REPUBLIC OF THE PHILIPPINES NATIONAL ECONOMIC AND DEVELOPMENT AUTHORITY MAY 11 2022 HON. EDUARDO D. DEL ROSARIO DEPARTMENT OF HUMAN S Secretary AND URBAN DE! Department of Human Settlements and Urban Development DHSUD Building, Kalayaan Avenue, corner Mayaman Street, Diliman, Quezon City nie mf] INbredt yall SUBJECT: _ Revised resolution on the joint determination of the economic housing price ceiling Dear Secretary Del Rosario This refers to the joint determination of the economic housing price ceiling of the Department of Human Settlements and Urban Development (DHSUD) and the National Economic and Development Authority (NEDA). As agreed, for projects with existing license to sell, the new price ceiling of PHP 2,500,000 shall apply only to unconstructed economic housing units, provided that developers submit updated inventory data to DHSUD. Meanwhile, unsold units shall use the old price ceiling. In this regard, we are pleased to endorse the revised resolution on the joint determination of the economic housing price ceiling. Thank you. Very truly yours, GB ese, i IRK KENDRICK T. CHUA 2s€5e67 Socioeconomic Planning Secretary Attachment: Revised resolution on the joint determination of the economic housing price ceiling Revised resolution on the joint determination of the economic housing price ceiling Page 1 of 1JOINT DETERMINATION OF ECONOMIC HOUSING PRICE CEILING WHEREAS, Republic Act No. 11201, or the “Department of Human Settlements and Urban Development Act”, mandates that the price ceiling for economic housing shall be jointly determined by the Department of Human Settlements and Urban Development (DHSUD) and the National Economic and Development ‘Authority (NEDA) at any time but not more than once every two (2) years to conform to prevailing economic conditions; WHEREAS, the prevailing price ceiling of One Million and Seven Hundred ‘Thousand Pesos (P1,700,000.00) for economic housing was determined and set on June 08, 2015 under Housing and Urban Development Coordinating Council (HUDCC) Resolution No. 02, Series of 2015, pursuant to Section 15 of Republic Act No. 8763, or the “Home Guaranty Corporation Act of 2000”; WHEREAS, since the last revision of the economic price ceiling in 2015, the costs of raw land and its development, construction materials, and labor have steadily and significantly increased, as evidenced by the various economic indices as well as data from the Regional Tripartite Wages and Productivity Board; WHEREAS, based on data from the Philippine Statistical Authority, there is a 5.5% increase in the Consumer Price Index (CPI) and a 12.8% increase in the Construction Materials Wholesale Price Index (CWMPI) from June 2015 to August 2020 while data from the Regional Tripartite Wages and Productivity Board also noted a 4.88% increase on the cost of labor for the past two years; WHEREAS, both the DHSUD and NEDA recognize the need to adjust the price ceiling for economic housing, given that prices for factors of production have increased since 2015 and that adjustment thereof is expected to encourage production and competition in the economic housing segment, while still ensuring the affordability for its target beneficiaries; WHEREAS, after multiple rounds of discussion and consultation, both the DHSUD and NEDA have jointly determined the price ceiling for economic housing that conforms to the prevailing economic conditions is TWO MILLION AND FIVE HUNDRED THOUSAND PESOS (P2,500,000.000) which will not only match the rising costs being incurred by the developers in housing construction and development but more importantly, will also accelerate housing production, promote competition, and thereby improve housing stock quality while at the same time, its affordability for the intended average and low-incomePage 2 earners as the target market is equally ensured and safeguarded in accordance with Batas Pambansa Blg 220; WHEREAS, for the implementation of the revised price ceiling of TWO MILLION AND FIVE HUNDRED THOUSAND PESOS (P2,500,000.000), the DHSUD and other attached shelter agencies shall closely monitor and evaluate evident improvements in the quality of economic housing, such as the adoption of innovative technologies and better and higher level of compliance to the minimum requirements prescribed by Batas Pambansa Blg. 220, towards strengthening the housing and urban development sector's performance monitoring and assessment. WHEREAS, under the prevailing price ceiling, there are still economic housing units with existing license to sell that remain unsold and unconstructed. The revised price ceiling of TWO MILLION AND FIVE HUNDRED THOUSAND PESOS. (P2,500,000.00) shall apply only to unconstructed housing units, provided that developers submit updated inventory data to DHSUD, and unsold units shall continue to use the old price ceiling of One Million and Seven Hundred Thousand Pesos (P1,700,000.00); WHEREFORE, premises considered and pursuant to Section 23 of Republic Act No. 11201, the Department of Human Settlements and Urban Development and the National Economic and Development Authority jointly DETERMINE, as it is hereby DETERMINED, that the revised price ceiling for economic housing be TWO MILLION AND FIVE HUNDRED THOUSAND PESOS (P2,500,000.000). SIGNED this ___ day of. , 2022, in Quezon City and Pasig City, Philippines. DEPARTMENT OF HUMAN NATIONAL ECONOMIC AND SETTLEMENTS AND URBAN — DEVELOPMENT AUTHORITY DEVELOPMENT By: EDUA 'L. KENDRICK T. CHUA Secretary Secretary