NINETEENTH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
SENATE
s. No. 1257
gpcnate
of I In’ aTcr.i'ig'
■22 AUG 31 P6'A4
RECBVtD BY;
INTRODUCED BY SENATOR JOSEPH VICTOR G. BERCITO
AN ACT
ESTABLISHING AN ON-SITE, IN-CITY OR NEAR-CITY RESETTLEMENT 
PROGRAM FOR INFORMAL SETTLER FAMILIES IN ACCORDANCE WITH 
A PEOPLE'S PLAN AND MANDATING RELOCATING LOCAL 
GOVERNMENT UNITS TO PROVIDE OTHER BASIC SERVICES AND 
LIVELIHOOD COMPONENTS IN FAVOR OF THE RECIPIENT LOCAL 
GOVERNMENT UNIT, AMENDING FOR THE PURPOSE REPUBLIC ACT 
NO. 7279, AS AMENDED, OTHERWISE KNOWN AS THE "URBAN 
DEVELOPMENT AND HOUSING ACT OF 1992"
EXPLANATORY NOTE
The 1987 Philippine Constitution, Article XIII, Section 9 provides that, "The 
State shall, by law, and for the common good, undertake. In cooperation with 
the private sector, a continuing program of urban land reform and housing which 
will make available at affordable cost, decent housing and basic services to 
underprivileged and homeless citizens in urban centers and resettlement areas. 
It shall also promote adequate employment opportunities to such citizens. In the 
Implementation of such program the State shall respect the rights of small 
property owners."
Further, Section 10 declared that "Urban or rural poor dwellers shall not 
be evicted nor their dwelling demolished, except in accordance with law and in a 
just and humane manner. No resettlement of urban or rural dwellers shall be 
undertaken without adequate consultation with them and the communities where 
they are to be relocated."


It is not humane to just produce houses for informal settler families (ISFs) 
and relocate them in the provinces. If we build a structure for our people to dwell 
in, but is far from their work and the school of their children, yes we may have 
built a house, but it will never be a home. The ISF occupying the housing unit 
provided by government will leave and go back to the city. They will again build 
homes in prohibited places—both the government and the ISFs are now caught 
In a vicious cycle.
In relocating ISFs, the government should not just be simply complying in 
providing shelters. We want our fellow Filipinos not just to survive, but thrive in 
their communities. The resources they need to live a fruitful and meaningful life 
should be accessible to them.
Thus, in-city housing development should be considered, wherein 
relocation site or housing development will take place within the jurisdiction of 
the city where the affected ISFs and projected beneficiaries are located. Informal 
settler families and households with unsafe housing and experiencing dismal 
poverty will have better access to services and employment opportunities and 
will be fully integrated into city's socio-economic fabric and urban government 
system, compared to off-site resettlement.
This bill seeks to amend Republic Act 7279 or the Urban Development and 
Housing Act to guarantee sustainability and viability of resettlement projects for 
informal settler families (ISFs) by assuring access to their employment and 
empower them by making them active partners in government's resettlement 
program. It Is intended to address the need for shelter and close the gap in the 
delivery of affordable shelter for the vulnerable and disadvantaged families.
In view of the foregoing, the passage of the bill is earnestly sought.
JOSEPH VICTOR G. EJERCITO


