Republic of the Philippines
HOUSE OF REPRESENTATIVES
Constitution Hills, Quezon City

SIXTEENTH CONGRESS
FIRST REGULAR SESSION

263

House Bill No.

Introduced by Honorable ERIC L. OLIVAREZ

EXPLANATORY NOTE

The creation of the Local Housing Board (LHB) provides the administrative
machinery that will complement efforts of shelter agencies to effect the full
implementation of R.A. 7279 or the UDHA and provide solution to the
problem of housing among many of our countrymen. Given the different
circumstances under which the shelter problem is faced by local government
units (LGUs), a body of the local level that knows a locality’s peculiarities
would be in the best position to determine its shelter priorities.

With its creation the provision of adequate quality but affordable social
housing will be accelerated nationwide. This proposed measure gives more
autonomy - more power, authority, and responsibilities - to the Local
Government Units (LGUs) especially concerning the provision of housing in
their respective localities.

Further, the devolved powers, e.g. the approval of subdivision plans for
residential, industrial, and other development purposes, will not only
professionalize and stabilize the process of approval but will also ensure
greater and more effective multi-sectoral participation, in the end hasten the
development.

Under this measure, the LHB is mandated to be created in every city and 1%
to 3 class municipalities for the purpose of formulating, implementing and
monitoring policies on the provision of housing and on the observance of a
just and humane procedure in cases of eviction and or demolition a the local
level. However, its creation is optional at the level of 4 and 5t class
municipalities.

The LHB will be tasked to formulate, develop, implement and monitor
policies on the provisions for housing and resettlement areas and on the
observance of the rights of the underprivileged and homeless to a just and
humane eviction and demolition. This measure also proposes the creation


of the position of Local Housing and Urban Development Officer, an
appointive local position, which will implement the policies, plans and
programs formulated by the LHB.

Further, the measure devolves the function of clearinghouse for eviction
and/or demolition from the Presidential Commission for the Urban Poor
(PCUP) to the LHB to oversee the implementation of a just and humane
eviction and/or demolition pursuant to Section 28 of the R.A. 7279 of the
UDHA.

Finally, the LGUs are mandated to appropriate at least one percent (1%) of
the Internal Revenue Allotment for the LHB.

Thus, approval of this bill is earnestly sought.

otuey

ERIC L. OLIVAREZ


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

SIXTEENTH CONGRESS
FIRST REGULAR SESSION

House Bill No. 268

Introduced by Honorable ERIC L. OLIVAREZ

AN ACT
CREATING A LOCAL HOUSING BOARD IN EVERY CITY AND
MUNICIPALITY, PROVIDING FOR ITS POWERS AND DEFINING
ITS DUTIES AND FUNCTIONS, AND FOR OTHER PURPOSES

Be it enacted by the Senate and the House of Representatives of
the Philippines in Congress assembled:

SECTION 1. Short Title - This Act shall be known as the
“Local Housing Board Act”.

SECTION 2. Declaration of Policy - (a) It is the policy of the
State to promote a just and dynamic social order that will ensure
the prosperity and independence of the nation and free the people
from poverty through policies that provide adequate social
services, promote full employment a rising standard of living and
an improved quality of life for all.

(b) It is the policy of the State to adopt a continuing
socialized housing program that will make available at affordable
cost decent housing and basic services to underprivileged and
homeless urban or rural poor dwellers.

(c) It is the policy of the State to protect urban or rural poor
dwellers from evictions or demolitions undertaken in violation of
the law or, in an unjust or inhumane manner.


(d) It is hereby declared that the territorial and political
subdivisions of the State shall enjoy genuine and meaningful
local autonomy to enable them to attain their fullest development
as self-sufficient communities and make them more effective
partners in the attainment of national goals. Toward this end,
the State shall provide for a more responsive and accountable
local government structure instituted through a system of
decentralization whereby local government units (LGUs) shall be
given more powers, authority, responsibilities and resources. The
process of decentralization shall proceed from the National
Government to the LGUs.

(e) It is the policy of the State to promote and institutionalize
the participation of the private sector, nongovernment
organization (NGOs) and people’s organizations (Pos) in the urban
and rural development process.

