SEVENTEENTH CONGRESS OF THE 
]
REPUBLIC OF THE PHILIPPINES 
]
F irst R egular Session 
]
SENATE
s.B . No. 
1 1 3 2
't6  
OCT -4  
P 3 ;22
TW
: _ ^
Intr-r duced by SEN. WIN GATCHAl XAiN
AN ACT
DEFINING THE VISION AND POLICIES OF GOVERNMENT IN THE HOUSING 
AND URBAN DEVELOPMENT SECTOR, CREATING I HE DEPARTMENT OF 
HOUSING AND URBAN DEVELOPMENT, DEFINING 1*1 S MANDATE, POWERS 
AND FUilCTIONS, AND FOR OTHER PIR PO SES
EXPLANATORY NOTE
The problem of housing continues to hound the Philippine Society. In a  study 
conducted by global hom eless statistics, “It is estimatec* th at around 44% of the 
u rban population in the Ptiilippines live in slum s (UN Hal itat, 2008) w ith Manila as 
containing the largest hom eless population of any city in .he world with 3.1 million.
It is sad th at the government continues to fail in p:i oviding Filipinos with one 
of life’s basic needs. No k ss th an  the 1987 Constitutioz protects the right of the 
Filipinos to a decent hous ng. Section 9, Article XIII provides th a t “The State shall, 
by law, and for the common good, undertake, in cooperation w ith the private sector, 
a continuing program  of urban land reform and housin,?, which will m ake available 
at affordable cost, decern housing and basic services to under-privileged and 
hom eless citizens in urba^i centers and resettlem ent av -as. It shall also promote 
adequate employment opportunities to such citizens. In U le im plem entation of such 
program  the State shall respect the rights of sm all property owners.”


P ursuant to this C onstitutional provision, we m andate the creation of a 
D epartm ent of Housing and U rban Development. This agency will be the foremost 
m echanism  of the government in ensuring the availability of affordable housiug. 
Further, it shall be th e » lead agency in form ulating all housing and urban 
development policies, plans, program s and projects for the Filipino People.
This is a Senate counterpart bill to one filed in the House of Representatives 
by Rep. Ruffy B. Biazon.


SEVENTEENTH CONGRESS OF THE 
]
REPUBLIC OF THE PHILIPPINES 
]
F irst R egular Session 
]
S.B. No
SENATE
1182
of fhEj^rnfiary
'16 
OCT-4  
P 3 2 2
R S'
: ,r.'; 
i?Y:
In tro d u ced  by SEN. WIN GATCHALIAN
AN ACT
DEFINING THE VISION AND POLICIES OF GOVERNMENT IN THE HOUSING 
AND URBAN DEVELOPMENT SECTOR, CREATING THE DEPARTMENT OF 
HOUSING AND URBAN DEVELOPMENT, DEFINING ITS MANDATE, POWERS 
AND FUNCTIONS, AND FOR OTHER PURPOSES
Be it enacted by the Senate and the House of Representatives of the Philippines 
in Congress assembled:
CHAPTER 1
SHORT TITLE, VISION, POLICY AND PRINCIPLES
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SECTION 1. S hort Title. -  This act shall be known as the “Department of 
Housing and Urban Development Act”.
Sec. 2. D eclaration o f Vision a n d  Policies. -  The state shall pursue the 
realization of a m odern, hum ane, economically viable and environmentally 
sustainable society where,(lie urbanization process is m anifest in towns and qities 
being centers of productive, economic activity, led by m arket forces; where urban
f
areas have affordable houring, sustainable physical and social infrastructure and 
services facilitated under a democratic and decentralized system of governance; 
where u rban areas provide the opportunities for an improved quality of life and the 
eradication of poverty; and where there is a high degree of com plem entarity 
between urban and rural communities.


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Sec. 3. Principles o f Sector Governance. -  The stipulated vision and policy 
shall be pursued and realized in accordance with principles th at will guide the 
definition of government functions in the sector; its relationship with the private 
sector; the vertical com partm entalization of government functions am ong levels of 
governance, national and local; and, the horizontal com partm entalization of 
national government functions. These principles th a t will, define and delineate the 
functions, responsibilities and accountabilities of various national government 
agencies are as follows:
(1) Steering Role of the National Government in the Sector. -  The national 
government shall perform a steering role in the urban development and 
housing sector. In this regard it shall:
a) strengthen its role in guiding, mobilizing and facilitating in housing 
and u rban development. It shall define the u rban development 
vision an<i provide a housing and u rban development framework 
th at will guide the investm ents and actm ties of the private sector.
It shall provide policies on spatial integration, urbanization, urban
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environm ental m anagem ent, u rban regeneration, urban land 
m anagem ent, housing development aind other related concerns to
V<U-
facilitate private enterprise and participation. It shall form ulate and 
enforce a m inim um  set of standards and regulations th at will 
ensure the establishm ent of a level plavihg field in the provision of 
urban infrastructure and services and' in locational choices of 
investors,, and prevent urban decay, congestion, disecononiies of 
scale and environm ental degradation of u rban areas; and
b) provide policies th at will mobilize ptiblic and private sector 
resources toward a self-sustaining housing finance system.
(2) Continuing Devolution of Functions to Local Governments. 
The national 
government, and local governments shall act as partners in housing and 
urban development. 
Functions and the corresponding authority and 
accountability shall be continuously devolved to  local government units 
and such devolution shall be guided by the follovhng:
a) The delineation of functions between the national government and 
local govf m m ents shall be such th at inefficiencies are removed, 
access to public services is improved, and plans, program s and 
services are responsive to local needs find opportunities. For this


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purpose, I'unctions th at are location specific in their benefits and 
costs shall, to the extent possible, be devolved to local governments.
b) The determ ination of the proper level of government to which a 
function will be devolved shall be determ ined by the extent of the 
geographical effects of the benefits and the cost of undertaking such 
function.
c) Local governments shall im plem ent national government policies in 
their respective localities. Location specmc functions th a t are to be
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devolved t.o local governments are those 'f hat relate to the provision 
of public goods and services. Local govenim ents shall to the extent 
possible, 
encourage the private 
sector to 
assum e prim ary 
responsibility in the production of public goods. 
•
d) 
Local governments shall have full autonom y in housing and urban  
developrrient planning and m anagem enf consistent w ith national 
policies, strategies and regulatory framework.
e) The national government shall be thif facilitator, independent 
m onitor and perform ance evaluator. It. shall form ulate national 
standard*! and rules to guide local governm ents in the form ulation 
of localized standards. The prom ulgation and enforcem ent of 
standards 
and 
regulations 
shall 
be 
undertaken 
by 
local 
governments.
(3) Maximum Participation of the Private Sector arid Communities in Housing 
and Urban Development. The government shall provide policies to 
maximize private sector participation in housing and u rban development 
and to mobilize public and private sector ' resources toweird a self- 
sustaining housing and urban development finance system. The national 
government, through local governments, shall ensure th at com m unities 
are involved in tlie form ulation of housing and urban development policies 
and plans th at will im pact upon them , their livelihood and their living 
conditions. 
Full 
com m unity participation 
In housing and urban 
development po’icies, program s and projects of governm ent shall be 
encouraged.
(4) Responsiveness \o the shelter needs of the urban poor communities. The 
government shajl directly address the concerriM and needs of the urban 
poor com m unities by form ulating the policies, providing and mobilizing 
resources, and ' designing as well as im plem enting program s and


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mean:
intervention th at will address urban hom elessness and unem ploym ent.
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Government shall facilitate the establishm ent of a finance system  th a t 
enables all sectors of society to have the opportunity to access funds and 
facilitate the provision of adequate shelter, security of tenure and 
appropriate infrastructure, where subsidies, if provided, are transparent 
in nature and targeted at those in need.
(5) Clear Horizontal Compartmentalization and Coordination of Functions 
Among National Government Agencies. The D epartm ent of Housing and
, .  
. - y .
