SUBDIVISION DEVELOPMENT

TOPIC OUTLINE
I. Introduction
a. Constitutional Mandate
b. Useful Statistics
c. Key Shelter Agencies
d. HUDCC Vision
e. Framework for Housing

II. General Concepts of Subdivision Development

a. Background c. Main Categories
of Subd. Development
b. Definitions d. Types of Residential Subdivision
e. Kinds od Subdivision
e.1 As to Complexity
e.2 As to Uses

III. SUBDIUVISION DEVELOPMENT PROCESS

a. TYPES OF SUBDIVISION
b. TWO STEPS IN SUBDIVISION DEVELOPMENT
c. Summary of Legal/Physical Development

III. Quick Guide on Real Estate Laws and Issuances on Special and Technical Knowledge

IV. HLURB Historical Background

V. REAL ESTATE LAWS

a. PD 957 – The Subdivision and Condominium Buyer’s

Protective Decree
b. PD 1216 – Defining “Open Space” in residential subdivision
amending section 31 of PD 957
c. RA 7279 – Urban Development and Housing Act of 1992
d. RA 6552 – Realty Installment Buyer Protection
Act (The Maceda Law)
e. BP 220 – An Act authorizing the Ministry of Human
Settlements to established and promulgate different levels
of
standards and technical requirements for economic
and socialized housing projects in urban and rural
areas
f. RA 9904 – Magna Carta for Homeowners and
Homeowners Associations
1987 Constitution:

Mandates the state “to undertake, in cooperation with the

private sector, a continuing program of urban land reform
and housing, which will make available at affordable cost
decent housing and basic services to underprivileged and
homeless citizens in urban centers and resettlement
areas.”
USEFUL STATISTICS:

•RP’s Total National population (as of 2015) - 100 million

•Urban Population (63%) - 63 Million
• Number of Households -12.5 Million
•Informal settlers (20% of the urban population) -2.55 M households
• Housing backlog (nationwide) - 5.5 Million houses
• Housing backlog (for Mindanao alone) - 620,000 houses
• Number of squatters/
Informal settlers nationwide - 585,926 households
• Number of squatters/
Informal settlers in Metro Manila - 220,000 households
• Revalidated UDHA Registrants
in Gen.Santos City (as of 11/ 25/10) - 15,950
• Squatter/informal dwellers within
General Santos City(2011) - 21, 847 households
KEY SHELTER AGENCIES

HDMF HUDCC

SHFC
Lenders

NHMFC NHA HLURB

Fund
Mobilizer Producer Regulator
HGC

Pending Proposal:
Dept. of Housing and Urban Development (DHUD)
 HUDCC Vision:

To provide families not just with the infrastructure of a

house but the framework of a home, to build not just a
neighborhood, but a real harmonious community.
A Framework for Housing
Housing- not a mere commodity, product, or structure
-It is a human right that the government has the responsibility to promote and
protect.
-Can also be a process of community empowerment.
Security of Tenure
-Seen as an entry point to organize, strengthen, and empower a community.
Housing Finance – is a strategy rather than the objective.
CMP (Community Mortgage Program)

-is primarily an asset reform program

-a poverty reduction program using housing finance as a strategy.
II. GENERAL CONCEPTS OF SUBDIVISION
DEVELOPMENT

a. BACKGROUNDER:

• Subdivision development is a very

complex undertaking
• It needs the services of different
professionals such as Civil Engineers,
Architects, Geodetic Engineers, and many
more.
b. DEFINITIONS:
1. SUBDIVISION–division of a tract or parcel of land into
two or more lots, sites or other divisions for the
purpose, whether immediate or future, of a sale or
building development. It also includes re-subdivision.

2. LAND SUBDIVISION–refers to the creative

“manufacturing” process of converting a large parcel of
“raw land” or consolidating several adjoining parcels of
various sizes and shapes, subdividing the consolidated
land in an orderly pattern and providing access roads to
each of the lots, together with such utilities, facilities and
amenities as maybe necessary for the particular project.
3. SUBDIVISION DEVELOPMENT–the conversion of
unimproved rawland into a site that will be capable
of supporting a desired activity and intended
usage, which may be for residential, commercial, or
industrial purposes.

