Question & AnswerQ&A (HLURB ADMINISTRATIVE ORDER NO. 48, S. 2009)
The main purpose is to approve the accreditation of investments in the Php 12.0 Billion Pag-IBIG Bonds as an alternative mode of compliance to the 20% balanced housing development requirement under Section 18 of R.A. 7279 (Urban Development and Housing Act of 1992).
It mandates that developers allocate 20% of their housing projects for socialized housing to ensure balanced housing development between socialized and economic housing sectors.
Republic Act No. 7279, otherwise known as the Urban Development and Housing Act (UDHA) of 1992.
The DOJ opinion confirms that investing in socialized housing bonds is germane to the objects and purposes of the UDHA and falls within the scope of joint venture as defined in the law, thus legally valid as a mode of compliance.
Investments in the Php 12.0 Billion Pag-IBIG Bonds of the Home Development Mutual Fund are accredited as an alternative mode of compliance.
The accreditation took effect on 11 November 2009, fifteen days after its publication on 27 October 2009.
The statutory basis is found in Section 18 of Republic Act No. 7279, which requires developers to allocate 20% of their projects for socialized housing.
The Home Development Mutual Fund issues the Pag-IBIG Bonds, which are now approved as a legitimate investment alternative for complying with the socialized housing development requirement under the UDHA.
It formally approves the accreditation of investing in Pag-IBIG Bonds as an alternative mode of compliance with the socialized housing requirement, providing private sector developers with an additional legal means to fulfill their obligations under the law.