U rban Development, created in this Act shalf be the prim ary entity for 
policy form ulation and coordination of all housing and u rb an  development 
functions. It shall define the delineation of housing and urban development 
functions and responsibilities of, and relationship among, national 
government agencies to promote efficiency and effectiveness, clarify 
accountability, and ensure synchronization.
(6) Policy and Coordinating Role of the Departmeht of Housing and Urban 
Development. 
The 
role 
of the 
D epartm ent 
is 
to 
support 
the 
accom plishm ent of the sector vision and, in particular, encourage more 
opportunities to improve the lives of the urban poor.
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CHAPTER 2
DEFINITION OF TERMS
f
Sec. 4. D efinition o f Terms. -  As used in this Act, the following term s shall
' 1,
(a) Devolution -  the transfer of responsibility, authority and accountability for 
the perform ance of a defined function from the national government to 
local governments;
(b) U rban Land M anagem ent -  refers to the range of government interventions, 
including policies, incentives, regulation and tiding, land use plaim ing and 
zoning, land development, public inform ation and conflict resolution th at 
will promote the optimization and m ost efficient use of u rban land, 
including appropriate land valuation to achieve efficiency in use, promote 
access, support economic productivity, ensure sustainable development 
and protect individual rights;


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(c) Land Use Plan; -  refers to the docum ent, 'formulated by the local 
government in consultation with its stakeholders, th at defines or provides 
guidelines on the adlocation, utilization, development and m anagem ent of 
all lands within a given territory or jurisdictiori according to the inherent 
qualities of the land itself and supportive of economic, demographic, socio­
cultural and environm ental objectives;
(d) Shelter -  refers to the system  and its com ponents which establish the 
residential quality of life, including housing;^*utilities, access to social 
services and other com m unity facilities, security, and other aspects related 
to an individual's residence;
(e) U rban Development -  pertains to the process of occupation and use of land 
or space for such activities as residential, industrial, comrriercial and the 
like, necessary to carry out the functions of u rban living. It entails the 
building or rebuilding of more or less perm anent structures over land th at 
is often w ithdraw n or converted from its original use, resulting in the 
creation of a built environment;
(f) U rban Development Planning -  also called city planning or town planning, 
is a process that, involves the planning of diverse elem ents th a t comprise 
an urbanized aiea, including its physical infrastructure, environm ent, 
housing, transportation, and m anagem ent of land use and u rban growth;
(g) U rban Renewal or Regeneration -  the process of planned renewal and 
physical as well as socio-economic revitalization of outworn, old, derelict 
areas of towns and cities through redevelopm ent and rehabilitation;
(h) Secondary Mortgage M arket -  refers to the system  which entails purchase, 
acquisition, discounting, or refinancing of rbtail loan and mortgage 
packages or other similar instrum ents. 
-Once purchased, 'th ese 
instrum ents in tu rn  are traded in the financial m arket through the 
issuance and or sale of bonds, prom issory notes, debentures, conveyances, 
and other financial instrum ents or participation therein, backed by the 
sam e pool of m ortgages and other assets;
(i) Zoning O rdinance -  refers to the set of rules:' regulations and specific 
procedures and requirem ents prom ulgated by .the local government th at 
will guide land use and land development and the development of built 
environm ent within the jurisdiction of the local government;
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(j) A ttachm ent -  refers to the lateral relationship between the departm ent and 
the attached agency or corporation for purposes of policy and program  
coordination and as further defined under the Administrative Code.
CHAPTER 3
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
V-_
Sec. 5. C reation o f the D epartm ent o f H ousing a n d  Urban Development.
-  There is hereby createj:! the D epartm ent of Housing and U rban Development, 
hereinafter referred to as the D epartm ent.
Sec. 6. Pow ers and Functions. -  The D epartm ent shall perform the following 
functions:
(a) Form ulate the n ational u rban development and shelter policy and strategy
th at is consistent with the National Development Plan;
♦
(b) Form ulate the urban development and shelter planning framework, 
establish and operate a national u rban development and shelter planning 
system , and develop the necessary planning guidelines, procedures, and 
urban development standards th a t will define aj\d delineate the roles of all
stakeholders, 
prom ulgation ai
and 
guide 
the 
planning, 
standards 
localization,
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n d  enforcem ent of rules, and service deUveiy program s of 
national govern;:iient and local governments, and facilitate private sector 
investm ent; 
;
(c) Form ulate housing finance policies, and recom m end and facilitate the 
development of m echanism s th at prom ote the establishm ent of a self- 
sustaining, private sector-led housing finance system;
(d) Form ulate and im plem ent a shelter program  for u rban poor com m unities
th at will promote their social and economic welfare, and mobilize resources 
and encourage s takeholder participation in the provision of urban services 
for the poor; 
r
(e) Provide assistance to, and capability building of, local governm ents in 
urban development, u rban regeneration and u rban m anagem ent in 
support of national policies and strategies in the sector, as well as 
strengthen the (role of independent com ponent cities and provincial 
governments as the prim ary entities for urban development planning and 
m anagem ent at the local level;
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(f) Develop and establish a sector perform ance m onitoring and assessm ent
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m echanism , and m onitor and independently report on the perform ance of
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national government agencies and local governments in housing and
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urban development sector to enable continuing im provem ents in sector
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policy and strategy formulation;
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(g) Delineate areas for priority development as u rban renewal areas and
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prepare program s for their regeneration;
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(h) Support devolution and decentralization where local governm ents in
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partnerships with com m unities, non-govem m ent organizations and
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private groups assum e the functions of urban renewal and regeneration;
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(i) Exercise adm inistrative investigatory powers over local governm ents to
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ensure their faithful compliance with housing and u rban development
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laws, standards and guidelines, as well as their judicious and fair
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application of local housing and u rban development and housing
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ordinances, and require the subm ission by local governm ents of pertinent
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docum ents and inform ation as may be necessary in the judicious and
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effective conduct of investigation;
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(j) Coordinate the policies and program s of attached agencies; and
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(k) Perform such other related functions as m ay be m andated by law.
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Sec. 7. M andate, -.'fhe D epartm ent shall be the prim ary national government
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entity responsible for the m anagem ent of housing and u rban development. It shall
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be the mean planning and policy-making, program  coordination, and perform ance
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m onitoring entity for all housing and urban development Concerns.
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CHAPTER 4 
DEPARTMENT PROPER
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Sec. 8. 
Composition, -  The D epartm ent Proper shall be composed of
the Office of the Secretary, h is/h e r immediate staff, the O fices of the U ndersecretary 
and A ssistant Secretaries , and the offices and services directly supportive of the 
Office of the Secretary.
Sec. 9.The Secretary. -  The Secretary shall: 
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(a) Advise the President on the prom ulgation of rules, regulations and other
issuances relative to m atters under the jurisdic ion of the D epartm ent;
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(b) Establish policies and standards for the efficient and effective operations 
of the D epartm ent in accordance with the program s of the government;
(c) Promulgate rules, regulations and other issuances necessary in carrying 
out the D epartm ent’s m andate, objectives, policies, plans, program s and 
projects;
(d) Exercise supervision and control over all functions and activities of the 
Departm ent;
(e) Delegate authority for the perform ance of any adm inistrative or 
substantive function to subordinate officials of ihe D epartm ent; and
(f) Perform such other functions as may be provided by law or assigned by 
the President.
The Secretary shall also serve as an ex-officio, non-voting m em ber of the 
National Economic and Development Authority (NEDA) Board, the governing boards
, 
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of the Social Security System (SSS), the Government Service Insurance System
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(GSIS) and the Public E states Authority (PEA). The Secretary shall be a m em ber of 
the NEDA’s Committee on Infrastructure (INFRACOM) and the Social Development 
Committee (SDC). 
The Secretary shall be a m em ber of the body authorized to 
formulate, prescribe, or am end guidelines under Republic Act No. 6957, otherwise 
known as the Build-Operate-Transfer Law. Further, the Secretary shall be the 
chairperson of the governing boards of the National Hodsing Authority (NHA), the 
Home Development M utual Fund (HDMF), the Home G uaranty Corporation (HGC) 
and the National Home Mortgage Finance Corporation (NPIMFC).
