Gov’t housing programs in place

The potential of the Philippine real estate sector is sky high… there are opportunities for growth and development all around us,” said Sen. Win Gatchalian in a keynote speech he delivered before the Philippine chapter of the Federation Internationale des Administrateurs de Bien & Conselis Immobiliers. “Along with these opportunities, however, comes the very real [threat] of homelessness and inadequate shelter presented by the country’s low-cost housing shortage.”

To address these concerns, the state has created a comprehensive and continuing Urban Development and Housing Program, which covers all lands in urban and urbanizable areas, including existing areas for priority development sites, and in other areas that may be identified by the local government units as suitable for socialized housing.

Said program, however, will not cover:

those lands covered by the Comprehensive Agrarian Reform Law;

those actually used for national defense and security of the State;

those used, reserved or otherwise set aside for government offices, facilities and other installations, whether owned by the national government, its agencies and instrumentalities, including government-owned or -controlled corporations (GOCCs), or by the local government units (LGU), except those which were not used for the purpose for which they were reserved or set aside for the past 10 years from the effectivity of the Urban Development and Housing Act (UDHA) of 1992, as amended;

those used or set aside for parks, reserves for flora and fauna, forests and watersheds, and other areas necessary to maintain ecological balance or environmental protection as determined and certified by the proper government agency; and

those actually and primarily used for religious, charitable, or educational purposes, cultural and historical sites, hospitals, and health centers, and cemeteries or memorial parks.

Under the UDHA, socialized housing, which refers to housing programs and projects covering houses and lots or home lots only undertaken by the government or the private sector, shall be the primary strategy in providing shelter for the underprivileged and homeless.

After conducting an inventory of lands in their respective cities and municipalities, the LGUs shall coordinate with the National Housing Authority, Housing and Land Use Regulatory Board, National Mapping Resource Information Authority, and Land Management Bureau in identifying those suitable for socialized housing and as resettlement areas.

Data from the Housing and Urban Development Coordinating Council (HUDCC), however, shows a housing backlog from 1.37 million units in 2012 to 1.75 million units from 2013 to 2015. If left unaddressed, this backlog can shoot to 12.5 million by 2030.

Thus, the Congress enacted the Balanced Housing Development Program Amendments Act (BHDPAA), which amends certain provisions of the UDHA.

Under this amendatory law, owners and/or developers of proposed subdivision and condominium projects shall be required to develop an area for socialized housing equivalent to at least 15 percent of the total subdivision area or total subdivision project cost and at least 5 percent of condominium area or project cost, at the option of the developer. Proposed socialized subdivision and condominium units shall be exempted from this requirement.

The HUDCC and National Economic and Development Authority (Neda) shall jointly determine and set separate socialized housing price ceilings for said projects, which shall be reviewed or revised every two years.

To comply with the BHDPAA, such owners and developers may likewise develop socialized housing in a new settlement; enter into joint venture agreements with LGUs, housing agencies, another private developer, or a duly accredited nongovernmental organization engaged in the provision of socialized housing; and participate in a new project under the community mortgage program.

Any person who fails or refuses to comply with these requirements shall be imposed a fine of not less than P500,000 for the first offense, suspension of license to do business for a period of three to six months, and a fine of not less than P500,000 for the second offense, and cancellation of license to do business for the third offense.