Lesson 2: SOCIAL DETERMINANT

Introduction

Housing, or more generally living spaces, refers to the construction and assigned
usage of houses or buildings collectively, for the purpose of sheltering people — the
planning or provision delivered by an authority, with related meanings.

1. The social issue is ensuring that members of society have a home in which to live,
whether this is a house, or some other kind of dwelling, lodging, or shelter.

2. Many governments have one or more housing authorities, sometimes called a

housing ministry, or housing department.

3. Housing is recognized as a social determinant of health. Lack of housing or poor-

quality housing can negatively affect an individual's physical and mental health.
Housing attributes that negatively affect physical health include dampness,
mold, inadequate heating, and overcrowding. Mental health is also affected by
insufficient heating, overcrowding, dampness, mold, and lack of personal space.
Housing can affect the health of children through exposure to asthma triggers or
lead, and through injuries due to structural deficiencies (e.g. lack of window
guards or radiator covers)

HOUSING ISSUES
Issues that affect housing are as follows:

Affordability,

Affordable housing is housing which is deemed affordable to those with a median

household income or below as rated by the national government or a local
government by a recognized housing affordability index. Most of the literature on
affordable housing refers to mortgages and number of forms that exist along a
continuum – from emergency shelters, to transitional housing, to non-market rental
(also known as social or subsidized housing), to formal and informal rental,
indigenous housing, and ending with affordable home ownership
Environmental planning

Environmental planning is the process of facilitating decision making to carry out land
development with the consideration given to the natural environment, social,
political, economic and governance factors and provides a holistic framework to
achieve sustainable outcomes. A major goal of environmental planning is to create
sustainable communities, which aim to conserve and protect undeveloped land

Fair housing

Here are two types of housing discrimination: exclusionary and non-exclusionary.

Exclusionary refers to limiting one's access to housing while one is seeking to rent or
buy housing, while non-exclusionary refers to discriminatory treatment within one's
current housing.

Certain policies that do not explicitly discriminate have also been found to cause
housing discrimination in the United States. Disparate impact is a facially neutral
housing policy that negatively impacts minorities or other protected groups of people.
The Supreme Court upheld the decades long practice of holding housing providers
liable for housing discrimination under a disparate impact theory in 2015. Following
the Supreme Court decision, HUD issued an opinion from their Office of General
Counsel concluding that blanket prohibitions against tenants with criminal
convictions would constitute disparate impact housing discrimination because
incarceration rates in the United States are disproportionate between minorities and
non-minorities.[30] Disparate impact remains controversial among industry and
business professionals because some feel that their freedom in implementing policies
and rules is now limited

Healthiness

Healthy building refers to an emerging area of interest that supports the physical,
psychological, and social health and well-being of people in buildings and the built
environment. Buildings can be key promoters of health and well-being since most
people spend a majority of their time indoors. According to the National Human
Activity Pattern Survey, Americans spend “an average of 87% of their time in enclosed
buildings and about 6% of their time in enclosed vehicles.”
Healthy building can be seen as the next generation of green building that not only
includes environmentally responsible and resource-efficient building concepts, but
also integrates human well-being and performance. These benefits can include
“reducing absenteeism and presenteeism, lowering health care costs, and improving
individual and organizational performance.” In 2017 the Harvard T.H. Chan School
of Public Health published The 9 Foundations of a Healthy Building: ventilation, air
quality, thermal health, moisture, dusts and pests, safety and security, water quality,
noise, and lighting and views

Homelessness

Homelessness is lacking stable and appropriate housing. People can be categorized as

homeless if they are: living on the streets (primary homelessness); moving between
temporary shelters, including houses of friends, family and emergency
accommodation (secondary homelessness); living in private boarding houses without
a private bathroom or security of tenure (tertiary homelessness). The legal definition
of homeless varies from country to country, or among different jurisdictions in the
same country or region. United States government homeless enumeration studies also
include people who sleep in a public or private place not designed for use as a regular
sleeping accommodation for human beings. People who are homeless are most often
unable to acquire and maintain regular, safe, secure and adequate housing due to
income that is inconsistent or lacking altogether. Homelessness and poverty are
interrelated. There is no methodological consensus on counting the homeless and
identifying their needs; therefore in most cities only estimated homeless populations
are known.

Housing discrimination - Housing discrimination refers to patterns of discrimination

that affect a person's ability to rent or buy housing. This disparate treatment of a
person on the housing market can be based on group characteristics or on the place
where a person lives.

The most straightforward form of housing discrimination involves a landlord who

rejects offers from potential tenants based on factors such as race, age, gender, marital
status, source of funding, and others. The landlord may perform the discrimination
explicitly or implicitly. Housing discrimination can also occur among existing tenants,
who may face detrimental treatment in comparison to others for the same reasons.
Housing discrimination can lead to spatial inequality and racial segregation, which,
in turn, can exacerbate wealth disparities between certain groups.
Home ownership
Owner-occupancy or home-ownership is a form of housing tenure in which a person,
called the owner-occupier, owner-occupant, or home owner, owns the home in which
they live. The home can be a house, such as a single-family house, an apartment,
condominium, or a housing cooperative. In addition to providing housing, owner-
occupancy also functions as a real estate investment.

Ownership equity

In finance, equity is ownership of assets that may have debts or other liabilities
attached to them. Equity is measured for accounting purposes by subtracting
liabilities from the value of the assets. Equity can apply to a single asset, such as a car
or house, or to an entire business. A business that needs to start up or expand its
operations can sell its equity in order to raise cash that does not have to be repaid on
a set schedule.