Sec. 10. The U ndersecretary a n d  A ssistan t S ecretaries. -  The Secretary 
shall be assisted by an U ndersecretary and such A ssisum t Secretaries as m ay be 
necessary and allowed by law or organizational poliby of government. 
The 
U ndersecretary and Assii.tant Secretaries shall be career officers and shall be 
appointed by the President upon the recom m endation of the Secretary. They shall 
have the powers and functions as provided for in Sectioi? 10, C hapter 2, and Book 
IV of the Administrative Code of 1987. The Secretary is hen sby authorized to delineate 
and assign the respective functional areas of responsibility of the undersecretary and 
assistant secretaries. 
ti-
Sec. 11. D epartm ental Services Office. -  The D epartm ental Services Office, 
under the Office of the Secretary, shall be headed by axi A ssistant Secretary, and 
shall have the following services: 
Financial M anagem ent Service, Administrative


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Service, Legal and Legislative Service, Research and Dc 
Relations 
and Information 
Service, 
and Informatio 
Technology Service. 
'
velopment Service, Public 
n 
and Com m unications
Sec. 12. F in an cial M anagem ent Service. -  The Financial M anagem ent 
Service shall;
a) Form ulate the m edium -term  and annual expenditure program  for the 
D epartm ent and. prepare, execute and adm inister the D epartm ent’s annual 
budget;
b) Develop and im plem ent approaches, methodologies and procedures for 
ensuring efficiency in the allocation and utilization of budgetary and other 
resources of the Departm ent;
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c) Provide accounting, financial m anagem ent, disbursem ent and cashiering 
services to the departm ent and ensure the subinission of the appropriate 
financial and physical perform ance reports and financial statem ents;
d) Monitor and m ake recom m endations on the financial and physical 
perform ance of the D epartm ent’s program s, projects and activities; and
e) Perform such other related functions as m ay be assigned by the Secretary.
Sec. 13. A dm inistrative Service. -  The Administrative Service shall provide
the D epartm ent with efficient and effective services relative to personnel, hum an 
resources development, records m anagem ent and custodial work, supplies and 
inventory m anagem ent, procurem ent, physical assets ' m anagem ent, and other 
related adm inistrative functions as m ay be assigned by tiie Secretary.
Sec. 14. Legal a n d  Legislative Service. -  The Legal and Legislative Service
shall:
a) Provide the Depifartment, its officials and personnel with legal counseling 
services;
b) Provide assistance to the Secretary in handling cases affecting the
D epartm ent and in the investigation of adm inistrative cases involving 
D epartm ent personnel; 
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c) Provide assistance to the Secretary and other D epartm ent personnel in the 
preparation of legislative proposals and legal issuances affecting the sector 
or the Departm ent;


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d) Review and m ake recom m endations to the Secretary on the legal and
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legislative implications of plans, program s and activities affecting the
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sector or the D epartm ent; and
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e) Perform such other related functions as m ay be assigned by the Secretary.
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Sec. 15. R esearch a n d  Development Service^ 
-  The Research and
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Development Service shall;
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a) Form ulate and im plem ent a research and development agenda and
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mobilize pubUc and private sector resources to generate new knowledge;
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develop an d /o r adopt new technologies; identity and design new products
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and services, to support continuing im provem ent in housing and urban
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development regulation, production and service-delivery;
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b) U ndertake 
continuing studies on the research and development
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requirem ents of the housing and urban development sector for the purpose
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of, b u t not liniited to, policy development, planning and standards
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formulation;
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c) Establish 
collaborative 
m echanism s 
with :’i international 
and 
local
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institutions, the academ e and research institutions, industry, local
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governments and national government agencies, and other entities and
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individuals for knowledge sharing, research ressjurces sharing, technology
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transfer, commercialization, and useful exploitation and industry use of
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research and development;
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d) Publish and dissem inate research and development inform ation to the
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public to promote innovation in the various aspects of housing and urban
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development; and 
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e) Perform such other related functions as m ay be assigned by the Secretary.
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Sec. 16. PubUc R elations a n d  Inform ation Service. -  The Pubhc Relations
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and Information Service shall:
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a) Form ulate and iiiiplement a public inform ation and relations program  th at
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will promote public and stakeholder knowledge of, and feedback on, the
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policies, regulations, incentives, opportunities end program s and projects
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in the housing euid u rban development sector; • ’ ! 
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b) Prepare, produce and publish m aterials to support such pubhc
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information and public relations program; 
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c) Establish collaborative netw orks for the dissem ination of inform ation and
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generation of feedback on sectoral concerns; an i
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d) Perform such other related functions as m ay be assigned by the Secretary.
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Sec. 17. Inform ation a n d  C om m unications Technology Service. -  The
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Information and Com m unications Technology Service shall:
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a) Form ulate and im plem ent an inform ation and com m unications technology
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plan for the sector th at will ensure the speedy generation, organization,
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and processing of data and production of analytic inform ation to support
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planning, poUcy formulation, perform ance m onitoring and assessm ent and
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the transaction processing system s of the D epartm ent.
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b) Define the design of the integrated informiition system s and their
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functional specifications, 
and undertake 
the m anagem ent of the
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development, operation and m aintenance of applications;
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c) Establish collaborative electronic data sharing and com m unications
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linkages with other departm ents, agencies, industry and local government
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units to ensure the generation of comprehensive, up-to-date and accurate
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data and promote their wider use in decision-m'aking;
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d) U ndertake continuing user training and assistjm ee to improve com puter
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literacy and promote the sophisticated use of inform ation technology in
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planning, analysis, transaction processing and decision-making;
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e) Be responsible for the m aintenance and provisiu?:)! of support services to all
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D epartm ent employees in the use of informatiov ; technology;
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f) 
Conduct 
continuing 
studies 
on 
best 
u ses 
of inform ation 
and
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com m unications technology in the housing and urban development sector;
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and
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g) Perform such other functions as may be assigned by the Secretary.
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Sec. 18. Advisory Committees. -  The Secretary shall have the power to
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establish ad-hoc advisory committees consisting of key representatives from national
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government 
agencies, 
local 
governments, 
the 
privide 
sector, 
u rban 
poor
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communities, academ e, and other marginalized groups, to provide a forum for
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stakeholder participation and dialogue on key housing and urban development
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issues and policies. 
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Sec. 19. S taffing P attern . -  The Secretary shall prepare and im plem ent a
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staffing pattern for the D epartm ent proper th at shall be based on an assessm ent of
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the personnel requirements^ of the entire D epartm ent. The rem uneration structure of
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the positions in the staffinf- pattern shall conform to the Salary Standardization Law.
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The D epartm ent of Budget and M anagem ent shall fund in fuU the staffing pattern of 
the D epartm ent.
The internal structure and the specific num ber of divisions th a t will comprise 
each of the above bureauSjund units under the D epartm ent shall be determ ined and 
established by the Secretaiy.
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CHAPTER 5
PLANS, POLICIES AND MONITORING OFFICE
Sec. 20. Plans, Policies a n d  M onitoring Office,,"— The Plans, Policies and 
Monitoring Office (PPMO) under the Office of the Secretary shall be headed by an 
A ssistant Secretaiy and shall be the central governm&nt policy, planning and 
monitoring think tank for housing and resettlem ent, and u rban planning, 
development and regeneration. The PPMO shall be responsible for the:
(a) Form ulation of national housing policy, urban and regional development 
policies, and resettlem ent policy;
(b) Updating of national urban development j f ind housing framework; 
preparation of national shelter plan and agency corporate plan;
(c) Provision of internal planning services; reviewing policies, plans and 
program s of key shelter agencies;
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(d) Conduct of research and development in housing technologies and into 
housing and urban development;
(e) Monitoring of the effectiveness of government policies and program s in 
housing delivery and urban development, including those of the attached
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agencies; 
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(f) Development 
of perform ance 
indicators 
fr-'r 
housing 
and 
urban
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development and the form ulation and development of perform ance 
indicators and program  targets for key slielter agencies and local 
governments;
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(g) Monitoring of the perform ance of key shelter agencies against targets as 
well as the accom plishm ent of the national she-ter plan and adherence to 
the urban development and housing frameworl:;
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(h) Provision of inteinal evaluation services to HUDCC;
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(i) Integration of housing and urban development data banks with those of 
other government agencies; and
(j) Monitoring of the perform ance of local government program s in housing 
and urban development.
