What are the possible impact of this valuation reform on the Socialized Housing (SH) Program and Comprehensive Agrarian Reform Program (CARP)?

For Socialized Housing Program, the possible increase in the valuation will help the local government units in acquiring more funds for socialized housing projects. In effect, more housing projects will be provided to the beneficiaries and in result better welfare to its constituents. On the other hand, the possible increase in valuation may mean that the beneficiary of the socialized housing may need to pay or have a higher real property tax since the valuation of their property may exceed the threshold, however, the LGU may calibrate its assessment levels and tax rate to lessen the impact or possibly offset the increase in valuation.

For CARP, the impact is very minimal in the land value for the CARP covered properties. (It should be noted that the land valuation for CARP properties is included in the departure of Philippine Valuation Standards). The increase in the SMV has a little impact since only 10% of SMV is being contributed in the computation (i.e. Land Value = Capitalized Net Income x 0.6 + Comparable Sales x 0.3 + SMV x 0.10). Moreover, the increase in the land value will benefit the landowners since the value of their properties will be higher, especially during the just compensation which will paid by the government.

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