January 2, 2013

HLURB MEMORANDUM CIRCULAR NO. 01-13

Pursuant to Section 7 of the

RULE I

General Provisions

SECTION 1. Objective. These guidelines aim to provide a uniform application, interpretation, usage, and implementation of Section 3 of CIDTcH

SECTION 2. Scope of Application. These guidelines shall apply to developers of main subdivision projects complying with Section 18 of

Proposed subdivision projects to be sold at or below the prevailing price ceiling for socialized housing, as may be fixed by the Housing and Urban Development Coordinating Council (HUDCC), shall be exempt from the coverage of this Rules.

SECTION 3. Definition of Terms. For purposes of these guidelines, the following terms or words shall, unless the context indicates otherwise, mean or be understood as follows:

3.1 "Cease and Desist Order" refers to an order issued by HLURB directed against the developer of a main subdivision project, enjoining it from further selling lots and/or units in the said project.

3.2 "Compliance Certificate" refers to a document that proves that the developer of a main subdivision project has complied with the balanced housing development requirement of

3.3 "Compliance Project" refers to the entire or a portion of the socialized housing project utilized to comply with the balanced housing development requirement of

3.4 "Comprehensive Land Use Plan" refers to a document embodying specific proposals for guiding and regulating the growth and development of a city or municipality considering all sectors significant in the development process; e.g., demography, socio-economic, infrastructure and utilities, land use and local administration, within the territorial jurisdiction of the city or municipality, as approved or ratified by the Sangguniang Panlalawigan or HLURB.

3.5 "Develop an area" refers to the completion of the socialized housing project including the provision of basic amenities and facilities in accordance with the approved development plan and/or as represented in brochures and advertisement.

3.6 "Developer" refers to the person, natural or juridical, who develops or improves the main subdivision project or the compliance project for and in behalf of the owner thereof. The land owner who develops a subdivision project directly shall be considered as a developer.

3.7 "Land Development" refers to land clearing and grubbing, road construction, installation of power and water distribution system, construction of drainage and sewerage system and other developments contained in the approved plans and/or in the brochure and advertisement.

3.8 "Main Subdivision Project" refers to the proposed residential subdivision project required to comply with the twenty percent (20%) balanced housing development requirement of

3.9 "Socialized Housing Project" refers to residential subdivision projects, and multi-level and medium rise housing projects and condominium projects, sold at or below the prevailing price ceiling for socialized housing and which comply with the standards under DCIEac

3.10 "Subdivision Project" refers to a tract or parcel of land registered under the

3.11 "Total Subdivision Project Cost" refers to the total cost of: (i) raw land, based on the zonal value at the time of application for subdivision development permit, (ii) land development and (iii) housing component construction.

3.12 "Zoning Ordinance" refers to a local measure which embodies regulations affecting land use, the demarcation of a city into zones (areas/districts) and the establishment of regulations to govern the use of land and the location, bulk, height, shape, use, population density and coverage of structures within each zone.

RULE II

Compliance

SECTION 4. Manners of Compliance. For purposes of complying with Section 3 of

4.1 with an area equivalent to at least twenty percent (20%) of the total subdivision area of the main subdivision project; or

4.2 with a cost equivalent to at least twenty percent (20%) of the total subdivision project cost of the main subdivision project.

If the compliance project is a socialized condominium project, its total area shall be the gross land area and the gross floor area, and its total condominium project cost shall be the cost of raw land based on its zonal value at the time of application for condominium development permit and total building construction cost.

In case of expansion or alteration of the main subdivision project resulting to an increase in the total subdivision area or total subdivision project cost, the developer thereof shall be required additional compliance to be computed based on the increase in the total subdivision project area or total subdivision project cost.

SECTION 5. Computation and Allowable Combination of Compliance. If the socialized housing project will not be equivalent to at least 20% of the total subdivision area or total subdivision project cost of the main subdivision project, it shall not be considered as full compliance. In such a case, the developer may combine one mode of compliance with other allowable modes except as proscribed in Section 6 of

SECTION 6. Future or Subsequent Utilization of a Compliance Project.

