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Cres Subj 5.4 HLURB PG 93-123

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5.4 Housing and Land Use Regulatory Board (HLURB)


Source: www.hlurb.gov.ph
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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.
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HISTORY:
• EO No. 419 (1973): Creation of Task Force on Human Settlements (TFHS) under
the Development Academy of the Philippines
• PD No. 933 (1976): TFHS was renamed into Human Settlements Commission
(HSC)
• PD No. 1396 (1978): HSC was renamed as the Human Settlements Regular
Commission (HSRC), the regulatory arm of the Ministry of
Human Settlements
• EO No. 648 (1981): HSRC was recognized and the implementation of P.D. No. 957
was transferred from NHA to HSRC
• EO No. 90 (1986): HSRC was renamed as the Housing and Land Use Regulatory
Board (HLURB) and was designated as the regulatory body
for housing and land development under the Housing and
Urban Development Coordinating Council (HUDCC).
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ADMINISTRATIVE BODY:
• Chairman: Hon. Jejomar Binay, Vice President of the Philippines
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• Composition of Board of Commissioners:
o One (1) Chairman
o Four (4) full-time Commissioners appointed by the President, one as CEO, which
supervises a functional area at the central office, and 2-5 regional field offices
o Four (4) ex-office Commissioners
▪ Undersecretary, Department of Justice (DOJ)
▪ Undersecretary, Department of Interior and Local Government (DILG)
▪ Undersecretary, Department of Public Works and Highways (DPWH)
▪ Deputy Director-General, National Economic and Development Authority
(NEDA)
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• Regional Operations:
o A network of field personnel led by a Regional Officer in each region brings
HLURB services to its clientele and various public in their respective localities.
Nine (9) Regional Field Offices have served as mini-HLURBs nationwide.
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FUNCTIONS:
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1. Rational Land Use
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Planning is the key to orderly and rational land development in any local govern-
ment unit, i.e. a city or municipality. A Comprehensive Land Use Plan (CLUP) prescribes
the developmental pace, directions and strategies for the optimum use of land resources
in a community as well as its role in provincial, regional and national development. The
CLUP is enacted into a zoning ordinance for purposes of enforcement.
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2. Development Role
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HLURB has the twin roles of enhancing and reinforcing rational housing and real
estate service delivery via a triad of strategies namely: policy, planning and regulation.
The HLURB pursues activities to attain rational land use as specified in a number of di-
rectives.
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• Extend planning assistance to Local Government Units (LGUs) (LOI No. 729,
EO No. 648)
• Review and ratify land use plans of Metro Manila cities and municipalities,
provinces, highly urbanized cities and independent component cities (EO No.
72)
• Enforce zoning regulations (EO No. 648)
• Investigate and adjudicate complains (EO No. 648)
• Assist local government units assume devolved functions via training and con-
sultation
• Coordinate land reclassification clearance system (MC No. 54)
• Update and revise rules, guidelines and standards on land use (EO No. 648)
• Update and revise National Urban Development and Housing Framework (RA
No. 7279)
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3. On Real Estate and Housing Regulations
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• Enforce laws, rules, standards and guidelines through:
o Approval of condominium plans (PD No. 957)
o Subdivision Plans: HLURB’s foremost function is to protect buyers of
housing units and home lots, and condominium units against unscrupu-
lous practices in the industry.
o Issuance of License to Sell (PD No. 957).
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• Assist LGUs perform the devolved function of processing and approving the
subdivision plans via training and consultation (EO No. 71)

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• Issue sales and mortgage clearances for the protection of rights of tenants in
the urban and land reform zones and areas for priority development (PD No.
1517)
• Update and revise rules guidelines and standards on housing and real estate
for:
o Residential subdivisions and condominiums (PD No. 957)
o Economic and socialized housing projects (BP Bldg. 220)
• Approved expansion of a condominium corporation or integration of a con-
dominium project with another project upon the affirmative vote of a simple
majority of registered owners (RA No. 7899)
o Assurance of completion of projects (PD No. 957)
o Investigation and adjudication of complaints (PD No. 957)
o Assurance of compliance to balanced housing development require-
ment (Sec 18, R.A. 7279)
o Balanced housing development (RA No. 7279)
o Other types of subdivision and condominium projects (EO No. 648 and
related laws)
• Operate as the lead agency for the HUDCC for the Socialized Housing One-
stop Processing Centers (SHOPCs) and issuance of permits, clearances, certifi-
cations and licenses for the implementation of socialized housing projects (EO
No. 184)
• Approved any amendment to or revocation of the enabling or master deed of a
condominium project already decided upon by a simple majority of all regis-
tered owners (RA No. 7899)
• Approved expansion of a condominium corporation or integration of a con-
dominium project with another project upon the affirmative vote of a simple
majority of registered owners (RA No. 7899)
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QUASI-JUDICIAL FUNCTIONS:
Quasi-Judicial Functions Designated Housing and Land Use Arbiters (HLAs) at the
Central Office, in each of the Regional Field Offices and for special assignments, hear and decide
on complaints against violation of pertinent legislation’s and HLURB rules and regulations. The
HLURB Rules of Procedures for adjudication of cases provides for just speedy and inexpensive
proceedings, amicable settlements, summary resolution and other legal tools.
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The aggrieved party in a resolved case may file a petition for review or appeal the deci-
sion of the HLA to the Board of Commissioners. The decision of the Board is appealable to the
Office of the President which decisions shall be final subject only to review by the Supreme
Court.
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DEVOLVED FUNCTIONS:
Pursuant to the prescription of RA No. 7160 (local Government Code of 1991) and as de-
tailed under EO No. 71 and EO No. 72, certain HLURB functions were devolved to the LGU’s:

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• The Sangguniang Bayan or Sanguniang Panglungsod shall, subject to national
law, process and approved subdivision plans for residential, commercial, in-
dustrial or other development purpose.
• The Sangguniang Panlalawigan shall review and approve the comprehensive
land use plans of component cities and municipalities.
• Citites and municipalities with CLUPs reviewed and approved in accordance
with EO 72 shall issue locational clearance to locally significant projects.
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CHARTERS:
EO No. 648: Declared the HOUSING AND LAND USE REGULATORY BOARD (HLURB)
as the planning, regulatory and quasi-judicial instrumentality of government
for land use development.
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EO 90: Identify The Government Agencies Essential For The National Shelter Pro-
gram And Defining Their Mandates, Creating The Housing And Urban Devel-
opment Coordinating Council, Rationalizing Funding Sources And Lending
Mechanisms For Home Mortgages And For Other Purposes
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MANDATES:
1. Land Use Planning – Laws that Ensure Rational Land Use and Sustainable Urban and Re-
gional Development
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EO No. 72: Providing for the Preparation and Implementation of the
Comprehensive Land Use Plans of Local Government Units Pursuant
to the Local Government Code of 1991 and Other Pertinent Laws
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MC No. 54: Prescribing the Guidelines of Sec. 20, R.A. 7160, Authorizing Cities/
Municipalities to Reclassify Lands into Non-Agricultural Uses
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EO No. 124: Establishing Priorities and Procedures in Evaluating Areas for Land
Conversion in Regional Agricultural/Industrial Centers, Tourism
Development Areas Sites for Socialized Housing
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2. Real Estate Management – Laws that Regulate the Relationship between Sellers, Develop-
ers and Buyers of Subdivision Lots and Condominium Units, and provide Quasi-Judicial
and Criminal Remedies for Breach of Statutory and Contractual Obligations
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PD 957: Regulating the Sale of Subdivision Lots and Condominiums, Providing
Penalties For Violations Thereof
PD 1216: Defining “Open Space” in Residential Subdivision and Amending Sec 31 of
PD 957 Requiring Subdivision Owners to Provide Roads. Alleys, Sidewalks
and Reserve Open Space for Parks or Recreational Use
BP 220: An Act Authorizing the Ministry of Human Settlements to Establish and
Promulgate Different Levels of Standards and Technical Requirements for

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Economic and Socialized Housing Projects in Urban and Rural Areas from
Those Provided Under Presidential Decrees Numbered Nine Hundred
Fifty-Seven, Twelve Hundred Sixteen, Ten Hundred Ninety-Six and Eleven
Hundred Eighty-Five
RA 7279: Urban Development and Housing Act. An Act to Provide For a Com-
prehensive and Continuing Urban Development and Housing Program, Es-
tablish the Mechanism for its Implementation, and for Other Purposes
RA 4726: The Condominium Act. An Act to Define Condominium, Establish
Requirements for its Creation, and Govern its Incidents
RA 7899: Amending Sections 4 and 6 of R.A. 4726
EO No. 71: Devolution of HLURB Function to Approved Subdivision Plan of LGUs
EO No. 184: Creating Socialized Housing One-Stop Processing Centers
RA 6552: Realty Installment Buyer Protection Act
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3. Urban Land Reform – Laws that protect the rights of tenants and occupants of lands with-
in Urban Land Reform Zones / Areas for Priority Development (ULRZ/APD)
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PD 1517: Proclaiming Urban Land Reform in the Philippines and Providing for the
Implementing Machinery Thereof
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HLURB QUESTION AND ANSWER
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Board’s Jurisdiction
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Does the Board have jurisdiction over ejectment cases?
• As a rule, jurisdiction over ejectment cases rests with the regular courts, particularly the
metropolitan and municipal trial courts. However, in one case, the Supreme Court has
ruled that it is the Housing and Land Use Regulatory Board (HLURB) that has such juris-
diction, where the controversy involves the determination of rights and obligations be-
tween the seller and buyer of real estate in a subdivision or condominium project.
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Urban Development and Housing Act (RA 7279) on balanced housing development
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How is the requirement of 20% socialized housing compliance computed, is it based on the gross
area or the saleable area of the project?
• On the gross area of the main subdivision project
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Is this requirement of 20% compliance based only on area or also on project cost?
• At the option of the developer, it can be based on either.
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What housing projects are covered?
• All housing projects whose selling price is above PHP180,000 in highly urbanized areas
and above, PHP150,000 in non-urbanized areas.
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Are residential condominiums covered?
• No, per Opinion of the Department of Justice, the law applies only to subdivisions; con-
dominiums are a different type of project, and there is no legal basis for requiring them to
be covered by this requirement.
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Implementing Rules and Regulations of PD 957 and BP 220
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On the Design Standards and Guidelines
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What are the latest minimum design standards?
• Under BP 220
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o Minimum lot area
Single Detached –
72 sqm. for economic housing;
64 sqm. for socialized housing
Duplex/Single Attached –
54 sqm. for economic housing;
48 sqm. for socialized housing
Row house –
36 sqm. for economic housing;
28 sqm. for socialized housing (per BR 824, s. 2008)
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o Minimum floor area
22 sqm. for economic housing;
18 sqm. for socialized housing
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• Under PD 957
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o Minimum lot area
Single Detached - 120 sqm. for open market housing;
- 100 sqm. for medium cost housing
Duplex/Single Attached - 96 sqm. for open market housing;
- 80 sqm. for medium cost housing
Rowhouse - 60 sqm. for open market housing;
- 50 sqm. for medium cost housing
o Minimum floor area
42 sqm. for open market housing;
30 sqm. for medium cost housing
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What are the latest price ceilings?
• The current price ceilings as set by the Housing and Urban Development Coordinating
Council (HUDCC) as per MC No. 5 Series of 2007
Re: Redefinition of Loan Ceilings/Packages are as follows:
Socialized housing