( It is the policy of the State to require all national agencies
and offices to conduct periodic consultations with appropriate
LGUs, nongovernmental organizations and Pos and other
concerned sectors and stakeholders of the community before any
project or program is implemented in their respective
jurisdictions.

SECTION 3. Definition of Terms — For purposes of this Act,
the following terms or words and phrases shall mean or be
understood as follows:

(a)Balanced Housing Requirement refers to the mandate
pursuant to Section 18 of the Urban Development and
Housing Act (UDHA), whereby developers of proposed
subdivision projects shall be required to develop an area
for socialized housing equivalent to at least twenty
percent (20%) of the total subdivision area or total
subdivision project cost, at the option of the developer,
within the same city or municipality, whenever feasible,
and in accordance with the standard set by the Housing
and Land Use Regulatory Board (HLURB) and other
existing laws;

(b)Comprehensive Land Use Plan refer to the primary and
dominant bases for land use, applying a rational
approach for allocating available land resources as


equitably as possible among competing user-groups and
for different functions, consistent with the development
and zoning plan of the area and the provision of the
UDHA;

(c) Economic Housing refers to a type of housing project
provided to low-income families with lower interest rates
and longer amortization periods;

(d)Local Government Pabahay Program refers to the program
aimed at synchronizing and coordinating efforts of all
government housing agencies involved in assisting LGUs
in their respective socialized housing projects, in the
context of Executive Order No. 143, series of 1993;

(e)Local Shelter Plan refers to a general framework that
effectively provides a step-by-step procedure by which
cities and municipalities could formulate solutions to
their housing programs. It shall include measures to
enable cities and municipalities to plan and implement
their specific mandates based on the UDHA, and to
facilitate a linkage with comprehensive land use plans as
defined under this Act;

() Local Shelter Plan Guidelines refers to a model for the
preparation of local shelter plans, as embodied in the
National Urban Development and Housing Framework
(NUDHF), or that which was develop under the
PHI/89/FO2 Project, implemented by the Housing and
Urban Development Coordinating Council (HUDCC) and
executed by the United Nations Centre for Human
Settlements (UNCHS);

(g) National Urban Development and Housing Framework
(NUDHF) refers to the authoritative document issued by
the HLURB aimed at achieving the objectives of the
UDHA;

(h)NGO or Nongovernmental Organization is a nonprofit,
voluntary organization that is committed to the task of
socio-economic development and established primarily for
service which may involve assisting citizens of peoples
organization (Po’s) in various way by educating, training
or giving financial assistance to them;

(i) PO or People’s Organization is an independent community
and/or class-based association established or protect and
advance the interest of specific causes or sectors, e.g.,
urban poor, labor, farmers, fishermen, women;


(j) Rural Areas refer to those areas that are not urban areas
as defined under this act;

(k) Socialized Housing refers to housing programs and
projects covering houses, lots or house and lots,
undertaken by national or local governments or the
private sector for underprivileged and homeless citizens,
which shall include sites and services development,
financing, liberalized terms on interest payments, and
such other benefits in accordance with existing laws,
rules regulations;

() UDHA refers to the Urban Development and Housing Act
of 1992 or Republic Act No. 7279;

(m) Underprivileged and homeless Rural or Urban Poor
Dwellers refers to individuals or families residing in rural
or urban areas whose income or combined household
income falls within the poverty threshold as defined by
the National Economic Development Authority (NEDA)
and who do not own housing facilities, and shall include
those who live in makeshift dwelling units and do not
enjoy security of land tenure; and

(n)Urban Areas refer to all cities regardless of their
population density and to municipalities with a
population density of at least five hundred (500) persons
per square kilometer.

SECTION 4. Coverage. - This Act shall cover all cities and

first to third class municipalities in both urban and rural areas:
Provided, That fourth and fifth class municipalities may create
their own Local Housing Board if they so desire.

SECTION 5. Mandate. - Every city and municipality covered

under this Act, through its Local Housing Board, shall formulate,
develop, implement and monitor policies on the provision for
housing and resettlement areas and on the observance of the
right of the underprivileged and homeless to a just and humane
eviction and demolition.

