Question & AnswerQ&A (HLURB BOARD Resolution NO. 806, S. 2007)
Section 3.C.4 outlines the use of Joint-Venture Projects as a mode of compliance to the socialized housing requirement under Section 18 of RA 7279, specifying the conditions and elements such ventures must have to qualify legally.
The Joint Venture Agreement must contain the contribution of a specified sum to a common fund and the sharing of profits, in accordance with partnership law.
The developer’s participation must be equivalent to 20% of the project area or 20% of the cost of the main subdivision project.
Developers may enter into joint ventures with the concerned local government unit, another private developer, or any of the housing agencies to develop socialized housing projects.
Joint Ventures are governed by the law on partnerships.
Developers are required to submit a copy of the Joint-Venture Project Agreement to the HLURB.
The socialized housing project requirement is equivalent to twenty percent (20%) of the total subdivision project cost.
The amendment aims to ensure the joint ventures comply legally with Section 18 of RA 7279 by requiring the inclusion of two basic partnership elements in the Joint Venture Agreement.
It must be done in a manner feasible in the municipality or city where the project is located.
The resolution was chaired by The Honorable Noli L. De Castro, Vice President of the Philippines and Chairman of HUDCC.