SUBDIVISION DEVELOPMENT

HUDCC - [ HOUSING AND URBAN DEVELOPMENT COORDINATING COUNCIL ]

The Housing and Urban Development Coordinating Council (HUDCC) was created by then President
Corazon C. Aquino by virtue of Executive Order No. 90 dated 17 December 1986. The EO, which also
abolished the Ministry of Human Settlements, placed HUDCC under the direct supervision of the Office of
the President to serve as the highest policy making body for housing and coordinate the activities of the
government housing agencies to ensure the accomplishment of the National Shelter Program.

ATTACHED AGENCIES

1. HGC - THE HOME GUARANTY CORPORATION

The Home Guaranty Corporation (HGC) is the government-owned-and-controlled-corporation (GOCC)

mandated by law (Republic Act 8763) to promote sustainable home ownership by providing risk coverage
or Guarantees and tax/fiscal incentives to banks and financial institutions/investors granting housing
development loans / credits, and home financing.

2. HLURB [ Housing Land Use and Regulatory Board ]

The Housing and Land Use Regulatory Board (HLURB) is a national government agency tasked as the
planning, regulatory and quasi-judicial body for land use development and real estate and housing
regulation. These roles are done via a triad of strategies namely, policy development, planning and
regulation.

3. National Housing Authority

A National government agency tasked to provide responsive housing programs primarily to homeless low-
income families with access to social services and economic opportunities with excellence while ensuring
corporate viability.

4. National Home Mortgage Finance Corporation

The NHMFC is the major government home mortgage institution. It's initial main function is to operate a
viable secondary home mortgage market

5. PAG-IBIG

The birth of the Home Development Mutual Fund (HDMF), more popularly known as the Pag-IBIG Fund,
was an answer to the need for a national savings program and an affordable shelter financing for the
Filipino worker. The Fund was established on 11 June 1978 by virtue of Presidential Decree No. 1530
primarily to address these two basic yet equally important needs. Under the said law, there were two
agencies that administered the Fund. The Social Security System handled the funds of private employees,
while the Government Service Insurance System handled the savings of government workers.
  To provide and maintain adequate housing for the greatest possible number of people.
 To undertake housing development, resettlement or other activities that would enhance the
provision of housing to very Filipino.
 To harness and promote private participation in housing ventures in terms of capital expenditures,
land, expertise, financing and other facilities for the sustained growth of the housing industry.

6. Social Housing Finance Corporation

The lead financial institution that develops and implements social housing programs of the country.
 To uplift housing conditions of marginalized Filipinos by providing access to affordable shelter
financing.

 To continuously administer, promote and enhance the Community Mortgage Program and the
Abot-Kaya Pabahay Fund Program.

_______________________________________________________________________

HOUSING AND LAND USE REGULATORY BOARD<HLURB>

A. LAWS

1. Executive Order No. 648 (1981) The HLRB was reorganized and revitalized
and was vested with quasi-judicial powers to make it a more
effective regulatory agency. By virtue of said order, it
assumed the functions of the National Housing Authority on
real estate management and was mandated to enforce P.D.
957, P.D. 1216 and P.D. 1517 among others.

2. Executive Order No. 90 (1986) The HLURB was designated as the sole
regulatory body for housing and land development. It was
mandated to encourage greater private sector participation in
low cost housing through liberalization of development
standards, simplification of regulations and decentralization of
permits and licenses. It was identified together with National
Housing Authority (NHA), National Home Mortgage and
Finance Corp. (NHMFC) and Home Guaranty Corporation
(HGC), as a key shelter agency under the housing activities of
the government to ensure the accomplishment of National
Shelter Program.

3. Presidential Decree 957 (PD 957, 1976)

 Otherwise known as the Subdivision and Condominium Buyers Protective Decree. Its features
are
- regulates sale of subdivision lots and condominium units to buyers
- defines sale to be covered by registration
- defines duties and responsibilities of owner/developer (o/d) of condominium and
subdivision projects.
- defines rights of condominium/subdivision units/lot buyers.

4. Batas Pambansa 220 (BP 220, S. 1982)

Authorizes HLURB to promulgate different levels of standards and technical requirements for
economic and socialized housing projects from those provided for under PD 957, PD 1216, PD
1096 and PD 1185.

5. Republic Act 7279 (1992)

Provides for Balanced Socialized Housing Program through provision of low cost housing program
(SHP) intended to benefit the underprivileged and homeless and to be sold at the lowest interest
rate.
Requires developers of residential subdivision projects to allocate 20% of the projects area/cost into
socialized housing.

6. Republic Act No. 8763 or The Home Guaranty Act

Transferred to HLURB all the powers, authorities and responsibilities with respect to supervision of
homeowners associations

7. Presidential Decree No. 1216 (1977)

Defines open spaces in residential subdivision and amended Sect. 31 of PD 957. Requires
subdivision owners to provide adequate roads, alleys, sidewalks and reserved open spaces for parks
or recreational use equivalent to 30% of the total area of the subdivision project; and are non-
saleable/non-alienable public lands.

8. Republic Act 6652 "Maceda Law" (1972)

Provides protection to buyers of residential units on installments against scrupulous

sellers/contracts (including residential condominium apartments, but excluding industrial lots,
commercial buildings and sales to tenants).

9. Presidential Decree No. 1517 (1978)

Provides for protection of legitimate tenants and requires clearance for development proposals and
land transactions in proclaimed Areas for Priority Development (APDs) and Urban Land Reform
Zones (ULRZs). Its important features is under Section 6, defines legitimate tenants as follows: a)
Ten years residency or more; b) They were the ones who built their homes; c) Legally occupied the
 lands by virtue of contract with landowners continuously for ten years; d) Used the lands for
residential purpose only.

10. Republic Act 7160 or the Local Government Code of 1991:

Devolves the following function of HLURB to the local government units:

- Issuance of approval of subdivision plans to local government units (LGUs) subject to
national laws and standards;
- Devolves to the Sangguniang Panlalawigan, subject to national guidelines and standards the
approval of comprehensive land use plans of municipalities.

11. Executive Order No. 71 (1993)

Provides for implementing guidelines and role of HLURB in the devolution of approval of
subdivision plans to the LGUs.

12. Executive Order No. 72 (1993)

a) Provides that HLURB shall review and approve land use plans of provinces, highly urbanized
cities, and all of the independent component cities/municipalities within Metro Manila; b) Devolves
the issuance of locational clearance to LGUs.

13. Republic Act 7899 (1995)

Amends Sections 4 and 16 of RA 4726 or the "Condominium Act," where HLURB is given the
following authorities: a) Approval of any amendment to or revocation of the enabling or master
deed of a condominium project subject to consent by a simple majority of all registered owners, and
where prior notification to all registered owners is done. b) Approval of the expansion of a
condominium corporation or integration of a condominium project with another project upon the
affirmative vote of a simple majority of registered owners.

14. Republic Act 6657 or the Comprehensive Agrarian Reform Law (June 15, 1988)

Implements a comprehensive agrarian reform with the intention that any conversion of a private
agricultural land to non-agricultural uses should first be cleared before hand by the Department of
Agrarian Reform. (Please see attached notes on this RA 6657 or CARP).

15. Presidential Decree No. 1586 (1979)

Requires all person, partnership or corporation to secure an Environment Compliance Certificate

prior to undertaking any activity.

16. Proclamation No. 2146 (1981)

Proclaimed certain areas and types of projects as environmentally critical and within the scope of
the requirements of PD 1586.
DEFINITION OF TERMS

1. SALE: As defined under Section 1(b) of PD 957:

Sale or Sell. "Sale" of "Sell" shall include ever disposition, or attempt to dispose for a valuable
consideration of a subdivision lot including the building and other improvements thereon, if any, in
a condominium project. "Sell" or "Sale" 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, letter,
advertisement or otherwise.

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

the issuance of certificate or receipt evidencing of 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.

2. SOCIALIZED HOUSING PROJECT As defined pursuant to Section 18 of RA 7279:

Refers to housing programs and projects covering houses and lots or 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, liberalization terms on interest
payments, and such other benefits in accordance with RA 7279.

In addition to the definition in RA 7279, it shall refer to projects intended for the under-privileged
and homeless wherein the housing package-selling price is within the lowest interest rate under the
Unified Home Lending Program or any equivalent housing program of the government, the private
sector or non-government organizations.

[ As per HUDCC Resolution No. 1, Series of 2008, the socialized housing loan ceiling has been
increased from P300,000 to P400,000 effective December 2008 ]

3. BULK BUYING

Refers to the purchase by a person, natural of juridical, of more than one saleable lot or unit within
an HLRB approved subdivision for the purpose of re-selling the same with or without introducing
alteration in the approved plan. (Please refer to notes on exempt transaction).

4. CERTIFICATE OF REGISTRATION (CR)

An issuance of HLURB that is proper only upon compliance with Section 4 of PD 957 and other
similar provisions of the various rules. It vests legal status in a project such that its name may be
changed only upon proper application and publication among other requirements.
5. LICENSE TO SELL (LS)

A document granting authority to any registered owner/developer to sell lots or units within an
approved subdivision or condominium project and providing for the duties and responsibilities of
said owner/developer.

6. TOWN PLAN

a) It is an official public document adopted by a local government unit as guide to decision

regarding the physical and socio-economic development of their community. b) It provides for the
directions on how the local leaders and their population would want their community to develop
within a given framework of time. c) It sets the goals, objectives and policy guidelines of the local
government unit after defining the strengths and weaknesses, identifying its opportunities and
threats in relation to its environs. In the Philippines, a town plan is synonymous to comprehensive
development plan, city plan, physical framework plan, comprehensive land use plan, or municipal
development plan.

7. LAND USE PLAN

It is the rational and deliberate allocation of land resources to different uses based on the
comprehensive and integrated plan for the area. It translates the socio-economic, the infrastructure
and environmental plan into land allocations.

8. ZONING

It is the division of the community into functional zones based on the present and potential uses of
properties for the purpose of regulating the use and growth of properties in accordance with the
comprehensive development plan of the town/city.

9. ZONING ORDINANCE

It is the locally enacted legislation which embodies among other a) regulations affecting uses
allowed or disallowed in each zone or district; b) conditions for allowing them; c) procedures for
processing a request for a clearance and d) penalties for violating any of its provisions.

10. LOCATIONAL CLEARANCE

It is a written authorization or permit to develop or use or construct in certain areas of any parcel of
land based on an approved land use plan or zoning ordinance; in the absence of a zoning ordinance
the grant of permit shall be based on HLRB planning standards and guidelines.

11. ECOLOGY

A branch of science concerned with the interrelationships of organisms and their environment.
12. ENVIRONMENT

Includes the physical factors of the total surroundings of human being including the land, water,
atmosphere, climate, sound, odor, tastes, the biological factors of animals and plants and the social
factors of aesthetics. In a broad sense, it shall include the total environment of man such as
economics, social, cultural, political and historic factors.

13. CONVERSION

The act of authorizing the change of the current use of a piece of agricultural land into non-
agricultural use; such permit is proper only upon issuance of a clearance from the Department of
Agrarian Reform.

14. AGRICULTURAL LAND

Refers to land devoted to or suitable to agriculture as defined in RA 6657 and owned by natural or
judicial person/s, or by the government in its proprietary capacity.

15. PRIVATE AGRICULTURAL LAND

Lands devoted to or suitable to agriculture as defined in R.A. 6657 and owned by natural or
juridical persons, or by the government in its proprietary capacity. (For Nos. 13, 14 & 15 please
refer to attached notes on RA 6657 or CARP).

16. DEALER

Shall mean any person directly engaged as principal in the business of selling; or exchanging real
estate whether on full-time or part-time basis (Section 2 (k), PD 957. A bulk buyer, which is for
purposes of this guidelines, is covered in the definition of a dealer, shall mean any person who
acquires a lot or a portion of the subdivision and who, with or without re-subdividing or introducing
housing or other facilities, sells the same, under its previous license to sell or in a license to sell in
his name to the public.

17. SUBDIVISION PROJECT

As defined under Section 2(d) of PD 957, 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 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.

18. “HABITUALLY ENGAGED IN REAL ESTATE BUSINESS” IN ACCORDANCE WITH

REVENUE REGULATIONS NO. 2-98

A person or entity habitually engaged in real estate business is one who, as owner or developer
undertakes development and construction of subdivision / housing for sale to the general public as
 his / its regular source of income; and has submitted and updated his / its reportorial requirements to
HLURB in accordance with the government standards, rules and regulations.

C. ENVIRONMENTALLY CRITICAL AREA (ECA):Refer to areas that are ecologically, socially, or

geologically sensitive as declared by law such as:

1. Areas declared by law as national parks, watershed reserves, wildlife preserves and sanctuaries;

2. Areas identified as potential tourist spots;

3. Areas that are habitats of endangered or threatened species of indigenous Philippine plants and
animals;
4. Areas of unique historic, archeological or scientific interest;

5. Areas traditionally occupied by indigenous people or cultural communities;

6. Areas frequently hit by natural calamities (geologic hazards, floods, typhoons and; volcanic
activities);

7. Areas with critical slopes of 18% and above;

8. Areas classified as prime agricultural lands;

9. Recharged areas of aquifer;

10. Water bodies used for domestic supply used to support fisheries and wildlife;

11. Mangrove areas with critical ecological functions or on which people depend for livelihood; or

12. Coral reefs

D. ENVIRONMENTALLY CRITICAL PROJECTS (ECP) refers to a:

1. Heavily industry involving ferrous metal, iron or steel mills; petroleum or petro-chemical, oil gas,
or smelting plants;

2. Resource extractive project such as major mining and quarrying project, forestry logging project,
major wood processing, introduction of fauna of exotic animals in public or private forests, forest
occupancy, extraction of mangrove products, grazing, fishery dikes, or fishpond development;

3. Major infrastructure project such as dam, power plant (utilizing fossil-fuel, hydroelectric,
geothermal, nuclear power), reclamation, bridge, or a major road; or

4. Golf course project.

E. DIFFERENT TYPES OF PROJECTS REQUIRING
CERTIFICATE OF REGISTRATION and LICENSE TO SELL from HLURB

1. Condominium

1.1 Residential
1.2 Commercial
1.3 Mixed Residential – Commercial

2 Residential

Categories:

PD 957 BP 220
Open market only Economic Socialized
No price ceiling sells @ P/500,000.00/ P/150,000 or
house & lot 180,000
30% open space is Open space requirements is computed based on the
mandatory per PD 1216 density of the project and not covered by 30% open
space requirement
1. Follows the National Relaxes the provisions of NBC and FC but design
Building Code (NBC) and the should conform with the minimum design standards
Fire Code (FC) and; 2. Follows by HLURB in pursuance to the adoption of BP 220;
the minimum design standards this serves as an incentive to developers to engage in
set forth by HLURB housing for the middle income group and the low
income group

3. Farm lots Subdivision

4. Commercial Subdivision

5. Industrial Subdivision

6. Industrial Estate

7. Memorial Parks and Cemeteries

F. BASIC REQUIREMENTS IN PROCESSING REQUEST FOR CERTIFICATE OF

REGISTRATION AND LICENSE TO SELL

1. For residential projects

1.1 Clearance from DAR, if applicable; conformity with the Zoning to the area
1.2 Development plan approved by the Local Government Unit
 1.3 Environmental Compliance Certificate
1.4 Verified survey returns from the LMS-DENR
1.5 Right over land, free from liens and encumbrances
1.6 Program of development
1.7 Organizational and financial capability to complete the project
1.8 Copy of contract to sell and ads materials to be used in the sale
1.9 Compliance to Sec. 18, of RA 7279 or the Socialized Housing Project

2. For commercial, farm lots, memorial parks and industrial estates

Numbers 1.1 to 1.8 above

3. Condominium Projects

3.1 Plans to be approved by HLURB

3.2 Master Deed with Declaration of Restrictions
3.3 Building Permit
3.4 Number 1.1 up to 1.8 above

In cases where the project is not yet started or fully developed, the remaining development shall be
covered by a performance bond. All of these projects can only be registered after the required
publications and upon findings that the sale will not be fraudulent, the owner / developer is not ill
refute and that they are organizationally and financially capable to compete the project.

C. G. EXEMPTED TRANSACTIONS from securing CR / LS

1. Section 7, P.D. 957

a) Sale of a subdivision lot resulting from partition of land among co-owners and heirs;
b) Sale or transfer of subdivision lot by the original purchase thereof and any subsequent sale of
the same lot;
c) Sale of subdivision lot or a condominium unit for the account of a mortgages in the ordinary
course of business when necessary to liquidate a bonafide debt.

