Republic of the Philippines

City of Jloilo
OFFICE OF THE SANGGUNIANG PANLUNGSOD

EXCERPT FROM THE MINUTES Of' THE 23RD REGULAR SESSION OF

THE 8rH SANGGUNIANG PANLUNGSOD OF THE CITY OF ILOILO,
PHILIPPINES, HELD AT THE SESSION HALL, 6TH FLOOR NEW CITY
HALL BUILDING, PLAZA LIBERTAD, ILOILO CITY, ON THURSDAY,
DECEMBER 15, 2016.

PRESENT:
HON. JOSE S. ESPINOSA III
City Vice Mayor & Presiding Officer

Hon. Lady Julie Grace L. Baronda Member

Hon. Ely A. Estante, Jr. Member
Hon. Jeffrey P. Ganzon Member
Hon. R Leone N. Gerochi, Assl. Floor !,eader Member
Hon. Rey land V. Hervias, J,,ga ng mga Rarangay Pres. Ex Officio Member
Hon. Mandrie T. Malabor Member
Hon. Plaridel C. Nava II Member
Hon. Armand S. Parcon Member
Hon. Eduardo L. Pefiaredondo, Floor I.eader Member
Hon. Liezl Joy Zulueta-Salazar Member
Hon. Jose Efrain G. Trefias Ill Member
Hon. Candice Magdalane A. Tupa,, M.D. Member

ABSENT:

Hon. Joshua C. Alim (On Vaca/ion Leave) Member

I REGULATION ORDINANCE NO. 2016-336

AN ORDINANCE ESTABLISHING THE GUIDELINES FOR
THE IMPLEMENTATION OF THE FIFTEEN (15/o)
PERCENT BALANCE HOUSING CREDIT IN ILOILO CITY

Sponsored by Hon. Jose Efrain G. Trefias Ill, co-

sponsored by Hon. Eduardo L. Pefiaredondo and Hon. R
Leone N. Gerochi, duly seconded by Hon. Reyland V.
Hervias and Lady Julie Grace L. Baronda

WHEREAS, Article 13, Section 9 of our Constitution, provides that the

State shall, by law and for the common good, undertake in cooperation with the
private sector, a continuing program of urban land reform and housing which will
make available at affordable cost, decent housing and basic services to the
underprivileged and homeless citizens in urban centers and settlement areas:

WHEREAS, RA 7279, otherwise known as Urban Development and

Housing Act of I 992, was passed and approved on March 29, 1992;
 Reg_ Ord No ... .2QJ6~336 Dec 15 2016 Page 2

WHEREAS, RA 10884 which took effect laqt July 17, 2016 amended
Section 18 of RA 7279, requires that developers of proposed subdivisions shall
develop an area for socialized housing equivalent to at least fifteen percent ( 15%)
of the total subdivision area or total subdivision project cost and at least five
percent (5%) of condominium area or project cost, at the option of the developer,
in accordance with the standards as provided by law;

WHEREAS, RA 7279 amended by RA 10884 provided options for

developers on this compliance;

WHEREAS, the lloilo City Government is aware that some of the

subdivision developers in lloilo City were able to get housing credits from HLUR13
for their 15% balanced housing compliance in other cities and municipalities in the
Visayas which enable them to get licenses to Sell;

WHEREAS, in order to sustain the housing development in lloilo City in

favor of the middle class and the underprivileged families there is a need to
provide a mechanism that would compel the private subdivision/ housing
developers to implement their 15%, thus, there is an urgent need to enact an
ordinance that would compel the developers to comply their fifteen percent (15%)
balanced housing within the City oflloilo;

NOW THEREFORE, be it ordained by the Sangguniang Panlungsod of the

City of lloilo, that:

Section 1. Title - This Ordinance shall be known as the "AN

ORDINANCE ESTABLISHING THE GUIDELINES FOR THE
IMPLEMENTATION OF THE FIFTEEN (15/o) PERCENT BALANCE
HOUSING CREDIT IN ILOILO CITY
Section 2. Statement of Policy - It shall be the policy of lloilo City
Government to adopt a continuing housing and resettlement program which will
I make available at reasonable and affordable cost decent housing to its constituents.

