Attached herewith is the resolution, Amending Sections 9, 10 and 11 of the Revised Implementing Rules and Regulations for P.D. 957, which was approved by the Board on 19 May 2004.

The above was published in The Philippine Daily Inquirer on 01 July 2004, and, in accordance with the provisions of law, shall take effect fifteen (15) days from its date of publication.

Please be guided accordingly.

Adopted: 06 July 2004

(SGD.) ROMULO Q.M. FABUL

Board Resolution No. 763, S. 2004

Amending Sections 9, 10 and 11 of the Revised Implementing
  Rules and Regulations (IRR) for Presidential Decree No. 957

WHEREAS, the HLURB Board approved the Revised IRR for PD 957 through Res. No. 699, Series of 2001;

WHEREAS, the same IRR provide for Notice of Publication on the Application for Certificate of Registration and License to Sell (CR/LS);

WHEREAS, during the Post Implementation Assessment of the revised IRR conducted in 2003, inadvertent inconsistencies were noted on the said sections;

WHEREAS, there is a need to harmonize the provisions of the IRR with specific provisions in PD 957 for consistency:

WHEREFORE, be it RESOLVED, as it is hereby RESOLVED, that Sections 9, 10 and 11 of the IRR for PD 957 be amended to read as follows:

 

"SECTION 9. Notice of Publication  

 

Upon evaluation of the completeness and veracity of the documents submitted, the Board shall cause the publication, at the expense of the applicant, a notice of pending application for Certificate of Registration in two (2) newspapers of general circulation, one published in English and another in Pilipino, once a week for two (2) consecutive weeks, reciting that a registration statement for the sale of subdivision lots or condominium units has been filed with the Board; and that the aforesaid application as well as the papers attached thereto, are open to inspection during the business hours by interested parties. In addition, a 3' x 6' billboard notice of the project shall be posted on the project site until the issuance of the license to sell.

 

As used herein, an interval of seven (7) calendar days between the two (2) publications shall be strictly observed.

 

Failure to publish the notice of filing of registration statement within two (2) weeks from receipt of notice to publish issued by the Board, the owner/developer shall be required to re-file the application for Certificate of Registration."

 

"SECTION 10. Certificate of Registration

 

After two (2) weeks from the completion of the publication as provided for in Section 9, and upon submission of affidavit of publications executed by the publisher, and an affidavit attesting to the posting of the billboard notice on the site, the Board shall, in the absence of any impediment, issue a Certificate of Registration upon payment of the prescribed fees."

 

"SECTION 11. License to Sell

 

No owner or developer shall sell any disposable subdivision lot or condominium unit in the registered project without a license to sell issued by the Board within two (2) weeks from the registration of each project.

 

Upon proper application therefore, submission of the required work program, performance bond as provided for in Section 12 of this Rule and payment of the prescribed license fee by the owner or dealer, the Board shall issue a license to sell the lot or unit in the project or portion thereof covered by the performance bond, provided that, the submitted registration statement and other pertinent documentary requirements can establish that the proposed sale of the subdivision lot or condominium unit to the public is not fraudulent."

 

"SECTION 12. Performance Bond

 

The Performance Bond required may be in any of the following forms or a combination thereof.

 

A. A surety bond callable upon demand amounting to 20% of the development cost of the unfinished portion of the approved plan issued by a duly accredited bonding company (whether private or government) and acceptable to the Board; or

B. Real estate mortgage to be executed by the applicant as mortgagor in favor of the Republic of the Philippines as mortgages, the latter as represented by and acting through the HLURB, over a property other than that subject of the application, free from any liens and encumbrance and provided, that the value of the property, computed on the basis of the zonal valuation schedule of the Bureau of Internal Revenue, shall be at least 20% of the total development cost; or

C. Other forms of security equivalent to 10% of the development cost of the unfinished portion of the approved plan which may be in the form of the following:

1. Cash Bond;
2. Fiduciary deposit made with the cashier and/or disbursing officer of the Board;
3. A certificate of guaranty deposit issued by any bank or financing institution of good standing in favor of the Board for the total development cost;
4. A letter from any bank of recognized standing certifying that so much has been set aside from the bank account of the applicant in favor of the Board which amount may be withdrawn by the Chief Executive Officer of the Board or by his duly authorized representative, at any time the principal fails or refuses to comply with his duties and obligations under the bond contract;
5. Any irrevocable credit line to be utilized in the development of the project from any bank of recognized standing and a refinancing re-structuring program indicating sources of funding from duly accredited funding institutions".

Adopted: 19 May 2004

                                                                                               

(SGD.) MICHAEL T. DEFENSOR   Chairman, HUDCC
(SGD.) RAMON J. LIWAG   Undersecretary, DOJ   Ex-Officio Commissioner	(SGD.) ROMULO Q.M. FABUL   Chief Executive Officer and   Commissioner
(SGD.) EDUARDO R. SOLIMAN, JR.   Undersecretary, DILG   Ex-Officio Commissioner	(SGD.) TERESITA A. DESIERTO   Commissioner
(SGD.) AUGUSTO B. SANTOS   Deputy Director- General, NEDA   Ex-Officio Commissioner	(SGD.) FRANCISCO L. DAGNALAN   Commissioner
(SGD.) JOEL I. JACOB   DPWH, Ex-Officio Commissioner	(SGD.) JESUS YAP PANG   Commissioner
Attested by:
(SGD.) ATTY. CHARITO M. BUNAGAN-LANSANG   Board Secretary