It should be noted that while “subdivision”

technically refers to the mere partitioning of land, and
“development” means the subdivision and the setting
up of essential community facilities, the words are in
practice, interchangeable.
 MAIN CATEGORIES
OF SUBDIVISION
DEVELOPMENT
c.1 RESIDENTIAL SUBDIVISION– the conversion of
rawland a safe, serviceable and affordable
residence with associated facilities.

c.2 COMMERCIAL DEVELOPMENTS–the

development of strategically located property
for office, retail, wholesale and financial
activities and also for general services and
travellers needs. Its viability is dependent on
the purchasing power of the supporting
population within the area and it accessibility.
c.3 INDUSTRIAL DEVELOPMENT–the development of
big tract of rawland which focuses on providing
property to industrial, manufacturing purposes. Its
success depends upon the climate, topography,
transportation facilities, and availability of sewer
outlets, water sources and future expansion
potentials.
d. TYPES OF RESIDENTIAL
SUBDIVISIONS:

d.1 SINGLE FAMILY DEVELOPMENT–a single

dwelling unit on each building lot with direct
access to a street.
a. Detached – single
b. Attached – duplex
d.2 MULTI FAMILY DEVELOPMENT- more than one
dwelling unit on each building lot

Example: Multilevel housing

Tenement housing
e. KINDS OF SUBDIVISION:
e.1 As to Complexity

1. SIMPLE – refers to a subdivision of a parcel of land

located on an existing street into two or more lots
without creating any road or open space or
without changing the existing external periphery
for boundary.

2. COMPLEX – refers to a subdivision of a parcel of

land after consolidating them into two or more
lots, with provisions for roads and/or community
spaces, or with changes in the external periphery
or boundary.
e.2 As to Uses
1. RESIDENTIAL–devoted to dwelling in a certain
place that is used as the permanent abode of a person
or family.

2. COMMERCIAL–devoted to edifices or houses

in which businesses directed primarily for profit is
transacted or undertaken.

3. INDUSTRIAL–devoted to use by entities

engaged in industrial pursuit or manufacturing of
goods for profit.
 4. INSTITUTIONAL–devoted to the use by
institutions, societies or corporations that are
charitable, educational, and religious or the like in
nature and character.

5. FARM–devoted to agricultural purposes or the

raising of domestic animals for sale, or personal use
and consumption.

6. RESORT–a place that is frequently and

customarily used for assembly and entertainment
purposes or where a person or his family friends
usually go for adventure and relaxation.
 SUBDIVISION DEVELOPMENT PROCESS
TWO TYPES of SUBDIVISION
SIMPLE SUBDIVISION:

A partitioning of one lot without any street

or open space.

COMPLEX SUBDIVISION:

A partitioning of one lot where the streets

and open spaces are clearly delineated.
 A physically & well-developed
subdivision can generate money
and credit from:

• Banks
• Suppliers
• Contractors
• Buyers
 Professionals needed to develop a
subdivision:
Lawyer Geodetic Engineer
Surveyor Architect
Civil Engineer Electrical Engineer
Sanitary Engineer Structural
Engineer Landscape ArtistAccountant
Project Manager Environmental Planner
(Real Estate
Practitioners)??! REC, REA,
REB, Salesperson
TWO STEPS IN SUBDIVISION DEVELOPMENT

1. LEGAL DEVELOPMENT:
the paperwork

2. PHYSICAL DEVELOPMENT: the

technical side to convert raw land into a
housing project
 Legal Development

PERMITS & CLEARANCES:

• Barangay Clearance

• Locational Viability (LGU)

• Environmental Compliance
Certificate (DENR)

• Conversion (DAR) or reclassification (LGU)

 Legal Development
CONCEPT & FINAL PLANS:
• Conceptual design of the houses
• Schematic plan of the subdivision
• Final plans of the house and
the subdivision
• Sales & marketing plans
 Legal Development

SURVEYS:
• Table survey
• Field survey
• Relocation or verification survey

CITY/MUNICIPAL PLANNING OFFICE:

• Zoning clearance
 Legal Development

CITY/ MUNICIPAL COUNCIL:

• Mayor’s permit (Subdivision Task Force)

CITY MUNICIPAL ENGINEERS

OFFICE/BUILDING OFFICIAL:
• Building permit
• Occupancy permit
 Legal Development

BUREAU OF LANDS:
• Approved subdivision plan
• Approved lot description
• Approved technical description
 Legal Development

HOUSING & LAND USE REGULATORY BOARD:

(HLURB)
• Certificate of Registration (CR)
• Performance Bond (PB)
• License to sell (LS)
 Legal Development

REGISTER OF DEEDS:
• Issuance of individual titles
• Certified true copy of titles

ASSESSOR’S OFFICE:
• Issuance of individual tax declaration
 Physical Development

SITE CLEARING:
• Cut & fill
• Earthmoving work
• Road tracing
• Monumenting of lots
 Physical Development

ENTRANCE/EXIT GATES:
• Guard house
• Perimeter fences

DRAINAGE SYSTEM:
• Underground pipes
• Manholes
 Physical Development

CONSTRUCTION OF ROADS:
• Road preparation
• Cementing or asphalting
• Curbs & gutters
• Sidewalks
 Physical Development
CONSTRUCTION OF HOUSES:
• Construction of model units
• Construction of houses

CONSTRUCTIONS OF AMENITIES:
• Construction of open space facilities
(playgrounds, clubhouse, basketball court, etc)
 Physical Development
ELECTRICAL SUPPLY:
• Erection of electrical posts
• Electrical connections
• Street lights

