s. No.

2947
H . No, 4116

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Begun and held in Metro Manila, on Monday, tt1e twenty-seventh

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day of July, two thousand fifteen .

.,
I REpUBLIC ACT No. 108841
AN ACT STRENGTHENI NG THE BALAN CED HOUSING
DEVELOPMENT PROGRAM, AMENDING FOR THE
PURPOSE REPUBLIC ACT NO . 7279, AS AMENDED.
OTHE RWISE KNOWN AS THE URBA.."DEVELOPMENT
AN D HO USING ACT OF 1992

Be it enacted by the Senate and House of Representatives of the

Philippines in Congress assembled:

SECfION 1. S ho rt Title. - This Act shall be kn own as

the "Ba la nced Hou sing Developm en t Progr am Amendments".

S EC. 2 . Am endatory Pro vi sion s. - The following

provisions of Republic Act No. 7279, entitle d "An Act to Provide
for a Compre he ns ive and Contin uing Urba n Developm ent and
H ou sin g Program , Establish th e Me chanism for its
Impl ementation, and for other Purposes", are hereby amended:
 2 3
(a) Sect ion 3 of Republic Act No. 72 79 is her eby
ame nde d by re defining par agraph (r) to re ad as follows:
"(r ) 'Soc ia li zed h ou sin g' re fe rs t o hou sin g
pr ogram s and pr ojects covering house s and lots or
homelots only, or re sid enti al condomi nium units
undertaken by the govern me nt or the private sector
for the underprivileged and homeless citizens which
s ha ll include site s a n d services development,
long-term financing, liberalized terms on inter est
payments, and such other benefits in accordance with
the pr ovisions of this Act ."
(b) Secti on 18 of Republic Act No. 7279 is hereby
am ended to read as follows:
"SEC. 18. Balanced Hou sing Development. -
The Program shall include a syste m to be specified
in th e Framework plan wh ereby owners andlor
developers of pr oposed subdivision and condominium
projects sha ll be requ ired to develop an area for
socialize d housing equival ent to at lea st fift een
~
per cent (15%) of the t otal subdivision are a or total
subdivision project cost and at least five per cent (5%)
of condominium area or pr oject cost, at the option
of the developer , in accordance with the standa rds
as provid ed by law : Pr ovided , That p ropo sed
socialized subdivision projects and pr oposed socialized
condominium pr ojects sha ll be exempt from this
requirement. For this purp ose, the Hou sing an d
Urban Development Coordina ting Council and th e
National Economic and Development Authority sha ll
jointly determ ine and set separate socialized housin g
price ceilings for socialized subdivision and socialized
condomini um pr oject s which shall be mand atorily
reviewed or revised every two (2) years. The balanced
housing development as herein required may also be
complied with by the owne rs a ndlo r developers
concerne d in any of th e followin g manner :
"(a) Development of socialized housing in a new
, for t he ben efit of the underprivileged and homeless,
settlement;
"(b) J oint -venture projects for socialized housing
with eithe r the local govern ment units or any of the
housin g age ncies or with an other private developer ,
or with a nongovernmental organization en gaged in
the provision of socialized housing and duly accre dited
by the Housing and Land Use Regulatory Board , but
if t he d evel op er h a s fail ed t o comp lete th e
devel opm ent of the project, t he owne r andlo r
developer of th e main subdivision or condominium
project sha ll be solidarily liable only to the ext ent
of complia nce to the balanced housing requirement
regardless of the provisions of th eir joint venture
agreement; or
"(c) Participation in a new pr oject und er the
community mortgage program.
~
"The Housing and Land Use Regulatory Board
is hereby mandated to submit to Congress an annual
rep ort on the compliance hereof by the owne rs
andlor developers of subdivision and condo minium
proj ects . .
"Any person violat ing a ny pr OVISIOn of this
section' sha ll be imposed a fine of not less than five
hundred thousand pesos (P 500,OOO.OO), for the first
offen se; sus pe ns ion of license to do business for a
period of t hree (3) to six (6) month s and a fine of
not le s s than fiv e hundred th ou s and pe so s
(P500,OOO.OO), for the second offense; and cancellation