When liabilities attached to an asset exceed its value, the difference is called a deficit
and the asset is informally said to be "underwater" or "upside-down". In government
finance or other non-profit settings, equity is known as "net position" or "net assets".

Rent

Renting, also known as hiring or letting, is an agreement where a payment is made for
the temporary use of a good, service or property owned by another. A gross lease is
when the tenant pays a flat rental amount and the landlord pays for all property
charges regularly incurred by the ownership. An example of renting is equipment
rental. Renting can be an example of the sharing economy.

Subprime lending

The term subprime refers to the credit quality of particular borrowers, who have
weakened credit histories and a greater risk of loan default than prime borrowers. As
people become economically active, records are created relating to their borrowing,
earning, and lending histories. This is called a credit rating; although covered by
privacy laws, the information is readily available to people with a need to know (in
some countries, loan applications specifically allow the lender to access such records).
Subprime borrowers have credit ratings that might include: limited or no debt
experience (so the lender's assessor simply does not know); limited or no possession
of property assets that could be used as security (for the lender to sell in case of
default); excessive debt the known income of the individual or family is unlikely to be
enough to pay living expenses, plus interest and repayment); a history of late or
sometimes payments; failures to pay debts completely (default debt); legal judgments
such as "orders to pay" or bankruptcy.

Subsidized housing

Subsidized housing is government sponsored economic assistance aimed towards

alleviating housing costs and expenses for impoverished people with low to moderate
incomes. In the United States, subsidized housing is often called "affordable housing."
Forms of subsidies include direct housing subsidies, non-profit housing, public
housing, rent supplements, and some forms of co-operative and private sector
housing.

Increasing access to housing may contribute to lower poverty.

Sustainable development.

Sustainable development is the organizing principle for meeting human development

goals while simultaneously sustaining the ability of natural systems to provide the
natural resources and ecosystem services on which the economy and society depend.
The desired result is a state of society where living conditions and resources are used
to continue to meet human needs without undermining the integrity and stability of
the natural system. Sustainable development can be defined as development that
meets the needs of the present without compromising the ability of future generations
to meet their own needs. Sustainability goals, such as the current UN-level Sustainable
Development Goals, address the global challenges, including poverty, inequality,
climate change, environmental degradation, peace and justice.

DEFINITION OF TERMS
Subdivision - defined as any real property, improved, unimproved, or portion
thereof, shown on the last preceding tax roll as a unit or as contiguous units.

Subdivision Project - as defined by P. D. 957 is a tract of land registered under Act

496 (Now P.D. 1529) which is partitioned primarily for residential purpose into
individual lots, with or without improvements thereon, and offered for sale to the
public in cash or installment. It shall include all residential, commercial, industrial and
recreational areas, as well as open spaces and other community and public areas.
·
Simple Subdivision - a subdivision where no street or open space is delineated.

Complex Subdivision -a subdivision with street and / or open spaces.

Square Planning -a subdivision scheme for flat terrain.

Contour Planning - subdivision scheme for a rolling terrain.

Gridiron - a subdivision scheme where the resulting blocks are more or less
rectangular.

Chaplan - indention along corner lots to allow better visibility to perpendicular traffic.

Cul-de-sac - a passage way with only one outlet. A blind alley.

Key Lot- a lot adjoining a comer lot and fronting an intersecting street.

Relocation Survey - the measurement of the land to determine its external boundaries
and ascertain whether or not there arc encroachments.

Subdivision Survey -a survey to determine the boundaries of each lot in the

subdivision project.

Contour Lines - are lines in a topographic map which indicate the elevation of the
land at various sections.

Tie Line - imaginary line connecting point 1 of lot with a reference point, such as a
Bureau of Lands Location Monument (BLLM).

Point of Beginning - the first comer or point 1 of lot.

Tie Point - the reference point or a BLLM. The point of beginning is connected with
the tie point by a tie line.

Environmental Compliance Certificate - a document issued by the DENR Secretary

that the proposed project will not cause a significant negative environmental impact.

Requirements to secure for every person, partnership or corporation under the law
before undertaking any development and before obtaining a license to sell a
subdivision or condominium project.

Environmental Impact Assessment - the process of predicting the likely

environmental consequences of implementing projects, and designing appropriate
preventive, mitigating, and enhancement measures.

Environmental Impact Statement - refers to document/s of studies on the

environmental effects of a project, including the discussions on direct and indirect
consequences on human welfare and ecological and environmental integrity.

(Land) Owner – registered owner of the land subject of a subdivision or a

condominium project

(Land) Developer – person who develops or improves the subdivision or a

condominium project

Acquisition Cost – amount of money or other valuable consideration required to

obtain title.

Amenities – Features, tangible and intangible, that enhance and add value or
desirability of real estate property

Market Value – highest price, estimated in terms of money, which a property will
bring
Master Plan – A Comprehensive plan to guide the long term physical development
for a particular area

Title – the right to ownership of the land

Utilities – The basic service system required by a developed area such as:

 Electricity
 Water
 Telephone
 Gas

Plan and Specifications – all drawing pertaining to development under

consideration, such as:

Building, mechanical and electrical drawings

Includes written instruction, workmanship, style, fabrication, colors and with

supplementing details

Government Housing Regulatory and Support Agencies

1. DHSUD - The DHSUD is an executive department of the Philippine government

that is responsible for the management of housing, human settlements and urban
development. It is also the main planning and policy-making, regulatory, program
coordination, and performance monitoring entity for all housing, human settlements
and urban development concerns.

The DHSUD was the result of a merger of the Housing and Urban Development
Coordinating Council (HUDCC) and the Housing and Land Use Regulatory Board
(HLURB), with the former becoming defunct and the latter reorganized as the Human
Settlements Adjudication Commission (HSAC).
On 14 February 2019, President Rodrigo R. Duterte signed Republic Act No. 11201,
creating the Department of Human Settlements and Urban Development (DHSUD).