Sec. 21. B ureaus U nder the PPMO. -  The A ssistant Secretary for Plans, 
Policies and Monitoring shah supervise the following:
(1) Plans, Policies and Programs Bureau. -  The Plans, Policies and Programs 
B ureau shall:
•S'
(a) Form ulate, review and update, in consultation with national
government 
agencies, 
local 
governm ents, 
private 
sector, 
com m unities and other stakeholders, national plans, objectives and 
policies for housing and urban development, specificahy the 
National U rban Development and Housing Fram ework and the 
National Shelter Program ; 
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(b) Establish 
and 
im plem ent 
a 
national 
housing 
and 
urban 
development planning system  and coordinate the preparation and 
timing of the sectoral plans of national governm ent agencies with 
the local development plans of local governm ent units, ensuring 
their consistency with the National U rban Development and 
Housing Framework, the National Shelter Program and the 
Medium ' erm  Philippine Development Plan;
(c) Design p.rograms for the provision of capacity building assistance to 
local governments in housing and urban, development planning, 
investm ent programming, form ulation of zoning ordinances, plan 
adm inistration and perform ance assess;ixent;
(d) Form ulate policies and design interventions th a t will directly 
address the shelter concerns of the urban poor com m unities, 
including the form ulation of guidelines oil eviction and relocation;
t./
(e) Standardize planning data and sector inform ation requirem ents 
under a uniform  data classification and storage and through 
geographic inform ation system s;
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(f) Form ulate a foreign-assisted projects framework consistent with the 
U rban Development and Housing Framework, National Shelter 
Program and Sector Public Investm ent Program;
(g) Form ulate an effective monitoring and perform ance evaluation 
system  and undertake the overall monitoring and perform ance 
assessm ent of foreign-assisted housing and urban development 
projects of the D epartm ent, its attached agencies and other national 
government agencies, local government units, and other entities;
(h) Establish project m anagem ent u nits to m anage and coordinate the
im plem entation of foreign assisted projects of the D epartm ent, 
where necessary; 
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(i) Provide 
technical 
assistance 
to 
project 
m anagem ent 
and 
im plem entation offices and u nits of foreign-assisted projects of the 
D epartm ent in the facilitation of project im plem entation in 
accordance with approved policies and schedules; and
(j) Perform such other functions as may be assigned by the Secretary.
(2) Monitoring and Evaluation Bureau. -  The Monitoring and Evaluation
B ureau shall: 
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(a) Monitor and evaluate the perform ance of the sector particularly on 
the consistency of program s, projects ;'ind activities of national 
government agencies, local government units, industry and other 
stakeholders with the National U rban t'evelopm ent and Housing 
Framework, National Shelter Strategy, sector public investm ent 
program s and policies of the departm ent;
(b) Develop and operate a sector perform ance monitoring and 
evaluation system , and monitor, evaluate and independently report 
on the perform ance of the sector and th a t of local governments, 
industry, national government and othej- key sector stakeholders;
(c) Recommend changes and coordinate ac:ion needed to ensure the 
accom plishm ent 
of the 
objectives 
of the 
National 
Urban 
Development and Housing Framework, National Shelter Strategy, 
sector public investm ent program s and the policies of the 
departm ent;
(d) Regularly m onitor the corporate and operational perform ances of all 
the organic bureaus, attached agencies m:d corporations, and m ake 
recom m endations thereon; and
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(e) Perform such other related functions ai; may be assigned by the 
Secretaryi
(3) Housing 
Finance 
Development Bureau. 
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The 
Housing 
Finance 
Development B ureau shall:
(a) Form ulate policies to encourage a suiitainable m arket-oriented 
housing finance system  to ensure adequate flow of private funds 
into the prim ary and secondary m ortgage m arkets;
(b) Develop Tjnd im plem ent incentive schem es to encourage greater 
participation by the private sector, com m unities and other 
stakeholders in the provision of housing <;iad housing finance;
(c) Design die m ost appropriate subsidy , m echanism  to increase 
transparency and efficiency in the use of public funds, including the 
creation of a socialized housing fund or other m echanism s to 
adm inistcf up-front grants or am ortization support, and design the 
implementing system s and procedures for the program  maximizing 
the principles of decentralization and devolution;
(d) Undertaiie continuing studies for (be im provem ent of the 
institutional framework and adm inistrative operations for housing 
finance; ,
(e) Recommend legislation to improve housing finance laws, policies
and m ediianism s and develop initiatives for private sector and 
com m unity participation; 
/j;
(f) 
Conduct continuing studies on im|;>roving housing finance,
resource generation and mobilization, and their im plem enting 
strategies and m echanism s; 
f
(g) Administer hom eless assistance or grants to LGUs, NGOs and 
private com m unities for tem porary or emergency housing in 
response to m an-m ade or n atural calamities; and
(h) Perform such other functions as m ay be assigned by the Secretary.
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CHAPTER 6
URBAN DEVELOPMENT AND HOUSING OPEEATIONS OFFICE
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Sec. 22. The Urban Development a n d  H ousing O perations Office. -  The
U rban Development and Housing O perations Office (UDHOO), under the Office of the
Secretary, shall be headed'by an A ssistant Secretary and shall be responsible for the:
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(a) Development of the capacity of local governm ents to plan, im plem ent and 
m onitor housing, land m anagem ent, u rban development and u rban  
regeneration programs;
(b) Development arid adm inistration of the national governm ent subsidy 
program  for social housing;
(c) Provision of advice and guidance on the development of housing finance 
m arket in the Philippines; and
(d) Provision of teclinical and adm inistrative support to m anagem ent and 
im plem entation of foreign assisted projects at the central level.
Sec. 23. B ureaus u n d er th e UDHOO. -  The A ssistant Secretary for U rban
Development and Housing Operations shall supervise the following:
(1) Housing and Land Use Regulation Bureau. -  TI e Housing and Land Use 
Regulation B ureau shall be responsible to:
(a) Form ulate, review and update national 
guidelines arid regulations relative to laiu
policies and standards, 
d use for im plem entation
and enforcem ent by local government units;
(b) Develop u rban development planning and u rban development, land 
use, zoning and urban m anagem ent standards and guidelines for 
the fprm ulation of local development p* m s, land use plans and 
zoning ordinances, and for local development adm inistration and 
urban m anagem ent by local govemmenl:. ., ensuring the integration 
of the spatial and socio-economic aspects of development, 
promoting consultation and consensus, and improving development 
quality;
(c) Form ulate national standards and regulation relative to the 
development of condom inium  and subd vision projects which will 
serve as ' guide for the enforcem ent o% such regulation by the 
provincial governments and independent cities;
(d) Formula,te zoning and other land use standards and guidelines 
which shall govern: the development and im plem entation of local 
land use plans and zoning ordinances of m unicipalities and 
com ponent cities; the zoniisg com ponents of civil works and
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infrastructure 
projects 
of the national, 
regional 
and local 
governments located w ithin the geographical jurisdiction of the 
province or independent com ponent city; subdivision or estate
development projects of the public and i|rivate sectors; and u rban
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renewal plans, program s and projects; Provided, That 
these 
standards and guidelines shall respect the classification of public 
lands for forest purposes as certified by the D epartm ent of 
Environm ent and N atural Resources;
(e) Monitor, evaluate, investigate and independently report on the 
perform ance of local governments, the private sector, and other
stakeholders in the aspects of housirig development, land use
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m anagem ent, and their regulation;
(f) Issue rules and regulations to enfoioe land use policies as 
prescribed by existing laws on land use and such other laws 
regulating the use of land, including tfie regulatory aspect of the 
U rban Land Reform Act and all decrees relating to the value of land 
and improvem ents and their rental, in tiieir respective geographical 
areas of jurisdiction;
(g) Develop and install a housing and land Lise development oversight 
monitoring system  and undertake reserve compliance monitoring 
function deemed vital by the Secretary;
(h) Form ulate and im plem ent real estate Consumer education and
protection program s; and 
’
(i) Perform such other related functions as may be assigned by the 
Secretary.;
(2) Urban Land Management and Regeneration Bureau. -  The U rban Land 
M anagem ent and Regeneration B ureau shall be responsible to:
(a) Form ulate u rban land m anagem ent, renewal and regeneration 
policies, ;itrategies, concepts, and models; mobilize com m unity 
support and create the governance m echanism s, incentives and 
disincentives and other m odes of intervention to mobilize public and 
private sector resources;
(b) Undertake continuing monitoring and assessm ent of urban land 
m anagem ent policies, program s, interventions and institutional 
m echanispis and assess the u rban land Tianagement, renewal and
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regeneraf4on needs and reform requirem ents to improve policy and 
strategy formulation;
(c) Coordinate the u rban land m anagem en :, renewal and regeneration 
activities of the national government to e.iisure efficient use of public 
resources; 
prevent 
duplication 
and 
overlapping, 
stream line 
procedures, encourage private sector and com m unity participation 
and improve services;
(d) Undertake studies on u rban land m anagem ent regeneration, and
■ V?