SECTION 6. Composition. - The Local Housing Board in a

city or municipality shall be composed of the following:

(a) The City/Municipal Mayor, as chairman;
(b)The City /Municipal Vice Mayor, as vice chairman;


(c) The Chairperson of the Sangguniang Panlungsod/Bayan
Committee on Housing and Urban Development or its
equivalent, as member;

(d)The City/Municipal Planning and Development
Coordinator, as member;

(e)A representative of the Pos in the city or municipality, as
member;

() A representative of the NGOs operating in the city or
municipality, as member;

(g)A representative of the private sector engaged in
subdivision and housing development in the city or
municipality, as member.

A PO, NGO or private sector already represented in any local
special body may be Concurrently represented in any local
housing board.

SECTION 7. Powers and Functions. - A city or municipal
local housing board shall have the following powers and
functions:

(a)Prepare, based on local shelter plan guidelines and
with the assistance of the HUDCC and other
concerned government agencies, local shelter plans
which shall form part of the city/municipal
development plans: Provided, that public hearings
shall be conducted for the purpose;

(b)Designate at least one representative to their
respective local development councils;

(c)Assist the city/municipal development councils in
the formulation of their respective comprehensive
land use plans;

(d)Approve preliminary and final subdivision schemes
and development plans of subdivisions, residential,
commercial, industrial and other purposes, in
accordance with the provisions of Presidential
Decree No. 957, as amended, otherwise known as
the Subdivision and Condominium Buyers’
Protective Decree, and its implementing standards,
rules and regulations concerning subdivisions and
condominiums;


(c) Approve preliminary and final subdivision schemes
and development plans of all economic and
socialized housing projects as well as individual or
group building occupancy permits covered by Batas
Pambansa Blg. 220 and its implementing standards,
rules and regulations;

() Evaluate and resolve any opposition to the issuance
of development permits for any of the projects stated
in the two preceding subsections, in accordance
with the said laws and the Rules of Procedure
promulgated by the HLURB incident thereto;

(g) Designate the sites for socialized housing, subject to
the requirements prescribed by Section 8 of
Republic Act No. 7279 and guidelines issued for the
purpose:

(h)Advise the Sanggunian concern, on matters of local

taxation which may affect the local government

housing program, which includes, but shall not be
limited to, the formulation of a socialized housing
tax, idle lands tax, and an additional levy on the real
property tax to constitute a Special Socialized

Housing Fund (SSHD);

Recommend, for approval to their respective local

chief executives (LCEs) formulated schemes for the

acquisition and disposition of lands within their
localities for socialized housing purposes, subject to

Section 9 to 14 of Republic Act No. 7279 and its

implementing guidelines; Provided, That such

schemes shall ensure that the valuation of a

particular land for socialized housing purposes shall

be within the affordability levels of prospective
beneficiaries;

(j) Recommend for approval of their respective LCEs
partnership arrangements with the national
government on, but shall not be limited to, the
following programs:

@

i. Housing Production Assistance, Resettlement
Assistance, Local Housing, Cost Recoverable
Joint Ventures and other relevant programs of
the National Housing Authority (NHA);


ii. Local government housing assistance programs
of the Home Development Mutual Fund
(HDMF), the National Home Mortgage Finance
Corporation (NHMFC), the Home Guaranty
Corporation (HGC), and for this purpose, local
housing boards shall coordinate with the
advisory Committee created to oversee the
implementation of the local Government
Pabahay Program; and
. Other socialized housing projects undertaken
by other national government agencies and
government-owned and controlled corporations
within their respective localities;

(k)Coordinate with government agencies and
instrumentalities performing functions which may
affect housing and urban development;

() Submit to the President and the Congress of the
Philippines, and annual report as provided in
Section 41 or Republic Act No. 7279; and

(m) Perform such other related functions established
by law or ordinance, as necessary to implement the
mandate of LGUs under UDHA.

SECTION 8. Housing and Urban Development Officer. - The
housing and urban development policies, plans and programs
formulated by the local Housing Board shall be implemented by
an appointive local official to be known as the Local Housing and
Urban Development Officer.

