Law Summary
Classification of Projects and Financial Nature
- Projects are divided into self-liquidating and non-self-liquidating:
- Self-liquidating: Construction of low-cost housing and subdivision projects.
- Non-self-liquidating and non-revenue-producing: Acquisition and clearance of slum areas, and housing for destitutes and paupers.
- If slum areas are cleared for low-cost housing, acquisition and clearance costs are non-self-liquidating; construction costs are self-liquidating.
Amortization and Financial Management
- PHHC is authorized to amortize project costs for up to twice the bond redemption period.
- Only net income from projects will contribute to the sinking fund under RA 1000.
- Near bond maturity, deficiencies and sinking fund contributions are to be covered by proceeds from new bond issues as per this Act and RA 1000.
Procurement Procedures
- Projects financed under this Act shall generally be awarded through public bidding.
- If there are no bidders or if in-house execution is less costly, the project may be undertaken by administrative means.
Limitations on Land Acquisition
- Acquisition is limited to urban lands for residential use.
- Provision for allocation of appropriate public and semi-public areas within these land acquisitions is permitted.
Conditions for Housing for Destitutes and Paupers
- Construction of housing for destitutes and paupers requires assurance that the Social Welfare Administration or a designated government agency has secured funding for operation and maintenance.
Tax Exemptions
- All PHHC projects financed under this Act are exempt from national and local taxes and fees of any kind.
Effectivity
- The Act takes effect immediately upon approval.