ARC 150: HOUSING

UNIVERSITY OF PANGASINAN
COLLEGE OF ENGINEERNG & ARCHITECTURE
DEPARTMENT OF ARCHITECTURE

RESEARCH WORK NO. 2

“PHILIPPINE PERSPECTIVE HOUSING DEMAND”

SCHEDULE: T/TH 11:00- 12:00 AM

UP-FB1-BSAR5-01

RESOLME JHON- KENETH P.

STUDENT

AR. CESAR L. AGPOON

INSTRUCTOR
 TABLE OF CONTENTS

• REVISED RULES AND STANDARDS FOR ECONOMIC

AND SOCIALIZED HOUSING PROJECTS
TO IMPLEMENT BATAS PAMBANSA BLG. 220……………………………………………………...3

• RULE I……………………………………………………………………………………………………….3

• RULE II……………………………………………………………………………………………………...3

• RULE III
APPROVAL OF SUBDIVISION PLANS AND BUILDING DESIGNS………………………………..37

• RULE IV REGISTRATION AND LICENSING OF

ECONOMIC AND SOCIALIZED HOUSING PROJECTS…………………………………………….42

• RULE V MISCELLANEOUS PROVISIONS,……………………………………………………………48

• THE PHILIPPINE HOUSING DEMAND………………………………………………………………67

• PHILIPPINE PERSPECTIVE ON HOUSING -CURRENT

HOUSING NEEDS, DEMAND AND SUPPLY…………………………………………………………..70
 REVISED RULES AND STANDARDS FOR ECONOMIC AND SOCIALIZED
HOUSING PROJECTS
TO IMPLEMENT BATAS PAMBANSA BLG. 220

Pursuant to Section 3 of BP 220, the Housing and Land Use Regulatory Board is authorized to
establish and promulgate two levels of standards and technical requirements for the development
of economic and socialized housing projects/units in urban and rural areas from those provided in
PD 957, PD 1216, PD 1096, and PD 1185, hence the following rules are hereby promulgated.

RULE I
GENERAL PROVISIONS

Section 1. Scope of Application

These rules and standards shall apply to the development of economic and socialized housing
projects in urban and rural areas as defined in Section 2 of BP Blg. 220. They shall apply to the
development of either a house and lot or a house or lot only.

Section 2. Declaration of Policies

It is a policy of the government to promote and encourage the development of economic and
socialized housing projects, primarily by the private sector in order to make available adequate
economic and socialized housing units for average and low income earners in urban and rural
areas.

RULE II
MINIMUM DESIGN STANDARDS AND REQUIREMENTS FOR ECONOMIC
AND SOCIALIZED HOUSING PROJECTS

Section 3. Compliance with Standards and Guidelines

Development of economic and socialized housing projects shall be in accordance with the
minimum design standards herein set forth.

Section 4. Basis and Objectives of the Minimum Design Standards

The minimum design standards set forth herein are intended to provide minimum requirements
within the generally accepted levels of safety, health and ecological considerations. Variations,
however are also possible, as may be based on some specific regional, cultural and economic
setting, e.g., building materials, space requirement and usage. This minimum design standards
encourages the use of duly accredited indigenous materials and technology such as innovative
design and systems, modular systems and components among others. The parameters used in
formulating these Design Standards are:

A. Protection and safety of life, limb, property and general public welfare.
 B. Basic needs of human settlements, enumerated in descending order as follows:

1. Water

2. Movement and circulation

3. Storm drainage

4. Solid and liquid waste disposal

5. Park/playground

6. Power

The provision of these basic needs shall be based on the actual setting within which
the project site is located.

C. Affordability levels of target market

Affordable cost - refers to the most reasonable price of land and shelter based on
the needs and financial capability of Program Beneficiaries and Appropriate
Financing Schemes (RA 7279)

D. Location

Both economic and socialized housing projects shall be located within suitable site
for housing and outside potential hazard prone and protection areas.

Section 5. Technical Guidelines and Standards for Subdivisions

In determining whether an economic and socialized housing shall be allowed, the following
guidelines shall be considered.

A. Site Criteria

1. Availability of basic needs

The prioritized basic needs cited earlier shall preferably be available with reasonable
distance from the project site, but where these are not available, the same shall be provided
for by the developer.

2. Conformity with the Zoning Ordinance or Land Use Plan of the City/Municipality

Generally, housing projects should conform with the zoning ordinance of the
city/municipality where they are located, thus, shall be in suitable sites for housing.
However, where there is no zoning ordinance or land use plan, the predominant land use
 principle and site suitability factors cited herein shall be used in determining suitability of
a project to a site.

Furthermore, if the project is undoubtedly supportive of other land uses and activities (e.g.,
housing for industrial workers) said project shall be allowed.

3. Physical Suitability

A potential site must have characteristics assuring healthful, safe and environmentally
sound community life. It shall be stable enough to accommodate foundation load without
excessive site works. Critical areas (e.g., areas subject to flooding, land slides and stress)
must be avoided.

4. Accessibility

The site must be served by a road that is readily accessible to public transportation lines.
Said access road shall conform to the standards set herein of these Rules to accommodate
expected demand caused by the development of the area. In no case shall a subdivision
project be approved without necessary access road/right-of-way constructed either by the
developer or the Local Government Unit.

B. Planning Considerations

1. Area Planning

Project design should consider not only the reduction of cost of development to a minimum
but also the provision for possible future improvement or expansion, as in the prescription
of lot sizes, right-of-way of roads, open space, allocation of areas for common uses and
facilities.

Land allocation and alignment of the various utilities (roads, drainage, power and water)
of the subdivision shall be integrated with those of existing networks as well as projects
outside the boundaries of the project site, e.g. access roads set forth herein and should
follow the standard specifications of the Department of Public Works and Highways
(DPWH).

2. Site Preservation/Alteration

a. Slope

The finished grade shall have a desired slope to allow rain water to be channeled
into street drains. Where cut and fill is necessary, an appropriate grade shall be
attained to prevent any depression in the area.

Grading and ditching shall be executed in a manner that will prevent erosion or
flooding of adjoining properties.
 b. Preservation of Site Assets Suitable trees with a caliper diameter of 200
milimeters or more, shrubs and desirable ground cover shall be preserved. Where a
good quality top soil exists in the site, it shall not be removed and shall be preserved
for finishing grades of yards, playgrounds, parks and garden area.

c. Ground

Cover Grass, shrubs, plants and other landscaping materials used for ground cover
shall be of variety appropriate for its intended use and location. They shall be so
planted as to allow complete and permanent cover of the area.

3. Easements

Subdivision projects shall observe and conform to the provisions of easements as may be
required by:

a. Chapter IV, Section 51 of the Water Code of the Philippines on water bodies

b. National Power Corporation (NPC) on transmission lines

c. Fault traces as identified by PHIVOLCS per Resolution No. 515, series of 1992

d. Right-of-way of other public companies and other entities.

e. For projects abutting national roads (primary roads) adequate easement shall be
provided for road including loading and unloading as may be required by
national/local government units.

f. Other related laws

4. Circulation

a. Depending on the classification of roads adjacent to the subdivision and the size
of the project site, road network should result into a hierarchy of functions and
should define and serve the subdivisions as one integrated unit.

b. Roads complemented with pathwalk within the subdivision must be so aligned

to facilitate movement within and in linking the subdivision to the nearest major
transportation route and adjacent property. Whenever there is/are existing roads
within the project site which shall be made part of the subdivision, these shall be
improved in accordance with the standards set forth herein.

c. Streets should conform to the contours of the land as much as practicable.

 d. Provisions of major street extension for future connection to adjoining developed
and/or underdeveloped properties shall be mandatory and integrated or aligned with
existing ones, if any.

e. Streets shall be so laid out to minimize critical intersections such as blind corners,
skew junctions, etc.

f. Roads shall conform with civil work design criteria as per Section 10.B.3 of this
rules and sound engineering practices.

C. Design Parameters

1. Land Allocation

a. Saleable Areas

There shall be no fixed ratio between the saleable portion and non-saleable portion
of a subdivision project.

b. Non-saleable Areas

Non-saleable areas shall conform with the minimum requirements for open space
comprising those allotted for circulation system, community facilities and parks
and playgrounds.

b.1 Allocation of Area for Parks and Playgrounds

Area allocated for parks and playgrounds shall be mandatory for projects 1 hectare
or above and shall be strategically located within the subdivision project.

Allocated areas for parks and playgrounds shall be non-alienable and nonbuildable
for community hall but buildable for basketball court. It shall be exclusive of those
areas allocated for community facilities and shall vary

according to the density of lots and/or dwelling units in the subdivision, whichever
is applicable, as shown below:

Table 1: Parks and Playgrounds Allocation

ECONOMIC HOUSING SOCIALIZED HOUSING

Density (No. of Allocation (% of Density (No. of Allocation (% of

lots/DU* per gross area for PP**) lots/DU* per gross area for PP**)
hectare) hectare)
 150 and below 3.5 % 150 and below 3.5 %

151 – 160 4% 151 – 160 4%

161 – 175 5% 161 – 175 5%

176 – 200 6% 176 – 200 6%

201 - 225 7% 201 – 225 7%

Above 225 9% Above 225 9%

* Dwelling units

** Parks and Playgrounds

In no case shall an area allocated for parks and playgrounds be less than 100 square
meters. An addition of 1% increment for every 10 or fraction thereof above 225.

The site shall not be subject to flooding nor situated in steep slopes. Sites potentially
hazardous or dangerous to the health and safety of users especially children, should
be avoided, e.g., along rivers, near dumping site, etc

Location of parks shall be based on hierarchy, accessibility and shall be free from
hazards, risks, barriers, etc.

b.2 Area Allocated for Community Facilities

Mandatory provision of area for neighborhood multi-purpose center both for

economic and socialized housing projects with a gross area of 1 hectare and above.
These areas are non-saleable. However, the developer may provide for areas for
community facilities such as schools and convenience/retail centers in excess of the
requirement set forth in this Rule which shall be deemed saleable. The use of the
said area shall be indicated in the plan and annotated in the title thereto. (Refer to
Table 2)

Table 2: Facilities According to the Number of Saleable Lots/Dwelling Units

for Subdivision Projects 1 Hectare and Above

No. of Saleable Neighborhood Convenience/ Elementary High Tricycle

Lots Multi-Purpose Retail School** School** Terminal*
Center* Center**
and/orDwelling
Unit

10 & below - - - - -
11 - 99 - - - - -
100 - 499 x - - - -
500 - 999 x - - - -
1000 - 1499 x - - - -
1500 - 1999 x x x - x
2000 - 2499 x x x x x
2500 - 3000 x x x x x

* Mandatory Provision of area

** Optional Saleable but when provided in plan the same shall be annotated in the
title.

Community facilities shall be strategically located and easily accessible where they
can serve a maximum number of population, preferably near or side by side by
park/playground.

The area allocated for community facilities shall vary with the density of the
subdivision, i.e., number of lots and/or living units whichever is applicable, as
shown below:

Table 3: Community Facilities Allocation

ECONOMIC HOUSING SOCIALIZED HOUSING

Density (No. of Allocation (% of Density (No. of Allocation (% of

lots/DU* per gross area for CF**) lots/DU* per gross areafor CF**)
hectare) hectare)

150 and below 1.0 150 and below 1.0

151 – 225 1.5 151 – 225 1.5

Above 225 2.0 Above 225 2.0

* Dwelling units

** Community Facilities
 b.3 Circulation System

The area allocated for circulation system shall not be fixed, as long as the prescribed
dimension and requirements for access (both for project site and dwelling units)
specified in these Rules are complied with. Land circulation system shall comply
with the pertinent requirements of BP 344 otherwise known as the Accessibility
Law.

Below are the planning considerations to be observed for circulation layout:

a. Observance of the hierarchy of roads within the subdivision.

b. Conformance to natural topography.

c. Consideration for access and safety, e.g., adequate radius, minimum

number of roads at intersections, moderate slope/grade, adequate sight
distance, no blind corners, etc.

d. Optimization as to number of lots to lessen area for roads, at the same

time enhances community interaction.

b.3.1 Hierarchy of Roads

Hierarchy of roads (with respect to function, dimensions and project area) shall be
observed when planning the road network such that no major or minor road align
with an alley or pathwalk.

