Regulatory Power

The Authority shall have the power to regulate the internal affairs of Housing
Cooperatives such as:

a. Exercise of rights and privileges of members;

b. Formulation of rules and procedures and the conduct of meetings of
General Assembly, Board of Directors and Committees;
c. Manner of election and qualifications of Officers, Directors and
Committee Members;
d. Allocation and distribution of net surplus; and
e. Other matters relating to the internal affairs of Housing Cooperatives.
e. All matters relating to the technical aspects of the housing program
and such other similar matters affecting the Housing Cooperatives shall
be in accordance with the standards promulgated by existing laws.
Settlement of Disputes
• Intra/inter cooperative disputes shall be settled as far as practicable
through the conciliation-mediation mechanism embodied under RA
9520, Art. 137, cooperative by-laws, and pertinent issuances.
Joint Monitoring and Evaluation
Committee

• A Joint Monitoring and Evaluation Committee has

been created, composed of CDA, as the lead agency,
NHA, HLURB, HDMF, HUDCC, SSS, LBP, DBP, SHFC,
HGC, DILG, DENR, concerned cooperative sector and
other appropriate government agencies and financial
institutions.
The Committee shall have the
following functions
1. To formulate joint standards for the proper
implementation, monitoring, organization, management,
and development of cooperative housing project, all
matters relating thereto.
2. To assist in settling inter/intra cooperative disputes.
3. To submit annual accomplishment report to the Authority.
4. To recommend changes to this IRR from time to time as it
may deem necessary.
 WHAT
IS A
COOPERATIVE
?
Purposes of Cooperatives
(1) To encourage thrift and savings mobilization among the members;
(2) To generate funds and extend credit to the members for productive
and provident purposes;
(3) To encourage among members systematic production and
marketing;
(4) To provide goods and services and other requirements to the
members;
(5) To develop expertise and skills among its members;
(6) To acquire lands and provide housing benefits for the members;
(7) To insure against losses of the members;
(8) To promote and advance the economic, social and educational status of
the members;
9) To establish, own, lease or operate cooperative banks, cooperative
wholesale and retail complexes, insurance and agricultural/industrial
processing enterprises, and public markets;
(10) To coordinate and facilitate the activities of cooperatives;
(11) To advocate for the cause of the cooperative movements;
(12) To ensure the viability of cooperatives through the utilization of new
technologies;
(13) To encourage and promote self-help or self-employment as an engine
for economic growth and poverty alleviation; and
(14) To undertake any and all other activities for the effective and efficient
implementation of the provisions of this Code.
Objectives and Goals of a
Cooperative.
(a) Provide goods and services to its members to enable them
to attain increased income, savings, investments,
productivity, and purchasing power, and promote among
themselves equitable distribution of net surplus through
maximum utilization of economies of scale, cost-sharing
and risk-sharing;
(b) Provide optimum social and economic benefits to its
members;
(c) Teach them efficient ways of doing things in a cooperative
manner;
(d) Propagate cooperative practices and new ideas in business
and management;
(e) Allow the lower income and less privileged groups to
increase their ownership in the wealth of the nation; and
(f) Cooperate with the government, other cooperatives and
people-oriented organizations to further the attainment of
any of the foregoing objectives.
Types of Cooperative
(a) Credit Cooperative
(b) Consumers Cooperative
(c) Producers Cooperative
(d) Marketing Cooperative
(e) Service Cooperative is one which engages in medical and dental care,
hospitalization, transportation, insurance, housing, labor, electric light and
power, communication, professional and other services;
(f) Multipurpose Cooperative is one which combines two (2) or more of the
business activities of these different types of cooperatives;
(g) Advocacy Cooperative
(h) Agrarian Reform Cooperative
(i) Cooperative Bank;
(j) Dairy Cooperative
(k) Education Cooperative
(l) Electric Cooperative
(m) Financial Service Cooperative
(n) Fishermen Cooperative
(o) Health Services Cooperative
(p) Housing Cooperative
(q) Insurance Cooperative
(r) Transport Cooperative
(s) Water Service Cooperative
(t) Workers Cooperative
The Legal Bases
1. Article II, Section 9 of the 1987 Philippine Constitution,
states that:

“The State shall promote a just and dynamic social order that
will ensure the prosperity and independence of the nation
and free the people from poverty through policies adequate
social services, promote full employment, a rising standard of
living and an improved quality of life for all.”
2. Article 62, number (13) paragraph 2 Chapter V of
Republic Act 9520, otherwise known as the Philippine
Cooperative Code of 2008, states that:

“The Authority, in consultation with appropriate

government agencies and concerned cooperative
sector, shall issue rules and regulations on all matters
concerning housing cooperatives.”
3. Section 13, Rule I, Part II of the Revised Rules and
Regulations Implementing Certain and Special
Provisions of the Philippine Cooperative Code of 2008,
states that:

“A Joint Monitoring and Evaluation Committee shall be

composed of CDA, as the lead agency, NHA, HDMF,
DHSUD, SSS, LBP, DBP, SHFC, NHMFC, HGC, DILG, DENR,
concerned cooperative sector and other appropriate
government agencies and financial institutions”.
HOUSING COOPERATIVES
•Refers to a type of cooperative organized to
assist or provide access to housing for the
benefit of its regular members who actively
participate in the savings program for housing. It
is co-owned and controlled by its members.
Cooperative Housing Program
• Refers to an alternative housing approach, in
partnership with government/non-government
agencies involved in a housing program, undertaken
by a financially and organizationally stable cooperative
to address the housing problems of its regular
members primarily the low-income earners, through
its own cooperative efforts in planning and direct
production of adequate, decent and affordable,
housing units.
Cooperative Housing Project
•Refers to the project of a Housing Cooperative or
any other types of cooperatives.

Housing Project
•Housing Cooperatives may engage in the
construction, development and/or management
of housing projects.
PURPOSE
1. To create a resource mobilization program to ensure
financial stability for the cooperative.

2. To foster and strengthen the principle of

cooperativism by promoting a comprehensive and
integrated community development program which
is planned and managed by the cooperative
members thereby ensuring a sustained and self-
reliant cooperative community.
3. To develop collaborative efforts and partnership with other
cooperatives, with the CDA, NHA, HDMF, SSS, LBP, DBP, HUDCC,
HLURB,DILG, SHFC,HGC and other public or private entities thereby
assuring availability of resources and lower cost of housing
development.

4. To expand the cooperative business operations by stabilizing the

available resources for the continuing production of housing units for
its members.

5. To undertake such other economic or social activities as may be

necessary or incidental in the pursuit of the foregoing purposes.
ORGANIZATION
• Fifteen (15) or more natural persons
who are Filipino citizens, of legal age,
having a common bond of interest, and
actually residing or working in the intended area of
operation, may organize a housing cooperative.

