BOI taps NGOs for socialized housing scheme

MANILA, Philippines - The Board of Investments (BOI) is tapping the help of various non-government organizations (NGOs) like the Gawad Kalinga in order to develop socialized housing for the needy.

In the guidelines on compliance of vertical housing projects with the 20 percent socialized housing component approved by the BOI recently, it states that under the direct participation scheme a developer shall make a contribution to an accredited NGO or institution engaged in socialized housing and community development.

The amount should be equivalent to 30 percent of the 20 percent of building cost of its BOI registered project or 40 percent of its income tax holiday (ITH) at the option of the developer. The contribution may be cash or land and construction materials or the construction of socialized mass housing units.

The developer may also opt for the BOI’s investment scheme wherein the developer will build a socialized housing project with a total floor or home lot area equivalent to 20 percent of the total saleable area of its BOI registered project.

BOI said the developer may comply with the requirements on a staggered basis subject to fulfillment of certain conditions specified in the guidelines.

The guidelines cover vertical housing projects registered with the Board under the 2010 and 2011 Investment Priorities Plan (IPP).

In line with this, the BOI has also approved the Guidelines for Accreditation of NGOs/Foundation engaged in socialized housing and community development projects. The BOI said only accredited institutions shall be authorized to receive contributions from registered developers.

In an earlier interview, BOI managing head Cristino L. Panlilio said they have junked the proposal of developers to allow them to purchase bonds instead of helping construct socialized mass housing units.