How to secure a subdivision development permit in the Philippines (DHSUD/HLURB and LGU requirements)

How to Secure a Subdivision Development Permit in the Philippines: DHSUD and LGU Requirements

Introduction

In the Philippines, developing a subdivision—whether for residential, commercial, or mixed-use purposes—requires compliance with a rigorous regulatory framework designed to ensure orderly urban development, protect buyers, and promote sustainable land use. The primary permit for subdivision development is the Development Permit, which is typically issued by the Local Government Unit (LGU) with oversight and additional approvals from the Department of Human Settlements and Urban Development (DHSUD), formerly known as the Housing and Land Use Regulatory Board (HLURB). This permit authorizes the actual physical development of the subdivision, including site preparation, infrastructure installation, and lot subdivision.

Securing this permit involves navigating both national and local regulations, as land use is a shared responsibility between the national government (through DHSUD) and LGUs under the principle of decentralization enshrined in the 1987 Constitution and the Local Government Code of 1991 (Republic Act No. 7160). Failure to obtain the necessary permits can result in administrative sanctions, fines, project stoppage, or even criminal liability under relevant laws.

This article provides a comprehensive guide to the process, requirements, and considerations for securing a subdivision development permit in the Philippine context. It covers the legal basis, step-by-step procedures, documentary and technical requirements, timelines, fees, and post-approval obligations. Note that while this outlines general procedures based on established laws and practices, applicants should consult with legal experts or relevant agencies for case-specific advice, as regulations may evolve through administrative issuances or court rulings.

Legal Framework

The regulation of subdivision development in the Philippines is governed by several key laws and executive issuances, which emphasize buyer protection, environmental sustainability, and compliance with zoning standards. The main statutes include:

1. Presidential Decree No. 957 (PD 957), as amended - Known as the "Subdivision and Condominium Buyers' Protection Decree" (1976). This is the cornerstone law requiring subdivision developers to obtain approval for subdivision plans and a License to Sell (LTS) from DHSUD before selling lots or units. It mandates minimum design standards for open spaces, roads, drainage, water supply, and utilities.

2. Batas Pambansa Blg. 220 (BP 220) - Regulates economic and socialized housing projects, setting relaxed standards for affordability while still requiring development permits. It applies to subdivisions with lot sizes below certain thresholds (e.g., 100 sqm for economic housing).

3. Republic Act No. 7279 (RA 7279), as amended - The "Urban Development and Housing Act of 1992" (UDHA). It promotes balanced urban-rural development, mandates the provision of socialized housing in subdivisions (20% of area or cost for projects over 1 hectare), and integrates informal settler relocation.

4. Republic Act No. 7160 (Local Government Code of 1991) - Empowers LGUs to enact zoning ordinances, issue locational clearances, and approve development permits. LGUs must align their Comprehensive Land Use Plans (CLUPs) and Zoning Ordinances with national guidelines.

5. Executive Order No. 71 (1993) - Devolves certain HLURB functions to LGUs, allowing them to issue development permits for smaller projects (e.g., under 10 hectares in highly urbanized cities), while DHSUD retains authority over larger or complex developments.

6. Republic Act No. 11201 (2019) - Created DHSUD by consolidating HLURB and other housing agencies. DHSUD now handles registration of subdivision plans, issuance of Certificates of Registration (CR), and LTS, while providing technical assistance to LGUs.

7. Other Relevant Laws:

   • Republic Act No. 386 (Civil Code): Governs property ownership and contracts.
   • Republic Act No. 8749 (Clean Air Act), Republic Act No. 9003 (Ecological Solid Waste Management Act), and Presidential Decree No. 1586 (Environmental Impact Statement System): Require environmental clearances.
   • Republic Act No. 10175 (Cybercrime Prevention Act) and data privacy laws: Apply to digital submissions if applicable.
   • Department Administrative Orders (DAOs) from DHSUD, such as DAO No. 2020-02 (Revised Rules on Subdivision Development) and DAO No. 2021-03 (Streamlined Processing Guidelines).

DHSUD issues the CR and LTS after LGU approvals, ensuring national standards are met. For projects in areas without approved CLUPs, DHSUD may assume LGU functions.

Classification of Subdivisions

Subdivisions are classified based on type and scale, affecting the permitting process:

• Simple Subdivision: Division of land into lots without new roads (e.g., family partitions). Requires minimal approvals, often just from LGU.
• Complex Subdivision: Involves new infrastructure. Full DHSUD and LGU review required.
• Economic/Socialized Housing: Under BP 220, with incentives like tax exemptions but stricter affordability rules.
• Open Market Housing: Under PD 957, for higher-end developments.
• Horizontal/Vertical Developments: Includes townhouses or condominiums integrated with subdivisions.

Projects over 1 hectare must comply with socialized housing requirements under RA 7279.

Step-by-Step Guide to Securing the Permit

The process typically takes 3-6 months, depending on project complexity and agency efficiency. It involves pre-application consultations, submissions to LGU and DHSUD, and inspections.

Step 1: Pre-Application Preparation

• Site Selection and Feasibility Study: Ensure the land is suitable (e.g., not flood-prone, agricultural under RA 6657, or protected under RA 10066). Conduct soil tests, topographic surveys, and market studies.
• Title Verification: Secure a clean Transfer Certificate of Title (TCT) or Original Certificate of Title (OCT) free from liens. If agricultural, obtain DAR clearance for conversion under RA 6657.
• Zoning Check: Consult the LGU's CLUP and Zoning Ordinance to confirm the site is zoned for residential/commercial use.
• Environmental and Other Clearances:
  • Environmental Compliance Certificate (ECC) or Certificate of Non-Coverage (CNC) from DENR-EMB.
  • Barangay Clearance.
  • If near water bodies, LLDA Clearance (for Laguna Lake areas).
  • HLURB/DHSUD pre-consultation for large projects.