• Registration Jurisdiction. Housing Cooperatives shall file their

duly accomplished application for registration with the CDA
Extension Office, which shall have jurisdiction over the said
cooperative
Requirements for Registration
A. New Applicant
(1) Cooperative Name Reservation Notice (CNRN);
(2) (2) Articles of Cooperation and By-Laws;
(3) (3) Sworn Statement of the treasurer elected by the subscribers showing that at least twenty-
five per centum (25%) of the authorized share capital has been subscribed and at least twenty-
five per centum (25%) of the total subscription has been paid: Provided, That in no case shall
the paid-up share capital be less than Fifteen Thousand Pesos (15,000.00);
(4) Surety Bond of Accountable Officers handling funds, properties and securities;
(5) Pre-Registration Seminar (PRS);
(6) Economic Survey;
(7) Pre-Feasibility Study of the housing projects undertaking as reviewed by NHA;
(8) Undertaking to Change Name in the event that another cooperative has acquired prior right to
the use of the proposed name; and
(9) Registration Fee.
Capitalization
For purposes of registration with the
Authority, a housing cooperative shall have a
minimum paid-up capitalization of
Fifteen Thousand Pesos (₱ 15,000.00).
Capital Sources
• Cooperatives registered under this Code may derive their capital from any
or all of the following sources:
(1) Member’s share capital;
(2) Loans and borrowings including deposits;
(3) Revolving capital which consists of the deferred payment of
patronage refunds, or interest on share capital; and
(4) Subsidies, donations, legacies, grants, aids and such other
assistance from any local or foreign institution whether public or
private: Provided, That capital coming from such subsides, donations,
legacies, grants, aids and other assistance shall not be divided into
individual share capital holdings at any time but shall instead form
part of the donated capital or fund of the cooperative.
ORGANIZATIONAL STRUCTURE
General Assembly
•Shall mean the full membership of the
cooperative duly assembled for the purpose of
exercising all the rights and performing all the
obligations pertaining to cooperatives, as
provided by the Code, its articles of cooperation
and bylaws.
Membership
• Membership in Housing Cooperatives shall be open to
all natural Filipino citizens who meet the qualifications
for membership prescribed in the Articles of
Cooperation and By-laws.
Proof of Ownership/Possessory Right
of Member to House and Lot/Unit.
•Capital /member’s equity – represents
ownership of a member to a portion of the
Cooperative Housing project or structure.
Tenurial Arrangement
• The Housing Cooperative is owned and managed by the
cooperative and a Certificate of Occupancy is issued to
members as an alternative security-based tenurial
instrument. The cooperative may own the property/lot,
developed the property and constructed the housing unit by
administration or by contract. No individualization of the
title, cooperative assumed the full obligation to the financial
institution.
Certificate of Occupancy
•Refers to a certificate issued by the Housing
Cooperative to entitle a member beneficiary to
occupy a specified housing unit on a specified
period as stipulated on a permanent or
continuing basis as provided in the cooperative
bylaws.
COOP PROOF OF OWNERSHIP
• Original/Transfer Certificate of Title/Condominium
Certificate of Title– refers to a certificate issued by the
government of the Philippines under the “Torrens” system
of land registration which assures a land owner that the
land he or she owns is covered by an Original Certificate of
Title (OCT) or the Transfer Certificate of Title (TCT) issued
by the Registry of Deeds. Said title is absolute, indefeasible
and imprescriptible.
Contract of Usufruct
•Refers to an agreement that gives a member the
right to enjoy the property of the cooperative
with the obligation of preserving its form and
substance, unless the title constituting it or the
law otherwise provides.
GOVERNMENT
ASSISTANCE
Financing and Technical
Assistance
• The Authority, in coordination with the appropriate
government agencies and financial institutions, shall
assist the housing cooperative in availing technical
and financial assistance for its housing projects.
Financing and Technical
Assistance
• A blanket loan or long term wholesale loans for the
financing of the housing projects undertaken by
housing cooperatives shall be created by the
appropriate housing agencies and government
financial institutions (GFIs) with interest rates and
terms equal to, or better than those given for
socialized housing project in accordance with their
charters and rules and regulations.
Blanket Loan/Wholesale Loan

• Refers to a housing loan contracted/obtained by a

housing cooperative intended to identify member-
beneficiaries for land acquisition, land improvement,
house 7 construction, home improvement, or
renovation and other similar purposes.
Financing and Technical
Assistance
• CDA and GFIs shall exercise prudence in providing
special loan windows to housing projects of
cooperatives and shall craft the Joint Implementing
Rules and Regulations on Establishing Special Loan
Windows for Housing Projects of Cooperatives which
includes the system of identifying, measuring,
monitoring and controlling risks arising from said
activity.
Documentary Requirements in
Availing for Technical and/or
Financial Assistance.
The cooperative in availing technical and/or financial
assistance shall file its application with the appropriate
government financial institutions. GFIs shall provide
special accommodation/assistance and leniency to
cooperatives relative to evaluation and assessment for
the availment of loan under the special loan window
for housing projects of cooperatives.
Conditions for the Proposed
Housing Project
The proposed housing project of the cooperative shall
have the following features as certified by the NHA or
any other appropriate government agency:

1. Availability of Land Suitable for Housing. The land

proposed for housing is classified as a safe and
buildable area and not affected by any government
infrastructure project, agricultural or industrial
reserve.
Conditions for the Proposed
Housing Project
2. Land Ownership. The land is owned by the cooperative or
there is an on-going negotiation between the landowner
and cooperative through a Contract to Sell or Reservation
Agreement between the landowner and the cooperative and
that the land is free from any liens and encumbrances.