Table 4: Hierarchy of Roads

PROJECT SIZE ECONOMIC HOUSING SOCIALIZED HOUSING

RANGE (has) HOUSING

2.5 has. And below Major, minor, motor court, Major, minor, motor court,
alley pathwalk

Above 2.5 – 5 - do - - do -

Above 5 - 10 Major, collector, minor, - do -

Motor court, alley

Above 10 - 15 - do - Major, collector, minor, Motor

court, pathwalk

Above 15 – 30 - do - - do -
 Above 30 - do - - do -

b.3.2 Road Right-Of-Way

The corresponding right-of-way for hierarchy of roads shall be as follows:

Table 5: Road Right-of-Way

PROJECT SIZE RIGHT OF WAY (m)

RANGE
(has.) ECONOMIC HOUSING SOCIALIZED HOUSING

Major Collector Minor Major Collector Minor

2.5 and below 8 - 6.5 8 - 6.5

Above 2.5 – 5.0 10 - 6.5 10 - 6.5

Above 5.0 – 10 10 8 6.5 10 - 6.5

Above 10 - 15 10 8 6.5 10 8 6.5

Above 15 – 30 12 8 6.5 10 8 6.5

Above 30 15 10 6.5 12 10 6.5

ROW Carriageway ROW Carriageway

Motor Court 6 5 6 5

Alley 2 - - -

Pathwalk - - 3 -

The minimum right-of-way of major roads shall be in accordance with the

preceding table.1a??h!1 However, in cases where the major road will serve as
interconnecting road, it shall have a minimum right-of-way of 10 meters. It shall
have a 15-centimeter mix gravel (pit run) base course on well-compacted sub grade.
Major roads shall maintain a uniform width of road right-of-way. Tapering of road
width shall not be allowed where the road right-of-way is wider than the prescribed
standard for the interconnecting road of the proposed subdivision.

Minor roads shall have a right-of-way of 6.50 meters wide.

Interior subdivision project must secure right-of-way to the nearest public road and
the right-of-way shall be designated as interconnecting road with a minimum width
of 10 meters. This fact shall be annotated on the title of the said road lot and must
be donated and deemed turned over to the LGU upon completion of the said
interconnecting road. (See Figure 1: Interconnecting Road)

Figure 1: Interconnecting Road

Subdivision projects abutting a main public road must provide sufficient setbacks
with a minimum dimension of 3.0 meters in depth and 5.0 meters in length at both
sides of the subdivision entrance to accommodate loading and unloading of
passengers. (See Figure 2: Setback Requirement Along Main Public Road)
 Figure 2: Setback Requirement Along Main Public Road

Contiguous projects or projects to be developed by phases shall be provided with

interconnecting roads with a minimum right-of-way of 10.0 meters.

Alley shall have a width of 2.0 meters intended to break a block and to serve both
pedestrian and for emergency purposes, both ends connecting to streets. It shall not
be used as access to the property.

Pathwalk shall have a width of 3.0 meters intended only to provide pedestrian
access to property for socialized housing projects. It shall have a maximum length
of 60 meters.

b.3.3 Planting Strips

Planting strips as required under PD 953 and its Implementing Rules and
Regulations shall be observed in accordance with the following road specifications:

Table 6: Width of Planting Strips and Sidewalks

RIGHT-OF- ECONOMIC HOUSING SOCIALIZED HOUSING

WAY
(m) Planting Strip Sidewalk Planting Strip Sidewalk
(m) (m) (m) (m)

15 1.3 1.2 1.3 1.2

12 0.8 1.2 0.8 1.2

10 0.8 1.2 0.8 1.2

8 0.4 0.6 0.4 0.6

6.5 Optional 0.5 Optional 0.5

Note: Refer to Supplemental Rules and Regulations to Implement PD 953 Tree Planting. –
Every owner of existing subdivision is required among others to plant trees in
designated area as per Resolution No. R-532, series of 1993.1a⍵⍴h!1 (Approving
the Rules and Regulations Implementing PD 953 “Requiring the Planting of Trees
in Certain Places and Penalizing Unauthorized Cutting, Destruction, Damaging and
Injuring of Certain Trees, Plans and Vegetation”).

b.3.4 Road Pavement

Major, minor roads and motor court for economic and socialized housing projects
shall be paved with asphalt with minimum thickness of 50 millimeters or concrete
with minimum thickness of 150 millimeters and a minimum compressive strength
of 20.7 Mpa at 28 days. Sidewalk or alley shall be of macadam finish.

b.3.5 Road Intersection

Roads should intersect at right angles as much as practicable. Multiple intersections

along major roads shall be minimized. Distance between offset intersections should
not be less than 20 meters from corner to corner.

Road intersections shall be provided with adequate curb radii consistent with sound
engineering principles. (See Figure 3: Curb Radii Dimension)

See Figure 3: Curb Radii Dimension

b.3.6 Road Grade/Slope

Crown of the roads shall have a slope of not less than 1.5 to 9 percent. (See Figure
4: Road Grade Slope)

Grades and vertical curbs shall conform to the design requirements of the
Department of Public Works and Highways (DPWH).

See Figure 4 : Road Grade (Slope)

2. Lot Requirement

a. Lot Planning

a.1 A lot shall be served by an independent access either by a road, motor court, or
path walk. Path walk shall have a maximum length of 60 meters intended only as
pedestrian access to property for socialized housing projects.

a.2 Deep lots and irregularly shaped lots shall be avoided.

a.3 Whenever possible, lot frontage elevation shall be at street level.

a.4 Lots shall be protected against physical hazards. No lot shall be laid out where
potential risks exist (e.g. erosion, slides, flooding, fault lines, etc.)

a.5 Lots shall be protected against non-conforming uses and/or other risks through
the provision of adequate buffer strips, protective walls, and roads or other similar
devices.

a.6 Lot shall be so laid out that administrative boundaries, water courses/drainage
ways utility lines do not bisect the lots.

b. Minimum Lot Area(Amended per Board Res. No. 824, Series of 2008)

The minimum lot area of various types of housing for economic and socialized
housing project shall be as follows:

Table 7. Minimum Lot Area

Type of Housing Economic (sq.m.) Socialized (sq.m.)

a. Single detached 72 64

b. Duplex/single attached 54 48

c. Row houses 36 28

Note:

1. Saleable lots designated as duplex/single attached and/or row house lots

shall be provided with housing components.

2. Price of saleable lots intended for single detached units shall not exceed
40% of the maximum selling price of the house and lot package.

c. Lot Frontages(Amended per Board Res. No. 824, Series of 2008)

The minimum lot frontages for various types of housing both for economic and
socialized housing projects shall be as follows:

Table 8. Minimum Lot Frontage

Types of Housing/Lot Economic Housing Socialized Housing

1. Single detached
a. Corner lot 8m 8m
b. Regular lot 8m 8m
c. Irregular lot 4m 4m
d. Interior lot 3m 3m

2. Duplex/single attached 6m 6m

3. Row house 4m 3.5m

Note:

For row houses, there shall be a maximum of 20 units per block or cluster but in no
case shall this be more than 100 meters in length.

3. Length of Block

Maximum block length is 400 meters. However, block length exceeding 250 meters
shall already be provided with a 2-meter alley approximately at midlength.

4. Shelter Component

a. Floor Area Requirement

The minimum floor area requirement for single-family dwelling shall be 22

square meters for economic housing and 18 square meters for socialized
housing.

b. Minimum Level of Completion

The minimum level of completion for economic housing shall be complete

house based on the submitted specifications. For socialized housing project,
it shall be shell house with doors and windows to enclose the unit.

Provision of firewall shall be mandatory for duplex and single-attached

units and at every unit for row houses.

5. Setback/Yard

The minimum setback of dwelling unit both for economic and socialized housing
project shall be as follows:

a. Front Setback 1.5 m.

 b. Side yard 1.5 m (from the building line)

c. Rear yard 2.0 m.

d. Abutments May be allowed per requirements of the National Building

Code of the Philippines

6. Water Supply

Whenever a public water supply system exists, connection to it by the subdivision

is mandatory.

Each lot and/or living unit shall be served with water connection (regardless of the
type of distribution system). Water supply provided by the local water district shall
be potable and adequate. It shall be complemented/supplemented by other sources,
when necessary, such as communal well, which may be located strategically for
ease and convenience in fetching water by residents and at the same time not closer
than 300 meters from each other.

If public water supply system is not available, the developer shall provide for an
independent water supply system within the subdivision project.

Minimum quantity requirement shall be 150 liters per capita per day Each
subdivision must have at least an operational deep well and pump sets with
sufficient capacity to provide average daily demand (ADD) to all homeowners
provided a spare pump and motor set is reserved.

Likewise, required permits from the NWRB shall be obtained and standards of the
Local Water Utilities Administration (LWUA) shall be complied with.

If ground reservoir is to be put up, an area shall be allocated for this purpose (part
of allocation for community facilities). The size shall depend on volume of water
intended to be stored. It shall be protected from pollution by providing buffer of at
least 25 meters from sources of pollution/contamination.

For elevated reservoir, structural design shall comply with accepted structural
standards or the National Building Code of the Philippines. The elevated reservoir
or water tank capacity must be 20% average daily demand plus fire reserve.

Alternative sources of water supply may be availed of such as collected rain water
and other devices with water impounding capacity.

Provision for fire protection shall comply with the requirements of the Fire Code
of the Philippines. Whichever is applicable, the Local Government Unit shall
provide each community with fire hydrants and a cistern that are operational at all
times.
For a multi-storey building, a water tank shall be provided if the height of the
building requires pressure in excess of that in the main water line. Capacity should
be 20% average daily demand plus fire reserve.

7. Electrical Power Supply

When power is available within the locality of the project site, its connection to the
subdivision is required. Actual connection, however, may depend on the minimum
number of users as required by the power supplier.

Provision of street lighting per pole shall be mandatory if poles are 50-meter
distance and at every other pole if the distance is less than 50 meters.

Installation practices, materials and fixtures used, shall be in accordance with the
provisions of the existing rules and regulations of the National Electrical Code of
the Philippines or the Local Electric Franchise Holder/Local Electric Cooperative
or the local utility company.

Electric bills shall be proportionately shouldered by the users prior to issuance of

Certificate of Completion (COC) and turn over of open space to Local Government
Unit (LGU)

8. Sewage Disposal System

a. Septic Tank

The sewage disposal system shall be communal or individual septic tank

conforming to the design standard of the Sanitation Code of the Philippines.

b. Connection to Community Sewer System

Whenever applicable, connections shall be made to an approved public or

community sewer system, subject to the requirements and provisions of the
Sanitation Code of the Philippines and other applicable rules and
regulations with regard to materials and installation practices.

9. Drainage System

The design of the drainage system of the subdivision shall take into consideration
existing development of adjacent areas relative to their impact/effect on its drainage
system, if any. Further, it shall conform with the natural drainage pattern of the
subdivision site, and shall drain into appropriate water bodies or public drainage
system or natural outfalls. In no case shall drainage outfalls drain into a private lot.
Its layout shall conform with sound engineering design principles certified by a
duly licensed civil/sanitary engineer. Drain lines shall be of durable materials and
approved installation practices.
 The minimum drainage system for economic and socialized housing shall be
concrete lined canal with load bearing cover.

In case of non-existence of drainage system in the locality, catchment area for

drainage discharge shall be provided for and developed by the owner/developer in
consultation with local authorities or private entities concerned, to prevent flooding
of adjacent property. Moreover, said catchment area shall be made safe and
maintained.

If applicable, underground drainage system shall be provided with adequate

reinforced concrete pipes (RCP), catch basins, manholes/inlets and cross drain for
efficient maintenance. Minimum drainage pipe shall be 300 milimeters.

10. Garbage Disposal System

Garbage disposal shall be undertaken by the local government or in the absence

thereof, by individual lot owners or homeowners association, with proper
observance of sanitary practices and methods.

11. Fire Firefighting

The Homeowners Association shall form fire brigade in collaboration with the
barangay fire brigade. Water for fire fighting shall be part of the water supply
requirements and shall comply with the requirements of the local/district fire unit
of the Philippine National Police.

Table 9: PLANNING AND DESIGN STANDARDS FOR A RESIDENTIAL

SUBDIVISION PROJECT UNDER BP 220 PARAMETERS ECONOMIC
HOUSING SOCIALIZED HOUSING

See Table 9

Section 6. Building Design Standards and Guidelines

Projects incorporating housing components shall comply with the following design standards and
guidelines.

A. Single-Family Dwelling (Applicable for both Economic and Socialized Housing)

1. Lot Planning

a. Access to the Property

Direct access to the single-family dwelling shall be provided by means of an

abutting public street or pathwalk. However, pathwalk shall only be allowed as
pedestrian access to property for Socialized Housing projects.
b. Access to the Dwelling Unit

An independent means of access to the dwelling unit shall be providedwithout

trespassing adjoining properties. Acceptable means of access to the rear yard of the
dwelling unit shall be provided without passing through any other dwelling unit or
any other yard.

c. Open Space Requirements

Open spaces shall be located totally or distributed anywhere within the lot in such
a manner as to provide maximum light and ventilation into the building.

d. Sizes and Dimensions of Courts or Yards

The minimum horizontal dimension of courts and yards shall not be lessthan 2.0
meters. All inner courts shall be connected to a street or yard, either by a
passageway with a minimum width of 1.20 meters or by a door through a room or
rooms.

Every court shall have a width of not less than 2.0 meters for one and two storey
buildings.1a⍵⍴h!1 However, this may be reduced to not less than 1.50 meters in
cluster living units such as quadruplexes, row houses and the like,one or two stories
in height with adjacent courts with an area of not less than 3 square meters.
Provided, further, that the separation walls or fences, if any, shall not be higher than
2.0 meters. Irregularly shaped lots such as triangular lots and the like whose courts
may also be triangular in shape may be exempted from having a minimum width
of 2.0 meters, provided that no side thereof shall be less than 3.0 meters.

e. Abutments

Abutments on the side and rear property lines may be allowed provided the
following requirements shall be complied with:

1) Open space as prescribed in the table below:

Table 10: Private Open Space Requirements

1a⍵⍴h!1

Percent of Open
Space
Type of Lot
All
Residential
Others
 a. Interior lot (lot located in the interior of a block made
accessible from a public street or alley by means of a private 50% 25%
access road)

b. Inside lot (non-corner or single frontage lot) 20% 15%

c. Corner and/or through lot 10% 15%

d. Lots bounded on 3 or more sides by public open spaces such

5% 5%
as streets, easement of seashores, rivers, esteros, etc.