2. Per Resolution No. R-546 s. 1994: Rules on Bulk Buying as an Exempt Transaction

a) Bulk Buying as exempt transaction:

Bulk-buying of lots and subsequent introduction of housing unit without altering the original
plan.

b) Bulk Buying as not Exempted from securing CR / LS:

Bulk Buying with construction of housing units resulting in increased density from the original
plan approval. Bulk Buying resulting in the re-subdivision of lots and issuance of new TCTs.

3. On site Community Mortgage Projects

 4. NHA controlled projects

5. On-site housing projects of non-governmental and non-profit organizations and foundations

engaged in community development for underprivileged and the homeless sector from the licensing
requirements of the HLURB.

MODE OF COMPLIANCE WITH SECTION 18 OF R.A. 7279

The developer may choose any of the following as compliance:

1. Development of a New Settlement

2. Slum Upgrading. To be certified by the National Housing Authority or the Local Government Unit
concerned.

3. Participation in the Community Mortgage Program (CMP) either as a financier or a developer

4. Joint Venture Project with the Local Government Unit concerned consisting of:

Joint-Venture Projects. The developer may enter into a joint project or agreement with the
concerned local government unit, with another private developer or any of the housing agencies, to
develop a socialized housing project. His participation shall be equivalent to 20% of project area or
20% of the cost of the main subdivision project. The developer shall be required to submit to the
HLRB a copy of the Joint-Venture Contract as proof of participation in a Joint-Venture Project.
THE JOINT VENTURE AGREEMENT SHOULD CONTAIN THE FOLLOWING: THE
CONTRIBUTION OF A SPECIFIED SUM TO A COMMON FUND AND THE SHARING OF
PROFITS. (As amended by HLURB Board Resolution No. 806, Series of 2007)

5. Purchase of socialized housing bonds from PAG-IBIG.

DUTIES AND RESPONSIBILITIES OF OWNERS/DEVELOPERS OF SUBDIVISION

AND CONDOMINIUM PROJECTS UNDER PD 957
(Please refer to the particular sections of PD 957 as follows:)

1. Mortgage: Section 18

2. Advertisements: Section 19

3. Time of Completion: Section 20

4. Alteration of Plan: Section 22

5. Non-Forfeiture of Payments: Section 23

6. Issuance of Title: Section 25

 7. Donations of Open Spaces: Section 31, as amended by PD 1216

8. Organization of Homeowners Association: Section 30

9. Realty Taxes Payment: Section 26

10. Other Charges: Section 27

REVISED RULES AND REGULATIONS TO GOVERNADVERTISEMENT APPROVAL

[ HLURB Board Resolution No. 808, Series of 2007 ]

1. Scope of Application. These Rules and Regulations shall apply to all applications for
Advertisement Approval for the following projects issued Certificate Of Registration and License
To Sell, hereinafter referred to collectively as Project:

a. Residential/commercial condominium and subdivision

b. Farmlot subdivision
c. Industrial subdivision
d. Memorial park
e. Columbarium project
f. Any other similar project

Advertisement as referred to in this Rules shall mean any form of information dissemination,
whether through words, illustrations, scaled models for public display or in any form of multi-
media. [ Section 1 ]

2. Advertisement Approval. approval of the advertisement is required prior to its distribution,

display and/or publication/broadcast. [ Section 2 ]

4. Contents Of Advertisement. The following shall be indicated/reflected in the advertisement:

a. The exact location of the project in terms of distance from a well known
b. reference point;
c. The License to Sell Number and date issued;
d. Project completion date per approved work program
e. Maximum selling price in case of economic and socialized housing projects;
f. The name(s) of the owner(s)/developer(s) of the project;
g. Pictures or illustrations if any shall be captioned as “actual photographs”, ”architect’s
perspective” or “artist’s illustrations”, as the case may be. [ Section 5 ]

4. What Should Not Be Included In The Advertisement. The following shall not be included in
the advertisement: [ Section 6 ]

1. Disclaimer(s)
2. Any future development not covered by the license to sell
3. Exaggerations or misleading information
 5. Advertisement Approval. The Board shall issue the Advertisement Approval when all the
requirements of sections 4 to 6 are complied with. The approval shall consist of a letter from the
HLURB Regional Officer stating approval of the advertisement material and authority to publish,
display, distribute or announce the same, and further stating therein all other conditions as maybe
imposed. The letter of approval and the approved copy of advertisement material shall in all
instances bear the HLURB seal. Further, the latter shall be stamped “approved” indicating date and
duly signed by the regional officer. Any deviation from the approved contents of the advertisement
material shall be a violation of the conditions of the approval and a ground for revocation of the
approval [ Section 7 ]

6. Warranties. The owner or developer shall be 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 PD 957. [ Section 8 ]
____________________________________________________________________

Rules and Regulations on the Conversion of Agricultural Lands to Non-Agricultural Uses

(DAR Administrative Order 01, SERIES OF 2002)

Legal Bases

1. R.A. 6657: Comprehensive Agrarian Reform Law of 1987

2. R.A. 8435: The Agricultural and Modern Fisheries Modernization

Governing Policies

1. Preservation of agricultural lands to ensure food security.

2. Provide all economic sectors and all regions optimum opportunity to maximize agricultural
productivity.
3. Conversion shall be strictly regulated and allowed only according to R.A. 6657 and R.A. 8435.

Coverage: Agricultural lands to be converted to:

1. Agricultural lands to be converted to non-agricultural uses

2. Agricultural lands to be converted to another type of agricultural activities sucj as livestock, poultry
and fishpond, the effect of which is to exempt the land from Comprehensive Agrarian reform
Program (CARP).

3. Agricultural lands to be converted to non-agricultural use other than previously

 4. Agricultural lands reclassified to non-agricultural uses by the LGU after June 15, 1988.

Who May Apply

1. Owners of private agricultural lands or other persons duly authorized by the landowners.

2. Beneficiaries of the agrarian reform program alter the lapse of 5 years from award reckoned from
date of issuance of the Certificate of Land Ownership Award (CLOA) with fully paid obligation
and qualified to apply

3. Government agencies, including government owned or controlled corporations, LGUs owners of

agricultural lands as patrimonial property

Priority Development Areas for Conversion

1. In accordance with R.A. 7916, EO-124 of 1993 and EO-258 of 2000:

1.1 Specific areas in Regional-Agri-Industrial Centers/Regional Industrial Centers (RAIC/RIC)

identified by Department of Trade and Industry and Department of Agriculture pursuant to
EO-124 of 1993.
1.2 Tourism development areas identified by the Department of Tourism pursuant to EO-124 of
1993.
1.3 Agricultural areas intended for Eco Zone Projects, endorsed by Philippine Economic Zone
Authority (PEZA) pursuant to R.A. 7916
1.4 Agricultural land, owned by the government, to be converted for projects of national interest,
as certified by proper government agency.
1.5 Agricultural land proposed to be developed as sites for processing plants of agricultural
products, as certified by the Department of Agriculture.
1.6 Sites identified for telecommunication facilities endorsed by the National
Telecommunications Commission.
2. Housing projects. In case of mixed use of housing projects and non-housing projects, the
application shall not enjoy the privileges of housing projects unless at least 80% of the land applied
for conversation shall be used directly and exclusively for housing.

Land within SAFDZ: or areas identified for production, agro-processing and marketing activities to
help develop and modernize, with support of the government, the agriculture and fisheries sectors in
an environmentally and socio-culturally sound manner.

1. All irrigated lands, irrigable land already covered by irrigation projects with firm funding
commitments, and lands with existing or having the potential for growing high-value crops included
within the SAFDZ shall be subject to a conversion moratorium for a period of five (5) years from
10 February 1998 to 9 February 2003.

2. During the effectivity of the moratorium, conversion may be allowed with respect to only five
percent (5%) of said lands within SAFDZ upon compliance with existing laws, rules and
regulations.
 3. The maximum of five percent (5%) of land(s) eligible for conversion to non-agricultural use from
the total SAFDZ area shall be jointly determined by the DA and the DAR, upon the
recommendation of the Regional and National SAFDZ Committees pursuant to Rule 9.5.2 of DA-
AO-6-1998, or the implementing rules and regulations of R.A. 8435.

4. After the expiration of the conversion moratorium, conversion may be allowed on a case-to-case
basis, subject to existing laws, rules and regulations on land use conversion.

Areas Non-Negotiable for Conversion

1. Lands within protected areas designated under the NIPAS (National Integrated Protection System),
including mossy and virgin forest, riverbanks, swamp forest or marshlands.

2. All irrigated lands, as delineated by DA and/or NIA, where water is available to support rice and
corn production (Department of Agriculture/National Irrigation Authority).
All irrigated land where water is not available for rice and corn production but are within areas
programmed for irrigation facility by DA and/or NIA.

3. All irrigable lands already covered by irrigation projects with firm finding commitment as
delineated by DA and/or NIA.

4. All agricultural lands with irrigation facilities.

All applications for conversion involving areas non-negotiable for conversion shall not be given due
course, even when portions thereof are eligible for conversion.

Areas Highly Restricted for Conversion

1. Irrigable lands not covered by irrigation project with firm funding commitment.

2. Agro-industrial croplands, or lands presently planted to industrial crops that support the economic
viability of existing agricultural infrastructure and agro-based enterprises.

3. Highlands or areas located in elevations of 500 meters or above have the potentials for growing
semi-temperate and usually high value crops.
4. Land used with notice of land valuation and acquisition or subject of a perfected agreement between
the landowner and the beneficiaries under the voluntary land transfer / direct payment scheme under
the CARP.

5. Environmentally critical areas as determined by the DENR in accordance with law.

Conversion to Home lot

Conversion to home lot is allowable when: the applicant owns that lot that he proposes to convert; he
intends to establish a dwelling place for himself on said lot; the lot has an area not exceeding 500
square meters and the conversion shall be from agricultural to purely residential use.

Procedures

Conversion may allowed:

1. If the land subject of conversion is not those considered non-negotiable for conversion.

2. When the land ceased to be economically feasible and sound for agricultural purposes or the
locality has become urbanized and the land will have greater value for residential, commercial,
industrial and other non-agricultural purpose

3. For lands within SAFDZs (Strategic Agricultural and Fisheries Development Zones)

3.1 Conversion is consistent with the natural expansion of the locality, as contained in the
approved LUP.
3.2 The area is not the only remaining food production area of the community.
3.3 Conversion shall not hamper the availability of irrigation to nearby farmlands.
3.4 Land is low productivity area.
3.5 Sufficient disturbance compensation to affected farmers.
3.6 Shall not adversely affect air and water quality and the ecological stability of the areas as
determined by the EIA (Environmental Impact Assessment).

Posting of Cash Bond and Performance Bond

a. To guarantee that there will be no premature conversion while application is under process and
ensure faithful compliance with conditions of the conversion order (per Section 35, Chapter IV of
the Administrative Code of 1987).

b. Cash bond equivalent to 2.5% for the total zonal value of the land;

 Refundable upon issuance of conversion order or convertible to into performance bond at

applicant’s option.
 Shall be forfeited in favor of the government in event of actual conversion by applicant prior
to approval of application.
 Forfeiture shall be without prejudice to the filling of criminal charges against those
responsible for premature conversion.

Performance bond shall be posted within five (5) days from issuance of the conversion or order in any
of the following form:
 1. Cash, manager’s check, cashier’s check, irrevocable letter or credit, bank draft equivalent to
2.5% of the total zonal value of the land.

2. Bank guarantee equivalent to 15% of the total zonal value of the land.
(shall be posted in favor of DAR to guarantee the payment of amount of security as penalty in
the event of applicant’s default to comply with conversion order;)
(shall be co-terminus with the final completion of the project and will be forfeited in favor of
the government in case of violation).

Disturbance Compensation

1. Cash or in kind shall be paid by landowner or developer to tenants, farm workers, or bonafide
occupants to be affected by the conversion.

2. Mutually agrees upon between land owners or the developer.

3. Not less 5 times the average of the gross harvest on their landholdings for the past 5 proceeding
calendar years.

4. Fee housing, homelots, employment and other benefits

5. Must be approved by DAR.

6. In case of disagreement on the amount of, may be brought to the DAR Adjudication Board for
resolution.

Effects of Conversion Approval

1. Shall be limited to the specific use of the land authorized in the conversion.

2. Subject to the schedule indicated in the plan, but in no case shall exceed beyond five years from
issuance of conversion order, excepts as allowed.

3. Condition shall be binding upon successor-in-interest of the property.

4. DAR representative shall henceforth allowed entry to monitor compliance with conversion order.

5. Use authorized in the conversion order shall be annotated at the back of

6. Shall be without prejudice to ancestral domain claims of indigenous peoples, if any, subject to
Indigenous Peoples Right Act.

Approving Authorities: Official Authorized to Approve/Disapprove Conversion Requests

1. Five (5) hectares: Regional Director

 2. Above 5 hectares involving several parcel that total areas exceed 5 hectares:

 Located within the same or adjacent barangays

 Adjacent to an area previously granted conversion order

 Single project, with different owners, within same or two or more barangays

Grounds for revocation of Conversion Order

1. Lack of jurisdiction by approving authority

2. Misrepresentation of facts

3. Non-compliance with the conditions of conversion order

4. Non-compliance with the agreement on disturbance compensation payment

5. Conversion to other use other than authorized

6. Any other serious violation of agrarian laws

Penalties and Sanctions

1. Administrative

- cancellation
- blacklisting
- automatic disapproval of subsequent application
- CDO, in case of premature conversion
- Forfeiture of cash bond or performance bond

2. Criminal

- imprisonment: 2 to 6 years
- fine or
- both

Exemption: DAR AO#6 of 1994 (Guidelines for the Issuance of Exemption Clearance base of Sec. 3
(c) of R.A. 6657 and DOJ Opinion No. 44 Series of 1990).

 Section 3 (c) of R.A. 6657 to agricultural lands devoted to agricultural activity and not classified as
mineral, forest, residential, commercial or industrial land.
  DOJ Opinion:
Ruled that the authority classified as commercial, industrial, residential before June 15, 1998 no
longer need conversion clearance.

Suspension of Processing and Approval of Conversion

[ Under Administrative Order No. 226, Approved May 16, 2008 ]

Processing and approval of all land conversions applications affecting rice lands and lands mentioned
under Republic Act No. 8435 considered as Network of Protected Areas for Agricultural and Agro-
Industrial Development (NPAAD) which includes and covers

1. All irrigated lands

2. All irrigable lands already covered by irrigation projects
3. All alluvial plain land highly suitable for agriculture whether irrigated or not
4. Agro-industrial crop lands or lands presently planted to industrial crops that support the
viability or existing agricultural infrastructure and agro-based enterprises
5. Highlands, areas located at an elevation of five hundred (500) meters or above and have the
potential for growing semi temperate and high value crops
6. All agricultural lands that are ecological fragile and
7. Mangrove areas and fish sanctuaries

shall be temporarily suspended for 2 years.

_______________________________________________________________________

HOMEOWNERS ASSOCIATIONS

Jurisdiction over Homeowners Associations is now under the Housing Land Use and Regulatory Board [
HLURB ]

STATEMENT OF POLICY

It is a policy of the Housing and Land Use Regulatory Board to establish and maintain a system that shall
facilitate the processing of applications for Registration, Filing of Amended Articles of Incorporation and /
or By-Laws, Dissolution, and Enrollment of Homeowners’ Associations, and issuance of Certifications and
Certified True Copies.

SCOPE

This policy applies to all applications for Registration, Filing of Amended Articles of Incorporation and /
or By-Laws, Filing of Dissolution, Enrollment and Requests for Certifications and Certified True Copies,
submitted to this Office for evaluation and approval.
OBJECTIVES

To effectively implement Section 26 of Republic Act No. 8763 transferring to the Housing and Land Use
Regulatory Board the powers, authorities and responsibilities vested in the Home Insurance and Guaranty
Corporation, with respect to homeowners associations under Republic Act No. 580, as amended by
Executive Order No. 535, series of 1979, and Housing and Land Use Regulatory Board Resolution No. R-
771, Series of 2004.

GUIDELINES

All applications shall be filed with the Homeowners’ Association Franchising and Adjudication Unit,
located at the Ground Floor, Homeowners’ Association Building, HLURB compound, Kalayaan Avenue
corner Mayaman Street, Diliman, Quezon City or at the respective Regional Office who has jurisdiction
over the concerned association. Only applications with complete and collated requirements shall be
accepted for processing. An approval is granted to an application when it is complete, unopposed, and in
accordance with the law and the HLURB Rules on Registration and Supervision of Homeowners’
Associations. Issuance of a Certificate of Registration, Filing of Amended Articles of Incorporation and /
or By-Laws, Dissolution, Enrollment, Certifications and Certified True Copies shall be upon payment of
the prescribed fees.

