QuestionsQuestions (HLURB ADMINISTRATIVE ORDER NO. 02, S. 2018)
These Rules cover all new residential subdivision and residential condominium projects with applications filed upon the effectivity of RA 10884, and existing projects with expansions or alterations increasing project area or cost. Projects sold at the prevailing socialized housing price ceiling are exempt.
It requires owners or developers of residential projects to develop an area for socialized housing equivalent to at least 15% of the total subdivision project area or cost or 5% of condominium area or cost, per Section 18 of RA 7279 as amended by RA 10884.
A developer is the natural or juridical person who develops or improves the residential subdivision or condominium project for or on behalf of the owner. The landowner developing directly is also a developer.
Developers may comply through development of socialized housing in new settlements; joint ventures with LGUs, housing agencies, accredited developers, or NGOs; participation in community mortgage projects; escrow participation with third-party contractors; or purchase/subscription of Asset-Backed Securities from housing agencies.
At least 15% of the total subdivision area or total subdivision project cost.
Penalties include a minimum fine of P500,000 for the first offense; suspension of the license to do business for 3-6 months plus fine for the second offense; and cancellation of the license for the third offense. Officers causing violations may also be penalized.
No, developers are not allowed to combine project area and project cost for a single compliance computation.
Compliance projects must be registered and approved by the HLURB CEO before use. A Provisional Certificate of Compliance is issued upon registration, and a Final Certificate is given upon construction completion, with geotagging of location.
Incentives include one-stop offices for permits, simplified financing, exemptions from various taxes including income tax, capital gains tax on raw lands, VAT for contractors, transfer taxes, and donor's tax on donated lands for socialized housing.
It is the joint liability of the developer of the main project to comply with socialized housing standards and fully develop the required compliance project if the private developer of the compliance project fails to do so.