MANILA, Philippines — The Board of Investments (BOI) has issued amendments to the strategic investment priority plan (SIPP) guidelines for mass housing projects, increasing the price ceiling to P3 million.
The guidelines were issued through BOI memorandum circular 2023-005 signed by Trade Undersecretary and BOI managing head Ceferino Rodolfo on Sept. 7 and only posted on the BOI’s website yesterday.
Under the memorandum circular, mass housing projects cover the development of units with a price ceiling of P3 million, higher than the previous price ceiling of P2 million.
The BOI said this also covers in-city low-cost dwelling projects for lease/rent.
“The Department of Human Settlements and Urban Development (DHSUD) in consultation with the National Economic Development Authority (NEDA) under DHSUD Department Order 2022-003 adjusted the price ceiling of economic housing from P1.7 million to P2.5 million.
“With the recent adjustments in the ceiling of economic housing approved by the DHSUD and NEDA and existing price ceiling for low-cost housing, the policy for mass housing should consider the said developments in the economic landscape of the country,” Rodolfo said.
The BOI amended the guidelines for mass housing projects under the economic and low-cost category, which are qualified for registration, noting that the selling price of each unit should not exceed P3 million. It should also not fall below the price ceiling of socialized housing based on the prevailing price issued by the DSHUD.
In addition, the project must be located outside NCR; with a minimum of 100 livable dwelling units in a single site or building; and must also be a new or expanding economic or low-cost housing project.
“For residential condominium projects, at least 51 percent of the total gross floor area must be devoted to housing units,” the circular said.
The BOI stressed that in cases of an unincorporated joint venture and similar arrangements between landowner and developer wherein the sharing scheme is in terms of the number of lots or units built, only the share of the developer may qualify for the registration.
“Economic housing projects with selling price not exceeding P2.5 million must build socialized housing units in an area equivalent to at least 15 percent of the total registered project area or total BOI-registered project cost for subdivision housing and 15 percent of the total floor area of qualified saleable housing units for residential condominium projects,” the BOI said.
The BOI also said that low-cost housing units with selling price exceeding P2.5 million, but not exceeding P3 million must build socialized housing units in an area equivalent to at least 20 percent of the total registered project area or total BOI-registered project cost for subdivision housing and 20 percent of the total floor area for qualified saleable housing units for residential condominium projects.
The investment promotion agency said all qualified housing projects are eligible for income tax holiday (ITH) and duty exemption on capital equipment, raw materials, spare parts or accessories, provided they follow certain conditions.
Among these conditions include the submission of proof of compliance of the planting trees within the project location or within the community where the project will be located within one year prior to ITH availment.
Projects with a five-year ITH must plant 300 trees, while projects with a six-year ITH must plant 500 trees.
In addition, the BOI noted that 25 percent of the project’s construction materials must also be sourced from domestic manufacturers.