Witnessed by President Arroyo in Malacañang and Finance Secretary Jose Isidro Camacho, the agreement was signed by Housing Secretary Michael Defensor; Commissioner Rene Bañez of the Bureau of Internal Revenue; and Lawyer Angelico Salud, president, National Home Mortgage Finance Corp. (NHMFC) which implements the Community Mortgage Program, over the weekend.
Through the home financing assistance, community associations of informal settlers are able to buy and develop a tract of undivided land under the concept of community ownership, one of the incentives for which is the exemption from the payment of capital gains tax.
Under the HUDCC-NHMFC-BIR agreement, NHMFC shall certify that the land to be purchased by the informal settlers is for a CMP project.
Based on this certification and on other necessary documents, BIR shall process, approve and issue the certificate authorizing registration and tax exemption clearance for the land within five days from the date of compliance with the documentary requirements.
Defensor said that these are among the administrative measures being undertaken by the Housing and Urban Development Coordinating Council and its attached agencies, including NHMFC, to cut drastically the processing time in the issuance of housing permits, licenses and related clearances in compliance with the directive earlier issued by the President.
Prior to this, HUDCC secured the exemption of on-site CMP projects from the registration and licensing requirements normally required by the Housing and Land Use Regulatory Board for housing projects, Defensor added.