apply best practices and lessons in improving policy, government 
intervenvion and practice;
'--t
(e) Design program s for improving capacibes of local governm ents in 
urban land m anagem ent, renewal and regeneration; and
(f) Perform such other functions as m ay be ^assigned by the Secretary.
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CH A PTER?
O FF'CE FOR REGIONAL OPERAUONS
Sec. 24. The Office fo r R egional O perations, 
The Office for Regional 
O perations shall exercise supervision and control over the D epartm ent’s Regional 
Offices, described in Section 25 hereof. It shall be responsible for the provision of 
public information, monitoring of LGU perform ance, uevelopment of a regional- 
central reporting and work flow processes, provision of'governm ent assistance to 
LGUs, adm inistration of subsidy and other regional operations.
Sec. 25. R egional Offices. -  The D epartm ent4,is hereby authorized to 
establish, operate and m i intain a Department-wide rejponal office in each of the 
country’s adm inistrative regions. Each Regional Office shall be headed by a Regional 
Director and shall have the following functions:
(a) Implement the policies and program s of the D epartm ent in the concerned
region; 
,
(b) Implement the local government housing and u rban development capacity 
building program s of the D epartm ent in their respective regions;
(c) Ensure the con.iistency of the over-all regional development goals and 
program s with the National U rban Development and Housing Framework, 
and the Natior. il Shelter Program, and vice-versa; similarly between 
D epartm ent program s and regional plans of otlier government agencies;
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(d) Review all local development and land u s e ’ plans of provinces and 
independent cities for purposes of ensuring con’pliance with laws;
(e) Undertake the independent monitoring and review of sector perform ance 
and the perfornismce of national government, local governments, industry 
and other stakeholders in the regions, and recom m end appropriate action 
thereon;
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(f) Monitor, investigate and assess compliance to, approved subdivision and
condom inium  plans; and for the purpose, impose fines/penalties and, on 
its own or upon com plaint of any intei'ested party, after the conduct of 
appropriate investigation, issue notices of violations and Cease and Desist 
Orders for non-compliance thereof; 
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(g) Coordinate the housing and urban development planning process in the 
regions to ensure the delivery of various services such as titling, issuance 
of perm its for subdivision plans, the provision of social and livelihood 
services, and other services related to housing and u rban development;
(h) M aintain a regional database and information system  for the sector in the
region; 
;
(i) U ndertake a public inform ation program  to provide the industry, general 
public and other stakeholders with inform ation on national and local 
government policies, regulations and program s, as well as to establish a 
consultative m echanism  to serve as a forum for continuing piam iing and 
evaluation of settlem ent program s and projects;
(j) Implement, 
mcviitor and ' evaluate policies, rules and regulations 
governing resettlem ent, relocation, eviction or demolition of the hom eless 
and underprivileged and recom m end appropriate action thereon;
(k) Ensure th a t local government units institute preventive m easures against 
squatting and address otlier concom itant problem s such as rural to urban  
migration;
(l) Monitor and evaluate the im plem entation of governm ent program s and 
projects which would require housing provision an d /o r relocation and 
resettlem ent activities, and recom m end appropriate action thereon;
(m) Administer hom eless assistance or advances/giants to LGUs, NGOs and
private com m unities 
for 
tem porary and 
emergency housing, 
in 
response to m an -made and natural calamities; 
.
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(n) Implement inno\ ative, clearly defined, transparent and on-budget housing 
subsidy m echanism s for the hom eless and underprivileged in the regions 
to enhance accessibility to housing;
(o) Registration 
of 
incorporation 
of 
homeowners 
associations 
and
condom inium  corporations; and 
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(p) Perform such other functions as maj'- be assigned by the Secretary.
CHAPTERS 
ATTACHED AGENCIES
Sec. 26. A ttached Agencies a n d  Corporations. - ‘
corporations are hereby attached to the Department, 
coordination:
h e  following agencies and 
for policy and prpgram
(a) National Housing Authority (NHA);
(b) Housing G uarantee Corporation (HGC);
(c) National Home Mortgage Finance Corporation ( MHMFC);
(d) Home Development M utual Fund (HDMF); and |
(e) Housing and U rban Development Adjudication ^Commission (HUDAC).
Sec. 27. N ational H ousing A uthority (NHA). 
The National Housing
Authority shall rem ain a s'th e  sole national government arm  for shelter production 
and shall institute such .program s and approaches tljat will promote housing 
provision for low-income families. It shall encourage private sector participation in 
socialized housing production and assist local governm ents in building capabilities 
for the im plem entation of local housing program s and projects.
■•V.
Sec. 28. Home G uarantee C orporation (HGC): -  The Home G uaranty 
Corporation shall concentrate on its m andate of providing guarantees to: (a) 
encourage the flow of private funds for m ass housing development and hom ebuyers’ 
financing; and (b) support the development and sustainability of the secondary 
mortgage m arket for housing. The Corporation shall conduct studies and initiate 
activities for greater private sector participation in the sho) t-term  and for its eventual 
privatization over the m edium  term.
Sec. 29. N ational Home M ortgage Finance C orporation (NHMFC). -  The
National Home Mortgage Finance Corporation shall focus on its designated function 
as the secondary mortgage institution of the country. 
To achieve this, the 
Corporation shall im plem ent m easures necessary to enhance its organizational
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capability and financial viability, including but not Hinited to, im provem ent of 
collection efficiency, restructuring of m anagem ent inform ation system s, and 
upgrading of its technical capability. The Corporation shall conduct studies and 
initiate activities for greater private sector participation in the short-term  and for its 
eventual privatization over the m edium  term.
Sec. 30. Home Development M utual Fund (HJJMF). 
-  The Fund shall 
continue its function of providing a savings system  for .public and private sector 
employees with housing as its prim ary investm ent, as provided for in P.D. 1752, as 
am ended by E.O. 35 and Republic Act 7742.
Sec. 31. N ature of Attachment. -T h e Secretary shall in concurrent capacity, 
be the Ex- Officio Chairperson of the governing boards of die attached corporations, 
namely, the NHA, the HOC, the NHMFC and the HDMF.
CHAPTER 9 
’
HOUSING AND URBjIj J DEVELOPMENT ADJUDICATION COMMISSION
Sec. 32. 
R enam ing a n d  R econstitution o f thi. H ousing a n d  L and Use 
R egulatory Board. -  The Housing and Land Use R el^latory Board is hereby 
renam ed and re c o n stitu te  as the Housing and U rban Development Adjudication 
Commission (HUDAC), hereinafter referred to as the Commission.