2) Window opening as prescribed in number 2.C.2 below.

3) Firewall shall have a minimum of one-hour fire resistive rating.

2. Building Design Standards (Applicable for both Economic and Socialized Housing)

a. Space Standards

Spaces within the dwelling structures shall be distributed in an economical,

efficient and practical manner so as to afford the maximum living comfort and
convenience and to insure health and safety among the occupants. It shall provide
complete living facilities for one family including provisions for living, sleeping,
laundry, cooking, eating, bathing and toilet facilities.

b. Ceiling Heights

1) Minimum ceiling height for habitable rooms shall be measured from the finished
floor line to the ceiling line. Where ceilings are not provided, a minimum headroom
clearance of 2.0 meters shall be provided. (See Fig. 5: Minimum Ceiling Heights)

Fig. 5: Minimum Ceiling Heights

2) Mezzanine floors shall have a clear ceiling height of not less than 1.80 meters above
and below it, provided that it shall not cover 50% of the floor area below it. (See
Fig. 6: Mezzanine Floor)

Figure 6 : Mezzanine Floor

c. Openings

1) Doors

a) A minimum of one entrance/exit shall be provided where the number of

occupants is not more than 10 and 2 entrances/exits where the number of
occupants is greater than 10.
b) Doors shall have a minimum clear height of 2.0 meters. Except for bathroom
and mezzanine doors which shall have a minimum clear height of 1.80
meters.

c) Minimum clear widths of doors shall be as follows:

Main Door ............................. 0.80 m.

Service/Bedroom Doors ....... 0.70 m.

Bathroom Door...................... 0.60 m.

(See Fig. 7: Door Openings)

Fig. 7 : Door Openings

2) Windows

a) Rooms for habitable use shall be provided with windows with a total free
area of openings equal to at least 10% of the floor area of the room.

b) Bathrooms shall be provided with window/s with an area not less than 1/20
of its floor area.

c) Required windows may open into a roofed porch where the porch:

c.1 abuts court, yard, public street or alley, or open water course and other
public open spaces;

c.2 has a ceiling height of not less than 2.0 meters.

3) Interior Stairs
 The stairs shall ensure structural safety for ascent and descent, even in
extreme cases of emergency. It shall afford adequate headroom and space
for the passage of furniture.

a) Width. Stairways shall have a minimum clear width of 0.60 meter.

b) Riser and Run. Stairs shall have a maximum riser height of 0.25 meter and a
minimum tread width of 0.20 meter. Stair treads shall be exclusive of nosing
and/or other projections.

c) Headroom Clearance. Stairs shall have a minimum headroom clearance of

2.0 meters. Such clearance shall be established by measuring vertically from
a place parallel and tangent to the stairway tread moving to the soffit above
all points.

d) Landings. Every landing shall have a dimension measured in the direction of

travel equal to the width of the stairway. Maximum height between landing
shall be 3.60 meters.

e) Handrails. Stairways shall have at least one handrail on one side provided
there is a guard or wall on the other side. However, stairways with less than
4 risers need not have handrails, and stairs with either a guard or wall on
one end need not be provided with a handrail on that end.

f) Guard and Handrail Details. The design of guards and handrails and
hardware for attaching handrails to guards, balusters of masonry walls shall
be such that these are made safe and convenient.

f.1 Handrails on stairs shall not be less than 0.80 meter or more than
1.20 meters above the upper surface of the tread, measured vertically
to the top of the rail from the leading edge of the tread. (See Fig. 8:
Stairway Design)

f.2 Handrails shall be so designed as to permit continuous sliding of

hands on them and shall be provided with a minimum clearance of
38 millimeters from the wall to which they are fastened. (See Fig. 8:
Stairway Design).

f.3 The height of guards shall be measured vertically to the top guard
from the leading edge of the tread or from the floor of landings. It
shall not be less than 0.80 meter and no more than 1.20 meters.
Masonry walls may be used for any portion of the guard.

Fig. 8: Stairway Design

g) Winding and Circular Stairways. Winding and circular stairways may be
used if the required width of run is provided at a point not more than 300
millimeters from the side of the stairway where the treads are narrower but
in no case shall any width of run be less than 150 milimeters at any point.
The maximum variation in the height of risers and the width of treads in any
one flight shall be 5 milimeters. (See Fig. 9: Winding and Circular
Stairways)

Fig. 9 : Winding and Circular Stairways

 h) Ladders. The use of ladders may be allowed provided that the maximum
distance between landings shall be 1.80 meters.

d. Roofing

Roofing material that is impervious to water shall be provided.

e. Electrical Requirements

There shall be provided at least one light outlet and one convenience outlet per
activity area.

f. Firewall (Amended per Board Res. No. 824, Series of 2008)

Whenever a dwelling abuts on a property line, a firewall shall be required. The

firewall shall be of masonry construction, at least 150 millimeters or 6 inches
thick and extend vertically from the lowest portion of the wall adjoining the living
units up to a minimum height of 0.30 meter above the highest point of the roof
attached to it.7!ᕼdMᗄ7 The firewall shall also extend horizontally up to a
minimum distance of 0.30 meter beyond the outermost edge of the abutting living
units. A firewall shall be provided for duplex/single-attached units and at every unit
for row houses. No openings whatsoever shall be allowed except

when the two abutting spaces of 2 adjacent living units are unenclosed or partially
open, e.g. carports, terraces, patios, etc.; instead, a separation wall shall be required.
(See Fig. 10: Firewall for Dwelling Units on Property Line).

Ceiling should be compartmentalized and should not be continuous from one

living unit to another.

Fig. 10: Firewall for Dwelling Units on Property Line

B. Multi-Family Dwellings and Condominiums (Applicable for both Economic and Socialized
Housing)

1. Lot Planning

a. Access to the property. Direct vehicular access to the property shall be provided by means
of an abutting improved public street.

b. Access to the dwelling. An independent means of access shall be provided to each dwelling,
or group of dwellings in a single plot, without trespassing adjoining properties. Each
dwelling must be capable of maintenance without trespassing adjoining units. Utilities and
service facilities must be independent for each dwelling unit.

Each dwelling unit shall be provided with a sanitary means for the removal of garbage and
trash.

c. Access to living units. An independent means of access to each living units shall be provided
without passing through any yard of a living unit or any other yard.

d. Non-residential use. Portions of the property may be designed for nonresidential use
provided the type of non-residential use is harmonious or compatible with the residential
character of the property. Some examples of allowable non-residential uses are private
 clinic/office, garages, and carports.

The computation of the non-residential area shall include hallways, corridors or similar
spaces which serve both residential and nonresidential areas. (See Fig. 11: Non-Residential
Use)

Fig. 11: Non - Residential Use

e. Cooperative store, and structures for the homeowners’ association.

Any non-residential use of any portion of the property shall be subordinate to the residential
use and character of the property. The floor area authorized for non-residential use, whether
in the principal dwelling structure or in any accessory building, shall not exceed 25% of
the total residential area.

f. Open Space Requirements. Portions of the property shall be devoted to open space to provide
adequate light, ventilation and fire safety.

1) Setbacks from the property line shall be maintained, the minimum of which shall be
the following:

Table 11: Minimum Setbacks per Storey

Kinds of Lot Minimum Setback Requirement Per Storey

1&2 3 4 5 6 7 8 9 10 11 12

Interior

Inside 2.0 2.3 2.6 2.9 3.2 3.5 3.8 4.1 4.4 4.7 5.0

Corner/Through
 Lot abutting 3 or more streets,
alleys, rivers, esteros, etc.

2) Distance between buildings shall also be adequately maintained to ensure light and
ventilation.

In general, the minimum distance between 2 buildings in which the taller buildings
does not exceed 2 storeys shall be 4.0 meters. And the minimum horizontal
clearance between the two roof eaves shall be 1.50 meters. (See Fig. 12: Distance
Between 2-Storey Buildings). Fig. 12: Distance Between 2-Storey Buildingspage
29 in source

Fig. 12: Distance Between 2-Storey Buildings

The minimum distance between two buildings wherein the taller building
has 3 or 4 storeys, shall be 6.0 meters. And the minimum horizontal
clearance between the two roof eaves shall be 2.0 meters. (See Fig. 13:
Distance Between 3-Storey Buildings)

Fig. 13: Distance Between 3 - Storey Buildings

The minimum distance between buildings with more than 4 storeys shall be
10 meters. The minimum horizontal clearance shall be 6.0 meters.

Except, however, in cases when the two sides of the buildings facing each
other are blank walls, i.e., either there are no openings or only minimal
openings for comfort rooms, the minimum distance between the buildings
shall be 2.0 meters. And the horizontal clearance between the roof eaves
shall be 1.0 meter. (See Fig. 14: Distance Between Blank Walls of Two
Buildings)

Fig. 14: Distance Between Blank Walls of Two Buildings

Fig. 15: Measurement of Distance Between Buildings

g. Parking Requirements.(Amended per Board Res. No. 824, Series of 2008)

For multi-family dwellings and condominiums, the parking requirement

shall be one (1) parking slot per eight (8) living units. The size of an
average automobile (car) parking slot must be computed at 2.5 meters
by 5.0 meters for perpendicular or diagonal parking and at 2.15 meters
by 6.0 meters for parallel parking.

The driveway may be used as parking area provided that the minimum
right-of-way shall be maintained. (See figure 16: Parking Layout).

Fig. 16: Parking Layout

 Off-site parking may be allowed in addition to on-site parking provided that
designated parking area is part of the project and provided further that it
shall not be 100 meters away from the condominium project.

Mandatory compliance with additional parking space required by local

ordinances.

2. Building Design Standards

a. Living Units

In general, all building design standards for the single-family dwelling shall
apply to all living units of multi-family dwellings, except that, the minimum
 floor area of a living unit in multi-family dwellings shall be 22 square
meters for economic housing and 18 square meters for socialized housing.
For BP 220 condominium projects, the minimum floor area shall be 18
square meters.

b. Exits, Corridors, Exterior Exit Balconies and Common Stairways

Standards for exits, corridors, exterior balconies and common stairways

shall conform with the provisions of the National Building Code of the
Philippines and its Implementing Rules and Regulations as well as Section
3.1007 of the Implementing Rules and Regulations of the Fire Code of
the Philippines (Annex 1).

Automatic fire alarm suppression system should be provided for

structure more than 15 meters in height.

c. Utilities and Services

To ensure healthful and livable conditions in the project, basic utilities and services
shall be provided, the minimum requirements of which shall be:

1) Water Supply

Water supply shall be potable and adequate in amount; a main service

connection and a piping system with communal faucets to serve the
common areas like the garden, driveways, etc. shall be provided. Pipes
branching out from the main water line shall service the individual units
which shall be provided with individual water meters.

2) Power Supply/Electrical Service

If available in the vicinity, a main power service shall be provided with a

main circuit to service common lighting as well as common power needs of
the dwellings. Like the water system, however, branch circuits with separate
meters shall service the individual living units.

3) Drainage System

Surface run-offs shall be channeled to appropriate repositories.

4) Sewage Disposal System

Sewage disposal may be accomplished by any of the following means:

a) discharge to an existing public sewerage system 36

 b) treatment in a community disposal plant or communal septic tank

c) treatment in individual septic tanks with disposal by absorption field or

leaching pit

5) Garbage Disposal System

Adequate services for the regular collection and disposal of garbage and
rubbish shall be in compliance with applicable local ordinances.

6) Elevator Requirements (If Applicable)(Amended per Board Res. No. 824, Series of
2008)

Provision of elevators shall be required for buildings 6 storeys and beyond.

The same shall conform with the plans and specifications of the duly
licensed design architect/engineer who shall determine the requirement for
elevators including the number of cars, capacity, safety features and
standards, elevator type, speed and location in relation to the over all design
and use of the building. The design architect/engineer shall certify under
oath that all components thereof are in accordance with the National
Building Code of the Philippines, Accessibility Law, National Industry
Standards and other pertinent laws.

Compliance to the provisions of the Fire Code of the Philippines shall be

mandatory.

3. General Construction Requirements

a. Structural Requirements

All construction shall conform with the provisions of the latest edition of
the Philippine Structural Code.

b. Electrical Requirements

All electric systems, equipment and installation shall conform with the
provisions of the latest edition of the Philippine Electrical Code and the
requirements of the electric utility that serves the locality.

c. Sanitary Requirements

All sanitary systems, equipment and installation shall conform with the
provisions of the latest edition of Sanitation Code of the Philippines and its
Implementing Rules and Regulations and National Plumbing Code.

d. Construction Materials
 The use of indigenous materials for site development and construction of
dwellings shall be encouraged, as long as these are in conformity with the
requirements of these Rules and ensures a building life span of at least 25
years, or in correspondence to loan terms payment.

