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

Sixteenth Congress
First Regular Session

3975

House Bill No.

Introduced by AKBAYAN Representatives
Ibarra “Barry” M. Gutierrez, II and Walden F. Bello

EXPLANATORY NOTE

The 1987 Philippine Constitution, in its Article XIL Gocial Justice and Human Rights), it is

provided:

“Sution 9, The State shall, by law, and for the common good,
undertake, in cooperation with the private sector, a continuing
program of urban land reform and housing which will make
available at affordable cost decent housing and basic services to
underprivileged and homeless citizens in utban centers and
resettlement areas. It shall also promote adequate employments
of such programs that the State shall respect the rights of small
property owners.”

“Section 10, Urban ot rural poor dwellers shall not be evicted nor
their dwellings demolished, except in accordance with law and in
a just and humane manner.

No resettlement of urban of rural dwellers shall be undertaken,
without adequate consultation with them and the communities
where they are to be located.”

‘The commitment of the State to undertake a continuing program of urban land reform with the
end of view of securing affordable housing and basic services to the underprivileged, as well as
the obligation of the State to respect and protect the tight of the poor against forcible eviction,

are both mandatory in our Constitution.


‘The enactment of the Urban Development and Housing Act in 1992paved the way for the provision
of a complete solution to the problem of informal settlement. It sought to ensure that homeless
Filipinos would be given homes through the joint efforts of the government and the private
sector, It sought to provide the framework for providing safer, accessible and, more importantly,
permanent homes to families who set up dwelling in areas intended for public use and in ‘danger

zones.”

Awo decades after the passage of the Urban Development and Housing Act show that reality has not
lived up to the noble intention of the legislation. Estimates by the Housing and Urban
Development Coordinating Council in 2011 show a national housing backlog of 3,756,072, this
translates to over 3.7 million Filipino families lacking safe and secure dwellings or, assuming an
average family size of 5, to more than 18 million Filipinos living under precarious conditions. In
fact, from 1998 to 2011, the government has only managed to provide resettlement to 235,214

families, an average of 16,801 families per year.

This housing backlog will increase because of out growing population and the intensifying
migration to urban centers. By all indication the government will continue to miss its annual
housing targets, a backlog which the Housing and Urban Development Coordinating Council

estimates to rise by more than 195,000 for every year.

Clearly, one of etucial issues in the government housing program, particularly in relation to the

relocation of informal settlers, is sustainability,

In 2011, the Aquino Administration ordered the allocation offifty billion Philippine pesos
(PhP50,000,000,000.00) for a five-year resettlement program aimed to ensure safe and flood-
resilient permanent housing solutions for 104,219 informal settler families (ISFs) living in the so-
called “danger areas” of the National Capital Region by 2016, What we have to appreciate in the
‘Administration's resettlement program, however, was the innovation which came from the
framework adopted by different agencies and stakeholders implementing it, a framework now

expressed in a Joint Memorandum Circular


‘The Joint Memorandum Circular, signed and adopted by implementing government agencies,
mandates that resettlement sites should be on-site or, in situations where this is not possible, in-
city or, if still not possible, near-city. As an added innovation, the resettlement should be
implemented in accordance with a “People’s Plan,” which is a proposal to be developed by the

‘community being relocated

‘The official adoption of an “on-site, in-city, near-city” policy governing resettlement, and the
primary role given to the “People’s Plan” in implementation, are extremely significant and
groundbreaking steps that will likely prove to be crucial innovations in ensuring the sustainability
‘of furuse resettlement projects not just in the National Capital Region, but across all regions. The
on-site, in-city paradigm ensures continued access of ISFs to their employment and a market for
their microenterprises, while the institutionalization of the People’s Plan process ensures a level
of participation and, more importantly, ownership of the program that will make ISFs active
partners in the initiative instead of simply being passive subjects to the same, Both contribute

greatly to enhancing sustainability, and ultimately, viability of the resettlement program.

In view of the foregoing, the passage of this bill is eamestly sought.

IBARRA she m1 WALDEN F, BELLO


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

Sixteenth Cong:
First Regular Session

3975

House Bill No.

Introduced by AKBAYAN Representatives
Ibarra “Barry” M, Gutierrez III and Walden F. Bello

AN ACT.

