fr,'^/" - Subdivision and Housing Developers Association (SHDA)

Republic of the Philippines

Offrce of the hesident

Housing and Urban Devclopment Coordinating Council

HOUSING AND LAND USE REGULATORY BOARI)

HLURB MEMORAN M CIRCUI.AR NO. 03Series of 2016 2016)

TO : ALL CONCERT{ED

FROM : THE COMMISSIOilER AND CHIEF EXECT TM OFFICER

SUBIECT : GUIDEUNES OI{ BOARD RESOLUTION ilO. 926, SERIESoF 2015, OR 'THE RE\,rSED TMPLEMENTTNG RULESAND REGULATIOilS TO GOVERil THE TI]IIE OFCOMPTETION OF SUBDIVISIO]I AND CONDOMIilIUMPROJECTS UNDER PRESTDENTTAL DECREE NO. 9571AND ALL OTHER, SI]IIILAR, PROJECTS REQUIRED BYLAW A]ID REGULATIONS TO BE REGISTERED WITH THEHOUSING AND LAND USE REGULATORY BOARD.

Pursuant to Section L4 of the Housing and Land Use Regulatory Board(HLURB) Resolution No. 926, Series of 2015, or the Revised ImplementingRules and Regulations (IRR) to Govem the llme of Completion ofSuMivision and Condominium Projecb under Presidential Decree No. 957,Otherwise Known as the "Subdivision and Condominium Buyers' ProtectiveDecree" and All Other Projects Required By Law to be Registered With theHousing and Land Use Regulatory bard", this Guidelines is hereby issued:

RULE IGeneral Prcvisions

Section 1. Title. - This Guidelines shall be referred to as the "2015Guidelines on Time of Completion".

Section 2. Scope of Application. This Guidelines shall apply to allprojects required by law to be registered with HLURB.

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When used in this Guidelines, the word "project" shall include:

2.L AII subdivisions, includingcommercial, farmlot, andsubdivisions;

residentialindustrial

2.2 All condominiums, including residential andcommercial condominiums; and

2.3 Any other similar projects, including cemeteries,memorial parks and columbaria.

section 3. objective. This Guidelines aims to provide a uniformapplication, interpretation, usage, and implementation of Board ResolutionNo. 926, series of 2015 in order to ensure that all projects, including theconstruction and provision of the facilities, improvements, infrastructuresand other forms of development, including water supply and electricalfacilities, which are offered and indicated in the approved project plans,brochures, prospectus, printed matters, letterc, or in any form ofadvertisement are completed within one year from the date of issuance ofthe license to sell of the project or within such other period of time as maybe fixed in accordance with this Guidelines.

SECTION 4. Definition of Terms. When used in this Guidelines, thefollowing terms shall be understood to mean as follows:

4.L "Cease and Desist Orde/' refers to an order issued by the HLURBdirected against a developer enjoining it from committing certain actsin relation to its project by reason of a violation of Presidential DecreeNo. 957, Batas Pambansa Blg. 220, or any of their implementing rulesand regulations or any guidelines or circular issued thereunder.

4.2 "Cemetery" refers to a public or private land used for the burial of thedead and other uses indicated for cemetery purposes.

4.3 "columbarium" refers to any structure, either freestanding or part ofanother building, containing niches for the inurnment of crematedhuman remains.

4.4 "Commercial Condominium" refers to the entire parcel of real propertydivided or to be divided primarily for commercial purposes intocommercia! units, including all structures thereon.

4.5 "Commercial Subdivision" refers to a tract or parcel of land registeredunder Act No. 496 which is paftitioned primarily into individual lots forcommercial use with or without improvements thereon and offered tothe public for sale in cash or in installment terms.

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"condominium Project" refers to the entire parcer of real propertydivided or to be divided primarily for residential purposes intocondominium units, including all structures thereon, and offered tothe public for sale, in cash or in installment terms.

4.7 "Developer" refers to any person who devetops or improves thesubdivision project or condominium project for and in behalf of theowner thereof.