Section 7. Variances/Exemptions

Variances from these standards and requirements may be granted pursuant to the conditions
stipulated in Board Resolution No. R-97, series of 1982 (Annex 2) under strict observance
hereof will cause unnecessary hardship to the case of regional
considerations/characteristics, peculiarities of the location and other relevant factors.

RULE III
APPROVAL OF SUBDIVISION PLANS
AND BUILDING DESIGNS

Section 8. Approval Required

No development of economic and socialized housing projects shall be allowed without

having complied with the standards and approval procedures set forth in these Rules.

An approved socialized housing project shall not be upgraded to any other type of housing
project.

Section 9. Approval of Proposed Residential Houses of Average and Low-Income Earners

Individual lot owners who are average and low-income earners as defined under BP 220
may construct their individual residential houses in the manner provided by these Rules,
provided that:

1. The development approval is secured from Local Government Unit thru Sangguniang Bayan
or Sangguniang Panglunsod prior to their construction and;

2. The proposed building plans are submitted to the city/municipal engineer for approval.

Section 10. Application for Approval of Subdivision Development Plan

Every registered owner or developer of a parcel of land who wishes to convert the same
into a subdivision project shall apply with the Housing and Land Use Regulatory Board or
Local Government Unit concerned for approval of the subdivision development plan by
filing the following:

A. For Optional Application for Preliminary Subdivision Development Plan

1. At least 2 sets of site development plan (schematic plan) at a scale ranging from 1:200 to
1:2,000 showing the proposed layout of streets, lots, parks and playgrounds and other
 features in relation to existing conditions in the area, prepared, signed and sealed by any
licensed and registered architect, environmental planner, civil engineer, or geodetic
engineer. (Amended per Board Res. No. 794, Series of 2006)

2. A set of the following documents duly signed and sealed by a licensed geodetic engineer:

a. Vicinity map indicating the adjoining land uses, access, as well as existing facilities
and utilities at least within 500 meters from the property boundaries of the project,
drawn to any convenient scale.

b. Topographic plan to include existing conditions as follows:

1) Boundary lines: bearings and distances or geographic coordinates of the

reference or tie point (referred to as the BLLM #);

2) Streets, easements, width and elevation of right-of-way within the project

and adjacent subdivisions/areas;

3) Utilities within and adjacent to the proposed subdivision project, location,

sizes and invert elevations of sanitary and storm or combined sewers;
location of gas lines, fire hydrants, electric and telephone poles and street
lights. If water mains and sewers are not within/adjacent to the subdivision,
indicate the direction and distance to and size of nearest one, showing invert
elevations of sewers, if applicable;

4) Ground elevation of the subdivision: for ground that slopes less than 2%,
indicate spot elevations at all breaks in grade, along all drainage channels
and at selected points not more than 25 meters apart in all directions: for
ground that slopes more than 2%, either indicate contours with an interval
of not more than 0.50 meter if necessary due to irregular land or need for
more detailed preparation of plans and construction drawings.

5) Watercourses, marshes, rock and wooded areas, presence of all preservable

trees in caliper diameter of 200 milimeters, houses, barns, shacks, and other
significant features.

6) Proposed public improvements: highways or other major improvements

planned by public authorities for future construction within/adjacent to the
subdivision.

c. Survey plan of the lot(s) as described in TCT(s).

3. At least 2 copies of certified true copy of title(s) and current tax receipts

4. Right to use or deed of sale of right-of-way for access road and other utilities when
applicable, subject to just compensation for private land.
 Approval of the Preliminary Subdivision Development Plan will be valid only for a period
of 180 days from date of approval.

B. For application for Subdivision Development Permit

1. All requirements for application for preliminary Subdivision Development Plan as

specified on Section 10.A of this Rule.

2. Subdivision Development Plan consisting of the site development plan at any of the
following scales: 1:200; 1:1,000; or any scale not exceeding 1:2,000; showing all
proposals including the following:

a. Roads, easements or right-of-way and roadway width, alignment, gradient, and similar data
for alleys, if any.

b. Lot numbers, lines and areas and block numbers.

c. Site data such as number of residential and saleable lots, typical lot size, parks and
playgrounds and open spaces.

The Subdivision Development Plan shall be prepared, signed and sealed by any licensed
and registered architect, environmental planner, civil engineer or geodetic
engineer. (Amended per Board Res. No. 794, Series of 2006)

3. Civil and Sanitary Works Design

Engineering plans/construction drawings based on applicable engineering code and

design criteria to include the following:

a. At least 2 copies of road (geometric and structural) design/plan duly signed and
sealed by a licensed civil engineer.

1) Profile derived from existing topographic map signed and sealed by a

licensed geodetic engineer showing the vertical control, designed grade,
curve elements and all information needed for construction.

2) Typical roadway sections showing relative dimensions of pavement, sub-

base and base preparation, curbs, gutters, sidewalks, shoulders, benching
and others.

3) Details of roadway and miscellaneous structure such as curb and gutter

(barrier, mountable and drop), slope protection wall and retaining wall.

b. At least 2 copies of storm drainage and sanitary sewer system duly signed and sealed
by a licensed sanitary engineer or civil engineer.
 1) Profile showing the hydraulic gradients and properties of sanitary and storm
drainage lines including structures in relation with the road grade line.

2) Details of sanitary and storm drainage lines and miscellaneous structures

such as various types of manholes, catch basins, inlets (curb, gutter, and
drop), culverts and channel linings.

c. At least 2 copies of site grading plan with finished contour lines superimposed on the
existing ground the limits of earth work embankment slopes, cut slopes, surface
drainage, drainage outfalls and others, duly signed and sealed by a licensed civil
engineer.

4. At least two 2 copies of water system layout and details duly signed and sealed by a licensed
sanitary engineer or civil engineer. Should a pump motor has a horsepower (hp) rating of
50 hp or more, its pump rating and specifications shall be signed and sealed by a
professional mechanical engineer.

5. Certified true copy of tax declaration covering the property(ies) subject of the application
for the year immediately preceding;

6. Zoning Certification from HLURB Regional Office.

7. Certified true copy of DAR Conversion Order.

8. Certified true copy of Environmental Compliance Certificate (ECC) or Certificate Of Non-

Coverage (CNC), whichever is applicable, duly issued by the DENR;

9. At least 2 copies of project description for projects having areas of 1 hectare and above to
include the following:

a. Project profile indicating the cost of raw land and its development (total project cost),
amortization schedule, sources of financing, cash flow, architectural scheme, if any,
and work program;

b. Audited financial statement for the last 3 preceding years;

c. Income Tax Return for the last three 3 preceding years;

d. Certificate of registration with Securities and Exchange Commission (SEC);

e. Articles of incorporation or partnership;

f. Corporation by-laws and all implementing amendments, and

g. For new corporations (3 years and below) statement of capitalization and sources of
income and cash flow to support work program.
 10. Plans specifications, bill of materials and cost estimates duly signed and sealed by the
appropriate licensed professionals.

11. Application for permit to drill from the National Water Resources Board (NWRB).

12. Traffic impact assessment for projects 30 hectares and above.

13. List of names of duly licensed professionals who signed the plans and other similar
documents in connection with application filed indicating the following information:

a. Surname;

b. First name;

c. Middle name;

d. Maiden name, in case of married women professional;

e. Professional license number, date of issue and expiration of its validity; and

f. Professional tax receipt and date of issue

g. Taxpayer’s identification number (TIN)

If the establishment of the subdivision project is physically feasible and does not run
counter to the approved Comprehensive Land Use Plan and Zoning Ordinance of the City
or Municipality and the plan complies with these Rules, the same shall be approved and a
Development Permit shall be issued upon payment of the prescribed processing fee.

A Development Permit shall only be valid for a period of 3 years from date of issue if no
physical development is introduced.

The owner or developer shall cause the necessary surveys of the project and prepare the
survey returns with technical description and computations duly signed and sealed by a
licensed geodetic engineer to be submitted together and in accordance with the approved
subdivision plan, to the Land Management Sector (LMS) for verification and approval;
pursuant to Section 50 of PD 1529 (Property Registration Decree) and subject to the
provisions of R.A. 8560 and its Implementing Rules and Regulations.

Section 11. Evaluation of Land Development and Structural

Design Components of Project Should the project be found locationally viable, the Board shall
proceed to determine whether the land development scheme and building design are in accordance
with the standards set forth in these Rules. If the design is not in compliance with the standards set
forth in these Rules, the developer shall be required to revise the same.
Section 12. Survey and Approval of Subdivision Plan

Upon the approval of the subdivision development plan for economic and socialized housing
projects, the developer shall submit the subdivision plan together with the parcellary map to the
Land Management Sector for the conduct of verification survey and approval of the subdivision
scheme.

RULE IV
REGISTRATION AND LICENSING OF
ECONOMIC AND SOCIALIZED HOUSING PROJECTS

Section 13. Application for Registration

A. Common Requirements

No subdivision or condominium intended for economic and socialized housing shall be

sold unless it has been registered and issued a License to Sell in accordance with these
Rules.

Upon receipt of Verified Survey Returns of subdivision plan from the Land Management
Sector, the developer shall cause the registration of the project with the Board by
submitting the following documents:

1. Sworn registration statement using either:

a. HLURB form 001 for corporation (See Annex 3)

b. HLURB form 003 for single proprietorship (See Annex 4)

2. Certified true copy of Transfer Certificate of Title (TCT) or Original Certificate of Title
(OCT) duly stamped with original marking “Certified True Copy” by the proper Register
of Deeds and bearing its seal or security marker.

a. When project covers more than 20 individual titles without the required marks
described above, the following shall be submitted:

1) Photocopy of TCTs

2) Certification from the Register of Deeds concerned with its seal or security
mark giving the following information:

a) TCT or OCT numbers;

b) Name of all registered owner(s) and their sharing, if any;

c) Area covered by each title;

 d) Number of OCT or TCT from which the title is derived;

e) Statement of all uncancelled liens and encumbrances, if any;

f) Lot and block numbers as well as PSD, PSU, PCS, or other relevant
numbers

b. When certified copy of the TCT was issued more than one month prior to application
for Certificate of Registration (CR), affidavit of the owner that the property is free
from liens and encumbrances. When the applicant is not the owner, deed from the
registered owner showing clearly the authority of the applicant to the property, its
development and sale of individual lots or units; to sign and receive documents;
and other relevant authority. Provided, however, that in case the subdivision project
or portion thereof is mortgaged, affidavit of undertaking to submit title; certification
from the mortgagee regarding outstanding balance of loan and amortization
schedule; mortgage of contract; and affidavit of undertaking of mortgagor.

3. Duly audited balanced sheet (certified copy of the original) issued and signed by the
authorized official of the applicant and under the latter’s authority.

a. When individual person involved and no balance sheet can be submitted, income tax
returns for the preceding year duly received by BIR office and tax receipts
evidencing payment.

b. When applicant is a new corporation, partnership, or single proprietorship, i.e., no

financial statement or Income Tax Return has been prepared yet, sworn statement
declaring:

1) Other assets or sources of funds and other resources;

2) The nature of control or ownership over such assets, funds or resources;

3) Commitment to the effect that, if necessary, the same shall be used to

complete the project.

4. Articles of incorporation (or of partnership or association), amendments thereof and

existing by-laws (or its equivalent) clearly indicating the authority of the applicant
to engage in real estate trade particularly in the development and selling of lots or
units. When an applicant deviates from the intended line of business stipulated in
its articles of incorporation (or partnership or association), authorization from the
Securities and Exchange Commission (SEC) and/or the appropriate government
agency to engage in the development and selling of the subject project.

5. A copy of any circular, prospectus, brochure, advertisement, or communication

used/to be used for public offering of subject project and for circulation upon
approval by this Board.
 6. Sample copy of contract to sell to be used in the public offering of lots, units or lots
and units. When amendments shall be effected on the form contract submitted for
notification/approval by HLURB, pro-forma affidavit signifying willingness to
change project name.

7. Certified true copy of Environmental Compliance Certificate (ECC)/Certificate Of

Non-Coverage (CNC), whichever is applicable, duly issued by the Department Of
Environmental And Natural Resources (DENR).

8. Zoning Certification from HLURB Regional Office.

9. Certified true copy of DAR Conversion Order.

(In cases where the property involved is located in an area already classified
as residential, commercial, industrial or other similar development purposes
as provided in CLUPs approved pursuant to EO 72, Series of 1993, a DAR
Conversion Order shall no longer be required as a precondition for issuance
of Certificate of Registration and License to Sell). (Amended per Board Res. No. 748, Series
of 2003)

10. Electrical plan and specifications duly signed and sealed by a licensed professional
electrical engineer and duly approved by the local franchise holder as appropriate.

11. Permit to operate a deepwell and subsequent submission of confirmed water

resistivity test from the National Water Resources Board (NWRB). Water
potability test results from concerned government agencies.

B. Additional Requirements

1. For condominium projects, master deeds with declaration of registration and declaration of
restrictions evidenced by the proper annotations thereof in the title(s) of the property and
the certified true copy of such title(s) from the Register Of Deeds.