Step 2: Application to LGU for Locational Clearance and Development Permit

LGUs handle initial approvals under devolved powers.

• Submit to City/Municipal Planning and Development Office (CPDO/MPDO):
  • Application form for Locational Clearance (LC) or Zoning Certification.
  • For development permit, submit after LC.
• Review by Local Zoning Board of Adjustment and Appeals (LZBAA) or equivalent.
• Public Hearing: For reclassification or variances, a hearing may be required.
• Approval: LGU issues the Development Permit upon payment of fees. For projects <10 data-preserve-html-node="true" hectares in non-highly urbanized areas, this may suffice without full DHSUD review.

Step 3: Application to DHSUD for Certificate of Registration (CR) and License to Sell (LTS)

• Regional Office Submission: File at the DHSUD Regional Office covering the project area.
• Evaluation: DHSUD reviews for compliance with PD 957/BP 220 standards (e.g., 30% open space, road widths).
• Site Inspection: DHSUD conducts on-site verification.
• Issuance: CR is issued first, followed by LTS upon bond posting (1-5% of project cost as performance bond).

Step 4: Post-Submission Processes

• Revisions: Address any deficiencies noted by agencies.
• Appeals: If denied, appeal to DHSUD Central Office or courts.
• Monitoring: Agencies may monitor progress.

Requirements

Requirements are divided into documentary, technical, and financial. DHSUD and LGUs have harmonized checklists under the Ease of Doing Business Act (RA 11032).

Documentary Requirements

• Basic Documents:
  • Duly accomplished application form (DHSUD Form No. 1 for CR/LTS).
  • Certified true copy of TCT/OCT.
  • Tax Declaration and current Real Property Tax Receipt.
  • Vicinity Map (scale 1:10,000).
  • Right-of-Way agreements if needed.
• Corporate Documents (if applicant is a corporation):
  • SEC Registration, Articles of Incorporation, By-Laws.
  • Board Resolution authorizing the application.
• Clearances:
  • LGU Zoning/Locational Clearance.
  • DAR Conversion Clearance (if agricultural land).
  • DENR ECC/CNC.
  • Barangay Resolution of No Objection.
  • Homeowners' Association (HOA) documents if applicable.
• Socialized Housing Compliance: Sworn statement on 20% allocation or equivalent (e.g., payment to DHSUD fund).
• For BP 220 Projects: Affidavit of intent to sell at controlled prices.

Technical Requirements

• Subdivision Plan: Prepared by a licensed geodetic engineer/architect. Includes:
  • Site Development Plan (scale 1:1,000-1:2,000).
  • Engineering Plans (roads, drainage, sewerage, power, water).
  • Topographic Map.
  • Soil Boring Test Results.
• Design Standards (per PD 957/BP 220):
  • Minimum lot size: 72 sqm (PD 957), 25 sqm (BP 220 socialized).
  • Road width: 6.5m minimum.
  • Open space: 30% (including parks, community facilities).
  • Utilities: Potable water, electricity, drainage to prevent flooding.
• Environmental Impact Assessment (EIA): For projects >10 hectares or environmentally critical.

Financial Requirements

• Fees:
  • LGU: Varies by ordinance (e.g., P500-P5,000 for LC; 1-3% of project cost for development permit).
  • DHSUD: Processing fee (P720/ha for PD 957), inspection fee (P1,500/ha), registration fee (P2,880 + P3/lot).
  • Alteration fees if plans change.
• Bonds: Performance bond (cash, surety, or bank guarantee) to ensure completion.
• Taxes: Withholding taxes on payments, VAT if applicable.

Timelines and Processing

• LGU: 30-45 days for LC; 45-60 days for development permit (per RA 11032, simple transactions: 3 days; complex: 7-20 days).
• DHSUD: 30 days for CR/LTS evaluation; extensions possible.
• Delays may occur due to incomplete submissions or objections from stakeholders.

Post-Approval Obligations

• Project Implementation: Complete within timelines (e.g., 1 year per 5 hectares under PD 957).
• Buyer Protection: Provide individual titles within 6 months of full payment; maintain facilities until HOA takeover.
• Reporting: Submit progress reports to DHSUD.
• Amendments: Secure approval for any plan changes.
• Completion Certificate: Obtain from DHSUD upon finishing infrastructure.
• Penalties for Non-Compliance:
  • Fines: P20,000-P100,000 per violation (PD 957).
  • Suspension/Revocation of LTS.
  • Criminal charges: Up to 10 years imprisonment for fraudulent sales.
  • Cease-and-Desist Orders from DHSUD or LGUs.

Challenges and Best Practices

Common issues include land conversion delays, environmental objections, and bureaucratic red tape. Best practices:

• Engage licensed professionals early.
• Conduct community consultations to avoid protests.
• Use digital platforms (e.g., DHSUD's online portal) for submissions.
• Budget for contingencies (10-15% of project cost).

Conclusion

Securing a subdivision development permit in the Philippines is a multifaceted process that balances national housing goals with local planning autonomy. By adhering to DHSUD and LGU requirements under PD 957, BP 220, and related laws, developers can ensure legal compliance, mitigate risks, and contribute to sustainable urbanization. Prospective developers are advised to stay updated on administrative orders and seek guidance from DHSUD regional offices or legal counsel to navigate nuances specific to their project location and type. Proper permitting not only avoids penalties but also enhances project marketability and buyer confidence.

Disclaimer: Grok is not a lawyer; please consult one. Don't share information that can identify you.