Balanced Housing Development Program Amendments

Case Overview and Summary

Summary of Republic Act No. 10884 (Balanced Housing Development Program Amendments)

Definition of Socialized Housing (Section 2a, amending Section 3r)
- Socialized housing refers to housing programs and projects covering houses, lots, homelots, or residential condominium units for underprivileged and homeless citizens.
- It includes sites and services development, long-term financing, liberalized interest payment terms, and other benefits.

Balanced Housing Development Requirement (Section 2b, amending Section 18)
- Owners/developers of subdivision and condominium projects must develop an area for socialized housing equivalent to:
    - At least 15% of the total subdivision area or project cost.
    - At least 5% of the condominium area or project cost.
- Socialized subdivision and condominium projects are exempt from this requirement.
- Compliance can be achieved through:
    - Development of socialized housing in a new settlement. (Section 18a)
    - Joint-venture projects for socialized housing with local government units, housing agencies, private developers, or accredited NGOs. If the developer fails to complete the project, they are still liable for compliance. (Section 18b)
    - Participation in a new project under the community mortgage program. (Section 18c)
- The Housing and Land Use Regulatory Board must submit an annual report to Congress on compliance.
- Penalties for violation:
    - First offense: Fine of at least P500,000.
    - Second offense: Suspension of business license for 3-6 months and a fine of at least P500,000.
    - Third offense: Cancellation of business license.

Incentives for Private Sector Participation in Socialized Housing (Section 2c, amending Section 20)
- Reduction and simplification of qualification and accreditation requirements for participating private developers.
- Creation of one-stop offices for processing, approval, and issuance of clearances, permits, and licenses within 90 days.
- Simplification of financing procedures.
- Exemption from the following taxes:
    - Project-related income taxes.
    - Capital gains tax on raw lands used for the project.
    - Value-added tax for the project contractor.
    - Transfer tax for raw and completed projects.
    - Donor's tax for lands donated for socialized housing purposes.
- A socialized housing certification from the Housing and Land Use Regulatory Board is sufficient for tax exemption.
- A lien on the title of the land shall be annotated by the Register of Deeds upon application for exemption.
- The socialized housing development plan must be approved by the appropriate government agencies.
- All savings from the incentives shall accrue in favor of the beneficiaries.

Other Provisions
- The Housing and Land Use Regulatory Board shall promulgate new implementing rules and regulations within 90 days, consulting with NGOs, people's organizations, and the private sector. (Section 3)
- The Housing and Land Use Regulatory Board shall submit an evaluation report to Congress every two years. (Section 4)
- Separability clause and repealing clause are included. (Sections 5 and 6)
- The Act shall take effect 15 days after publication in the Official Gazette or a newspaper of general circulation. (Section 7)