2. For subdivision projects:

a. Two copies of Verified Survey Returns with label for all non-saleable areas including
but not limited to parks and playgrounds, community facilities and roads and
easements;

b. Copy of the following documents in case the Development Permit was issued by the
Local Government Unit (LGU) pursuant to the 1991 Local Government Code and
related issuances:

1) Sangguniang Resolution/Ordinance granting of Development

Permit/Subdivision Development Plan containing the following
information:
 a) Full name of the grantee or permittee and his address;

b) Complete project name and its location;

c) Date of the resolution or ordinance;

d) Project area;

e) Full listing of title(s) covering the project;

f) Legal basis of the approval (PD 957, BP 220, EO 648 and other related
laws)

2) Certified true copy of resolution conferring authority to the mayor or other

local government official to issue development permit in cases where the
same was not granted by the Sangguniang Pambayan/Panglunsod.

Evidences of approval by the local government of the

subdivision scheme must be any original copy or one
certified as true copy thereof by the authorized local
government official, indicating clearly his full name and
position and the date of approval. It must contain the same
data as above described. Most important of all, it must bear
an indication of Sanggunian approval such as but not limited
to words like: “approved by authority of the Sanggunian” or
others of similar import, it being understood that the
Sangguniang

Bayan/Panglungsod has properly issued such authority.

3) Proof of compliance to Section 18 of RA 7279 (for BP 220 project whose

selling price is above the maximum selling price of socialized housing
project) in any of the following manner:

a) Development Permit of socialized housing projects within the main

subdivision.

b) License to Sell of socialized housing project offered as compliance if

location of compliance is not within the main subdivision project.

c) Joint venture agreement with LGU or other housing agencies.

d) Certified true copy of bond issued by the LGU where the main project
is located or by any of the housing agencies.

4) Topographic Plan
 c. Project study

d. Copy of brochures and other form of advertisements.

Section 14. Application for License to Sell

The owner or the real estate dealer interested in the sale of lots or units in a subdivision or
condominium project shall apply with the Board for a License To Sell by submitting the following:

1. Program of development (bar chart with S-curve, Gantt chart/PERT-CPM, etc.) signed and sealed
by a licensed engineer or architect indicating work activities, duration and costing.

2. Affidavit of undertaking to perform the following:

a. Segregation of the individual titles for all lots or units within the project;

b. Submission of proof that titles to the saleable lots or units have been issued, which proof
may include a certification from concerned Register of Deeds indicating the lots/blocks or
units or data similar to those required under the requirement for Certificate of Registration
only when required by the Board.

c. Submission of a certified true copy of title of the common areas/open space, which title shall
expressly indicate the kind of common use approved therefor, on or before a definite date
(to be specified by applicant subject to approval by the Board).

3. Duly accomplished and notarized fact sheet

4. Proof showing the required minimum level of development before the issuance of license sell:
(Per Board Res. No. R-830, Series of 2008)

a. For subdivision projects – land clearing and grubbing, road tracing, earthworks, sub-
base and base preparation activities, and entrance gate if included in the brochure,
advertisement or development plan.

b. For condominium projects – civil and structural works of foundation to include

excavation, pile driving, concreting, steel reinforcement and formworks.

Section 15. Notice of Publication (Per Board Res. No. R-764,Series of 2004)

Upon evaluation of the completeness and veracity of the documents submitted, the Board shall
cause the publication at the expense of the applicant, of a notice on application for Certificate of
Registration in one newspaper of general circulation, in

English or in Pilipino, reciting therein that an application for registration statement for the sale of
subdivision lots and condominium units has been filed with the Board; and that the aforesaid
application, as well as documents attached thereto, are open to inspection during business hours
 by interested parties. In addition, a 3’ x 6’ billboard notice of the project shall be posted on the
project site until the issuance of the license to sell.

Failure to publish the notice of filing of registration statement within two (2) weeks from
receipt of notice to publish issued by the Board, the owner/ developer shall be required to re-
file the application for Certificate of Registration.

Section 16. Certificate of Registration (Per Board Res. No. R-764,Series of 2004)

After five (5) days(Per Board Res. No. 812, Series of 2007) from the completion of the publication as
provided for in Section 15 and upon submission of the affidavit of publications, executed by
the publisher, the Board shall, in the absence of an opposition to the Registration of the
project, issue a

Certificate of Registration “upon payment of the prescribed fees.” (Per Board Res. No. 812,
Series of 2007)

Section 17. License to Sell (Per Board Res. No. R-764,Series of 2004)

No owner or developer shall sell any disposable subdivision lot or condominium unit in a
registered property without a license to sell issued by the Board within 2 weeks from registration
of such project. Upon proper application therefore, submission of the required work program,
performance bond and payment of the prescribed license fee by the owner or developer, the Board
shall issue a license to sell the lot or unit in the project or portion thereof covered by the
performance bond, provided that submitted registration statement and other pertinent documentary
requirements can establish that the proposed sale of the subdivision lot or condominium unit to the
public is not fraudulent.

The Performance Bond required may be in any of the following forms or a combination
thereof:

A. A surety bond callable upon demand amounting to 10% of the development cost of the
unfinished portion of the approved plan issued by a duly accredited bonding company
(whether private or government) and acceptable to the Board; or

B. Real estate mortgage to be executed by the applicant as mortgagor in favor of the Republic of
the Philippines as mortgagee, the latter as represented by and acting through the HLURB,
over a property other than that subject of the application, free from any liens and
encumbrance and provided, that the value of the property, computed on the basis of the
zonal valuation schedule of the Bureau of Internal Revenue, shall be at least 10% of the total
development cost; or

C. Other forms of security equivalent to 5% of the development cost of the unfinished portion
of the approved plan which may be in the form of the following:

1. Cash Bond;
 2. Fiduciary deposit made with the cashier and/or disbursing officer of the Board;

3. A certificate of guaranty deposit issued by any bank or financing institution of good

standing in favor of the Board for the total development cost;

4. A letter from any bank of recognized standing certifying that so much has been set
aside from the bank account of the applicant in favor of the Board which amount may
be withdrawn by the Chief Executive Officer of the Board or by his duly authorized
representative, at any time the principal fails or refuses to comply with his duties and
obligations under the bond contract;

5. Any irrevocable credit line to be utilized in the development of the project from any
bank of recognized standing and a refinancing restructuring program indicating
sources of funding from duly accredited funding institutions.

Section 18. Monitoring of Project

The Board shall have the power to monitor projects granted Development Approval and License
to Sell under these Rules to ensure faithful compliance with the terms, standards and conditions
thereof. It may exercise visitorial powers and in case of violation or non-compliance of the terms,
standards and conditions set forth in the approval and the license issued, it may institute revocation
proceedings and impose appropriate fines and penalties.

RULE V
MISCELLANEOUS PROVISIONS

Section 19. Definition of terms

As used in this rules, the following words and phrases are defined and understood to have the
meaning correspondingly indicated therein.

1. Alley – a public way with a width of 2.0 meters intended to break a block and to serve both
pedestrian and for emergency vehicles, both ends connecting to streets. It shall not be used
as access to property.

2. Block - A parcel of land bounded on the sides by streets occupied by or intended for
buildings.

3. Board or HLURB - shall mean the Housing and Land Use Regulatory Board.

4. Cluster Housing - single-family detached dwelling unit containing three or more separate
living units grouped closely together to form relatively compact structures.

5. Community Facilities - facilities or structures intended to serve common needs and for the
benefit of the community, such as neighborhood/multipurpose center, drugstore, school,
livelihood center, and the like.
6. Dwelling - a building designed or used as residence for one or more families.

a. Dwelling Types

Single Detached - a dwelling for 1 family which is completely surrounded

by permanent open spaces, with independent access, services, and use of
land.

Duplex/Single Attached - a dwelling containing 2 or more separate living

units each of which is separated from another by party or lot lines walls and
provided with independent access, services, and use of land. Such dwelling
shall include duplexes, quadruplex or terraces, and cluster housing.

Row house - a single-attached dwelling containing 3 or more separate

living units designed in such a way that they abut each other at the sides, as
in a row, and are separated from each other by party walls; provided with
independent access, and use of land. There shall be a maximum of 20 units
per block or cluster but in no case shall this be beyond 100 meters in length.

Single-family dwelling – shall mean single family per lot.

Multi Family Dwelling – a dwelling on 1 lot containing separate living

units for 3 or more families, usually provided with common access, services
and use of land.

b. Level of Completion

Shell house - a habitable dwelling unit which meets the minimum

requirements for a housing core with the following additional components
being included as part thereof:

1) All exterior walls to enclose the unit

2) Openings for doors and windows

3) Plumbing fixtures

4) Electrical wiring within the unit

5) Floor

Complete House - a habitable dwelling unit which meets the minimum

requirements for a shell house with the following additional components
being included as part thereof: all windows and doors and partition walls
for separating functional areas.
7. Economic Housing - a type of housing project provided to average income families.

8. Fire Resistive Time Period Rating - fire resistive time period is the length of time a
material can withstand being burned which may be 1 hour, 2 hours, 3 hours, 4 hours or
more.

9. Firewall - any wall which separates 2 abutting living units and extends vertically from
the lowest portion of the wall which adjoins the 2 living units up to a minimum height
of 0.30 meter above the highest portion of the roof attached to it; the firewall shall
also extend horizontally up to a minimum distance beyond the outermost edge of the
abutting living units. (Amended per Board Res. No. 824, Series of 2008)

10. Frontage - that part or end of a lot which abuts a street. 11. Living Unit - a dwelling, or
portion thereof, providing complete living facilities for 1 family, including provisions for
living, sleeping, cooking, eating, bathing and toilet facilities and laundry facilities, the same
as a single-family dwelling.

12. Lot - a portion of a subdivision or any parcel of land intended as a unit for transfer of
ownership or for building development.

13. Lot Line Wall - a wall used only by the party upon whose lot the wall is located, erected
at a line separating two parcels of land each of which is a separate real estate entity.

14. Multi Family Dwelling – a dwelling on one lot containing separate living units for 3 or
more families, usually provided with common access, services and use of land.

15. Occupancy – the purpose for which a building is used or intended to be used. The term
shall also include the building or room housing such use. Change of occupancy is not
intended to include change of tenants or proprietors.

16. Open Space - shall refer to areas allocated for the following purposes:

a. Circulation

b. Community facilities

c. Park/playground

d. Easements

e. Courts

17. Party Wall - a wall used jointly by two parties under easement agreement, erected upon a
line separating 2 parcels of land each of which is a separate real estate.
 18. Pathwalk – a public way intended to be used only as pedestrian access to property for
socialized housing projects. It shall have a width of 3.0 meters and a maximum length of
60 meters.

19. Parks/Playgrounds - that portion of the subdivision which is generally not built on and
intended for passive or active recreation.

20. Socialized Housing - refers to housing programs and projects covering houses and lots and
homelots only undertaken by the government or the private sector for the underprivileged
and homeless citizens which shall include sites and services development, long term
financing, liberalized terms on interest payments, and such other benefits in accordance
with the provisions of R.A. 7279 or the urban development and housing act of 1992.

Section 20. Conformance to the Requirements of Other Pertinent Laws, Rules and Regulations

Unless otherwise amended or expressly provided, the provisions of Presidential Decree No. 957
and its Implementing Rules on the following Sections are hereby adopted in these Rules:

1. Application for approval of condominium projects

2. Registration of real estate dealers, brokers and salesmen

3. Submission of Semestral Reports on Operations

4. Display of Certificate of Registration and License to Sell

5. Lost or Destroyed Certificate of Registration or License to Sell

6. Advertisement

7. Time of Completion

8. Transfer of ownership or change of name

9. Alteration of Plans

10. Non-Forfeiture of Payments

11. Registration of Conveyance

12. Mortgages

13. Complaints against owners, developers, dealers, brokers, salesmen

14. Administrative fines

 15. Criminal penalties

16. Take-over Development

17. Fees

18. Identification of lot subject of sale

19. Broker/salesmen as witness to sales

20. Phases of Subdivision

21. Realty Tax and Other Charges

22. Conversion of existing structures

Section 21. Non-Development

Failure on the part of the owner or developer to develop the project in accordance with the
approved project plans and within the time herein specified shall subject the owner/developer to
administrative sanctions and penalties.

Section 22. Organization and Registration of Homeowners

The owner or developer of a socialized and economic housing project shall initiate the organization
of a homeowners association among the buyers and residents of the project for the purpose of
promoting and protecting their mutual interest. Said homeowners association shall register with
the Board and the latter is hereby authorized to accredit and determine the legitimate homeowners
association of the housing project for purposes of applying the pertinent provisions of these Rules.

Section 23. Donation of Roads, Open Spaces and Water Supply

The owner or project developer shall donate the roads and open spaces found in the project to the
local government of the area after their completion had been certified to by the Board and it shall
be mandatory for the said local government to accept such donations. Parks and playgrounds
maybe donated to the duly accredited Homeowners Association of the project with the consent of
the city or municipality concerned under PD 1216.