DOCUMENTARY REQUIREMENTS FOR THE ISSUANCE OF A HOMEOWNERS’ ASSOCIATION

CERTIFICATE OF INCORPORATION / FILING OF BY-LAWS

1. Articles of Incorporation - signed by all 5 to 15 incorporators on every page.

2. By-Laws - signed by all 5 to 15 incorporators on every page if filed with the articles of
incorporation or signed by the majority of the members of the association and duly certified by the
majority of the directors and countersigned by the secretary, if filed within one (1) month after the
issuance of the certificate of incorporation.
3. Notarized Written Undertaking by the Incorporators – to change the corporate name in the event
that another person, firm or entity has acquired a prior right to the use of said name or one similar to
it; and to comply with all the rules and regulations of the HLURB.
4. Notarized Information Sheet – contains the name of the association, principal office address, list of
board of directors and trustees and their addresses, list of officers and their positions.
5. Notarized List of the Members of the Association – a complete list of the members of the
association.
6. Notarized Certification – as to the existence or absence of a HOA in the subdivision, territorial
jurisdiction of the HOA, name and address of the nearest existing HOA.
7. Notarized Authorization – written authority of the incorporators for the representative of the
association to transact or follow up the application with HLURB.
8. Approved Subdivision Plan – (for regular subdivisions)

Additional Requirements For Self-Help Housing Projects or Projects Undertaken Under the Group Land
Acquisition and Development (GLAD), Community Mortgage Program (CMP), or other similar land
tenural assistance programs
 1. Location and Vicinity Map of the Project – whether on-site or off-site, duly signed and certified by
a geodetic engineer or surveyor.
2. Notarized List of Officers and Members - stating the nature of their occupancy, whether as owner or
tenant.
3. Transfer Certificate of Title – certified true copy of the TCT from the Register of Deeds, issued not
later than thirty (30) days before the date of application.
4. Letter of Intent to Sell, Contract to Sell, or Deed of Absolute Sale, or Memorandum of Agreement –
duplicate original notarized copies.

Note:
Such other documentary requirements as may be imposed by the Housing and Land Use Regulatory Board
(HLURB)

NON-HOLDING OR POSTPONEMENT OF REGULAR OR SPECIAL MEMBERSHIP MEETING OF

ELECTION - executed by the secretary of the board of directors and attested to by the president, the
following documents are submitted within five (5) days from the date of the scheduled meeting or election
in case a regular or special membership meeting or election is not held or is postponed

1. Notice of postponement of the regular or special membership meeting

2. Affidavit of non-holding of regular membership meeting stating valid reasons therefor
3. Affidavit of non-holding of regular election stating categorically the reason why no regular
elections were conducted in accordance with the provision of the Association By-Laws

_________________________________________________________

PRESIDENTIAL DECREE NO. 957

THE SUBDIVISION AND CONDOMINIUM BUYER’S PROTECTIVE DECREE

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 requirement 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 system, lighting systems, and other similar basic
requirements, thus endangering the health and safety of home and lot buyers;

WHEREAS, reports to 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 business 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 be the Constitution, de hereby decree and order:

TITLE I - TITLE AND DEFINITIONS

SECTION I. Title. - This Decree shall be known as THE SUBDIVISION AND CONDOMINIUM
BUYER'S PROTECTIVE DECREE.

SECTION II. 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 association 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 thereon, if any in
a subdivision project or a condominium unit in a condominium project. "Sale or Sell" shall also
include a contract to sell, a contract or 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 term "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. - "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 purpose 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 or Parts or 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 or 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 the 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 finding that the plan complies with the Subdivision Standards and
Regulations enforceable at the time 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 IN CASE OF COMPLES 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 filing therewith a
sworn registration statement containing 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 authorized to receive notice;

c) The names and addresses of all the directors and officers of the business firm, if the owners 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 capital stock and the proportion thereof with 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 paragraph 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, and
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 thereof 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 of general
circulation, one published in English and another in Pilipino, once a week for two consecutive weeks,
reciting that a registration statement for the subdivision lots or condominium units has been filed in the
National Housing Authority; that the aforesaid registration statement, as well as the prepare 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 or 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 therefore, shall issue to such owner or dealer of a registered
project a license to sell the project if, after an examination 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 file an
adequate performance bond approved by said Authority to guarantee the construction and maintenance of
the roads, gutters, drainage, sewerage, water systems, lighting systems, and full development of the
subdivision project or the condominium project and the compliance by the owner or dealer with 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 undertakings 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 bonafide debt.

SECTION 8. Suspension of License to Sell. - Upon verified complaint filed by a buyer of a

subdivision lot or a condominium unit or 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 propio 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 sale of the subdivision or condominium project may work or tend to
work a fraud upon prospective buyers.

The suspension order may 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 nor 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. Revolution of Registration Certificate and License to Sell. - The Authority may, motu
propio 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 hearing as provided for in Section 14
hereof, it 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 Salesman. - 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 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 application
rules of the Authority, including the payment of the prescribed fee, he shall register such applicant as a
dealer, broker or salesman upon his 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 therefore 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 or 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:

a) Has violated any provisions of this Decree or any rule or regulation made hereunder; or

b) Has made a material false statement in his application for registration; or

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

d) 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 or 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 the suspension
or revocation of the registration; provided that such order shall state the cause for the suspension.

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 Sections 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 proceedings. - 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 hearings. - For the purpose of the hearing or other proceedings under this
Decree, the officer or officers designated to hear the complaint shall have the power to administer
oath, 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 or 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 Pesos (P50.00) 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 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 the 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 immediately be 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 constitute or will constitute a violation of
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 of 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 if 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 of open space, a memorandum tot he
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. Mortgage. - No mortgage of 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 thereof.

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 of activities must reflect the real facts and must be presented in such manner
that will not tend mislead or deceive the public.

The owner or developer shall be 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 of 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 advertisements, 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 of developer to comply with the obligation 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 developments 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 homeowner's 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 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 including delinquency interests, with interest thereon at the legal rate.

SECTION 24. Failure to pay installments. - The rights of the buyer in the event of his failure to
pay the installments due for reasons other than the failure of the owner or developer to develop the project
shall 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 tot he 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 be paid by the
owner or developer without recourse to the buyer for as long as the title has not passed to the buyer;
Provided, however, that if the buyer has actually taken possession of the 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 unit 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 homeowner's 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 Subdivision. - 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 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 authorities concerned.

SECTION 30. Organization of Homeowner's Association. - The owner or developer of a

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

SECTION 31. Donation 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 projects are 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 (10) hectares. The requirement imposed by this Decree on the subdivision
as a whole shall be deemed imposed by phase.

SECTION 33. Nullity of Waivers. - Any condition, stipulation, or provision in a contract of sale
whereby any person waives compliance with any provisions 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 to do so 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 conform
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 expense of the owner or developer,
jointly or severally, in case 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 regulations thereunder.
Fines shall be payable to the Authority and enforceable through writs or 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 pesos (20,000) and/or imprisonment of not more that ten (10) years;
Provided, that in the case of corporations, partnerships, 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 parts thereof
inconsistent with the provisions of this Decree are hereby repealed or modified accordingly.

SECTION 43. Effectivity. - This Decree shall take upon its approval. [ July 12, 1976 ]

REVISED IMPLEMENTING RULES

AND REGULATIONSFOR BP 220
(WITH AMENDMENTS)

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 channelled
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 millimeters or more, shrubs and
desirable ground cover shall be preserved. Where a good quality topsoil 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.

c. 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.

d. 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 Section10.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
1hectare 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 Allocation Density Allocation

(No. of lots/DU* (% of gross area (No. of lots/DU* (% of gross area
per hectare) for PP**) per hectare) for PP**)

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 and/or Multi-Purpose Retail Center** School** School** Terminal*
Dwelling Unit Center*

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 Allocation Density Allocation

(No. of lots/DU* (% of gross area(No. of lots/DU* (% of gross area
per hectare) for CF**) per hectare) for CF**)

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 anddwelling 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
RANGE (has) HOUSING HOUSING

2.5 has. And below Major, minor, motor court, Major, minor, motor
Alley court, 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. 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

ECONOMIC HOUSING SOCIALIZED HOUSING

RIGHT-OF-WAY Planting Strip Sidewalk Planting Strip Sidewalk

(m) (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. (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)

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).

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.
 RIGHT OF WAY
a. 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 3.5 m

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 mid-length.

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 of the issuance of Certificate of
Completion (COC) and turnover of open space t 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 license
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 millimeters.

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

1. Project Location Within suitable sites for housing and outside potential hazard prone and protection
areas.
___________________________________________________________________________________
2. Land Allocation for Projects
1 hectare and above
a. Saleable Area a. Variable

b. Non-saleable area b. See open space requirement as per b.1, b.2 and b.3

Mandatory allocation for parks and playgrounds per tabulation below:

b.1 Area for parks Density % of Density % of
and playgrounds (No. of Lots or Gross Area (No. of Lots or Gross Area
for projects 1hectare Dwelling Unit for Parks & Dwelling Unit for Parks &
& above. Per Hectare) Playgrounds Per Hectare) Playgrounds

150 & below 3.5% 150 & below 3.5%

151 – 160 4.0% 151 – 160 4.0%
161 – 175 5.0% 161 – 175 5.0%
176 – 200 6.0% 176 – 200 6.0%
201 – 225 7.0% 201 – 225 7.0%
Above 225 9.0% Above 225 9.0%

An addition of 1% increment for every 10 or fraction thereof above 225.

In no case shall an area allocated for parks and playgrounds be less

than 100 square meters. The same shall be strategically located within
the subdivision project.
_________________________________________________________
b.2 Area for
community Mandatory provision of area for neighborhood multi-purpose center both
facilities for economic and socialized housing projects with 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 mandatory 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)
__________________________________________________________
Density % of Gross Area Density % of Gross Area
(No. of lots or for Community (No. of lots or for Community
Dwelling Units Facilities Dwelling Units Facilities
Per Hectare) Per Hectare)

150 & below 1.0% 150 & below 1.0%

151 – 225 1.5% 151 – 225 1.5%
Above 225 2.0% Above 225 2.0%
____________________________________________________________________________________

b.3 Circulation Observe hierarchy of roads

System
____________________________________________________________________________________________
PARAMETERS ECONOMIC HOUSING SOCIALIZED HOUSING

3. Minimum Lot Area

3.1 Single Detached 72 sqm. 64 sqm.

3.2 Duplex/Single-Attached 54 sqm. 48 sqm.

3.3 Row house 36 sqm. 28 sqm.

_________________________________________________________
Saleable lots designated as duplex/single-attached and/or row house
lots shall be provided with housing components.

Price of saleable lots intended for single-detached units shall not

exceed 40% of the maximum selling price for house and lot package.
___________________________________________________________________________________

4. Minimum Lot
Frontage
4.1 Single
Detached 8 m. 8 m.
a. Corner lot 8 m. 8 m.
b. Regular lot 4 m. 4 m.
c. Irregular lot 3 m. 3 m.
d. Interior lot 6 m. 6 m.

4.2 Single Attached/

Duplex 4 m. 4 m.

4.3 Row house

5. Length of BlockMaximum length of block is 400 meters. However, blocks exceeding 250 meters shall be
provided with a 2-meter alley approximately at midlength.
___________________________________________________________________________________

6. Road Right-of-Way

Project Size Range Major Collector Minor Major Collector Minor

(m) (m) (m) (m) (m) (m)
2.5 has. & below 8 - 6.5 8 - 6.5
above 2.5 – 5 has. 10 - 6.5 10 - 6.5
Above 5 – 10 has. 10 8 6.5 10 - 6.5
Above 10 – 15 has. 10 8 6.5 10 8 6.5
Above 15 – 30 has. 12 8 6.5 10 8 6.5
Above 30 has. 15 10 6.5 12 10 6.5

ROW Carriageway ROW Carriageway

Motor Court 6 5 6 5
Alley 2 - 2 -
Pathwalk - - 3 -
_____________________________________________________________________________________________

_____________________________________________________________________
PARAMETERS ECONOMIC HOUSING SOCIALIZED HOUSING

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

the preceding table. 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 subgrade.

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 road shall have a minimum right-of-way of 6.50 meters.

Note:
1. 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 right-of-way of 10 meters.
This fact shall be annotated on the title of said road lot and must be
donated and deemed turned over to the LGU upon completion of
the said interconnecting road. (See figure 1)

2. Subdivision projects abutting main public thoroughfare must provide

sufficient setbacks (at least 3.0 meters in depth by 5.0 meters in
 length) at both sides of the subdivision entrance to accommodate
loading and unloading of passengers. (See figure 2)

3. Contiguous projects or projects to be developed by phases shall be

provided with interconnecting road with a minimum right-of-way of
10 meters.

4. 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 property.

5. 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.
____________________________________________________________________________________

7. Hierarchy of Roads
per Project Size Range

2.5 has. & below Major, minor, motor court, alley Major, minor, motor court
pathwalk
Above 2.5 – 5 has. -do- -do-
Above 5 – 10 has. Major, collector, minor, motor -do-
court alley
Above 10 – 15 has. -do- Major, collector, minor, motor
Court, pathwalk
Above 15 – 30 has. -do- -do-
Above 30 has. -do- -do-
____________________________________________________________________________________
_____________________________________________________________________
PARAMETERS ECONOMIC HOUSING SOCIALIZED HOUSING

8. Roads
Specifications
8.1 Planting Strip (PS)
Sidewalk (SW)
ROW PS SW
15.0 m. 1.30 m 1.20 m
12.0 m. 0.80 m 1.20 m
10.0 m. 0.80 m 1.20 m
8.0 m. 0.40 m .60 m
6.5 m. optional .50 m
_________________________________________________________
Refer to Supplemental Rules and Regulations to Implement PD 953 for specific tree
species, Annex 2B
_________________________________________________________
8.2 Road Pavement
Major Concrete/Asphalt
Minor Concrete/Asphalt
Motor Court Macadam
 Sidewalk Macadam
Pathwalk/alley Macadam
___________________________________________________________________________________
Concrete road pavement shall have a minimum thickness of 150
milimeters and a minimum compressive strength of 20.7 MPa at 28
days. Asphalt pavement shall have a minimum thickness of 50
milimeters.
____________________________________________________________________________________

9. Water Supply Mandatory connection to appropriate public water system. Each

subdivision shall have at least an operational deepwell and pump sets
with sufficient capacity to provide ADD to all homeowners provided
further that a spare pump and motor set is reserved. Water supply shall
be potable and adequate.

9.1 Minimum Water Supply 150 liters per capita per day for household connection
Req’t. __________________________________________________________

9.2 Fire Protection Provision for fire protection facilities shall comply with the requirements
Demand of the Fire Code of the Philippines.
____________________________________________________________________________________

10. Electrical Power Mandatory individual household connection to primary and alternate
Supply sources of power if service is available in the locality.

Mandatory provision of street lighting per pole if 50-meter distance; at

every other pole, if the distance is less than 50 meters.

Electric bills shall be proportionately shouldered by users prior to

issuance of COC and tur over of open space to LGU.

Installation practices, materials and fixtures used shall be in accordance

with the provision of the Philippine Electrical Code and local utility
company.
____________________________________________________________________________________

PARAMETERS ECONOMIC HOUSING SOCIALIZED HOUSING

____________________________________________________________________________________

11. Drainage System The drainage system for economic and socialized housing projects shall
be made of concrete lined canal with adequate capacity and with load

The drainage system must conform with the natural drainage pattern of
the subdivision site, and shall drain into appropriate water bodies, public
drainage system or natural outfalls.

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 diameter shall be 300 millimeters.
____________________________________________________________________________________

12. Sewage Disposal

System

12.1 Septic Tank Individual septic tank conforming to the standards and design of the
Sanitation Code of the Philippines.

