CONGRESS OF THE PHILIPPINES f
SIXTEENTH CONGRESS fs 2013
First Regular Session {= oe

0AM
HOUSE OF REPRESENTATIVES, ’ j

House Bill No.__1166

Introduced by Representatives
GLORIA MACAPAGAL ARROYO and DIOSDADO MACAPAGAL ARROYO.

EXPLANATORY NOTE

The creation of the Department of Housing, Planning, and Urban Development
endeavors to consolidate, rationalize, and coordinate the functions and powers of the
National Home Mortgage Finance Corporation (NHMFC), Home Guaranty Corporation
(HGC), Home Development Mutual Fund (HDMF), National Housing Authority (NHA),
and Housing and Land Use Regulatory Board (HLURB), which are commonly referred to
as the “key shelter agencies”, with the end of establishing an efficient, effective,
comprehensive, and integrated national and local housing, planning, and urban
development program aimed at adequately addressing the basic housing needs and
requirement of the Filipino family.

Presently, each of the above key shelter agencies have their own governing
bodies, personnel, functions, and duties, as well as, systems and procedures. Consider
the following:

- The NHMFC is a major government home mortgage institution, the main
function of which is to operate a viable home mortgage market;

= The HGC mobilizes all necessary resources to broaden the capital base for the
effective delivery of housing and other related services, primarily for the low-
income earners;

= The HDMF (more popularly known as the Pag-IBIG Fund) focuses on the
administration of a nationwide provident fund for the government's housing
program and formulates investment and collection strategies relative to
housing;

- The NHA as the sole government agency which is engaged in the direct shelter
production focusing on providing housing assistance to the lowest 30% of
urban income earners; and


- The HLURB is the sole regulatory body for housing and land development that
ensures equitable distribution and enjoyment of development benefits.

Taking these in to perspective, there are problems in streamlining the
bureaucracy and in coordinating the efforts of said agencies. These concerns do not
work toward the full and timely implementation of the government's national housing
program,

Moreover, the key shelter agencies are also under the administrative supervision
of the Housing and Urban Development Coordinating Council (HUDCC) which is the
highest policy-making and coordinating office as regards housing and urban
development projects. This Council is yet another layer of officials and personnel,
functions and duties.

The ultimate goal is to provide decent and affordable houses to every Filipino
family at the soonest possible time and at the least cumbersome manner.

Corollary to this is the provision of livelihood opportunities, mass transportation,
public safety, education, health care, and a clean environment thereby bringing about
family dignity and stability, peace and order, population control and decongestion of
urban centers, and the generation of employment and taxes. And, all this will certainly
contribute to much-needed economic growth for the country.

It is for the foregoing purposes that the immediate approval of this bill is
earnestly sought.

GLORIA a ARROYO DIOSDADO MACAPAGAL ARROYO
Representative, 2nd District, Pampanga Representative, 2nd District, Camarines Sur


CONGRESS OF THE PHILIPPINES
SIXTEENTH CONGRESS
First Regular Session

HOUSE OF REPRESENTATIVES.
House Bill No. 6

Introduced by Representatives
GLORIA MACAPAGAL ARROYO and DIOSDADO MACAPAGAL ARROYO

AN ACT CREATING THE DEPARTMENT OF HOUSING, PLANNING AND URBAN
DEVELOPMENT, DEFINING ITS MANDATES, POWERS AN D FUNCTIONS,
PROVIDING FUNDS THEREFOREAND FOR OTHER PURPOSES

CHAPTER 1
TITLE, VISION AND POLICIES

SECTION 1. Title. - This Act shall be known as the “Department of
Housing, Planning and Urban Development Act of 2013”.

SEC.2. Declaration of Policies. - The State shall, by law and for the
common good, undertake in cooperation with the private sector, a continuing
program of housing and urban development which will make available at
affordable cost, decent housing and basic services to under-privileged 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.

