HOUSING AND LAND USE REGULATORY BOARD
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1 DEVELOPING EFFICIENT RULES AND REGULATIONS FOR THE REAL ESTATE AND HOUSING INDUSTRY HOUSING AND LAND USE EXECUTIVE ORDER NO. 90 [ December 17, 1986 ] DEVELOPING EFFICIENT RULES AND REGULATIONS FOR THE REAL ESTATE AND HOUSING INDUSTRY IDENTIFYING THE GOVERNMENT AGENCIES ESSENTIAL FOR THE NATIONAL SHELTER PROGRAM AND DEFINING THEIR MANDATES By: Atty. Antonio M. Bernardo Chief Executive Officer and Commissioner Chamber of Real Estate and Builders Associations (CREBA) 24 th National Convention October 7-10, 2015 SMX Convention Center, Bacolod City
2 DEVELOPING HOUSING AND EFFICIENT LAND USE RULES AND REGULATIONS RULE-MAKING FOR THE REAL BOARD ESTATE AND HOUSING INDUSTRY MANDATES EXECUTIVE ORDER NO. 648 [ HOUSING February 7, AND 1981 LAND ] USE THE CHARTER OF THE HUMAN SETTLEMENTS COMMISSION EXECUTIVE ORDER NO. 90 [ December 17, 1986 ] IDENTIFYING THE GOVERNMENT AGENCIES ESSENTIAL FOR THE NATIONAL SHELTER PROGRAM AND DEFINING THEIR MANDATES Section 1 [C] Renaming the Human Settlements Regulatory Commission to Housing and Land Use Regulatory Board The sole regulatory body for housing and land development
3 RULE-MAKING MANDATES EXECUTIVE ORDER NO. 648 [ February 7, 1981 ] PRESIDENTIAL DECREE NO. 957 THE [ July CHARTER 12, 1976 OF ] THE HUMAN SETTLEMENTS COMMISSION THE SUBDIVISION AND CONDOMINIUM BUYERS Section PROTECTIVE 5. Powers DECREE and Duties Authority to issue rules and regulations to enforce land use policies and human settlements as provided in x x x P.D. No. 957, and other related laws regulating the use of land Section 8. Transfer of Functions The regulatory functions of the National Housing Authority pursuant to P.D. No. 957 and other related laws were transferred to HSRC [HLURB]
4 RULE-MAKING MANDATES REPUBLIC ACT NO PRESIDENTIAL [ March 24, DECREE 1992 ] NO. 957 [ July 12, 1976 ] THE URBAN DEVELOPMENT AND HOUSING ACT OF 1992 (UDHA) THE SUBDIVISION AND CONDOMINIUM BUYERS PROTECTIVE DECREE Section 36. Rules and Regulations The Authority [HLURB] shall issue the necessary standards, rules and regulations for the effective implementation of the provisions of P.D. No. 957
5 RULE-MAKING MANDATES REPUBLIC ACT NO [ March [ July 2, 24, ] ] MAGNA CARTA FOR HOMEOWNERS AND THE URBAN DEVELOPMENT AND HOUSING ACT OF 1992 (UDHA) HOMEOWNERS ASSOCIATIONS Section 18. Balanced Housing Development Section 6. Framework for Rational Development Developers of proposed residential subdivision Formulation projects of are the required National to Urban develop Development an area for and socialized Housing Framework, housing equivalent under the to direction 20% of of project HUDCC, area and or in project coordination cost, in with accordance all LGUs and other with concerned the standards public set and by the private HLURB sectors. and other existing laws.