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PHP 400,000.00 and below (per HUDCC MC No. 1, Dec. 11, 2008);
Low Cost
Level 1 = above P 300,000.00 to P1,250,000.00 (BP 220
standard)
Level 2 = above P1,250,000.00 to P2,000,000.00 (PD 957
standard)
Medium cost = P2,000,000.00 up to P4,000,000.00;
Open housing = above P4,000,000.00
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Are the revised IRRs for PD 957 and BP 220 already in effect?
• The revised IRRs which were approved per Board Resolutions No. 699 and 700, Series of
2001 took effect last May 2002. Amendments approved per Board Resolution No. 725, Se-
ries of 2002 took effect on 26 July 2002.
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How do we get copies of the new IRRs for PD 957 and BP 220?
• Copies of the IRRs for PD 957 and BP 220 are available at the HLURB Library, Ground
Floor of the HLURB Central Office, Kalayaan Avenue, Diliman, Quezon City. Requesting
parties are charged P200 per copy to cover cost of printing.
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Where can 20% compliance to balanced housing requirement be located?
• The 20% socialized housing requirement can be located within the same city or munici-
pality as the main project. In cases where this is not feasible, the compliance project may
be located in any city or municipality within the same region or any city or municipality
within the regions adjacent to it.
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Board Resolutions
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What are the new ways which the HLURB has helped the government in its housing program?
• It has issued several resolutions which liberalized or relaxes some requirements for de-
velopers in the application for a license to sell of a subdivision or condominium project.
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What is the effect of the relaxation of the requirements on the license to sell?
• It is hoped that by the relaxation of the requirements for application of the license to sell,
it will encourage developers to develop more housing projects and investors to enter into
the real estate business, thus more housing for people.
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Can you tell us what are these new issuance by HLURB that will encourage developers and in-
vestors into housing?
• First, we have Resolution No. 737, which authorizes developers to enter into joint ven-
ture projects as a mode on compliance to the balanced housing development provision of
RA 7279, which requires that all subdivisions must have a socialized housing component
equivalent to 20% on the project cost or project area;
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• Second is Resolution No. 739, which approved the purchase of HGC special series bonds
as a mode of compliance to the 20% socialized housing requirements under RA7279;
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• Third is Resolution No. 725-A, which deleted the DAR Exemption Clearance as a re-
quirement for the issuance of the Development Permit and License to Sell for subdivision
on and condominium projects;
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• Fourth are Resolution Nos. 748 and 750, which removes the DAR Conversion Clearance
as a pre-condition but as a post requirement for the issuance of a License to Sell for resi-
dential subdivisions and farm lots, respectively; and
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• Fifth is Resolution No. 756, which removes the Building Permit as a prior requirement for
the License to Sell and Certificate of Registration and make it as a post requirement in-
stead.
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All these resolutions, while not removing the protection of buyers, will enable developers
and investors to actively participate on the housing program of the government.
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Returning to the first Resolution No. 737, what is the reason for allowing developers from en-
tering joint venture projects for complying with the 20% requirement of RA7279?
• Previously, only the NHA and local government units and agencies have been allowed to
enter into joint venture agreements with developers complying with the 20% requirement
but in line with the government policy of greater private sector participation on the gov-
ernments housing program, it is already allowed for developers to enter into joint venture
projects on socialized housing.
What is the purpose of allowing HGC bonds as compliance to the 20% requirement?
• The purpose of the 20% requirement for socialized housing under RA 7279 is to encourage
developers and investors to enter into socialized housing. Hence, the purchase of social-
ized housing bonds, such as HGC bonds is recognized as a mode of compliance to this
requirement, the same as being germane to the purpose and scope of the term joint ven-
tures as allowed by the said law.
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By not requiring the DAR Conversion Clearance for the application of the License to Sell and
Certificate of Registration, does this mean that there is no need to submit this Clearance any-
more?
• No, the developer must still comply with the law, requiring the DAR Conversion Clear-
ance. However, instead of submitting it upon application for the LS/CR, the HLRUB al-
low the submission of the same as a post requirement.
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Is the relaxation of the requirement to submit the DAR Conversion Clearance applicable to all
projects?
• The exemption only applies to residential projects and farm lots. The purpose of the re-
laxation is to minimize the red-tape on approval of subdivision and condominium
projects, which are recognized as pump primers of the economy.
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What is the reason of making the Building Permit merely as a post requirement to the License to
