BOI IPP Guidelines – Preferred Activities: Mass Housing


This covers the development of low-cost mass housing. This also covers the manufacture of modular housing components preferably using indigenous materials.


The following are the qualifications for registration:
• The selling price of each housing unit shall be more than Php450,000.00 but not exceeding Php 3.0 million;
• Must be new or expanding low-cost mass housing project; and
• For vertical housing projects, at least 51% of the total floor area, excluding common facilities and parking areas, must be devoted to housing units.

In cases of un-incorporated joint venture and similar arrangements between landowner and developer wherein the sharing scheme is in terms of the number of lots or units built, only the share of the developer may qualify for registration.

Projects that have already been completed and have incurred sales (booked sales) of housing packages shall not qualify for registration.

Any of the following may be considered as an expansion project:
• Construction of additional floors or annexes intended for mass housing units; or
• If the project will locate adjacent or contiguous to an existing mass housing project owned by the same entity and shall share common facilities including access to the existing project.

For this purpose, all low-cost mass housing projects must comply with the following:
• Socialized housing requirement by building socialized housing units in an area equivalent to at least 20% of the total registered project area or total BOI registered project cost for horizontal housing and 20% of the total floor area of qualified saleable housing units for vertical housing projects.
This may be done through any of the following modes:
– Development of a new settlement directly undertaken by the registered entity; or
– Development of a new settlement through joint venture arrangements with any of the following:
• Local government unit (LGU),
• Subsidiary of the BOI-registered entity,
• Developer accredited by the Housing and Land Use Regulatory Board (HLURB).
In the case of joint venture projects, the BOI registered entity shall be required to provide proof of funds transferred to the implementing entity.
• In lieu of the above modes for compliance with the socialized housing requirement, vertical mass housing projects may opt to donate, provided:
– The donation is made to BOI accredited NGO, and
– The amount to be donated shall be equivalent to 30% of (20% of the building construction cost based on the actual number or equivalent total floor area of qualified saleable low cost housing units), or not less than 40%, of the estimated Income Tax Holiday (ITH). Equivalent total floor area refers to the sum total of the floor area of all the registered low-cost mass housing units.
• Compliance with the socialized housing requirement must be completed within the ITH availment period and should be proportionate to the number of low-cost housing units being applied for ITH for the taxable year.
• Non-compliance with the 20% socialized housing requirements on previous registrations shall result in denial of applications for registration for succeeding projects.
• Project shall conform with the design standards set forth in the Rules and Regulations to Implement B.P. No. 220/P.D. No. 957 and other related laws.

Application for registration must be accompanied by a copy of the Development Permit issued by HLURB or concerned LGU.

Prior to registration, horizontal housing project applicant must submit copies of License to Sell (LTS) and Certificate of Registration (COR) issued by HLURB. For vertical housing project, applicant may submit a copy of its temporary LTS provided that the copies of the final LTS and COR shall be submitted prior to start of commercial operation.

Eligible projects in NCR and Metro Cebu shall be entitled to 3 years of ITH.

Interest income arising from in-house financing shall not be entitled to ITH.

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Modular Housing Components

This covers the manufacture of modular housing components preferably using indigenous materials. These include roof/framing systems, wall/partition systems, flooring systems, door/window systems, and finishing/ceiling systems.

Application for registration must be accompanied by an endorsement from Accreditation of Innovative Technologies for Housing (AITECH).

The firm shall sell at least 50% of total annual production to mass housing projects.


Reference:
http://oshdp.com/wp-content/uploads/2014/02/2013-IPP-General-Policies-and-Specific-Guidelines.pdf (accessed June 18, 2014).