2. HUDCC-Housing and Urban Development Coordinating Council

Mandates

The Housing and Urban Development Coordinating Council (HUDCC), under the
immediate control and supervision of the President of the Philippines, is charged with
main function of coordinating the activities of the government housing agencies to
ensure the accomplishment of the National Shelter Program.

Formulate national objectives for housing and urban development and to design
broad strategies for accomplishment of these objectives;

Determine the participation and coordinate the activities of the key government
housing agencies in the national housing program;

Monitor, review and evaluate the effective exercise by these agencies of their assigned
functions;

Assist in the maximum participation of the private sector in all aspects of housing and
urban development;

Recommend new legislation and amendments to existing laws as may be necessary

for the attainment of government’s objective in housing;

Formulate the basic policies, guidelines and implementing mechanisms for the
disposal or development of acquired or existing assets of the key housing agencies;

Exercise or perform other powers and functions as may be deemed necessary, proper
or incidental to the attainment of its purpose and objectives.

3. HSAC-The HUMAN SETTLEMENTS ADJUDICATION COMMISSION (HSAC)

was reconstituted from the Housing and Land Use Regulatory Board (HLURB) by
virtue of Republic Act No. 11201, as a purely quasi-judicial agency. It is mandated to
adjudicate, among others, disputes relating to real estate development, homeowners
association, and appeals from decisions of local and regional planning and zoning
bodies.
In the performance of its functions, the HSAC is guided by the Constitutional
provision that affords all persons the right to a speedy disposition of their cases before
all judicial, quasi-judicial or administrative bodies.

The HSAC is attached to the Department of Human Settlements and Urban

Development for policy, planning and program coordination only.

4. SHFC-The Social Housing Finance Corporation (SHFC) was created through

Executive Order No. 272 (E.O.272), which directs the transfer of the Community
Mortgage Program (CMP), Abot Kaya Pabahay Fund (AKPF) Program, and other
social housing powers and functions of the National Home Mortgage Finance
Corporation to the SHFC.

Mandate

Under E.O. 272, the SHFC shall be the lead government agency to undertake social
housing programs that will cater to the formal and informal sectors in the low-income
bracket and shall take charge of developing and administering social housing
program schemes, particularly the CMP and the AKPF Program (amortization
support program and development financing program).

5. PAGIBIG-The birth of the Home Development Mutual Fund (HDMF), more

popularly known as the Pag-IBIG Fund, was an answer to the need for a national
savings program and an affordable shelter financing for the Filipino worker. The Fund
was established on 11 June 1978 by virtue of Presidential Decree No. 1530 primarily
to address these two basic yet equally important needs. Under the said law, there were
two agencies that administered the Fund.

The Social Security System handled the funds of private employees, while the
Government Service Insurance System handled the savings of government workers.

Less than a year after on 1 March 1979, Executive Order No. 527 was signed. The order
directed transferring the administration of the Fund to the National Home Mortgage
Finance Corporation, which was one of the operating agencies of the then Ministry of
Human Settlements.
Seeing the need to further strengthen the stability and viability of the two funds,
Executive Order No. 538 was issued on 4 June 1979, merging the funds for private and
government personnel into what is now known as the Pag-IBIG Fund. However, it
was only on 14 December 1980 when Pag-IBIG was made independent from the
NHMFC with the signing of PD 1752, which amended PD 1530. With the improved
law in effect, the Fund's rule-making power was vested in its own Board of Trustees.
Likewise, PD 1752 made Pag-IBIG membership mandatory for all SSS and GSIS
member-employees.

6. NHMFC- The National Home Mortgage Finance Corporation was created in 1977
by virtue of Presidential Decree 1267, with the mandate of increasing the availability
of affordable housing loans to finance the Filipino homebuyer's on their acquisition of
housing units through the development and operation of a secondary market for
home mortgages. Consistent with this mandate NHMFC bought mortgages originated
by private financial institutions and eventually sold them back to the public through
the issuance of mortgage backed financial instruments.

However, the financial crisis which hit the country in 1984 up to the early part of 1986
caused the collapse of a relatively successful home-financing program of the
government. Since a sizeable portion of NHMFC funds came from the financial
market, with addition to funds coming from contributions of PAG-IBIG members, the
30% to 40% interest rates of the financial market made it impossible for NHMFC
(whose lending rate was pegged at 9%) to operate viably.

With the assumption into office of the Aquino Administration in 1986, there was
already a felt need to reorganize the government housing agencies and define their
new mandates. Executive Order No. 90 on December 17, 1986, gave fresh mandates to
the five housing agencies, NHMFC included. As the major government home
mortgage institution, NHMFC was tasked to operate a viable home mortgage market,
utilizing long-term funds principally provided by the Social Security System (SSS), the
Government Services Insurance System (GSIS), and the Home Development Mutual
Fund (HDMF), to purchase mortgages originated by both private and public
institutions that are within government-approved guidelines. It was also charged with
the development of a system that will attract private institutional funds into long-term
housing mortgages.

Lesson 3: REAL ESTATE DEVELOPMENT

KINDS OF DEVELOPMENT
Vertical – Buildings, Condominiums, Commercial Malls, Skyscrapers

Horizontal- subdivisions, townhouses, Churches, special (resorts etc.)

DEVELOPERS
Developers create and convert ideas, concepts from paper to real property.

Developers buy land or real estate property, finance real estate deals, build, control,
orchestrate the process of development and market the developed property.