Sec. 33. Pow er a n d  A uthority. -  The Commissioi^ shall have the following 
powers and authorities:
(a) To prom ulgate rules and regulations governing the hearing and disposition 
of cases filed before it and those pertaining tci its internal functions and 
such other regulations as m ay be necessary to carry out the purposes for 
which it is established: Provided, That it shall not be bound by technical 
rules of procedure b u t shall proceed to hear and; decide all cases, disputes
• 
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or controversies in a m ost expeditious m anner ;’ employing all reasonable 
m eans to ascertain the facts of every case in accordance with justice, equity 
and merit;
(b) To adm inister oaths, sum m on parties to a con rroversy, issue subpoenas 
requiring attendance and testim ony of witnessed or the production of such 
books, papers, (.ontracts, records, agreem ents and other docum ents of
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similar nature a$ m ay be m aterial to a ju s t determ ination of the m atter 
under investigatibn or hearing conducted in pursuance of this Act;
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(c) To issue writs, orders to execute demolitioriifl or seizure or closure of
property in accordance with its decision; 
(
(d) To is^sue prelim inary or perm anent injunction's, w hether prohibitory or 
m andatory, in d|l cases in which it has jurisdiction, and in which the 
pertinent provisions of the Rules of Civil Procedure shall apply;
(e) To hold any person in contem pt, directly or indirectly, and impose 
appropriate penalties thereof;
, i !
(f) To impose admiriistrative fines and /o r penalties for violation of this Act, 
the U rban Development and Housing Act and d'ther laws im plem ented by 
the Commission, including pertinent rules and regulations, orders, 
decisions an d /o r rulings: Provided, That the m axim um  fines or penalties 
to be imposed? shall not exceed Five H undred Thousand ’Pesos 
(P500,000.00): Provided further, That the Commission m ay adjust such 
rates not more th an  once every three (3) years;
(g) To determ ine and order the paym ent by the losing party of the cost of the 
litigation incurred by the winning party and prescribe the m anner in which
• f .
such paym ents shall be made;
(h) To deputize any law enforcem ent agency in the execution of its final orders, 
rulings or decisions; and
(i) To exercise such other powers as implied, necessary, or incidental to 
carrying out the express powers granted to the Commission or to achieve 
the objectives and purposes of this Act, and other laws im plem ented by the 
Commission.
The Chairperson, aided by the Executive Clerk of the Commission, shall have 
adm inistrative supervision over the Commission and its regional branches and 
all its personnel including the Housing and Land Use Arbiters.
Sec. 34. Com position a n d  Q ualification o f Members. -  The Commission 
shall be composed of a Chairperson and fourteen (14)" full-time M embers to be 
appointed by the President, majority of whom shall be m em bers of the Philippine Bar 
while the others shall have a background or experience in u rban development 
planning, development and im plem entation of shelter program s for u rban poor 
com m unities, m anagem ent, architecture, civil engineering, and other related fields. 
They m ust have been engaged in the practice of their respective professions or 
specialization or employed in an appropriate office for a period of at least five (5)
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years. In addition, no person who has been convicted ctf a crime involving m oral 
turpitude shall be appointed as m em bers of the Commission.
The Commission may sit en banc or in five (5) divisions, each composed of 
three (3) m em bers. Subject to the penultim ate sentence of this paragraph^ the 
Commission shall sit en banc only for purposes of ,I prom ulgating rules and 
regulations governing the hearing and disposition of cases before any of its divisions 
and regional offices and: form ulating policies affecting its adm inistration and 
operations. The Commission shall exercise its adjudicatory and all other ppwers, 
functions, and duties through its divisions. Of the five (5) divisions, the first, second 
and third divisions shall handle cases coming from the National Capital Region and 
parts of Luzon. The fourth arid fifth divisions, cases from the Visayas and M indanao, 
respectively: Provided, That the Commission sitting en banc may, on tem porary or 
emergency basis, allow cases within the jurisdiction of aiiy 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 additiona.V expense: Provided further, 
That the Commission shall designate one (1) division ip hear and resolve cases
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involving eviction and relocation of urban poor com m unities. Each division of the 
Commission shall have exclusive appellate jurisdiction over cases w ithin its 
territorial jurisdiction.
The concurrence of two (2) Commissioners of a dn ision shall be necessary for 
the pronouncem ent of judgm ent or resolution. Whenever..the required m em bership 
in a division is not complete and the concurrence of two (2) Com m issioners to arrive 
at a judgm ent or resolutio.r? cannot be obtained, the Chairperson shall designate such
t; 
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num ber of additional Com: nissioners from the other divis/ons as m ay be necessary.
The conclusions of a division on any case subm itted to it for decision shall be 
reached in consultation before the case is assigned to a m em ber for the w ritin g of 
the decision. It sh all'b e m andatoiy for the division to m eet for purposes of the 
consultation ordained therein. 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 case and served upon the parties.
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The Chairperson shall be the Presiding Commissioiler of the first division and 
the four (4) other senior m em bers shall be the Presiding Commissioners of the 
second, third, fourth and fifth divisions, respectively. In tlie case of the absence or
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incapacity of the Chairperson, the Presiding Commissioner of the Second Division 
shall be Acting Chairperson.
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The Chairperson, aided by the Executive Clerk of the Commission, shall have 
adm inistrative supervision over the Commission and its regional branches and all its 
personnel including the Executive Housing and Land Use Arbiters and Housing and 
Land Use Arbiters.
The Commission, when sitting en banc shall be assisted by the Executive 
Clerk and, w hen acting through its Divisions by the Division Clerk, respectively, who 
shall perform such sim ilar or equivalent functions and duties as are discharged, by 
the Clerk of Court and Deputy Clerk of Court of the Court of Appeals.
Sec. 35. Term a n d  Com pensation. -  The M embers of the Commission shall 
be appointed for a term  of six (6) years w ithout prejudice to reappointm ent after said 
term  shall have expired. The Chairperson and M embers of the Commission shall 
receive an annual salary at least equivalent to th a t of, and he entitled to the sam e 
allowances and benefits as, an U ndersecretary and A ssistant Secretary of the 
D epartm ent, respectively.
The incum bent full-time Commissioners of the present HLURB shall rem ain 
in office unless they opt to avail of the retirem ent and separation benefits provided
in Section 50 of this Act or are sooner removed for cause.
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Sec. 36. H ousing a n d  L and Use A rbiters, Q ualifications, Pow ers a n d  
Functions. -  The qualifications, powers and functions of the Housing and Land Use 
Arbiters shall be as indicated hereunder:
-..fr
(a) The Secretary, upon recom m endation of the Chairperson qf the 
Commission, shall appoint Housing and Land Use Arbiters as the needs of 
the service m ay require for each administrative; region;
(b) No person shall be appointed Housing and Land Use Arbiter unless h e / she 
is a m em ber of the Philippine Bar with at least three (3) years experience 
or exposure in tlie field of real estate and land use development cases;
(c) The Housing and Land Use Arbiters shall receive an annual salary a t least 
equivalent to th at of, and be entitled to the sam e allowances and benefits, 
as an A ssistant Regional Director of the D epartm ent; and
(d) The Housing and Land Use Arbiters shall hc ve original and exclusive 
jurisdiction to hear and decide cases enum erated in Section 35 of this Act.