” ESTABLISHING AN ON-SITE, IN-CITY OR NEAR-CITY POLICY IN THE
PROVISION OF RESETTLEMENT SITES FOR INFORMAL SETTLER FAMILIES
IN ACCORDANCE WITH THE PEOPLE'S PLAN,

AMENDING FOR THIS PURPOSE REPUBLIC ACT NO. 7279, OTHERWISE,
KNOWN AS THE “URBAN DEVELOPMENT AND HOUSING ACT OF 1992”

Be it enacted by the Senate auc House of Representatives of the Pbilippines in Congress assembled:

SECTION 1, Short Title—This Act shall be known as the “On-site, In-Cit, Near-City
Resettlement Act of 2014.”

SECTION 2. Declaration of Policies.—Pursuant to the clear and exptess declaration in
Sections 9 and 10, Article XIII of the 1987 Philippine Constitution and in Article 11 of the
y declared the policy of the

International Covenant on Exconomic, Social and Cultural Rights, it is het
State to ensure that safe, affordable, and decent permanent housing solutions is afforded to

‘The State shall ensure that the relocation of ISFs shall be on-site,

informal settler families (ISF*

in-city, and near-city, and in accordance with the People’s Plan which gives primacy to the

preference of ISFs in the implementation of their resettlement.

Genetal Comment 4 of the United Nations’ Committee on Economic, Social and Cultural Rights
likewise emphasizes a number of factors which contribute to the concept of “adequacy” in

relation to the right to housing. This includes the availability of services, materials, facilities and


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infrastructure, accessibility, and location, It is therefore a policy of the State to ensure that

housing beneficiaties have sustainable access to natural and common resources, safe drinking

water, heating and lighting, sanitation and washing facilities, site drainage and emergency

services. Housing beneficiaries should as well be ensured access to employment options, health-

care services, schools, child-care centers and other social facilities.

SECTION 3. Section 3 of Republic Act No. 7279 otherwise known as the “Urhan Development

and Housing Act of 1992" is hereby amended to read as follows

“Section 3. Definition of terms —For purposes of this Act:

() ‘Adequate and genuine consultation’ refers co the standard of consultation as
described in the Department of Interior and Local Government's Memorandum
Circular No. 2011-182, which adopts Commission on Human Rights’ CHR(I

No. A2011-003, which states:

#9, Adequate consultation with affected resident requires the

following:

a. Effective dissemination of televant information and

documen:s including but nor limited to land records, housing

budgets, the proposed_project, alternative housing options,

comprehensive resettlement plants, ete.

b, Reasonable time for the public to review, comment

object to the proposed plan or project;

Provisions of legal, technical, and other advice to

affected persons about their tights and options by the
wernment and/or non-government organizations;

d. Public_hearing(s) that provide(s) affected persons and

heir_advocates c d ze 0

canes alter Is p articulate
their demands and develoy bi m

¢. Incase no agreement is reached _on the proposals of
concerned parties, an independent body having constitutional


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authority, such as a court of law, should mediate, arbitrate or

adjudicate as may be appropriate.”

() ‘Affordable cos? refers to the most reasonable price of land and shelter
based on the needs and financial capability of program beneficiaries and

appropriate financing schemes.

(© ‘Areas jor priority development refers to those areas declared as such under

existing statutes and pertinent executive issuances.

() —‘Blighted land? refers to the areas where the structures are dilapidated,

obsolete and unsanitary, tending to depreciate the value of the land and prevent

normal development and use of the area.

(© ‘Consultation’ refers to the constitutionally mandated process whereby the
public, on their own or through the people’s organizations, is provided an
opportunity to be heard and to participate in the decision-making process on
matters involving the protection and promotion of its legitimate collective
interest, which shall include appropriate documentation and feedback

mechanisms.

(@ ‘Idle Jand? refers to non-agricultural lands in urban and urbanized ateas on
which no improvements, as herein defined, have been made by the owner, as

cettified by the city, municipal or provincial assessor.


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h) ‘Improvements eefers to all types of buildings and residential units, walls,
fences, structures or constructions of all kinds of a fixed character or which are
adhered to the soil but shall not include trees, plants and growing fruits, and
other fixtures that are mere superimpositions on the land, and the value of

ssed value of

improvements shall not be less than fifty percent (50%) of the a

the property

@ — Insity’ refers wo a relocation site within the jurisdiction of the city where
the affected informal settler families are living.

@)— Lrformal setoments refers to (1) a residential area_where a_group_o
housing units has been « cred on Ia c| ce! s have no Ik

claim, or which they occupy illegally, or (2) unplanned settlements and_areas
where housing is_not_in_compliance with current planning a ing

() ——YJoint ventur? refers to the commitment or agreement by two (2) oF more

persons to carry out a specific or single business enterprise for their mutual
benefit, for which purpose they combine their funds, land resources, facilities

and services.