Developers collaborate or hire several professionals such as Architects – Design and

Landscape, Engineers (Civil, Mechanical, Soil, Electrical, Sanitary), Interior Designers,
City planners, Surveyors, Contractors, Marketing Consultants, Finance Consultants

STEPS IN DEVELOPMENT
1. Site location

a) Apply for reclassification

b) Location clearance (land use and restrictions)

2. Conduct survey/ Commence Planning

a. Topography
b. Relocation

3. Apply for Development Approvals

a. Apply for appraisal

4. Conduct Individual Technical Descriptions/ Start Construction

5. Apply for Registration and License to Sell

a. Start Marketing System

b. Process Loan Documents and apply for Mortgage take out

Rules on Subdivision and Condominium Development

1. POLICY OF THE STATE AS REGARDS TO HUMAN SETTLEMENT
1987 Constitution:

Mandates the state “to 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 services to underprivileged and homeless citizens in
urban centers and resettlement areas.”

The State shall, by law and for the common good, undertake, in cooperation with the
private sector, a continuing program of housing and urban development which shall
make available at affordable cost, decent housing and basic services to
underprivileged and homeless citizens in urban centers and resettlement areas.

The State shall, pursuant to Section 9, Article XIII of the Constitution, ensure that
underprivileged and homeless citizens have access to an adequate, safe, secure,
habitable, sustainable, resilient and affordable home.The State shall, by law and for
the common good, undertake, in cooperation with the private sector, a continuing
program of housing and urban development which shall make available at affordable
cost, decent housing and basic services to underprivileged and homeless citizens in
urban centers and resettlement areas. It shall also promote adequate employment
opportunities to such citizens. In the implementation of the program, the State shall
respect the rights of small property owners.

The State shall pursue the realization of a modern, humane, economically-viable, and
environmentally-sustainable society where the urbanization process is manifest in
towns and cities being centers of productive economic activity and is led by market
forces; where urban areas have affordable housing, sustainable physical and social
infrastructure and services facilitated under a democratic and decentralized system of
governance; and where urban areas provide the opportunities for an improved quality
of life and the eradication of poverty.

The State shall ensure that poor dwellers in urban and rural areas shall not be evicted
nor their dwelling demolished, except in accordance with law.

In addition, the State shall encourage on-site development in the implementation of

housing programs and shall promote the creation of new settlements and
development of sustainable urban renewal programs while guaranteeing the
preservation of agricultural lands necessary for food security.
ref.: REPUBLIC ACT No. 11201, Chapter 1 sec. 2

2. IMPORTANT DEFINITIONS UNDER PD 957

Section 2. Definition of Terms When used in this Decree, the following terms shall,
unless the context otherwise indicates, have the following respective meanings:

(a) Person. "Person" shall mean a natural or a juridical person. A juridical person refers
to a business firm whether a corporation, partnership, cooperative or associations or
a single proprietorship.

(b) Sale or sell. "Sale" or "sell" shall include every disposition, or attempt to dispose,
for a valuable consideration, of a subdivision lot, including the building and other
improvements thereof, if any, in a subdivision project or a condominium unit in a
condominium project. "Sale" and "sell" shall also include a contract to sell, a contract
of purchase and sale, an exchange, an attempt to sell, an option of sale or purchase, a
solicitation of a sale, or an offer to sell, directly or by an agent, or by a circular, letter,
advertisement or otherwise.

A privilege given to a member of a cooperative, corporation, partnership, or any

association and/or the issuance of a certificate or receipt evidencing or giving the right
of participation in, or right to, any land in consideration of payment of the
membership fee or dues, shall be deemed a sale within the meaning of this definition.

(c) Buy and purchase. The "buy" and "purchase" shall include any contract to buy,
purchase, or otherwise acquire for a valuable consideration a subdivision lot,
including the building and other improvements, if any, in a subdivision project or a
condominium unit in a condominium project.

(d) Subdivision project. "Subdivision project" shall mean a tract or a parcel of land
registered under Act No. 496 which is partitioned primarily for residential purposes
into individual lots with or without improvements thereon, and offered to the public
for sale, in cash or in installment terms. It shall include all residential, commercial,
industrial and recreational areas as well as open spaces and other community and
public areas in the project.
(e) Subdivision lot. "Subdivision lot" shall mean any of the lots, whether residential,
commercial, industrial, or recreational, in a subdivision project.

(f) Complex subdivision plan. "Complex subdivision plan" shall mean a subdivision
plan of a registered land wherein a street, passageway or open space is delineated on
the plan.

(g) Condominium project. "Condominium project" shall mean the entire parcel of real
property divided or to be divided primarily for residential purposes into
condominium units, including all structures thereon.

(h) Condominium unit. "Condominium unit" shall mean a part of the condominium
project intended for any type of independent use or ownership, including one or more
rooms or spaces located in one or more floors (or part of parts of floors) in a building
or buildings and such accessories as may be appended thereto.

(i) Owner. "Owner" shall refer to the registered owner of the land subject of a
subdivision or a condominium project.

(j) Developer. "Developer" shall mean the person who develops or improves the
subdivision project or condominium project for and in behalf of the owner thereof.

(k) Dealer. "Dealer" shall mean any person directly engaged as principal in the
business of buying, selling or exchanging real estate whether on a full-time or part-
time basis.

(l) Broker. "Broker" shall mean any person who, for commission or other
compensation, undertakes to sell or negotiate the sale of a real estate belonging to
another.

(m) Salesman. "Salesman" shall refer to the person regularly employed by a broker to
perform, for and in his behalf, any or all functions of a real estate broker.

(n) Authority. "Authority" shall mean the National Housing Authority.