Section 3. Definition of Terms - As used in this Ordinance the following

are defined:

a) Balanced Housing - refers to the housing programs whereby the

developers of proposed subdivisions, town houses and the like including
condominium development for purposes other than for socialized
housing, is required to develop an area for socialized housing equivalent
to at least fifteen percent ( 15%) of the total subdivision area or total
subdivision project cost, at the option of the developer.

b) Community Mortgage Program (CMP) - a program of the government

intended for the underprivileged and homeless who organized themselves
to form into a Community Association (CA) and have offered to
 Reg. Ord No_ 2016-336 Dec. 15 2016 Page 3

purchase the land they have been occupying or the land they have
planned to relocate themselves.

c) Developers - refers to individuals, partnerships, corporations or agents

thereof who develop or improve a subdivision, townhouse and similar
development project for residential purpose;

d) Housing and Land Use Regulatory Board (HLURB) - governing body

for the enforcement of the Balance Housing as stated in RA No. 7279 and
providing for the guidelines/ options in HLURB Memorandum Circulars
01-05 Series of2013;

e) Housing and Urban Development Coordinating Council (HUDCC) -

governing body who shall jointly determine with National Economic and
Development Authority (NEDA) and set separate socialized housing
price ceilings for socialized subdivision which shall be mandatorily
reviewed or revised every two (2) years.

f) Iloilo City Urban Poor Affairs Office - office that established the
Social Development Fund by virtue of Regulation Ordinance 2015-407;

g) Joint Venture - refers to the commitment or agreement by two (2) or

more persons to carry out a specific or single business enterprise for their
mutual benefit, for which purpose they combine their funds, land
resources, facilities and services;

h) National Economic and Development Authority (NEDA) - governing

body who shall jointly determine with Housing and Urban Development
Coordinating Council (HUDCC) and set separate socialized housing
price ceilings for socialized subdivision and socialized condominium
projects which shall be mandatorily reviewed or revised every two (2)

/ years.

i) New Settlement - refers to any new, large scale development consisting

of one or several subdivision projects planned to provided housing, work
places and facilities within a more or less self-contained environment;

j) Project Area refers to:

a. Subdivision Project without housing component, the gross

developed land area
b. Subdivision Project with housing component:
b. 1. gross development land area
b.2. aggregate floor area of all housing units
 Reg_ Ord NQ 2016-336 Dec. 15 2016 Page4

k) Project cost - refers to the cost of the project based on the current
market value of the raw land plus estimated land estimated development
cost plus estimated housing cost:

I) Socialized Housing - to housing programs and projects covering houses

and lots or 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 RA 7279 amended by RA 10884;

m) Socialized Housing Beneficiaries - refer to the homeless and under

privileged constituents of lloilo City whose household income falls
below poverty threshold (as defined by NEDA) and who are registered
and qualified in accordance with RA 7279;

n) Subdivision Project - refer to the proposed residential subdivision

projects which shall be the basis for computing the 20% requirement for
socialized housing;

o) Trust Fund - fund collected from the Developer's Option of the 15% of
the Project Cost which shall form part of the Social Development Fund;

p) UDHA - Urban Development and Housing Act of 1992.

Section 4. Coverage - lhis ordinance shall apply to all residential

subdivision, townhouse projects and/or expansion of existing residential
subdivision, and townhouse projects within Iloilo City not otherwise exempted
under this ordinance or RA 7279 as amended by RA l 0884, seeking approval of
development permit from the Sangguniang Panlungsod of Iloilo City, including
those which are still pending upon effectivity of this ordinance.

/ Section 5. Exemptions - exemptions enumerated in Section 5 of RA 7279.

Section 6. Mode of Compliance - Owners and/or developers of

development projects covered by this ordinance shall have the following options in
compliance to the balance housing in lloilo City as approved by the Sanguniang
Panlungsod of lloilo City thereto:

a. For main subdivision projects which are limited to the sale oflots only:

a.1. Develop a land area equivalent to fifteen (15%) percent of the total
area of the main subdivision project shall be developed for socialized
housing, or
 Page 5

a.2. A socialized housing project equivalent to fifteen (15%) percent of

the main subdivision total project cost.

b. Subdivision projects which venture in to the sale of the house and lot
packages

b.l Develop a land area equivalent to fifteen (15%) percent of the total
area of the subdivision project, or

b.2. A socialized housing project equivalent to fifteen (15%) percent of

its total project cost.