4.8 "Farmlot subdivision" refers to a subdivision project primarily intendedfor agricultural production, with a minimum rot area of 1000 sq.m.and with a 25o/o maximum allowable buildable area.

4.6

4,9 "Industrial Subdivision" refers to a tract of land partitioned into lots forsale or lease to establishments engaged primarily in industrialproduction or seruices. The degree of development may be limited tothe provision of utilities and allocation of areas for industrial buildings,facilities, and amenities, or it may also include the provision ofbuildings, facilities, and amenities.

4.L0 "Land Development" refers to land clearing and grubbing, roadconstruction, installation of power and water distribution system,construction of drainage and sewerage system and otherdevelopments contained in the approved plans and/or in the brochureand advertisement.

4.Lt "Memorial Park" refers to a privately-owned cemetery provided with asystematic superuision and maintenance where park-like atmosphereis its outstanding quality.

4.L2 "owner" refers to the registered owner of the Iand subject of aproject. An owner who develops a project by himself shall beconsidered as a developer.

4.L3 "Projecf'refers to the different real estate development enumeratedunder Section 2 hereof which are required by law to be registered withthe HLURB.

4.L4 "Sale" or "sell" shall include every disposition or attempt to dispose, fora valuable consideration, of any Iot, including the building and otherimprovements thereof, or any unit in a project. "sale" and "sell" shallalso include a contract to sell, a contract of purchase and sale, anexchange, an attempt to sell, an option of sale or purchase, asolicitation of a sale, or an offer to sell, direcUy or by an agent, or by acircular, letter, adveftisement or otherwise.

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A privilege given to a member of a cooperative, corporation,paftnershig, or any association and/or the issuance of a ceftificate orreceipt evidencing or giving the right of participation in, or right to,any land in consideration of payment of the membership fee or dues,shall be deemed a sale within the meaning of this definition.

4.t5 "Subdivision Project" shall mean a tract or a parcel of land registeredunder Act No. 496, as amended by Presidenual Decree No. tszg,which is paftitioned primarily for residential purposes into individuallots with or without improvements thereon, and offered to the publicfor sale, in cash or in installment terms. It shall include all residential,commercial, industrial and recreational areas as well as open spacesand other community and public areas in the project.

4.t6 "Time of completion" refers to the period of time fixed by the HLURBwithin which the owner or developer shall develop and complete theproject, including the construction and provision of facilities,improvements and other forms of development, incruding watersupply and electrical facility.

Al! other words as may be used in this Guidelines shall be interpreted inaccordance with their normal and popular usage and meaning.

Rule II. General Rules and Guidelines

section 5. Time of completion. within one year from the date of theissuance of the license for the project or such other period of time as may beflxed by the HLURB in accordance with this Guidelines, every owner ordeveloper shall construct and provide the facilities, improvements,infrastructures and other forms of development, including water supply andelectrical facilities, which are offered and indicated in the approved projectplans, brochures, prospectus, printed matters, letters or any form ofadveftisement.

Section 6. Additional Period of Time to Complete. No extension oradditional period of time may be granted to develop and complete theproject unless such failure or inability of the owner or developer to completethe project within the original period is caused by:

6.1 Existence of sub-soi! conditions discoverable only after actualexcavation works in the project and would necessarily requireadditional excavation time.

6.2 occurrence of an event which is independent of the will of theowner or developer, unforeseeable or unavoidable, and causesdamage to the on-going project that requires reconstruction or

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causes delays which are directly attributable to the event andrenders its completion within the original approved periodimpossible in a normal manner; provided however that theowner or developer is free from any participation oraggravation of the damage sustained by the project, andprovided finally that the owner or developer may repoft theevent to the RFO where the project is registered within thity(30) days from the occurrence thereof to put on record suchevent and its effect on the project; or

6.3 Issuance of a lawful order of the court, government agenry orlocal government unit resulting to the temporary enjoinment orstoppage of the construction or development of the projectexcept when the issuance of such order is attributable to anyfault, mistake, or negligence on the part of the owner ordeveloper, or by reason of any dispute between the ownerand developer in the development and completion of theproject, and provided further that the owner or developer shallhave, within thifty (30) days from receipt or knowledgethereof, notified in writing the Regional Field ffice (RFO)where the project is registered of such issuance.