NINETEENTH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
SENATE
s. No. 1257
f.
Senate
72 AUG 31 P6--44 
\
RI'CEIVID BV;
INTRODUCED BY SENATOR JOSEPH VICTOR G. EJERCTTO
AN ACT
ESTABLISHING AN ON-SITE, IN-CITY OR NEAR-CITY RESETTLEMENT 
PROGRAM FOR INFORMAL SETTLER FAMILIES IN ACCORDANCE WITH 
A PEOPLE'S PLAN AND MANDATING RELOCATING LOCAL 
GOVERNMENT UNITS TO PROVIDE OTHER BASIC SERVICES AND 
LIVELIHOOD COMPONENTS IN FAVOR OF THE RECIPIENT LOCAL 
GOVERNMENT UNIT, AMENDING FOR THE PURPOSE REPUBLIC ACT 
NO. 7279, AS AMENDED, OTHERWISE KNOWN AS THE "URBAN 
DEVELOPMENT AND HOUSING ACT OF 1992"
Be it enacted by the Senate and House of Representatives of the Phiiippines in 
Congress assembled:
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Section 1. Short Title. -This Act shall be known as the "On-site, In-City
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or Near-City Resettlement Act".
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Sec. 2. Amendatory Provisions. - For purposes of this Act, the following
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provisions of Republic Act No. 7279, otherwise known as the "Urban
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Development and Housing Act of 1992", are hereby amended as follows:
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(a) Section 3 of Republic Act No. 7279 Is hereby amended to read as
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follows:
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SEC. 3. Definition of Terms. - For purposes of this Act:
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"x X X
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"(w) X X x; [and]
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"(x) 'Zonal Improvement Program or ZIP' refers to the program of
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the National Housing Authority of upgrading and improving blighted
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squatter areas within the cities and municipalities of Metro Manila
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pursuant to existing statutes 
and pertinent executive issuances[.]?


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"(Y) 'ADEQUATE AND GENUINE CONSULTATION' REFERS 
TO THE STANDARD OF CONSULTATION WITH THE AFFECTED 
INFORMAL SETTLER FAMILIES (ISFS) WHICH SHALL REQUIRE 
THE FOLLOWING:
"(1) EFFECTIVE DISSEMINATION OF RELEVANT 
INFORMATION AND DOCUMENTS INCLUDING LAND RECORDS, 
HOUSING BUDGETS, THE PROPOSED PLAN OR PROJECT, 
ALTERNATIVE HOUSING OPTIONS, AND COMPREHENSIVE 
RESETTLEMENT PLANS;
"(2) REASONABLE TIME FOR THE PUBLIC TO REVIEW, 
COMMENT AND OBJECT TO THE PROPOSED PLAN OR PROJECT;
"(3) PROVISION BY THE GOVERNMENT OR NON­
GOVERNMENT ORGANIZATIONS OF LEGAL, TECHNICAL, AND 
OTHER ADVICE TO AFFECTED PERSONS ON THEIR RIGHTS AND 
OPTIONS;
"(4) PUBLIC HEARINGS THAT PROVIDE AFFECTED ISFs 
AND THEIR ADVOCATES WITH OPPORTUNITIES TO CHALLENGE 
THE EVICTION DECISION OR PRESENT ALTERNATIVE 
PROPOSALS AND TO ARTICULATE THEIR DEMANDS AND 
DEVELOPMENT PRIORITIES; AND
"(5) IN CASE NO AGREEMENT IS REACHED ON THE 
PROPOSALS OF THE CONCERNED PARTIES, AN INDEPENDENT 
BODY HAVING CONSTITUTIONAL AUTHORITY, SUCH AS A 
COURT OF LAW, SHOULD MEDIATE, ARBITRATE OR ADJUDICATE 
AS MAY BE APPROPRIATE;
"(Z) 'CIVIL SOCIETY ORGANIZATIONS OR CSOs' REFERS 
TO NON-GOVERNMENTAL ORGANIZATIONS (NGOs), PEOPLE'S 
ORGANIZATIONS (POs), COOPERATIVES, TRADE UNIONS, 
PROFESSIONAL 
ASSOCIATIONS, 
FAITH-BASED
ORGANIZATIONS, MEDIA GROUPS, INDIGENOUS PEOPLES 
MOVEMENTS, FOUNDATIONS AND OTHER CITIZEN'S GROUPS 
FORMED PRIMARILY FOR SOCIAL AND ECONOMIC