6 RULE-MAKING COVERAGE MANDATES EXECUTIVE ORDER NO. 648 REPUBLIC ACT NO Promulgation [ July of zoning 2, 2009 and ] other land use control standards and guidelines MAGNA CARTA FOR HOMEOWNERS AND HOMEOWNERS ASSOCIATIONS Section 28. Implementing Rules and Regulations The HLURB shall formulate and promulgate, in consultation with concerned sectors, rules and regulations necessary to implement the provision of R.A. No. 9904
7 RULE-MAKING COVERAGE EXECUTIVE PRESIDENTIAL EXECUTIVE ORDER NO. DECREE ORDER 648 NO Promulgation Regulation Promulgation of zoning of the of Real and zoning other Estate land Business other land use control use standards control standards guidelines and guidelines Land use plans and zoning ordinances of local governments Zoning components of civil works and Volume infrastructure projects Volume 2 of the 3 1national, regional and local governments Supplemental Guidelines Sectoral Model Mainstreaming The Planning and Situational Zoning Ordinance Process Climate Change & Analysis Disaster Risks Subdivision and real estate development projects of both the public and private sectors Urban renewal plans, programs and projects
8 RULE-MAKING COVERAGE PRESIDENTIAL DECREE NO. 957 Regulation of the Real Estate Business ASPECTS SCOPE OF OF APPLICATION REGULATION All subdivisions, including residential, commercial, farmlot, and industrial subdivisions All condominiums, including residential and commercial condominiums Any other similar projects, including cemeteries, memorial parks, and columbaria
9 RULE-MAKING COVERAGE PROCESS NATIONAL LAWS PRESIDENTIAL DECREE NO. 957 Regulation of the Real Estate Business ASPECTS OF REGULATION Technical design and standards for subdivisions and condominiums projects Approval of development plan and issuance of development permit to condominium projects Registration and issuance of license to sell to subdivision and condominium projects Monitoring of the development and completion of subdivision and condominium projects Imposition of sanctions and penalties.
10 RULE-MAKING PROCESS NATIONAL LAWS Executive Order No. 648 Series of 1981 Republic Act No Republic Act No Batas Pambansa Blg. 220 Presidential Decree No. 957 IMPLEMENTING RULES AND REGULATIONS BOARD RESOLUTIONS IMPLEMENTING GUIDELINES MEMORANDUM CIRCULARS
11 RULE-MAKING PROCESS BOARD RESOLUTIONS MEMORANDUM CIRCULARS QUALITY MANAGEMENT SYSTEM CERTIFIED UNDER ISO 9001:2008 TECHNICAL WORKING GROUP MANCOM / RFO / STAKEHOLDERS
12 RULE-MAKING PROCESS BOARD RESOLUTIONS MEMORANDUM CIRCULARS TECHNICAL WORKING GROUP TECHNICAL WORKING GROUP MANCOM / RFO / STAKEHOLDERS
13 RULE-MAKING PROCESS BOARD RESOLUTIONS MEMORANDUM CIRCULARS TECHNICAL MANCOM WORKING / RFO / STAKEHOLDERS GROUP CREBA REBAP SHDA PAREB OSHDP PHILRES NREA
14 RULE-MAKING PROCESS BOARD RESOLUTIONS MEMORANDUM CIRCULARS MANCOM / RFO / STAKEHOLDERS
15 NATIONAL LAWS Executive Order No. 648 Series of 1981 Republic Act No Republic Act No Batas Pambansa Blg. 220 Presidential Decree No. 957 IMPLEMENTING RULES AND REGULATIONS Executive Order No. 648 Series of 1981 Board Resolution No. 871 Series of Revised Rules of Procedure of the HLURB
16 NATIONAL LAWS Executive Order No. 648 Series of 1981 Republic Act No Republic Act No Batas Pambansa Blg. 220 Presidential Decree No. 957 IMPLEMENTING RULES AND REGULATIONS Executive Order No. 648 Series of 1981 Board Resolution No. 871 Series of Revised Rules of Procedure of the HLURB
17 NATIONAL LAWS Executive Order No. 648 Series of 1981 Republic Act No Republic Act No Batas Pambansa Blg. 220 Presidential Decree No. 957 IMPLEMENTING RULES AND REGULATIONS Republic Act No Board Resolution No. 890 Series of 2012 Revised Implementing Rules and Regulations to Govern Section 18 of UDHA
18 NATIONAL LAWS Executive Order No. 648 Series of 1981 Republic Act No Republic Act No Batas Pambansa Blg. 220 Presidential Decree No. 957 IMPLEMENTING RULES AND REGULATIONS Republic Act No Board Resolution No. 890 Series of 2012 Revised Implementing Rules and Regulations to Govern Section 18 of UDHA