WATER SUPPLY:
• Deep well with elevated water tank or
undergone cistern
• MWSS/Water District interconnection
 Physical Development

OTHER UTILITIES:
• Cable TV connections
• Telephone lines
• Internet connections
• CCTV/security cameras
1.Legal Development: The paperwork
a. Permits and Clearances
b. Concept and Final Plans
c. Surveys
d. City/Municipal Planning Office
e. City/Municipal Council
f. City/Municipal Engineer’s Office/Office of the Building
Official (OBO)
g. Bureau Of Lands
h. Housing and Land Use Regulatory Board (HLURB)
i. Register Of Deeds (ROD)
j. Assessor’s Office
2.Physical Development
a. Site Clearing
b. Entrance/Exit Gates
c. Drainage System
d. Construction of Roads
e. Construction of Houses
f. Construction of Amenities
g. Electrical Supply
h. Water Supply
i. Other Utilities
 QUICK GUIDE
ON
REAL ESTATE LAWS AND
ISSUANCES
ON
SPECIAL & TECHNICAL
KNOWLEDGE
EO419 Task Force on Human Settlements (TFHS ) (9/19/75)
PD 933 Human Settlements Commission (HSC) (05/13/76)
PD1396 Human Settlements Regulatory Commission (HSRC)
(6/2/78)
EO 648 Reorganizing HSRC (2/07/81)
EO 71 Devolution of HLURBs function to approved
subdivision plans to LGUs
EO 72 Providing for the preparation and implementation
of the Comprehensive Land Use Plans (CLUPs) of
Local Government Units pursuant to the Local
Government Code of 1991 and other pertinent laws.
EO 90 Identifying the government agencies essential
(1986) for the National Shelter Program and defining
their mandates, Coordinating Council (HUDCC),
rationalizing funding sources and lending
mechanisms for home mortgages.
EO 184 Creating socialized housing one-stop
processing centers
EO 648 Reorganizing the Human Settlement
(1981) Regulatory Commission. Declared the HLURB
as the planning, regulatory and quasi-judicial
instrumentality of government for land use
development
ACT 3135 An Act to Regulate the Sale of Property Under
Special Powers Inserted in or Annexed to Real
Estate Mortgages
BP 220 An act authorizing the Ministry of Human
(1982) Settlements to establish and promulgate different
levels of standards and technical requirements for
economic and socialized housing projects in urban
and rural areas from those provided under
Presidential Decrees No. 957, 1216, 1096 and
1185.
PD 856 Code of Sanitation of the Philippines
PD 953 Requiring the Planting of trees in Certain Places
and Penalizing Unauthorized Cutting
PD 957 The Subdivision and Condominium Buyer’s Protect
(1976) Decree/regulating the sale of subdivision lots and
condominiums, providing, penalties for violations
thereof)
PD 1216 Defining “Open Space” in residential subdivision
amending Sec. 31 of P.D. 957, requiring subdivision
owners to provide roads, alleys, sidewalks and
resident open space for parks or recreating use.
PD 1344 Empowering the NHA to issue writ of execution in
enforcement of its decisions under P.D. 957
PD 1529 Property Registration Decree
PD 1752 Home Development Mutual Fund Law of 1980
RA 7899 Amending Sections 4 and 6 of R.A. 4726 (The
Condominium Act)
RA 9856 The Real Estate Investment Trust (REIT) Act of 2009
RA 9904 Magna Carta for Homeowners and
Homeowners Associations
HLURB Board Res. No. 890 Series of 2012

Revised Implementing Rules and Regulations to

Govern Section 18 of Republic Act No. 7279
HISTORICAL
BACKGROUND
Task Force on Human
Settlement (TFHS)
Executive Order No. 419 (9/19/73)

Human Settlements Commission (HSC)

Presidential Decree No. 933 (5/13/76)

Human Settlements Regulatory Commission

(HSRC)
Presidential Decree No. 1396 (6/2/78)
 Executive Order No. (2/07/81)
Reorganizing H S R C
transferred from the National Housing Authority:
 regulates the sale of subdivision and condominium
 Registration and issuance of LS to Subdivision Projects

Housing and Land Use Regulatory Board (HLURB)

Executive Order No. 90 (12/17/86)

*designated as the sole regulatory body for housing & land development
*to encourage greater private sector participation in low cost housing
*liberalization of development standards, simplification of regulation
 Vision...
A well planned and self-reliant communities via land
and housing regulations
Mission...
To promulgate and enforce land use and housing
regulations which sustain a balance among economic
development advancement, social justice and
environmental protection for the equitable distribution and
enjoyment of developmental benefits.
 P D #957:
THE SUBDIVISION & CONDOMINUIM
BUYER’S PROTECTIVE DECREE

