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SMDC donates housing to GK

[ ] December 28, 2011

SM Development Corp. (SMDC) entered into a memorandum of agreement with Gawad Kalinga (GK) donating a 3.84-hectare property to GK as part of the developer’s compliance with the 20 percent socialized housing requirement imposed by the Board of Investments (BOI) on registered housing projects.

This is the first MOA entered into by GK in relation to its accreditation as a participating institution with the BOI. As an accredited institution, Gawad Kalinga is authorized to receive from registered vertical housing developers contributions, which may be in cash or in kind (land and construction materials or components) and in construction of socialized housing units and/or educational facilities.

The property to be contributed by SMDC, located in Paliparan, DasmariƱas, Cavite, shall be fully developed to accommodate over 200 families. It shall include a road network system, drainage system and complete water distribution system. SMDC shall also provide cash contribution for the construction of 24 homes and a kindergarten school.

The BOI recognizes that innovative and high-density housing strategies are required if the housing deficit is to be effectively addressed.

"The GK way is an innovative approach and is potentially an effective, sustainable, and replicable model that would help address the problem of urban housing in the country," BOI governor Geronimo Sta. Ana stated.

Under the 2010 and 2011 Investments Priority Plan (IPP), all vertical housing projects registered with the BOI are required to develop an area for socialized housing, in line with BOI’s thrust of helping to address the housing backlog estimated to reach about 5.8 million units in 2016 and classroom shortage estimated at 66,800 units.

Contributions of vertical housing developers under this program could reach P2 billion, which could translate to around 15,000 socialized housing units or at least 3,000 classrooms.

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