Baguio Council confirms MOA on Luna terraces land development

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The City Council, during last Monday’s regular session, confirmed the memorandum of agreement (MOA) entered into by the local government and the Department of Human Settlements and Urban Development (DHSUD) for the land development component of the Luna Terraces located at Irisan barangay.

The city’s Luna Terraces project is intended for the socialized housing project pursuant to Resolution No. 239, series of 2019.

Earlier, the council passed Resolution No. 240, series of 2019 that approved the use of the land located at Irisan owned by the local government for socialized housing of local government employees and as a resettlement area for qualified beneficiaries.

The body pointed out that it is the mandate of the local government to provide decent, affordable housing and resettlement areas and safe grounds for the homeless and underprivileged.

On December 16, 2020, the city and DSHUD entered into an agreement where the latter committed to award to the local government the amount of P150 million to be utilized in the land development component of about 1.8 hectares, more or less, as the subject property of the city’s socialized housing and resettlement project called Luna Terraces permaculture community.

As per certification issued by Engr. Maria O. Amoroso, DHSUD-CAR regional director, the funds for the project is an escrow fund generated from the participation of developers as incentivized compliance to the balanced housing development program under the pertinent provisions of Republic Act (RA) 7279 otherwise known as the Urban Development and Housing Act of 1992, as amended by RA 10884 known as the Balanced Housing Development Program amendments.

Based on the aforesaid laws, the incentivized compliance may be utilized and allocated in favor of local government units by subsidizing the land development cost as donation and non-recoverable, making the socialized housing not only more affordable but also improving the livability and quality of the housing units towards developing sustainable communities.

As per DHSUD Memorandum Circular No. 2020-006 dated July 15, 2020, which provided supplemental guidelines to HLURB Board Resolution No. 965, series of 2017, in the implementation of a project under the balanced housing scheme, the participating local government has the right to choose, select or evaluate and engage the services of a private contractor, in coordination with the DHSUD regional office.

The council stipulated that as manifested by the City Planning and Development Officer in a letter dated August 4, 2021 and in her appearance at the city council regular session on September 6, 2021, the concerned city officials undertook the selection of the contractor for the site development plan and land development with instructions and coordination with the DHSUD regional office pursuant to the established rules and regulations for the implementation of the socialized housing program.

The city-owned property had previously been identified by the local government as the site of the socialized housing project of the local government to cater to the housing requirements of employees of the local government and beneficiaries of the housing projects pursuant to established guidelines for the said purpose. By Dexter A. See

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