ‘engin esting practice, ARTICLE IV MONITORING TEAM AND BENEFICIARIES SECTION Section 10, Creallon of Monitoring Team. There shall be created a Balance Housing Monitoring Team, the membership of which shall be composed of the Following: Representative from the Department of Planning and Dev eloprnent; Ropresentalive from the Cily Legal Office; Representalive from the Division for the Welfare of the Urban Poor: Representative from the Department of Engineering and Public Works and Office of the Building Official; e, Representative from other housing agencies, e.g, NHA, HLURB, aeoe ete., f Representative from the Department of Environment end Nalural Resources; g. Two representatives from Peoples Organizalions: one fram the ° South and another from the North. Seetion 11. Functions. ~The Monitoring Team herein created shall have the following functions: a. Sorulinize, examine and study applicalions for subdivision or building permit; b. Conduct an actual on-sile inspection of the socialized housing site designated by the developer ac reflected in his application in compliance with Section 6 and 8 hereof; ©. Validate whether the site to be developed by the developer it in consonance with Ihe site selection criteria as provided in R.A. 7279;REPUBLIKA NG PILIPINAS LUNGSOD NG CEBU TANGGAPAN NG SANGGUNIANG PANLUNGSOD CEBU CITY HALL TEL. NO. 7-26-31 - 7-60-19 (Res. No. 4832, Ord. No. 1770, dated June 16, 1999, cént’d.) -paged- 4. Subnit ils recommendation within reasonable period of lime to the Department of Planning and Development, Office of the Building Official (080), OWUP, and the Housing Board in relation to project applicalions pending before it; ®, Recommend for the disapproval of the application or cancellation of the development or building permil ae the case may be, for volalion of any provision of this ordinance or any other laws or lseuances related lo socialized housing program; f, Adopl and recommend other ‘meacures for the effective implem entation of this ordinance. Seclion12, Beneficiaries. - The Division for the Welfare of the Urban Poor (OWUP) shall maintain a record of socialized housing beneficiaries in every barangay and upon receipt of the application for subdivision permit or building permil, as the ome may be, prepare a lisl of beneficiaries thal can be accommodatedin ihe socidlized housing component of the project. Preference shall be given to the socialized housing beneficiaries of the barangay where the development project is located. ARTICLE V FINANCING SCHEMES, LETTER OF ISSUANCE AND TAX BENEFITS Section13. Financing Scheme. - Upon receipt of the application for Subdivision or building permit and afer il shall have prepared a list of socialized housing beneficiaries who are willing to acquire the twenly (20%) percenl socialized housing component, the Division for the Welfare of the Urban Poor (DWUP) shall study the kind of financing scheme that is affordable to the beneficiaries and will ensure payment on the patl of the developer. In looking for a financing scheme thal is affordable to the beneficiaries, the Division for the Welfare of the Urban Poor chall coordinate wilh the differen! financing agencies, the developers whenever necessary and the prospective beneficiaries who have programs for socialized housing and such schemes shall be submitted before the issuance of devélopment permit Seclion14. Leiter of Guaranty. ~ After approval of the subdivision permit and when compliance of this ordinance Is already ensured, the Cily Government, as asturance thereof, shall issue a Leller of Guaranty (LOG) to the developer, The LOG shall state, among other things, that the Cebu Cily Government guaraniees payment by {he beneficiaries according lo the financing Scheme agreed upon and shall underlake to ascisl the developer in facililaling early return of the latter's investment,REPUBLIKA NG PILIPINAS LUNGSOD NG CEBU TANGGAPAN NG SANGGUNIANG PANLUNGSOD (CEBU CITY HALL TEL. NO. 7-36-31 7-60-19 (Res. No, '99-4692, Ord, No. 1770, dated June 18, 1999, cont'd.) = page 10 - Seclion 15, Tex Benefits, - Nolwihstanding the tax and regulation incentives and benefits granted to the developers or socialized housing component equivalent {o twenty (20%) percent of the project area on cost, they shall also be exempted from any local tax imposition and regulation fee. ARTICLE Vi PERFORMANCE BOND Section 16. The developer, as determin ed by the Monitoring Team, shell submit a Performance Bond wilh cufficient wrelies in an amcunt equivalent to the value of the twenly (20%) percent Socialized Housing Project. ARTICLE Vit PENALTY, REPEALING, SEPARABILITY ANO EFFECTIVITY CLAUSES Section 17. Penally. ~ Violation of any provision of this ordinance shall, upon final conviction by court of competent jurisdiction, be punished by imprisonment of noi exceeding one (1) year ot fine of noi exceeding FIVE THOUSAND (P 5,000.00) PESOS or both al the discretion of the courl, The penallies herein imposed shall be wilhoul prejudice 10 the disapproval of the application for subdivision or building permit ot cancellation of one already issued, ion 18, Repealing Clause. ~ All Ordinances, Executive Orders ot any issuances by the Mayor inconsistent with the provisions of this ordinance are hereby repealed or modified accordingly. Section 19. Separabilily Clause. ~ If, for any reason, any section or provision of this ordinance or any porlion theréof of the application of such seclion, provision or portion thereof to any person or developer is declared invalid, illegal or unconstitutional, the remainder of this ordinance shall remain effective and operational. Section 20. Effectivily Clause, - This ordinance shall lake effeot ten (10) dayc afer ils publication in a newepaper of general circulation in the Cilies and Province of Cebu CARRIED UNANIMOUSLY + seas cffhnes 1 hereby cerlify to the comeciness of - the © aforequoled reeclution/ardinance Rob, ESTRELLA F, DE LOS REYES Cily Secretary ev ATTESTED APPROVED WN ff fom Alvin @. Adgeon SUN 25 1925 RENATO V. OSMENA Presiding Officer jbae