4 REPUBLIC OF THE PHILIPPINES Cn) Department of Human Settlements and Urban Development Kagawaran ng Ponanahanang Pantao at Pagpapaunlad ng Kalunsuran Department Order No. 202! 004 Series of 2021 PROVIDING FOR THE PARTICIPATIONS OF DEVELOPERS AS INCENTIVIZED COMPLIANCE TO THE BALANCED HOUSING DEVELOPMENT PROGRAM, THEREBY AMENDING SECTIONS 4.4 AND 11 OF HLURB RESOLUTION 965, SERIES OF 2017 Pursuant to Section 3 of Republic Act 10884, otherwise known as the “Balanced Housing Development Program Amendments” and Section 7 (c) and 25 (b) of Republic Act No. 11201, otherwise known as the “Department of Human Settlements and Urban Development Act”, the following Rules and Regulations (hereinafter “Rules”) is hereby issued: Section 1. Developers’ Participations as Incentivized Compliance. Developers may comply with the Balanced Housing Development Program through non-salable and non-recoverable participation as incentivized compliance in accordance with the following: 1.1. Implementation of land development in socialized housing programs or projects under the BALAI Filipino Communities; 1.2. Construction of the housing or building components and improvements on socialized housing programs or projects on land owned by or donated to the government, such as housing for AFP personnel, street children, indigent elderly and people with disability, or other similar types of projects with identified beneficiaries entitled thereto and not otherwise disqualified under existing laws and regulations; 1.3. Rehabilitation of calamity-stricken communities; 1.4 Land acquisition for socialized housing programs and projects in areas which have been declared under state of calamity and which have sustained considerable loss or damage to houses and properties; Provided that, the availment of this participation shall be made within two (2) years following the declaration of state of calamity by competent authority upon recommendation by the National Disaster Risk Reduction and Management Council (NDRRMC) or the Local Disaster Risk ny ‘eSUD ig Waayaun Avenue corer Mayan Ses, iia, Qusee Cty matinto@ened rush OW GOMSLOEOREReduction and Management Council (LDRRMC), as the case may be. 1.5 Improvement of existing open spaces in socialized housing programs and projects including the institutionalization of urban agriculture, strengthening livelihood projects, provision of weliness programs and amenities, establishment of Water, Sanitation and Hygiene (WASH) facilities, and installation of communication facilities as may be allowed under existing rules and regulations. Section 2. Computation of the Incentivized Compliance. Considering that the developers’ enumerated participations under this Rules are non- salable and non-recoverable, the incentivized compliance shall be equivalent to at least twenty-five percent (25%) of the required fifteen percent (15%) or five percent (5%) of the total project cost of the main subdivision or condominium project respectively, as required under Section 18 of Republic Act No. 7279, as amended by Republic Act No. 10884, and in accordance with existing rules, regulations and guidelines. Section 3. Direct Participation and Future Compliance Credits. Any of the enumerated participations provided under Section 1 hereof may likewise be directly undertaken through the execution of a Memorandum of Agreement, and such participation may be credited as compliance of present or future projects of the participating developer, or any of its affiliates or subsidiaries, in accordance with existing rules and guidelines. In case the participation as provided under Section 1 hereof is not yet identified or available at the time of submission of the proof of compliance of the developer for the issuance of the main project's Certificate of Registration and/or License to Sell, the required amount of incentivized compliance may be provisionally deposited in an escrow account in any authorized bank for future utilization and allocation. Section 4. Administrative Expenses. An amount not exceeding fifteen percent (15%) of the total incentivized compliance of the immediately preceding year may be allocated and utilized for administrative expenses in support of the Department’s mandate to ensure a continuing program of housing and urban development. Administrative Expenses shall include the acquisition, maintenance, and/or refurbishment of property, plant and equipment, the payment ofrent, utilities, postage, supplies and other expenses necessary to support day-to-day operations. Section 5. Amending Clause. The provisions under Sections 4.4 (Percentage of Investment) and 11 (Incentivized Compliance) of HLURB Resolution No. 965 S. 2017 insofar as contrary or inconsistent with this Rules are hereby deemed modified or amended accordingly. All other Rules and Guidelines relating to the implementation of the Balanced Housing Development Program which are contrary to or inconsistent with this Rules are likewise deemed amended or modified accordingly. Section 6. Separability Clause. The provisions of this Order are separable, and in the event that any provision herein is declared null and void or ineffective, the validity of all other provisions shall not be affected thereby. Section 7. Effectivity. This Rules shall take effect fifteen (15) days after its publication in the Official Gazette or in a newspaper of general circulation in the Philippines. (March t1_, 2021)