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Sec. 37. Jurisdiction. -  The Housing and Land .Use Arbiters shall exercise
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original and exclusive jurisdiction to hear and decide cases involving the following:
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(1) On Real Estate -
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(a) U nsound and fraudulent real estate business practices;
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(b) Claims for refund against project owTiers, developers, dealers,
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brokers and salespersons;
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(c) Specific perform ance of contractual and statutory obligations filed
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by buyer?; of subdivision lots or condom inium  u nits against the
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owner, developer, dealer, broker or salespersons;
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(d) Squatting on subdivision lots;
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(e) Eviction and relocation of squatter communities;
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(f] D isputes involving buyer-financing agreem ents with any financing
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institutioti for condom inium /subdivision projects;
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(g) Disputes; involving easem ents or rigl.t- of way arising from the
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development of subdivision and housing' projects;
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(h) D isputes between: (1) land owners and, developers, and (2) banks
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and developers, whenever the interest of buyers of subdivision lots,
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or house bhd lots, or condom inium  unit.? are involved;
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(i) Releases ,qf mortgage titles of subdivision lots and condom inium
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units;
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(j) D isputes involving easem ent of waterways, drainage, connections
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and light and view arising from the development of subdivision and
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housing projects;
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(k) Disputes] -involving homeowners associations and condom inium
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corporations, w hether intra corporate 
or inter corporate;
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(1) Claims 
pf 
broker/salesm en 
for 
unpaid 
com m issions 
for
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condom iiiium /sub-division projects; 
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(m) O ther related cases arising from contrac hial or statutory obligations
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of owners, dealers, brokers or salesm en tiiwards lot or u n it buyers;
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and 
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(n) Regulation of the relationship between residential lessors and
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lessees th at are governed by the Rent Control law.
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(2) On Housing and band Use Planning and Regulaaon - Decisions and actions
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of: (a) local housing boards or provincial governm ents, highly urbanized
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independent com ponent cities and the cities and m unicipalities of Metro
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Manila; (b) regional and local physical plantiing and zoning bodies,
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including zoning boards of adjustm ent and appeals on com plaints alleging
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violations of local'zoning ordinances not involviiig land conversion issues;
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and (c) provincial and com ponent independent city governments with
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respect to applications relative to applications w ith opposition, petitions or
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com plaints for revocation of clearances, perm its and licenses issued and
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issuance of Cease and D esist Orders and adm inistrative fines
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(i) On Shelter Rights -  Violations of adm inistrative rules and regulations
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implementing Sections 18 and 28 of Republic Act 7279, otherwise known
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as the U rban Development and Housing Act. 
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The Commission shall have exclusive appellate jiirisdiction over all cases
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decided by the Housing and Land Use Arbiters.
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Sec. 38. 
C rim inal Prosecution. -  Criminal prosecution for violation of
.  
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housing laws and regulations shall be instituted before regular courts with
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appropriate jurisdiction, 
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Sec. 39. Sheriff. -  The Commission shall appoint' a sheriff or such num ber
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of sheriffs in its central and regional branches. No persori shall be appointed to the
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position of sheriff unless he is a second grade civil service eligible and h as finished
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at least two (2) years of college. The sheriff shall be responsible for the service or
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execution of all writs, sum m ons and orders and other processes of the Commission.
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Sec. 40. A ppearances. -  A lawyer appearing for ia party is presumed* to be
22 
properly authorized for th at purpose. A non-lawyer may appear before the
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Commission or the Housing and Land Use Arbiter only if: a) h e /sh e  represents
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him /herself as a party to the case; or b) h e /sh e  represents h is/h e r organization or
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m em bers thereof: Provided] That h e /sh e  shall be m ade to present w ritten proof th at
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h e /sh e  is properly authorized. 
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Sec. 41 . A ppeals. ~ pecisions, aw ards or orders of the Housing and Land Use
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Arbiters shall be final and executoiy unless appealed to the Commission w ithin ten
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(10) calendar days from receipt thereof. The appeal may t'e entertained only on any
30 
of the following grounds: ■
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(a) If there is prima facie evidence of abuse of discretion on the p art of the
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Housing and Land Use Arbiter in rendering the questioned decision, award
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or order; 
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(b) If the decision, aw ard or order was secured tlirough fraud or coercion, 
including graft and corruption;
(c) If m ade purely on questions of law; and
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(d) If serious errors in the findings of facts are raised th at would cause grave
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or irreparable damage or injury to the appellan j-1;
Decisions of the Commission can be appealed only to the C ourt of Appeals 
by way of a Petition for Review w ithin fifteen (15) days from notice of judgm ent, aw ard 
or order p u rsu an t to Rule 43 of the 1997 Rules of Civil Procedure.
Sec. 42. Prohibition A gainst R estraining O rder o f Injunction. -  No lower 
court of the Philippines shall have jurisdiction to issue any restraining order or writ 
of prelim inary injunction or perm anent injunction against the Commission or its 
Housing and Land Use Arbiters in any case, dispute oii1 controversy arising from, 
necessary to, or in connection with the application, im plem entation, enforcem ent or 
interpretation of this Act and other pertinent laws on housing and ju s t and hum ane 
eviction or demolition procedures.
Sec. 43. Pending Cases. -  All cases pending in court arising from or in 
connection with the im plem entation of pertinent laws bn housing and ju st and 
hum ane eviction/dem olition procedures shall continue to be heard, tried and 
decided to their finality.
CHAPTER 10
FUNCTIONS OF LOCAL GOVERNMENTS IN
HOUSING AND URBAN DEVELOPMENT
DELATION TO
Sec. 44. C ontinuing Devolution o f F unctions to io c a l Governments. -  The
national government, through tiie D epartm ent and in consultation with the
A i-.
D epartm ent of Interior and Local Government and the! local governm ents, shall 
formulate and implernent a continuing devolution program  for housing and urban 
development sector functions, responsibilities, authority and accountability, in 
accordance with the principles of sector governance stipulated in this Act.
Sec. 45. 
Devolution o f Rule Enforcem ent Pur ctions to Provinces a n d  
Independent Com ponent Cities. 
-  The following re julatory functions of the 
Housing and Land Use Regulatory Board as provided for in Executive Order No. 648,
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dated 07 February 1981 as am ended by Executive Order No. 90, dated 17 December
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1986, are hereby devolved to provincial governments, independent com ponent city
governments and the cities and m unicipalities of the M etropolitan M anila Area:
jl:
Provided, That all rule prom ulgation and enforcem ent funcitions and activities of local
government units, are in accordance with the prescribed 
policies as well as guidelines issued by the Departm ent:
Iregulatoiy framework and
(a) Review, evaluate and approve or disapprpve comprehensive local 
development phm s, local land use plans and zoning ordinances of 
com ponent cities and m unicipalities; the zoningjcom ponents of civil works 
and infrastructure projects of national, region^ and local governments; 
subdivision, condom inium  or estate development projects including 
industrial estate's, of the public and private se ctors; and urban renewal 
and regeneration plans, program s and projects; Provided th at the review 
and approval of such comprehensive local development plans, local land
use plans and zoning ordinances shall respect the classification of {lublic
:f!'
lands for forest purposes as certified by the D epartm ent of Environm ent 
and N atural Resources; and Provided th at the classification of specific 
alienable and disposable lands by the B ureau of Lands shall be in 
accordance with the relevant zoning ordinance of the local government 
where such lands are located; and the provisions of RA 6657 w ith regard 
to the lands distributed, and issued notice of coverage under the 
Comprehensive Agrarian Reform Program (CARP) as certified by the 
D epartm ent of Agrarian Reform; Provided, Further, th at nothing in this 
Section shall be construed as repealing, am ending or modifying in any 
m anner, the provisions of RA 6657;
(b) Registration of subdivision lots and condom inium  projects; issuance of 
license to sell silbdivision lots and condom inium  u n its in the registered 
units; approval of perform ance bond and the suspension of license to sell; 
approval or mortgage on any subdivision lot oi* condom inium  u n it m ade 
by owner or developer; granting of perm its for the alteration of plans and 
the extension of period for completion of subdivision or condom inium  
projects, subject to the standards and requirem ents of the D epartm ent;
(c) Impose fines an;d penalties as m ay be allowed under existing laws or 
D epartm ent policies, and guidelines;
(d) Conduct public hearings and consultations on the prom ulgation of 
regulation;
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(e) Form ulate and adopt rules and procedures for liule enforcement;
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(f) Provide information to the D epartm ent n ecessar/ in the monitoring of local 
urban development and housing in accordance ydth the report content and 
form atting guidelines of the Departm ent; and ;
(g) Perform such other related regulatory functions as m ay be provided for by 
law.
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CHAPTER 11 
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TRANSITORY PROVISIONS
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Sec. 46. 
