Question & AnswerQ&A (BIR REVENUE MEMORANDUM CIRCULAR NO. 36-2011)
Socialized housing refers to housing programs and projects covering houses and lots or homelots only that are undertaken by the government or the private sector for the underprivileged and homeless citizens, including sites and services development, long-term financing, liberalized terms on interest payments, and other benefits in accordance with Republic Act 7279.
The price ceiling for a socialized housing unit is P400,000.00 for a house and lot package, subject to periodic adjustment by the Housing and Land Use Regulatory Board (HLURB).
When only homelots are sold, the price ceiling should not exceed forty percent (40%) of the maximum limit prescribed for the house and lot package, which amounts to P160,000.00 per lot (40% of P400,000.00).
The Housing and Land Use Regulatory Board (HLURB) is responsible for periodic adjustment or increase of the price ceiling for socialized housing units.
HUDCC Memorandum Circular No. 1, Series of 2008, issued on December 11, 2008, raised the price ceiling to P400,000.00.
Republic Act No. 7279 and Revenue Regulations Nos. 11-97 and 17-01 guide the taxation and classification of socialized housing programs and projects.
Socialized housing programs may be undertaken by the government or the private sector for the underprivileged and homeless citizens.
The price ceiling is subject to periodic adjustment or increase by the Housing and Land Use Regulatory Board (HLURB).
Socialized housing programs must include sites and services development, long-term financing, liberalized terms on interest payments, and other benefits as provided in Republic Act 7279.
The BIR Revenue Memorandum Circular No. 36-2011 was adopted on August 26, 2011.