No person shall be appointed Local Housing and Urban
Development Officer unless he is a citizen of the Philippines, a
resident of the LGU concerned, of good moral character, a holder
of a college degree in public administration, urban planning,
development studies, economics, civil engineering, or other
related course with special training in housing and urban
development programs and management from a recognized
college or university, and a first grade civil service eligible or its
equivalent. He must have an experience in housing development
projects, organization of housing development projects,
organization of housing associations, management and operation
of housing and shelter programs’ and other related activities for


at least five years in the case of the Provincial or City Housing
and Urban Development Officer, and three years in the case of
Municipal Housing and Urban Development Officer.

The appointment of the Local Housing and Urban
Development Officer shall be mandatory for all the LGUs covered
under this Act.

SECTION 9. Duties and Functions of the Local Housing and
Urban Development Officer. - The Local Housing and Urban
Development Officer shall:

(a)Implement the local shelter plans prepared by the Local
Housing Board;

(b) Monitor the nature and progress of land development of
projects approved by the Board, as well as housing
construction in the case of house and lot packages, to
ensure their faithfulness to the approved plans and
specifications thereof, and impose appropriate measures
to enforce compliance therewith;

(c)Ensure compliance with the Balanced Housing
Requirement as provided in Section 18 of Republic Act
No. 7279 and its implementing rules and regulations;

(d)Conduct an inventory of all lands within the locality, and
update the same every three years, in accordance with
Section 7 of Republic Act No. 7279 and guidelines issued
for the purpose;

(c) Identify the sites for socialized housing for designation by
the Board, subject to the requirements prescribed by
Section 8 of Republic Act No. 7279 and the guidelines
issued for the purpose;

() Ensure the registration of underprivileged and homeless
urban or rural dwellers as socialized housing
beneficiaries under Section 16 and 17 of Republic Act No.
7279: Provided, That the Local Housing and Urban
Development Officer shall assume the functions of city or
municipal registration committee3s as constituted under
the implementing rules and regulations of the same
sections; and

(g)In addition, the Local Housing and Urban Development
Officer shall perform the following duties;


() Assist in the organization of housing and shelter
cooperatives, association and organizations;

(ii) Provide technical and other forms of assistance to
existing housing associations of cooperatives to enhance
their viability as an economic enterprise and social
organization;

(ii) Assist the housing association, cooperatives or
organizations in establishing linkages with government
agencies and NGOs involved in the promotion and
integration of the concept of shelter development and
generation, taking into account the livelihood of the
people and other community activities;

(iv) Ensure the enforcement of laws, policies and
programs on housing and shelter, organization of housing
cooperatives and associations, rehabilitation of or the
viability-enhancement, particularly during and in the
aftermath of man-made and natural calamities and
disaster, to aid in their survival and, if necessary, employ
subsequent rehabilitation of these entities or
beneficiaries; and

(v) Perform such other duties and functions as may be
prescribed by law or ordinance.

SECTION 10. Generation and Mobilization of Resources. —
The Local Housing Board is hereby constituted as the primary
entity tasked to advise the Local Chief Executive (LCE) on matters
of sourcing of funds for socialized housing. For this purpose, the
Local Housing Board may recommend the following schemes for
funding socialized housing projects;

(a) Build-operate-transfer and other related schemes;

(b)Bond flotation and other credit financing arrangements;

(c) Availment of foreign or local grants: Provided, That the
Local Housing Board is hereby authorized to receive
foreign and local grants which shall be remitted to the
local treasury, and shall be credited to the socialized
housing account of the LGU concerned;

(d)Loan packages from government financing/lending
institutions;

(e)Joint venture projects with private sector groups or
developers; and


() Pooling of resources between and among LGUs, the
private sector, NGOs and Pos.

SECTION 11. Demolition and Eviction Clearinghouse. - The
Local Housing Board is hereby tasked to oversee the
implementation of Section 28 of the UDHA and its implementing
rules and regulations: Provided, That just and humane eviction
and demolition procedures under Section 28 of the UDHA and its
implementing rules and regulations are likewise made applicable
to rural areas.