The State shall pursue the realization of a modern, humane, economically-
viable and environmentally-sustainable society where the urbanization process is
manifest in towns and cities being centers of productive economic activity and is
led by market forces; where urban areas have affordable housing, sustainable
physical and social infrastructure and services facilitated under a democratic and
decentralized system of governance; and where urban areas provide the
opportunities for an improved quality of life and the eradication of poverty.

Poor dwellers in urban or rural areas shall not be evicted nor their dwelling
demolished except in accordance with law.


CHAPTER II
DEFINITION OF TERMS

SEC.3. Definition of Terms. - As used in this Act, the following terms shall

mean:

(a) Attachment refers to the lateral relationship between a department and
the attached agency or corporation for purposes of policy and program
coordination and as further defined in the Administrative Code.

(b) Housing refers to the system and its components which establishes the
residential quality of life including housing utilities, access to social
services and other community facilities, security, and other aspects
related to an individual’s residence.

(c) Informal Settler Families (ISFs) refer to households living in:

1) Lots without consent of the property owner;

2) Dangerous areas;

3) Areas for government infrastructure projects;

4) Protected/forest areas (except for indigenous people);

5) Areas for Priority Development (APD if applicable); and

6) Other government/public lands or other facilities not intended for
habitation.

(d) Urban Development refers to the process of occupation and use of land
or space for such activities as residential, industrial, commercial and the
like or their combinations necessary to carry out the functions of urban
living. It entails the building or rebuilding of more or less permanent
structures over land that is often withdrawn or converted from its
original use resulting in the creation of a built environment.

CHAPTER III
DEPARTMENT OF HOUSING, PLANNING AND URBAN DEVELOPMENT

SEC.4. Creation and Mandates of the Department of Housing, Planning
and Urban Development. - There is hereby created the Department of Housing,
Planning and Urban Development, hereinafter referred to as the Department,
through the consolidation of the Housing and Urban Development Coordinating
Council (HUDCC) and the Housing and Land Use Regulatory Board (HLURB). The
Department shall act as the primary national government entity responsible for


the management of housing and urban development. It shall be the sole and main
planning and policy-making, regulatory, program coordination, and performance
monitoring entity for all housing and urban development concerns, primarily
focusing on the access to and affordability of the basic human needs.

SEC.5. Powers and Functions. - The Department shall perform the
following:

(a) Formulate the national and urban development and housing policy and
strategy that ensures consistency with the Philippine Development Plan
to promote social! and economic welfare, in coordination and
consultation with the stakeholders, local government units (LGUs) and
other government agencies;

(b) Exercise initiative and assume a lead role in coordinating, supervising,
and integrating all government activities relative to housing and urban
development;

(c) Formulate housing finance policies to promote the establishment of a
self-sustaining, private sector-led housing finance system;

{d) Develop and maintain a housing database that shall include a shelter
and urban development management information system;

(e)Manage and oversee the fast-tracked development of proclaimed
housing sites, including the use of these land assets as resource
mobilization strategy to raise alternative funds in developing new town
housing projects which will serve as central relocation sites for the
affected informal settlers;

(f) Develop effective and efficient financing programs for housing
beneficiaries and developers;

(g) Ensure the Department’s participation in sustainable development,
climate change adaptation, and disaster risk reduction;

(h)Enter into contracts, joint venture agreements, public-private
partnerships, and such other memoranda of agreements or
understanding either domestic or foreign, under such terms and
conditions as the Department may deem proper and reasonable and
subject to existing laws;

Discharge all responsibilities of government that may arise from treaties,
agreements and other commitments on housing and urban
development to which it is signatory, including the determination of

(i


forms of assistance for housing and urban development to be extended
through bilateral or multilateral loans and/or assistance programs;

(i) Receive, take and hold by bequest, device, gift, purchase or lease, either
absolutely or in trust for any of its purposes from foreign and domestic
sources, any asset, grant or property, real or personal, subject to such
limitations as are provided under existing laws end regulations;

