Posted on May
30, 2013 09:43:48 PM [ BusinessWorld Online ]
DAVAO CITY --
The city council has allowed two property developers to convert their
socialized housing requirements to cash.
The council,
led by Councilor Rachel P. Zozobrado, passed a resolution on Tuesday allowing
Kisan Lu Lands and Development, Inc. and Robinsons Land Corp. to set aside
P1.965 million and P625,000, respectively, equivalent to the supposed 20% share
of socialized housing in their residential projects.
The proceeds,
in turn, will go to the city government, funding its public housing program.
"Kisan
Lu and Robinsons don’t have the land to give, so they will [provide the city
instead with] the monetary equivalent," Ms. Zozobrado said.
Republic Act
7279 requires subdivision developers to allocate "an area for socialized
housing equivalent to at least 20% of the total subdivision area or the total
subdivision project cost at the option of the developer, within the same city
or municipality."
Ms. Zozobrado
admitted that many companies do not want to include socialized housing in their
plans. They prefer to convert their requirements to cash, allowing them to
comply with the provisions of the law.
Davao City
has experienced a housing boom lately with big corporations putting up projects
both in the city’s northern and southern sections. However, these projects are
either expensive mid-rise condominiums or upscale subdivisions.
According to
housing developers, upper and mid-level markets requirements are currently
being addressed because the demand is high.
The
government housing officals of Davao City declined to comment on the impact of
the council action.
While the
city government has amended the local incentives code to exclude property
development as a priority area for investment, it still grants incentives to
mass housing projects.
Jason C.
Magnaye, acting chief of the Davao City Investment Promotion Center, said
earlier that granting incentives to socialized housing developers would attract
developers to help the city government address the housing backlog.
The shortage,
estimated two years ago, is pegged at about 40,000. The city has an estimated
250,000 families.
Two years
ago, Vice-President Jejomar C. Binay, chairman of the Housing and Urban
Development Coordinating Council, said he was pushing for the creation of the
Department of Housing, aimed at addressing the national housing backlog,
estimated at about 3.6 million at that time. -- Carmelito Q. Francisco
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