Title
HLURB Rules on Balanced Housing Compliance
Law
Hlurb Administrative Order No. 02, S. 2018
Decision Date
Mar 23, 2018
The Philippine Jurisprudence case involves the approval and adoption of rules and regulations by the Housing and Land Use Regulatory Board (HLURB) for the implementation of the Balanced Housing Development Program Amendments, which require developers to allocate a certain percentage of the project cost for socialized housing and provide incentives for private sectors participating in socialized housing projects.
A

Definitions

  • Defines key terms including: Asset-Backed Securities, Balanced Housing Development, BALAI, Community Mortgage Program, Compliance, Main Project, Developer, Housing Agencies, Joint Venture, Land Development, Socialized Housing Programs and Projects, Solidary Liability.
  • Clarifies measurements such as condominium area and project cost.

Preferred Manner of Compliance

  • Developers must allocate minimum socialized housing: 15% for subdivisions, 5% for condominiums.
  • Compliance projects must meet HLURB and legal standards.

Alternative Manners of Compliance

  • Options include development in new settlements; joint ventures with LGUs, housing agencies or accredited developers/NGOs; participation in CMP projects; participation through investment in new socialized housing projects.
  • Conditions apply such as solidarity liability with compliance project developers.
  • Compliance projects must follow design standards and require HLURB Chief Executive Officer's approval within 10 working days.

Location Requirements

  • Compliance projects should be in the same city or municipality as the main project if feasible.
  • Geotagging mandatory for project verification.

Compliance Computation

  • Developers cannot mix project area and cost metrics in a single compliance calculation.

Registration Protocol

  • New socialized housing programs need HLURB CEO approval.
  • Issuance of provisional and final Certificates of Compliance contingent on project completion and geotagging verification.

Accreditation

  • Developers and NGOs in joint ventures must be accredited per HLURB guidelines.

Incentives for Private Sector Participation

  • HLURB to coordinate for creating one-stop offices, financing simplification, and various tax exemptions including income, capital gains, VAT, transfer, and donor's taxes.

Socialized Housing Certification

  • HLURB issues registration and licensing certification.
  • Developers may utilize advanced compliance options for future projects.

Incentivized Compliance

  • Extra incentives for participation in approved socialized housing initiatives, including non-recoverable constructions like utilities and special housing.
  • Minimum value contributions for credited participation are stipulated.
  • Agreements needed with HLURB, HUDCC, and SAG/Local gov’t units.

Compliance Monitoring and Enforcement

  • HLURB ensures compliance through documentation, public notices, project registration annotations with geographic coordinates, physical inspections, and sanctions for violations.

Rulemaking Authority

  • HLURB CEO can issue implementing guidelines and circulars within rule boundaries.

Penalties for Violations

  • Progressive sanctions from fines, suspension to business license cancellation.
  • Corporate offenders’ responsible officers held liable.
  • Suspension or cancellation applicable if compliance project incomplete.
  • New project applications withheld if prior compliance projects remain incomplete.

Criminal Prosecution

  • HLURB authorized to institute criminal complaints following due process.

Repealing Clause

  • Repeals inconsistent prior board resolutions and rules.
  • Specifically repeals Board Resolution No. 946, Series 2017.

Separability

  • Invalid parts do not affect the rest of the Rules.

Effectivity

  • Rules effective 15 days after publication in Official Gazette or national newspaper.

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