The additional period of time as provided under this section shal! only begranted upon posting of a new bond or security in accordance with theexisting rules and guidelines of the HLURB.

Section 7. Monitoring. In the exercise of its visitorial powers, the HLURBmay, on its own initiative or upon verified complaint, monitor the completionand development of all projects in accordance with the rules and guidelinesherein provided and impose appropriate sanctions, fines and penalties incase of violation or non-compliance herewith.

Rule III.Time of Completion

section 8. Periods of completion. The work program or program ofdevelopment submitted for approval by the owner or developer uponapplication for the projecYs Ceftificate of Registration and License to Sell(CR/LS) shall primarily be the basis for fixing the period of completion of theproject. In the case of residential subdivision projects with house and lotpackage, there shall be separate periods of completion for land developmentand house construction, as hereinafter provided.

The work program or program of development shalt consider and provide forreasonable allowance for possible delay in the project development due towork interruptions or temporary suspensions brought about by inclement

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weather, prolonged or repeated power failures, shortage of constructionsupplies or materials, and other similar incidents.

section 9. Period of completion for Land Development. The workprogram or program of development submitted for approval by the owner ordeveloper upon application for the projecfs Certificate of Registration andLicense to Sell (CR/LS) shall primarily be the basis for fixing the period ofcompletion. In fixing such period of completion, the project's level ofdevelopment, at the time of the issuance of the project's cR/ls, shall also beconsidered.

section 10. Period of completion and Derivery of Housingcomponents. The period of completion and delivery of any housing unitpurchased shall be explicitly provided in the contract to sell or any purchaseagreement.

In the absence of such provision or in case of failure to indicate the same,the period of completion and delivery of the housing unit shall in no caseexceed one (1) year from the date of purchase.

Section 11. Subdivision Amenities and Facilities. All suMivisionamenities and facilities such as clubhouse, playgrounds, sport facilities andother infrastructures as may be included in the approved project ptans,brochures, prospects printed matters, letters or any forms of advertisementshall be developed and completed within the submitted and approvedperiod for the project's land development.

Section L2. Condominium Amenities. All amenities and facilitiesincluded in the approved plan or included or represented in brochures,prospectus, printed matters, letters or any form of adveftisement of theproject shall all be completed in accordance with the work program orprogram of development of the project.

section 13. uniform statement of Date of completion on theLicense to Sell and Advertisements. The date of completion of theproject shall include the month, day and year and shall be indicated on thelicense to sell of the project.

For subdivision project with housing component, the date of completion anddelivery of the housing component shall be stated as one of the conditions inthe license to sell as follows:

"The date of completion and delivery of the housing componentshall be explicitly provided in the contract to sell or anypurchase agreement.

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In the absence of such provision or in case of failure to indicatethe same, the period of completion and delivery of the housingunit shall in no case exceed one (1) year from the date oipurchase."

Such time of completion as indicated on the Iicense to sell is a condition forthe issuance of the license to sell and shall be binding and obligatory on thepaft of the owner or developer unless a shorter period of completion ordelivery is represented in any form of advertisement for the project.

Such date of completion of the project and date of completion and deliveryfrom date of purchase of any housing unit, if applicable, is a mandatorystatement in any advertisement of the project and shall likewise be statedtherein.

Rule IV.Additional Time of Completion

section 14. Application for Additional Time of completion. Theowner or developer who shall not be able to complete the project, includingall improvements thereon, within the approved time of completion by reasonof any of the circumstances provided under section 6 hereof may apply foran additional period of time to complete the project with the RFO where theproject is registered by submitting the following:

t4.L Sworn application by the owner or developer, stating thegrounds or reasons justiffing the application for additionaltime to develop;

14.2 Proof of notice to all lot or unit buyers or owners;

t4.3 Suppofting pictures or documents, if any;

14.4 In cases falling under Section 6.1 hereof, a swornstatement by a licensed engineer attesting to the existenceof the condition justifying the grant of additional time tocomplete the project; and

14.5 Revised work program with computation of the remainingcost of completion duly signed or sealed by a licensedengineer or architect.

