Question & AnswerQ&A (Republic Act No. 1322)
The purpose of Republic Act No. 1322 is to finance projects of the People's Homesite and Housing Corporation from the bond issue under Republic Act Numbered One thousand, specifically for low-cost housing, acquisition and subdivision of land for residential purposes, clearance of slum areas, and construction of housing for destitutes and paupers.
The sum of twenty million pesos from the proceeds of the sales of bonds issued under Republic Act Numbered One thousand is reserved for the projects under this Act.
The construction of low-cost housing projects, including site acquisition, and the acquisition and subdivision of landed estates for resale without structures are considered self-liquidating projects.
Projects involving acquisition and clearance of slum areas and construction of housing for destitutes and paupers are classified as non-self-liquidating and non-revenue-producing projects.
The People’s Homesite and Housing Corporation is authorized to amortize the cost of the projects for a period longer than, but not exceeding twice the redemption period of the bonds.
If there are no bidders or if the project can be executed at a reasonably lower cost than the lowest bid, such a housing project may be executed by administration without public bidding.
No, all projects of the People's Homesite and Housing Corporation financed under this Act are exempt from national and local taxes and fees of any kind.
The acquisition of landed estates financed under this Act is limited to urban lands intended for residential purposes, with provision for setting aside appropriate areas for public and semi-public use needed by the community.
The Social Welfare Administration or a government agency designated by the President must be provided with or assured of funds to maintain and operate the housing for destitutes and paupers.
The People’s Homesite and Housing Corporation shall contribute to the sinking fund only the net income of the projects. If there is a deficiency near bond maturity, this amount shall be raised from another set of bonds sold under this Act and Republic Act Numbered One thousand.