Construction of individual septic tanks shall conform to the standards

and design of the Sanitation Code of the Philippines.
__________________________________________________________
12.2 Connection to Whenever applicable, connection shall be made to an approved public
Community or community sewer system subject to the requirements and provisions
Sewer System of the Sanitation Code of the Philippines and other applicable rules and
regulations.
____________________________________________________________________________________

13. Garbage Disposal Provide sanitary and efficient refuse collection and disposal system
System whether independently or in conjunction with the local government
garbage collection and disposal services.
____________________________________________________________________________________

14. Shelter
Component
14.1Minimum Floor
Area
a. Single Detached 22 sq. m. 18 sq. m.
b. Duplex/Single Attached 22 sq. m. 18 sq. m.
c. Row house 22 sq. m. 18 sq. m.
__________________________________________________________

Mandatory provision of firewall for duplexes/single-attached units and at

every unit for row houses (See Fig. 10)

The number of row houses shall not exceed 20 units per

block/cluster but in no case shall this be more than 100 meters in
length.
____________________________________________________________________________________________
______________________________________________________________________

PARAMETERS ECONOMIC HOUSING SOCIALIZED HOUSING

________________________________________________________________________________

14.2 Minimum Level

of Completion
a. Single Detached Complete house Shell house
(Based on submitted specifications) (with doors and windows to
enclose the unit

b. Duplex/Single Attached Same Same

 c. Row houses Same Same
____________________________________________________________________________________

15. Setback/Yard
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 requirement of the National Building Code of the
Philippines

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 provided
without 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 less
than 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. 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

____________________________________________________________________________________

Type of Lot Percent of Open Space

Residential All Others
____________________________________________________________________________________

a. Interior lot (lot located in the interior 50% 25%

of a block made accessible from a public street
or alley by means of a private 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 as streets, easement of 5% 5%
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 millimeters. (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. 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

NON-RESIDENTIAL AREAS >25% OF TOTAL AREA

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 ) 2.0 2.3 2.6 2.9 3.2 3.5 3.8 4.1 4.4 4.7 5.0
____________ )
)
Inside )
_____________ )
)
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
4.1 eaves shall be 1.50 meters. (See Fig. 12: Distance Between 2-Storey
Buildings).

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
In the measurement of distance between two buildings, measurement shall be made where the
distance between the two buildings is shortest. (See Fig. 15: Measurement of Distance Between
Buildings).

Fig. 15: Measurement of Distance Between Buildings

MEASURE THIS SHORTEST DISTANCE

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

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 ar
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 I caliper
diameter of 200 millimeters, houses, barns, shacks, and other significant features.

6) Proposed public improvements: highways or other major improvements planned b 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 othe 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, park 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 t 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 th 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 hereof 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 O Non-Coverage

(CNC), whichever is applicable, duly issued by the Department O 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 th 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 Boar 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 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 an 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 ma 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 o 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.

OTHER REAL ESTATE HOLDINGS

1. FARMLOT SUBDIVISION

APPLICABLE LAWS
PD 815 (1975) – Prescribing penalties for the unlawful ejectment, exclusion, removal or ouster of tenant
farmers from their farmholdings.
EO 648 – Reorganizing the Human Settlements Regulatory Commission
HLURB Board Resolution no. 750 s. 2003 – Liberalizing the requirements for the issuance of Certificate of
Registration and License To Sell for Farmlot Subdivisions

RELEVANT TERMS

FARMLOT SUBDIVISION – A planned community primarily for intensive agricultural activities and
secondary for housing.
PLANNED COMMUNITY – consists of provisions of basic utilities, judicious allocation of areas, good
layout based on sound planning principles.
BUILDABLE AREA – The maximum area allowed for structures attendant to agricultural activities.
AGRICULTURAL LANDS – Parcels of land ranging from 0.20 to 0,50 or more hectares exclusively or
predominantly used for agricultural crop cultivation, livestock production and agro-forestry without the
intended qualities of the farmlot subdivision.

ALLOWABLE USES & AREA REQUIREMENTS

1. Crop Farming – (tree crops, mixed orchard, diversified crops) – NO LIMITATION.
2. Poultry Farms – limited to backyard scale (maximum 500 birds per lot or 0.19 sqm.per bird)
3. Swine – limited to backyard scales (maximum 10 sow per lot or 3.0 sqm. per hog)
 4. Aqua-culture – (tilapia, eel, carp, etc.) – NO LIMITATION
5. Livelihood – limited to backyard scale.
a. Milking Cow – maximum of 5 cows. 12 sqm., 4-5 cows
b. Cattle Fattening – maximum of 5 cows, 8 sqm. per cow
c. Goat Raising – maximum of 10 goats, 6 sqm. per goat (for shelter and quarters only)
6. Vermiculture – depends on production scale, may need initially 20 sqm.
7. Agro-industrial Activities – limited to backyard scale.
a. Rice Mill – maximum of 300 sqm. & not less than1,000 meters away from another mill.
b. Food Processing Preservation – shall be within the buildable area
8. Cottage Industries – limited to backyard scale.
a. Handicrafts – shall be within the buildable area.
b. Ceramics – shall be within the buildable area.
c. Others, or a combination of the above.

MINIMUM DESIGN STANDARDS

1. Conform with Land Use Plan & Zoning Ordinance of the locality having jurisdiction over the
project site.
2. Variation from this standards may be authorized if deemed reasonable and not detrimental to the
surrounding areas and not self-created.
3. Dwelling units shall be of appropriate design to minimize surface run-off.

SITE CRITERIA
ZONING & LAND USE - Site shall be located in areas classified as or appropriate for agricultural
land use.
ACCESSIBILITY – Site must be accessible to transportation lines. Roads and railroad facilities
should add to
AVAILABILITY OF COMMUNITY SERVICES & UTILITY
Roads & water sources must be found and readily available to serve the needs of the intended
prospective farm activities. Where available, subdivision development must include provision of
power lines to farmlots.
DISTANCE FROM THE URBAN CORE
- Must be away from the center of Metro Manila and/ or in the fringes of the urban core of the
metropolis and of the cities and municipalities.
- Should also be accessible from the market centers & population centers where the products of
the farmlots can be readily marketed
PHYSICAL SUITABILITY OF THE SITE
Varies with respect to the intended farm activities within the subdivision. Natural features considered for
varied farm activities are slope, climate, and soil type.
Design Considerations
 Minimum Project Size -1 hectare
 Land Allocation –
o Housing - 40%
o Agricultural Use - 60%
 Lot Sizes – Minimum plot size - 750 sqm.
 Block Sizes – Block measurement shall have a maximum length of 400 meters

UTILITIES AND FACILITIES

 Water Supply
o Domestic use – 40 liters/capita/day
o 132 liter for milk-producing cow
o 190 liters per cow
o 8 – 19 liters per 100 birds
 Drainage System – surface or sub-surface
 Waste Disposal System – sewerage system, septic vault, refuse collection system
 Electrical Distribution System – shall be provided
 Frontage – minimum of 15 meters w/ an access road
 Buildable Area – should not exceed 25% of total lot are

REQUIRED SITES FOR COMMUNITY FACILITIES

Number of Lots or Families and Recommende

Area Requirement for Each Facility d Walking
24 Facilities
- 50 - 100 - 200 - 400 - 600 & Distance from
49 99 199 399 599 over Farthest Lot
1. Park & 100 200 400 700 1,200 1,500 1.5
Playground

2. Neighborhood/
multi-purpose 50 75 100 150 200 200 1.5
center

3. Service Center 50 100 150 200 250 300 1.5

4. Health Center/ 50 75 100 150 200 200 1.5

Clinic
5. Community Store/ Talipapa 100 100 200
1.5
6. Drugstore 50 50 50 50 50 100 0.5
7. Site for Religious Use 100 1.5
8. Elementary School 5,000 0.8
9. High School 5,000
1.5
TOTAL AREA 300 500 800 1,350 2,000 12,600

REQUIRED GOVERNMENT CLEARANCES, PERMITS & LICENSES

1. DENR – Environmental Compliance Certificate

2. Barangay Approval – Barangay Resolution
3. Preliminary Approval & Locational Clearance issued by HLURB or LGU
4. Final Approval/Development Permit issued by HLURB or LGU
5. Certificate of Registration & License To Sell
2. INDUSTRIAL SUBDIVISION

APPLICABLE LAWS
EO 648 Reorganizing the Human Settlements Regulatory Commission
HLURB Resolution R-498 (1992) Amending Rules & Regulations on Industrial Subdivision

RELEVANT TERMS

INDUSTRIAL SUBDIVISION – A tract of land partitioned into lots for sale or lease to establishments
engaged primarily to industrial production or services. Degree of development may be limited to:
1. Provision of utilities and allocation of areas for industrial buildings, facilities and amenities or
2. Provision of the buildings, facilities and amenities.

INDUSTRIAL ESTATE (PARK) – A form of an industrial subdivision characterized by:

1. Development according to comprehensive plan
2. Continuing management of the entire area is left to a single controlling body.
3. Screening of industries is done prior to development.

INDUSTRIAL PLOT OR FACTORY PLOT OR PLOT – An allocated lot within the industrial subdivision
intended for industrial or factory use and where such industry or factory is located.
PLOT BUYER/LESSEE – Shall mean any individual, group, or entity who has expressed intention of
purchasing/leasing a plot(s)through the payment of at least an initial fee (down payment) and first regular
payment/ amortization to the owners in terms and conditions agrees upon by both parties
A plot buyer or lessee shall be taken to mean one regardless of the number of plots he has purchased/
leased
INDUSTRIAL USE – shall mean a land use/ land activity that is principally engaged in industrial
production or services

DESIGN GUIDELINES

SITE CRITERIA – Located in areas classified as or appropriate for industrial use

DESIGN & PLANNING CONSIDERATIONS
1. Ensure economy, efficiency & flexibility
2. Preserve natural features for environmental consideration

LAND REGULATIONS
1. May be resorted to for the purpose of regulating the type & mixture of industrial activities
undertaken including the height and bulk of factory buildings
2. Should conform to zoning regulations & pertinent rules and regulations
3. Must be approved by HLURB prior to implementation
4. Regulations should form part of the contract of lease or deed sale of the industrial plots

DESIGN STANDARDS
1. Minimum plot size – 500 sqm.
2. Minimum plot frontage – ½ of the depth of the plot but not less than 10 meters
3. All plots shall front on a street
4. Length of blocks – NMT 500 meters
5. Setbacks – in accordance with National Building Code
6. Roads – all of concrete pavement
7. Easements – in accordance with Water Code
a. 3 meters easement for all urban uses
b. 20 meters easement for all agricultural uses
c. 40 meters easement for all forest uses
8. Buffer strips – at least 10 meters wide along the entire stretch of the subdivision where it abuts
conflicting uses – maybe perimeter road, parking lot, or preferably planting strip
9. Hierarchy of Roads
a. Major – 20m ROW, 2m SW each side, 1m PS each side
b. Secondary – 17m ROW, 1.5m SW each side, 1m PS each side
c. Service – 13m ROW, 1.5m SW each side, 1m PS each side
d. Pathway – 4m ROW
10. No dead ends
11. Pathways encouraged
 a. Minimum 4 meters wide; connect to road network, factory buildings & facilities
12. Parking, Loading & Unloading Areas
a. On-street parking discouraged
b. Allocate land for off-street loading/unloading; locate to minimize traffic obstruction
13. Entrance & exit points
a. Strategic location for security & emergency considerations
14. Other transport facilities
a. Construction of wharves and other facilities to conform with standards & guidelines of
pertinent agencies
15. Utilities
a. Water supply system – whenever possible, connect to an approved public or community
water supply system it is not prejudicial to needs of locality, it inadequate – develop
additional source or install approved centralized water supply system
16. Owner shall provide water for industrial (minimum 85 cu.m. per day per hectare) & domestic
consumption (minimum 75 LPCPD)
17. Provide waste disposal system
a. Industrial waste, sewage disposal, solid waste

18. Provide storm drainage system

19. Put up power supply and communication system
20. Provide fire escape facilities
21. Facilities & Amenities
a. Projects with a minimum of 20 plots – allocate 1% of gross area for administration
b. Allocate space for facilities necessary for the well-being of workers & employees

REQUIREMENTS FOR IMPLEMENTATION

1. Barangay Approval – Barangay Resolution

2. Premilinary Approval of Development Plan & Development Permit (valid for 2 years) –
HLURB or LGU
3. Environmental Compliance Certificate – DENR
4. Certificate of Registration & License to Sell/Lease – HLURB

MISCELLANEOUS PROVISIONS

1. Advertisements
a. Cleared with HLURB
b. Should contain the approved License to Sell/Lease
2. Request for Extension
3. Non-forfeiture of installment payments
4. Issuance of title – upon full payment of the plot
 5. Registration of conveyance – within 180 days
6. Mortgage – cleared with HLURB
7. Realty tax – owner/developer to pay; buyer who has taken possession or occupied the plot is
liable to owner/developer for such tax assessment effective the year following such possession
or occupancy
8. Broker as witness to sale

3. MEMORIAL PARK

DEFINITION OF MEMORIAL PARK

A privately-owned cemetery with well kept landscaped lawns and wide roadways and footpaths separating
the areas assigned for ground interments, tombs, mausoleums and columbaria; with or without a mortuary
chapel; and provided with a systematic supervision and maintenance and where park-like atmosphere is its
outstanding quality.

STEPS TO SECURE LICENSE TO LEASE/SELL FROM HLURB

1. Prepare Project Feasibility Study
2. Secure Zoning Certification issued by HLURB or city/municipality concerned
3. Secure Initial Clearance by the Department of Health by P.D 856 (Sanitation Code)
4. Secure Environmental Compliance Certificate (ECC)or Certificate of Non- Coverage (CNC) duly
issued by the Department of Environmental and Natural Resources (DENR)
a. > 5 hectares – requires ECC
b. < 5 hectares – requires CNC
5. Approval of Preliminary Development Plan from HLURB – for projects located in cities or
municipalities with or without a Land Use Plan and/or Zoning Ordinance
6. Secure Clearances/Permits from National Water Resources HLURB (NWRB)
7. Secure Permit from the Department of Public Works and Highways (DPWH) when necessary e.g.
when opening an access to a controlled traffic artery.
8. Secure Approval of Final Memorial Park Plan from HLURB
9. Secure Certificate of Registration from HLURB
10. Secure License to Sell/Lease from HLURB
11. Secure permits/clearances from LGU concerned

APPROVAL OF THE PRELIMINARY DEVELOPMENT PLAN

1. For projects located in cities or municipalities with or without a Land Use Plan and/or Zoning
Ordinance
2. Valid only for a period of 180 days from date of approval
3. A revalidation can be availed of only once after said period
DOCUMENTARY REQUIREMENTS FOR APPROVAL OF PRELIMINARY DEVELOPMENT
PLAN

1. Site Development Plan/Scheme duly assigned and sealed by a license environmental planner
a. Accessible to Persons With Disabilities (PWDs) in accordance with BP 344 otherwise
known as the Accessibility Law and the Magna Carta for disabled persons (RA7277)
2. Documents duly signed and sealed by a licensed geodetic engineer:
a. Vicinity map/location map at a scale of 1:10,000 with a radius of 500 meters from the
project site indicating existing utilities and community facilities
b. Topographic Plan to include existing conditions
3. Zoning Certification from HLURB or LGU concered
4. Certified true copy of Environmental Compliance Certificate (ECC) or Certificate of Non-
Coverage (CNC) duly issued by DENR
5. Certified true copy of Title and Survey Plan

APPROVAL OF FINAL MEMORIAL PARK/CEMETERY PLAN

1. Engineering plans duly signed and sealed by a licensed civil engineer based on applicable
Engineering Code and Design Criteria
2. Final Memorial Park Cemetery Plan consisting of the site development plan duly signed and sealed
by a licensed environmental planner
3. Storm drainage plan duly signed and sealed by a licensed sanitary engineer or civil engineer
4. Centralized or combined storm and sewer system plan duly signed and sealed by a licensed sanitary
engineer
5. Site grading plan duly signed and sealed by a licensed civil engineer
6. Electrical plan and specifications duly signed and sealed by a licensed professional electrical
engineer and duly approved by the city/municipal electrical engineer
7. Landscaping plan indicating plant/tree species and other natural/man-made landscaping features
e.g. lagoon, garden, benches, etc. duly signed and sealed by a licensed landscape architect
8. Summary of project study indicating market, source/s of fund, statement of income, cash flow and
work program
9. Certified True Copy of Title or other evidence of ownership or intent to sell and authority to
develop signed by the owner, Tax Declaration and current real estate tax receipt
10. Clearances/Permits/Certifications from other agencies applicable to the project
11. Clearances/Permits from Natural Water Resources Board (NWRB)
a. Clearance stating that the memorial park/ cemetery is not located on ground where the water
table is not higher than 4.50 meters below the ground surface
b. Water permit whenever a well within the project site shall be dug
c. Permit to operate the well
 12. Permit from the Department of Public Works and Highways (DPWH) when necessary e.g. when
opening an access to a controlled traffic artery
13. Initial clearances from the Department of Health
14. Certified True Copy of ECC or CNC duly issued by the DENR
15. Joint affidavit of owner/developer and licensed environmental planner that the memorial
park/cemetery plan conforms to the standards and requirements of these rules and that the
development thereof shall be made in accordance in the program submitted to the HLURB or
city/municipality concerned
16. List of names duly licensed professional who signed the plans and other similar documents in
connection with the application filed with HLURB or city/municipality

DEVELOPMENT PERMIT ISSUED

1. If the application for the project is physically feasible

2. Plan complies to the zoning ordinance to the city or municipality where it is situated
3. Complies with the rules per HLURB Resolution
4. Issued by the HLURB or city/municipality concerned upon payment of the prescribed processing
fee and under such conditions as may be imposed by the HLURB or city/municipality concerned

VALIDITY OF FINAL APPROVAL

1. Valid for a period of 2 years from date of issue

2. If physical development such as clearing and grubbing, road excavation, filling and compaction,
etc. is not commences within said period, the grantee of the permit may apply for its revalidation
within the next succeeding year
3. If the development permit expires, no development shall be allowed unless a new application for
approval is filed.