Regulating the sale of subdivision or

subdivision lots & condominiums,
providing penalties for violations thereof

Implementing arm:
Housing & Land Use Regulatory Board
(HLURB)
 REGISTRATION of PROJECTS
1. Name of owner
2. The location of the owner’s principal business office
3. The names & address of all directors & officers of
the business firm
4. The general character of the business
actually transacted by the owner
5. A statement of the capitalization of the owner
 Attachment to Project Registration

1. A copy of the subdivision or condominium plan

2. A copy of any circular, prospectus, brochure or advertisement
3. A balance sheet showing all assets & liabilities
4. A title to the property, if free from all liens & encumbrances

Document to be issued:
Certificate of
Registration
 LICENSE TO SELL

• Must be secured within two weeks after receipt of the CR

• Certifies that:
• Owners or dealer is of good repute
• His business is financially stable
• The proposed sale would not be fraudulent
 SUSPENSION of the LICENSE TO SELL

1. Any information filed by the owner or dealer

was misleading, incorrect, inadequate or
incomplete

2. The sale or offering of the sale may result in a

fraud upon prospective buyers
 REVOCATION of CR & LICENSE TO SELL

When the owner or dealer:

1. Becomes insolvent
2. Has violated any provisions of this Decree
3. Has been or is engaged or about to engage in
fraudulent transaction
4. Has made any misrepresentation of the project
5. Is of bad business repute
6. Does not conduct his business according to law or
sound principles
 EXEMPTIONS

1. Sale of a subdivision lot resulting from the partition

of land among co-owners or co-heirs
2. Sale or transfer of subdivision lot or a condominium
unit by the original buyer & subsequent sale of the
same property
3. Sale of subdivision lot or condominium unit by
the mortgagee to liquidate a bonafide debt
4. Bulk buying (when sold as bought)
 PERFORMANCE BOND

• Amount: equivalent to the balance of the value of

the undeveloped portion of the project
• To guarantee the construction & maintenance of
the roads, gutters, drainage & sewerage
• Authorizes the HLURB to use the performance bond
to complete the project development
 SECTION 11:
REGISTRATION of DEALERS,
BROKERS & SALESMEN

No real estate dealer, broker or salesman shall engage

in the business of selling subdivision lots or
condominiums units unless he has registered with the
HLURB
REVOCATION of REGISTRATION od DEALERS,
BROKERS & SALESMAN

• Has violated any provision of this Decree

• Has made a material false statement in his application
• Has been guilty of fraudulent act
• Has demonstrated his unworthiness
 MORTGAGE by DEVELOPER

• Cannot be done by the developer without prior

approval by the HLURB
• Can only be allowed by the HLURB if the proceeds of
the loan will be used for the development of the project
• An escrow account will be opened involving HLURB
and the developer
 ADVERTISEMENT

• Must reflect the real fact and must not be misleading

or deceiving
• The owner or developer shall be answerable and
liable for those contained in all ad materials
 TIME COMPLETION

• Within one year from the issuance of the license to

sell NON-FORFEITURE OF PAYMENTS:

No installment payments by the buyers shall be forfeited by

the owner or developer or his failure to finish the
development within the time frame required.
 FAILURE TO PAY of INSTALLMENTS

• Covered by RA #6552 (The Maceda

Law) ISSUANCE OF TITLE:

• Upon full payment
• If mortgaged by developer, he should redeem
and deliver the title within six months
 PROPERTY TAX

• Shall be paid by the developer if title has not

been passed on to the buyer
• However, if the buyer has already taken possession of
the property, property tax will now be paid by the
buyer.
 OTHER PROVISIONS

ACCES TO PUBLIC OFFICES IN THE SUBDIVISION:

No developer shall deny any person free access to
any public office located within the subdivision or
may be reached only through the subdivision.

RIGHT OF WAY TO PUBLIC ROAD:

The developer must secure right of way access to
any existing public road.
ORGANIZATION OF HOMEOWNERS
ASSOCIATION:
Shall be initiated by the developer and organized
among the buyers & residents of the project

DONATION OF THE ROADS & SPACES TO THE LGU:

• At the option of the developer
• Once donation is accepted ,cannot be
converted for any other purpose
TAKE -OVER DEVELOPMENT

• HLURB may be take-over & complete the development

of the project at owner’s expense
• If they refuse d or failed to develop and complete
the project.
• After the take-over, HLURB may demand, collect and
receive installment payments which shall then be
used for the project.
 PD #1216:
DEFINING REQUIRED “OPEN SPACE” in
RESIDENTIAL SUBDIVISIONS

REQUIREMENT:
Developer must allocate 30% of the gross area of
any development project for open space.

OPEN SPACE:
An area reserved exclusively for parks, roads,
alleys, sidewalks, playgrounds, recreational uses,
centers, clubhouses and other similar facilities &
amenities
COVERAGE:
Project lot area of one hectare or more.