(k) Exercise oversight function, coordination, monitor and evaluate the
policies and programs of all its attached agencies;

() Conduct continuing and comprehensive studies and research necessary
for housing and urban development;

(m) Provide assistance to build the capability of LGUs in urban
development and management to strengthen the role of provinces,
cities and municipalities as the primary entities for urban development,
renewal planning and management;

(n)Monitor local government compliance with housing and urban
development laws, standards and guidelines as well with their judicious
and fair application of local housing and urban development ordinances;

(o) Support local government partnerships with communities, civil society
organizations, non-government organizations, and private groups in the
implementation urban development and renewal projects;

(p) Develop and establish a sector performance monitoring and assessment
mechanism and monitor and independently report on the performance
of national government agencies and LGUs in the housing and urban
development sector to enable continuing improvements in sector policy
and strategy formulation;

(q) Lead in the disposition of lands intended for housing and owned by the
Government or any of its subdivisions, instrumentalities, agencies or
government-owned or-controlled corporations (GOCCs) such as but not
limited to military reservations, lands reserved for government offices,
facilities and other installations, and other land assets including friar
lands which have not been used for the purposes for which they have
been reserved or set aside for the past ten (10) years from the
effectivity of Republic Act No. 7279, otherwise known as the Urban
Development and Housing Act of 1992;

(r) Declare an area as Urban Development Renewal site including the
development and implementation of sub-projects jointly with the
concerned LGUs under a Public-Private Partnership (PPP) arrangement;



(s} Advocate and assist the LGUs in the establishment of Special Housing
Fund (SHF) to be sourced from the proceeds of Real Property Tax (RPT)
pegged at one percent (1%) of the assessed value of real property which
will be exclusively used for housing and urban development and renewal
projects of the LGUs;

(t) Take the lead in the conduct of Pre- and Post-Proclamation activities as
orchestrator and facilitator of the entire disposition process, including
the stewardship of the Local Inter-Agency Committees (LIAC) which are
primarily tasked to oversee the implementation of housing proclamation
projects;

{u) Effect and oversee a single regulatory system that shall govern all
activities relative to the planning, production, marketing and
management of housing and urban development projects;

(v) Take over unfinished, incomplete or abandoned licensed real estate
development projects under Presidential Decree No. 957;

(w) Encourage the private sector to address and serve a larger part of the
country’s housing needs;

(x) Promote, accredit and regulate the use of indigenous materials and
technologies in housing construction;

{y) Implement prototype projects, including the power of eminent domain
in housing and urban development undertakings;

(z) Determine, fix and collect reasonable amounts to be charged as fees
and charges necessary for the effective implementation of all laws, rules
and regulations enforced by the Department and impose reasonable
fines and penalties for violation thereof;

(aa) Register, regulate and provide community development programs for
Homeowners Associations (HOAs) and Condominium Units Owners
Association/Corporations (CUOA/Cs);

(bb) Formulate and ensure the implementation of housing policies and
programs for urban poor communities and informal settler families
(ISFs) that will promote the social and economic welfare of homeless
families, particularly the poor and underprivileged;

(cc) Initiate and encourage deeper and active involvement and
participation of a broader spectrum of citizenry through housing
cooperatives and civil society organizations which shall be used as an
avenue through which housing needs are assessed and recognized and,


together with the local government units, serve as the implementing
agencies for housing and urban development programs; and
(dd) Perform such other related functions as may be mandated by law.

SEC. 6. Composition. - The Department shall be composed of the Office of
the Secretary, its immediate staff, the Offices of the Undersecretaries and
Assistant Secretaries with respect to their specific areas of responsibilities and
their respective staff, and the Offices directly supporting the Office of the
Secretary.