3. REGISTRATION AND LICENSE TO SELL

Section 4. Registration of Projects The registered owner of a parcel of land who wishes
to convert the same into a subdivision project shall submit his subdivision plan to the
Authority which shall act upon and approve the same, upon a finding that the plan
complies with the Subdivision Standards' and Regulations enforceable at the time the
plan is submitted. The same procedure shall be followed in the case of a plan for a
condominium project except that, in addition, said Authority shall act upon and
approve the plan with respect to the building or buildings included in the
condominium project in accordance with the National Building Code (R.A. No. 6541).

Section 5. License to sell. Such owner or dealer to whom has been issued a registration
certificate shall not, however, be authorized to sell any subdivision lot or
condominium unit in the registered project unless he shall have first obtained a license
to sell the project within two weeks from the registration of such project.

The Authority, upon proper application therefor, shall issue to such owner or dealer
of a registered project a license to sell the project if, after an examination of the
registration statement filed by said owner or dealer and all the pertinent documents
attached thereto, he is convinced that the owner or dealer is of good repute, that his
business is financially stable, and that the proposed sale of the subdivision lots or
condominium units to the public would not be fraudulent.

4. DEALERS, BROKERS AND SALESMEN

Section 11. Registration of dealers, brokers and salesmen. No real estate dealer, broker
or salesman shall engage in the business of selling subdivision lots or condominium
units unless he has registered himself with the Authority in accordance with the
provisions of this section.

If the Authority shall find that the applicant is of good repute and has complied with
the applicable rules of the Authority, including the payment of the prescribed fee, he
shall register such applicant as a dealer, broker or salesman upon filing a bond, or
other security in lieu thereof, in such sum as may be fixed by the Authority
conditioned upon his faithful compliance with the provisions of this Decree: Provided,
that the registration of a salesman shall cease upon the termination of his employment
with a dealer or broker.

Lesson 4: SUBDIVISION DEVELOPMENT

MAIN CATEGORIES OF SUBDIVISION DEVELOPMENT

A. MAIN CATEGORIES OF SUBDIVISION DEVELOPMENT

1. RESIDENTIAL SUBDIVISION– the conversion of rawland a safe, serviceable and

affordable residence with associated facilities.

2. COMMERCIAL DEVELOPMENTS–the development of strategically located property

for office, retail, wholesale and financial activities and also for general services and
travellers needs. Its viability is dependent on the purchasing power of the
supporting population within the area and it accessibility.

3. INDUSTRIAL DEVELOPMENT–the development of big tract of rawland which

focuses on providing property to industrial, manufacturing purposes. Its success
depends upon the climate, topography, transportation facilities, and availability of
sewer outlets, water sources and future expansion potentials.

TYPES OF RESIDENTIAL SUBDIVISIONS:

1. SINGLE FAMILY DEVELOPMENT–a single dwelling unit on each building lot with
direct access to a street.

A. Detached – single

B. Attached – duplex

2. MULTI FAMILY DEVELOPMENT- more than one dwelling unit on each building lot.

Example: Multilevel housing, Tenement housing

KINDS OF SUBDIVISION:

1. As to Complexity

1.1. SIMPLE – refers to a subdivision of a parcel of land located on an existing street

into two or more lots without creating any road or open space or without changing
the existing external periphery for boundary.

1.2. COMPLEX – refers to a subdivision of a parcel of land after consolidating them

into two or more lots, with provisions for roads and/or community spaces, or with
changes in the external periphery or boundary.

2 As to Uses

2.1. RESIDENTIAL–devoted to dwelling in a certain place that is used as the

permanent abode of a person or family.

2.2. COMMERCIAL–devoted to edifices or houses in which businesses directed

primarily for profit is transacted or undertaken.

2.3. INDUSTRIAL–devoted to use by entities engaged in industrial pursuit or

manufacturing of goods for profit.

2.4. INSTITUTIONAL–devoted to the use by institutions, societies or corporations

that are charitable, educational, and religious or the like in nature and character.

2.5. FARM–devoted to agricultural purposes or the raising of domestic animals for

sale, or personal use and consumption.

2.6. RESORT–a place that is frequently and customarily used for assembly and
entertainment purposes or where a person or his family friends usually go for
adventure and relaxation.
 2.7. MEMORIAL PARL/CEMETERY- A memorial park is a modern cemetery with
a difference. The physical difference between each can be easily described. A
traditional cemetery has upright monuments which are typically made of stone.

3. As to Subdivision Scheme

3.1. Square Planning – subdivision scheme for flat terrain

3.2. Contour Planning – subdivision scheme for rolling terrain

3.3. Gridiron – a subdivision scheme where the resulting blocks are more or less
rectangular in shape

4. As to Subdivision Projects (Per HLURB now DHSUD)

Residential Subdivision

Under Pres. Decree No. 957

4.1. Open Market Housing

4.2. Medium Cost Housing

Under Batas Pambansa Bilang 220

4.3. Economic Housing

4.4. Socialized Housing

BASIC REQUIREMENTS OF SUBDIVISION DEVELOPMENT PROJECT

 Making sure the building meets National Building Code standards and other pertinent
laws.
 Documenting the location of the owner’s principal office.
 Name and Address of all directors and officers of the business, corporation, and
partnership.
 Statement of Capitalization
  The title is free from all liens and encumbrances (and if not, any mortgage contains a
stipulation that the mortgagee will release the mortgage as soon as the purchase price
is paid by the buyer (PARTIAL RELEASE CLAUSE)
 Making sure the owner or developer has a license to sell the property and that there is
a performance bond.
 Making sure that all brokers and salespersons are licensed.

