THE Board of Investments (BOI) has issued amendments to the 2022 Strategic Investment Priority Plan (SIPP) in relation to Mass Housing.
The investment promotion agency posted Memorandum Circular No. 2023-005 or the Amendments to the 2022 SIPP and its Specific Guidelines in relation to Mass Housing on its website on October 9, 2023.
Mass Housing under the 2022 SIPP covers the development of mass housing units with a price ceiling of P3 million, which also covers in-city low-cost dwelling for lease/rent.
For the National Capital Region (NCR), only in-city low-cost dwelling for lease/rent may qualify for registration, the MC noted.
The MC released by BOI listed the requirements to be able to qualify for registration as Economic and Low-Cost Housing under the 2022 SIPP.
Among the requirements is that the selling price of each housing unit shall not exceed P3 million and shall not fall below the price ceiling of socialized housing, based on the prevailing price ceiling issued by the Department of Human Settlements and Urban Development (DHSUD).
To be able to qualify to register under such a housing category, the project must be located outside NCR and have a minimum of 100 “livable” dwelling units in a single site or building, per the MC.
It is also required that the project must be a new or expanding economic/low-cost housing project.
For residential condominium projects, at least 51 percent of the total gross floor area must be devoted to housing units to qualify for registration, the circular noted.
BOI noted in the MC that the projects that have been completed (with DHSUD certificate of completion) and have incurred sales of any housing unit prior to the date of Contract to Sell shall not qualify for registration.
Meanwhile, the MC also noted which ones may be considered as an expansion project.
For one, if the construction of additional floors or annexes intended for housing units and if the project will locate adjacent or contiguous to an existing housing project owned by the same entity and shall share common facilities including access to the existing project.
The BOI MC also noted that 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.
All qualified housing projects are only eligible for Income Tax Holiday (ITH) and duty exemption on capital equipment, raw materials, spare parts, or accessories; Provided, that a project that is eligible to five or six years of ITH shall submit proof of compliance of 300 trees or 500 trees, respectively, planted within the project location itself and/or within the community where the project will be located within one year prior to ITH availment.
Provided, further, that at least 25 percent of the project’s construction materials are sourced from domestic manufacturers, the MC noted.