ALLOCATION FOR PARKS, PLAYGROUNDS & RECREATIONAL

USE
(must not be all 30% for roads)
LAND DENSITY (per hectare) CATEGORY ALLOCATION
66 to 100 family lots High density or 9.0%
socialized housing
21 to 65 family lots Medium density or 7.0%
economic housing
20 family lots or below Low density or open 3.5%
market housing
RA 7279:

THE URBAN DEVELOPMENT &HOUSING

ACT (UDHA) OF 1992

BALANCED HOUSING DEVELOPMENT:

A subdivision or condominium developer must
also develop the equivalent of 20% of his
project for socialized housing.
EXEMPTIONS:

1. socialized housing project development

2. With four units or less

MODE OF COMPLIANCE:
1. 20% of the total land area
2. 20% of the total project cost
Mode of compliance

1. New settlements
2. Slum upgrading
3. Community Mortgage Program (CMP)
4. Joint venture projects with NHA
5. Housing/Pabahay Bonds
OTHER PROVISIONS

CREDITS:
May develop in excess of the required 20% to build up
future credits to be used later

PROJECT LOCATION:
If no single land is feasible or available in the
locality, development of separate sites is allowed.

TIME OF COMPLETION:
One year from issuance of the License to Sell.
Batas Pambansa Bilang 220 s. 1982
An act authorizing the HSRC (now HLURB) to establish and
promulgate different levels of standards and technical requirements
for Economic and Socialized Housing Projects in urban and rural areas
from those provided under Presidential Decrees No. 957, 1216, 1096
and 1185.
 Republic Act No. 7160
(Local Government Code
of 1991)
• Under (Sec 447 & 458 (a)(2)(x). Subject to national
law, process and approved subdivision plans for
residential, commercial, or industrial purposes and
other developmental purposes, and collect
processing fees and other charges, the proceeds of
which shall accrue entirely to the municipality;
Provided however, that where approval of the
national agency or office is required, said approval
shall not be withheld more than thirty (30) days
from receipt of the application. Failure to act on
the application within the period stated above shall
be deemed an approval thereof.
Executive Order No. 71 s. 1993;

Devolution of HLURB’s function to approve subdivision plans to LGUs

Processing Approval for:

1. PALC / PSDP – Preliminary Approval and

Locational Clearance/Preliminary Subd.
Development Permit
2. Final Approval (FA) / Dev’t. Permit (DP)
3. Approval of Plan Alteration
4. Individual / Group Building Permit
5. Certificate of Occupancy
 Hearing, evaluation and resolution of opposition against the
issuance of PALCs & DPs, and petitions to revoke approvals, clearances
and permits it has issued.
 Monitoring of the nature and progress of land developments and
housing construction of projects whose subdivision and building
plans the LGU has approved.

 Imposition of appropriate measures to enforce compliance with

terms and conditions of their approval such as issuance of Notice of
Violation, Show Cause Order, Order of Imposition of Administrative
Sanctions & Cease Desist Order.
RETAINED FUNCTIONS(for HLURB):
Processing of Application for:

1) Certificate of Registration & License to Sell

2) Approval of Condominium Plan
3) Mortgage Clearance
4) Advertisement Approval
5) Reduction or Cancellation of PB
6) Issuance of Certificate of Completion
RETAINED FUNCTIONS:
General monitoring and Visitorial Powers to ensure and enforce
compliance with the provisions of PD No. 957 and their implementing
regulations, including the imposition of administrative sanctions on
all subdivision and condominium projects that it has issued DP, Cr
and/or LS;

Adjudication of all complaints filed pursuant to PD 957, PD1216,

PD1244, BP 220 and related laws
 SUBDIVISION PROCESSING
FLOW CHART

P A L C (PSDP)

•Alterations of Plan
•Building Permit
F •Cert. of Occupancy
A / DP

CR/LS •Ad Approval

•ETD
•Mortgage Clearance
COC •Change of Name /
Donation of Roads Ownership
& Open Spaces
SUBDIVISION PROJECT

a tract or parcel of land registered under Act. No. 496 which

is partitioned primarily for residential purposes into individual
lots with or without improvements thereon and offered to
the public for sale, in cash or in installment terms. It shall
include all residential, commercial, industrial and recreational
areas, as well as open spaces and other community and
public areas in the project.
Sale or Sell – shall include every disposition, or attempt to
dispose, for valuable consideration, of a subdivision lot,
including the building and other improvement thereof. It shall
also include a contract to sell, a contract purchase and sale,
an exchange, an attempt to sell, an option of sale or
purchase, a solicitation of a sale, or any offer to sell, directly
or by an agent, or by a circular, letter, advertisement or
otherwise.

Broker – any person who, for commission or other

compensation, undertakes to sell or negotiate the sale of a
real estate belonging to another.
 Salesman (now “salesperson” as per RESA)-a
person regularly employed by a broker to perform, for
and in his behalf, any or all the functions of a real estate
broker.