(mm) ‘Land assembly or consolidation’ refers to the acquisition of lots of varying

ownership through purchase ot expropriation of the purpose of planned and

rational development and socialized housing programs without individual

property boundary restrictions,

(2) ‘Land banking refers to the acquisition of land at values based on existing
use in advance of actual need to promote planned development and socialized

housing programs


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(©) ‘Land swapping refers to the process of land acquisition by exchanging
land for another piece of land of equal value, or for shares of stock in a
government or quasi-government corporation whose book value is of equal value
to the land being exchanged, for the purpose of planned and rational
development and provision for socialized housing where land values are
determined based on land classification, market value and assessed value taken
from existing tax declaration: Provided, That more valuable lands owned by
private persons may be exchanged with less valuable lands to carry out the

objectives of this Act.

(p) ‘Land use plan’ refers to the rational approach of allocating available
resources as equitably as possible among competing user groups and for different

plan of the area and the Program under this Act.

ilies

(©) ‘Now-government organization or ‘NGO" refer e y

n jo c d

established primarily for services such as assisting citizens _or people’
a ; - 7 " a

‘shall include foundations created for the same purpose or purposes.

(8) ‘On-site development refers to the process of upgrading and rehabilitation of
blighted slum urban areas with a view of minimizing displacement of dwellers in

said areas, and with provisions for basic services as provided for in Section 21

hereof.

© ‘Offeity and offsite refers 10 a ion si r yutside and non-
adjacent to the city where the affected is |_scttler families have their
settlements.


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(u) ‘People’s Plans’ refers to the plans formed by people’s organizations, with
‘or without the support of non-governmental organization. A People’s Plan is a

community development plan, which went through a process of consultation

vith, and endorsement by, the beneficiaries. It contains a site development plan

and may include, among others, non-physical development such as livelihood,

a evelopment, and cay building trainin,

(v) ‘People’s organization’ or ‘PO” refers to ndent community _o1
sector-based_o1 jon or ass stablished_to_prot vance
ommo! rerest

(w) ‘Professional squatter? refers 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 also apply to persons who have previously

vernment but who sold,

been awarded homelots or housing units by the Gi
leased or transferred the same to 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.

(8)  ‘Resettment areas refers to areas identified by the appropriate national
agency or by the local government unit with respect to areas within its
jurisdiction, which shall be used for the relocation of the underprivileged and

homeless citizens.

(\) ‘Security of tenur’ refers to the degree of protection afforded to qualified
Program beneficiaries against infringement or unjust, reasonable and arbitrary
eviction or disposition, by virtue of the right of ownership, lease agreement,

usufruct and other contractual arrangements.

(2) ‘Slum improvement and resettlement progran’ ox ‘SIR’ refers to the program of
the National Housing Authority of upgrading and improving blighted squatter
areas outside of Metro Manila pursuant to existing statutes and pertinent

executive issuances.

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(aa) ‘Small property owners refers to those whose only real property consists of
residential lands not existing three hundred square meters (300 sqm) in highly

urbanized cities and eight hundred square meters (800 sqm) in other urban areas.

(bb)
houses and lots or homelots, and medium rise buildings only undertaken by the

ocialized housing refers to housing programs and projects covering

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 this Act.

(cc) ‘Sonia! preparation’ refers to the process _of _ establishing social,
organizational, and_institutional_norms and_mechanisms. Such_notms_and
mechanisms will (1) enable the settlers to cope with changes, and (2)

ip with cor d stakeholde enc settles
not only to work among themselves for the purpose of drawing up and
a i ci ins eset el r ut ive)
in us resettles jee undertakes
beh: s_resolvin; ive act blem: nm y bes
0 with government ie

(da) ‘Squattng syndicate? refers to groups of persons engaged in the business of

squatter housing for profit or gain

(ce) Underprivileged and homeless citizen’ refers to the beneficiaries of this Act
and 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 and who do not
‘own housing facilities. This shall include those who live in makeshift dwelling

units and do not enjoy security of tenure.