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DEVELOPMENT TO PLAN AND MONITOR GOVERNMENT 
PROGRAMS AND PROJECTS, ENGAGE IN POLICY DISCUSSIONS, 
AND ACTIVELY PARTICIPATE IN COLLABORATIVE ACTIVITIES 
WITH THE GOVERNMENT;
"(AA) 'IN-CITY RESETTLEMENT' REFERS TO A RELOCATION 
SITE WITHIN THE JURISDICTION OF THE CITY WHERE THE 
AFFECTED ISFs ARE LIVING;
"(BB) 'INFORMAL SETTLEMENTS' REFERS TO:
"(1) RESIDENTIAL AREAS WHERE HOUSING UNITS HAVE 
BEEN CONSTRUCTED BY SETTLERS ON LAND WHICH THEY 
OCCUPY ILLEGALLY; OR
"(2) UNPLANNED SETTLEMENTS AND AREAS WHERE 
HOUSING IS NOT IN COMPLIANCE WITH EXISTING PLANNING 
AND BUILDING REGULATIONS;
"(CC) 'INFORMAL SETTLER FAMILIES' COLLECTIVELY 
REFERRED TO AS ISFs, REFERS TO FAMILIES LIVING IN 
INFORMAL SETTLEMENTS AS THE LATTER IS DEFINED IN THIS 
ACT;
"(DD) 'NEAR-CITY RESETTLEMENT' REFERS TO A 
RELOCATION SITE IN A CITY OTHER THAN THE CITY OF THE 
AFFECTED INFORMAL SETTLEMENTS: PROVIDED, HOWEVER, 
THAT THE RELOCATION SITE IS ADJACENT TO THE CITY WHERE 
THE AFFECTED ISFs HAVE THEIR SETTLEMENTS;
"(EE) 'NON-GOVERNMENT ORGANIZATION OR NGO 
REFERS TO A DULY REGISTERED NON-STOCK, NON-PROFIT 
ORGANIZATION FOCUSING ON THE UPLIFTING OF THE BASIC 
OR DISADVANTAGED SECTORS OF SOCIETY BY PROVIDING 
ADVOCACY, TRAINING, COMMUNITY ORGANIZING, RESEARCH, 
ACCESS TO RESOURCES, AND OTHER SIMILAR ACTIVITIES, AS 
DEFINED UNDER REPUBLIC ACT NO. 8425, OTHERWISE KNOWN 
AS THE 'SOCIAL REFORM AND POVERTY ALLEVIATION ACT' AND 
ORGANIZED AND OPERATED EXCLUSIVELY FOR SCIENTIFIC,


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RESEARCH, EDUCATIONAL, CHARACTER-BUILDING AND YOUTH 
AND SPORTS DEVELOPMENT, HEALTH, SOCIAL WELFARE, 
CULTURAL OR CHARITABLE PURPOSES, OR A COMBINATION 
THEREOF, AND NO PART OF THE NET INCOME OF WHICH INURES 
TO THE BENEFIT OF ANY PRIVATE INDIVIDUAL PURSUANT TO 
SECTION 34 (H) (2) (C) (1) OF REPUBLIC ACT NO. 8424, AS 
AMENDED, OTHERWISE KNOWN AS THE 'TAX REFORM ACT OF 
1997';
"(FF) 'OFF-CITY RESETTLEMENT' REFERS TO A 
RELOCATION SITE DEVELOPED OUTSIDE AND NOT ADJACENT TO 
THE CITY WHERE THE AFFECTED ISFs HAVE THEIR 
SETTLEMENTS;
"(GG) 'PEOPLE'S PLAN' REFERS TO THE PLAN 
FORMULATED BY THE BENEFICIARY-ASSOCIATION, IN 
COORDINATION WITH THE PRESIDENTIAL COMMISSION FOR 
THE URBAN POOR WITH OR WITHOUT THE SUPPORT OF CSOS, 
WHICH SHALL CONTAIN A SITE DEVELOPMENT PLAN, 
INCLUDING NONPHYSICAL DEVELOPMENT COMPONENTS SUCH 
AS SELF-HELP HOUSING COOPERATIVE, LIVELIHOOD, SELF- 
HELP DEVELOPMENT, AND CAPABILITY BUILDING; AND
"(HH) 'SOCIAL PREPARATION' REFERS TO THE PROCESS 
OF ESTABLISHING SOCIAL, ORGANIZATIONAL, AND 
INSTITUTIONAL NORMS AND MECHANISMS. SUCH NORMS AND 
MECHANISMS WILL: (1) ENABLE THE SETTLERS TO COPE WITH 
CHANGES; AND (2) IN PARTNERSHIP WITH CONCERNED 
INSTITUTIONS AND STAKEHOLDERS, ENCOURAGE THE 
SETTLERS NOT ONLY TO WORK AMONG THEMSELVES FOR THE 
PURPOSE OF DRAWING UP AND UNDERTAKING THEIR HOUSING 
RESETTLEMENT PROPOSALS BUT ALSO TO ACTIVELY AND 
MEANINGFULLY PARTICIPATE IN HOUSING RESETTLEMENT 
PROJECTS UNDERTAKEN IN THEIR BEHALF, THUS RESOLVING 
COLLECTIVE ACTION PROBLEMS AMONG COMMUNITY MEMBERS