Sell?
• It has been brought to the attention of the Board that due to the continued malaise on the
housing industry, the requirement of the Building Permit for application of the License to
Sell has become impractical and expensive because it will prevent the developers to con-
duct preliminary selling activities to test the market viability of their projects, which is a
test required by financial institutions prior to approval of any developmental loans. As a
good business practice, the developers usually conduct this preliminary test before they
fully invest on the condominium. If the market testing will show that the project is not
viable, they can stop or limit the project. But by already paying the expensive Building
Permit, the developers will be forced to continue the whole project even if later, market
studies would show that the project is not viable or marketable. This will result to loss of
funds which might be invested to more viable condominiums.
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Erratum: The word “subdivision project” previously mentioned on the above paragraph was
changed to “condominium”
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If the Building Permit has been made a post requirement, how will the HLURB ensure that the
condominium project or the housing units are structurally sound?
• Upon application by the developer, the HLURB will issue a Temporary License to Sell
which is valid for six months, thereafter, the developer must submit the required Building
Permit. The six months period for the temporary license is just the period given by
HLURB wherein the developer can undertake preliminary marketing activities to test the
market.
Is there anything new that the HLURB can help the government’s housing programs?
• The HLURB is currently revising its Rules of Procedures. The purpose of such revision is
to make the agency more accessible to the public, especially, the complainants against
erring developers. To be more accessible, the Board is emphasizing the summary nature
of the proceeding before it, so that the public or any person who has a complaint can read-
ily claim protection from unscrupulous developers, even without any lawyer.
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• Also, the Board is updating its Rules on the Registration of Homeowners Association and
its monitoring. Upon assumption of jurisdiction of HLURB on HOAs, it has been the con-
cern of the Board on the lack of compliance by the HOAs on the documentary require-
ments. Thus, it is trying to simplify the requirements so that it would be easier for them
to comply with the same as well as for the Board to monitor their activities.
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Subdivision Condominium Projects
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What is a subdivision project?
• Subdivision project refers to a parcel of land registered under Act No. 496 which is parti-
tioned into individual lots for residential, commercial, industrial or other purposes with
or without improvements thereon, and offered for sale to the public.
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What is a condominium project?
• Condominium project refers to the entire parcel of real property divided or to be divided
into condominium units for residential, commercial, industrial or other purposes, includ-
ing the structure thereon.
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Can a chapel be constructed in open space reserved for parks and playgrounds?
• No. Open space reserved for parks and playground is non-buildable and chapel as well
as other subdivision’s facilities may only be constructed in open space not reserved for
parks and playground.
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Can a developer sell the subdivision’s open space?
• No, because subdivision’s open space is beyond the commerce of man.
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Can an owner/developer of a subdivision project impose a height limitation on the house to be
constructed therein?
• Yes, in order to preserve the style and uniformity of project but height limitation should
not be contrary to the approved zoning ordinance the same will be deemed inoperative.
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Certificate of Registration/License To Sell
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Where can a prospective buyer check whether a subdivision project has a Certificate of Regis-
tration and License to Sell?
• He can check it with the Regional Office Of the HLURB which has jurisdiction of the place
where the project is located.
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What is the remedy of a buyer to recover his payment upon knowing that the owner/developer
of the subdivision/condominium has no license to sell?
• He may demand from the seller the refund of the amount he already paid by filling a
complaint with HLURB.
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What is the liability of the subdivision owner if he sold subdivision lots without license to sell?
What is the effect of the sale?
• The sale is valid but the owner is liable to pay administrative fine for unauthorized sell-
ing. While the buyer may opt to rescind the contract and demand for a refund or proceed
with the sale.
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Is pre-selling allowed?
• No. Pre-selling which is disposing for valuable consideration of subdivision lots or con-
dominium units in a condominium project to the public prior to the issuance of Certificate
of Registration and License to Sell is a violation of PD 957.
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Are owners/developers of the columbarium required to secure License to Sell?
• Yes, construction and/or development of columbarium and crematorium, including the
sale thereof to the public is subject to HLURB Rules and Regulations for Memorial Parks