SEC.7. The Secretary. - The Secretary shall:

a) Advise the President on the promulgation of rules, regulations and other
issuances relative to matters under the jurisdiction of the Department;
Establish policies and standards for the efficient and effective operations
of the Department in accordance with the programs of the government;
Promulgate rules, regulations and other issuances necessary in carrying
out the Department's mandate, objectives, policies, plans, programs and
projects;

d) Exercise control and supervision over all personnel and functions of the
Department;

Delegate authority for the performance of any administrative or
substantive function to subordinate officials of the Department;

Call on other agencies and instrumentalities of the government and
private entities for cooperation and assistance in the performance of its
functions; and

8) Perform such other functions as may be provided by law or assigned by

the President.

The Secretary shall also serve as a voting member of the National Economic
and Development Authority (NEDA) Board and the governing Boards of the Social
Security System (SSS), the Government Service Issuance Center (GSIS), the
Climate Change Commission (CCC), the National Disaster Risk Reduction
Management (NDRMMC), and the Philippine Reclamation Authority (PRA). The
Secretary shall be a member of NEDA’s Committee on Infrastructure (INFRACOM),
Investment Coordinating Committee (ICC), and Social Development Committee
(SDC). The Secretary shall also be a member of the body authorized to formulate,
prescribe, or amend guidelines under R.A. No. 6957 as amended, otherwise
known as the Build-Operate-Transfer (BOT) Law.

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SEC.8. The Undersecretaries. - Taking into account the requirement of the
Department and subject to the approval of the President, the Secretary shall be
assisted by:
(a)One (1) Undersecretary for the Bureau of Policies, Coordination,
Monitoring, Evaluation and Programs;

(b) One (1) Undersecretary for the Bureau of Environmental, Land Use and
Urban Planning and Development;

(c) One (1) Undersecretary for the Bureau of Regulation of Housing and
Real Estate Development; and

(d) One (1) Undersecretary for the Bureau of Homeowners, Homeowners
Associations and Community Development.

They shall have the powers and functions as provided for in Section 10,
Chapter 2, Book IV of the Administrative Code of 1987. The Secretary is further
authorized to delineate and assign the other functional areas of responsibility of
the Undersecretaries,

SEC.9. Qualifications and Appointment. - The Secretary and
Undersecretaries shall be citizens and residents of the Philippines, of good moral
character, and of proven competence and integrity. They shall all be appointed by
the President. The Undersecretaries shall be career officers.

SEC.10. Departmental Bureaus and Regional Offices. - The Department
shall establish, operate, and maintain Bureaus under it such as but not limited to:

a) Environmental Land Use and Urban Planning and Development;

b) Housing and Real Estate Development;

c) Community Development;

d) Plans, Policies, Programs and Monitoring Group; and

e) Legal and Support and Services Group.

There shall be Regional Offices in all of the country’s administrative regions.
Each Regional Office shall be headed by a Regional Director.

In addition to the existing functions of the HUDCC and the HLURB, the
Regional Office shall perform such other functions as may be delegated by the
Secretary.

SEC.11. Staffing Pattern. - The development of the staffing pattern shall
be based on an assessment of the personnel requirements of the entire


Department as recommended by the Secretary and as approved by the
Department of Budget and Management (DBM). The remuneration structure of
the positions in the staffing pattern shall strictly conform to the Salary
Standardization Law as amended.

CHAPTER IV
HUMAN SETTLEMENTS ADJUDICATORY COMMISSION

SEC.12, Reconstitution of the HLURB as the Human Settlements
Adjudicatory Commission (HSAC}. - The HLURB is hereby reconstituted and shall
henceforth be known as the Human Settlements Adjudicatory Commission
hereinafter referred to as the HSAC, which shall operate as in independent
Commission within the Department.