6.1 Future Utilization. A developer may develop a socialized housing project as compliance for its future main subdivision project/s.

6.2 Subsequent Utilization. A developer may develop a socialized housing project in excess of the required area or cost of its main subdivision project and utilize the excess thereof for the same developer's other main subdivision projects.

In both cases, such future or subsequent utilization shall likewise be declared in the application form for Certificate of Registration and License to Sell (CR/LS) of the compliance project.

SECTION 7. Minimum Design Standards. The compliance project shall be subject to the minimum design standards promulgated pursuant to

SECTION 8. Location of Compliance Project. A compliance project shall be located in the same city or municipality as the main subdivision project, whenever feasible. Otherwise, it may be allowed elsewhere in the country, preferably within a zone designated in the comprehensive land use plan and zoning ordinance as a socialized housing site or in a settlement area where it is allowed. SAcCIH

SECTION 9. Completion. The compliance project shall be completed within one (1) year from the issuance of its LS or such other period of time as may be fixed by HLURB.

SECTION 10. Compliance Certificate. The compliance certificate shall be issued by HLURB to the developer of the main subdivision project upon submission of proof of completion of the compliance project in accordance with Section 21 hereof.

RULE III

Application for Certificate of Registration and License to Sell and Annotations

SECTION 11. Certificate of Registration and License to Sell. The main subdivision project and its compliance project shall be issued separate CR/LS, subject to the procedures and documentary requirements under the existing

However, in case the main subdivision project and the compliance project are both under

SECTION 12. Application for Certificate of Registration and License to Sell of the Main Subdivision Project. The developer shall submit a copy of the LS of the compliance project with the required annotations in accordance with Section 19 hereof, in addition to the documents required to be submitted upon the filing of application for CR/LS of the main subdivision project in accordance with the existing

SECTION 13. Application for Certificate of Registration and License to Sell of Main Subdivision Project Utilizing a Previously Declared Compliance Project. The developer registering a new main subdivision project which will utilize a previously declared compliance project for future or subsequent utilization in accordance with Section 6 hereof shall first submit the original LS of the compliance project to the RFO that issued it for the annotation of the following new or additional items:

13.1 The name and location of the new main subdivision project;

13.2 If only a portion of the socialized housing project is being utilized as compliance for the main subdivision project, the particular block numbers and lot numbers or unit numbers of the socialized housing project being allotted as compliance for the new main subdivision project and the total area or the total cost of such blocks and lots or units of the socialized housing project; and

13.3 The available balance for future or subsequent utilization in terms of remaining area or cost and number of lots or units.

If the main subdivision is to be registered and licensed in another RFO, the developer shall submit therein a certified true copy of the LS of the previously declared compliance project with the required new or additional annotations as above-stated.

SECTION 14. Application for Certificate of Registration and License to Sell of the Compliance Project. In addition to submitting the documents required upon the filing of application for CR/LS of the compliance project in accordance with the existing

14.1 The name and exact location of the main subdivision project; and

14.2 Either the total subdivision area or total subdivision project cost of the main subdivision project, depending on the manner of compliance selected.

SECTION 15. Application for Certificate of Registration and License to Sell of the Compliance Project to be Developed by a Subsidiary for Future or Subsequent Utilization. If the socialized housing project to be registered is likewise intended for subsequent utilization in accordance with Section 6.2 hereof, the developer shall indicate the following information in the application for CR/LS:

15.1 The name and exact location of the current main subdivision project; ESAHca

15.2 Either the total subdivision area or total subdivision project cost of the current main subdivision project, depending on the manner of compliance selected;

15.3 The particular block numbers and lot numbers or unit numbers of the socialized housing project being allotted as current compliance, and either the total cost or total area of such blocks and lots or units of the socialized housing project; and

15.4 The available balance for subsequent utilization in terms of remaining area or cost and number of lots or units.

If the socialized housing project to be registered is intended for future utilization in accordance with Section 6.1 hereof, such intention shall likewise be indicated in the application for CR/LS.