The water supply system of the project may likewise be donated to the duly accredited
homeowners association after certification by the Board of its completion and of its being
operational. Should the homeowners not accept the donation, the owner or developer of the project
shall collect reasonable rates to be determined by the Board in consultation with the National Water
Resources Board or the Local Water Works and Utilities Administration. The proceeds thereof
shall be used exclusively for the maintenance and operation of the water system by the developer.

Section 24. Separability Clause

 The provisions of these Rules are hereby declared separable, and in the event any of such
provisions are declared null and void, the validity of all other provisions shall not be affected
thereby.

Section 25. Effectivity

These Rules shall take effect thirty days after its publication in a newspaper of general circulation
in the Philippines.

ANNEX 1
SECTION 3.1007 DETACHED SINGLE AND TWO FAMILY DWELLINGS OF THE
RULES AND REGULATIONS
IMPLEMENTING THE FIRE CODE OF THE PHILIPPINES (PD NO. 1185)

A. General – This rule covers detached single and two dwellings. Where the occupancy is so
limited, the only requirements applicable are those in this Section.

B. Exit Details

(1) Number, type and access to exits

a. In any dwelling of more than 2 rooms, every room used for sleeping, living or dining
purposes shall have at least two (2) means of egress, at least one (1) of which shall be a
door or stairway providing a means of unobstructed travel to the outside of the building at
street ground level. No room or a space shall be occupied for living or sleeping purposes
which is accessible only by a ladder, folding stairs or through a trap door.

b. Every sleeping room shall have at least one (1) outside window. Such window could be
opened from the inside, without the use of tools, to provide a clear opening of not less than
fifty six (56) centimeters in least dimension and forty five-hundredths (0.45) square meter
in area. The bottom of the opening shall be not more than one hundred twenty two (122)
centimeters above the floor, except if the room has two (2) doors providing separate ways
of escape or has a door leading directly outside of the building.

c. No required path of travel to the outside from any room shall be through another room or
apartment not under the immediate control of the occupant of the first room or his family,
not through a bathroom or other space subject of locking.

d. No exit access from sleeping rooms to outside shall be less than ninety (90) centimeters
wide.ℒαwρhi৷

e. No interior door providing means of exit shall be less than sixty (60) centimeters wide.

f. Every closet door latch shall be such that children can open the door from inside the closet.
 g. Every bathroom door lock shall be designed to permit the opening of the locked door from
the outside in an emergency.

h. Stairs – the width, risers and treads of every stair shall comply at least with the minimum
requirements for Class B stairs.

C. Interior Finish – interior finish of occupied spaces of new buildings shall be Class A, B or C as
defined in Section 3.504 and existing buildings, the interior finish shall be Class A, B, C or D.

D. Building Service Equipment – no heating equipment such as stove or combustion heater shall
be so located as to block escape in case of fire arising from malfunctioning of the stove or heater.

PRESIDENTIAL DECREE No. 957 July 12, 1976

REGULATING THE SALE OF SUBDIVISION LOTS AND CONDOMINIUMS,

PROVIDING PENALTIES FOR VIOLATIONS THEREOF

WHEREAS, it is the policy of the State to afford its inhabitants the requirements of decent
human settlement and to provide them with ample opportunities for improving their quality of
life;

WHEREAS, numerous reports reveal that many real estate subdivision owners, developers,
operators, and/or sellers have reneged on their representations and obligations to provide and
maintain properly subdivision roads, drainage, sewerage, water systems, lighting systems, and
other similar basic requirements, thus endangering the health and safety of home and lot buyers;

WHEREAS, reports of alarming magnitude also show cases of swindling and fraudulent
manipulations perpetrated by unscrupulous subdivision and condominium sellers and operators,
such as failure to deliver titles to the buyers or titles free from liens and encumbrances, and to
pay real estate taxes, and fraudulent sales of the same subdivision lots to different innocent
purchasers for value;

WHEREAS, these acts not only undermine the land and housing program of the government but
also defeat the objectives of the New Society, particularly the promotion of peace and order and
the enhancement of the economic, social and moral condition of the Filipino people;

WHEREAS, this state of affairs has rendered it imperative that the real estate subdivision and
condominium businesses be closely supervised and regulated, and that penalties be imposed on
fraudulent practices and manipulations committed in connection therewith.

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of

the powers vested in me by the Constitution, do hereby decree and order:

Title I
TITLE AND DEFINITIONS
Section 1. Title. This Decree shall be known as THE SUBDIVISION AND CONDOMINIUM
BUYERS' PROTECTIVE DECREE.

Section 2. Definition of Terms When used in this Decree, the following terms shall, unless the
context otherwise indicates, have the following respective meanings:

(a) Person. "Person" shall mean a natural or a juridical person. A juridical person refers to
a business firm whether a corporation, partnership, cooperative or associations or a single
proprietorship.

(b) Sale or sell. "Sale" or "sell" shall include every disposition, or attempt to dispose, for
a valuable consideration, of a subdivision lot, including the building and other
improvements thereof, if any, in a subdivision project or a condominium unit in a
condominium project. "Sale" and "sell" shall also include a contract to sell, a contract of
purchase and sale, an exchange, an attempt to sell, an option of sale or purchase, a
solicitation of a sale, or an offer to sell, directly or by an agent, or by a circular, letter,
advertisement or otherwise.

A privilege given to a member of a cooperative, corporation, partnership, or any

association and/or the issuance of a certificate or receipt evidencing or giving the right of
participation in, or right to, any land in consideration of payment of the membership fee
or dues, shall be deemed a sale within the meaning of this definition.

(c) Buy and purchase. The "buy" and "purchase" shall include any contract to buy,
purchase, or otherwise acquire for a valuable consideration a subdivision lot, including
the building and other improvements, if any, in a subdivision project or a condominium
unit in a condominium project.

(d) Subdivision project. "Subdivision project" shall mean a tract or a parcel of land
registered under Act No. 496 which is partitioned primarily for residential purposes into
individual lots with or without improvements thereon, and offered to the public for sale,
in cash or in installment terms. It shall include all residential, commercial, industrial and
recreational areas as well as open spaces and other community and public areas in the
project.

(e) Subdivision lot. "Subdivision lot" shall mean any of the lots, whether residential,
commercial, industrial, or recreational, in a subdivision project.

(f) Complex subdivision plan. "Complex subdivision plan" shall mean a subdivision plan
of a registered land wherein a street, passageway or open space is delineated on the plan.

(g) Condominium project. "Condominium project" shall mean the entire parcel of real
property divided or to be divided primarily for residential purposes into condominium
units, including all structures thereon.
 (h) Condominium unit. "Condominium unit" shall mean a part of the condominium
project intended for any type of independent use or ownership, including one or more
rooms or spaces located in one or more floors (or part of parts of floors) in a building or
buildings and such accessories as may be appended thereto.

(i) Owner. "Owner" shall refer to the registered owner of the land subject of a subdivision
or a condominium project.

(j) Developer. "Developer" shall mean the person who develops or improves the
subdivision project or condominium project for and in behalf of the owner thereof.

(k) Dealer. "Dealer" shall mean any person directly engaged as principal in the business
of buying, selling or exchanging real estate whether on a full-time or part-time basis.

(l) Broker. "Broker" shall mean any person who, for commission or other compensation,
undertakes to sell or negotiate the sale of a real estate belonging to another.

(m) Salesman. "Salesman" shall refer to the person regularly employed by a broker to
perform, for and in his behalf, any or all functions of a real estate broker.

(n) Authority. "Authority" shall mean the National Housing Authority.

Title II
REGISTRATION AND LICENSE TO SELL

Section 3. National Housing Authority The National Housing Authority shall have exclusive
jurisdiction to regulate the real estate trade and business in accordance with the provisions of
this Decree.

Section 4. Registration of Projects The registered owner of a parcel of land who wishes to
convert the same into a subdivision project shall submit his subdivision plan to the Authority
which shall act upon and approve the same, upon a finding that the plan complies with the
Subdivision Standards' and Regulations enforceable at the time the plan is submitted. The same
procedure shall be followed in the case of a plan for a condominium project except that, in
addition, said Authority shall act upon and approve the plan with respect to the building or
buildings included in the condominium project in accordance with the National Building Code
(R.A. No. 6541).

The subdivision plan, as so approved, shall then be submitted to the Director of Lands for
approval in accordance with the procedure prescribed in Section 44 of the Land Registration Act
(Act No. 496, as amended by R.A. No. 440): Provided, that it case of complex subdivision plans,
court approval shall no longer be required. The condominium plan as likewise so approved, shall
be submitted to the Register of Deeds of the province or city in which the property lies and the
same shall be acted upon subject to the conditions and in accordance with the procedure
prescribed in Section 4 of the Condominium Act (R.A. No. 4726).
The owner or the real estate dealer interested in the sale of lots or units, respectively, in such
subdivision project or condominium project shall register the project with the Authority by filing
therewith a sworn registration statement containing the following information:

(a) Name of the owner;

(b) The location of the owner's principal business office, and if the owner is a non-
resident Filipino, the name and address of his agent or representative in the Philippines is
authorized to receive notice;

(c) The names and addresses of all the directors and officers of the business firm, if the
owner be a corporation, association, trust, or other entity, and of all the partners, if it be a
partnership;

(d) The general character of the business actually transacted or to be transacted by the
owner; and

(e) A statement of the capitalization of the owner, including the authorized and
outstanding amounts of its capital stock and the proportion thereof which is paid-up.

The following documents shall be attached to the registration statement:

(a) A copy of the subdivision plan or condominium plan as approved in accordance with
the first and second paragraphs of this section.

(b) A copy of any circular, prospectus, brochure, advertisement, letter, or communication

to be used for the public offering of the subdivision lots or condominium units;

(c) In case of a business firm, a balance sheet showing the amount and general character
of its assets and liabilities and a copy of its articles of incorporation or articles of
partnership or association, as the case may be, with all the amendments thereof and
existing by-laws or instruments corresponding thereto.

(d) A title to the property which is free from all liens and encumbrances: Provided,
however, that in case any subdivision lot or condominium unit is mortgaged, it is
sufficient if the instrument of mortgage contains a stipulation that the mortgagee shall
release the mortgage on any subdivision lot or condominium unit as soon as the full
purchase price for the same is paid by the buyer.

The person filing the registration statement shall pay the registration fees prescribed therefor by
the Authority.

Thereupon, the Authority shall immediately cause to be published a notice of the filing of the
registration statement at the expense of the applicant-owner or dealer, in two newspapers general
circulation, one published in English and another in Pilipino, once a week for two consecutive
weeks, reciting that a registration statement for the sale of subdivision lots or condominium units
has been filed in the National Housing Authority; that the aforesaid registration statement, as
well as the papers attached thereto, are open to inspection during business hours by interested
parties, under such regulations as the Authority may impose; and that copies thereof shall be
furnished to any party upon payment of the proper fees.

The subdivision project of the condominium project shall be deemed registered upon completion
of the above publication requirement. The fact of such registration shall be evidenced by a
registration certificate to be issued to the applicant-owner or dealer.

Section 5. License to sell. Such owner or dealer to whom has been issued a registration
certificate shall not, however, be authorized to sell any subdivision lot or condominium unit in
the registered project unless he shall have first obtained a license to sell the project within two
weeks from the registration of such project.

The Authority, upon proper application therefor, shall issue to such owner or dealer of a
registered project a license to sell the project if, after an examination of the registration statement
filed by said owner or dealer and all the pertinent documents attached thereto, he is convinced
that the owner or dealer is of good repute, that his business is financially stable, and that the
proposed sale of the subdivision lots or condominium units to the public would not be fraudulent.

Section 6. Performance Bond. No license to sell subdivision lots or condominium units shall be
issued by the Authority under Section 5 of this Decree unless the owner or dealer shall have filed
an adequate performance bond approved by said Authority to guarantee the construction and
maintenance of the roads, gutters, drainage, sewerage, water system, lighting systems, and full
development of the subdivision project or the condominium project and the compliance by the
owner or dealer with the applicable laws and rules and regulations.

The performance bond shall be executed in favor of the Republic of the Philippines and shall
authorize the Authority to use the proceeds thereof for the purposes of its undertaking in case of
forfeiture as provided in this Decree.

Section 7. Exempt transactions. A license to sell and performance bond shall not be required in
any of the following transactions:

(a) Sale of a subdivision lot resulting from the partition of land among co-owners and co-
heirs.

(b) Sale or transfer of a subdivision lot by the original purchaser thereof and any
subsequent sale of the same lot.

(c) Sale of a subdivision lot or a condominium unit by or for the account of a mortgagee
in the ordinary course of business when necessary to liquidate a bona fide debt.

Section 8. Suspension of license to sell. Upon verified complaint by a buyer of a subdivision lot
or a condominium unit in any interested party, the Authority may, in its discretion, immediately
suspend the owner's or dealer's license to sell pending investigation and hearing of the case as
provided in Section 13 hereof.

The Authority may motu proprio suspend the license to sell if, in its opinion, any information in
the registration statement filed by the owner or dealer is or has become misleading, incorrect,
inadequate or incomplete or the sale or offering for a sale of the subdivision or condominium
project may work or tend to work a fraud upon prospective buyers.

