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Republic of the Philippines Office of the President HOUSING AND URBAN DEVELOPMENT COORDINATING COUNCIL HUDCC RESOLUTION NO.2 Series of 2015 ECONOMIC HOUSING LOAN AND PRICE CEILING ADJUSTMENT WHEREAS, Section 15 (b) of Republic Act No. 8763, otherwise known as the Home Guaranty Corporation Act of 2000, states that the respective ceilings for socialized, low-cost, medium-cost, and open housing shall bejOintly determined by the Housing and Urban Development Coordinating Council (HUDCC) and the National Economic and Development Authority (NEDA); provided that at any time, but not more often than once every two (2) years, such ceilings may be reviewed or revised to conform to prevailing economic conditions; WHEREAS, the HUDCC approved the last loan ceiling adjustment for economic housing on 27 September 2006 through HUDCC Memorandum Circular No.4, series of 2006, defining the Low Cost Housing (Levell-Economic Housing) ceiling/package and increasing it from Php500,OOOto Php1,250,OOO.Subsequently, HUDCCMemorandum Circular No.5, series of 2007 redefined the low-cost housing packagesand loan ceilings; WHEREAS, in view of the increased prices in raw land, land development, construction materials and labor costs, the private sector proposed to adjust the Economic Housing Price Ceiling from Php1,250,OOOto Php1,700,OOO,representing an increase of 36%; WHEREAS, the Council considered the rising cost of production and analyzed the Consumer Price Index as well as the Construction Materials Wholesale Price Index which showed an increase from September 2006 to April 2015 of 40.32% and 34.75%, respectively; WHEREAS, the Council likewise determined the affordability level of the target market for Economic Housing based on the average income of families from the fourth to the eighth deciles using the 2012 Family, Income and Expenditure Survey data from the Philippine Statistics Authority; WHEREAS, having considered the foregoing, the proposed increase is found to be reasonable based on the evaluation of the present cost of production and is also within the affordability levels of the target market; THEREFORE, BE IT RESOLVED, AS IT IS HEREBY RESOLVED, that the Economic Housing Loan Ceiling be adjusted from Php1,250,000 to Php1,700,000 subject to existing financing guidelines of the Key Shelter Agencies (KSAs) and other financial institutions involved in housing. BE IT RESOLVED, FURTHER, that NEDA and the Housing and Land Use Regulatory Board (HLURB), pursuant to the foregoing adjustment of the Economic Housing Loan Ceiling, hereby set the price ceiling of Phpl,700,000.00 for economic housing, under Batas Pambansa 220. 9th & 15th Floor, Banco de Oro Plaza, Paseo de Roxas, City 01 Makati Tel. Nos.811-4116 to 17,811-4167 to 68.811-4170 to 73, 811-4112 to 13,811-4159,811-4220,811-4223,811-4250 812-9229,817-8964,893-3700,812-0735,893-0749,817-6995 Fax. Nos. 811-4158 (Office ot tne Chairman) *811-4118 (AFG) Website: http://www.hudcc.gov.ph

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  • Republic of the PhilippinesOffice of the PresidentHOUSING AND URBAN DEVELOPMENT COORDINATING COUNCIL

    HUDCC RESOLUTION NO.2Series of 2015

    ECONOMIC HOUSING LOAN AND PRICE CEILING ADJUSTMENT

    WHEREAS, Section 15 (b) of Republic Act No. 8763, otherwise known asthe Home Guaranty Corporation Act of 2000, states that the respective ceilings forsocialized, low-cost, medium-cost, and open housing shall be jOintly determined bythe Housing and Urban Development Coordinating Council (HUDCC) and theNational Economic and Development Authority (NEDA); provided that at any time,but not more often than once every two (2) years, such ceilings may be reviewedor revised to conform to prevailing economic conditions;

    WHEREAS, the HUDCC approved the last loan ceiling adjustment foreconomic housing on 27 September 2006 through HUDCC Memorandum CircularNo.4, series of 2006, defining the Low Cost Housing (Levell-Economic Housing)ceiling/package and increasing it from Php500,OOOto Php1,250,OOO.Subsequently,HUDCCMemorandum Circular No.5, series of 2007 redefined the low-cost housingpackages and loan ceilings;

    WHEREAS, in view of the increased prices in raw land, land development,construction materials and labor costs, the private sector proposed to adjust theEconomic Housing Price Ceiling from Php1,250,OOOto Php1,700,OOO,representingan increase of 36%;

    WHEREAS, the Council considered the rising cost of production and analyzedthe Consumer Price Index as well as the Construction Materials Wholesale PriceIndex which showed an increase from September 2006 to April 2015 of 40.32%and 34.75%, respectively;

    WHEREAS, the Council likewise determined the affordability level of thetarget market for Economic Housing based on the average income of families fromthe fourth to the eighth deciles using the 2012 Family, Income and ExpenditureSurvey data from the Philippine Statistics Authority;

    WHEREAS, having considered the foregoing, the proposed increase is foundto be reasonable based on the evaluation of the present cost of production and isalso within the affordability levels of the target market;

    THEREFORE, BE IT RESOLVED, AS IT IS HEREBY RESOLVED, that theEconomic Housing Loan Ceiling be adjusted from Php1,250,000 to Php1,700,000subject to existing financing guidelines of the Key Shelter Agencies (KSAs) andother financial institutions involved in housing.

    BE IT RESOLVED, FURTHER, that NEDA and the Housing and Land UseRegulatory Board (HLURB), pursuant to the foregoing adjustment of the EconomicHousing Loan Ceiling, hereby set the price ceiling of Phpl,700,000.00 for economichousing, under Batas Pambansa 220.

    9th & 15th Floor, Banco de Oro Plaza, Paseo de Roxas, City 01 Makati Tel. Nos.811-4116 to 17,811-4167 to 68.811-4170 to 73, 811-4112 to 13,811-4159,811-4220,811-4223,811-4250812-9229,817-8964,893-3700,812-0735,893-0749,817-6995Fax. Nos. 811-4158 (Office ot tne Chairman) *811-4118 (AFG)

    Website: http://www.hudcc.gov.ph

  • HUDCC Resolution No. 2 Series of 2015 Economic Housing.pdfHUDCC Resolution No. 2 Series of 2015 Economic Housing2_001.pdf