SECTION 16. Publication. Upon receipt of the Notice to Publish from the RFO, the developer shall cause the publication of the notice of filing of registration statement and the posting of billboard notices at the sites of both the main subdivision and compliance projects. In addition to the requirements of PD 957 and its IRR or the

16.1 For the main subdivision project:

16.1.1 The name and location of the compliance project; and

16.1.2 The particular block numbers and lot numbers or unit numbers of the socialized housing project being allotted as current compliance, if only a portion of the socialized housing project is being utilized as compliance for the main subdivision project.

16.2 For the compliance project:

16.2.1 The name and location of the main subdivision project; and

16.2.2 The particular block numbers and lot numbers or unit numbers of the socialized housing project being allotted as compliance, if only a portion of the socialized housing project is being utilized as compliance for the main subdivision project.

If the developer of the main subdivision project is combining different modes of compliance in accordance with Section 5 hereof, the other modes and the respective amounts or costs of contribution, participation, purchase, subscription or provision shall likewise be stated in the notice of filing of registration statement.

The format of the notice of filing of registration statement is hereto attached as Annex "A".

SECTION 17. Posting of Billboard Notices. The billboard notices required by the

The format of the billboard notice is hereto attached as Annex "B".

SECTION 18. Submission of Affidavits of Publication and Posting. The developer shall submit the Affidavit of Publication executed by the publisher and the Affidavit of Posting of Billboard Notice to the RFO where the projects are respectively registered. The Affidavit of Posting of Billboard Notice shall state therein the fact of posting of the billboard notices at the sites of both the main subdivision and compliance projects and a photograph of each of the billboard notices clearly showing the locations where they are posted shall be attached and annexed to the affidavit.

The pro-forma copy of the Affidavit of Posting of Billboard Notice is hereto attached as Annex "C".

SECTION 19. Annotations on and Issuance of the Certificate of Registration and License to Sell of the Compliance Project. Upon submission of all of the required documents for registration and licensing of the compliance project, the RFO shall prepare its CR/LS and cause the annotation of the following on the LS of:

19.1 The compliance project:

19.1.1 The name and location of the main subdivision project; and DHSACT

19.1.2 Either the total subdivision area or the total subdivision project cost of the main subdivision project depending on the manner of compliance.

19.2 The compliance project being registered for subsequent utilization:

19.2.1 The name and location of the current main subdivision project; and

19.2.2 Either the total subdivision area or the total subdivision project cost of the current main subdivision project depending on the manner of compliance.

19.2.3 The particular block numbers and lot numbers or unit numbers of the socialized housing project being allotted as current compliance and either the total area or total cost of such blocks and lots or units of the socialized housing project; and

19.2.4 The available balance for subsequent utilization in terms of remaining area or cost and number of lots or units.

If the RFO finds everything complete and in order, it shall approve and release the CR/LS of the compliance project.

SECTION 20. Annotations on and Issuance of the Certificate of Registration and License to Sell of the Main Subdivision Project. Upon submission of all of the required documents for registration and licensing of the main subdivision project, the RFO shall prepare its CR/LS and cause the annotation of the following on its LS:

20.1 The name and location of the compliance project;

20.2 The LS number of the compliance project and date of its issuance;

20.3 The total subdivision area or total subdivision project cost of the socialized subdivision project or the total area or total condominium project cost of the socialized condominium project, depending on manner selected; and

20.4 If only a portion of the socialized housing project is being utilized as compliance for the main subdivision project, the particular block numbers and lot numbers or unit numbers of the socialized housing project being allotted as compliance, and either the total area or total cost of such block numbers and lot numbers or units of the socialized housing project.

If the RFO finds everything complete and in order, it shall approve and release the CR/LS of the main subdivision project.