Shell house–a habitable dwelling unit which unit

met the minimum requirements for a housing core with
the following additional components being included as
part therefore:

a) all exterior walls enclose the unit,

b) openings for doors and windows,
c) plumbing fixtures,
d) electrical wiring within the unit and
e) Floor
.
Complete House :
A habitable dwelling unit which met the minimum
requirements for shell house with the following additional
components being included as part thereof: all windows and
doors and partition wall for separating functional areas.

OPEN SPACE :
shall refer to areas allocated to the following
purposes: Circulation Parks/playground
Community Facilities Other common areas
Easement
Different Types of Subdivision Projects (Per HLURB)

Residential Subdivision
Under Pres. Decree No. 957

 Open Market Housing

 Medium Cost Housing

Under Batas Pambansa Bilang 220

 Economic Housing
 Socialized Housing
Price Ceilings pursuant to HUDCC Resolution

Socialized Housing
maximum of P 400,000.00

Low Cost Housing:

•Level 1
above P 400,000.00 to 1,250,000
•Level 2
P 1,250,000 to 3,000,000
OTHER TYPES OF SUBDIVISION PROJECTS

•Commercial Subdivision
•Industrial Subdivision
•Farm lot Subdivision
•Memorial Park/Cemetery
SITE CRITERIA

Availability of basic needs

a. Water
b. Movement and Circulation
c. Storm Drainage
d. Solid & Liquid Waste Disposal
e. Parks / Playground
f. Power
Physical Suitability
• Must have characteristics assuring healthful, safe
and environmentally sound community life

Accessibility
Site must be served by a road that is readily
accessible to public transportation lines
Design Parameters

Land Allocation:
Under PD 957 Subdivision Projects with an area one (1)
hectare or more:
Saleable area = max. of 70%
non-saleable area = min. of 30%

Under BP 220 Subdivision Projects:

no fix ratio for saleable and non-saleable area
Parks and Playground

Area allocated for P/P shall be mandatory for projects 1 ha.

and above and shall be strategically located

It shall be non-alienable and non-buildable for community hall

but buildable for basketball court.
 Parks And Playgrounds Allocation

PD 957 BP 220
Density Parks & Playground Density Parks & Playground
Allocation Allocation
20 & below 3.5% 150 & below 3.5%
21 – 25 4.0% 151 – 160 4.0%

26 – 35 5.0% 161 – 175 5.0%

36 – 50 6.0% 176 – 200 6.0%

51 – 65 7.0% 201 – 225 7.0%
Above 65 9.0% Above 225 9.0%
COMMUNITY FACILITIES

Mandatory provision of areas for community facilities such

as: neighborhood multi-purpose center for projects with
area of one (1) hectare and above which is non-saleable.
However, the developer may provide additional areas for
community facilities such as schools and retail/commercial
center in excess of the mandatory requirement which shall be
deemed saleable. The use of the said area shall be indicated
in the plan and shall be annotated in the title thereto.
Area allocated for CF shall be mandatory for projects 1 hectare and above shall be
strategically located and accessible where it can serve a maximum number of
population, preferably near or side by side with parks/playgrounds.
Community Facilities Economic/Socialized Housing

Density Allocation
(No. of lot/DU* (% of gross area
per hectare) for CF**)

150 and below 1.0%

151 – 225 1.5%

Above 255 2.0%

*Dwelling Units
**Community Facilities
Road Right of Way for PD 957
Project Size Open Market Medium Cost
Major Collector Minor Major Collector Minor
2.5 & below 10 - 8 10 - 8
Above 2.5 – 5 has. 12 10 8 10 - 8
Above 5 – 10 has. 12 10 8 12 10 8
Above 10 – 15 has. 12 10 8 12 10 8
Above 15 – 30 has 15 12 10 12 10 8
Above 30 has 15 12 10 15 12 10
Road Right-of-Way for BP 220 (m.)
Project Size Economic Housing Socialized Housing
Major Collector Minor Major Collector Minor
2.5 & below 8 - 6.5 8 - 6.5
Above 2.5 – 5 has. 10 - 6.5 10 - 6.5
Above 5 – 10 has. 10 8 6.5 10 - 6.5
Above 10 – 15 has. 10 8 6.5 10 8 6.5
Above 15 – 30 has 12 8 6.5 10 8 6.5
Above 30 has 15 10 6.5 12 10 6.5
ROAD PAVEMENT

For PD 957
•Open Market – concrete for all types of Roads
•Medium Cost – concrete/asphalt for all types of roads

For BP 220 – concrete/asphalt for major and

minor roads.
Interconnecting Road
Interior subdivision project owner/developer must secure
road right-of-way to connect to the nearest public road with
a minimum ROW of 10 meters. This fact shall be annotated
on the title of said road lot and must be donated and deemed
turned over to the LGU upon completion of the said
interconnecting road.
 PUBLIC ROAD “A”

SUBD 1

SUBD 2

INTERCONNECTING
ROAD

SUBD 3

SUBD 4

PUBLIC ROAD “B”