Minimum design standards (LGU zoning ordinances)

Residential subdivision projects shall conform with the following minimum design standards,
applicable local government units' (LGU) zoning ordinances as well as pertinent provisions
of the National Building Code if project is with a housing component

Clearing and grubbing, cut and fill, and / or backfilling

Earthwork shall consist of all necessary site clearing and grubbing, excavation and backfill for
structures and trenches, site grading, grassing and restoration, as well as related work as
shown on the plans and as specified herein.

All earthwork shall be confined to the construction area as shown on the plans, and shall be
done in an approved manner with proper equipment. Earthwork shall be suspended during
rain and inclement weather, or when unsatisfactory field conditions are encountered, unless
otherwise directed by the ENGINEER. At all times during construction, the CONTRACTOR
shall maintain proper drainage in the construction area, and shall take all measures necessary
for erosion and sediment control

Roads, curbs and gutters, sidewalks, planting strips

The best way to maintain roads, sidewalks and other pedestrian facilities is to start by
building them to last. Some common types of roads, and sidewalk damage can be
prevented or slowed through the use of exceptional practices in initial road and
sidewalk construction. In particular, close attention to specific design details can result
in sidewalks that require low or lower levels of maintenance over their lifespan,
thereby improving access in a community and reducing municipal and property
owner costs. This chapter will highlight specific construction techniques that can
lengthen the standard lifespan of pedestrian facilities.

Initial design and construction methods greatly influence the long-term maintenance
and lifespan of roads, sidewalks. Historically concrete has been the material of choice
by many jurisdictions because of its ease of installation, durability, reliability and
availability of materials. The thickness of the road and sidewalk material, use of
reinforcing bars or mesh use of aggregate base, depth of sub-base below the roads and
sidewalk, distance from trees, and other design details impact how well a roads and
sidewalk will age over time.

Drainage and sewerage systems

The sewage disposal system for open market and medium cost subdivision projects
shall either be any of the following:

a) Connection to Community Sewer System, Connections shall be made to an

approved public or community sewer system, subject to the requirements and
provisions of the Sanitation Code of the Philippines and other applicable rules
and regulations.
b) Septic Tanks, Where community sewer system is not available, sewage shall be
disposed of and treated in individual septic tanks. Construction of individual
septic tanks shall conform to the design standards of Sanitation Code of the
Philippines (PD 856) and National Plumbing Code of the Philippines (RA 1378).

The drainage system of the subdivision shall conform to the natural drainage pattern
of the subdivision site, and shall drain into appropriate water bodies or public
drainage system. In no case shall drainage outfalls drain into a private lot. Its layout
shall conform to sound engineering design/ principles certified by a duly licensed
civil/sanitary engineer. Drain lines shall be of durable materials and approved
installation practices.
Water and electric supply and distribution system

The subdivision water supply shall be mandatory or obligatorily connected to an

appropriate public water system or community system provided that the water
supply is enough to meet the total daily requirements of the anticipated population.

Electrical power supply

Mandatory individual household connection to primary and/or alternate sources of

power.

Installation practices, materials and fixtures used shall be in accordance with the
provisions of the Philippine Electrical Code and/or local utility company.

Provision of street lighting per pole is mandatory at 50-meter distance and every other
pole if distance is less than 50 meters.
Electrical bills for streetlights shall be proportionately shouldered by the users thereof
prior to issuance of Certificate of Completion (COG) and turn-over of open space to
LGU.

Clubhouse, parks, sport facilities, and other amenities

Space allocations shall provide areas for Clubhouse, parks, sport facilities, and other
amenities - the minimum sizes of which shall be in accordance with the requirements
of the revised implementing rules and regulations for PD 957.\

Lesson 5: Rules on Subdivision Development Project

Location

Conformity with Zoning Ordinance/Comprehensive Land Use Plan

Subdivision projects shall be located in residential zones or other areas appropriate for
residential uses. If there is no Zoning Ordinance or approved Comprehensive Land Use Plan,
the dominant land use principle and site suitability factors cited herein shall be used in
determining suitability of a project.

Subdivision projects supportive of other major urban activities (e.g. housing for industrial
workers) may be allowed in area zoned for the said urban activities.

Physical Suitability

Subdivision projects shall be located within suitable sites for housing and outside hazard
prone areas and protection areas as provided for by pertinent laws. Critical areas (e.g. areas
subject to flooding, landslides and those with unstable soil) must be avoided.

The site shall be stable enough to accommodate foundation load without excessive earth
moving, grading or cutting and filling.

Accessibility

The site must be served by a road that is readily accessible to public transportation
lines. Said access road shall conform with the standards set herein to accommodate
expected demand caused by the development of the area.

In no case shall a subdivision project be approved without the necessary access

road/right-of-way. Said access road right-of-way may be constructed either by the
developer or the local government unit.

Area Planning
 1. Planning and designing of subdivision projects shall take into account the
following:

 safety and general welfare of the future occupants:

 adequate, safe, efficient and integrative road circulation system servicing every
lot therein;
 judicious allocation of land uses for diversity and amenity;
 preservation of site
 proper siting or orientation of lots;
 harmony with existing and proposed development in the vicinity;

2. Application of workable design principles or parameters for a well planned

and self-sustaining environment.

3. When a developer or planner submits a Planned Unit Development (PUD) type

of project, the layout shall likewise conform to the standards for
residential/condominium projects.

Open Spaces

Open spaces shall conform to the provisions of P.D. 1216 and its implementing rules
and shall include the following:

1. Streets - adequate and safe means of vehicular and pedestrian circulation and
easements for utilities and planting strips, shall be provided.

2. Walks - paved walks shall be provided to the living units from streets, parking
spaces and from living units to play areas.

3. Parks and playground - suitable recreational area(s) shall be allocated within

the subdivision.