CERTIFICATEOF REGISTRATION FROM HLURB

1. Submission of Survey Returns - Submit an authenticated copy of the verified survey returns of
mother title, sections, and blocks including number oflotsper block in each section together with the
technical descriptions of road lots, open spaces, facilities and blocks as surveyed by the owners
developer’s licensed geodetic engineer.
2. The technical description shall form part of the certificate of lease/deed of sale issued to each
lessee/buyer.
APPLICATION FOR REGISTRATION

When the proponent has at least accomplished 20% of the total development and is interested in the
perpetual lease/sale of plots in a memorial park/cemetery project he shall register the project with the
HLURB.

DOCUMENTARY REQUIREMENTS

1. Sworn registration statement.

2. Copy of the TCT in the name of the applicant if none was submitted in the application lot plan
approval.
3. Articles Of Incorporation or Partnership or Association.

4. Copy of latest annual corporate report to the Securities and Exchange Commission, including a
copy of the latest financial statements certified by a certified public accountant.
5. Affidavit of the owner that the property is free from liens and encumbrances, except legal
easements and restrictions.
a. In case the project or portion thereof is mortgaged, to release the mortgage on any plot as
soon as the full purchase/lease price for the same is paid by the buyers/lessees;
6. A copy of contract form to be used in the lease/sale of the plots.
7. A copy of the contract of management or development, if the management or development will be
undertaken by a person other than the owner, and
8. A copy of any circular, prospectus, brochure, advertisement, letter of communication to be used for
the public offering of the memorial park/cemetery plots.

PUBLICATION OF FILING OF REGISTRATION STATEMENT

1. Upon finding that the project may be registered in accordance with the provision of these Rules, the
HLURB shall cause to be published at the expense of the applicant’s a notice of the filing of the
registration statement in 2 newspapers of general circulation; one published in English and another
if Filipino, once a week for 2 consecutive weeks, reciting that a registration statement for the
lease/sale of the plots has been filed with the HLURB and that the aforesaid registration statement
as well as papers attached thereto, are upon to inspection during business hours by interested
parties.
2. After 2 weeks from the completion of the publication and upon submission of the affidavit of
publications, the HLURB shall in the absence of any impediment, issue a certificate of registration
upon payment of the prescribed fees.
LICENSE TO LEASE/SELL

1. No owner or dealer shall lease/ sell any disposable plot in the registered project without a license to
lease/sell issued by the owner or dealer, the HLURB shall issue him a license to lease/sell the plots
in the project or portion thereof covered by the performance bond, his business is financially stable,
and the proposed lease/sell of the plots to the public is not fraudulent.

PERFORMANCE BOND

The performance bond required may be in any of the following forms:

1. A surety bond amounting to 20% of the cost of the outstanding remaining or the unfinished
portion of the approved plan

2. Real Estate Mortgage to be executed by the applicant as mortgagor in favor of the Republic of
the Philippines as mortgage
3. A cash bond equivalent to 50% of the development cost

DESIGN STANDARDS AND GUIDELINES

Memorial parks shall conform with:

1. Land use plan or zoning ordinance of the locality having jurisdiction over the project site
2. Pertinent provisions of the
a. Sanitation Code
b. Water Code
c. National Building Code of the Philippines and its referral codes, like the Accessibility
Law, Plumbing Code, Electrical Code, etc. and
d. Other applicable laws and rules affecting related services and
3. Design standards set by HLURB

SITE CRITERIA

1. Memorial parks shall be located on the periphery of the town center or in areas sparsely inhabited
and where little hazard to human life or health could result
2. Undue proliferation of memorial parks/ cemeteries in any municipality/city shall not be shall not be
allowed.
3. The number of cemeteries/memorial parks to be allowed within each municipality/city shall be
based on the needs or death rate in the city/municipality and future catchment areas as well.
LOCATIONIN MUNICIPALITIES/CITIES
WITH APPROVED CLUP OR ZONING ORDINANCE

1. Memorial parks shall be located in areas zoned for cemetery purposes

2. If no zone stipulated, the memorial park/cemetery shall only be allowed in
a. Areas zoned as open space, provided that:
i. Such use is not specifically restricted in the district zone
ii. Compatible with the proposed use in the zone
iii. The proposed project site is not within Strategic Agriculture and Fisheries
Development Zones (SAFDZ) as certified by the DA.
b. Areas zoned as agricultural, provided that the site is:
i. Not tenanted and not covered by operation land transfer and not located in areas
covered by the CARP as certified by the DAR
ii. Not prime agricultural land as certified by the DA); and
iii. Not irrigated as certified by the National Irrigation Administration (NIA)

IN CITIES/MUNICIPALITIES WITHOUT AN APPROVED CLUP OR ZONING ORDINANCE,

THE MEMORIAL PARK/CEMETERY SHALL BE ALLOWED IN:

1. An area adjacent to an existing cemetery/ memorial park: Provided, that the restrictions for
areas zoned as open space & agricultural (above) are met.
2. An area where the dominant land use within one hundred (100) meters from the periphery of the
proposed memorial park/cemetery is neither residential, commercial, industrial or institutional.
Provided, however, that the restrictions for agricultural lands are met.
3. An area deemed by the HLURB as appropriate and in accordance with the principles of Planned
Unit Development (PUD).

PHYSICAL SUITABILITY

1. The memorial park/cemetery shall not be allowed in environmentally critical areas as defined in
Proclamation No. 2146.
2. It must be located on ground where the water table is not higher than four and 4.50 meters
below the ground surface as certified by the National Water Resources Board (NWRB).
3. Accessibility – The site must be served by a road with a minimum width or right of way of not
less than 8.00 meters.
4. The right of way of major roads shall be increased as project size increases.
5. All relevant provisions of BP 344 (Accessibility Law) shall be observed.

DESIGN AND PLANNING CONSIDERATION

1. Memorial Parks must achieve flexibility in design and orderly layout to respond to the various
spatial requirements of burial and at the same time for economic land use and environmental
control.
 2. Land shall be judiciously allocated for the various requirements and amenities.
3. Suitable areas shall be allocated for the planting of trees, shrubs, plants and for other functional
and decorative elements such as monuments, sculptures, fountains and benches.

LAND ALLOCATION

No fixed ratio for saleable area

1. Owner/developer shall reserve the required areas for roads, pathways, parking and other
facilities and amenities.
2. For memorial parks, at least 50% of the saleable area shall be utilized for underground
interment in order to retain park-like character of the project.

BURIAL PLOT SIZES

1. GROUND INTERMENT – minimum size shall be 1.00 meter by 2.50 meters inside
dimensions.
2. TOMB (for cemeteries only) – minimum burial plot size shall be 1.60 meter by 3.00 meters
inside dimensions.
3. MAUSOLEUM – minimum plot size of 4.00 meters by 5.00 meters.

Provisions for ossuary and cinerarium shall meet the minimum dimensions for cineraria – which is 300mm
x 300mm x 6

Republic Act No. 9904

AN ACT PROVIDING FOR A MAGNA CARTA FOR HOMEOWNERS AND HOMEOWNERS’
ASSOCIATIONS, AND FOR OTHER PURPOSES

CHAPTER I - TITLE AND DECLARATION OF POLICY

Section 1.Title. – This Act shall be known as the "Magna Carta for Homeowners and Homeowners’
Associations".

Section 2.Declaration of Policy. - In fulfillment of the constitutional principles directing the State to
encourage, promote and respect nongovernmental, community - based and people’s organizations in
serving their legitimate collective interests in our participatory democracy, it is hereby declared the policy
of the State to uphold the rights of the people to form unions, associations, or societies, and to recognize
and promote the rights and the roles of homeowners as individuals and as members of the society and of
homeowners' associations. To this end, the State shall endeavor to make available resources and assistance
that will help them fulfill their roles In serving the needs and interests of their communities, in
complementing the efforts of local government units (LGUs) in providing vital and basic services to our
citizens, and in helping implement local and national government policies, programs, rules and ordinances
for the development of the nation.
Section 3.Definition of Terms. - For purposes of this Act, the following terms shall mean:

(a) "Accounting period" refers to the fiscal or calendar year adopted by a homeowners’
association in the recording and reporting of its fiscal transactions.

(b) "Association" refers to the homeowners’ association which is a nonstick, nonprofit

corporation registered with the Housing and Land Use Regulatory Board (HLURB), or one
previously registered with the Home Insurance Guarantee Corporation (now Home
Guaranty Corporation) or the Securities and Exchange Commission (SEC), organized by
owners or purchasers of a lot in a subdivision/village or other residential real property
located within the jurisdiction of the association; or awardees, usufructuaries, legal
occupants and/or lessees of a housing unit and/or lot in a government socialized or
economic housing or relocation project and other urban estates; or underprivileged and
homeless citizens as defined under existing laws in the process of being accredited as
usufructuaries or awardees of ownership rights under the Community Mortgage Program
(CMP), Land Tenure Assistance Program (LTAP) and other similar programs in relation to
a socialized housing project actually being Implemented by the national government or the
LGU.

(c) "Association member" refers to a homeowner who is a member of the association where
his/her housing unit or lot is situated and those defined in the articles of incorporation and
bylaws of the association.

(d) "Basic community services and facilities" refer to services and facilities that redound to
the benefit of all homeowners and from which, by reason of practicality, no homeowner
may be excluded such as, but not limited to: security; street and vicinity lights; maintenance,
repairs and cleaning of streets; garbage collection and disposal; and other similar services
and facilities.

(e) "Board" refers to the board of directors or trustees of the association which has primary
authority to manage the affairs of the association.

(f) "Common areas" refer to property owned or otherwise maintained, repaired or

administered in whole or in part by the association including, but not limited to, roads,
parks, playgrounds and open spaces as provided in Presidential Decree No. 1216.

(g) "Common expense" refers to costs incurred by the association to exercise any of the
powers provided for in this Act.

(h) "Economic housing" refers to a type of housing project with lower interest rates and
longer amortization periods provided to moderately low - income families, as defined under
existing laws, rules and regulations.

(i) "Governing document" refers to the articles of incorporation, bylaws, conditions, rules
and regulations of the association, or other written instrument by which the association has
the authority to exercise any of the powers provided for in this Act.
 (j) "Homeowner" refers to any of the following;

(1) An owner or purchaser of a lot in a subdivision/village;

(2) An awardee, usufructuary, or legal occupant of a unit, house and/or lot in a

government socialized or economic housing or relocation project and other urban
estates; or

(3) An informal settler in the process of being accredited as beneficiary or awardee

of ownership rights under the CMP, LTAP, and other similar programs.

(k) "Residential real property" refers to any real property, the use of which is limited by law
to primarily residential purposes.

(l) "Simple majority" refers to fifty percent (50%) plus one (1) of the total number of
association members.

(m) "Socialized housing" refers to housing programs and projects covering houses and lots
or home lots 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 other benefits in
accordance with the provisions of Republic Act No. 7279, otherwise known as the Urban
Development and Housing Act of 1992 (UDHA).

(n) "Subdivision/Village" refers to a tract or parcel of land partitioned into individual lots,
with or without improvements thereon, primarily for residential purposes.

Section 4.Registration with the HLURB. - Every association of homeowners shall be required to register
with the HLURB. This registration shall serve to grant juridical personality to all such associations that
have not previously acquired the same by operation of the General Corporation Law or by any other
general law.

The procedure for registration shall be specifically provided for in the implementing rules and regulations
to be promulgated by the HLURB pursuant to Section 28 of this Act.1avvphi1 Such procedure shall
provide for an adjudicatory mechanism that will be observed in the event there is a dispute involving two
(2) or more associations established within the same subdivision/village), community/area, or housing
project seeking registration. In resolving this type of dispute, the HLURB shall take into account the date
each association was legally established, the date of submission of its application for registration, the
number of members, and other similar factors.

The existence of associations previously registered with the Home Insurance Guarantee Corporation or the
SEC shall be respected, and the said associations shall not be charged a penalty when they register with the
HLURB after this Act takes effect.
CHAPTER II - HOMEOWNERS

Section 5.Rights and Duties of Every Homeowner. - Every homeowner has the right to enjoy the basic
community services and facilities: Provided, That he/she pays the necessary fees and other pertinent
charges.

Section 6.Qualification of a Member. - A homeowner as defined under this Act shall be qualified to be a
member of an association: Provided, however, That a lessee, usufructuary, or legal occupant shall have the
right of a homeowner as set forth under this Act upon procurement of a written consent or authorization
from the owner of the lot or housing unit.

Until such consent or authorization is revoked in writing, the owner of the lot or housing unit is deemed to
have waived his/her rights enumerated under Section 7 of this Act, except subsection (b) of the same
section which can be simultaneously enjoyed by both the owner and the lessee.

For purposes of this Act, the lessee authorized in accordance with this sect shall qualify as a member with
all the rights enumerated in this Act, including the duties and obligations enumerated under Sections 7, 8
and 9 hereof: Provided, further, That lessees in government socialized housing projects or urban estates
and those in communities of underprivileged and homeless citizens covered under the term under Section 3
of this Act will be considered as homeowners for the purpose of qualifying as a member of a homeowners'
association without need of such written consent or authorization.

Section 7.Rights of a Member. - An association member has full rights:

(a) to avail of and enjoy all basic community services and the use of common areas and
facilities;

(b) to inspect association books and records during office hours and to be provided upon
request with annual reports, including financial statements;

(c) to participate, vote and be eligible for any elective or appointive office of the association
subject to the qualifications as provided for in the bylaws;

(d) to demand and promptly receive deposits required by the association as soon as the
condition for the deposit has been complied with or the period has expired;

(e) to participate in association meetings, elections and referenda, as long as his/her bona
fide membership subsists; and

(f) to enjoy all other rights as may be provided for in the association bylaws.

Section 8.Duties of a Member. - A member shall have the following duties:

(a) to pay membership fees, dues and special assessments;

(b) to attend meetings of the association; and

 (c) to support and participate In projects and activities of the association.

Section 9.Delinquent Member. - The bylaws shall provide for guidelines and procedures in determining
who is a delinquent member, or a member not in good standing, and to prescribe the administrative
sanctions to be imposed on such member. The right to due process shall be observed in cases where
administrative sanctions are imposed on a delinquent member.

CHAPTER III - HOMEOWNERS’ ASSOCIATION

Section 10.Rights and Powers of the Association. - An association shall have the following rights and shall
exercise the following powers:

(a) Subject to consultation and with the approval of a simple majority of the members, adopt
and amend the articles of incorporation and bylaws, rules and regulations, pursuant to
existing laws and regulations;

(b) In behalf of its members, institute, defend, or intervene in litigation and/or administrative
proceedings affecting the welfare of the association and the subdivision/village as a whole,
excluding, however, disputes that are not the responsibility of the association;

(c) Regulate the use, maintenance, repair, replacement and modification of common areas
and cause additional improvements to be made part of the common areas: Provided, That
the aforementioned do not contradict the provisions of the approved subdivision plan;

(d) Regulate access to, or passage through the subdivision/village roads for purposes of
preserving privacy, tranquility, internal security, and safety and traffic order: Provided,
That: (1) public consultations are held; (2) existing laws and regulations are met; (3) the
authority of the concerned government agencies or units are obtained; and (4) the
appropriate and necessary memoranda of agreement are executed among the concerned
parties;

(e) Hire, discharge or contract managing agents and other employees, agents and
independent contractors to ensure the full functioning and operation of the association;

(I) Subject to consultation with and the approval of a simple majority of the association
members, acquire, hold, encumber and convey in its own name any right, title to or interest
in real or personal property: Provided, That such approval of a simple majority of the
association members shall not be required for the acquisition, holding, encumbrance and
conveyance of personal properties in amounts not exceeding ten percent (10%) of the
association’s cash holdings for its use in the course of its normal operations;

(g) Ensure the availability of quality water services at a reasonable price and at its option,
administer and manage the waterworks system of the subdivision;
 (h) Upon consultation, grant easements, leases, concessions and authority to use common
areas and petition for or consent to the vacation of streets and alleys: Provided, That the said
grant of easements, leases, concessions and authority shall not be applicable to access roads,
main interconnecting roads, alleys and sidewalks within the subdivision;

(i) Impose or collect reasonable fees for the use of open spaces, facilities, and services of the
association to defray necessary operational expenses, subject to the limitations and
conditions imposed under the law, the regulations of the board and the association’s bylaws;

(j) Cause compliance with regard to height regulations, easements, use of homes, buildings,
edifices, or structures that may be built within the subdivision, in accordance with the
National Building Code, zoning laws, HLURB rules and regulations, existing local
ordinances, and existing deeds of restriction;

(k) Subject to consultation and with the approval of a simple majority of the association
members, allow the establishment of certain institutions such as, but not limited to, schools,
hospitals, markets, grocery stores and other similar establishments that will necessarily
affect the character of the subdivision/village in terms of traffic generation, and/or opening
the area to outsiders which may result in the loss of privacy, security, safety, and tranquility
to its residents, in accordance with the National Building Code, zoning laws, existing local
ordinances, HLURB rules and regulations, and existing jurisprudence: Provided, That such
prior approval shall not be necessary for the establishment of sari - sari stores, home
industries and similar small - scale business enterprises within the subdivision/village
classified as socialized housing;

(l) Suspend privileges of and services to and/or impose sanctions upon its members for
violations and/or noncompliance with the association's bylaws, and rules and regulations;

(m) Petition for the creation of a separate barangay, independently or together with
neighboring subdivisions: Provided, That all the requirements of the Local Government
Code of 1991 are met; and

(n) Exercise any other powers conferred by the bylaws and the HLURB necessary for the
governance and operation of the association.