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and Cemeteries. Thereof, the owner/developer thereof is required to secure the necessary
license to sell for selling the columbarium units to the public.
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Questions Concerning Real Estate Management
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What can be done when a buyer found out that the size of the lot in the Deed of Restrictions and
Contract to Sell that he originally signed did not match with what is indicated in the title?
• If the sale is on a per-square meter basis and the area turns out to be smaller, the buyer is
entitled to a reduction of the price. In the same way the area turns out to be bigger, the
buyer should pay for the increase in area.
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In other case, the buyer may opt to rescind the contract if he would not have bought the
property had he known of the difference in the area.
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Is a subdivision owner bound by each advertisement even though the facilities advertised are
not included in the approved plan?
• Yes
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What is the period of time to complete the facilities as advertised?
• Refer to Sec. 20 of P.D. 957.
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Who will pay for the electric consumption for street lights before the same are donated to the
LGU?
• The new IRR of PD 957 and BP 220 provide for the proportionate sharing by the subdivi-
sion owner and subdivision buyers.
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In summary: Number of APDs/ULRZs:
By Proclamation No. 1967 - 244
By Proclamation No. 2284 - 1
By Proclamation No. 1810 - 19
By NHA Approval - 20 Total – 284
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What is the significance of a parcel of land’s being within an APD/ULRZ?
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Within an APD/ULRZ:
1. Legitimate tenants who have resided on the land for ten years or more who have built
their homes on the land, and residents who have legally occupied the lands by contract,
continuously for the last ten years shall not be dispossessed of the land and shall be al-
lowed the right of first refusal to purchase the same within a reasonable time and at rea-
sonable prices.
2. No urban land can be disposed of or used or constructed on unless its disposition or use
conforms with the development and zoning plans. This is implemented through the re-
quirement of development use permit or locational clearance for projects within these ar-
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3. In cases where the tenants and residents are unable to purchase the said lands, the gov-
ernment may acquire the same by expropriation or other land acquisition techniques in
accordance with the policies of existing laws.
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May apartment dwellers invoke the “right of first refusal”?
• No. The law is explicit that it applies only to urban land
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How do we know whether or not the land that we own or the land that we lease is within an
APD or ULRZ?
• HLURB prepared books of detailed maps and land use plans for 245 APD sites declared
under Proclamation 1967 and 2284 and have condensed this to a Locational Reference
Handbook which is available to the public. This handbook presents the physical location
of the sited though maps in relation to their immediate vicinity and provides the precise
location and complete boundary description. If necessary, HLURB also issues a certifica-
tion whether or not a piece of property is within or outside of an APD.
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Did the Urban Development and Housing Act of 1992 (Republic Act No. 7279) repeal the Urban
Land Reform Law?
• No. UDHA is actually more expansive than the ULR law.
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As to Coverage:
PD 1517: Limited to areas proclaimed
RA 7279: All lands in urban and urbanizable areas, including existing areas for priority
development sites, and in other areas that may be identified by the local government
units as suitable for socialized housing.
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As to Thrust
PD 1517: Land tenancy protected, with land purchase and expropriation only as an in-
cident thereof
RA 7279: Socialized Housing as primary strategy for providing shelter to put an end to
tenancy status
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As to Beneficiaries:
PD 1517: Legitimate tenants
RA 7279: Underprivileged and homeless citizen, must not own any real property, not a
professional squatter or a member of squatting syndicates;-must be actual occupants to
avail of right of first refusal if property is government-owned or acquired.
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Homeowners Association
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Do we still need to register anew our association with the SEC after we register in HLURB?
• No, the moment a Certificate of Registration is issued, the association acquires and con-
tinues juridical personality. However, submission of financial statements and other repor-
torial requirements shall now be with the HLURB.
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Can officers of a developer collect association dues or fees from homeowners for the mainte-
nance and security of a subdivision?
• No, because association dues or fees for the maintenance and security of a subdivision can
only be collected by a property organized Homeowners Association with the consent of a
majority of the lot or unit buyers actually residing in the subdivision project (Sec. 27 of
PD 957)
Questions Concerning Real Estate Brokers and Salespersons
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Revocation of Registration as Brokers and Salesmen
• Registration may be refused or any registration granted be revoked by the Board if, after
reasonable notice and hearing, it shall determine that such applicant or registrant:
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1. Has violated any provisions of Section 11 of PD 957 or any rules or regulations being im-
plemented;
2. Has made a material false statement in his application for registration;
3. Has been guilty of a fraudulent act in connection with any sale of a subdivision lot or
condominium unit;
4. Has demonstrated his unworthiness, to transact the business of broker or salesman, as the
case may be.
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In case of charges against salesman, notice thereof shall also be given to the broker em-
ploying such salesman.
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Pending hearing of the case, the Board shall have the power to order the suspension of
broker’s or salesman’s registration provided that such order shall state the cause for the
suspension.
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The suspension or revocation of the registration of a broker shall carry with it all the sus-
pension or revocation of the registrations of all his salesmen.
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In case, the licensed brokers or salesmen decided to voluntary cease from further engag-
ing in the real estate business, the broker or salesman shall surrender his Certificate of
Registration to the Board and his/her name shall be cancelled from the Books of Register.
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Voluntary Cancellation of Registration
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In case the broker or salesman decided to discontinue his practice as a real estate agent,
the broker or salesman may apply in writing with the Board for the temporary cancella-
tion of his registration provided that said broker or salesman must renew his/her license
for the current year. If this was undertaken, and the broker or salesman decided to con-
tinue his/her practice after a period of time, shall not be penalized by the Board and/or
the DTI for his/her non-renewal of registration.
!
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!
!
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!
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5.5 TABLE 8. Planning and Design Standards for a Residential Subdivision Project
Under PD 957
PARAMETERS OPEN MARKET HOUSING MEDIUM COST HOUSING

