After reading, What Is Socialized Housing Under Republic Act No. 7279 Or The Urban Development And Housing Act Of 1992, read also What Is Republic Act No. 7279 or The “Urban Development Housing Act Of 1992”?
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Incentives are extended to the private sectors in participating in socialized housing
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Socialized housing refers to housing programs and projects covering houses and lots or homelots
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There are eligibility criteria for Socialized Housing Program Beneficiaries
Socialized housing refers to housing program 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 the “Urban Development and Housing Act of 1992”.
Who are eligible to become Socialized Housing Program Beneficiaries?
The law says:
To qualify for the socialized housing program, a beneficiary:
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Must be a Filipino citizen;
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Must be an underprivileged and homeless citizen;
Underprivileged and homeless citizens refer to the beneficiaries of the law on socialized housing and individuals or families residing in urban and urbanizable areas whose income or combined household income falls within the poverty threshold and who do not own housing facilities. Underprivileged and homeless citizens include those who live in makeshift dwelling units and do not enjoy security of tenure.
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.
Is there an incentive for private sector participating in Socialized Housing?
The law says:
Yes.
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 the private sector:
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Reduction and simplification of qualification and accreditation requirements for participating private developers;
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Creation of one-stop offices in the different regions of the country for the processing, approval and issuance of clearances, permits and licenses. The clearances, permits and licenses shall be issued within ninety (90) days from the date of submission of all requirements by the participating private developers;
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Simplification of financing procedures; and
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Exemption from the payment of the following:
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Project-related income taxes;
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Capital gains tax on raw land used for the project;
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Value-added tax for the project contractor concerned;
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Transfer tax for both raw completed projects; and
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Donor’s tax for lands certified by the local government units to have been donated for socialized housing purposes on the condition that the application for exemption, a lien on the title of the land shall be annotated by the Register of Deeds. The socialized housing development plan has already been approved by the appropriate government agencies concerned.
As for following basic services in socialized housing or resettlement areas, the same shall be provided by the Local Government Unit (LGU) or the National Housing Authority in cooperation with private developers and concerned agencies:
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Potable water;
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Power and electricity and an adequate power distribution system;
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Sewerage facilities and an efficient and adequate solid waste disposal system; and
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Access to primary roads and transportation facilities.
The provisions 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 concerned agencies in cooperation with the private sector and the beneficiaries themselves.
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