Question & AnswerQ&A (Republic Act No. 10884)
Republic Act No. 10884 is known as the 'Balanced Housing Development Program Amendments.'
Socialized housing refers to housing programs and projects covering houses and lots or home lots only, or residential condominium units undertaken by the government or the private sector for underprivileged and homeless citizens. It includes sites and services development, long-term financing, liberalized terms on interest payments, and other benefits in accordance with the Act.
Owners and/or developers of proposed subdivision projects are required to develop an area for socialized housing equivalent to at least fifteen percent (15%) of the total subdivision area or total subdivision project cost.
Owners and/or developers of proposed condominium projects are required to develop an area for socialized housing equivalent to at least five percent (5%) of the total condominium area or project cost, at the option of the developer.
No, proposed socialized subdivision projects and proposed socialized condominium projects are exempt from the balanced housing development requirements.
Owners and/or developers may comply by: (a) Developing socialized housing in a new settlement; (b) Joint-venture projects for socialized housing with LGUs, housing agencies, private developers, or accredited NGOs, with solidary liability in case of default; or (c) Participating in a new project under the community mortgage program.
First offense: Fine of not less than P500,000.00; second offense: suspension of license to do business for 3-6 months and fine of not less than P500,000.00; third offense: cancellation of license to do business.
Incentives include reduction and simplification of qualification and accreditation requirements, creation of one-stop offices for processing permits within 90 days, simplification of financing procedures, and tax exemptions on project-related income taxes, capital gains tax on raw lands, VAT for contractors, transfer tax, and donor's tax for certified donated lands.
The Housing and Land Use Regulatory Board is mandated to submit annual reports to Congress on compliance by owners and/or developers of subdivision and condominium projects.
The Act shall take effect fifteen (15) days after its publication in the Official Gazette or a newspaper of general circulation.