URBAN DEVELOPMENT AND HOUSING PROGRAM (III)

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By Roberto A. Capili

Real Estate Updates

Monday, December 16, 2013


UDHA SOCIALIZED HOUSING

To be eligible as beneficiary in the government’s housing program, the applicant must be: a) a Filipino citizen; b) an underprivileged and homeless citizen; c) must not own any real property whether in urban or rural areas and d) must not be a professional squatter or member of squatting syndicate.

Developers of proposed subdivision project shall be required to develop an area for Socialized Housing equivalent to at least 20% of the total subdivision area or total subdivision project cost, at the option of the developer, within the same city or municipality, whenever feasible. It may also be complied with in any of the following manner: a) development of new settlement; b) slum upgrading or renewal of Areas for Priority Development (APD); c) joint venture with either the LGU’s or any of the housing agencies and d) participation in the Community Mortgage Program (CMP).

To encourage greater participation in Socialized Housing and further reduce the cost of housing units for the benefit of the underprivileged and homeless, the following incentives are extended to the private sector:

1. Reduction and simplification of qualification and accreditation requirements for participating private developers;
2. Creation of “One-Stop Offices” in the different regions of the country for the processing, approval and issuance of clearances, permits and licenses. The task force is headed by the HLURB and its regional offices in the country;
3. Simplification of financing procedures; and
4. Exemption from the payment of the following (as tax incentives): a) Project-related income taxes; b) capital gains tax on raw lands used for the project; c) value-added tax for the project contractor concerned; d) transfer tax for both raw and completed projects; and e) donor’s tax for lands certified by the LGU to have been donated for socialized housing program.

Property owners who voluntarily provide resettlement sites to illegal occupants of their lands shall be entitled to a tax credit equivalent to the actual non-recoverable expenses incurred in the resettlement, subject to the implementing guidelines jointly issued by the HUDCC and DOF.

It must be understood that while this is a socialized housing program, developers are still required to provide the following basic services and facilities: potable water; power and electricity and an adequate water distribution system; sewerage facilities and an efficient and adequate solid waste disposal system; and access to primary roads and transportation facilities.

The provision of other basic services and facilities such as health, education, communication, security, recreation, relief and welfare shall be planned and shall be given priority for implementation by the LGU and concerned government agencies in cooperation with the private sector and the beneficiaries themselves.

To the extent possible, socialized housing and resettlement projects shall be located near areas where employment opportunities are accessible. The government agencies dealing with the development of livelihood programs and grant of livelihood loans shall give priority to the beneficiaries of the Program.

No lands for Socialized Housing, including improvements or rights, shall be sold, alienated, conveyed, encumbered or leased by a beneficiary except to qualified program beneficiaries as determined by the government agency concerned. Should the beneficiary unlawfully sell, transfer or otherwise dispose of his lot or any right thereon, the transaction shall be declared null and void.

He shall also lose his right to the land, forfeit the total amortization paid and shall be barred from the benefits under UDHA for a period of ten (10) years from the date of violation. However, the said restrictions on the disposition of lots and housing units for socialized housing shall not apply to those lots and housing units awarded by NHA and other entities before the effectivity of UDHA (R. A. No. 7279).

PROGRAM IMPLEMENTATION

LGU’s shall be charged with the implementation of this Act in their respective localities, in coordination with the HUDCC, NHA, PCUP (Presidential Commission on Urban Poor), the private sector and other non-government organizations (NGO’s).

HUDCC is charged with: formulation of standards and guidelines as well as technical support in the preparation of town and land use plans; in coordination with NEDA and NSO, provide data and information for forward planning by LGU’s and assistance in obtaining funds and other resources needed in the urban development and housing program in their areas of responsibility.

NHA shall provide technical and other forms of assistance in the implementation of the LGU’s respective urban development and housing programs; NHMFC shall administer the CMP and promulgate rules and regulations necessary to carry out the provisions of UDHA and HGC shall design appropriate guarantee scheme to encourage financial institutions to go into direct lending for housing.

PENAL PROVISIONS

Any person who violates the law shall be imposed the penalty of not more than six (6) years of imprisonment or a fine of not less than P 5,000.00 but not more than P 100,000.00, or both fine and imprisonment, at the discretion of the court. If the offender is a corporation, partnership, association or other juridical entity, the penalty shall be imposed on the accountable officers of said juridical entity who caused the violation.
UDHA is a people-centered program intended to benefit the underprivileged and homeless Filipino citizens, let us all work together to insure the success of the program and help our nation move forward.

(For questions, inquiries, comments and updates, email me at bert_capili@yahoo.com)

Published in the Sun.Star Baguio newspaper on December 16, 2013.

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