Section 11.Board of Directors or Trustees. - The bylaws of the association shall provide for the
qualifications and number of the directors or trustees that will comprise the board.

Section 12.Duties and Responsibilities of the Board. In addition to the duties and responsibilities stated in
the bylaws of the association, the board shall have the following duties and responsibilities:

(a) Regularly maintain an accounting system using generally accepted accounting

principles, and keep books of accounts, which shall be open for inspection to any
homeowner and duly authorized representatives of government agencies upon request,
during reasonable hours, on business days;
 (b) Collect the fees, dues and assessments that may be provided for in the bylaws and
approved by a majority of the members;

(c) Collect reasonable charges for assessments, and after due notice and hearing by the
board in accordance with the procedures as provided in the bylaws, and rules and
regulations adopted by the board, charge reasonable fines for late payments and for violation
of the bylaws, rules, and regulations of the association, in accordance with a previously
established schedule adopted by the board and furnished to the homeowners;

(d) Propose measures to raise funds and the utilization of such funds and submit the same
for consideration of the members of the association;

(e) Undergo a free orientation by the HLURB or any other competent agency deputized by it
on how to conduct meetings, preparation of minutes, handling of accounts, laws and
pertinent rules and regulations within thirty (30) days after election or appointment;

(f) Discharge the duties and responsibilities provided for in the association’s bylaws; and

(g) Exercise such other powers as may be necessary and proper in accordance with this Act
and for the accomplishment of the purposes for which the association was organized.

The board shall act in all instances on behalf of the association, except to amend the articles of
incorporation, to dissolve the association, to elect members of the board or to determine the qualifications,
powers and duties, or terms of office of the board, and other instances that require the vote or approval of
the members themselves. In the performance of their duties, the officers and members of the board shall
exercise the degree of care and loyalty required by such position.

Section 13.Removal of a Director or Trustee. - Through a signed petition of a simple majority of the
association members in good standing, subject to a verification and validation by the HLURB, a
director/trustee may be removed for causes provided in the bylaws of the association: Provided, That if a
majority of the members of the board is removed, it shall be considered a dissolution of the entire board, in
which case, Section 14 hereof shall govern.

Within sixty (60) days after the removal of a director or trustee, an election shall be called by the remainder
of the board for the purpose of determining who shall hold office for the unexpired term of the removed
director/trustee.

Section 14.Dissolution of the Board. - Through a signed petition of two - thirds (2/3) of the association
members subject to a verification and validation by the HLURB, the board of the association may be
dissolved for causes provided in the bylaws of the association.

Within sixty (60) days from the above dissolution, an election for a new board shall be called and
conducted by the HLURB for the purpose of determining who shall hold office for the unexpired term of
the dissolved board.
Until the new board members shall have been elected and qualified, the HLURB shall designate an interim
board: Provided, That such board shall be composed of association members in good standing: Provided,
further, That such interim board members shall not be eligible to run in the election called for the purpose
of replacing the members of the dissolved board.

Section 15.Association Bylaws. - The bylaws of the association shall be adopted by a simple majority of
the members of the association. Consistent with the provisions of this Act, it shall provide for:

(a) The rights, duties and obligations of members;

(b) The circumstances under which membership is acquired, maintained, and lost;

(c) The schedule, venue, and manner of conducting the regular, special, and emergency
meetings of the general membership, the required quorum, and allowable proxies in such
meetings;

(d) The number, qualifications, powers and duties, terms of office, manner of electing and
removing the board and the filling of vacancies in the board: Provided, That the term of
office of the members of the board shall not exceed two (2) years;

(e) The qualifications, positions, duties, election or appointment, and compensation of other
officers and employees of the association: Provided, That the term of office of the other
officers shall not exceed two (2) years: Provided, further, That no officer of the association
holding a rank of director or trustee shall likewise be entitled to any compensation;

(f) The schedule, venue, and manner of conducting the regular, special, and emergency
meetings of the board, the required quorum, and allowable proxies in such meetings;

(g) Such powers that the board may delegate to a managing agent, if any, or to other
persons;

(h) Which of its officers may prepare, execute, certify and record amendments to the
governing documents on behalf of the association;

(i) The grounds and procedure for removal of director or trustee, and the manner of filling
up vacancies in the board, consistent with Section 13 of this Act;

(j) The grounds and procedure for dissolution of the board, and the manner of reconstituting
the board, consistent with Sections 13 and 14 of this Act;

(k) The actions for limiting, broadening or denying the right to vote, and the extent thereof;

(I) The designation of the presiding officer at meetings of directors or trustees and members;

(m) The time for holding the regular election of directors or trustees and the mode or
manner of giving notice thereof;
 (n) The creation of election, grievance and audit committees, and such other committees
which the association may deem necessary; as well as a conciliation or mediation
mechanism for the amicable settlement of disputes among members, directors or trustees,
officers and committee members of the association;

(o) The dues, fees, and special assessments to be imposed on a regular basis, and the manner
in which the same may be imposed and/or increased;

(p) The method of adopting, amending, repealing and abrogating the bylaws;

(q) The list of acts constituting a violation by its officers and the corresponding penalties
therefor;

(r) The penalties for violation of the bylaws; and

(s) Such other matters necessary for the proper or convenient transaction of its corporate
business and affairs.

Section 16.Proxies. - Association members may vote in person or by proxy in all meetings of members.
Proxies shall be in writing, signed by the member and filed before the scheduled meeting with the
association secretary. Unless otherwise provided in the proxy, it shall be valid only for the meeting for
which it is intended, No proxy shall be valid and effective for a period longer than three (3) years at anyone
time unless earlier revoked by the member.

Section 17.Financial and Other Records. - The homeowners’ association is enjoined to observe the
following, with regard to its funds, financial and other records:

(a) The association or its managing agent shall keep financial and other records sufficiently
detailed to enable the association to fully declare to each member the true statement of its
financial status. All financial and other records of the association including, but not limited
to, checks, bank records and invoices, in whatever form these are kept, are the property of
the association. Each association’s managing agent shall turn over all original books and
records to the association immediately upon termination of the management relationship
with the association, or upon such other demand as is made by the board. An association’s
managing agent is entitled to keep association records. All records which the managing
agent has turned over to the association shall be made reasonably available for the
examination and copying by the managing agent;

(b) All records involving the affairs of the association shall be available for examination by
all owners, holders of mortgages on the lots, and their respective authorized agents upon
reasonable advanced notice, during normal working hours at the office of the association:
Provided, That holders of mortgages on lots may have access to the information about the
property held in mortgage with the written consent of the registered owner;

(c) A financial statement of the association shall be prepared annually by an auditor, the
treasurer and/or an independent certified public accountant within ninety (90) days from the
 end of the accounting period to be posted in the association office, bulletin boards, or other
conspicuous places within the subdivision/village, and to be submitted to the HLURB; and

(d) The funds of the association shall be kept in accounts in the name of the association and
shall not be joined with the funds of any other association, or any person responsible for the
custody of such funds.

Section 18.Relationship with LGUs. - Homeowners' associations shall complement, support and strengthen
LGUs in providing vital services to their members and help implement local government policies,
programs, ordinances, and rules.

Associations are encouraged to actively cooperate with LGUs in furtherance of their common goals and
activities for the benefit of the residents of the subdivisions/villages and their environs.

Where the LGUs lack resources to provide for basic services, the associations shall endeavor to tap the
means to provide for the same. In recognition of the associations’ efforts to assist the LGUs III providing
such basic services, association dues and income derived from rentals of their facilities shall be tax -
exempt: Provided, That such income and dues shall be used for the cleanliness, safety, security and other
basic services needed by the members, including the maintenance of the facilities of their respective
subdivisions or villages.

LGUs shall, upon due notice, hold public consultations with the members of the affected associations,
especially their officers and directors, where proposed rules, zoning and other ordinances, projects and/or
programs affecting their jurisdiction and surrounding vicinity are to be implemented prior to the effectivity
or implementation of such rules, zoning, ordinances, projects or programs: Provided, That in cases of zonal
reclassification, the approval of a simple majority of homeowners shall be required.

Such public consultations shall conform to the manner as specified in Rule XI, Article 54 of the
implementing rules and regulations of Republic Act No. 7160, otherwise known as the Local Government
Code of 1991.

Section 19.Relationship with National Government Agencies. - The associations shall complement, support
and strengthen the efforts of the national government agencies in providing vital services to their members
and help implement the national government policies and programs.

Associations are encouraged to actively cooperate with national government agencies in the furtherance of
their common goals and activities for the benefit of the residents of the subdivisions and its environs.
National government agencies shall consult the associations where proposed rules, projects and/or
programs may affect their welfare.

CHAPTER IV - DUTIES AND RESPONSlBILlTIES OF THE HLURB

Section 20.Duties and Responsibilities of the HLURB. - In addition to the powers, authorities and
responsibilities vested in it by Republic Act No. 8763, Presidential Decree No. 902 - A, Batas Pambansa
Big. 68 and Executive Order No. 535, Series of 1981, as amended, the HLURB shall:
 (a) Regularly conduct free orientation for officers of homeowners’ associations or deputize
another competent agency to conduct the orientation;

(b) Formulate and publish a Code of Ethics and Ethical Standards for board members
detailing prohibited conflicts of interest;

(c) Register all associations, federations, confederations or umbrella organizations of the

associations;

(d) Hear and decide inter - association and/or inter - association controversies and/or
conflicts, without prejudice to filing civil and criminal cases by the parties concerned before
the regular courts: Provided, That all decisions of the HLURB are appealable directly to the
Court of Appeals;

(e) Formulate the rules or manner of verification and validation of petitions for the removal
of director(s) or trustee(s) of the association or dissolution of the board pursuant to Sections
13 and 14 of this Act;

(f) Exercise the same powers over federations, confederations or umbrella organizations of
the associations;

(g) Formulate, in consultation with the representatives of associations, federations,

confederations or umbrella organizations of the associations, standard nomenclatures to be
used for the associations' books of accounts, and a standard articles of incorporation and
bylaws for homeowners' association for reference purposes;

(h) Formulate, in consultation with the representatives of associations, federations,

confederations or umbrella organizations of the associations, the guidelines in regulating the
kinds of contributions and fees that may be charged and/or collected by associations; and

(i) Call upon the Philippine National Police, other law enforcement agencies, and other
instrumentalities of the government, if necessary, for the enforcement of its functions.

Section 21.Additional Positions and Personnel for the HLURB. - For purposes of this Act, the HLURB
shall, upon its discretion, create positions and enlist additional personnel to carry out its mandate.

CHAPTER V - FINAL PROVISIONS

Section 22.Prohibited Acts. - It shall be prohibited for any person:

(a) To compel a homeowner to join the association, without prejudice to the provisions of
the deed of restrictions, its extensions or renewals as approved by the majority vote of the
members or as annotated on the title of the property; the contract for the purchase of a lot in
the subdivision project; or an award under a CMP project or a similar tenurial arrangement;
 (b) To deprive any homeowner of his/her right to avail of or enjoy basic community services
and facilities where he/she has paid the dues, charges, and other fees for such services;

(c) To prevent any homeowner who has paid the required fees and charges from reasonably
exercising his/her right to inspect association books and records;

(d) To prevent any member in good standing from participating in association meetings,
elections and referenda;

(e) To deny any member due process in the imposition of administrative sanctions;

(f) To exercise rights and powers as stated m Section 10 in violation of the required
consultation and approval of the required number of homeowners or members;

(g) To unreasonably fail to provide basic community services and facilities and maintain,
repair, replace, or modify such facilities;

(h) To unreasonably fail to comply with Section 17 of this Act; or

(i) To violate any other provision of this Act.

Section 23.Penalties and Sanctions. - Any person who, intentionally or by gross negligence, violates any
provision of this Act, fails to perform his/her functions under this Act and/or violates the rights of the
members, shall be punished with a fine of not less than Five thousand pesos (Php5, 000.00) but not more
than Fifty thousand pesos

(Php50, 000.00) and permanent disqualification from being elected or appointed as member of the board,
officer or employee of the association, without prejudice to being charged before a regular court for
violations of the provisions of the Revised Penal Code, Civil Code and other pertinent laws.

If the violation is committed by the association, the members, officers, directors or trustees of the
association who have actually participated in, authorized, or ratified the prohibited act shall be held liable.

If the violation is committed by the employees and agents who acted in gross violation of the provisions of
this Act, the officers, directors or trustees, or incorporators of the association shall be jointly and severally
liable with the offending employees, agents, and the association.1avvphi1

Section 24.Review of Association's Bylaws. - In order to comply with the provisions of this Act, the
homeowners' association shall, within six (6) months from the effectivity of this Act, conduct a review of
its bylaws, draft its own rules of procedure to be incorporated in the bylaws and conduct a plebiscite for the
approval of the members of the association. A simple majority shall be used to determine the approval of
the bylaws.

Section 25.Appropriations. - The amounts necessary for the implementation of this Act and for carrying
out the additional functions and responsibilities of the HLURB shall be included in the annual General
Appropriations Act.
Section 26.Separability Clause. - If any provision of this Act is declared invalid or unconstitutional, the
remainder of the Act shall remain valid and subsisting.

Section 27.Repealing Clause. - All other issuances, laws, decrees, orders, rules and regulations, or parts
thereof inconsistent with this Act are hereby repealed or modified accordingly. Section 28.Implementing
Rules and Regulations. - The HLURB shall formulate and promulgate, in consultation with concerned
sectors, rules and regulations necessary to implement the provisions of this Act within SIX (6) months of
its effectivity.

No rule or regulation shall be issued which tends to undermine the organizational and territorial integrity of
any association.

Section 29.Effectivity. - This Act shall take effect fifteen (15) days following Its publication ill the Official
Gazette or III at least two (2) national newspapers of general circulation.

This Act which is a consolidation of Senate Bill No. 3106 and House Bill No. 50 was finally passed by the
Senate and the House of Representatives on October 13, 2009.

Republic Act No. 7279

AN ACT TO PROVIDE FOR A COMPREHENSIVE AND CONTINUING URBAN
DEVELOPMENT AND HOUSING PROGRAM, ESTABLISH THE MECHANISM FOR ITS
IMPLEMENTATION, AND FOR OTHER PURPOSES

ARTICLE I - TITLE, POLICY, PROGRAM AND DEFINITION OF TERMS

Section 1. Title. – This Act shall be known as the “Urban Development and Housing Act of 1992.”