1. Project Location Within suitable sites for housing Within suitable sites for
and outside potential hazard housing and outside potential
prone and protection areas. hazard prone and protection
areas.

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2. L a n d A l l o c a t i o n f o r !
projects 1 hectare and !
above. !
! !
a. Saleable area a. 70% (maximum)
b. Non-saleable area b. 30% (minimum)
! !
! Mandatory allocation for parks
b.1 Area allocated for parks and and playgrounds per tabulation
playgrounds for projects 1 has. & below:
above.
Density Percentage of Percentage of
(No. of Lots or Dwelling Unit Gross area allocated for parks
Gross Area Allocated for Per and playground.
Hectare) !
! !
20 & below 3.5%
21 – 25 4.0%
26 – 35 5.0%
36 – 50 6.0%
51 – 65 7.0%
Above 65 9.0%

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


less than 100 sqm and the same shall be strategically located
within the subdivision.

b.2 Area allocated for Mandatory provision of areas for community facilities such as
community facilities neighbourhood multi-purpose center for housing projects with
area q hectare and above. These areas are non-saleable. However,
the developer may provide areas for community facilities such as
schools and commercial 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 Table1)

b.3 Circulation System Observe hierarchy of roads


! !
!
PARAMETERS OPEN MARKET HOUSING MEDIUM COST HOUSING

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! ! !
3. Minimum Lot Areas ! !
! ! !
a. Single Detached 120 sqm 100 sqm
b. Duplex/Single Attached 96 sqm 80 sqm
c. Rowhouse ! !
60 sqm 50 sqm

Saleable lots designated as duplex and/or rowhouse 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 of house and lot
packages.

4. Minimum Lot Frontage !


1. Single Detached !
! !
a. corner lot 12m
b. regular lot 10m
c. irregular lot 6m
d. interior lot 3m
2. Single Attached / 8m
Duplex !
! !
3. Rowhouses 4m

5. Length of Block Maximum length of block is 400 meters, however, blocks


exceeding 250 meters shall be provided with an alley
approximately at mid-length

6. Roads Right of Way ! !


! ! !
Project size range Major road Collector Minor Major road Collector Minor
! Road Road
2.5 has, & below 10 m – 8m 10 m – 8m
! ! !
Above 2.5 - 5 has. 12 m 10 m 8m 10 m – 8m
! ! !
Above 5 – 10 has. 12 m 10 m 8m 12 m 10 m 8m
! ! !
Above 10 – 15 has. 12 m 10 m 8m 12 m 10 m 8m
! ! !
Above 15 – 30 has. 15 m 12 m 10 m 12 m 10 m 8m
! ! !
Above 30 has. 15 m 12 m 10 m 15 m 12 m 10 m
! !

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! !
! ! A 6.0 meter service road, both
! ! ends connecting to a minor
! ! road, shall be allowed for
! ! blocks not exceeding 60
meters.
PARAMETERS OPEN MARKET HOUSING
MEDIUM COST HOUSING

! ROW CARRIAGEWAY ROW CARRIAGEWAY


7. Motor Court Alley 6 5 6 5
2 2 2 2
Alley is a 2-meter wide walkway which shall be used to
break a block and to serve both pedestrians and for
emergency purposes. It shall not be used as access to
property.
Right-of-Way (ROW) of major roads shall be increased as
project size increases.
!
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.
!
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 width 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 road must
provide a setback of 3-Meter deep by 5-meter in
length at both sides of the subdivision entrance to
accommodate loading and unloading of passengers.
(See Figure 2)
3. Subdivision projects shall have provision for future
expansion where applicable, by designating a
minimum interconnecting road right-of-way of 10
meters.

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8. Hierarchy of Roads per ! !
Project Size Range ! !
! ! !
2.5 has & below Major, minor, motor court, Major, minor, motor court,
! alley alley
Above 2.5 – 5 has. Major, collector, minor, -do-
! motor court, alley !
! ! !
Above 5 – 10 -do- Major, collector, service road,
! ! minor, motor court, alley
Above 10 – 15 has. -do- !
! ! -do-
Above 15 – 30 has. -do- !
! ! -do-
Above 30 has. -do-

!
!
PARAMETERS OPEN MARKET HOUSING MEDIUM COST HOUSING

9. Roads Specification ! !
! ! !
a. Planting Strip (PS)** ! !
Sidewalk (SW) ! !
! ! !
ROW PS SW
15m 1.3 1.2
12m 0.8 1.2
10m 0.8 1.2
8m 0.4 0.6
6m (Service Road) Optional Optional

b. Road Pavement ! !
! ! !
Major Concrete/Asphalt Concrete/Asphalt
Minor Concrete/Asphalt Concrete/Asphalt
Motor Court Concrete/Asphalt Concrete/Asphalt
Sidewalk Concrete/Asphalt Concrete/Asphalt
Alley Concrete/Asphalt Concrete/Asphalt

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Concrete road pavement shall have a minimum thickness of 150
millimeters and a minimum comprehensive strength of 20.7 MPa
while roads may either be concrete of same thickness and
compressive strength or asphalt with minimum thickness of 50
millimeters.
!
Sidewalk pavement shall have a minimum comprehensive
strength of 17.2 MPa.

! Mandatory connection to appropriate public water system,


10. Water Supply centralized water supply system.
!
Each subdivision shall have at least an operational deepwell and
pump sets with sufficient capacity to provide Average Daily
Demand (ADD) to all homeowners.

! !
a. M i n i m u m Wa t e r 150 liters per capita per day for household connection
S u p p l y
Requirement

! !
b. F i r e P r o t e c t i o n Provisions for fire protection shall comply with the requirements
Demand of the Fire Code of the Philippines.

