Republic of the Philippines
HOUSE OF REPRESENTATIVES
Batasang Pambansa, Quezon City

FIFTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. _ 3278

INTRODUCED BY REP. JOSEPH VICTOR G. EJERCITO

EXPLANATORY NOTE

Section 2 of the Urban Development and Housing Act of 1992
provides that the State shall “undertake, in cooperation with the
private sector, a comprehensive and continuing Urban Development
and Housing Program.”

To ensure the achievement of the objectives of this Program,
Section 6 called for the formulation of a comprehensive plan for urban
and urbanizable areas. Under this comprehensive plan the following
responsibilities were given to the Local Government Units (LGUs): (1)
inventory of lands for socialized housing (Section 7); (2) identification
of sites for socialized housing (Section 8); (3) registration of socialized
housing beneficiaries (Section 17) and; (4) monitoring of compliance
by developers of the twenty percent (20%) balanced housing provision
under Section 18.

Clearly, there is a need for a specialized body in our LGUs that
shall ensure the faithful and proactive execution of housing programs
at the local level. A void at the local level in the form of a mechanism
to hasten the delivery of shelter services to our people, especially
those who need it most, needs to be filled up.

It is envisioned that this proposed measure will provide an
administrative machinery at the local level to effect the
implementation of the UDHA as well as cope with the fast pace of
urbanization of the country. Another reason for the passage of this bill
is that there is also a need to institutionalize multi-sectoral
representation in local housing initiatives. This is premised on the fact
that the success of these programs will, to a large extent, depend on
the direct participation and cooperation of the stakeholders in the
planning and implementation process. By this we mean that the people
who are going to be affected or benefited by such Projects should be
given a voice in the planning and implementation of such projects.

In view of the foregoing, the passage of this bill is earnestly

sought. ( -.

JOSEPH VICTOR G. EJERCITO


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Batasang Pambansa, Quezon City

FIFTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. _8e 78

INTRODUCED BY REP. JOSEPH VICTOR G. EJERCITO

AN ACT
CREATING A LOCAL HOUSING BOARD IN ALL CITIES
AND FIRST TO THIRD CLASS MUNICIPALITIES,
PROVIDING FOR ITS POWERS AND FUNCTIONS, AND
FOR OTHER PURPOSES

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

SECTION 1. Short Title. - This Act shall he known as the
"Local Housing Boards Act."

SEC. 2. Declaration of Policy. - It is hereby declared the policy
of the State to:

a) 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) Adopt a continuing housing program that will make available
at affordable cost, decent housing and basic services to all especially
the underprivileged and homeless;

c) Protect urban and rural poor dwellers from evictions or
demolitions undertaken in violation of the law;

d) Require all national agencies and offices to conduct periodic
consultations with appropriate local government units (LGUs), non-
governmental and people's organizations and other concerned sectors
of the community before any project or program is implemented in
their respective jurisdictions;

e) Promote and institutionalize the participation of the private
sector, non-government organizations (NGOs) and people's
organization (POs) in the urban and rural development process; and


f) Promote genuine and meaningful local autonomy to political
subdivisions of the State 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 these ends, the State shall provide for a more responsive
and accountable local government structure instituted through a
system of decentralization whereby LGUs, through the creation of local
housing boards, shall be given more powers, authority, responsibilities
and resources in the planning and execution of their housing
programs.

SEC. 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 responsibility
given to developers of subdivision projects pursuant to Section 18 of
the Urban Development and Housing Act (UDHA) of 1992;

b) Comprehensive Land Use Plan refers 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 provisions of the
UDHA;

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

d) 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 problems. 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;

e) Non-Government Organization refers to a non-stock, non-
profit domestic corporation or organization as defined under Section
34 (H) (2) (c) of the Tax Code organized and operated exclusively for
scientific, research, educational, character building, youth and sports
development, health, social welfare, cultural or charitable purposes, or
a combination thereof, no part of the net income of which inures to the
benefit of any private individual;

f) NUDHF refers to the comprehensive plan for urban and
urbanizable areas aimed at achieving the objectives set forth under
the UDHA of 1992;


g) People s Organization refers to a bonafide association of
citizens with demonstrated capacity to promote the public interest and
with identifiable leadership, membership, and structure.

h) Rural Areas refer to those areas that are not urban areas as
defined under this Act;

i) Socialized Housing refers to housing programs and projects
covering houses and lots or homelots only undertaken by the
Government or the private sector for the underprivileged and
homeless citizens which shall include sites and services development,
long-term financing, liberalized terms on interest payments, and such
other benefits in accordance with the provisions of the UDHA;

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

k) Underprivileged and Homeless Rural or Urban Poor Dwellers
refer 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
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;

!) 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;

m) Local Housing Boards refer to all housing boards in cities and
first to third class municipalities created under this Act; and

0) Local Housing Ofice refers to the implementing body of the
local housing board.