Section 7. Other Modes of Compliance - Owners and/ or developers of the

subdivision projects may also comply through the following options:

a. Development of a new settlement sites in Iloilo City as maybe authorized

or credited by the Sangguniang Panlungsod thru the Committee of Urban
Planning, Housing & Land Development, Zoning, Expropriation,
Assessment & Land Acquisition and recommendation of lloilo City
Urban Poor Affairs Office (ICUPAO). Such sites shall benefit the
qualified socialized housing beneficiaries of lloilo City as certified by the
Sangguniang Panlungsod ; or

b. upgrading and development of Jloilo City slum/blighted areas as maybe

recommended by the Sangguniang Panlungsod thru the Committee of
Urban Planning, Housing & Land Development, Zoning, Expropriation,
Assessment & Land Acquisition and Iloilo City Urban Poor Affairs
Office (!CUP AO); or

c. enter Joint Venture Agreement with the lloilo City government to

develop a socialized housing project, provided, the developer's
participation shall only be limited to fifteen (15%) percent equivalent to
the cost of its subdivision projects upon the recommendation of the
Sangguniang Panlungsod thru the Committee of Urban Planning,
Housing & Land Development, Zoning, Expropriation, Assessment &
Land Acquisition and Jloilo City Urban Poor Affairs Office (ICUPAO),
but if the developer has failed to complete the development of the
project, the owner and/or developer of the main subdivision or
condominium project shall be solidarily liable only to the extent of
compliance to the balanced housing requirement regardless of the
provisions of their joint venture agreement; or

d. Participate in the Community Mortgage Program of the Social Housing

Finance Corporation (SHFC) in an an1ount equivalent to at least twenty
fifteen (15%) percent of the total subdivision project cost as approved by
I

B$0-_Q:i:1;t. No 2016)36 Dec. 15 2016 Page 6

the Sangguniang Panlungsod thru the Committee of Urban Planning,

Housing & Land Development, Zoning, Expropriation, Assessment &
Land Acquisition;

ln case of expansion or alteration of the main subdivision project

resulting to an increase in the total subdivision project cost, the developer thereof
shall be required additional compliance to be computed based on the increase in
the total subdivision project cost.

Section 8. Application - Upon receipt of an application for the approval

of a subdivision plan for issuance of development permit by the Sangguniang
Panlungsod thru the Committee of Urban Planning, Housing & Land
Development, Zoning, Expropriation, Assessment & Land Acquisition, a
Certificate of Compliance shall be issued only when the said Committee shall
deem the application complete and that an Ordinance shall be passed by the
Sangguniang Panlungsod for its compliance.

Section 9. Penalty - Violation of any provision of this ordinance shall he

meted upon final conviction by court of competent jurisdiction to the individual
owner/ developer and in case of a corporation, herein represented by its President,
be punished by imprisonment of not exceeding one ( l) year or fine of not
exceeding FIVE THOUSAND PESOS (P5,000.00) or both at the discretion of the
court. The penalties herein imposed shall be without prejudice to the disapproval
of the application for subdivision or building permit or cancellation of one already
issued.

Section I 0. Repealing Clause - All Ordinances, Executive Orders or any

issuances by the Mayor inconsistent with the provisions of this ordinance are
hereby repealed or modified accordingly.

/ Section 11. Separability Clause - If for any reason any section or provision
of this ordinance or any portion thereof of the application of such section,
provision or portion thereof to any person or developer is declared invalid, illegal
or unconstitutional, the remainder of this ordinance shall remain effective and
operational.

Section 12. Effectivity Clause - This ordinance shall take effect ten (10)
days after its publication in a newspaper of general circulation in the Cities and
Province of lloilo.

ENACTED, December 15, 2016

Reg. Ord. No_ 2016-;336 Dec_ 15 2016 Page 7

I hereby certify to the correctness of the above q ed ordinance.

UTH H. ARROYi
Seer tary to the Sangg

ATTESTED AND CERTIFIED

TO BE DULY ENACTED: APPROVED:

Temporary Presiding Officer

lnats-(~RN 16-12-li20 (corollary)