19 NATIONAL LAWS Executive Order No. 648 Series of 1981 Republic Act No Republic Act No Batas Pambansa Blg. 220 Presidential Decree No. 957 IMPLEMENTING RULES AND REGULATIONS Republic Act No Board Resolution No. 877 Series of 2011 Implementing Rules and Regulations of R.A. No. 9904
20 NATIONAL LAWS Executive Order No. 648 Series of 1981 Republic Act No Republic Act No Batas Pambansa Blg. 220 Presidential Decree No. 957 IMPLEMENTING RULES AND REGULATIONS Republic Act No Board Resolution No. 877 Series of 2011 Implementing Rules and Regulations of R.A. No. 9904
21 NATIONAL LAWS Executive Order No. 648 Series of 1981 Republic Act No Republic Act No Batas Pambansa Blg. 220 Presidential Decree No. 957 IMPLEMENTING RULES AND REGULATIONS Batas Pambansa Blg. 220 Board Resolution No. 700 Series of 2001 Amending the Rules and Standards for Economic and Socialized Housing Projects to Implement B.P. 220
22 NATIONAL PRESIDENTIAL LAWS DECREE NO. 957 Executive Order No. 648 Republic Act No Series Board of Resolution 1981 No. 699, Series of 2001 Amending the Rules and Regulations Implementing the Republic Act No Batas Pambansa Blg. 220 Subdivision and Condominium Buyers Protective Decree Presidential Decree No. 957 IMPLEMENTING RULES AND REGULATIONS Batas Pambansa Blg. 220 Board Resolution No. 700 Series of 2001 Amending the Rules and Standards for Economic and Socialized Housing Projects to Implement B.P. 220
23 PRESIDENTIAL DECREE NO. 957 Revised Implementing Rules Board and Regulations Resolution No. 921 Board Resolution No. 699, Series of 2001 Section Amending 19 on Advertisements Series of 2014 the Rules and Regulations Implementing the Advertisements Subdivision MEMORANDUM and Condominium CIRCULARS Revised Buyers Implementing Protective Decree Rules and Regulations on Advertisements Sections 11 and 12 Dealers, Brokers and Salesmen Section 20 Time of Completion Board Resolution No. 922 Series of 2014 Revised Implementing Rules and Regulations on Dealers, Brokers and Salesmen Board Resolution No. Series of 2015 Revised Implementing Rules and Regulations on Time of Completion
24 PRESIDENTIAL DECREE NO. 957 Revised Revised Implementing Rules Rules and and Regulations Regulations on Dealers, on Advertisements Brokers and Salesmen MEMORANDUM CIRCULARS MEMORANDUM CIRCULARS Memorandum Circular Amendatory 2014 Guidelines and Supplemental on No. 01-A, 01, Series of 2015 Guidelines Advertisements on Advertisements Requirement that license to sell number be of the same font, size and resolution as the largest contact information Uniform format of license to sell number and date of completion Requirement of Certificate of Occupancy if ads claim Ready for Occupancy or Ready for Moving-In
25 PRESIDENTIAL DECREE NO. 957 Revised Implementing Rules and Regulations on Dealers, Brokers and Salesmen MEMORANDUM CIRCULARS Memorandum Circular 2014 Dispensing Amendatory Guidelines With on and Dealers, The Memorandum No. 02, Series Circular of 2015 Requirement Supplemental Brokers and of Guidelines Notarization Salesmen onin No. 02-B, 02-A, Series of 2015 Dealers, the Registration Brokers and of Brokers Salesmen and Salespersons Exemption Allowing of single cash bond proprietorship in lieu of from the surety requirement bond as of security registration Submission Allowing registration of specimen in any signature regional for issuance field of office HLURB of Identification the HLURB Card Allowing submission of official receipt / claim stub Uniform numbering lieu of of PRC Certificate of of Registration Registration or Identification Card
