What is Socialized Housing?
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 such other benefits in agreement with this Act. — Urban Development and Housing Act (UDHA), RA 7279 [Source: SHDA]
Who are the targeted beneficiaries?
“Economic and Socialized Housing” refers to housing units which are within the affordability level of the average and low-income earners which are thirty percent (30%) of the gross family income as determined by the National Economic and Development Authority from time to time. It shall also refer to the government-initiated sites and services development and construction of economic and socialized housing projects in depressed areas. – BP 220 [Source: BP-220-Socialized-and-Economic-Housing-2]
Who are eligible for socialized housing program?
(a) Must be a Filipino citizen;
(b) Must be an underprivileged and homeless resident, 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.
Source: HLURB Law Issuances
To further reduce the cost of housing units for the benefit of the underprivileged and homeless, the private sector receives incentives like;
(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 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 from the payment of the following:
(1) Project-related income taxes;
(2) Capital gains tax on raw lands used for the project;
(3) Value-added tax for the project contractor concerned;
(4) Transfer tax for both raw completed projects; and
(5) Donor’s tax for lands certified by the local government units donated to socialized housing purposes.
These are just some of them. Other conditions apply, Click here for full transcript.
