Condo Developers mandated to add socialized housing
Condominium developers were mandated to add socialized housing projects.
Republic Act 7279 or the Balanced Housing Development Act, RA 10884 was recently amended and mandates condominium developers to build a socialized housing equivalent to at least 5% of the total floor area of their condominium projects or total project cost.
The new law requires condominium developers to build a socialized housing counterpart of their projects, which will help ordinary people and the poor a chance to own a home. The compliance expanded from the used to be subdivision developers only to now include condominium developers as well.
Last July 17 RA 10884 officially became a law. Condominium developers can comply this requirement by developing socialized housing either through joint venture projects for socialized housing with;
- Local Government Unit (LGU)
- Other housing agencies
- another private developer
- non-government organizations (NGO)
- or by participating in a new project under community mortgage program
To encourage the developers to comply to this new mandate incentives are prepared by the government for the developers. One of this incentive includes exemption from payment of;
- project-related income taxes
- capital gains tax on raw lands of the project
- value-added tax (VAT) for the project contractor concerned
- transfer tax for both raw and completed projects
- donor’s tax for lands certified by LGU for socialized housing
On the other hand, developers who were unable to or will not comply with the new mandated law will be penalized. Which in extreme cases includes cancellation of developers license to do business.
This is good news for us Filipinos. To avail this upcoming socialized projects you must have active PAG-IBIG Fund Membership. Socialized housing in the Philippines would require you to be an active member of PAG-IBIG Fund to avail. If you are not a member yet, you can visit their website at http://www.pagibig.gov.ph and sign up for membership. Then, a text message will be sent to your active mobile phone number for your online transaction code. Visit your nearest PAGIBIG FUND office brings with you, your NSO birth certificate and 2 valid government ID’s or company ID and pay for your first-month membership contribution. You may choose to pay one time for the whole year or two years or pay it monthly to PAGIBIG.
If you need further assistance or you have questions about socialized housing, feel free to contact our real estate agents and brokers in Filipino Homes.