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A pro-forma copy of the application for additional time of completion asprovided under Section 14.1 hereof is hereto attached as Anneres oA-andoA-1",

section 15. Notice to All Lot or unit Buyens or ownerc. Any owner ordeveloper applying for additional time of completion in accordance with thisGuidelines shall notiff all lot or unit buyers or owners of its intent to applyfor additional time to complete the development of the project.

Section 16. Periods to Apply. All applications for additional period oftime to complete the project as may be justified under Section 6 hereof shallbe filed:

16.1 under section 6.1 hereof, within sixty (60) days fromdiscovery thereof;

L6.2 Under section 6.2 hereof, within sixty (60) days prior to theexpiration of the approved original time of completion,provided however that if such occurrence shall fall within thelast sixty (60) days of the approved period of completion,the application shall be Rled within sDo (60) days from theoccurrence thereof; and

16.3 under section 6.3 hereof, within sixty (60) days from receiptor knowledge of the order or issuance of a court,government agenry or local government unit lifting theenjoinment or stoppage of the construction or developmentof the project.

section 17. Evaluauon and Grant of Additional period of rime. Uponreceipt of any application for additional period of time, the RFO shall veriffthe nature and extent of damage or validate the justification for theapplication of additional time to develop, and ascertain the additional periodof time needed to complete the project and the estimated remaining iost ofcompletion. If necessary, the RFO may conduct an ocular inspection of theproject.

If the RFO finds justifiable reason to grant the additionat period of time inaccordance with Section 6 hereof, it shall proceed to grant the application.othenarse, it shall deny the same. Any appeat frorn the decision of theapplication by the RFO shall be decided by the Superuising Commissioner.Any such decision of the Supervising Commissioner may be appealed to theBoard of Commissioners in accordance with the existing rules of procedureof HLURB.

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Section 18. Fees. The fees provided for extension or additional time todevelop applicable to the different classifications of subdivision andcondominium projects in the approved schedule of Fees of the HLURB,including Processing Fee, Additional Fee, and Inspection Fee are herebyadopted and made applicable to grant of additional time to complete thepro'ject as provided under this Guidelines.

section 19. Posting of peformance Bond or security. The grant ofadditional time to complete the project as may be justified under $ction Ohereof shall only be effective upon posting of an acceptable performancebond or security in accordance with existing HLURB rules and guidelines.

Rule V.Monitoring, Completion and Offenses and Sanctions

Section 20. Monitoring. Upon issuance of the development permit or thecR/ls of the pCIect, its development and completion shall be subject tothe regular monitoring activity of the RFo where the same is registered.

section 21. Issuance of ceftificates of completion for landDevelopment and Housing component. upon completion of theproject's land development, the owner or developer shall apply for theissuance of Certificate of Completion for Land Development (COCLD) fromthe RFo where the project is registered. Upon completion of the housingcomponent a separate Certificate of Completion for Housing Component(COCHC) may also be issued. If upon ocular inspection the project is foundto have been completed in accordance with the approved work program orprogram of development a COCLD or COCHC shall be issued in accordancewith the existing rules and guidelines of the HLURB.

The issuance however of a COCLD shall not relieve the owner or developerof the obligation to maintain the roads, alleys, sidewalks, playgrounds,amenities, facilities, improvements infrasffiuctures or other forms ofdevelopments represented or promised in brochures, prospectus, printedmatters, letters or any form of advertisement of the project, until properdonation or turnover of the same.

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Sub-Rule V-ANon-Completion of the Project Within

The Apprcved Period of Time

section 22. Efnects of Non-completion. Except as provided underSection 6 hereof, non-completion of the project within the approved time ofcompletion shall entitle a buyer to exercise its rights in accordance withPresidential Decree No. 957 and the Civil Code of the Philippines, in additionto the other rights and remedies provided for by other laws as may bewarranted under the circumstance. Administrative fines, sanctions andpenalties shall likewise be imposed on the owner or developer as providedunder Sections 25, 26 and 27 hereof.

section 23. Notice of Alleged Repofted violation for Failurc tocomplete within The Approved period of Time. If upon comptaint ormonitoring the project is found not completed within the period fixed by theHLURB, a Notice of Alleged Reported violation (NORAV) shall be seruedupon the owner or developer, requiring the latter to submit within tencalendar (10) days from receipt thereof an explanation under oath why noadministrative fine and sanctions and a cease and desist order (CDo) asprovided under section 25 hereof should be imposed against it.

