The Board of Investments (BoI) has tightened compliance for mass housing projects on the 20 percent requirement for socialized housing component in their developments under the draft specific guidelines for the 2010 Investment Priorities Plan.

For a mass housing project to be qualified for tax and fiscal incentives, it is required to provide socialized housing equivalent to at least 20 percent of the total project cost.

Under the proposed 2010 Specific IPP guidelines, compliance to this requirement could be through the development of new settlement; slum upgrading or renewal of areas for priority development either through zonal improvement programs or slum improvement and resettlement programs; joint venture projects with either the local government units or any of the housing agencies; participating in the community mortgage program; housing density of 100 units per hectare; and other modes allowed by the Housing and Urban Development Coordinating Council.

These modes of compliance have been identified to ensure that all mass housing projects would have a 20 percent socialized housing component that is geared towards affordable housing options for the low-income bracket market.

The 2009 IPP specific guidelines for mass housing projects did not identify the modes of compliance to the 20 percent socialized housing requirement although its provided that developers for horizontal mass housing projects are required to develop an area for socialized housing equivalent to 20 percent of the total subdivision area or total subdivision project cost within the same city or municipality, whenever feasible. This time, the 2010 IPP specific guidelines did not put a distinction whether it is a horizontal or vertical mass housing project as long as it meets with any of the above-mentioned modes of compliance.