In this regard, the Local Housing Board shall:

(a)Oversee and coordinate government activities
relative to consultation, relocation and resettlement
of underprivileged and homeless urban or rural poor
dwellers in cases where evictions and demolitions
affecting them are necessary and allowed by existing
laws;

(b)Recommend polity measures and/or undertake
appropriate action to ensure full compliance with
the constitutional mandate and __ statutory
requirements prior to evictions and/or demolitions
affecting underprivileged and homeless urban or
rural poor dwellers; and

(c)Issue directives, rules and regulations, consistent
with laws, as it may deem necessary to effectively
carry out the purposes of the constitutional
mandate to ensure just the humane evictions and
demolitions.

SECTION 12. Compliance Report. - Before undertaking
evictions an/or Demolitions that will affect underprivileged and
homeless urban or rural poor dwellers, the city or municipality
concerned, national government agencies or other proponents of
eviction and/or demolition activities, including employees of the
judiciary, shall submit a compliance report to the Local Housing
Board, with a statement under oath that:

(a)Adequate consultation as defined and outlined
under pertinent laws, rules and regulations have
already been undertaken with the affected residents;


(b)Adequate relocation a defined and outlined under
pertinent laws, rules and regulations, is available,
ready and sufficiently supported by relocation and
resettlement finding; and

(c) The requirements and procedures prescribed under
the implementing rules and regulations of Section
28 of Republic Act No. 7279, specifically on the pre-
relocation, relocation and post-relocation phases of
eviction and/or demolition activities have been or
shall be observed.

The compliance report shall include a certified list of
families to be evicted and/or relocated. The Local
Housing Board shall have the power to review the
compliance report and approve or disapprove the
same.

SECTION 13. Meetings and Quorum - The Local Housing
Board shall meet at least once a month or as often as may be
deemed necessary. The presence of the chairperson or the vice
chairperson and a majority of the members of the Board shall
constitute a quorum.

Special meetings may be called by the chairperson or by a
majority of the members, with written notice, together with the
agenda of the meeting, served upon each member at least one (1)
day before the intended meeting.

The chairperson or, in his absence, the vice chairperson
shall preside over the Board meetings.

SECTION 14. Compensation and Remuneration. - Members
of the Local Housing Board who are no government officials or
employees shall be entitled to the necessary travelling expenses
and allowances chargeable against the funds of the Local
Housing Board concerned, subject to existing accounting and
auditing rules and regulations.

This does not preclude cities and municipalities from
mobilizing other possible funding sources for the compensation
and remuneration of members of the Local Housing Board who
are not government officials or employees.


SECTION 15. Special Socialized Housing Fund. - Cities and
municipalities shall establish a special account to be called the
“Special Socialized Housing Fund” to be administered by the
Board which shall serve as source of funds for the housing
programs of the city/municipality for the underprivileged and
homeless. Sources of said trust fund shall come from, but not
limited to, the following:

(a)An appropriation from the Internal Revenue Allotment the
amount of which shall be determined by the LGU;

(b)Proceeds generated from the collection of the additional
one-half percent (0.5%) tax on real properties;

(c)All funds/monies generated from various sources
intended for housing and other related development
programs; and

(d)All payments, remittances, accrued interests, penalties
and such other fees generated from housing related
activities.

SECTION 16. Roles of Stakeholders. - In order to facilitate
the work of the Board, the roles of the stakeholders shall be as
provided for under this section:

(a)The LGU shall:

(l)Identify and prioritize areas for housing
development:

(2)Plan on the total housing need of its constituents;

(3)Provide basic information relative to the areas that
may be proposed for issuance of Presidential
Proclamation;

(4) Assist in the conduct of verification survey;

(5)Monitor and oversee the implementation of the
activities in accordance with their respective work
programs; and

(6)Prepare the detailed work program for approved
housing projects.

(b)The HUDCC shall:


(1)Recommended to the Board, options for the
development of sites or disposition schemes to the
intended beneficiaries;

(2)Process and recommend to the President, idle or
underutilized government lands identified by the
Board as sites which are suitable for housing
purposes;

(3)Solicit assistance from other national government
agencies whose functions and services are necessary
in the provision of housing and delivery of basic
services;

(4)Through the NHA, prepare the master development
plans of the areas identified for housing;

(5)Identify and recommend housing projects/programs
which can be implemented and funded through
alternative schemes; and

(6)Draw up guidelines as well as terms of reference to
cover the implementation of identified priority
housing projects.