SEC.13. Transfer of Adjudicatory Function of the HLURB to the HSAC. -
The adjudicatory function of the HLURB is hereby transferred to the HSAC,

SEC.14. Composition and Qualification of Members. - The HSAC shall be
composed of the Secretary and nine (9) full-time Commissioners: Provided, That
the term of incumbent Commissioners shall be respected: Provided, further, That
the subsequent appointees of the President shall be members of the Philippine
Bar of which three (3) Commissioners shall have experience in urban
development planning, sustainable development, climate change adaptation and
disaster risk reduction; three (3) shall be nominees of the urban poor and
homeowners associations; and three (3) shall come from the private sector:
Provided, finally, That each Division that shall be composed of three (3) members
shall have one (1) member representing the urban poor communities or the
homeowners and homeowners associations.

The Commissioners must have been engaged in the practice of law for a
period of at least five (5) years.

The Commissioners shall hold office for six (6) years or until they become
incapacitated to discharge the duties of their office, whichever comes earlier.

No person who has been convicted of a crime involving moral turpitude
shall be appointed at any time as a Member of the HSAC.


SEC.15. Collegiality, Divisions, and Sessions. - The HSAC shall exercise its
adjudicatory and all other powers, functions and duties through the Divisions. The
Divisions of the HSAC shall have exclusive appellate jurisdiction over cases
decided by its Arbiters,

The HSAC sitting en banc may, on temporary or emergency basis, allow
cases within the jurisdiction of any Division to be heard and decided by any other
Division whose docket allows the additional workload and such transfer will not
expose litigants to unnecessary additional expense.

The HSAC sitting en banc, presided over by the Secretary, shall sit en banc
only for purposes of promulgating rules and regulations governing the hearing
and disposition of cases before any of its Divisions and Arbiters in its Regional
Offices and in formulating policies effecting its administration and operations.

SEC. 16. Decisions and Resolutions. - The concurrence of two (2)
Commissioners of a Division shall be necessary for the pronouncement of a
judgment or resolution. Whenever a required membership in a Division is not
complete and the concurrence of two (2) Commissioners to arrive at a judgment
or resolution cannot be obtained, the most senior Commissioner shall designate
into the Division such number of additional Commissioners from the other
Divisions as may be necessary.

The conclusions of a Division on any case submitted to it for decision shall
be reached in consultation before the case is assigned to a Member for the
writing of the decision. It shall be mandatory for the Division to meet for purposes
of the consultation ordained herein. A certification to this effect signed by the
Presiding Commissioner of the Division shall be issued and a copy thereof
attached to the record of the cause and served upon the parties.

SEC.17. Precedence and Supervision. - The most senior Commissioner
shall be the Presiding Commissioner of the first Division and the two (2) next
senior Members shall be the Presiding Commissioners of the second and third
Divisions, respectively.

The HSAC sitting en banc may designate any Commissioner who shall have
administrative supervision over the HSAC and its Regional branches and all their
personnel including the Arbiters.

The HSAC shall be assisted by the Board Secretariat which shall perform
such similar or equivalent functions of the Board Secretary of the HLURB.


SEC.18. Compensation. - A Commissioner shall receive an annual salary at
least equivalent to an Undersecretary.

The incumbent full time Commissioners of the present HLURB shall remain
in office unless they opt to avail of the retirement and separation benefits as
provided for in Sec. 34 of this Act or are sooner removed for cause.

SEC.19. Jurisdiction. - In addition to the existing jurisdiction of HLURB, the
Arbiters shall exercise exclusive jurisdiction to hear and decide cases involving the
following:

a) Exclusive original jurisdiction on the following cases involving real estate

properties, subdivisions and condominiums:
1) Squatting on subdivision lots and condominium units;
2) Eviction and relocation of squatter communities in subdivisions
and condominiums;
3) Disputes involving buyer financing agreements with any financing
institution for condominium or subdivision projects;
Easements of right of way in subdivisions;
Disputes involving condominium corporations;
Disputes between landowners and developers, and between
banks/financing institutions and developers whenever the
interest of buyers is involved; and
7) Disputes involving the enforcement of CLUPs.
b) Housing rights. Exclusive original jurisdiction over violations of
administrative rules and regulations implementing Sections 7,8,18 and
28 of R.A. No. 7279.