Figure
Figure1:1:Interconnecting
InterconnectingRoad
Road
 Subdivision Project Setback Requirement:

Subdivision projects abutting main public road must

provide a setback of 3.00 meters deep by 5.00 meters length
at both side of the subdivision entrance to accommodate
loading and unloading of passengers.
 5.0 M 5.0 M

3.0 M
ENTRY 3.0 M

MAIN PUBLIC ROAD

Figure 2. Setback Requirement along Main Public Road

Width of Planting Strips and Sidewalks

Road Planting Strip Sidewalk

Width (meter) (meter)
(meter)

15.00 1.30 1.20

12.00 0.80 1.20

10.00 0.80 1.20

8.00 0.40 0.60

6.50 Optional 0.50
 MINIMUM LOT AREAS
Type of PD 957 BP 220
Housing
Open Medium Economic Socialized
Market Cost
Single 120 sq. m 100 sq. m 72 sq.m 64 sq.m
Detached
Duplex /SA 96 sq. m 80 sq.m 54 sq.m 48 sq.m
Rowhouse 60 sq. m 50 sq.m 36 sq. m 28 sq.m
 FIREWALL FIREWALL

DWELLING UNIT DWELLING UNIT

PROVISION OF FIREWALL:
Mandatory provision
of firewall for
duplexes/ single
attached units and at
every unit for row
houses.
 MINIMUM LOT FRONTAGE

Type of
PD 957 Economic Socialized
Housing/Lot
Single Detached
a) Corner lot 12 8m 8m
b) Regular lot 10m 8m 8m
c) irregular lot 6m 4m 4m
d) interior lot 3m 3m 3m
Duplex / SA 8m 6m 6m
Row house 4m 4m 3.5m
Price of saleable lots intended for single detached units shall not exceed 40% of the
maximum selling price of the H/L

package. Number of ROWHOUSE:

Shall not exceed 20 units per cluster but in case shall this be beyond 100 meters in
length.

Maximum Block Length :

Shall be 400 meters, however blocks exceeding 250 meters shall be provided with a
2- meter alley approximately at mid-length.
 Shelter component – MINIMUM FLOOR AREA

PD957 BP 220
Types of
Open Medium
Housing Unit Economic Socialized
Market Cost
Single Detached 42 30 22 18
Duplex/Attached 42 30 22 18
Rowhouse 42 30 22 18
 MINIMUM LEVEL OF COMPLETION

Type of Housing PD 957 BP 220

Economic Socialized
Single Detached Complete House Complete House Shell House (with
(based on the (based on the doors and windows
Duplex/SA
submitted submitted to enclose the unit)
Rowhouse specifications) specifications)

An approved Socialized Housing Project shall not be

upgraded to any other type of housing project.
 SETBACK/YARD REQUIREMENT

The minimum setback of dwelling units

both for economic and socialized housing
project shall be as follows.

Front Setback 1.5 meters

Sideyard 1.5 m. (from bldg line)
Rear Yard 2.0 meters
WATER SYSTEM

 Mandatory connection to appropriate public water

system provided that the water supply is enough to
meet the total daily requirements of the anticipated
population.

 If public water supply is not available, developer shall

provide for independent water supply system within
the subdivision project.
ELECTRICAL POWER SUPPLY

 Mandatory individual household connection

 Mandatory provision of street lighting per pole if 50

meters distance: at every other pole, if the distance is
less than 50 meters.

 Electric Bills for streetlights shall be proportionally

shouldered by the users thereof prior to issuance of
Certificate of Completion and turnover of open spaces
to LGU.
DRAINAGE SYSTEM

 The minimum drainage system for economic and

socialized housing shall be concrete lined canal with
load bearing cover.

 In case of non-existence of Drainage System in the

locality, catchment area for drainage discharge shall
be provided for and development by the owner/
developer in consultation with the Local Government
Unit.
 DDAARR

PALC (LGU) DP/FA (LGU) VSR (DENR/LMB)

ECC (DENR)

Registration
(HLURB)
CERT. OF License to Sell
(HLURB)
TITLE (ROD)
(

COC Certificate of
Completion

Flow Chart
(HLURB)
 Application for Subdivision Development Permit

1. All requirements for application for

preliminary subdivision development plan.
1.1) At least 2 sets of the Site Development Plan
(Schematic Plan) at a scale ranging from 1:200 to
1:2000 showing the proposed layout of streets, lots, parks
and playground and other features in relation to existing
conditions prepared, signed and sealed by any licensed and
registered architect, environmental planner, civil engineer
or geodetic engineer.
 1.2 One (1) set of the following documents duly signed
sealed by a licensed geodetic Engineer:

a. Vicinity map indicating the adjoining land uses, access

as well as existing facilities and utilities at least within
500 meters from the property boundaries of the
project, drawn to any convenient scale.

