THIRTEENTH CONGRESS OF THE REPUBLIC 
First Regular Session 
:3 
OF THE PHILIPPINES 
S E N A T’\E 
Introduced by Senator S. R. OsmeAa 111 
EXPLANATORY NOTE 
The Philippines has a total population of 79.503 million people as of 2002, 
with an average population growth rate of roughly 2 percent per annum. The 
Philippine population is forecasted to reach 84.241 million people by 2005. In 
addition, the Housing and Urban Development Coordinating Council has 
projected that the country’s housing requirements shall reach 3.285 million units 
by the year 2005. 
These statistics serve to underscore the need for the 
government to find a solution to the housing problem of the nation at the soonest 
time possible. 
It is with this in mind that this bill is herby being proposed. The bill seeks 
to lay the foundation for a land reform program with regards to residential units, a 
Residential Land Reform so to speak, The bill proposes that all alienable and 
disposable public lands be distributed regardless of tenure arrangements. 
It 
provides that the maximum residential area permissible for sale is not to exceed 
700 square meters within cities and capital towns and 1,000 square meters in 
other areas. 
In view hereof, the approval of this measure is highly recommended. 
SERGIO OSMENA 111 
Senator 
lrlg 


THIRTEENTH CONGRESS F THE REPUBLIC 
OF THE PHILIPPINE 
First Regular Session 
) 
A 
S E  
v 
S. No. 
Introduced by Senator S. R. Osmefia 111 
AN ACT 
PROVIDING FOR A NATIONAL HOMELOTS DISTRIBUTION PROGRAM 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
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SECTION 
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Short Title. - This Act shall be known as the 
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SEC. 2. Declaration of Policy. - It is hereby declared policy of the 
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State to pursue a continuing program of urban land reform and housing through a 
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comprehensive national homelots distribution program which shall fast track 
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titling of homelots to qualified beneficiaries from the marginalized sectors of 
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society at affordable cost and shall provide financing schemes to acquire the 
“Comprehensive National Homelots Distribution Act of 2004” 
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same. 
SEC. 3. Definition of Terms- For the purpose of this Act, the following 
are hereby defined: 
(a) “Affordable cost” refers to the most reasonable price of land and shelter 
based on the needs and financial capability of program beneficiaries and 
appropriate financing schemes. 
(b) “Agricultural lands” refer to lands devoted to or suitable for the 
cultivation of the soil, planting of crops, growing of fruit trees, raising of livestock, 
poultry, fish or aquaculture production, including the harvesting of such farm 
products, and other farm activities and practices performed in conjunction with 
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industrial land. 
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such farming operations done by persons whether natural or juridical and not 
classified by law as mineral land, forest land, residential land, commercial land or 
(c) “Alienable and disposable lands of the public domain” refer to those 
lands of the public domain which have been delineated, classified and certified 
as such, declared as not needed for forest, mineral purposes or national parks, 
and available for disposition under Commonwealth Act No. 141 , otherwise known 
No. 8371, 
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as the “Public Land Act” as amended. 
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(d) “hcestral domain” refers to all areas generally belonging to indigenous 
otherwise known as the Indigenous Peoples Rights Act (IPRA) of 
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(e) “Beneficiary” refers to a natural person who has been occupying a 
parcel of land as defined in paragraph (c) of this section for two (2) years or more 
and identified by the local government unit as qualified to own a homelot in 
accordance with the eligibility criteria in Section 6 of this Act and the rules and 
regulations formulated in accordance with this Act. 
(9 “Forestlands” refer to lands of the public domain, which have been 
classified or declared as such by existing forestry laws and all unclassified lands 
of the public domain. 
(9) “Homelot” refers to a parcel of residential land occupied for two (2) 
years or more by qualified beneficiaries prescribed in this Act situated in public 
lands mostly in the poblacion area or center of municipalities andlor cities. 
(h) “Idle land” refers to non-agricultural lands in urban and urbanizable 
areas on which no improvements, as herein defined, have been made by the 
owner, as certified by the city, municipal or provincial assessor. 
(i) “Improvements” refer to all types of buildings and residential units, 
walls, fences, structures or construction of all kinds of a fixed character or which 
are adhered to the soil but shall not include trees, plants and growing fruits, and 
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other fixtures that are mere superimpositions on the land, and the value of 
improvements shall not be less than fifty percent (50%) of the assessed value of 
the property. 
(j) “Lands of public domain” refer to lands that belong to the State, which 
may be any of the following: agricultural, forest or timber, mineral, or national 
park as provided for in the Constitution. 
(k) “Land use” refers to the manner of utilization of land, including its 
allocation, development and management. 
(I) “Mineral lands” refer to lands where mineral including energy resources 
are found. 
