The Chamber of Real Estate Builders’ Association (Creba) remains hopeful that the amendatory bill to the Urban Development and Housing Act of 1992—a critical policy that will enable developers to reduce the country’s huge housing backlog—will still gain the last-minute approval of President Aquino, after hurdling Congress earlier this week.
Speaking to Creba members during the association’s monthly meeting on Thursday, National Chairman Charlie A.V. Gorayeb underscored the need for Aquino to sign the bill into law to encourage more developers to ramp up housing production.
The measure, Gorayeb said, will allow the real-estate industry to respond better to the rising backlog in housing, estimated to be already at 6 million units this year.
“Early this week, we were informed that amendments to Republic Act [RA] 7279 were ratified and it only needs to be enrolled to Congress to be part of its data bank, and be brought to Malacañang for signature. Hopefully, before Mr. Aquino steps down, this will be signed into law,” Gorayeb said in his speech.
RA 7279 directs subdivision-project developers to build socialized housing equivalent to either 20 percent of the total project area, or the cost of their main developments, with a joint-venture partner.
Socialized-housing projects cater to the underprivileged sector of the society.
Creba tried its best to have the 20-percent requirement eased to 15 percent, and was able to convince Congress of the need to amend the bill.
“The 20 percent [requirement] is not a guarantee that the developer will allocate, because that’s just like tax, when it is too high, it is prohibitive,” he told the BusinessMirror on the sidelines of the event.
The 15-percent requirements in the Congress-approved “Balanced Housing Development Program Amendments” bill is easier to comply with, he added.
“Even if the percentage is decreased to 15 percent, there will be an increase in terms of producing units,” Gorayeb reasoned.
The Creba national chairman said the easier requirement will be encouraging enough to entice more developments, especially with the inclusion of condominium developers in the socialized-housing requirement.
The amendments mandate condominium developers to allocate 5 percent of their projects for socialized housing.
“We were able to convince the senators and congressmen not to impose the 20-percent allocation for condominium development, and they acceded to just impose 5 percent of the gross floor area; that is a relief for condominium developers,” Gorayeb added.
An added feature of the amendatory bill allows the construction of medium-rise condominiums in urban areas, putting affordable housing units closer to the workplace of low-income urban workers.
Notably, under the proposed legislation, medium-rise condominium development will now be accorded the same tax exemptions and fiscal benefits presently given to subdivision projects—an added encouragement for developers to produce more housing units.
The proposed bill is part of Creba’s five-point agenda bared last year. The blueprint advocates several bills to achieve the group’s objectives, but revolves around three general principles: financing, land and governance.
The five-point agenda consists of the following: long-term and affordable funds for socialized and economic housing; affordable homes for employees in urban areas; lands for residential, commercial and industrial developments; efficient local government housing regulations; and full-fledged housing and urban-development department.