Section 24. Order of Imposition of Fine. If the owner or developer shallfail to comply with the order as provided under Section 23 hereof or shall failto justiff the non-completion of the project in accordance with HLURB'sexisting rules and guidelines, an order accordingly imposing administrativefines and sanctions shall be issued and the owner or developer shall furtherbe ordered to submit within ten (10) calendar days:

24.1 A revised or updated Fact Sheet and program ofDevelopment signed and sealed by a licensed engineer,indicating the new target date of completion;

24.2 Revised or updated remaining cost of completion;

24.3 updated sales status Report as certified true and correctby a responsible officer of the corporation;

24.4 An Affidavit or sworn Undertaking to refund payments toaffected buyers pursuant to presidential Decree No. 957;and

Proof or payment of the required processing fee inaccordance with HLURB"s approved Schedule of Fees.

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Upon review of the submitted document, a final order shall be issuedrequiring the owner or developer to complete the development of the projectwithin such period as may be fixed by the HLURB based on the submittedrevised documents, without prejudice to the imposition of administrativefines and sanctions as hereinafter provided. The owner and developer shallbe fufther required to post a bond or security, and submit proof of postingthereof, in accordance with HLURB's existing rules and guidelines.

Sub-Rule V-BFines and Sanctions

section 25. Administrative Fines and sanctions. In case of non-completion of the project within the approved period time of completion, anadministrative fine shall be imposed in accordance with approved Scheduleof Fines and other existing rules and guidelines of the HLURB.

section 26. suspension of the License to sell. In case of non-completion of the project within the approved period time of completion, thelicense to sell of the project shall be suspended and a corresponding Ceaseand Desist Order (CDO) shall be issued enjoining the owner or developerfrom further selling any lot, including any building or improvement thereon,or any unit in a project, from advertising the project, and from collectingamoftization payment in accordance with the existing rules and guidelines ofthe HLURB. Such suspension and CDO shall not be lifted until ttre projectshall have been completed and a COCLD is issued to the project.

Section 27. Penalties. In addition to the imposition of administrative finesand sanctions provided under Sections 25 and 26 hereof, any violation ofBoard Resolution No. 926, Series of 2015 and of this Guidelines shall bepenalized in accordance with the provisions of Executive Order No. 648 andSection 38 (Administrative Fines) and Section 39 (Penalties) of PresidentiatDecree No. 957.

All fines imposed in this Guidelines shall be payable to HLURB andenforceable through writs of execution in accordance with the existingHLURB'S Rules of Procedure. The rights and remedies provided in thisGuidelines shall be in addition to any and all other rights and remedies thatmay be available under existing laws.

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Section 28. Separability Clause. The provisions of this Guidelines arehereby declared separable, and in the event that any provision herein isdeclared null and void, the validity of all other prwisions shall not beaffected thereby.

Section 29.immediately.

Effiectivity Clause. This Guidelines shall take effect

sEcrroN 30. Transitory Prcvision. within ninety (90) days from theeffectivity of this Rules, all on-going projecb with an original approvedperiod of completion or extension of time to develop that is shorter than theperiod of completion provided in the originally submitted or revised workprogram or program of development may apply for a final additional time todevelop and complete the project based on their approved or revised workprogram or program of development, subject to existing rules andregulations and guidelines of the HLURB.

Al! applications for extension of time already filed upon the effectivity ofBoard Resolution No. 926 shall be given a final o<tension of time which shallbe based on the submitted revised work program or program ofdevelopment.

For immediate implementation and strict compliance.

ANTO]TIO M. BERNARDOCommissioner and Chief Executive fficer

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