(m)“Professional squatters” refer to individuals or groups who occupy lands 
without the express consent of the landowner and who have sufficient income for 
legitimate housing. The term shall apply to persons who have previously been 
awarded homelot or housing units by the government but who sold, leased or 
transferred the same settle illegally in the same place or in another urban area, 
and non-bona fide occupants and intruders of lands reserved for socialized 
housing. The term shall not apply to individuals or groups who simply rent land 
and housing from professional squatters or squatting syndicates. 
(n) “Public lands” refer to lands which have not been subject to private 
property rights or subject to sale or other modes of acquisition or concession 
under the general laws and are devoted to public use. 
(0) “Residential lands” refer to lands intended for or devoted to the 
construction and establishment of dwellings. 
(p) “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 Republic Act No. 7279 or 
the Urban Development and Housing Act.” 
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(9) “Squatting syndicates” refer to groups of persons engaged in the 
business of squatter housing for profit or gain. 
(r) “Underprivileged and homeless citizens” refer to individuals or families 
residing in urban and urbanizable areas whose income or combined household 
income falls within the poverty threshold as defined by the national Economic 
and Development Authority (NEDA) and who do not own housing facilities. This 
shall include those who live in makeshift dwelling units and do not enjoy security 
of tenure. 
(s) “Urban areas” refer to all cities regardless of their population density 
and to municipalities with population density of at least five hundred (500) 
persons per square kilometer. 
(t) “Urbanizable areas” refer to sites and lands which, considering present 
characteristics and prevailing conditions, display marked and great potential of 
becoming urban areas within a period of five (5) years. 
(u) “Vested right” refers to such right to, or interest in, property that has 
become fixed and established and no longer open to question by reason of 
actual, exclusive and continuous possession in good faith of a public land within 
a period prescribed by law. 
SEC. 4. Scope.- The comprehensive National Homelots Distribution 
Program (NHDP) shall cover, regardless of tenurial arrangement, all alienable 
and disposable public lands as defined in this Act, and are not within the scope of 
the following: 
(a) Comprehensive Agrarian Reform Law or Republic Act No. 6657; 
(b) National Integrated Protected Areas as provided in Republic Act No. 
7586; 
(c) Areas declared as forested land or forest reserves and ancestral 
domain lands under Republic Act No. 8371; 
(d) Agricultural Lands as defined in Republic Act No. 8435 or the 
“Agriculture and Fisheries Modernization Act,” and 
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(e) Other areas reserved for specific purposes, as provided by specific 
laws. 
SEC. 5. National Homelots Distribution 
rogram (NHDP).- The 
Department of Environment and Natural Resources (DENR) through the Land 
Management Bureau (LBM), shall formulate, implement and complete a viable 
program to distribute with titles alienable and disposable land through sale to 
qualified beneficiaries covered by this Act. It shall also undertake cadastral 
survey for all other areas which have not been surveyed the cost of which shall 
not exceed Two pesos (P2.00) per square meter. The distribution of the 
residential lands shall be implemented immediately and completed within two (2) 
years from the effectivity of this Act. 
The maximum residential area allowed for sale in this Act shall not exceed 
seven hundred (700) square meters within cities and capital towns, and one 
thousand (1,000) square meters in all other places: Provided, however, That the 
limitations fixed herein on the maximum area on landholdings shall not be 
applicable to persons, who, upon the effectivity of this Act, by previous, 
occupation of not less than (IO) years over a residential lot, has established his 
dwelling house thereat where he and his family have been living, in good faith, 
free from claims and conflicts has paid the real estate taxes thereon, and has 
acquired a vested right. Residential lots exceeding in area than those provided 
for cities and capital towns and those for other places but not exceeding one 
thousand two hundred (1,200) square meters may be granted to qualified 
persons as herein provided. 
The DENR shall coordinate with the Department of Agrarian Reform 
(DAR), the Department of Agriculture (DA) and the National Commission on 
Indigenous Peoples (NCIP) to ensure that lands exempted under Section 4 will 
not be covered by the program. 
Using the local land use plans as reference, the local government units 
(LGUs) shall assists the DENR in identifying lands qualified for distribution to 
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homeowners. The LGUs shall also identify qualified beneficiaries and consider 
the infrastructure and service requirements of areas covered by the program 
when updating their local development and comprehensive land use plans. 
The Housing and Urban Development Coordinating Council (HUDCC) shall 
formulate the Socialized Housing Program, including the financing component, to 
assist the beneficiaries in acquiring affordable homelots and houses. 
