Title
Balanced Housing Act Amendments
Law
Republic Act No. 10884
Decision Date
Jul 17, 2016
The "Balanced Housing Development Program Amendments" is a Philippine law that amends provisions related to socialized housing, requiring developers to allocate a certain percentage of their projects for underprivileged citizens and providing incentives for private sector participation.

Balanced Housing Development Program Requirements

  • Requires developers of subdivision projects to allocate at least 15% of total subdivision area or cost for socialized housing.
  • Condominium developers must allocate at least 5% of project area or cost for socialized housing.
  • Socialized subdivision and condominium projects are exempt from this requirement.
  • Housing and Urban Development Coordinating Council (HUDCC) and National Economic and Development Authority (NEDA) set and review socialized housing price ceilings biennially.

Compliance Options for Balanced Housing

  • Development of socialized housing in a new settlement.
  • Joint ventures with local government units, housing agencies, other developers, or accredited NGOs.
  • Participation in community mortgage program projects.
  • Developers are solidarily liable if joint ventures fail to comply.

Reporting and Enforcement

  • Housing and Land Use Regulatory Board (HLURB) to submit annual compliance reports to Congress.
  • Penalties for non-compliance include fines starting at P500,000, suspension of business license for second offense, and cancellation of license for third offense.

Incentives for Private Sector in Socialized Housing

  • Simplified qualification and accreditation for private developers.
  • Creation of one-stop offices in regions to fast-track permits and licenses within 90 days.
  • Simplified financing procedures.
  • Tax exemptions including:
    • Project-related income taxes.
    • Capital gains tax on raw lands.
    • Value-added tax for contractors.
    • Transfer taxes.
    • Donor's tax for lands donated for socialized housing.
  • Socialized housing certification by HLURB suffices for tax exemptions.
  • Liens on exempted land titles to be annotated.
  • Approved socialized housing development plan is a prerequisite.
  • Savings from tax exemptions must benefit housing beneficiaries.

Implementation and Rulemaking

  • HLURB mandated to promulgate implementing rules within 90 days of the Act's effectivity.
  • Consultations with NGOs, people's organizations on housing rights, and private sector involved in drafting rules.

Reporting to Congress

  • HLURB Chief Executive Officer to submit evaluation reports every two years post-effectivity.

General Legal Provisions

  • Separability clause ensures the remainder of the law remains effective if any provision is invalidated.
  • Repeals or modifies existing laws, orders, rules inconsistent with this Act.
  • The Act takes effect fifteen days after publication in the Official Gazette or a newspaper of general circulation.

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