RULE IV

Compliance Certificate

SECTION 21. Issuance of Compliance Certificate. A compliance certificate shall be issued to the main subdivision project upon full compliance with the balanced housing development requirement of

21.1 If the main subdivision and compliance projects are registered in the same RFO:

21.1.1 Upon issuance of a Certificate of Completion to the compliance project, if the entire socialized housing project constitutes full compliance for the main subdivision project; or

21.1.2 If only a portion of the compliance project is being utilized as compliance for the main subdivision project, upon issuance by the RFO of a certification attesting that the particular blocks and lots or units of the socialized housing project allotted as current compliance for the main subdivision project, together with the required roads and access to ingress or egress, the utilities and amenities, and the required open space, have been completely developed. DHSCEc

21.2 If the main subdivision and compliance projects are registered in two different RFOs:

21.2.1 Upon submission by the developer of a certified true copy of the Certificate of Completion issued to the compliance project, if the entire socialized housing project constitutes full compliance for the main subdivision project; or

21.2.2 If only a portion of the compliance project is being utilized as compliance for the main subdivision project, upon submission by the developer of a certification from the RFO where the compliance project is registered attesting that the particular blocks and lots or units of the socialized housing project allotted as current compliance for the main subdivision project, together with the required roads and access to ingress or egress, the utilities and amenities and the required open space, have been completely developed.

If the developer avails of the allowable combination of modes of compliance, the compliance certificate shall only be issued upon completion of all the component modes of compliance.

RULE V

Monitoring, Sanctions and Remedies

SECTION 22. Monitoring. Both the main subdivision project and the compliance project shall be subject to the regular monitoring activity of the RFO where each project is registered.

SECTION 23. Suspension or Revocation of License to Sell. The LS of the main subdivision project shall be suspended or revoked and a CDO shall be issued against its developer in case the LS of the compliance project is suspended or revoked in accordance with existing HLURB substantive and procedural rules, on the ground, among others, of non-completion of development of the compliance project within the period fixed by HLURB.

Any order of suspension or revocation issued against the compliance project shall be reported, within five (5) working days from the issuance of the said order, by the RFO where the compliance project is registered to the RFO where the main subdivision project is registered in order that appropriate sanctions may be imposed on the main subdivision project.

The RFO may lift the CDO upon:

23.1 Reinstatement of the LS of the compliance project; or

23.2 Submission of proof of a different full compliance by the developer without prejudice to the liabilities that the developer may have incurred in the development of the original compliance project.

SECTION 24. Sanctions. The imposition of fines and other administrative sanctions shall be in accordance with the schedule and guidelines promulgated by HLURB.

SECTION 25. Effect of Non-Completion. The application for the issuance of CR/LS of a developer for a new main subdivision project anywhere in the Philippines shall not be accepted or shall be denied if any of its compliance projects for any of its main subdivision projects has not been completed within the period fixed by HLURB.

RULE VI

Separability and Effectivity

SECTION 26. Separability Clause. The provisions of these guidelines are hereby declared separable and, in the event that any provision herein is declared null and void, the validity of all other provisions shall not be affected thereby.

SECTION 27. Effectivity Clause. These guidelines shall take effect immediately.

For strict compliance and implementation.

(SGD.) ANTONIO M. BERNARDO
Commissioner and Chief Executive Officer
Housing and Land Use Regulatory Board

ANNEX A

NOTICE OF FILING OF REGISTRATION STATEMENT FOR THE MAIN SUBDIVISION PROJECT

HOUSING AND LAND USE REGULATORY BOARD
(Regional Field Office)
Office Address

NOTICE

Notice is hereby given that _______________________ (OWNER/DEVELOPER) has filed with this Office a sworn registration statement for the sale of ___________________ (LOTS/HOUSE AND LOTS) in ___________________________ (NAME OF MAIN SUBDIVISION PROJECT) located at ______________ (LOCATION) and more particularly described as ______________ (LOT/PSD NO.) containing an area of ________ sq.m. and covered by TCT No. _______________. TacADE

The foregoing project is utilizing _______________________ (NAME OF COMPLIANCE PROJECT) located at _______________ (LOCATION) as its compliance pursuant to Section 18 of Republic Act No. 7279.