SEC. 4. Local Housing Boards; Creation; Composition. -
There shall be created a Local Housing Board, hereinafter referred to
as the Board, in all cities and first to third class municipalities as
classified by the Secretary of Finance: Provided, That fourth and fifth
class municipalities may create their own Local Housing Board if they
so desire. The Board shall be composed of the following:

a) The City/Municipal Mayor as Chairperson;

b) The Vice Mayor as Vice Chairperson;

c) The Chairperson of the Sangguniang Bayan Committee on Housing
and Urban Development or its equivalent as Member;

d) The City/Municipal Planning and Development Coordinator as
Member;

e) The City/Municipal Engineer as Member;

f) A representative of the housing agencies to be designated by the
HUDCC as Member;

g) A representative from a private organization engaged in subdivision
and housing development operating in the city or municipality as
Member;


h) A representative from €'Os operating in the city or municipality as
Member: Provided, That a PO already represented in any local special
body may be concurrently represented in any local housing board; and
i) A representative from NGOs operating in the city or municipality as
Member Provided, That an NGO already represented in any local
special body may be concurrently represented in any local housing
board. Representatives to the Board from organizations mentioned in
the last three paragraphs of this section shall be selected through the
same process as that of filling up the representatives of the local
special bodies.

SEC. 5, Powers and Functions. - Local Housing Boards shall
have the following powers and functions:

a) Formulate, develop, and recommend to the Sanggunian,
policies, directives, rules and regulations, consistent with laws, as it
may deem necessary, on the provision of decent and affordable
housing and resettlement areas and on the observance of the right of
the underprivileged and homeless to just and humane evictions and
demolitions;

b) With the assistance of the HUDCC and other concerned
government agencies, prepare a Local Shelter Plan which shall form
part of the city/municipal development plan: Provided, That such plan
shall be consistent with the city/municipal land use plan: Provided
further, That public hearings shall be conducted for the purpose;

c) Approve preliminary and final subdivision schemes and
development plans of subdivisions and condominiums 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;

d) 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;

e) Evaluate and resolve the opposition to the issuance of
development permits for any of the projects stated in the two (2)
Preceding sub-sections, in accordance with the said laws and the Rules
of Procedure promulgated by the Housing and Land Use Regulatory
Board (HLURB) incident thereto;

f) Designate at least one (1) representative to their respective
local development councils: Provided, That said representative is not
already a member of the council;

g) Recommend to the Sanggunian, the sites for socialized
housing, subject to the requirements prescribed by Section 8 of R.A.
7279 and guidelines issued for the purpose;


h) Advise the Sanggunian 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 land
tax, and an additional levy on the real property tax to constitute a
Special Socialized Housing Fund;

i) Recommend, for approval of 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 R.A. 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 the provision of decent
and affordable shelter;

k) Through the local chief executive, submit to the President and
the Congress of the Philippines, an annual report as provided by
Section 41 of R.A. 7279; and

!) Perform such other related functions established by law or
ordinance, as necessary to implement the mandate of local
government units under the UDHA.

SEC. 6. Local Housing Office; Creation: Functions. - There
shall be created a Local Housing Office in all cities and municipalities
which shall heretofore become a regular office under the local
government unit and serve as the implementing arm of the Board. The
Urban Poor Affairs Office or its equivalent office in cities or
municipalities shall be converted into the Local Housing Office and in
addition to its existing functions, shall have the following additional
functions:

a) Assist the Board in the preparation of the local shelter plan;
b) Assist the city/municipal development councils in the
formulation of their respective comprehensive land use plans;

c) 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;

d) Ensure that the balanced housing requirements as provided in
Section 18 of R.A. 7279 and its implementing rules and regulations are
implemented and enforced;

) In coordination with other offices within the LGU, monitor the
nature and progress of land development of projects that the Board
has approved, 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;


f) Conduct an inventory of all lands within their respective
localities, and update the same every three (3) years, in accordance
with Section 7 of R.A. 7279 and guidelines issued for the purpose;

g) Identify the sites for socialized housing, subject to the
requirements prescribed by Section 8 of R.A. 7279 and guidelines
issued for the purpose;

h) Ensure the registration of underprivileged and homeless urban
or rural dwellers as socialized housing beneficiaries under Sections 16
and 17 of R.A. 7279: Provided That the Local Housing Office shall
assume the functions of city or municipal registration committees as
constituted under the implementing rules and regulations of the same
sections;

i) Ensure the prevention of proliferation of professional squatters
and squatting syndicates within its jurisdiction;

h) Ensure the enforcement of laws, policies and programs on
housing and shelter as provided for under laws and such directives,
rules and regulations adopted by the Board;

k) Assist in the organization of housing and shelter cooperatives,
associations 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;

j) Provide technical and other forms of assistance to existing
housing associations or cooperatives to enhance their viability as
economic enterprises and social organizations;

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

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

SEC. 7. Local Housing Officer. - The \ocal housing office shall
be headed by a Local Housing Officer who shall be a career official. No
person shall be appointed Local Housing 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 either in public administration,
urban planning, civil engineering, economics, development studies or
such other related courses. He must have at least five (5) years
experience in the case of cities, and three (3) years experience in the
case of municipalities, either in housing development projects,
organization of housing associations or cooperatives, management and
operation of housing and shelter programs or such other related
activities.