!
!
!
PARAMETERS OPEN MARKET MEDIUM COST HOUSING
HOUSING

11. Electrical Power Mandatory individual household connection to primary


Supply and alternate sources of power if services are available in
the locality.
!
Mandatory provision of street lighting per pole if 50-meter
in distance; at every other pole, if less than 50-meter in
distance.
!
Electric bills shall be proportionately shouldered by the
users thereof, prior to issuance of COC and turnover 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.

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12. Drainage System Underground
The drainage system must conform to the natural drainage
pattern of the subdivision site, and shall drain into
appropriate water bodies, public drainage system or
natural outfalls.
!
For both open market and medium cost subdivision
projects, underground drainage system shall be properly
engineered and environmentally sound, and 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 30
centimeteres.
13. Sewage Disposal !
System !
a. Septic Tank Individual septic tank shall conform to the standards and
design of the Sanitation Code of the Philippines (PD 856)
and its Implementing Rules and Regulations.

b. C o n n e c t i o n Whenever applicable, connection shall be made to an


C o m m u n i t y approved public or community sewer system subject to the
Sewer System requirements and provisions of the Sanitation code of the
Philippines and other applicable rules and regulations.

14. 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.

!
!
!
!
PARAMETERS OPEN MARKET MEDIUM COST
HOUSING HOUSING
15.Shelter Component ! !
! ! !
a. Minimum Floor ! !
Area ! !
! ! !
a.1 Single Detached 42 sqm 30 sqm
! ! !
a.2 Duplex 42 sqm 30 sqm
! ! !
a.3 Row house 42 sqm 30 sqm

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In no case shall the number of row housed exceed
20 units per block/cluster and/or be beyond 100
meters in length.

b. Minimum Level !
of Completion !
! !
b.1 Single Detached complete house (Based on the submitted
! specifications)
b.2 Duplex / Semi- !
Attached same
! !
b.3 Row house !
same
16.Setbacks/Easements !
! !
a. Front !
! Shall conform to the provisions of the
b. Side National Building Code of the Philippines
!
c. Rear
!
Abutment

!
!
!
Supply requirements and shall comply with the requirements of the local/district fire unit of the Philip-
pine National Police
!
!
!
!
!
!
!
!
!
!
5.6 Table 9: PLANNING AND DESIGN STANDARDS FOR A RESIDENTIAL SUBDIVISION
PROJECT UNDER BP 220
!
PARAMETERS ECONOMIC HOUSING SOCIALIZED HOUSING

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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 and
playgrounds for projects 1 Density % of Gross Density % of Gross
hectare & above. (No. of Lots or Area for Parks (No. of Lots or Area for Parks
! Dwelling Unit & Playgrounds Dwelling Unit & Playgrounds
! Per Hectare)
!
Per Hectare)
!
!
! 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
facilities Mandatory provision of area for neighbourhood multi-purpose center
both 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 Table2)

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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 System Observe hierarchy of roads

!
!
!
PARAMETERS ECONOMIC HOUSING SOCIALIZED HOUSING

3. Minimum Lot Area ! !


1. Single Detached 72 sqm. 64 sqm.
2. Duplex/Single-Attached 54 sqm. 48 sqm.
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 ! !


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.
2. S i n g l e A t t a c h e d / 4 m. 5. m.
Duplex
3. Row house

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

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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 ECEONOMIC SOCIALIZED HOUSING
HOUSING

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!
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
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7. H i e r a r c h y o f ! !
Roads per Project ! !
Size Range ! !
! Major, minor, motor Major, minor, motor court,
2.5 has. & below court, alley pathwalk
! -do- !
Above 2.5 – 5 has. Major, collector, -do-
Above 5 – 10 has. minor, motor court, -do-
! alley !
Above 10 – 15 has. -do- Major, collector, minor, motor
! ! court, pathwalk
Above15 – 30 has. -do- -do-
Above 30 has. -do- -do-
!
!
PARAMETERS ECEONOMIC HOUSING SOCIALIZED HOUSING
8. Roads Specification !
! !
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 0.60 m
6.5 m. optional 0.50 m
!
! Refer to Supplemental Rules and Regulations to Implement
PD 953 for specific tree species, Annex 2.B.
2. Road Pavement
! !
Major
Minor
!
Concrete/Asphalt
Motor Court Concrete/Asphalt
Sidewalk Macadam
Pathwalk/alley Macadam
Macadam

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Concrete road pavement shall have a minimum thickness of
150 milimeters and a minimum comprehensive 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.
!
! !
1. Minimum Water
Supply Req’t. 150 liters per capita per day for household connection
!
2. Fire Protection
Demand
!
Provision for fire protection facilities shall comply with the
requirements of the Fire Code of the Philippines

! !
10. E l e c t r i c a l P o w e r Mandatory individual household connection to primary and
Supply alternate sources of power if service is unavailable 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 turn 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

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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
! bearing cover.
! !
! 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 milimeters.

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
C o m m u n i t y S e w e r Whenever applicable, connection shall be made to an approved public or
System community sewer system subject to the requirements and provisions 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 ! !