The suspension order may be lifted if, after notice and hearing, the Authority is convinced that
the registration statement is accurate or that any deficiency therein has been corrected or
supplemented or that the sale to the public of the subdivision or condominium project will
neither be fraudulent not result in fraud. It shall also be lifted upon dismissal of the complaint for
lack of legal basis.

Until the final entry of an order of suspension, the suspension of the right to sell the project,
though binding upon all persons notified thereof, shall be deemed confidential unless it shall
appear that the order of suspension has in the meantime been violated.

Section 9. Revocation of registration certificate and license to sell. The Authority may, motu
proprio or upon verified complaint filed by a buyer of a subdivision lot or condominium unit,
revoke the registration of any subdivision project or condominium project and the license to sell
any subdivision lot or condominium unit in said project by issuing an order to this effect, with
his findings in respect thereto, if upon examination into the affairs of the owner or dealer during
a hearing as provided for in Section 14 hereof, if shall appear there is satisfactory evidence that
the said owner or dealer:

(a) Is insolvent; or

(b) has violated any of the provisions of this Decree or any applicable rule or regulation
of the Authority, or any undertaking of his/its performance bond; or

(c) Has been or is engaged or is about to engage in fraudulent transactions; or

(d) Has made any misrepresentation in any prospectus, brochure, circular or other
literature about the subdivision project or condominium project that has been distributed
to prospective buyers; or

(e) Is of bad business repute; or

(f) Does not conduct his business in accordance with law or sound business principles.

Where the owner or dealer is a partnership or corporation or an unincorporated association, it

shall be sufficient cause for cancellation of its registration certificate and its license to sell, if any
member of such partnership or any officer or director of such corporation or association has been
guilty of any act or omission which would be cause for refusing or revoking the registration of an
individual dealer, broker or salesman as provided in Section 11 hereof.
Section 10. Registers of subdivision lots and condominium units. A record of subdivision lots
and condominium units shall be kept in the Authority wherein shall be entered all orders of the
Authority affecting the condition or status thereof. The registers of subdivision lots and
condominium units shall be open to public inspection subject to such reasonable rules as the
Authority may prescribe.

Title III
DEALERS, BROKERS AND SALESMEN

Section 11. Registration of dealers, brokers and salesmen. No real estate dealer, broker or
salesman shall engage in the business of selling subdivision lots or condominium units unless he
has registered himself with the Authority in accordance with the provisions of this section.

If the Authority shall find that the applicant is of good repute and has complied with the
applicable rules of the Authority, including the payment of the prescribed fee, he shall register
such applicant as a dealer, broker or salesman upon filing a bond, or other security in lieu
thereof, in such sum as may be fixed by the Authority conditioned upon his faithful compliance
with the provisions of this Decree: Provided, that the registration of a salesman shall cease upon
the termination of his employment with a dealer or broker.

Every registration under this section shall expire on the thirty-first day of December of each year.
Renewal of registration for the succeeding year shall be granted upon written application therefor
made not less than thirty nor more than sixty days before the first day of the ensuing year and
upon payment of the prescribed fee, without the necessity of filing further statements or
information, unless specifically required by the Authority. All applications filed beyond said
period shall be treated as original applications.

The names and addresses of all persons registered as dealers, brokers, or salesmen shall be
recorded in a Register of Brokers, Dealers and Salesmen kept in the Authority which shall be
open to public inspection.

Section 12. Revocation of registration as dealers, brokers or salesmen. Registration under the
preceding section may be refused or any registration granted thereunder, revoked by the
Authority if, after reasonable notice and hearing, it shall determine that such applicant or
registrant:

1. Has violated any provision of this Decree or any rule or regulation made hereunder; or

2. Has made a material false statement in his application for registration; or

3. Has been guilty of a fraudulent act in connection with any sale of a subdivision lot or
condominium unit; or

4. Has demonstrated his unworthiness to transact the business of dealer, broker, or

salesman, as the case may be.
In case of charges against a salesman, notice thereof shall also be given the broker or dealer
employing such salesman.

Pending hearing of the case, the Authority shall have the power to order the suspension of the
dealer's, broker's, of salesman's registration; provided, that such order shall state the cause for the
suspension.

The suspension or revocation of the registration of a dealer or broker shall carry with it all the
suspension or revocation of the registrations of all his salesmen.

Title IV
PROCEDURE FOR REVOCATION OF REGISTRATION CERTIFICATE

Section 13. Hearing. In the hearing for determining the existence of any ground or grounds for
the suspension and/or revocation of registration certificate and license to sell as provided in
Section 8 and 9 hereof, the following shall be complied with:

(a) Notice. No such hearing shall proceed unless the respondent is furnished with a copy
of the complaint against him or is notified in writing of the purpose of such hearing.

(b) Venue. The hearing may be held before the officer or officers designated by the
Authority on the date and place specified in the notice.

(c) Nature of proceeding. The proceedings shall be non-litigious and summary in nature
without regard to legal technicalities obtaining in courts of law. The Rules of court shall
not apply in said hearing except by analogy or in a suppletory character and whenever
practicable and convenient.

(d) Power incidental to the hearing. For the purpose of the hearing or other proceeding
under this Decree, the officer or officers designated to hear the complaint shall have the
power to administer oaths, subpoena witnesses, conduct ocular inspections, take
depositions, and require the production of any book, paper, correspondence,
memorandum, or other record which are deemed relevant or material to the inquiry.

Section 14. Contempt.

(a) Direct contempt. The officer or officers designated by the Authority to hear the
complaint may summarily adjudge in direct contempt any person guilty of misbehavior in
the presence of or so near the said hearing officials as to obstruct or interrupt the
proceedings before the same or of refusal to be sworn or to answer as a witness or to
subscribe an affidavit or deposition when lawfully required to do so. The person found
guilty of direct contempt under this section shall be punished by a fine not exceeding
Fifty (P50.00) Pesos or imprisonment not exceeding five (5) days, or both.
 (b) Indirect contempt. The officer or officers designated to hear the complaint may also
adjudge any person in indirect contempt on grounds and in the manner prescribed in Rule
71 of the Revised Rules of Court.

Section 15. Decision. The case shall be decided within thirty (30) days from the time the same is
submitted for decision. The Decision may order the revocation of the registration of the
subdivision or condominium project, the suspension, cancellation, or revocation of the license to
sell and/or forfeiture, in whole or in part, of the performance bond mentioned in Section 6
hereof. In case forfeiture of the bond is ordered, the Decision may direct the provincial or city
engineer to undertake or cause the construction of roads and of other requirements for the
subdivision or condominium as stipulated in the bond, chargeable to the amount forfeited. Such
decision shall be immediately executory and shall become final after the lapse of 15 days from
the date of receipt of the Decision.

Section 16. Cease and Desist Order. Whenever it shall appear to the Authority that any person is
engaged or about to engage in any act or practice which constitutes or will constitute a violation
of the provisions of this Decree, or of any rule or regulation thereunder, it may, upon due notice
and hearing as provided in Section 13 hereof, issue a cease and desist order to enjoin such act or
practices.

Section 17. Registration. All contracts to sell, deeds of sale and other similar instruments relative
to the sale or conveyance of the subdivision lots and condominium units, whether or not the
purchase price is paid in full, shall be registered by the seller in the Office of the Register of
Deeds of the province or city where the property is situated.

Whenever a subdivision plan duly approved in accordance with Section 4 hereof, together with
the corresponding owner's duplicate certificate of title, is presented to the Register of Deeds for
registration, the Register of Deeds shall register the same in accordance with the provisions of
the Land Registration Act, as amended: Provided, however, that it there is a street, passageway
or required open space delineated on a complex subdivision plan hereafter approved and as
defined in this Decree, the Register of Deeds shall annotate on the new certificate of title
covering the street, passageway or open space, a memorandum to the effect that except by way
of donation in favor of a city or municipality, no portion of any street, passageway, or open space
so delineated on the plan shall be closed or otherwise disposed of by the registered owner
without the requisite approval as provided under Section 22 of this Decree.

Section 18. Mortgages. No mortgage on any unit or lot shall be made by the owner or developer
without prior written approval of the Authority. Such approval shall not be granted unless it is
shown that the proceeds of the mortgage loan shall be used for the development of the
condominium or subdivision project and effective measures have been provided to ensure such
utilization. The loan value of each lot or unit covered by the mortgage shall be determined and
the buyer thereof, if any, shall be notified before the release of the loan. The buyer may, at his
option, pay his installment for the lot or unit directly to the mortgagee who shall apply the
payments to the corresponding mortgage indebtedness secured by the particular lot or unit being
paid for, with a view to enabling said buyer to obtain title over the lot or unit promptly after full
payment thereto;
Section 19. Advertisements. Advertisements that may be made by the owner or developer
through newspaper, radio, television, leaflets, circulars or any other form about the subdivision
or the condominium or its operations or activities must reflect the real facts and must be
presented in such manner that will not tend to mislead or deceive the public.

The owner or developer shall answerable and liable for the facilities, improvements,
infrastructures or other forms of development represented or promised in brochures,
advertisements and other sales propaganda disseminated by the owner or developer or his agents
and the same shall form part of the sales warranties enforceable against said owner or developer,
jointly and severally. Failure to comply with these warranties shall also be punishable in
accordance with the penalties provided for in this Decree.

Section 20. Time of Completion. Every owner or developer shall construct and provide the
facilities, improvements, infrastructures and other forms of development, including water supply
and lighting facilities, which are offered and indicated in the approved subdivision or
condominium plans, brochures, prospectus, printed matters, letters or in any form of
advertisement, within one year from the date of the issuance of the license for the subdivision or
condominium project or such other period of time as may be fixed by the Authority.

Section 21. Sales Prior to Decree. In cases of subdivision lots or condominium units sold or
disposed of prior to the effectivity of this Decree, it shall be incumbent upon the owner or
developer of the subdivision or condominium project to complete compliance with his or its
obligations as provided in the preceding section within two years from the date of this Decree
unless otherwise extended by the Authority or unless an adequate performance bond is filed in
accordance with Section 6 hereof.

Failure of the owner or developer to comply with the obligations under this and the preceding
provisions shall constitute a violation punishable under Sections 38 and 39 of this Decree.

Section 22. Alteration of Plans. No owner or developer shall change or alter the roads, open
spaces, infrastructures, facilities for public use and/or other form of subdivision development as
contained in the approved subdivision plan and/or represented in its advertisements, without the
permission of the Authority and the written conformity or consent of the duly organized
homeowners association, or in the absence of the latter, by the majority of the lot buyers in the
subdivision.

Section 23. Non-Forfeiture of Payments. No installment payment made by a buyer in a

subdivision or condominium project for the lot or unit he contracted to buy shall be forfeited in
favor of the owner or developer when the buyer, after due notice to the owner or developer,
desists from further payment due to the failure of the owner or developer to develop the
subdivision or condominium project according to the approved plans and within the time limit
for complying with the same. Such buyer may, at his option, be reimbursed the total amount paid
including amortization interests but excluding delinquency interests, with interest thereon at the
legal rate.
Section 24. Failure to pay installments. The rights of the buyer in the event of this failure to pay
the installments due for reasons other than the failure of the owner or developer to develop the
project shall be governed by Republic Act No. 6552.

Where the transaction or contract was entered into prior to the effectivity of Republic Act No.
6552 on August 26, 1972, the defaulting buyer shall be entitled to the corresponding refund
based on the installments paid after the effectivity of the law in the absence of any provision in
the contract to the contrary.

Section 25. Issuance of Title. The owner or developer shall deliver the title of the lot or unit to
the buyer upon full payment of the lot or unit. No fee, except those required for the registration
of the deed of sale in the Registry of Deeds, shall be collected for the issuance of such title. In
the event a mortgage over the lot or unit is outstanding at the time of the issuance of the title to
the buyer, the owner or developer shall redeem the mortgage or the corresponding portion
thereof within six months from such issuance in order that the title over any fully paid lot or unit
may be secured and delivered to the buyer in accordance herewith.

Section 26. Realty Tax. Real estate tax and assessment on a lot or unit shall de paid by the owner
or developer without recourse to the buyer for as long as the title has not passed the buyer;
Provided, however, that if the buyer has actually taken possession of and occupied the lot or unit,
he shall be liable to the owner or developer for such tax and assessment effective the year
following such taking of possession and occupancy.

Section 27. Other Charges. No owner or developer shall levy upon any lot or buyer a fee for an
alleged community benefit. Fees to finance services for common comfort, security and sanitation
may be collected only by a properly organized homeowners association and only with the
consent of a majority of the lot or unit buyers actually residing in the subdivision or
condominium project.

Section 28. Access to Public Offices in the Subdivisions. No owner or developer shall deny any
person free access to any government office or public establishment located within the
subdivision or which may be reached only by passing through the subdivision.

Section 29. Right of Way to Public Road. The owner or developer of a subdivision without
access to any existing public road or street must secure a right of way to a public road or street
and such right of way must be developed and maintained according to the requirement of the
government and authorities concerned.

Section 30. Organization of Homeowners Association. The owner or developer of a subdivision

project or condominium project shall initiate the organization of a homeowners association
among the buyers and residents of the projects for the purpose of promoting and protecting their
mutual interest and assist in their community development.