Section 2. Declaration of State Policy and Program Objectives. It shall be the policy of the State to
undertake, in cooperation with private sector, a comprehensive and continuing Urban Development and
Housing Program, hereinafter referred to as the Program, which shall:

a) Uplift the conditions of the underprivileged and homeless citizens in urban areas and in resettlements
areas by making available to them decent housing at affordable cost, basic services, and employment
opportunities;

b) Provide for the rational use and development of urban land in order to bring about the following:

(1) Equitable utilization of residential lands in urban and urbanizable areas with particular attention to the
needs and requirements of the underprivileged and homeless citizens and not merely on the basis of market
forces;
(2) Optimization of the use and productivity of land and urban resources;

(3) Development of urban areas conducive to commercials and industrial activities which can generate
more economic opportunities for the people;

(4) Reduction in urban dysfunctions, particularly those that adversely affect public health, safety and
ecology;and

(5) Access to land and housing by the underprivileged and homeless citizens.

c) Adopt workable policies to regulate and direct urban growth and expansion towards a dispersed urban
net and more balanced urban-rural interdependence;

d) Provide for an equitable land tenure system that shall guarantee security of tenure to Program
beneficiaries but shall respect the rights of small property owners and ensure the payment of just
compensation;

e) Encourage more effective people’s participation in the urban development process; and

f) Improved the capability of local government units in undertaking urban development and housing
programs and projects.

Section 3. Definition of Terms for Purposes of this Act.

a) “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;

b) “Areas for priority development” refers to those areas declared as such under existing statutes and
pertinent executive issuances;

c) “Blighted areas” refers to the areas where the structures are dilapidated, obsolete and unsanitary, tending
to depreciate the value of the land and prevent normal development and use of the area;

d) “Consultation” refers to the constitutionally mandated process whereby the public, on their own or
through people’s organizations is provided an opportunity to be heard and to participate in the decision-
making process on matters involving the protection and promotion of its legitimate collective interests,
which shall include appropriate documentation and feedback mechanisms;

e) “Idle lands” refers to non-agricultural lands in urban and urbanizable areas on which no improvements,
as herein defined, have been made by the owner, as certified by the city,

municipal or provincial assessor;

f) “Improvements” refers to all types of buildings and residential units, walls, fences, structures of
constructions of all kinds of a fixed character or which are adhered to the soil but shall not include trees,
plants and growing fruits, and other fixtures that are mere superimpositions on the land, and the value of
improvements shall not be less than (50%) of the assessed value of the property;

g) “Joint venture” refers to the commitment or agreement of the two (2) or more persons to carry out a
specific or single business enterprise for their mutual benefit, for which purpose they combined their funds,
lands resources, facilities and services;

h) “Land assembly or consolidation” refers to the acquisition of lots of varying ownership through
purchase or expropriation for the purpose of planned and rational development and socialized housing
programs without individual property boundary restrictions;

i) “Land banking” refers to the acquisition of land at values based on existing use in advance of actual need
to promote planned development and socialized housing programs;

j) “Land swapping” refers to the process of land acquisition by exchanging land for another piece of land of
equal value, for shares of stock in a government or quasi-government corporation whose book value is of
equal value to the land being exchanged, for the purpose of planned and rational development and
provision for socialized housing where land values are determined based on land classification, market
value and assessed value taken from existing tax declarations: Provided, That more valuable lands owned
by private persons may be exchanged with less valuable lands to carry out the objectives of this Act;

k) “Land use plan” refers to the rational approach of allocating available land resources as equitably as
possible among competing user groups and for different functions consistent with the development plan of
the area and the Program under this Act;

l) “On –site development” refers to the process of upgrading and rehabilitation of blighted and slum urban
areas with a view of minimizing displacement of dwellers in said areas, and with provisions for basic
services as provided for in Section 21 hereof;

m) “Professional squatters” refers to individuals or groups who occupy lands without the express consent
of the landowner and who have sufficient income for legitimate housing. The term shall also apply to
persons who have previously been awarded homelots or housing units by the Government but who sold,
leased or transferred the same to settle illegally in the same place or in another urban area, and non-bona
fide occupants and intruders of lands reserved for socialized housing. The term shall not apply to
individuals or groups who simply rent land and housing from professional squatters or squatting
syndicates;

n) “Resettlement areas” refers to areas identified by the appropriate national agency or by the local
government unit with respect to areas within its jurisdiction, which shall be used for the relocation of the
underprivileged and homeless citizens;

o) “Security of tenure” refers to the degree of protection afforded to qualified Program beneficiaries against
infringement or unjust, reasonable and arbitrary eviction or disposition, by virtue of the right of ownership,
lease agreement, usufruct and other contractual arrangements;

p) “Slum improvement and Resettlement Program or SIR” refers to the program of the National Housing
Authority of upgrading and Improving blighted area outside of Metro Manila pursuant to existing statutes
and pertinent executive issuances;

q) “Small property owners” refers to those whose only real property consists of residential lands not
exceeding three hundred square meters (300 sq. m.) in highly urbanized cities and eight hundred square
meters (800 sq. m.) in other urban areas;

r) “Socialized housing” refers to housing programs and projects covering houses and lots or 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 this Act;

s) “Squatting syndicates” refers to groups of persons engaged in the business of squatter housing for profit
or gain;

t) “Underprivileged and homeless citizens” refers to the beneficiaries of this Act and to individuals or
families residing in urban and urbanizable areas whose income or combined household income falls within
the poverty threshold as defined by the National Economic and Development Authority and who do not
own housing facilities. This shall include those who lived in makeshift dwelling units and do not enjoy
security of tenure;

u) “Unregistered or abandoned lands” refers to lands in urban and urbanizable areas which are not
registered with the Register of Deeds, or with the city or municipal assessor’s office concerned, or which
are uninhabited by the owner and have not been developed or devoted for any useful purpose, or appears
unutilized for a period of three (3) consecutive years immediately prior to the issuance and receipt or
publication of notice of acquisition by the Government as provided under this Act. It does not include land
which has been abandoned by reason of force majeure or any other fortuitous event: Provided, That prior to
such event, such land was previously used for some useful or economic purpose;

v) “Urban areas” refers to all cities regardless of their population density and to municipalities with a
population density of at least five hundred (500) persons per square kilometer;

w) “Urbanizable areas” refers to sites and lands which, considering present characteristics and prevailing
conditions, display marked and great potential of becoming urban areas within the period of five (5) years;
and

x) “Zonal Improvement Program or ZIP” refers to the program of the National Housing Authority of
upgrading and improving blighted squatter areas within the cities and municipalities of Metro Manila
pursuant to existing statutes and pertinent executive issuances.

ARTICLE II - COVERAGE AND EXEMPTIONS

Section 4. Coverage - The program shall cover all lands in urban and urbanizable areas, including existing
areas for priority development, zonal improvement sites, slum improvement and resettlements sites, and in
other areas that may be identified by the local government units as suitable for socialized housing.
Section 5. Exemptions – The following lands shall be exempt from the coverage of this Act:

a) Those included in the coverage of Republic Act No. 6657, otherwise known as the comprehensive
Agrarian Reform Law;

b) Those actually used for national defense and security of the state;

c) Those used, reserved or otherwise set aside for government offices, facilities and other installations,
whether owned by the National Government, its agencies and instrumentalities, including government-
owned or-controlled corporations, or by the local government units: Provided, however, That the lands
herein mentioned, or portions thereof, which have not been used for the purpose for which they have been
reserved or set aside for the past ten (10) years from the effectivity of this Act, shall be covered by this Act;

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

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

The exemptions herein provided shall not apply when the use or purpose of the abovementioned lands has
ceased to exist.

ARTICLE III - NATIONAL URBAN DEVELOPMENT AND HOUSING FRAMEWORK

Section 6. Framework for Rational Development. - There shall be a National Urban Development and
Housing Framework to be formulated by the Housing and Land Use Regulatory Board under the direction
of the Housing and Urban Development Coordinating Council in coordination with all local government
units and other concerned public and private sectors within one (1) year from the effectivity of this Act.

The Framework shall refer to the comprehensive plan for urban and urbanizable areas aimed at achieving
the objectives of the Program. In the formulation of the framework, a review and rationalization of existing
town and land use plans, housing programs, and all other projects and activities of government agencies
and the private sector which may substantially affect urban land use patterns, transportation and public
utilities, infrastructure, environment and population movements shall be undertaken with the concurrence
of the local government units concerned.

ARTICLE IV - LAND USE, INVENTORY, ACQUISITION AND DISPOSITION

Section 7. Inventory of Lands.– Within one (1) year from the effectivity of this Act, all city and municipal
governments shall conduct an inventory of all lands and improvements thereon within there respective
localities. The inventory shall include the following:

a) Residential lands;
b) Government-owned lands, whether owned by the National Government or any of its subdivisions,
instrumentalities, or agencies, including government-owned or -controlled corporations and their
subsidiaries;

c) Unregistered or abandoned and idle lands; and

d) Other lands.

In conducting the inventory, the local government units concerned, in coordination with the Housing and
Land Use Regulatory Board and with the assistance of the appropriate government agencies, shall, indicate
the type of land use and the degree of land utilization, and other data or information necessary to carry out
the purposes of this Act.

For planning purposes, the Housing and Urban Development Coordinating Council shall be furnished by
each local government unit a copy of its inventory which shall be updated every three (3) years.

Section 8. Identification of Sites for Socialized Housing. - After the inventory, the local government units,
in coordination with the National Housing Authority, the Housing and Land Use Regulatory Board, the
National Mapping Resource Information Authority, and the Land Management Bureau, shall identify lands
for socialized housing and resettlement areas for the immediate and future needs of the underprivileged and
homeless in the urban areas, taking into consideration the degree of availability of basic services and
facilities, their accessibility and proximity to job sites and other economic opportunities, and the actual
number of registered beneficiaries.

Government-owned lands under paragraph (b) of the preceding section which have not been used for the
purpose for which they have been reserved or set aside for the past ten (10) years from the effectivity of
this Act and identified as suitable for socialized housing, shall immediately be transferred to the National
Housing Authority subject to the approval of the President of the Philippines or by the local government
unit concerned, as the case may be, for proper disposition in accordance with this Act.

Section 9. Priorities in the Acquisition of Land. – Lands for socialized housing shall be acquired in the
following order:

a) Those owned by the Government or any of its subdivisions, instrumentalities, or agencies, including
government-owned or controlled corporations and their subsidiaries;

b) Alienable lands of the public domain;

c) Unregistered or abandoned and idle lands;

d) Those within the declared Areas for Priority Development, Zonal Improvement Program sites, and Slum
Improvement and Resettlement Program sites which have not yet been acquired;

e) Bagong Lipunan Improvement of Sites and services o BLISS sites which have not yet been acquired;
and
f) Privately-owned lands.

Where on-site development is found more practicable and advantageous to the beneficiaries, the priorities
mentioned in this section shall not apply. The Local Government Units shall give budgetary priority to on-
site development of government lands.

Section 10. Modes of Land Acquisition. - The modes of acquiring lands for purposes of this Act shall
include, among others, community mortgage, land swapping, land assembly or consolidation, land banking,
donation to the Government, joint-venture agreement, negotiated purchase and expropriation: Provided,
However, That expropriation shall be resorted to only when other modes of acquisition have been
exhausted. Provided, further, That where expropriation is resorted to, parcels of land owned by small
property owners shall be exempted for purposes of this Act: Provided, finally, That abandoned property, as
herein defined, shall be reverted and escheated to the State in a proceeding analogous to the procedure laid
down in Rule 91 of the Rules of Court.

For the purpose of socialized housing, government-owned and foreclosed properties shall be acquired by
the local government units, or by the National Housing Authority primarily through negotiated purchase:
Provided, That qualified beneficiaries who are actual occupants of the land shall be given the right of first
refusal.

Section 11. Expropriation of Idle Lands. -All idle lands in urban and urbanizable areas, as defined and
identified in accordance with this Act, shall be expropriated and shall form part of the public domain.
These lands shall be disposed of or utilized by the Government for such purposes that conform with their
land use plans. Expropriation proceedings shall be instituted if, after the lapse of one (1) year following
receipt of notice of acquisition, the owner fails to introduce improvements as defined in Section 3 (f)
hereof, except in the case of force majeure and other fortuitous events. Exempted from this provision,
however, are residential lands owned by small property owners or those the ownership of which is subject
of a pending litigation.

Section 12. Disposition of Lands for Socialized Housing. – The National Housing Authority, with respect
to lands belonging to the National Government, and the local government units with respect to other lands
within their respective localities, shall coordinate with each other to formulate and make available various
alternative schemes for that disposition of lands to the beneficiaries of the Program. This schemes shall not
be limited to those involving transfer of ownership in fee simple but shall include lease, with option to
purchase, usufruct or such other variations as the local government units or the National Housing Authority
may deem most expedient in carrying out the purposes of this Act.

Consistent with this provision, a scheme for public rental housing may be adopted.

Section 13. Valuation of Lands Socialized Housing. – Equitable land valuation guidelines for socialized
housing shall be set by the Department of Finance on the basis of the market value reflected in the zonal
valuation, or in its absence, on the latest real property tax declaration.

For sites already occupied by qualified Program beneficiaries, the Department of Finance shall factor into
the valuation the blighted status of the land as certified by the local government unit or the National
Housing Authority.
Section14. Limitations on the Disposition of Lands for Socialized Housing, No Land for socialized
housing, including improvements or rights thereon, shall be sold, alienated, conveyed, encumbered or
leased by any beneficiary of this Program 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 null and void. He shall also lose his right to the land, forfeit the total amortization paid
thereon, and shall be barred from the benefits under this Act for a period of ten (10) years from the date of
violation.

In the event the beneficiary dies before full ownership of the land is vested on him, transfer to his heirs
shall take place only upon their assumption of his outstanding obligations. In case of failure by the heirs to
assume such obligations, the land shall revert to the Government for disposition in accordance with this
Act.

ARTICLE V - SOCIALIZED HOUSING

Section 15. Policy. – Socialized housing, as defined in Section 3 hereof, shall be the primary strategy in
providing shelter for the underprivileged and homeless. However, if the tenurial arrangement in a particular
socialized housing program is in the nature of leasehold or usufruct, the same shall be transitory and the
beneficiaries must be encouraged to become independent from the Program within a given period of time,
to be determined by the implementing agency concerned.

Section 16. Eligibility Criteria for Socialized Housing Program Beneficiaries. – To qualify for the
socialized housing program, a beneficiary:

a) Must be a Filipino citizen;

b) Must be an underprivileged and homeless citizen, as defined in Section 3 of this Act;

c) Must not own any real property whether in the urban or rural areas; and

d) Must not be a professional squatter or a member of squatting syndicates.

Section 17. Registration of Socialized Housing Beneficiaries. - The Housing and Urban Development
Coordinating Council, in coordination with the local government units, shall design a system for the
registration of qualified Program beneficiaries in accordance with the Framework. The local government
units, within one (1) year from the effectivity of this Act, shall identify and register all beneficiaries within
their respective localities.

Section 18. Balanced Housing Development. – The Program shall include a system to be specified in the
Framework plan whereby developers of proposed subdivision projects shall be required to develop an area
for socialized housing equivalent to at least twenty percent (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, and in accordance with the standard set by the Housing and Land Use Regulatory Board and other
existing laws. The balanced housing development as herein required may also be complied with by the
developers concerned in any of the following manner:

a) Development of new settlement;

b) Slum upgrading or renewal of areas for priority development either through zonal improvement
programs or slum improvement and resettlement programs;

c) Joint-venture projects with either the local government units or any of the housing agencies; or

d) Participation in the community mortgage program.

Section 19. Incentives for the National Housing Authority. The National Housing Authority, being the
primary government agency in charge of providing housing for the underprivileged and homeless, shall be
exempted from the payment of all fees and charges of any kind, whether local or national, such as income
and real taxes. All documents or contracts executed by and in favor of the National Housing Authority shall
also be exempt from the payment of documentary stamp tax and registration fees, including fees required
for the issuance of transfer certificates of titles.

Section 20. Incentives for Private Sector Participating in Socialized Housing. - To encourage greater
private sector participation in socialized housing and further
reduce the cost of housing units for the benefit of the underprivileged and homeless, the following
incentives shall be extended to private sector:

a) Reduction and simplification of qualification and accreditation requirements for participating private
developers;

b) Creation of one-stop offices in the different regions of the country for the processing, approval and
issuance of clearances, permits and licenses: Provided, That clearances, permits and licenses shall be issued
within ninety (90) days from the date of submission of all requirements by the participating private
developers;

c) Simplification of financing procedures; and

d) Exemption form the payment of the following:

1) Project-related income taxes;

2) Capital gains tax on raw lands used for the projects;

3) Value-added tax from the project contractor concerned;

4) Transfer tax for both raw and completed projects; and

5) Donor’s tax for lands certified by the local government units to have been donated for socialized
housing purposes.
Provided, That upon application for exemption, alien on the title of the land shall be annotated by the
Register of Deeds: Provided, further, That socialized housing development plan has already been approved
by the appropriate government agencies concerned: Provided, finally, That all the savings acquired by
virtue of this provision shall accrue in favor of the beneficiaries subject to the implementing guidelines to
be issued by the Housing and Urban Development Coordinating Council.