! ! !
14.1 Minimum Floor ! !
Area ! !
a. Single Detached 22 sqm. 18 sqm
b.Duplex/Single 22 sqm 18 sqm
Attached ! !
c. Row house 22 sqm 18 sqm

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!
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. S i n g l e Complete house Shell house
Detached (Based on the submitted (with doors and windows to
! specifications) enclose the unit)
! same same
b. Duplex/Single ! !
Attached ! !
! same same
c. Row houses
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.
!
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.
!
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b. Access to the Dwelling Unit
!
An independent means of access to the dwelling unit shall be provided without trespass-
ing 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 space shall be located totally or distributed anywhere within the lot in such a man-
ner as to provide maximum light and ventilation into the building.
!
!
!
!
!
!
!
!
!
!
!
!
!
!
5.7 JOINT VENTURE IN REAL ESTATE
!
!
CONCEPT OF JOINT VENTURE
!
It is a partnership or joint undertaking between the owner of a piece of land as his contri-
bution in a horizontal or vertical subdivision project, and the developer who undertakes the de-
velopment, financing and technical know-how in the development of the project. More often
than not, the developer may also undertakes the marketing of the project.
!
!
FORMULA FOR JOINT VENTURE SHARING
!
Example: Based on agreed values
Fair market value of land - say P40,000,000.00
Estimated development cost (developer’s share - say 60,000,000.00
Total project cost - P100,000,000.00
!
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!
Owner’s Share = P 40,000,000 / P 100,000,000 = 40%
Developer’s Share = P 60,000,000 / P 100,000,000 = 60%
100%
!
!
!
BASIS OF SHARING
!
1a. Allocation of saleable lots based on percentage share
1b. Allocation of saleable condominium units based on percentage share
!
2. Allocation of sales proceeds =% share x Sales Proceeds (net of common expenses)
Example of common expenses:
1. realty taxes on unsold lots or condominium units
2. marketing expenses (commission, promotions, salaries of staff)
3. other expenses attributable to the project other than the development cost which is
the sole account of the developer

Most common industry practice is allocation of saleable lots or condominium units


!
REASONS FOR ENTERING INTO A JOINT VENTURE AGREEMENT
Owner - cannot sell their property;
- does not want to leave their property for sentimental reason;
- lack of financial resources to develop the property;
- in most cases, joint venture gives the owner a better return on
his investment.
!
!
Developer - limited resources to buy and develop land
- land owner does not want to sell their property
- limited cash exposure for the development of the project
!
!
!
THINGS TO CONSIDER BEFORE ENTERING INTO A JOINT VENTURE AGREEMENT
(Safety nets of owner and developer)
!
Owner - valuation of lot thru a competent appraiser;
- valuation of estimated project cost by an experienced project en-
gineer
- computation of present value (discounted value) of estimated
cash flows based on sales projection
- due diligence on the competence and credibility of the developer
Example : present and past projects of the developer;

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- financial capability of the developer;
- the period of development;
- projected return/cash flows of his investment
- non-liability clause in the contract (arising from development)
(land-owner’s safety net)
!
Developer - authenticity of the title; peaceful possession
- highest and best legal use of the project (applicable to both)
- project feasibility (profit, market, finance, technical, social desir-
ability)
- valuation of the current market value of the land by competent
appraiser
!
LANDOWNER’S EXPENSES AND UNDERTAKING
!
➢ Updating of realty tax up to the time of signing of JV contract;
➢ Answer expenses for the relocation of squatters, if there’s any; this can be passed on to the
developer should it be the arrangement
➢ To guarantee peaceful possession of developer for the account of development;
➢ To compensate the developer on damages caused by the owner;
➢ To put into writing any modification in the joint venture agreement.
➢ To compensate the joint venture agent (if applicable)
!
!
!
!
DEVELOPER’S EXPENSES AND UNDERTAKING
!
➢ Planning and technical aspect
➢ Procurement of government permits and licenses such as:
✓ Conversion permit – Department of Agrarian Reform (if applicable)
✓ Environmental Compliance Certificate – DENR
✓ Subdivision Approval – HLURB
✓ Development Permit / Locational Clearance – LGU
✓ Approval of technical description of individual titles – LMB or LRA
✓ Individual titles – Registered of Deeds
✓ Certificate of registration / License to sell – HLRUB
✓ Clearance from Laguna Lake Development Authority (LLDA) if applicable
✓ And other requirements for the development
➢ Development of the subdivision within the prescribed period (one year for every 10has.
Starting from the issuance of license to sell)
➢ Securing of performance bond
➢ Management and maintenance of the subdivision
➢ To compensate land owner/lot buyers due to negligence or fault of the developer;
➢ To put into writing any modification in the joint venture agreement

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PAREB–QCNREB : 5.4 Housing and Land Use Regulatory Board HURB
Prepared for QCNREB. Rights reserved.
➢ To compensate the joint venture agent (if applicable)
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ITEMS TO BE AGREED BY LANDOWNER AND DEVELOPER
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➢ Land value and project cost as basis for sharing;
➢ Highest and best legal use of the land
➢ Expenses attributable to the owner / developer
➢ Marketing of the subdivision / rate of commission
➢ Commission of the joint venture broker and payment (cash or lots)
➢ Collection / accounting / where to deposit titles / bank
➢ Signatories to Contract to Sell / Deed of Sale
➢ Initial prices of subdivided lots
➢ Other items not clearly mentioned in the agreement
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PAREB–QCNREB : 5.4 Housing and Land Use Regulatory Board HURB
Prepared for QCNREB. Rights reserved.

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