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AND COORDINATION PROBLEMS WITH GOVERNMENT AND
OTHER ENTITIES
(b) Section 23 of the same Act is hereby amended to read as follows: 
"SEC. 23. Participation of PROGRAM Beneficiaries OR AFFECTED 
ISFs, FORMATION OF BENEFICIARY-ASSOCIATION, AND 
FORMULATION AND IMPLEMENTATION OF A PEOPLE'S PLAN. 
- The local government units, in coordination with the Presidential 
Commission for the Urban Poor and concerned government agencies, 
shall afford Program beneficiaries OR AFFECTED ISFs or their duly 
designated representatives an opportunity to be heard and to 
participate in the decision-making process over matters Involving the 
protection and promotion of their legitimate collective interests which 
shall include appropriate documentation and feedback mechanisms. 
They shall also be encouraged to organize themselves [and undertake 
self-help cooperative housing and other livelihood activities] INTO AN 
ASSOCIATION FOR ACCREDITATION AS BENEFICIARIES OR 
AWARDEES OF OWNERSHIP RIGHTS UNDER THE 
RESETTLEMENT PROGRAM, COMMUNITY MORTGAGE 
PROGRAM, LAND TENURE ASSISTANCE PROGRAM, AND 
OTHER SIMILAR PROGRAMS IN RELATION TO A SOCIALIZED 
HOUSING PROJECT ACTUALLY BEING IMPLEMENTED BY THE 
NATIONAL GOVERNMENT OR BY THE LOCAL GOVERNMENT 
UNITS. They shall assist the government In preventing the incursions 
of professional squatters and members of squatting syndicates into 
their communities.
"In instances when the affected beneficiaries have failed to 
organize themselves or form an [alliance] ASSOCIATION within a 
reasonable period prior to the implementation of the program or 
projects affecting them, consultation between the implementing 
agency and the affected beneficiaries shall be conducted with the 
assistance of the Presidential Commission for the Urban Poor and the