The Secretary may assume jurisdiction over any complaint or case and
decide the same or certify such case for decision for the HSAC, when authorized
by both Houses of Congress through a resolution, if the controversy involves
massive fraud or unsound business practices of critical socio-economic or
environmental considerations that may have serious potential impact on the
interest if the sector or the general welfare.

Oe

SEC.20. Powers and Authorities of the HSAC. - In addition to the
adjudicatory powers given to HLURB, the HSAC shall exercise the following:
a) To issue writs and orders prohibiting demolitions, seizures or closures of
property including temporary writs or orders restraining demolitions,
seizures, and closures of property;


b) To issue writs and orders to execute demolitions or seizures or closures
of property in accordance with its decision or judgment;

¢) To impose administrative fines and/or penalties for violation of R.A. No.
7279, as amended, and other laws implemented by the HSAC, including
pertinent rules and regulations, orders, decisions, and/or rulings:
Provided, That the HSAC may adjust such fines not more than once
every three (3) years; and

To exercise such other powers as are implied, necessary, or incidental to
carry out the express powers granted to the HSAC or to achieve the
objectives and purposes of this Act, and other laws implemented by the
HSAC.

d

SEC.21. Criminal Prosecution, - The criminal prosecution for violation of
housing laws and regulations shall be instituted before criminal Courts having
appropriate jurisdiction.

SEC.22. The Arbiters - Qualifications and Appointment. - The existing
HLURB Arbiters shall be deemed qualified. Additional Arbiters shall be a member
of the Philippine Bar for at least three (3) years, with at least two (2) years of
experience or exposure in the field of real estate and land use development cases.

The President, upon the recommendation of the Secretary, shall appoint
Arbiters, as may be necessary, for each administrative region, upon the
recommendation of the HSAC en banc.

The HSAC en banc shall have the power to assign the Arbiters to the
regional Offices.

SEC.23. The Sheriff. - The HSAC shall appoint a Sheriff or such number of
Sheriffs in its Central and Regional branches. The person to be appointed to the
position of Sheriff should be a second grade Civil Service eligible and has finished
at least two (2) years of college. The Sheriff shall be responsible for the service
and execution of all writs, summonses and orders and other processes of the
HSAC.

SEC.24. Appeals. - Decisions, awards, or orders of the Arbiters shall be
final and executory unless appealed to the HSAC within fifteen (15) calendar days
from receipt of such decisions, awards, or orders. The appeal may be entertained
only on any of the following grounds:


a) If there is prima facie evidence or abuse of discretion on the part of the
Arbiters in rendering the questioned decision, award, or order;
b) If the decision, order, or award was secured through fraud or coercion,
including graft and corruption;
c) If the appeal is made purely on questions of award;
d) If serious errors in the findings of facts are raised, which errors would
cause grave or irreparable damage or injury to the applicant.
Decisions of the HSAC can be appealed to the Court of Appeals by way of a
Petition for Review within fifteen (15) calendar days from notice of judgment,
award, or order sought to be appealed, pursuant to Rule 43 of the Rules of Court.

SEC.25. Prohibition against Restraining Order of Injunction. - No lower
Court of the Philippines shall have jurisdiction to issue any restraining order or
writ of preliminary injunction or permanent injunction against the HSAC or its
Arbiters in any case, dispute, or controversy arising from, necessary in connection
with the application, implementation, enforcement, or interpretation of this Act
and other pertinent laws on hearing and on just and humane eviction or
declaration procedures.

SEC.26. Pending Cases. - All cases pending in regular Courts arising from
or in connection with the implementation of pertinent laws on housing and on
just and humane eviction and demolition procedures shall continue to be heard,
tried, and decided to their finality on such Courts.

