VP vows to cut red tape delaying realty projects

The government through the Housing and Urban Development Coordinating Council (HUDCC) vowed to trim down the bureaucratic red tape delaying real estate development to encourage more developers to invest on housing projects.

HUDCC chairman and Philippine Vice President Noli L. de Castro gave the assurance last Friday October 26, 2007 as he formally opened the national convention of the Chamber of Real Estate and Builders’ Associations, Inc. (CREBA) at the Waterfront Cebu City Hotel and Casinos.

De Castro said in order for the Philippines to take advantage of the robust growth in the real estate sector, the government should also make an easier pathway for developers to build more projects, by cutting off the bureaucratic red tape, and install a one-stop-shop that will house all shelter agencies that provides all needed permits and documentary requirements for developers to start new projects.

“The government will minimize headaches for developers, while we are also minimizing the entry of developers who are headaches to the nation,” de Castro said.

According to De Castro, he will propose for the deregulation of the business sector, especially in the real estate industry, minimizing redundant permit requirements. With this, about one-half of the total number of requirements for real estate development projects will be wiped out, and only necessary permits will be needed.

“We have to avoid requirements na ang daming signatories,” de Castro said.

The One-Stop-Shop aims to process developers’ requirement in 40 to 45 days, and will allow the issuance of temporary license to developers, in case there are delays in the compliances of necessary requirements.

Part of the deregulation of the business sector, specifically the real estate capitalists, is for the national agencies to help the Local Government Units (LGUs) perform their functions in providing attractive environment for developers.

For his part, CREBA national president Pedro C. Tario, he said that De Castro’s announcement is very timely, considering that the Philippines is now on a real estate “boom.”

Tario said the cooperation of the government is very vital in order to encourage developers in building more projects.

The trimming down of redundant permits is also a good action from the government, he said what is more important is to empower the local government units (LGUs) in defining their comprehensive land use plan (CLP), so as not to make complications with Department of Agrarian Reform (DAR).

Tario said because of lack of landbank availability, developers have limited opportunity to build more residential projects, as some lands in some areas are not yet declared as residential areas, but are still considered agricultural areas.

Tario said LGUs must have the will power to identify areas that are for residential use and must have power over DAR.

“The power of LGU to re-classify some [idle] lands [in a locality] must not be challenged by DAR,” Tario said.