b. Topographic Plan to include the following:

b.1) Boundary Lines: bearings, distances tie point or reference
point, geographic coordinates of the tie point or Bureau
of Land Locational Monument (BLLM);

b.2) Streets, easements, width and elevation of road right-of-

way within the project and adjacent subdivisions/ areas;
b.3) Utilities within the land adjacent to the proposed
subdivision project; location, sizes and invert
elevations of sanitary and storm or combined sewers;
location of gas lines, fire hydrants, electric and
telephone poles and street lights, if any. If water
mains and sewers are not within or adjacent to the
subdivision, indicate the direction and distance to
and size of nearest one, showing invert elevations of
sewers, if applicable.
b.4) Ground elevation of the subdivision; for ground that
slopes less than 2%, indicate spot elevations at all
breaks in grade, along all drainage channels and at
selected points not more than 25 meters apart in all
directions: for ground that slopes more than 2%
either indicate contours with an interval of not more
than 0.5 meters if necessary due to irregular land or
need for more detailed preparation of plans and
construction drawings.
 b.5) Water courses, marshes, rock and wooded areas,
presence of preservable trees in caliper diameter
of 200 millimeters, houses, barns, shacks and other
significant features.

b.6) Proposed public improvements, highways or other

major improvements planned by public authorities
for future construction within/ adjacent to the
subdivision.

C. Survey Plan of the Lot(s) as prescribed in TCT(s).

 1.3) At least 2 copies of Certified True Copy of Title(s)
and Current Tax Receipt.

1.4)Right to use or deed of sale of right-of-way for

access road and other utilities when applicable,
subject to just compensation for private land.

2. Subdivision Development Plan consisting the site

development plan at any of the following scales: 1:200;
1:1000; or any scale not exceeding 1:2000 showing all
the proposals.
3. Civil and Sanitary Works Design Engineering
plans/construction drawings based on applicable
engineering code and design criteria.

4. Water System layout and details duly signed

and sealed by a licensed sanitary engineer or
civil engineer.

5. Certified true copy of Tax Declaration covering the

property(ies) subject of the application for the year
immediately preceding.
6. Certified true Copy of Environmental Compliance
Certificate (ECC) or Certificate of Non-coverage (CNC)
duly issued by the DENR, whichever is applicable.

7. Zoning certificate form HLURB Regional Office.

8. Certified true copy of DAR Conversion Order.

9. Project description for projects having an area of one (1)

hectare and above.

10. Certification/ Permit electric power and

water supply.
 RA #6552: REALTY
INSTALLMENT BUYER
PROTECTION ACT
(The Maceda Law)
 THE MACEDA LAW
An act to provide protection to buyers of real
estate on installment basis

DECLARED PUBLIC POLICY:

It is hereby declared a public policy to protect
buyers of real estate on installment payments
against onerous & oppressive conditions.
COVERAGE:
Sale or financing of real estate on installment
payments, including residential condominium
or apartments where the buyers has paid at
least two (2) years of installment.

EXCLUDED:
1. Industrial lots
2. Commercial building
3. Sale of tenants
In case more than two years of
installments were paid, rights of the
buyer in case of default in payment of
succeeding installments:
1. To pay, without additional interest, the
unpaid installments due within the grace
period earned which is one month grace
period for every year of installment
payments made.
2. However, this right shall be exercised by the
buyer only once every five (5) years of the
life of the contract & its extension(s).
3. If the contract is cancelled, the seller shall
refund the buyer the cash surrendered value of
the payments on the property equivalent to
50% of the total payments made.

4. After five (5) years of installments, 5% will be

added every year but not to exceed 90% of total
payments made.

5. The actual cancellation or the demand for

rescission of the contract is by notarial act &
only upon full payment of the cash surrendered
value to the buyer.
 6. Down payments & option deposits shall be
included in the total installment payments
made.
THE MATHEMATICS:
% CSV REMARKS YEARS
50% First 2 years 2
50% Up to 5th year 5
After 5 years, add per year:
90% Maximum
Less: 50% Earned after 5 years
40% Can still be earned
40%/5% per year Years to earn 40% 8
Total years to maximize CSV 13
OTHER RIGHTS OF THE BUYER
1. Buyer shall have the right to sell his rights or
assign the same to another person. The deed of
sale or assignment shall be done by notarial act.

2. Buyer shall have the right to reinstate the contract

by updating the account during the grace period
or before actual cancellation of the contract.

3. Buyer shall have the right to pay in advance any

installment or the unpaid balance of the purchase
price (balloon payment) at any time without
interest.
 Rights in case less than two
years of installment were paid:
1. Seller shall give buyer a grace period of not less
than sixty (60) days from the date the installment
became due.
2. If the buyer fails to pay the installment due at the
expiration of the grace period, the seller may
cancel the contract after thirty (30) days from
receipt of the buyer of the notice of cancellation or
the demand for rescission of the contract by
notarial act.

TOTAL GRACE PERIOD: Ninety (90) days