CHAPTER V
ATTACHED AGENCIES

SEC.27. Attached Agencies and Corporations. - The following agencies
and corporations are hereby attached to the Department for policy and program
coordination, monitoring and evaluation:

a) National Housing Authority (NHA);

b) Home Guaranty Corporation (HGC);

c) National Home Mortgage Finance Corporation (NHMFC);

d) Home Development Mutual Fund (HDMF);

e) Social Housing Finance Corporation (SHFC); and

) Human Settlements Adjudicatory Commission (HSAC).


All these agencies shall continue to function according to existing laws and
their respective Charters. However, each of the heads of the attached agencies
shall enter into a performance contract annually with the Secretary. Such
contracts shall embody the national targets on housing and urban development
and shail include the over-all administration of the agency and the streamlining of
personnel for effective and efficient service.

The reorganization, merger, streamlining, abolition or privatization of any
attached GOCCs shall be in consultation, with the Department and the GOCC
concerned.

The appointment of the Board of Directors or Trustees of the attached
GOCCs shall be in accordance with R.A. No. 10149, otherwise known as the GOCC
Governance Act of 2011.

SEC.28. Nature of Attachment. - The Secretary shall be elected as
Chairperson of the governing Board of the NHA, HDMF, NHMFC, SHFC, and HGC.

CHAPTER Vi
OTHER PROVISIONS

SEC.29. Social Housing One-Stop Processing Centers (SHOPCs) - The
Department shall establish SHOPCs in the regions, which shall centralize the
processing and issuance of all required housing-related permits, clearances, and
licenses in accordance with Executive Order No. 45, series of 2001 entitled
“Prescribing time periods for issuance of housing and related certifications,
clearances and permits, and imposing sanctions for failure to observe the same”:
Provided, That for the foregoing purpose, the respective ceilings for socialized,
low cost/economic and middle-income housing shall be jointly determined by the
Department and the NEDA: Provided further, That at any time, but not more than
once every two (2) years, such ceilings may be reviewed or revised to confirm to
prevailing economic conditions. All agencies involved in the issuance of said
permits, clearances and licenses shall be represented in the SHOPC and shall
assign to SHOPC regional centers personnel who shall be sufficiently authorized to
process and issue the same.

SEC.30. Identification and Designation of Lands for Housing and Urban
and Rural Development. - For the purpose of designating lands for housing and


urban and rural development, the Department, the DENR, the DAR and the DA
shall, within one hundred eighty (180) days from the effectivity of this Act, jointly
identify agricultural lands which under R.A. No. 6657, otherwise known as the
Comprehensive Agricultural Reform Law, and other existing laws, rules and
regulations are already exempted from conversion requirements: Provided, That
the list shall exclude lands that are declared as non-negotiable or protected from
conversion under existing laws and issuances and those lands covered under R.A.
No. 6657: Provided further, That the designation of lands for housing and urban
and rural development purposes shall neither prejudice the rights of qualified
beneficiaries under R.A. No. 6657, nor undermine the protected agricultural areas
intended to ensure the attainment of food security under R.A. No, 8435,
otherwise known as the Agriculture and Fisheries Modernization Act of 1997
(AFMA) and other existing laws: Provided further, That in the case of lands
exempted from conversion though these have been approved by the DAR, if these
are contested by affected individual or community beneficiaries, it shall not be
allowed to proceed with any horizontal or vertical development without need for
any prior clearance or approval from the DAR or the DA consistent with the terms
of the approved order or conversion: Provided, finally, That all idle government
lands in highly urbanized cities are hereby prioritized for housing and urban
development purposes.

CHAPTER VII
TRANSITORY PROVISIONS

SEC.31. Absorption of Employees of the Consolidated Agencies. - The
existing civil servants of HUDCC and HLURB shall enjoy security of tenure and shall
be absorbed by the Department in accordance with their staffing patterns and the
selection process as prescribed under R.A. No. 6656 on the Rules on government
reorganization, unless the civil servant wants to avail of Section 34 hereon.