Section 31. Donations of roads and open spaces to local government. The registered owner or
developer of the subdivision or condominium project, upon completion of the development of
said project may, at his option, convey by way of donation the roads and open spaces found
within the project to the city or municipality wherein the project is located. Upon acceptance of
the donation by the city or municipality concerned, no portion of the area donated shall thereafter
be converted to any other purpose or purposes unless after hearing, the proposed conversion is
approved by the Authority.

Section 32. Phases of Subdivision. For purposes of complying with the provisions of this Decree,
the owner or developer may divide the development and sale of the subdivision into phases, each
phase to cover not less than ten hectares. The requirement imposed by this Decree on the
subdivision as a whole shall be deemed imposed on each phase.

Section 33. Nullity of waivers. Any condition, stipulation, or provision in contract of sale
whereby any person waives compliance with any provision of this Decree or of any rule or
regulation issued thereunder shall be void.

Section 34. Visitorial powers. This Authority, through its duly authorized representative may, at
any time, make an examination into the business affairs, administration, and condition of any
person, corporation, partnership, cooperative, or association engaged in the business of selling
subdivision lots and condominium units. For this purpose, the official authorized so to do shall
have the authority to examine under oath the directors, officers, stockholders or members of any
corporation, partnership, association, cooperative or other persons associated or connected with
the business and to issue subpoena or subpoena duces tecum in relation to any investigation that
may arise therefrom.

The Authority may also authorize the Provincial, City or Municipal Engineer, as the case may
be, to conduct an ocular inspection of the project to determine whether the development of said
project conforms to the standards and specifications prescribed by the government.

The books, papers, letters, and other documents belonging to the person or entities herein
mentioned shall be open to inspection by the Authority or its duly authorized representative.

Section 35. Take-over Development. The Authority, may take over or cause the development and
completion of the subdivision or condominium project at the expenses of the owner or developer,
jointly and severally, in cases where the owner or developer has refused or failed to develop or
complete the development of the project as provided for in this Decree.

The Authority may, after such take-over, demand, collect and receive from the buyers the
installment payments due on the lots, which shall be utilized for the development of the
subdivision.

Section 36. Rules and Regulations. The Authority shall issue the necessary standards, rules and
regulations for the effective implementation of the provisions of this Decree. Such standards,
rules and regulations shall take effect immediately after their publication three times a week for
two consecutive weeks in any newspaper of general circulation.
Section 37. Deputization of law enforcement agencies. The Authority may deputize the
Philippine Constabulary or any law enforcement agency in the execution of its final orders,
rulings or decisions.

Section 38. Administrative Fines. The Authority may prescribe and impose fines not exceeding
ten thousand pesos for violations of the provisions of this Decree or of any rule or regulation
thereunder. Fines shall be payable to the Authority and enforceable through writs of execution in
accordance with the provisions of the Rules of Court.

Section 39. Penalties. Any person who shall violate any of the provisions of this Decree and/or
any rule or regulation that may be issued pursuant to this Decree shall, upon conviction, be
punished by a fine of not more than twenty thousand (P20,000.00) pesos and/or imprisonment of
not more than ten years: Provided, That in the case of corporations, partnership, cooperatives, or
associations, the President, Manager or Administrator or the person who has charge of the
administration of the business shall be criminally responsible for any violation of this Decree
and/or the rules and regulations promulgated pursuant thereto.

Section 40. Liability of controlling persons. Every person who directly or indirectly controls any
person liable under any provision of this Decree or of any rule or regulation issued thereunder
shall be liable jointly and severally with and to the same extent as such controlled person unless
the controlling person acted in good faith and did not directly or indirectly induce the act or acts
constituting the violation or cause of action.

Section 41. Other remedies. The rights and remedies provided in this Decree shall be in addition
to any and all other rights and remedies that may be available under existing laws.

Section 42. Repealing clause. All laws, executive orders, rules and regulations or part thereof
inconsistent with the provisions of this Decree are hereby repealed or modified accordingly.

Section 43. Effectivity. This Decree shall take effect upon its approval.

Done in the City of Manila, this 12th day of July, in the year of Our Lord, nineteen hundred and
seventy-six.
 THE PHILIPPINE HOUSING DEMAND

We have heard since time immemorial of a housing demand backlog in the country, and while past

administrations (from Marcos’ admin to Marcos Jr. admin) have vowed and made it one of their

priorities, the backlog persists. Not that no efforts were made in the past.

During the Marcos-era of the 70s and the 80s, various agencies were created of different mandates

but coherent in the sense that it laid down the policies and infrastructure to accelerate the

production of housing starts to address the supply and demand of homes and home ownership.

On top of mind are the following – The Housing and Land Use Regulatory Board (HLURB) that

was mandated to create the relevant development standards related to housing production,

performs regulatory oversight, and ensures that what is promised to buyers are actually delivered

by developers, and consequently prescribes penalties and fines for failure to do so. HLURB was

also tasked to oversee the operations of homeowners' associations (HOAs) and condominium

corporations (Condo Corp), and provided quasi-judicial roles to address disputes between buyers

and developers, and intra issues within the HOAs and Condo Corp.

There is the Home Development Mutual Fund (or more popularly called Pag-IBIG) that provided

the long-term funding for home buyers thru a provident fund system where employees and workers

contribute, and the contribution is top-off by their employers and the government. The fund raised

then becomes the “pool” by which home buyers are able to finance the acquisition of their house

and lot or condominium units by way of a long-term repayment scheme, by as much as 25 to 30

years.
The Home Guaranty Corporation (HGC) was another entity created by law with the mandate to

provide a system of guarantees to encourage private lending institutions and property developers

to invest their funds to projects related to housing start generation. The guaranty is attached to

loans, whether development loans provided to developers or mortgage loans to homebuyers by

lending institutions. The guaranty is to encourage lending to house production and home buying

(loans with HGC guaranty are considered non-risk asset by the lending bank) and the tax incentive

make the corresponding cost of money lower (or interest) more affordable to home buyers. HGC

has since then been consolidated with the Philippine Guarantee Corporation (or PhilGuarantee).

Another entity with financial intermediary function was the National Home Mortgage Finance

Corporation (or NHMFC) which was organized to develop the secondary market for housing

mortgages held by private and government lending institutions (Private Banks, SSS, GSIS, Pag-

IBIG) which are otherwise locked in long-term tenor debt, i.e., 5, 10, 15 to 25 years. The objective

was to liquify these mortgages through securitization and offering these via the secondary market,

thereby increasing the funding pool available for relending.

The National Housing Authority was into direct production of housing starts geared for the low-

income segment, those that are outside the scope of the formal financial system and therefore

unable to borrow funds to address their housing needs. These are the informal settlers with no

regular source of income and contractual workers who are paid even below the minimum wage

rate (the unserved and under-served market).

And there were the Social Security System (SSS) and the Government Security and Insurance

System (GSIS) that provided their own housing programs to their members, and who also

contributed funds at one time to the National Shelter Program launched by the government in 1986.
So, what happened? Why is the backlog still persisting (and in fact have even increased in the last

10 year).

Over these years, these government institutions initiated various programs and campaigns and

together with the private sector raised the supply and demand for houses and home buyers, but

catching up with the backlog was never achieved. There were good and effective programs

launched that had the potential of making a dent on the backlog, but due to various reasons, some

self-inflicted, others external factors pushed back the outcome of these efforts below their avowed

targets. Self-inflicted reasons include corruption, local politics, lack of budget and even

mismanagement within the government-controlled entities, while the recession of 1983, the power

crisis towards late 1980 to early 1990’s, the Asian financial crisis of 1997 and the 2008 global

financial crisis set back the momentum of the government programs (resulting into high default

incidents among borrowers and soured loans to developers). On the NHA-side, which deals with

the direct production of housing starts for the unserved and under-served segments, there was no

sufficient budget allocated for its use. Over-all, the government has allocated less than 1% of its

annual budget from 1983 to 2019 for direct funding or subsidy to housing. (Habitat for Humanity)

The housing backlog persists. Between the period 2001 to 2018, the shortage was estimated at

close to 6 million units and by then, the demand for homeownership was estimated at Php15

million already to this year (2022). The deficit is mostly evident in the socialized (Php480K-

Php750K), economic (Php750K to Php 1.75 M) and low-cost (Php1.75M to Php3M) segments,

while there appear to be a surplus in the mid-cost (Php3M to Php6M) and high-end segments
(Php6 M and above). This does not even include the un-served and under-served segment (called

the owner driven construction or self-help). The average production between the years 2014 to

2018 was around 230K to 240K and at this rate, it will take 24 years to cover the 2018 estimated

backlog excluding the unserved market. (Habitat for Humanity).

If we are to overcome this challenge, obviously, the production of housing starts should more than

triple and even more. More obviously, the government should focus on encouraging production of

housing starts for the lower segment of the market, namely socialized, economic and low-cost

where the deficit is, and greater budgetary allocation to NHA for the unserved market. Government

incentives, funding and subsidies should be targeted where the deficit is significant. The use of

modern technology is also a critical element so we can accelerate the timeline of construction and

development, and improve quality to ensure safety of residents against the danger of the

environment, while the enactment of the National Land Use Plan will lend a more scientific,

pinpointing of zones appropriate and suitable for housing development.

PHILIPPINE PERSPECTIVE ON HOUSING -CURRENT HOUSING NEEDS, DEMAND

AND SUPPLY

The Philippine housing industry believes that every Filipino family has the right to live with

dignity in the comfort of one’s own home regardless of economic status. It aims to eliminate the

housing backlog by the year 2030.

The Philippine housing sector has enormous potential for growth, as demand for living spaces

continue to increase. Through several industry-led initiatives, the sector hopes to sustain its robust

growth and development – at affordable prices for the Filipino household.

Towards this vision, the industry's objectives are:

1. Increase housing production capacity to sustain 12% annual volume growth

2. Implement a comprehensive government housing subsidy for targeted segments

3. Improve the regulatory environment for housing

4. Generate and mobilize funds for end-user financing

ABOUT HOUSING

The housing backlog is 3.9 million households. Assuming that production of housing units would

average 200,000 units every year from 2012 to 2030, the backlog would still persist and hit 6.5

million households by 2030. The highest demand would come from the economic housing

segment, followed by socialized housing, and lastly by low-cost housing.

The low-cost, socialized, and economic housing units account for a large share of housing

production. From 2010 to 2011, housing production in the high-end, mid-end, and low-cost

categories increased, while production of houses in economic and socialized housing was

relatively flat. From 2000 to 2011, economic, socialized, and low-cost housing cornered close to
70% of total housing production. During this same period, the socialized segment accounted for

27%, the economic segment accounted for 29%, and low cost segment 13%.

As of 2011, there are 3,164 players in the housing industry. Despite the huge number of firms

engaged in housing, only a few firms dominate the industry. Most of these firms are highly

integrated developers that are engaged in various real estate developments besides housing. Many

other firms are into retail real estate, hotels, commercial office buildings, and industrial estate

development.

The Subdivision and Housing Developers’ Association (SHDA) is the largest organization of

housing developers in the Philippines, counting 160 members from its chapters in Luzon, Visayas,

and Mindanao. Other industry participants are members of the Chamber of Real Estate and

Builders’ Associations (CREBA), the Real Estate Brokers Association of the Philippines, Inc.

(REBAP), the Philippine Association of Real Estate Brokers (PAREB), the National Real Estate

Association of the Philippines (NREA), and the the Organization of Socialized Housing

Developers of the Philippines (OSHDP).

FACTS AND FIGURES

Housing demand and supply profile, 2001-2011

Market Segment Housing demand Housing supply Surplus (Deficit)

Socialized Housing 1,143,048 479,765 (663,283)

Economic Housing 2,503,990 541,913 (1,962,077)

Low Cost Housing 704,406 242,246 (462,160)

Mid Cost Housing 72,592 322,995 250,403

High End Housing 18,235 242,246 224,011

Backlog: 3,087,520, excluding 832,046 households that can’t afford

New Housing Need, 2012-2030

Market Segment Price Range Units Needed % of TOTAL Need

Can’t Afford/Needs Subsidy 400K & below 1,449,854 23%

Socialized Housing 400K & below 1,582,497 25%

Economic Housing 400K – 1.25M 2,588,897 42%

Low Cost Housing 1.25M – 3M 605,692 10%

Mid Cost Housing 3M – 6M No need

High End Housing > 6M No need

TOTAL Need 6,226,940

Total New Need Average: 345,941 housing units per year

Estimated Backlog by 2030*

Those who can’t afford 832,046

Backlog, as of 2011 3,087,520

Total Housing Backlog, as of 2011 3,919,566

New Housing Need, 2012-2030 (345,941 units/yr X 18 yrs.) 6,226,540

Housing Production Capacity (200,000 units/yr X 18 yrs.) 3,600,000

Backlog by 2030 6,546,106

*If no special housing program is created.

 REFERENCES

• https://www.scribd.com/document/422368342/1#

• https://www.researchgate.net/publication/24110838_The_Dynamics_of_Housing_Demand_in_

th e_Philippines_Income_and_Lifecycle_Effects