Law Summary
Legal Basis and Governance of Joint Ventures
- Joint ventures utilized under this context are governed by the general law on partnerships.
- The joint venture must satisfy the legal requisites that define a partnership to be considered valid for compliance.
Requirement for Essential Partnership Elements in Joint Venture Agreements
- Developers are required to ensure the Joint Venture Agreement includes the two essential elements of a partnership:
- Contribution of a specified sum to a common fund.
- Sharing of profits between parties.
- This requirement aims to ensure the joint venture legally qualifies as a partnership for compliance purposes.
Modes of Compliance for Socialized Housing Under the Implementing Rules and Regulations (IRR)
- Socialized housing equivalent to twenty percent (20%) of the total subdivision project cost must be complied with through feasible modes within the municipality or city.
- Among the feasible modes listed is the Community Mortgage Program (CMP) which allows developer participation.
Provisions Specific to Joint-Venture Projects
- Developers may enter into joint projects or agreements with:
- The concerned local government units (LGUs).
- Other private developers.
- Any housing agencies.
- The developer's participation in joint ventures must correspond to either 20% of the project area or 20% of the cost of the main subdivision project.
- A copy of the Joint Venture Agreement must be submitted to the Housing and Land Use Regulatory Board (HLURB) for compliance monitoring.
Procedural and Submission Requirements
- The Joint Venture Agreement submission to HLURB is mandatory.
- The agreement must clearly delineate the financial contributions and profit-sharing arrangements.
Signatories and Effectivity
- The resolution was adopted on August 17, 2007.
- The resolution bears the signatures of high-ranking officials from relevant government departments and agencies, including the Vice President of the Philippines as Chairperson of HUDCC, DOJ, NEDA, DILG, DPWH, and the HLURB Board Secretary.
This resolution ensures clarity and legal robustness in the application of joint ventures as a mode of compliance for socialized housing, reinforcing legal partnership principles and procedural diligence for monitoring and enforcement.