3. Target Beneficiaries. The proposed housing project should

have at least thirty (30) initial target member-beneficiaries.
Stages of Organizing a Housing
Cooperative

• Social Preparation. This refers to the Formation of

proposed members and, interim officers including the
members of the housing committee; conduct of
orientation, seminar on financial literacy, Pre-
Membership Education Seminar (PMES) and other
capacity building activities.
• Market Survey. The strategy employed by the
cooperative to enlist, encourage and determine the
eligibility of target member beneficiaries. The survey
shall determine the bracket for the pricing, taking into
consideration the financial capacity of the members;
helps identify the target beneficiaries; eligibility
requirement and the screening of member as well the
beneficiaries.
• Resource Mobilization. This means engaging in capital
build up activities. This includes identification of
schemes for the capital build up program and
livelihood activities that the coop will undertake to
support the target member beneficiaries to augment
their sources of money to enable them to pay the
housing loan availed from the cooperative.
• Registration. This is the operative act granting
juridical personality to a proposed cooperative as
evidenced by a Certificate of Registration. Registration
of a cooperative would be Housing Cooperative is
governed by Rule 1, Part 2 of the Revised Rules and
Regulations Implementing certain and Special
Provisions of the Philippine Cooperative Code of 2018.
 MATRIX ON PHASES AND CORRESPONDING STEPS IN
IMPLEMENTING A HOUSING PROJECT AND CORRESPONDING
INTERACTION WITH CONCERNED AGENCY/ORGANIZATION
PHASE STEP ACTIVITY AGENCY/ORGN.
RESPONSIBILITY
A. ORGANIZATION

1. Social Preparation Grouping/formation of proposed Coop founding members,

members NGOs, other concerned
gov’t agencies
Orientation NGOs, NHA, CDA, Other
GOs
Capacity building activities NGOs, NHA, CDA, other
GOs
Financial literacy NGOs, NHA, HDMF, CDA,
other GOs
Pre-registration Seminar CDA
PHASE STEP ACTIVITY AGENCY/ORGN.
RESPONSIBILITY

2. Market Survey Determine eligibility requirements for target Cooperative

member beneficiaries

Screening of target member beneficiaries Cooperative

Listing/ prioritizing of target beneficiaries Cooperative

PHASE STEP ACTIVITY AGENCY/ORGN.
RESPONSIBILITY
3. Resource Mobilization Identification of schemes for Capital Build Cooperative
up Program
Capital Build up generation Cooperative/member

Implementation of livelihood Cooperative/member

activities/program
Preparation of documentary requirements Cooperative
for registration
Submission of Pre-feasibility study to NHA Cooperative

Review and endorsement of pre-feasibility NHA

study of the project to CDA
PHASE STEP ACTIVITY AGENCY/ORGN.
RESPONSIBILITY

4. Registration for new Review of documentary requirements CDA

(and amendment for
existing) cooperatives

Registration of the cooperatives (registration of CDA

amendment in case the cooperative is already
existing)

Secure permits from other agencies like BIR Cooperative, BIR,

other GOs
PHASE STEP ACTIVITY AGENCY/ORGN.
RESPONSIBILITY

B. PRE-CONSTRUCTION 1. Site/Location Identification of site within the Cooperative

area of operation of the
cooperative
Seek approval of the project Cooperative, LGU, DENR,
from LGU and appropriate etc
agency
2. Land Acquisition Payment of land Cooperative

Land Titling Cooperative, LRA

PHASE STEP ACTIVITY AGENCY/ORGN.
RESPONSIBILITY

3. Land Preparation and Survey

Development Securing permits and licenses
a. License to sell
b. Land conversion clearance
c. Soil compatibility test
d. Geo-hazard evaluation
e. Environmental Clearance Certificate
(ECC)
PHASE STEP ACTIVITY AGENCY/ORGN.
RESPONSIBILITY