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concerned non-government organization UNTIL AN ASSOCIATION 
IS FORMED IN PLACE.
"THE ASSOCIATION, IN COORDINATION WITH THE 
PRESIDENTIAL COMMISSION FOR THE URBAN POOR WITH 
OR WITHOUT THE SUPPORT OF CSOS, SHALL FORMULATE A 
'PEOPLE'S PLAN' THROUGH A PROCESS OF CONSULTATION 
WHICH SHALL CONTAIN A SITE DEVELOPMENT PLAN, 
INCLUDING NON-PHYSICAL DEVELOPMENT COMPONENTS 
SUCH AS SELF-HELP HOUSING COOPERATIVE, LIVELIHOOD, 
SELF-HELP DEVELOPMENT, AND CAPABILITY-BUILDING 
TRAININGS.
"THE ASSOCIATION, WITH THE ASSISTANCE OF CSOS AND 
GOVERNMENT AGENCIES INCLUDING THE NATIONAL ANTI­
POVERTY COMMISSION CNAPC), PRESIDENTIAL 
COMMISSION FOR THE URBAN POOR, NATIONAL HOUSING 
AUTHORITY, CITY OR MUNICIPAL SOCIAL WELFARE AND 
DEVELOPMENT OFFICE, SOCIAL HOUSING FINANCE 
CORPORATION, LOCAL GOVERNMENT UNITS, AND OTHER 
RELEVANT AGENCIES OF GOVERNMENT, SHALL AGREE ON, 
DEVELOP, AND IMPLEMENT THE PEOPLE'S PLAN.
"IN ACCORDANCE WITH THE PROTECTION GUIDELINES 
PROVIDED UNDER SECTION 28 OF THIS ACT, A RELOCATION 
ACTION PLAN SHALL BE AN INDISPENSABLE COMPONENT OF 
THE PEOPLE'S PLAN. THE RELOCATION ACTION PLAN SHALL 
INCLUDE THE FOLLOWING OBJECTIVES:
"(A) ENSURE SAFE, AFFORDABLE, DECENT, AND HUMANE 
CONDITION OF RELOCATION, INCORPORATING THEREIN 
APPROPRIATE DISASTER RISK REDUCTION MANAGEMENT 
AND CLIMATE CHANGE ADAPTATION STANDARDS;
"(B) PROVIDE ADEQUATE SOCIAL PREPARATION; AND
"(C) PREVENT FORCED EVICTION: PROVIDED, THAT 
PRIMARY CONSIDERATION SHALL BE GIVEN TO THE


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HOUSING FINANCIAL SCHEME SUGGESTED IN THE PEOPLE'S 
PLAN.";
(c) Section 26 of the same Act is hereby amended to read as follows: 
"SEC. 26. Urban Renewal and Resettlement. - [This] URBAN
RENEWAL AND RESETTLEMENT shall include the rehabilitation and 
development of blighted and slum areas and the resettlement of 
Program beneficiaries in accordance with the provisions of this Act. 
On-site development shall be implemented [whenever possible] 
AFTER ADEQUATE AND GENUINE CONSULTATION WITH THE 
AFFECTED ISFs, AND IN ACCORDANCE WITH THE PEOPLE'S 
PLAN FORMULATED PURSUANT TO SECTION 23 OF THIS ACT, 
in order to ensure minimum movement of occupants of blighted lands 
and slum areas.
"[The] WHERE DEMOLITION OR EVICTION IS ALLOWED IN 
THE AREA OCCUPIED BY THE PROGRAM BENEFICIARIES 
PURSUANT TO SECTION 28 OF THIS ACT, AND ON-SITE 
RESETTLEMENT CANNOT BE UNDERTAKEN BY REASON 
THEREOF, THE IN-CITY resettlement of the beneficiaries of the 
Program from their existing places of occupancy shall be undertaken 
only [when on-site development is not feasible and] after compliance 
with the procedures laid down in [Section 28 of this Act] THE SAME 
SECTION OF THIS ACT AND IN ACCORDANCE WITH THE 
PREFERENCE OF THE AFFECTED ISFs AS CONTAINED IN THE 
PEOPLE'S PLAN.
"SHOULD IN-CITY RESETTLEMENT NOT BE FEASIBLE, NEAR-CITY 
RESETTLEMENT SHALL BE CONSIDERED. OFF-CITY RESETTLEMENT 
SHALL ONLY BE RESORTED TO WHEN DIRECTLY REQUESTED BY THE 
AFFECTED ISFs THEMSELVES, AND MUST SATISFY THE 
REQUIREMENTS OF ADEQUATE AND GENUINE CONSULTATION 
PRIOR TO RELOCATION."; and
(d) Section 29 of the same Act Is hereby amended to read as follows:


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"SEC. 29. Resettlement. - Within two (2) years from the effectivity 
of this Act, the local government units, in coordination with the 
National Housing Authority, shall implement the relocation and 
resettlement of persons living in danger areas such as esteros, railroad 
tracks, garbage dumps, riverbanks, shorelines, waterways, and in 
other public places such as sidewalks, roads, parks, and playgrounds. 
The local government unit, in coordination with the National Housing 
Authority, shall provide relocation or resettlement sites with basic 
services and facilities and access to employment and livelihood 
opportunities sufficient to meet the basic needs of the affected 
families.
"IN INSTANCES WHEN THE RELOCATION OR 
RESETTLEMENT SITE IS LOCATED IN ANOTHER LOCAL 
GOVERNMENT UNIT, THE LOCAL GOVERNMENT UNIT THAT 
IMPLEMENTS THE RELOCATION OR RESETTLEMENT AND THE 
CONCERNED NATIONAL GOVERNMENT AGENCIES SHALL, 
THROUGH A MEMORANDUM OF AGREEMENT, PROVIDE THE 
OTHER BASIC SERVICES AND FACILITIES ENUMERATED 
UNDER SECTION 21 OF THIS ACT TO THE RECIPIENT LOCAL 
GOVERNMENT UNIT WHERE THE RELOCATION OR 
RESETTLEMENT SITE IS LOCATED.
"THE HOUSING AND URBAN DEVELOPMENT 
COORDINATING COUNCIL AND THE DEPARTMENT OF 
FINANCE - BUREAU OF LOCAL GOVERNMENT FINANCE SHALL 
FORMULATE THE IMPLEMENTING RULES AND REGULATIONS 
ON THE COST-SHARING MECHANISM NECESSARY TO FULLY 
IMPLEMENT THE PROVISION OF SUCH OTHER BASIC 
SERVICES AND FACILITIES.
"IN ADDITION TO THE FUNDING SOURCES PROVIDED 
UNDER SECTION 42 OF THIS ACT, THE ALLOCATION FOR THE 
BASIC SERVICES AND FACILITIES MAY BE TAKEN BY THE


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LOCAL GOVERNMENT UNIT IMPLEMENTING THE
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RELOCATION OR RESETTLEMENT FROM THE TWENTY
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PERCENT (20%) OF THE INTERNAL REVENUE ALLOTMENT
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APPROPRIATED FOR DEVELOPMENT PROJECTS AS
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MANDATED UNDER SECTION 287 OF REPUBLIC ACT NO. 7160,
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OTHERWISE KNOWN AS THE 'LOCAL GOVERNMENT CODE OF
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1991'."
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Sec. 3. Implementing Rules and Regulations. - The principles, policies and
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provisions of this Act shall be Incorporated in the National Shelter Program.
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The Housing and Urban Development Coordinating Council and the
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Department of the Interior and Local Government, in 
consultation and
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coordination with appropriate government agencies, 
CSOs, NGOs,
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representatives from the private sector, and ISFs, shall promulgate a new set of
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implementing rules and regulations within sixty (60) days from the effectivity of
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this Act. The Implementing rules and regulations shall be consistent with the
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provisions of this Act, particularly with the amendments, 
parameters, and
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standards introduced to Sections 23, 26, and 29 of the "Urban Development and
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Housing Act of 1992", and shall Include the following:
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a. A People's Plan template to guide ISFs in the development of their own
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People's Plan: Provided, That such template shall be a complete pro
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forma People's Plan: Provided, however. That such a template shall be
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used to benchmark the minimum standards in a People's Plan; and
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b. A guide to effective implementation of the People's Plan, including
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details on the necessity of the issuance of Internal memoranda by
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concerned agencies.
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The implementing rules and regulations issued pursuant to this section
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shall take effect thirty (30) days after its publication in two (2) national
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newspapers of general circulation.
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Sec. 4. Repealing Clause. -All laws, decrees, executive orders, proclamations,
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rules and regulations, and other Issuances, or parts thereof which are
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inconsistent with the provisions of this Act are hereby repealed, amended or
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modified accordingly.


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Sec. 5. Separability Clause. -If, for any reason, any part, section or provision
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of this Act is held invalid or unconstitutional, the remaining provisions not
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affected thereby shall continue to be in full force and effect.
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Sec. 6. Effectivity. - This Act shall take effect fifteen (15) days after its
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publication in the Official Gazette or in a newspaper of general circulation.
Approved,
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