LIBERALIZING THE FINANCING AND CREDIT TERMS FOR LOW COST HOUSING PROJECTS OF DOMESTIC CORPORATIONS AND PARTNERSHIPS.

• Number: Presidential Decree No. 745
• Sections: 6

Preamble

WHEREAS, the Philippine Constitution provides 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 of 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 the private sector;

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 housing

investment;

WHEREAS, there are domestic corporations and partnerships

which are willing or already have plans to provide housing

accommodations for their employees and workers but are stymied by

financial difficulties particularly by the inability of their employees

and workers to pay the amortization or rental rates (in the case of

company housing) even at subsidized rates;

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

Philippines, by virtue of the powers vested in me by the Constitution do

hereby decree and order the following:

Section 1

SECTION 1. The GSIS and the SSS shall undertake the

necessary measures to liberalize financing and credit terms for low cost

housing that may be proposed by domestic corporations and partnerships

with at least three hundred employees or workers, organized and existing

under Philippine laws, operating for profit, exclusively for their

employees and workers under any or all of the following schemes:

Low interest rates.

Lengthening of repayment period.

Adoption of a graduated amortization scheme in

such a way that smaller amortizations are paid during initial period

of repayment; and

Government subsidy of a portion of the interest payment.

Section 2

SEC. 2. Domestic corporations or partnerships as defined

above which invest a portion of their funds in housing for their

employees and workers shall be allowed a fairly reasonable margin of

profit if lots and dwelling units are to be sold to the employees and

the workers on easy installment terms; or if the dwelling units be

leased to the employees and workers on a monthly rental basis.

Section 3

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

corporations and partnerships shall enjoy tax exemptions on:

Real estate taxes on the improvements which will

he used exclusively for housing their employees workers;

and

Taxes on income derived from the installment sales

of houses to employees and workers of the company or

income derived from rentals thereof.

Section 4

SEC. 4. All laws, orders and decrees as well as rules and

regulations inconsistent herewith are hereby repealed and/or modified

accordingly.

Section 5

SEC. 5. This order shall take effect

immediately.

Done in the City of Manila, this 15th day of July, in the year

of Our Lord, nineteen hundred and seventy-five.

(Sgd.)

FERDINAND E. MARCOS

President

Republic of the Philippines

By the President:

(Sgd.)

ALEJANDRO MELCHOR

Executive Secretary