SEC. 8. Generation and Mobilization of Resources. - The
Boards are hereby constituted as the primary entities tasked to advise
local development councils on matters of sourcing of funds for
socialized housing. For this purpose, the Boards 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 local
housing boards are 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 local government unit
concerned;

d) Loan packages from government financing/lending
institutions;

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

f) Pooling of resources between and among LGUs, the private
sector, NGOs and POs.

SEC. 9. Meetings and Quorum. - The Board shall have its
meeting 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 when situations so warrant. Decisions shall be reached
by the Board through a simple majority.

A written notice of the date, time, place and agenda of the
meeting shall be sent to each member of the Board at least three (3)
days prior to the scheduled meeting or at least one (1) day, if it is a
special meeting.

SEC. 10. Compensation and Remuneration. - Members of
the Board who are not government officials or employees shall be
entitled to the necessary traveling 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 cities and municipalities from mobilizing other
possible funding sources for the compensation and remuneration of
members of the Board who are not government officials or employees.

SEC. 11. Special Housing Trust Fund. - Cities and
municipalities shall establish a special account to be called the "Special
Housing Trust Fund" to initially establish the local housing office and 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) Proceeds generated from the collection of the additional one-
half percent (0.5%) tax on real properties;

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

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

SEC. 12. 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 Local Government Unit shall:

1) 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, Housing and Urban Development Coordinating Council shall:

1) Recommend to the local housing 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 ands identified by the local housing 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 National Housing Authority (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 demolitions, whether extra-judicial or
court-ordered, involving homeless and underprivileged citizens;

2) Require the concerned departments and agencies, including
concerned LGUs, proposing to undertake demolition and eviction
activities to secure first from either the PCUP Central Office, in the
case of national projects, or from the PCUP Regional Office concerned,
in the case of regional or local projects, the checklists, guidelines and
compliance certificates on demolition and eviction prior to the actual
implementation thereof and thereafter, submit to the PCUP the
completed checklist, attested to under oath by the proponent that the


provisions of Section 28 of RA 7279 or its implementing rules and
regulations have been complied with;

3) Based on the completed checklist and subject to further verification,
issue demolition and eviction compliance certificates to proposed
demolitions and evictions involving homeless and underprivileged
citizens;

4) Investigate motu propio or upon complaint by any party, any
violation of the provisions of Section 28 of RA 7279 and its
implementing rules and regulations;

5) 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 RA 7279 or its implementing rules and regulations; and

6) Such other functions as provided for under Executive Order No.

152, 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 feedback mechanism to the Local Housing Board and ensure
urban poor participation in the decision-making process;

3) Assist the Local Housing Board in processing applications and
documents;

4) Provide support to the local housing board in the community
relations, social preparations and information disseminations and
motivation activities at the identified housing sites;

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

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

SEC. 13. Penalties. - Unjustified failure or refusal of a mayor 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 the such omission, misrepresentation, fraud, or
unjustified failure or refusal to:

a) disciplinary action under Book I, Title Two, Chapter 4 of the
Local Code; and/or Government

b) prosecution under the penalty clause of the UDHA.

SEC. 14. Transitory Provisions. - Local chief executives of
cities and first to third class municipalities shall constitute their
respective Boards within ninety (90) days from the promulgation of
the implementing rules and regulations of this Act. Local Chief
Executives of fourth to sixth class municipalities are given a minimum
of two (2) years from the promulgation of the implementing rules and
regulations of this Act to constitute their Boards. Failure to constitute
the Board within this prescribed period shall be prima facie evidence of
unjustified failure or refusal to do so.


Cities and municipalities with existing local housing and urban
development boards or similar entities are hereby given ninety (90)
days from the promulgation of the implementing rules and regulations
of this Act to conform with the provisions of this Act: Provided, That
nothing herein stated shall preclude cities and municipalities from
designating additional functions and/or appropriating additional funds
to achieve the objectives of this Act.

SEC. 15. Implementing Rules and Regulations. - Within
sixty (60) days after the approval of this Act, the HUDCC and the
DILG, in consultation with the concerned government agencies, the
private sector, POs and NGOs, shall formulate the appropriate rules
and regulations necessary to effectively implement any or all of 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

¢) Accreditation and selection of representatives of the private
sector, NGOs and POs to the local housing board.

SEC. 16. Repealing Clause. - (a) Sections 447 (a) (2) (x) and
458 (a) (2) (x) of the Local Government Code are hereby repealed; (b)
Section 107 (b) of the Local Government Code is hereby amended;
and (c) All laws, decrees, executive orders, proclamations, rules and
regulations, and other issuances, or part or parts thereof, which are
inconsistent with the provisions of this Act are hereby repealed or
modified accordingly.

Sec. 17. 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.

Sec. 18. Effectivity Clause. - This Act shall take effect fifteen

(15) days after its publication in at least two (2) newspapers of
general circulation.

Approved,