House panel OKs socialized housing bill
A HOUSE committee on Tuesday approved a measure requiring housing developers to set aside at least 15% of the total area or project cost of subdivisions and villages, or at least 5% of condominium projects, for socialized housing.
In a hearing, the House Committee on Housing and Urban Development passed a substitute bill amending Republic Act No. 7279, or the Urban Development and Housing Act, which presently requires the development of at least 20% of the subdivision or village’s area or cost for socialized housing.
It will also grant participating developers extensive tax exemptions, including income tax, value-added tax, capital gains tax, and documentary stamp and donor’s taxes.
The bill will establish “One-Stop Shop” offices in major cities to process housing permits within 90 days. The bill also gives two-year exclusive use of developer-contributed housing funds but requires strict liquidation and auditing through the Department of Human Settlements and Urban Development, with forfeiture of rights if funds are not used within the period.
A stiffer penalty for violations of the Balanced Housing Program will also be imposed, with fines ranging from P1 million for a first offense to P5 million and possible permanent license cancellation for repeated violations. — Pexcel John Bacon
