EXTENDING BENEFITS PROVIDED UNDER PRESIDENTIAL DECREE NO. 745 NOT ONLY TO EMPLOYEES OR WORKERS BUT TO LOW INCOME FAMILIES IN GENERAL.

• Number: Presidential Decree No. 1217
• Sections: 8

Preamble

WHEREAS, the Constitution of the Philippines provides that

the State shall establish, maintain and ensure, adequate social services in the

field of "housing to guarantee the enjoyment of the people of a decent standard

pf living;

WHEREAS, the. housing problem of the country has grown into

a critical magnitude requiring the immediate and concrete institution of

measures which can meet the needs of Filipino families for decent dwellings;

WHEREAS, the need to resolve the housing problem" therefore

calls for a joint venture between the government and

WHEREAS, it is incumbent upon the Government to harness and

promote housing ventures in terms of capital expenditures, land expertise, and

financing including the provision for incentives and facilities to broaden the

private sector participation in the housing investment;

WHEREAS, there are domestic corporations and partnerships,

which are willing or already have plans to provide housing accommodations for

the low income group but are stymied by financial difficulties;

WHEREAS, Presidential Decree No. 745 provides such

incentives but only qualified workers, employees, and their domestic employers

as the recipients of these benefits, and it is incumbent upon government to make

available such incentives to all low income families and to those who provide

housing for them;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the

Philippines, by virtue of the power3 vested in me by the Constitution do hereby

decree and order the following:

Section 1

SECTION 1. The National Housing Authority shall finance

under liberalized credit temis housing for low-income families

that may be

proposed by domestic corporations, partnership and landowners organized and

existing under Philippine law, operating for profits, for low-income groups

under any or all of the following schemes:

Affordable interest rates and repayment terms;

Graduated amoitizations scheme in a manner that beneficiaries shall pay

smaller amortizations during the initial period of repayment; and

Government subsidy of a portion of the interest payment, or a portion of the

capital cost of construction.

Section 2

SEC. 2. Domestic corporations, partnerships or landowners as

defined above which invest funds in housing for low-income groups shall be

allowed a reasonable margin of profit if lots and dwelling units are to be so'd

to the low-income groups on easy installment terms; or if the dwelling units be

leased to the low-income groups on a monthly rental basis.

Section 3

SEC. 3. Pursuant to the above incentives, such domestic

corporations and partnerships and landowners shall enjoy tax exemptions on:

Real estate tasos on the improvements which will be used for housing by

lew-income groups;

Taxes on income derived from the installment sales of houses to low income

groups or income derived from rentals' thereof of; and

Taxes on interest earned due to the financing of housed for the low-income

groups.

Section 4

SEC. 4. The National Housing Authority shall define the

low-income groups qualified in this decree and the extension of housing benefits

to these groups, upon the certification of the Authority, shall entitle the

domestic corporations, partnerships and landowners to the incentives enumerated

in this decree. Benefits of this decree shall however cease upon evidence as

decided by the Authority that use of the housing units has passed to groups

other than low-income groups. The Authority shall formulate rules and

regulations to implement the provisions and the intent of this section.

Section 5

SEC. 5. The benefits of this decree shall accrue only to new

projects and development certified and approved by the National Housing

Authority as eligible for the grant under this decree.

Section 6

SEC. 6. All laws, orders and decrees as well as rule and

regulations inconsistent herewith are hereby repealed and/or modified

accordingly.

Section 7

SEC. 7. This order shall take effect immediately.

Done in the City of Manila, this 14th day of October, in the year of Our

Lord, nineteen hundred and seventy-seven.

(Sgd.) FERDINAND E. MARCOS

President of the

Philippines

By the President:

(Sgd.) JUAN C. TUVERA

Presidential Assistant Secretary