SEC. 6. Qualified Beneficiaries.- The lands within the scope of this Act 
shall be distributed to qualified residents of the barangay where such homelot is 
located. The LGUs shall lead in coordination with the HUDCC, in identifying 
qualified beneficiaries for the NHDP. Priority shall be extended to landless and 
underprivileged residents who are already occupying said homelots for two (2) or 
more years. Qualified beneficiaries must secure barangay certification stating 
proof that they are the rightful occupant of such homelot for the period prescribed 
in this Act. 
To qualify, the following criteria shall also be fulfilled: 
(a) Must be Filipino citizen; 
(b) Must now own any real property whether in the urban or rural areas; 
(c) Must not be a professional squatter or a member of squatting 
syndicates, as defined in the Urban Development Housing Act, and 
(d) Must have made improvements and used the land for productive 
purposes 
SEC. 7. Land Valuation. - The DENR, in close coordination with LGUs 
through the municipal or city assessors, shall formulate a land valuation scheme 
for the NHDP calibrated according to the municipality's or city's clasification, in 
accordance with the following scheme: 
(a) For 4'h and !jth class municipalities- not more than Twenty-five pesos 
(P25.00) per square meter; 
(b) For 2nd and 3rd class municipalities- not more than Forty- pesos 
(P40.00) per square meter; 
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the distribution 
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beneficiaries. 
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A beneficiary 
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shall thereafter be 
17 . this Act. 
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of homelots and acquisition of affordable housing for 
whose homelot, as provided herein, has been foreclosed 
permanently disqualified from becoming a beneficiary under 
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SEC. 9. Local 
prior to the withholding 
ten percent (1 0%) 
SEC. 
I O .  
beneficiaries under 
through hereditary 
of the Philippines 
Commonwealth Act 
SEC. 11. 
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Government Unit's Share. The local government units, 
of the appropriate taxes, shall have a share equivalent to 
of the gross sales of the homelots. 
Transferability of Awarded Lofs.- Lots acquired be 
this Act cannot be sold, transferred or conveyed except 
succession, or sold back to the government or the Land Bank 
for a period of ten (IO) years as provided for in Section 29 of 
No. 141. 
Fraudulenf Claims- The District Land Office under the 
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(c) For 1' class municipalities- not more than Fifty-pesos (P50.00) per 
square meter; 
(d) For component cities- not more than Seventy-five pesos (P75.00) per 
square meter; and 
(e) For highly urbanized cities- not more than Five hundred pesos 
(P500.00) per square meter. 
SEC. 8 Financing Program- The HUDCC, in coordination with the 
Department of Finance (FoF), shall formulate a financing program to assist the 
beneficiaries under this Act to acquire their homelots and build affordable 
houses. It shall also consider existing program such as the Community Mortgage 
Program, and develop other financing schemes in coordination with Home 
Guarantee Corporation and other government financial institutions to fast track 
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to be fraudulently acquired by, and issued to, any person or community may be 
cancelled by the LBM after due notice and hearing of all parties concerned. 
SEC. 12. Resolution of conflicts,- In cases of conflicting interest, where 
there are adverse claims as delineated in the survey plan and which cannot be 
resolved, the LBM shall hear and decide after notice to the proper parties, the 
disputes arising from the delineation of such homelots: Provided, That any 
decision, order, award or ruling of the LBM on any homelot dispute or on any 
matter pertaining to the application, implementation, enforcement 
and 
interpretation of this Act may be brought for petition for review to the Court of 
Appeals within fifteen (15) days from receipt of the copy thereof. 
SEC. 13. Penalfy Clause.- Any person who violates any provision of this 
Act shall be imposed the penalty of not more than six (6) years of imprisonment 
or a fine of not less than Five thousand pesos (P5,OOO.OO) but not more than One 
hundred pesos (PlOO,OOO.OO), or both, at the discretion of the court: Provided, 
That if the offender is a corporation, partnership, association or other juridical 
entity, the penalty shall be imposed on the officer or officers of said corporation, 
partnership, association or juridical entity who caused the violation. 
SEC. 14. implementing Rules and Regulations.- The DENR, through the 
LMB, in consultation with the Department of the Interior and Local government, 
HUDCC, Land Registration Authority, DA, DAR, DoF and NClP and other 
concerned government agencies, shall promulgate the rules and regulations for 
the effective implementation of this Act within three (3) months from its effectivity. 
SEC. 15. Repealing Clause.- All other laws, decrees, executive orders, 
rules and regulations, issuances or parts thereof inconsistent with this Act are 
hereby repealed or amended accordingly. 
SEC. 16. Separability Clause- If any provision of this Act is subsequently 
declared unconstitutional, the validity of the remaining provisions hereof shall 
remain in full force and effect. 
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SEC. 17. Effecfivify Clause- This Act shall take effect immediately after 
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Approved, 
publication in at least two (2) national newspapers of general circulation