Legal basis and related regulatory framework
- BSP Circular No. 724 was issued under Monetary Board Resolution No. 768 dated 26 May 2011.
- The revised definitions update the definition of Socialized Housing and Low-Cost Housing found in the Manual of Regulation on Foreign Exchange Transactions.
- The Manual is issued under BSP Circular No. 645 dated 13 February 2009.
- BSP Circular No. 645 is as amended, and the revised definitions in BSP Circular No. 724 operate within that framework.
Policy and purpose statement
- The circular establishes updated classification thresholds for Socialized Housing and Low-Cost Housing for housing packages under the relevant regulatory use.
- The circular provides that the Housing and Urban Development Coordinating Council (HUDCC) may prescribe updated ceiling amounts in the future.
Core definitions: Socialized Housing
- Socialized Housing refers to housing packages with loan ceilings of not more than PHP 400,000.
- Socialized Housing also includes housing packages that meet other amounts that HUDCC may prescribe in the future.
- The loan ceiling measurement is expressed in terms of loan ceilings under the definition.
Core definitions: Low-Cost Housing
- Low-Cost Housing refers to housing packages with loan ceilings ranging from above PHP 400,000 up to PHP 3 million.
- Low-Cost Housing also includes housing packages that meet other amounts that HUDCC may prescribe in the future.
- The definition sets a tier boundary at PHP 400,000 and caps eligibility at PHP 3 million, using loan ceilings as the basis.
Effect of the circular: what changes
- The circular replaces the existing definitions of Socialized Housing and Low-Cost Housing used under the Manual of Regulation on Foreign Exchange Transactions.
- The revised ceilings in the definitions apply once the circular becomes effective under the 15-calendar-day publication rule.
- The circular maintains a forward-looking mechanism by allowing HUDCC to prescribe other ceiling amounts in the future.