(c)The Presidential Commission for the Urban Poor
shall:

(1)Monitor all evictions and/or demolitions, whether
extrajudicial or court-order, involving homeless and
underprivileged citizens;

(2)Investigate motu propio or upon complaint by any
party, any violation of the provisions of Section 28 of
Republic Act No. 7279 and its implementing rules
and regulations;

(3)File motu proprio or by way of assistance to any
aggrieved party the appropriate criminal, civil or
administrative case against any person or persons
found to have violated the provisions of Section 28
of Republic Act No. 7279 or its implementing rules
and regulations; and

(4)Such other functions as may be provided for under
Executive Order No. 1521, series of 2002.

(d)The PO and NGO representatives shall:


(1)Assist in the holding of dialogues and consultations
with affected families leading to their full acceptance
and support to the program.

(2)Provide a feedback mechanism to the Board and
ensure urban poor participation in the decision-
making process;

(3)Assist the Board in processing applications and

documents;
(4)Provide support to the Board in community
relations, social preparation, information

dissemination and motivation activities at the
identified housing sites;

(5)Activity participate in the drawing up of the
development plan for the area; and

(6)Identify pro-poor programs to uplift the
socioeconomic conditions of the affected urban poor
residents.

SECTION 17. Penalties. - Failure to submit the compliance
report as required by Section 12 of this Act, or any act of
misrepresentation or fraud in connection with any information
contained in a submitted compliance report, or the unjustified
failure of or refusal by the LCE to constitute the Local Housing
Board as created and defined by this Act, shall subject the
national and local government officials and employees
responsible for such omission, misrepresentation, fraud or
unjustified failure or refusal to:

(a) Disciplinary action under Book 1, Title Two, Chapter 4 of
the Local Government Code; and/or

(b)Prosecution under the penalty clause of Republic Act No.
7279,

For this purpose, the LCE of a city or municipality shall
constitute such Local Housing Board within ninety (90) days
from the promulgation of the implementing rules and
regulations of this Act. Failure to constitute the Board
within this prescribed period shall be prima facie evidence
of unjustified failure or refusal to do so.

SECTION 18. Transitory Provisions. - Cities and
municipalities with existing Local Housing and Urban


Development Board or similar entity are hereby given ninety (90)
days from the promulgation of the implementing rules and
regulations of this Act within which to amend their respective
ordinances to conform with the provisions of this Act. Provided,
That nothing herein stated shall preclude cities and
municipalities from assigning additional functions to the Board
and/or appropriating additional funds to achieve the objectives of
this Act: Provided, further, That the national government
agencies may assist in the capability-building of the LGUs on
matters of plan preparation, financing and housing regulation,
especially in the performance of the tasks relative to paragraphs
(h) and (i) of Section 7 hereof on the approval of schemes and
development plans of subdivision, residential, commercial,
industrial and other purposes.

SECTION 19. Implementing Rules and Regulations. - Within
sixty (60) days after the approval of this Act, the HUDCC and the
Department of the Interior and Local Government (DILG), in
consultation with the concerned government agencies, the private
sector the League of Cities and the League of Municipalities, Pos
and NGOs, shall formulate the appropriate rules and regulations
necessary to effectively implement the provisions of this Act.
Such rules and regulations shall include, among others,
guidelines on the following:

(a)Resource generation and mobilization for socialized
housing purposes:

(b)Schemes for local government housing assistance; and

(c)Accreditation and selection of representatives of the
private sector, NGOs and Pos to the Local Housing Board.

SECTION 20. Repealing Clause. - All pertinent provisions of
the Local Government Code and Executive Order No. 71, series of
1993, and all other laws, decrees executive orders,
proclamations, rules and regulations and other issuances, or part
or parts thereof, which are inconsistence with the provisions of
this Act are hereby repealed, amended or modified accordingly.

SECTION 21. Separability Clause. - If, for any reason any
provision of this Act is declared invalid or unconstitutional, the
remaining provisions not affected thereby shall continue to be in
force and effect.


SECTION 22. Effectivity Clause. - This Act shall take effect
fifteen (15) days after its publication in the Official Gazette or in
at least two (2) newspapers of general circulation.

Approved,