All papers relative thereto shall, upon request and payment of processing fee, be available for inspection during business hours by any person having legal interest thereon.

Absent any legal impediment, the above-cited project is deemed registered and a certificate, in evidence thereof, shall forthwith be issued after five (5) days from the last day of publication.

________________
PLACE OF ISSUE,

____________________
Regional Officer

PILIPINO VERSION OF NOTICE OF FILING OF REGISTRATION STATEMENT FOR THE MAIN SUBDIVISION PROJECT (PANGUNAHING PROYEKTO)

HOUSING AND LAND USE REGULATORY BOARD
(Tanggapang Rehional)
Lugar ng Tanggapan

PAUNAWA

Ipinagbibigay-alam na ang __________________ (MAY-ARI/DEVELOPER) ay naghain sa Tanggapang ito ng sinumpaang aplikasyon para sa pagbebenta ng mga ________________ (LOTE/BAHAY AT LOTE) sa ______________________ (PANGUNAHING PROYEKTO) na matatagpuan sa ____________ (KINAROROONAN) at sinasakop ng ________________ (LOT/PSD NO.) sa ilalim ng ______________ (TITULO BLG.).

Ang nasabing proyekto ay ginagamit ang _______________ (PROYEKTONG TAGATUPAD) na matatagpuan sa ______________ (KINAROROONAN) bilang pagtupad sa Seksyon 18 ng Batas ng Republika Blg. 7279.

Lahat ng mga kasulatang kaugnay nito ay maaaring suriin ng sinuman na nagtataglay ng legal na interes dito matapos humiling ng pagsusuri at magbayad ng kaukulang halaga sa tanggapang ito.

Kapag walang sagabal na legal, ang proyektong nabanggit ay ituturing na rehistrado at maaari nang bigyan ng sertipiko bilang katibayan nito, pagkalipas ng limang (5) araw mula sa huling paglalathala.

________________________
LUGAR NG TANGGAPAN,

___________________
Pinunong Rehional

NOTICE OF FILING OF REGISTRATION STATEMENT FOR THE COMPLIANCE PROJECT

HOUSING AND LAND USE REGULATORY BOARD
(Regional Field Office)
Office Address

NOTICE

Notice is hereby given that _______________ (OWNER/DEVELOPER) has filed with this Office a sworn registration statement for the sale of _______________ (LOTS/HOUSE AND LOTS/UNITS) in __________________ (NAME OF COMPLIANCE PROJECT) located at ________________ (LOCATION) and more particularly described as ________________ (LOT/PSD NO.) containing an area of _______ sq.m. and covered by TCT No. ________.

The foregoing project is being utilized as compliance for _______________________ (NAME OF MAIN SUBDIVISION PROJECT) located at ____________________, in accordance with Section 18 of Republic Act No. 7279.

All papers relative thereto shall, upon request and payment of processing fee, be available for inspection during business hours by any person having legal interest thereon. TCDcSE

Absent any legal impediment, the above-cited project is deemed registered and a certificate, in evidence thereof, shall forthwith be issued after five (5) days from the last day of publication.

________________
PLACE OF ISSUE,

____________________
Regional Officer

PILIPINO VERSION OF NOTICE OF FILING OF REGISTRATION STATEMENT FOR THE COMPLIANCE PROJECT
(PROYEKTONG TAGATUPAD)

HOUSING AND LAND USE REGULATORY BOARD
(Tanggapang Rehional)
Office Address

PAUNAWA

Ipinagbibigay-alam na ang _________________ (MAY-ARI/DEVELOPER) ay naghain sa Tanggapang ito ng sinumpaang aplikasyon para sa pagbebenta ng mga __________________ (LOTE/BAHAY AT LOTE/YUNITS) sa _________________ (PROYEKTONG TAGATUPAD) na matatagpuan sa __________________ (KINAROROONAN) at sinasakop ng _____________ sa ilalim ng ___________ (TITULO BLG.).