T ransfer o f Functions. — The following functions are hereby 
transferred as stipulated hereunder: 
; *
(a) The rule, standards and guidelines formulatior, functions of the Housing
j -
and Land Use Regulatory Board is hereby transferred to the D epartm ent, 
while its rule prom ulgation and enforcemexit functions are hereby 
transferred to the provincial governm ents, independent com ponent cities 
and to the cities and m unicipalities comprising the M etropolitan M anila 
Area; and
(b) The registration of incorporation of home 
condom inium  corporations are hereby transfer! 
the D epartm ent.
Sec. 
47. 
Form ulation o f R egulatory Fram ew ork a n d  Devolution 
Im plem entation Program . -  The D epartm ent shall form ulate a regulatory 
framework and design the necessary policies, standards, guidelines and procedures 
to guide the rule prom ulgation and enforcem ent functionobf provincial governments, 
independent com ponent d ties and the cities and m unicipalities of the M etropolitan 
M anila Area. 
The Depai'tment shall form ulate and imfijement a devolution plan 
which shall include a multij-year capacity building program , and technical assistance 
services for the institutional capacity development ot provincial governments, 
independent com ponent cities and the cities and m unicipalities of the M etropolitan 
Manila Area and the gradual transfer of regulatory functions, and the turnover of the 
pertinent records and transactions to the pertinent local g overnm ents which should 
be completed within Five (5) years from the effectivity of trds Act.
j •
Sec. 48. Abolition a n d  Conversion o f Agencies. - The following disppsitive
f£'
actions shall be im plem ented within six (6) m onths from f he effectivity of this Act:
;wners associations and 
icd to the regional offices of
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IS hereby converted to and 
velopment Adjudication 
onnel, pertinent records,
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(a) The Housing aiid U rban Development Coordinj." ing Council. Its functions,
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assets, equipm ent, funds, choses in action, records and pertinent
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transactions, shall be transferred to the D epartm ent. The employees of the
4 
abolished Council may be transferred and absorbed by the D epartm ent
5 
subject to its staffing pattern and the selection orocess as prescribed under
6 
Republic Act Nc. 6656 on the Rules on Govemifiqnt Reorganization
7 
(b) The Housing and Land Use Regulatory Board
8 
renam ed 
as | the 
Housing 
and 
U rban
9 
Commission. Its; assets, equipm ent, funds, pe.i
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choses in actipn, and pertinent transactions of the Board are hereby
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transferred to j the Commission. The Commission shall form ulate and
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complete its internal organic structure and it^
13 
operating system s and procedures arid new budget within six (6) m onths
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from the effectivky of this Act.
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Sec. 49. 
T ran sfer o f R ights, A ssets a n d  L iat iUties. -  The D epartm ent
16 
shall, by virtue of this Actj be subrogated to all rights arr i assum e eill the liabilities
17 
of the Housing and U rban Development Coordinating Council and £ill other agencies
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of the government whose functions and powers have been transferred to the
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D epartm ent, and all their pertinent funds, records, property, assets, equipm ent and
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such personnel, as m ay -be necessary, including uneJipended portions of their
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appropriations, except the assets, pertinent funds, records, property, assets,
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equipm ent and personnel of the Housing and Land Use Regulatory Board.
1 V. 
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Sec. 50. 
T ransition Period. -  All transfer of. functions, assets, funds,
24 
personnel, equipm ent, property, transactions and percoimel in affected national 
government agencies and the form ulation and im plem entation of the internal organic 
structures, staffing patterns, operating system s and -rev ised  budgets of the 
D epartm ent and the Commission, shall be completed w 'thin six (6) m onths during 
which existing personnel shall continue to assum e their posts in holdover capacity.
Sec. 51. Im pact M itigation S trategy. -  The Secretary shall form ulate and 
im plem ent respective im pact mitigation strategies of the D ^ a rtm e n t and its attached 
agencies/corporations that will minimize adverse effects oli existing personnel of the 
creation or modification of organization structures and staffing of the D epartm ent 
and its attached agencies, in accordance with pertinent pi ovisions of the Civil Service 
Code, the Administrative Code, and pertinent budgetary rules and regulations. 
35 
Employees separated from the service as a result of the abolition or reorganization
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under the provisions of this Act shall, within one (1) m onth from their separation, 
receive a separation pay equivalent to one hundred fifty percent (150%) of their 
monthly basic salary for every year of service in the government: Provided, That those 
who are qualified to retire under existing retirem ent law^ shall be allowed to retire 
and be entitled to all benefits provided under said retirem ent laws and shall r’eceive 
said benefits within ninety (90) days from their separation from service.
Sec. 52. Form ulation o f Im plem enting R ules a n d  R egulations a n d  O ther 
Im plem entation M echanism s. -  The following im plem enting rules and regulations 
(IRR) shall be prepared and issued as indicated hereunder:
(a) The Implementing Rules and Regulations for the operationalization of the 
Commission and the conversion of the HLURB irlto the Commission, within 
sixty (60) days upon approval of this Act;
(b) The Implementing Rules and Regulation for the creation of the
D epartm ent, the abolition of the HUDCC and the transfer and refocusing,
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as the case ma}^ be, of the attached agencies, w ithin sixty (60) days upon 
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approval of this Act;
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(c) The prom ulgation of the rules and regulation governing the hearing and 
disposition of cases and other adjudication functions of the Commission, 
within six (6) m onths after the constitution of tlife Commission; and
(d) The U rban Development Planning System, and the corresponding 
implementing guidelines, to be completed and operational w ithin six (6) 
m onths upon approval of this Act and the updated Housing and U rban 
Developmerit Fi amework and Plan completed vvithin one (1) year upon 
approval of this Act.
CHAPTER 12
j.-'/
IMPLEMENTING AUTHORITY AND FUNDING
Sec. 53. Im plem enting A uthority. -  The Secretary/ of the D epartm ent and the 
Chairperson of the Commission are hereby authisrized to undertake the 
im plem entation of the provisions of this Act and iiiiplement the necessary 
organizational changes within the specified six (6)-month transition period. 
’
Sec. 54. A uthority o f A ttached Agencies to R eorganize. -  The boards of 
attached corporations and agencies and the Chairperson and Commissioners of the 
Commission are hereby authorized to m ake the necessary changes and
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improvements in their respective internal formal stm cinres, operating system s,
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staffing and budget configuration in order to im plem ef t the newly m andated or 
refocused m andates and functions stipulated in this Act. 
■
Sec. 55. Protection o f Security o f Tenure by A ffected Personnel. -  The
existing authority granted p u rsu an t to the preceding two Sections shall be governed 
by the provisions of RA 6657 and relevant civil service m ips and regulations in order 
to protect the security of tenure of personnel who shall be affected by the
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reorganization. 
W-
Sec. 56. Funding. ' -  The initial funding for the im plem entation of this Act 
shall come from the unreleased balances of the budgets of the HUDCC and the 
HLURB. All such other am ounts necessary further needed for the im plem entation of 
this Act shall be released )i>y the D epartm ent of Budget and M anagement w ithin 30 
days upon subm ission by the D epartm ent and the Commission of their respective 
budget estim ates.
CHAPTER 13
IVnSCELLANEOUS PROVISION
*' 
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Sec. 57. M andatory Review o f the Im plem eniation o f th is Act. -  The
D epartm ent shall conduct and subm it a report to Congress a review of the
i ' ■ 
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im plem entation of this Act at the national government level at the end of the second 
year of its effectivity and g. review of the devolution of func tions to local governments 
at the end of the fifth year of its effectivity.
Sec. 58. R epealing Clause. -  All laws, executive orders, proclam ations, rules, 
regulations, and other issuances or parts thereof w hich are inconsistent w ith the 
provisions of this Act are hereby repealed, am ended or mijdified accordingly.
Sec. 59. S eparability Clause. -  If for any reason, any portion or provision of 
this Act is declared invalid or unconstitutional, the rem aining provisions not affected 
thereby shall continue to be in full force and effect.
Sec. 60. Effectivity. -  This Act shall take effect fifteen (15) days after its 
publication in at least two ,(2) new spapers of general circu 'ation.
Approved,
32