1.         Attached is a copy of the above resolution which was approved by the Board on 22 April 1997 and published in Malaya on 08 May and in Today on 15 May 1997.

2.         The amendments shall take effect thirty (30) days after the last publication or on 14 June 1907

3.         Your attention is invited to the proviso In No. 4 of the Resolution that the present amendments shall not affect existing contracts.

For your guidance and information

Adopted: 16 May 1997


ATTACHMENT:


Amending the Revised Rules and Standards for Economic and Socialized Housing Projects to Implement BP Blg. 220, to Conform to the New UHLP Guidelines Pegging the Loan Ceiling at P180, 000. In Duty Designated Highly Urbanized Areas and the HUDCC-HIGC Appraisal Guidelines to Qualify for the P180, 000.00 Socialized Housing Package

WHEREAS, the Revised Rules and Standards for Economic and Socialized Housing Projects to Implement Batas Pambansa Blg. 220, approved under Resolution No. R-579, s. 1995 dated 09 October 1995, provides for maximum selling price of P150,000.00 per unit for house and-lot packages under socialized housing;

WHEREAS, the new Unified Home Lending Program (UHLP) guidelines effective 01 January 1997, as approved by the Housing and Urban Development Coordinating Council (HUDCC) and circularized in a Council Memorandum dated 11 October 1996, provides that the loan ceiling for socialized housing projects shall be pegged a one hundred eighty thousand pesos (P180, 000.00) for such projects within duly designated highly urbanized areas w follows:

a. Angles City

h. Gen. Santos City

b. Bacolod City

i. Iligan City

c. Baguio City

j. Iloilo City

d. Butuan City

k. Lucena City

e. Cagayan de Oro City

I. Mandaue City

f. Cebu City

m. Olongapo City

g. Davao City

n. Zamboanga City o. Metro Manila

and that subject to certain criteria and appraisal by the Home Insurance Guarantee Corporation (HIGC), other areas may be included in the list;

WHEREAS, HUDCC Circular No. 58, Series of 1997, issuing Appraisal Guidelines to Qualify for the P180.000.00 Socialized Housing Package effective 01 January 1997, provides:

1.         That for a house-and-lot packages of HLURB-registered socialized housing projects outside the HUDCC-designated urbanized areas, the existing P150,000.00 price ceiling shall apply, subject to allowable exceptions on a per project basis, provided the maximum selling price of the house-and-lot package is less than or equal to the HIGC appraisal value thereto but in no case shall exceed the P180,000.00 socialized housing price ceiling and the established loan to value ratio rule shall be applied to the HIGC appraisal values of the collateral's; and

2.         That the basis for the approval/Issuance by HLURB of a License to Sell is an HlGC-issued Certification attesting to the eligibility of a housing project to the P180, 000.00 prices ceiling;

WHEREAS, pursuant to BP Blg. 220 and RA No. 7279, with respect to the said designated areas and such areas as may thereafter be designated, there is a need to reconcile and adjust the HLURB standard on maximum selling price to conform with the UHLP loan/price ceiling and the HUDCC-HIGC appraisal guidelines, as incentive to the private sector to accelerate production of socialized housing projects;

WHEREFORE, BE IT RESOLVED, AS IT IS HEREBY

RESOLVED THAT:

1.         Parameter No. 1, Maximum Selling Price, as indicated in what is hereinafter referred to as "Table 8", Revised Minimum Design Standards for BP 220, of the Amended Rules and Standards for Economic and Socialized Housing Projects to Implement BP Blg. 220, shall be AMENDED to read as follows:

Table 8

Revised Minimum Design Standards for BP 220

PARAMETER	ECONOMIC HOUSING	SOCIALIZED HOUSING
l. Maximum Selling Price(House & Lot Package)	a) For duly designated highly-urbanized areas and for projects that qualify per HUDCC Circular No. 58, s. 1997
	Above P180,000.00 P375,000.00	P180,000.00
	b) For areas outside of the foregoing:
	Above P150,000.00 P375,000.00	P150,000.00 & below

2.         Rule IV, Section 14-B9 of the same Rules and Standards shall be AMENDED to include, as additional requirement for the processing of approval of final subdivision plan, a certification from the HIGC attesting to the eligibility of the housing project to the P180,000.00 price ceiling, said section read as follows:

"Section 14.  How application is made.x.x.x.. The application form shall be accompanied by the following documents:

A.        x x x

B.        Approval of Final Subdivision Plan

Xxx

9.       DULY SIGNED HIGC-ISSUED CERTIFICATION ATTESTING TO THE ELIGIBILITY OF A HOUSING PROJECT TO THE P180,000.00 PRICE CEILING " (amendment in capital letters)

3.         Rule III, Section 5-C, of the same Rules and Standards shall be AMENDED to read as follows:

"C.     Affordability level of target market

Affordable cost refers to the most reasonable price of land and shelter based on the needs and financial capability of program beneficiary and appropriate financing scheme.

WHENEVER NECESSARY AS DETERMINED BY THE BOARD, THE MAXIMUM SELLING PRICE FOR HOUSE-AND-LOT PACKAGES, INDICATED AS PARAMETER NO. 1 IN TABLE 8 HEREOF, SHALL BE ADJUSTED ACCORDINGLY TO CONFORM TO THE FINANCIAL CAPABILITY OF TARGET MARKET OR BENEFICIARY BASED ON AFFORDABILITY LEVELS AS DETERMINED BY THE NATIONAL ECONOMIC AND DEVELOPMENT AUTHORITY FROM TIME TO TIME IN ACCORDANCE WITH BP 220, AND TO APPROPRIATE HOUSING FINANCING SCHEMES, PRIMARILY THE UNIFIED HOME LENDING- PROGRAM, IN ACCORDANCE WITH RA 7279."

4.         These amendments shall be published in two (2) newspapers of general circulation at least once a week for two (2) consecutive weeks and shall take effect thirty (30) days after the last publication, provided, that the same shall not in any way affect existing contracts.

Adopted: 22 April 1997