Ang nasabing proyekto ay ginagamit ng ____________________ (PANGUNAHING PROYEKTO) na matatagpuan sa ________________ (KINAROROONAN) bilang pagtupad sa Seksyon 18 ng Batas Republika Blg. 7279.

Lahat ng mga kasulatang kaugnay nito ay maaaring suriin ng sinuman na nagtataglay ng legal na interes dito matapos humiling ng pagsusuri at magbayad ng kaukulang halaga sa tanggapang ito.

Kapag walang sagabal na legal, ang proyektong nabanggit ay ituturing na rehistrado at maaari nang bigyan ng sertipiko bilang katibayan nito, pagkalipas ng limang (5) araw mula sa huling paglalathala.

________________________
LUGAR NG TANGGAPAN,

___________________
Pinunong Rehional

ANNEX B

BILLBOARD NOTICE

Main Subdivision Project

Compliance Project

ANNEX C

AFFIDAVIT OF POSTING OF BILLBOARD NOTICE FOR THE MAIN SUBDIVISION PROJECT

Republic of the Philippines ]
_______, _____________ ] s.s.

AFFIDAVIT OF POSTING OF BILLBOARD NOTICE

I, ______________, Filipino, of legal age, with residence and postal address at _____________________, after being sworn in accordance with law, hereby depose and state:

1. That I am the _____________ (POSITION) of ____________ (OWNER/DEVELOPER); ECDAcS

2. That said corporation is the owner/developer of _____________ (NAME OF MAIN SUBDIVISION PROJECT) located at ____________________ (LOCATION) which is the subject of an application for Certificate of Registration and License to Sell before the Housing and Land Use Regulatory Board (HLURB);

3. That ____________________ (OWNER/DEVELOPER) has caused the posting of a 3' X 6' billboard notice in front of the project site in compliance with the requirements of the HLURB;

4. That stated in the said billboard notice are the following:

5. That a billboard notice was likewise posted at the site of ________________ (NAME OF COMPLIANCE PROJECT) located at ___________________; and

6. Photographs of the two billboard notices as posted in front of the project sites are hereto attached as ANNEXES A and B hereof.

IN WITNESS WHEREOF, I hereunto affix my signature this ___ day of __________, 20__ in _________________________.

AFFIANT

(NOTARIZATION)

AFFIDAVIT OF POSTING OF BILLBOARD NOTICE FOR THE COMPLIANCE PROJECT

Republic of the Philippines ]
_______, _____________ ] s.s.

AFFIDAVIT OF POSTING OF BILLBOARD NOTICE

I, ______________, Filipino, of legal age, with residence and postal address at _____________________, after being sworn in accordance with law, hereby depose and state:

1. That I am the _____________ (POSITION) of ____________ (OWNER/DEVELOPER);

2. That said corporation is the owner/developer of __________________ (NAME OF COMPLIANCE PROJECT) located at ______________ (LOCATION) which is the subject of an application for Certificate of Registration and License to Sell before the Housing and Land Use Regulatory Board (HLURB);

3. That ____________________ (OWNER/DEVELOPER) has caused the posting of a 3' X 6' billboard notice in front of the project site in compliance with the requirements of the HLURB;

4. That stated in the said billboard notice are the following:

5. That a billboard was likewise posted at the site of ____________________ (NAME OF MAIN SUBDIVISION PROJECT) located at _______________ (LOCATION) (Optional, in case of simultaneous filing of the applications for main and compliance projects); and TaIHEA

6. Photographs of the two billboard notices as posted in front of the project sites are hereto attached as ANNEXES A and B hereof.

IN WITNESS WHEREOF, I hereunto affix my signature this ___ day of __________, 20__ in _________________________.

AFFIANT

(NOTARIZATION)