Where applicable, a hierarchy of such recreational areas may be provided for, such
that, a strategically located main park area is supplemented or complemented by one
or more smaller pocket(s) or areas for recreational use. These areas must be accessible
to living units and free from any form of hazard or risk. Said parks and playgrounds
shall be cleared and free from any debris. Parks and playgrounds as much as possible
shall be at street level.
Facilities and Amenities

Areas required for subdivision facilities and amenities shall be judiciously allocated
in accordance with the provisions herein specified.
Density
Density of subdivision projects shall conform with the residential densities set forth
in the zoning ordinance of the city/municipality where project is located. Where there
is a mixture of housing types within the subdivision (such as single-detached, row
house, town houses, etc.)

Shall include the total number of dwelling units in multi-storey structure plus the total
number of lots intended for single and semi-detached houses.

Lesson 6: Rules Governing Approval of Subdivision Plan

GENERAL STEPS IN SUBDIVISION DEVELOPMENT
1. Verification of Title or due diligence to be conducted by the developer.
2. Contract with the owner (if owner is not the developer)
3. Feasibility studies (market, profit, finance, technical and social desirability) that
includes highest and best-use study
4. Contract with landowner (in case of joint venture project)
5. Relocation and topography survey
6. Preparation of subdivision plan and engineering plans
7. Obtaining government approvals (subdivision permits and licenses)
8. Segregation Survey
9. Subdivision Survey
10. Development and sales

VERIFYING SUBDIVISION PLAN

1. Make initial plans - Guarantee that there are no liens on the property to be
subdivided. Connect with the local planning and development office to get the data
about relevant limitations.

2. Devise a subdivision plan - With assistance from a developer, civil engineer, or other
qualified proficient, design a plan about how the land will be isolated, including the
number of subdivisions and how streets and power will achieve the properties

3. Hire a Land Surveyor - A land surveyor is expected to make what’s known as a plat
map for the property. The plat guide will demonstrate the partitioned region.
Including insights about the arrangement of utilities, sewage, a road network, and so
on.
4. Submit documents for approval - The initial plot outline with other fundamental
archives are submitted for endorsement to the best possible government
organizations. Organization endorsement can take some time and may require
meetings presenting extra materials relying upon the land, your subdivision designs,
and ecological directions.

5. Computations - SAMPLE:

Total Land Area: 100,000 sqm (100%)

Saleable Area: 70,000 (70%)

Open Spaces: 30,000 (30%)

6. Project development cost (based on the example above)

Land Cost 100,000 x PHP 500 (per sqm)

Dev’t Cost - 100,000 x PHP 500 (per sqm)

Project Mgt – 3% of Development Cost

A & E. - 3% of Development Cost

Contingency- 2% of Development cost

Government Requirements

REQUIREMENTS FOR OPTIONAL APPLICATION FOR PRELIMINARY

SUBDIVISION DEVELOPMENT PLAN

PERMITS AND LICENSES

1. Department or Agrarian Reform (DAR)

  Conversion Permit, if land is agricultural

2. Local Government Unit (LCU)

 Certification that the land falls within residential, commercial, or industrial

zone.

 Approval of subdivision plan and engineering drawings, and issuance of

development permit.

3. Department of Environment & Natural Resources (DENR)

 Certification that the conversion is ecologically viable.

4. Department of Agricultural (DA)

 Certification that the land is no longer suitable for agriculture.

5. Housing and Land Use Regulatory Board (HLURB)

 Pre-approval and final approval of subdivision plan

 Issuance of Certificate of Registration and License to Sell.

6. Land Management Bureau (LMB) or Land Registration Authority (LRA)

 Approval of subdivision plan and lots technical descriptions.

7. Register of Deeds (RD)

  Segregation of titles.

8. In some cases:

 Laguna Lake Development Authority (LLDA)

9. Clearance if proposed subdivision is near Laguna Lake

 Department of Tourism (DOT)

REQUIREMENTS FOR APPLICATION FOR SUBDIVISION DEVELOPMENT

PERMIT

GOVERNMENT APPROVALS

1. LGU – submission of all documents and subdivision plans for location

clearances, City Engineer’s approval and issuance of development permit

2. DHSUD – Certificate of Registration and License to Sell issuance.

a. REGISTRATION of PROJECTS

1. Name of owner

2. The location of the owner’s principal business office

3. The names & address of all directors & officers of the business firm

4. The general character of the business actually transacted by the owner

5. A statement of the capitalization of the owner

 Attachment to Project Registration

1. A copy of the subdivision or condominium plan

2. A copy of any circular, prospectus, brochure or advertisement

3. A balance sheet showing all assets & liabilities

4. A title to the property, if free from all liens & encumbrances

Document to be issued: Certificate of Registration

b. LICENSE TO SELL

 Must be secured within two weeks after receipt of the CR

 Certifies that: a. Owners or dealer is of good repute, b. His business is

financially stable, c. The proposed sale would not be fraudulent

3. LMB and RD – approval and technical survey, and for condominiums approval
of Master Deed and issuance of CCT, issuance of TCT for subdivision.

4. DENR, EMB/DAR – environmental clearance, conversion from agricultural

land to residential, commercial, industrial or memorial lots.

5. LGU and Building Officials – Building, electrical and sanitary permits.

6. HGC – appraisal of subdivision lots and housing units

7. MERALCO – for electricity, MWSI – for water, NWRB – for deep well source of
water
8. HGC – for developmental loans (optional)

9. BIR – Taxes due

10. RDO- issuance of titles from the master title

11. HOMEOWNERS ASSOCIATION – to promote and protect common interest of

the developer and homeowners and assist in community development

12. DEED OF DONATION – for open spaces, roads, common areas to the LGU
where the project is located.

Lesson 7: The Condominium Act

What is a condominium?