SEC.32. Transfer of Assets and Obligations. - The following dispositive
actions shall be implemented within six (6) months from the effectivity of this Act:
a) The assets, equipments, funds, records and pertinent transactions of
HUDCC and HLURB shall be transferred to the Department and the

HSAC; and


b) The Department and the HSAC shall cause the creation of additional
positions and augment their budget appropriations as may be needed.

SEC.33. Transition Period. - All transfer of functions, assets, funds,
personnel equipment, properties, transactions and personnel in the affected
national government agencies and the formulation and implementation of the
internal organic structures. Staffing patterns, operating systems, and revised
budgets of the Department and the HSAC shall be completed within six (6)
months from the effectivity of this Act, during which existing personnel shall
continue to assume their posts in holdover capacities until new appointments are
issued.

SEC.34. Separation from the Service. - Employees separated and/or
phased out from the service as a result of the consolidation and/or reorganization
under the provisions of this Act shall, within one (1) month from their separation
and/or phase out from the service, receive separation benefits in accordance with
existing laws.

In addition, those who are qualified to retire shall be allowed to retire and
be entitled to all benefits provided, under any of the existing retirement laws.

SEC.35. Transfer of Functions. - The following functions are hereby

transferred as stipulated hereunder:

a) The regulatory function of the HLURB, including the formulation,
promulgation, and enforcement of rules, standards, and guidelines are
hereby transferred to the Department;

b) The HLURB’s monitoring function, including the imposition of penalties
for non-compliance to ensure that LGUs will follow the planning
guidelines and implement their CLUPs/ZOs shall likewise be transferred
to the Department; and

c) The registration of incorporation of hometown associations and
condominium corporations of the HLURB are hereby transferred to the
Department.

SEC.36. Transfer of Rights and Assets. - The Department shall, by virtue
of this Act, be subrogated to all rights and assume all the liabilities of the HUDCC
and all the other agencies of the government whose functions and powers have
been transferred to it, and all their pertinent funds, records, property, assets,


equipment and such personnel, as may be necessary, including unexpected
portions of their appropriations, except the assets, pertinent funds, records,
Property, assets, equipment and personnel of the HLURB.

SEC.37. Formulation of Implementing Rules and Regulations. - the
Secretary shall prepare and issue the implementing rules and regulations (IRR) of
the Department within sixty (60) days upon the effectivity of this Act.

CHAPTER VIN
IMPLEMENTING AUTHORITY AND FUNDING

SEC.38. Implementing Authority. - The Secretary is hereby authorized to
undertake the implementation of the provisions of this Act and implement the
necessary organizational changes within the specified six (6)-month transition
period.

SEC.39. Funding. - The amount necessary for the initial implementation of
the provisions of this Act shall be charged against the current year’s appropriation
of the HUDCC and HLURB. Thereafter, such sums as may be necessary for the
continued implementation of this Act shall be included in the annual General
Appropriations Act.

CHAPTER IX
MISCELLANEOUS PROVISIONS

SEC.40. Mandatory Review of the Implementation of this Act. - The
Department shall conduct and submit a report to Congress a review of the
implementation of this Act at the end of the second year from the date of its
effectivity.

SEC.41. Repealing Clause. - All laws, executive orders, proclamations,
rules, regulations and other issuances or parts thereof which are inconsistent with
the provisions of this Act are hereby repealed, amended or modified accordingly.


SEC.42. Separability Clause. - \f, for any reason or reasons, any portion or
provision of this Act shall be held unconstitutional or invalid, the remaining
provisions not affected thereby shall continue to be in full force and effect.

SEC. 43. Effectivity. - This Act shall take effect fifteen (15) days after its
complete publication in at least two (2) national newspapers of general
circulation.

Approved,