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
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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 ofrent, 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)