4. Housing Project Design Specification of design conforms Cooperative and LGU

to BP 220 and PD 957

Design to include future projects Cooperative and LGU

to be implemented by the
cooperative
PHASE STEP ACTIVITY AGENCY/ORGN.
RESPONSIBILITY

5. Financing Apply financing from GFIs and other Cooperative

commercial banks

Processing and approval of loans of GFIs/Key Shelter Agencies

GFIs/Key Shelter agencies (streamline
requirements as per HUDCC Res. No. 3,
2015)
PHASE STEP ACTIVITY AGENCY/ORGN.
RESPONSIBILITY

C. CONSTRUCTION 1. Coop as the developer Activities in actual building a housing Cooperative

project

2. Partner with another Employ members as workers Cooperative

accredited coop developer

3. Partner with accredited Cooperative

contractor of PCAB of DTI
PHASE STEP ACTIVITY AGENCY/ORGN.
RESPONSIBILITY

D. POST CONSTRUCTION 1. Inspection Cooperative, concerned

agency/ies

2. Project Turn-over Cooperative, developer

3. Awarding Cooperative
PHASE STEP ACTIVITY AGENCY/ORGN.
RESPONSIBILITY

E. ESTATE MANAGEMENT Disposition of completed units to Cooperative

member beneficiaries

Billing and collection Cooperative

Maintenance and conservation of Cooperative

housing project and facilities

Conduct activities to build harmonious Cooperative

relationship among member residents
Estate Management
•Refers to a set of functions for the purpose of
preserving the material, economic, social and
other benefits derived from living in this type of
housing.
Estate Management
• The Housing Cooperative and other types of cooperative
with cooperative housing project, as the recognized
community associations in the area, may manage and
maintain the entire housing project with the following
relevant functions:

1. Manage & maintain the housing structure, its common

areas and facilities;
2. Set up financial management system;
3. Provide access to services;
4. Ensure safety and security;
5. Provide environmental protection;
6. Establish a system for collection of fees and/or generating
resources; and
7. To exercise such other functions necessary to carry out the
forgoing.
PHASE 1
BENEFITS
1. TAX EXEMPTION
a. Income Tax
b. Value-Added Tax
c. Documentary Stamp Tax
d. Local Taxes
e. Real Property Tax
Privileges of Cooperatives
1. Safety Deposit Box – Municipal or City Treasurer and other
government offices – free of charge
2. Coops organized by Government employee – free use of any
available space
3. Franchise – cold storage, ice plant, electricity, transportation
4. Preferential right to supply govt institution with rice, corn, grains
marine products, meat, milk vegetable and other agri-products
5. Preferential treatment in the allocation of fertilizers, seeds agri-
inputs and implement, rice distribution
6. Preferential and equitable treatment in the allocation or control of
bottomries of shipping vessels
7. Preferential right in the management of public market
8. loan credit line, rediscounting of loans – DBP/Land Bank
• Establishment of Cooperative Deposit Insurance System
9. Public Transport – Financing support, preferential right to manage
public terminals and ports, franchise on routes for public transport
10. Exempt from prequalification bidding requirements
11. Preferential right in the management of school canteen and other
services
12. The appropriate housing agencies and government financial
institutions shall create a special window for financing housing projects
undertaken by cooperatives, with interest rates and terms equal to, or
better than those given for socialized housing projects. This financing
shall be in the form of blanket loans or long-term wholesale loans to
qualified cooperatives, without need for individual processing.
ADVANTAGES OF HOUSING
COOPERATIVE
• LAND BANKING

• Increase Housing Stock

• Dignity: Increase quality of settlement development – Focus on user

interest, holistic, family, continuing education, quality of life,
humanization.
• Affordability – Savings – Pooled Resources, Economies of Scale,
Bayanihan, Sweat Equity, Volunteerism, Co-operation, Socialize
Housing, Bargaining Power, Coop Privileges.

• Membership Control of Resources – Participatory, Sense of

Ownership, Freedom to build, democratic control, access, self-
regulation, commons, clean and green environment
• Empowerment – Community, Solidarity, Mutual Help, Sense of
Belonging, Sharing, autonomy, coop and community values, collective
strength, sense of accomplishment.