26 PRESIDENTIAL Revised Implementing DECREE NO. Rules 957 and Regulations on Time of Completion Revised Implementing Rules and Regulations on Dealers, Brokers and Salesmen MEMORANDUM CIRCULARS Memorandum Circular No. 02-B, Series of 2015 Memorandum Circular No. 02-C, Series of 2015 Memorandum Circular No. 02-D, Series of 2015 Dispensing With The Requirement of Notarization In the Registration of Brokers and Salespersons Certificate of Registration as Accountable Form Clarificatory Guidelines on Exclusion of Developers From Registration Requirement
27 Revised Implementing Rules and Regulations on Time of Completion Grounds Features For Additional Of The New Period Rules of Time Period of Completion based on submitted program of development Separate periods of completion for land development and housing construction allowance for possible delay due to weather disturbances, work interruptions and shortage of supplies Additional period may only be granted in meritorious or exceptional cases
28 Revised Implementing Rules and Regulations on Time of Completion Grounds For Additional Period of Time Non-Completion Buyers Remedies Sub-soil conditions discoverable only after actual excavations Fortuitous Events Lawful orders issued by competent court, government agency or LGU enjoining the development, provided that such issuance is not attributable on any fault or negligence, or dispute on the part of or between the owner or developer
29 Revised Implementing Rules and Regulations on Time of Completion Fines Non-Completion and Sanctions Buyers Remedies Buyers on Installments Fully Paid Buyers Sec. 23, P.D. 957 Civil Code [ Art ] Other rights and remedies provided for by other laws
30 Revised Implementing Rules and Regulations on Time of Completion Transitory Fines and Provision Sanctions P 1,000 - P 10,000 in accordance with HLURB s Approved Schedule of Fines and Penalties Suspension of License to Sell CDO Selling / Advertising / Collecting Installments
31 Revised Proposed Implementing Rules and Policies Rules and Regulations on Time of Completion Transitory Provision Within ninety (90) days from the effectivity of this Rules, all on-going projects with an original fixed or approved period of completion or extension of time to develop that is shorter than the period of completion provided in the originally submitted or revised work program or program of development may apply for a final additional time to develop and complete the project based on their approved or revised work program or program of development
32 Proposed Rules and Policies DEVELOPERS PROVIDING IN-HOUSE PERFORMANCE BOND FINANCING AS CREDIT-GRANTING ENTITIES (Section 6, PD 957) (BSP Circular No. 755, S. of 2012) REMOVAL OF THE TEMPORARY remaining LICENSE cost of completion TO SELL (Section 5, PD 957) Current required bond is only 20% of Insufficient to complete the project in case Completion of non-development and delivery is or delayed abandonment due to nondevelopment pending issuance of building permit non-compliance by the developers with the required escrow deposit Non-submission of required sales reports In some cases, building permit is denied by the local government
33 Proposed Rules and Policies DEVELOPERS PROVIDING IN-HOUSE FINANCING AS CREDIT-GRANTING ENTITIES (BSP Circular No. 755, S. of 2012) PROVISIONAL ACCREDITATION OF SOCIALIZED Considered HOUSING as Credit-Granting DEVELOPERS In-House Financing / Sales on Installment Basis Registration with the Bangko Sentral of Developers Providing In-House Financing Requirement of Truthful Disclosure of Terms of Financing in the Contract to Sell
34 Proposed Rules and Policies DEVELOPERS PROVIDING IN-HOUSE FINANCING AS CREDIT-GRANTING ENTITIES (BSP Circular No. 755, S. of 2012) PROVISIONAL ACCREDITATION OF SOCIALIZED HOUSING DEVELOPERS Dispensing with the 500-housing unit built as a requirement for general Accreditation Requirement of joint-venture agreement and Thank development you permit and of the socialized visit us housing at to qualify for provisional accreditation Automatic upgrading to general accreditation upon construction of 500 housing units
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