Appropriate implementing guidelines shall be prepared by the Department of Finance, in consultation with
the Housing and Urban Development Coordinating Council, for the proper implementation of the tax
exemption mentioned in this section within one (1) year after the approval of this Act.

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 Housing and Urban Development Coordinating
Council and the Department of Finance.

Section 21. Basic Services. – Socialized housing and resettlement areas shall be provided by the local
government unit or the National Housing Authority in cooperation with the private developers and
concerned agencies with the following basic services and facilities:

a) Potable water;

b) Power and electricity and an adequate power distribution system;

c) Sewerage facilities and an efficient and adequate solid waste disposal system; and

d) Access to primary roads and transportation facilities.

The provision of other basic services and facilities such as health, education, communications, security,
recreation, relief and welfare shall be planned and shall be given priority for implementation by the local
government unit and concerned agencies in cooperation with the private sector and the beneficiaries
themselves.
The local government unit, in coordination with the concerned national agencies, shall ensure that these
basic services are provided at the most cost-efficient rates, and shall set a mechanism to coordinate
operationally the thrusts, objectives and activities of other government agencies concerned with providing
basic services to housing projects.

Section 22. Livelihood Component. – To the extent feasible, 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.

Section 23. Participation of Beneficiaries. - The local government units, in coordination with the
Presidential Commission for the Urban Poor and concerned government agencies, shall afford Program
beneficiaries or their duly designated representatives an opportunity to be heard and to participate in the
decision- making process over matters involving the protection and promotion of their legitimate collective
interests which shall include appropriate documentation and feedback mechanisms. They shall also be
encouraged to organized themselves and undertake self-help cooperative housing and other livelihood
activities. They shall assist the Government in preventing incursions of professional squatters and members
of squatting syndicates in to their communities.

In instances when the affected beneficiaries have failed to organize themselves or form an alliance within a
reasonable period prior to the implementation of the program or projects affecting them, consultation
between the implementing agency and the affected beneficiaries shall be conducted with the assistance of
the Presidential Commission for the Urban Poor and the concerned nongovernment organization.

Section24. Consultation with Private Sector. - Opportunities for adequate consultation shall be accorded to
the private sector involved in socialized housing project pursuant to this Act.

ARTICLE VI - AREAS FOR PRIORITY DEVELOPMENT, ZONAL IMPROVEMENT PROGRAM,

SITES AND SLUM IMPROVEMENT AND RESETTLEMENT PROGRAM SITES

Section 25. Benefits. - In addition to the benefits provided under existing laws and other related issuances
to occupants of areas for priority development, zonal improvement program sites and slum improvement
and resettlement program sites, such occupants shall be entitled to priority in all government projects
initiated pursuant to this Act. They shall also be entitled to the following support services:

a) Land surveys and titling at minimal cost;

b) Liberalized terms on credit facilities and housing loans and one hundred percent (100%) deduction from
every homebuyer’s gross income tax of all interest payments made on documented loans incurred for the
construction or purchase of the homebuyer’s house;

c) Exemption from the payment of documentary stamp tax, registration fees, and other fees for the issuance
of transfer certificate of titles;

d) Basic services as provided for in Section 21 of this Act; and

e) Such other benefits that may arise from the implementation of this Act.

ARTICLE VII - URBAN RENEWAL AND RESETTLEMENT

Section 26. Urban Renewal and Resettlement. – This shall include the rehabilitation and development of
blighted and slum areas and the resettlement of Program beneficiaries in accordance with the provision of
this Act. On-site development shall be implemented whenever possible in order to ensure minimum
movement of occupants of blighted lands and slum areas. The resettlement of the beneficiaries of the
Program from their existing places of occupancy shall be undertaken only when on-site development is not
feasible and after compliance with the procedure laid down in Section 28 of this Act.

Section 27. Action Against Professional Squatters and Squatting Syndicates. – The local government units,
in cooperation with the Philippine National Police, the Presidential Commission for the Urban Poor
(PCUP), and the PCUP-accredited urban poor organization in the area, shall adopt measures to identify and
effectively curtail the nefarious and illegal activities of professional squatters and squatting syndicates, as
herein defined.

Any person or group identified as such shall be summarily evicted and their dwelling structures
demolished, and shall be disqualified to avail of the benefits of the Program. A public official who tolerates
or abets the commission of the abovementioned acts shall be dealt with in accordance with existing laws.

For purposes of this Act, professional squatters or members of squatting syndicates shall be imposed the
penalty of six (6) years imprisonment or a fine of not less than Sixty thousand pesos (P60,000) but not
more than One hundred thousand pesos (P100,000), or both, at the discretion of the court.

Section 28. Eviction and Demolition. Eviction or demolition as a practice shall be discouraged. Eviction or
demolition, however, may be allowed under the following situations:

(a) When persons or entities occupy danger areas such as esteros, railroad tracks, garbage dumps,
riverbanks, shorelines, waterways, and other public places such as sidewalks, roads, parks, and
playgrounds;

(b) When government infrastructure projects with available funding are about to be implemented; or

(c) When there is a court order for eviction and demolition.

In the execution of eviction or demolition orders involving underprivileged and homeless citizens, the
following shall be mandatory:

(1) Notice upon the affected persons or entities at least thirty (30) days prior to the date of eviction or
demolition;

(2) Adequate consultations on the matter of resettlement with the duly designated representatives of the
families to be resettled and the affected communities in the areas where they are to be relocated;

(3) Presence of local government officials or their representatives during eviction or demolition;
(4) Proper identification of all persons taking part in the demolition;

(5) Execution of eviction or demolition only during regular office hours from Mondays to Fridays and
during good weather, unless the affected families consent otherwise;

(6) No use of heavy equipment for demolition except for structures that are permanent and of concrete
materials;

(7) Proper uniforms for members of the Philippine National Police who shall occupy the first line of law
enforcement and observe proper disturbance control procedures; and

(8) Adequate relocation, whether temporary or permanent; Provided, however, That in cases of eviction
and demolition pursuant to a court order involving underprivileged and homeless citizens, relocation shall
be undertaken by the local government unit concerned and the National Housing Authority with the
assistance of other government agencies within forty-five (45) days from service of notice of final
judgment by the court, after which period the said order shall be executed: Provided, further, That should
relocation not be possible within the said period, financial assistance in the amount equivalent to the
prevailing minimum daily wage multiplied by sixty (60) days shall be extended to the affected families by
the local government unit concerned.

The Department of Interior and Local Government and the Housing and Urban Development Coordinating
Council shall jointly promulgate the necessary rules and regulations to carry out the above provision.

Section 29. Resettlement. – Within two (2) years from the effectivity of this Act, the local government
units, in coordination with the National Housing Authority, shall implement the relocation and resettlement
of persons living in danger areas such as esteros, railroad tracks, garbage dumps, riverbanks shorelines,
waterways, and in other public places such as sidewalks, roads, parks and playgrounds. The local
government units, in coordination with the National Housing Authority, shall provide relocation or
resettlement sites with basic services and facilities and access to employment and livelihood opportunities
sufficient to meet the basic needs of the affected families.

Section 30. Prohibition Against New Illegal Structures. – It shall be unlawful for any person to construct
any structure in areas mentioned in the preceding section.

After the effectivity of this Act, the barangay, municipal or city government units shall prevent the
construction of any kind or illegal dwelling units or structures within their respective localities. The head of
any local government unit concerned who allows, abets or otherwise tolerates the construction of any
structure in violation of this section shall be liable to administrative sanctions under existing laws and to
penal sanctions provided for in this Act.

ARTICLE VIII - COMMUNITY MORTGAGE PROGRAM

Section 31. Definition. – The Community Mortgage Program (CMP) is a mortgage financing program of
the National Home Mortgage Finance Corporation which assists legally organized associations of
underprivileged and homeless citizens to purchase and develop a tract of land under the concept of
community ownership. The primary objective of the program is to assist residents of blighted or depressed
areas to own the lots they occupy, or where they choose to relocate to, and eventually improve their
neighborhood and homes to the extent of their affordability.

Section 32. Incentives. – To encourage its wider implementation, participants in the CMP shall be granted
with the following privileges or incentives:
(a) Government-owned or -controlled corporations and local government units, may disposed of their idle
lands suitable for socialized housing under the CMP through negotiated sale at prices based on acquisition
cost plus financial carrying costs;

(b) Properties sold under the CMP shall be exempted from the capital gains tax; and

(c) Beneficiaries under the CMP shall not be evicted nor dispossessed of their lands or improvements
unless they have incurred arrearages in payments of amortizations for three (3) months.
Section 33. Organization of Beneficiaries. – Beneficiaries of the Program shall be responsible for their
organization into associations to manage their subdivisions or places of residence, to secure housing loans
under existing Community Mortgage Program and such other projects beneficial to them. Subject to such
rules and regulations to be promulgated by the National Home Mortgage Finance Corporation, associations
organized pursuant to this Act may collectivity acquire and own lands covered by this Program. Where the
beneficiaries fail to form an association by and among themselves, the National Home Mortgage Finance
Corporation shall initiate the organization of the same in coordination with the Presidential Commission for
the Urban Poor and the local government units concerned. No person who is not a bona fide resident of the
area shall be a member or officer of such association.

ARTICLE IX - RELATED STRATEGIES

Section 34. Promotion of Indigenous Housing Materials and Technologies. – The local government units,
in cooperation with the National Housing Authority, Technology and Livelihood Resource Center, and
other concerned agencies, shall promote the production and use of indigenous, alternative, and low-cost
construction materials and technologies for socialized housing.

Section 35. Transport System. – The local government units, in coordination with the Departments of
Transportation and Communications, Budget and Management, Trade and Industry, Finance, and Public
Works and Highways, the Home Insurance Guaranty Corporation, and other concerned government
agencies, shall device a set of mechanisms including incentives to the private sector so that a viable
transport system shall evolve and develop in the urban areas. It shall also formulate standards designed to
attain these objectives:
(a) Smooth flow of traffic;

(b) Safety and convenience of travel;

(c) Minimum use of land space;

(d) Minimum damage to the physical environment; and

(e) Adequate and efficient transport service to the people and goods at minimum cost.

Section 36. Ecological Balance. – The local government units shall coordinate with the Department of
Environment and Natural Resources in taking measures that will plan and regulate urban activities for the
conservation and protection of vital, unique and sensitive ecosystems, scenic landscapes, cultural sites and
other similar resource areas.

To make the implementation of this function more effective, the active participation of the citizenry in
environmental rehabilitation and in decision-making process shall be promoted and encouraged. The local
government units shall recommend to the Environmental and Management Bureau the immediate closure
of factories, mines and transport companies which are found to be causing massive pollution.

Section 37. Population Movements. -The local government units shall set up an effective mechanism,
together with the appropriate agencies like the Population Commission, the National Economic and
Development Authority and the National Statistics Office, to monitor trends in the movements of
population from rural to urban, urban to urban, and urban to rural areas. They shall identify measures by
which such movements can be influenced to achieve balance between urban capabilities and population, to
direct appropriate segments of the population into areas where they can have access to opportunities to
improve their lives and to contribute to national growth and recommend proposed legislation to Congress,
if necessary.
The Population Commission, The National Economic and Development Authority, and the National
Statistics Office shall likewise provide advanced planning information to national and local government
planners on population projections and the consequent level of services needed in particular urban and
urbanizable areas. This service will include early-warning systems on expected dysfunctions in a particular
urban area due to population increases, decreases, and age structure changes.

Section 38. Urban-rural Interdependence. – To minimize rural to urban migration and pursue urban
decentralization, the local government units shall coordinate with the National Economic and Development
Authority and other government agencies in the formulation of national development programs that will
stimulate economic growth and promote socioeconomic development in the countryside.

ARTICLE X - PROGRAM IMPLEMENTATION

Section 39. Role of Local Government Units. – The local government units shall be charged with the
implementation of this Act in their respective localities, in coordination with the Housing and Urban
Development Coordinating Council, the national housing agencies, the Presidential Commission for the
Urban Poor, the private sector and other nongovernment organizations.

They shall prepare a comprehensive land use plan for their respective localities in accordance with the
provisions of this Act.

Section 40. Role of Government Housing Agencies. – In addition to their respective existing powers and
functions, and those provided for in this Act, the hereunder mentioned housing agencies shall perform the
following:

(a) The Housing and Urban Development Coordinating Council shall, through the key housing agencies,
provide local government units with necessary support such as:

(1) Formulation of standards and guidelines as well as providing technical support in the preparation of
town and land use plans;

(2) In coordination with the National Economic and Development Authority and the National Statistics
Office, provide data and information for forward-planning by the local government units in their areas,
particularly on projections as to the population and development trends in their localities and the
corresponding investment programs needed to provide appropriate types and levels of infrastructure,
utilities, services and land use patterns; and

(3) Assistance in obtaining funds and other resources needed in the urban development and housing
programs in their areas of responsibility.
(b) The National Housing Authority, upon request of local government units, shall provide technical and
other forms of assistance in the implementation of their respective urban development and housing
programs with the objective of augmenting and enhancing local government capabilities in the provision of
housing benefits to their constituents;

(c) The National Home Mortgage Finance Corporation shall administer the Community Mortgage Program
under this Act and promulgate rules and regulations necessary to carry out the provisions of this Act; and

(d) The Home Insurance Guaranty Corporation shall design an appropriate guarantee scheme to encourage
financial institutions to go into direct lending for housing.

Section 41. Annual Report. – The Housing and Urban Development Coordinating Council and the local
government units shall submit a detailed annual report with respect to the implementation of this Act to the
President and the Congress of the Republic of the Philippines.

ARTICLE XI - FUNDING

Section 42. Funding. – Funds for the urban development and housing program shall come from the
following sources:

(a) A minimum of fifty percent (50%) from the annual net income of the Public Estates Authority, to be
used by the National Housing Authority to carry out its programs of land acquisition for resettlement
purposes under this Act;

(b) Proceeds from the disposition of ill-gotten wealth, not otherwise previously set aside for any other
purpose, shall be applied to the implementation of this Act and shall be administered by the National Home
Mortgage Finance Corporation;

(c) Loans, grants, bequests and donations, whether from local or foreign sources;

(d) Flotation of bonds, subject to the guidelines to be set by the Monetary Board;

(e) Proceeds from the social housing tax and, subject to the concurrence of the local government units
concerned, idle lands tax as provided in Section 236 of the Local Government Code of 1991 and other
existing laws;

(f) Proceeds from the sale or disposition of alienable public lands in urban areas; and

(g) Domestic and foreign investment or financing through appropriate arrangements like the build-operate-
and-transfer scheme.

Section 43. Socialized Housing Tax. Consistent with the constitutional principle that the ownership and
enjoyment of property bear a social function and to raise funds for the Program, all local government units
are hereby authorized to impose an additional one-half percent (0.5%) tax on the assessed value of all lands
in urban areas in excess of Fifty thousand pesos (P50,000).
ARTICLE XII - TRANSITORY PROVISIONS

Section 44. Moratorium on Eviction and Demolition. – There shall be a moratorium on the eviction of all
programs beneficiaries and on the demolition of their houses or dwelling units for a period of three (3)
years from the effectivity of this Act: Provided, That the moratorium shall not apply to those persons who
have constructed their structures after the effectivity of this Act and for cases enumerated in Section 28
hereof.

ARTICLE XIII - COMMON PROVISIONS

Section 45. Penalty Clause. – Any person who violates any provision of this Act shall be imposed the
penalty of not more than six (6) years of imprisonment or a fine of not less than Five thousand pesos
(P5,000) but not more than One hundred thousand pesos (P100,000), or both, at the discretion of the court:
Provided, That, if the offender is a corporation, partnership, association or other juridical entity, the penalty
shall be imposed on the officer or officers of said corporation, partnership, association or juridical entity
who caused the violation.

Section 46. Appropriations. – The amount necessary to carry out the purposes of this Act shall be included
in the annual budget of implementing agencies in the General Appropriations Act of the year following its
enactment into law and every year thereafter.

Section 47. Separability Clause. – If for any reason, any provision of this Act is declared invalid or
unconstitutional, the remaining provisions not affected thereby shall continue to be in full force and effect.

Section 48. Repealing Clause. – All laws, decrees, executive orders, proclamations, rules and regulations,
and other issuances, or parts thereof which are inconsistent with the provisions of this Act, are hereby
repealed or modified accordingly.

Section 49. Effectivity Clause. – This Act shall take effect upon its publication in at least two (2) national
newspapers of general circulation.

This Act which is a consolidation of House Bill No. 34310 and Senate Bill No. 234 was finally passed by
the House of Representatives and the Senate on February 3, 1992.

Approved. March 24, 1992