of license to do bu siness for the third offense ."
(c) Section 20 of Republic Act No. 7279 is h ereby
a men ded to read as follows:
"S EC . 20. I n cen t i ves fo r Pri vat e Sect or
Participating in Socialized Housing. - To encourage
greate r private sector participation in socia lize d
housing and further redu ce the cost of housing units
the following in centi ves sha ll be exte nded to the
private sector:
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"(a) Reduction and simplification of qualification
a nd accreditation re quire me nts for participating
private developers;
"(b) Creation of one-stop offices in th e different
regions of th e country for th e processing , approval
and issuance of clearances, permits and licen ses:
Provided, That clearances, permits and licenses shall
be issu ed within ninety (90) days from the date of
submission of all requirements by the participating
private developers;
"(c) Simplification of financing procedures; and
"(d) Exemption fr om the payment of the
following:
"(1) Project-related income taxes;
"(2) Capita l gains tax on raw land s used for
th e project;
.~
"(3) Value-added tax for the project contractor
concerned;
"(4) Tr ansfer tax for both ra w complete d
pr ojects; and
"(5) Donor's ta x for land s cer tified by the local
government units to have been donated for socialized
housing purposes.
"Provid ed , That a soci alize d h ou sing
certification issued by th e Housing and Land Use
Regulator y Board sha ll be sufficient for th e purp ose
of ava ilment of tax exemption: Provided , fur the r,
That upon application for exemp tion, a lien on the
title of th e land shall be annota te d by th e Register
of Deeds: Provided, fur thermore, That the socialized
housing development plan has already been approved
by th e appropria te government agencies concerned:
.' Provided, fin ally, That all the savings realized by
virt ue of this provision shall accr ue in favor of the
beneficiaries subject to the impl ementing guidelines
to be issued by th e Housing and Urban Development
Coordinating Council."
"x x x."
SEC. 3. Implem ent ing R ules a nd R egu lations. - Within
nin ety (90) da ys from th e effectivity of this Act, th e Housing
and Land Use Regulatory Board shall promulgate a new
set of implem enting rules and regulations for th e amended
Sections 3, 18 and 20 of Republi c Act No. 7279, consistent
with th e parameters and standar ds set forth in said sections.
] Nongovernment organizations and people's organizations
inv olved in housing rights and urban poor advocacy, as well
I as the private sector, shall be consulted in th e pr ocess of
drafting these implem enting rul es and regulations.
SEC. 4. Reporting to Congress. - The Chief Executi ve
Officer of the Housing and Land Use Regulatory Board shall
'kubmit an evaluation report to Congress ever y tw o (2) years
afte r the effectivity of this Act.
SEC. 5. Separability Cla use. - If a ny pr ovision or part
hereof is held invalid or unconstitutional , th e remaind er of the
law or the provision not otherwise affected sha ll remain valid
and subsisting.
SEC. 6,( Repealing Cla use. - Any law , presidential decree
or issu ance , ex ec u t i ve or der , letter of in struction ,
admini str ative order, rule or regulation contrary to, or
inconsistent with, the provisions of this Act is hereby repealed,
modified or am ended accordingly.
SEC. 7. Effectivity. - This Act shall take effect fifteen
(15) days afte r th e completion of its publication in the Official
Gazett e or in a newspaper of general circulation.
Approved,
1
I
~L ','~~.
~ YEI:;CIANO BELMONTE JR.
Speaker ofthe House
ofRepresentatives
.>
 6

This Act which is a con so lidat ion of Sena te Bill No. 2947
a n d H ouse Bill No . 4116 wa s finally pa ssed by t he Se nate
a n d the H ouse of Representatives on February 3. 2016 a n d
Ma y 23, 201 6. resp ectively .

)~ ~ L-;Jr
MARILYN B.J8Mfu"Al1
Secretary Genera l
AP ~s
Secretary ofthe Senate
House ofRepresentatives

Approved:
-,

'"
BENI GNO S. AQUINO III
President of the Philipp ines

o
Lapsed ,nt,) law on 'JUL 1 7 2016
Wlth," ,! '"l! signature of the Pre sident,
In accordance with Article VI, Section
27 (1) of the Constitution.