A condominium is an interest in real property consisting of separate interest in a unit

in a residential, industrial or commercial building and an undivided interest in
common, directly or indirectly, in the land on which it is located and in other common
areas of the building. A condominium may include, in addition, a separate interest in
other portions of such real property. Title to the common areas, including the land, or
the appurtenant interests in such areas, may be held by a corporation specially formed
for the purpose (hereinafter known as the “condominium corporation”) in which the
holders of separate interest shall automatically be members or shareholders, to the
exclusion of others, in proportion to the appurtenant interest of their respective units
in the common areas.

What law governs the condominium?

REPUBLIC ACT NO. 4726, AN ACT TO DEFINE CONDOMINIUM, ESTABLISH

REQUIREMENTS FOR ITS CREATION, AND GOVERN ITS INCIDENTS.

When is the law applicable?

The provisions of this Act shall apply to property divided or to be divided into
condominiums only if there shall be recorded in the Register of Deeds of the province
or city in which the property lies and duly annotated in the corresponding certificate
of title of the land, if the latter had been patented or registered under either the Land
Registration or Cadastral Acts, an enabling or master deed which shall contain, among
others, the following:

(a) Description of the land on which the building or buildings and improvements are
or are to be located;

(b) Description of the building or buildings, stating the number of stories and
basements, the number of units and their accessories, if any;

(c) Description of the common areas and facilities;

(d) A statement of the exact nature of the interest acquired or to be acquired by the
purchaser in the separate units and in the common areas of the condominium project.
Where title to or the appurtenant interests in the common areas is or is to be held by a
condominium corporation, a statement to this effect shall be included;

(e) Statement of the purposes for which the building or buildings and each of the units
are intended or restricted as to use;

(f) A certificate of the registered owner of the property, if he is other than those
executing the master deed, as well as of all registered holders of any lien or
encumbrance on the property, that they consent to the registration of the deed;

(g) The following plans shall be appended to the deed as integral parts thereof:

(1) A survey plan of the land included in the project, unless a survey plan of the same
property had previously bee filed in said office;

(2) A diagrammatic floor plan of the building or buildings in the project, in sufficient
detail to identify each unit, its relative location and approximate dimensions;

(h) Any reasonable restriction not contrary to law, morals or public policy regarding
the right of any condominium owner to alienate or dispose of his condominium.
The enabling or master deed may be amended or revoked upon registration of an
instrument executed by the registered owner or owners of the property and consented
to by all registered holders of any lien or encumbrance on the land or building or
portion thereof. The term “registered owner” shall include the registered owners of
condominiums in the project. Until registration of a revocation, the provisions of this
Act shall continue to apply to such property.

Ref.: attyarneldmateo.wordpres

What are the requirements for the conveyance/grant of a condominium?

Upon registration of an instrument conveying a condominium, the Register of Deeds

shall, upon payment of the proper fees, enter and annotate the conveyance on the
certificate of title covering the land included within the project and the transferee shall
be entitled to the issuance of a “condominium owner’s” copy of the pertinent portion
of such certificate of title. Said “condominium owner’s” copy need not reproduce the
ownership status or series of transactions in force or annotated with respect to other
condominiums in the project. A copy of the description of the land, a brief description
of the condominium conveyed, name and personal circumstances of the
condominium owner would be sufficient for purposes of the “condominium owner’s”
copy of the certificate of title. No conveyance of condominiums or part thereof,
subsequent to the original conveyance thereof from the owner of the project, shall be
registered unless accompanied by a certificate of the management body of the project
that such conveyance is in accordance with the provisions of the declaration of
restrictions of such project.

In cases of condominium projects registered under the provisions of the Spanish

Mortgage Law or Act 3344, as amended, the registration of the deed of conveyance of
a condominium shall be sufficient if the Register of Deeds shall keep the original or
signed copy thereof, together with the certificate of the management body of the
project, and return a copy of the deed of conveyance to the condominium owner duly
acknowledge and stamped by the Register of Deeds in the same manner as in the case
of registration of conveyances of real property under said laws.

Ref.: attyarneldmateo.wordpres

Assessment constitutes lien upon the condominium

An assessment upon any condominium made in accordance with a duly registered
declaration of restrictions shall be an obligation of the owner thereof at the time the
assessment is made. The amount of any such assessment plus any other charges
thereon, such as interest, costs (including attorney’s fees) and penalties, as such may
be provided for in the declaration of restrictions, shall be and become a lien upon the
condominium assessed when the management body causes a notice of assessment to
be registered with the Register of Deeds of the city or province where such
condominium project is located. The notice shall state the amount of such assessment
and such other charges thereon a may be authorized by the declaration of restrictions,
a description of the condominium, unit against which same has been assessed, and
the name of the registered owner thereof. Such notice shall be signed by an authorized
representative of the management body or as otherwise provided in the declaration
of restrictions. Upon payment of said assessment and charges or other satisfaction
thereof, the management body shall cause to be registered a release of the lien.

Such lien shall be superior to all other liens registered subsequent to the registration
of said notice of assessment except real property tax liens and except that the
declaration of restrictions may provide for the subordination thereof to any other liens
and encumbrances.

Such liens may be enforced in the same manner provided for by law for the judicial or
extra-judicial foreclosure of mortgages of real property. Unless otherwise provided
for in the declaration of restrictions, the management body shall have power to bid at
foreclosure sale. The condominium owner shall have the same right of redemption as
in cases of judicial or extra-judicial foreclosure of mortgages.

Ref.: attyarneldmateo.wordpres