(€ ‘Unregistered or abandoned land? refers to lands in urban and urbanizable

areas which are not registered with the Register of Deeds, or with the city or


1 municipal assessor's office concerned, or which are uninhabited by the owner

2 and have not been developed or devoted for any useful purpose, or appears
3 unutilized for a period of three (3) consecutive years immediately prior to the
4 issuance and receipt of publication of notice of acquisition by the Government
5 as provided under this Act. It does not include land which has been abandoned
6 by reason of force majeure or any other fortuitous event: Provided, ‘That prior to
7 such event, such land was previously used for some useful or economic purpose.
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9 (ge) “Urban areas refers to all cities regardless of their population density and
10 to municipalities with a population density of at least five hundred (500) persons
i per square kilometers.
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13 (hh) ‘Urbanizable areas refers to sites and lands which, considering present
14 characteristics and prevailing conditions, display marked and great potential of
15 becoming urban areas within the period of five (8) years; and
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17 (i) “Zonal improvement program? ox ‘ZIP refers to the program of the National
18 Housing Authority of upgrading and improving blighted squatters areas within
19 the cities and municipalities of Metro Manila pursuant to existing statutes and
20 ___ pertinent executive issuances.”
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22 SECTION 4. Section 26 of Republic Act No. 7279 otherwise known as the “Urban Development
23 and Housing Act of 1992” is hereby amended to read as follows:

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25 “Section 26. Urban renewal and resettlement. — Phis-Urban renewal and resettlement
26 shall include the rehabilitation and development of blighted and slum areas and
27 the resettlement of Program beneficiaries in accordance with the provisions of
28 this Act. On-site development shall be implemented wheneverpossibleafter
29 adequate and genuine consultation with che affected informal settler families, a
30 should be in accordance with the resulting People’s Plans, in order to ensure
31 minimum movement of occupants of blighted lands and slum areas.

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33 The in-city resettlement of the beneficiaries of the Program from their existing
34 places of occupancy shall be undertaken only when on-site development is not


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feasible due to causes for eviction or demolition as provided in Section 28 of this
Act, and only after compliance with the procedures laid down in Seetion 28-0f

thischet the same section, in_accordance with the preference of the affected

informal settler families. Should in-city resettlement be impossible, near-city
resettlement sites_shall_be con: ff-site resettlements shall_only be
resorted to when ly requested by the affected informal settler families

themselves, and_must satisfy chat the requirements of ade

consultation prior to relocation.”

“Section 26 Se People’s Plans.
familics, with the assistance of civil socicty organizations and government

Presid z J

(@) Ensure safe, affordable, decent and humane conditions of relocation;
(b) Provide adequate social preparation: and
(© Prevent forced eviction.

Provided, ‘That primary considera shall_be given to the housing financial
scheme suggested in the People’s Prove ‘That the implementation

of housing solution shall be subject to checking. validation and acceptance by the
affected informal settler families.”

SECTION 5. There shall be incorporated a new provision before Section 27 of Republic Act
No. 7279 otherwise known as the “Urban Development and Housing Act of 1992" to read as follows:

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SECTION 6. Implementing rules and regulations —Vhe principles, policies and provisions

of this Ac

all be incorporated in the National Shelter Program Implementation, as provided in
Section 4 of Republic Act No. 7835 otherwise known as the “Comprehensive and Integrated Shelter

Financing Act of 1994.”

The Housing and Urban Development Coordinating Council, after consultation with concerned
government agencies, non-governmental organizations, people’s organizations, representatives
from the private sector, and informal settler families, shall promulgate a new set of implementing
rules and regulations within sixty (60) days from the effectivity of this Act. Such implementing.

and regulations shall be consistent with the provisions of this Act, particularly with the

ru

amendments, parameters and standards introduced to Section 26 and by Section 26-

Republic Act No. 7270, otherwise known as the “Urban Development and Housing Act of 199.

shall include the following

(a) A People’s Plan template to guide informal settler families in the development of their own
People’s Plan: Provided, ‘That such template shall be a complete pr forma People’s Plan:
Pronided, bowever, That such a template shall be used to benchmark the minimum standards in

a People’s Plan.

(b) A guide to effective implementation of People’s Plan, including details on the necessity of

the issuance of internal memoranda by concerned agencies

SECTION 7, Separabitity clause-—If, for any reason, any part, section or provision of this
Act is held invalid or unconstitutional, the remaining provisions not affected thereby shall

continue to be in full force and effect.

SECTION 8. Repealing clause-—The Urban Development and Housing Act of 1992 (R.A. NO

7279) is hereby amended accordingly

Alll laws, decrees, executive orders, proclamations, mules and regulations, and other issuances, or
part or parts thereof, including parts of the Comprehensive and Integrated Shelter Pinancing Act of 1994
(R.A. No. 7835), which are inconsis

ent with the provisions of this Act are hereby repealed,

amended or modified accordingly.

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SECTION 9. Effectivity clause—This Act shall take effect fifteen (15) days after the
completion of its publication in the Official Gazette or in at least evo (2) newspapers of general

circulation,

Approved,