Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
First Regular Session

1484

HOUSE BILL NO.

Introduced by HONORABLE LANI MERCADO- REVILLA

EXPLANATORY NOTE

The Constitution, Article XUIL, Section 9 states:
IC. 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 urban centers and
resettlement areas, It shall also promote adequate employment opportunities to
such citizens. In the implementation of such program the State shall respect the
rights of small property owners.”

When R.A. No. 7279 otherwise known as the “Urban Development and Housing Act of
1992” was enacted into law, many underprivileged and homeless Filipinos in urban areas thought
they can acquire decent housing at affordable cost. However, the demand for housing continues
to grow. According to a 2008 United Nations Committee on Economie, Social and Cultural
Rights study, about “16.5 million Filipinos, roughly 30 percent of the urban population,
continues to live in informal settlements and slums, sometimes built on riverbanks, railroad
tracks and other high-risk areas, with no or limited basic infrastructures and services, without
legal security of tenure and under constant threat of eviction.”

In Metro Manila alone, an estimated 544,609 families live in informal settlements. Of
these, around 54,000 families live in danger areas.

This bill seeks to address the housing shortage by including the owners and developers of
condominium projects in the production of socialized housing projects by requiring them to
allocate 20 percent of the total condominium project cost for socialized housing. It also mandates
owners and developers of subdivision projects to set aside 20 percent of the total subdivision
project cost for socialized housing instead of allowing them another option, which is to devote 20
percent of the total subdivision area for socialized housing. In so doing, owners and developers
of condominium projects will contribute its share in the development of counterpart socialized
housing projects in urban areas as they continue to reap huge profits from their continuous
production of condominium projects in urban areas where there is a huge demand for housing
and employment, Further, it will make it easier for owners and developers to comply with the
law by encouraging joint ventures not only with the National Housing Authority and the Home
Guaranty Corporation but also between and among the private developers. Lastly, it will be
easier for government agencies to monitor the compliance of owners and developers in
producing socialized housing projects in urban areas.

Hence, approval of this bill is earnestly sought.
REP(VANI MERCADO-REVILLA

2" District, Cavite



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
First Regular Session

:BILLNo.__1484

HC

Introduced by HONORABLE LANI MERCADO- REVILLA

AN ACT
STRENGTHENING THE BALANCED HOUSING DEVELOPMENT PROGRAM
AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 7279, ENTITLED: “AN AC
TO PROVIDE FOR A COMPREHENSIVE AND CONTINUING URBAN
DEVELOPMENT AND HOUSING PROGRAM, ESTABLISH THE MECHANISM FOR
ITS IMPLEMENTATION AND FOR OTHER PURPOSES”

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

“TION 1. Short Title. — This Act shall be known as the “Balanced Housing Development
Program Amendment of 2013”.

SEC. 2. Amendatory Prov
Republic Act No, 7279, entitled:
Development and Housing Program, F
Other Purposes”, are hereby amended!

ns. — For purposes of this Act, the following provisions of
‘An Act to Provide for a Comprehensive and Continuing Urban
ablish the Mechanism for its Implementation, and for

(a) Section 18 of Republic Act No, 7279 is hereby amended to read as follo

>. 18, Balanced Housing Development. ~The Program shall
include a system to be specified in the Framework plan whereby
OWNERS AND/OR developers of proposed subdivision AND
‘ONDOMINIUM projects shall be required to develop an area for
zed housing equivalent to at least twenty percent (20%) of the
total subdivision OR CONDOMINIUM area or total subdivision OR
CONDOMINIUM project cost, at the option of the developer, within
the same city or municipality, whenever feasible, and in accordance with
the standards set by the Housing and Land Use Regulatory Board and
other existing laws[.J: PROVIDED, THAT OWNERS AND/OR
DEVELOPERS OF PROPOSED SOCIALIZED HOUSING
SUBDIVISION PROJECTS AND OWNERS AND/OR
DEVELOPERS OF PROPOSED CONDOMINIUM PROJECTS
TO BE SOLD AT SOCIALIZED HOUSING PRICES SHALL BE
EXEMPT THEREFROM. The balanced housing development as
herein required may also be complied with by the OWNERS AND/OR
developers concerned in any of the following manner:

“(a) Development of new settlement:

“(b) Slum upgrading or renewal of areas for priority development
either through zonal improvement programs or slum improvement and
resettlement programs:

“(c) Joint-venture projects FOR SOCIALIZED HOUSING



with either the local government units or any of the housing agencies(;]
or WITH ANOTHER PRIVATE DEVELOPER: PROVIDED,
THAT, THE OWNER AND/OR DEVELOPER OF THE MAIN
SUBDIVISION OR CONDOMINIUM PROJECT SHALL BE
SOLIDARILY LIABLE WITH THE OWNER AND/OR
DEVELOPER OF THE SOCIALIZED HOUSING PROJECT FOR
THE DEVELOPMENT OF THE LATTER, IRRESPECTIVE OF
THE PROVISIONS OF THEIR JOINT VENTURE AGREEMENT;
“(@) Participation in the community mortgage program|.J,
EITHER AS FINANCIER OR DEVELOPER;
E) INVESTMENT IN LONG-TERM RI
HOUSING BONDS; OR
“(K) DEVELOPMENT O)
WITHIN THE PROJECT, WHI R FEASIBLE, OR WITHIN
THE CITY OR MUNICIPALITY, WHEREVER FEASIBLE, IN
ACCORDANCE WITH SECTION 21 HEREOF.

ETTLEMENT

UCATION FACILITIES

“NO OTHER FORM OF COMPLIANCE TO THIS
SECTION MAY BE PRESCRIBED EXCEPT THROUGH THE
ENACTMENT OF A SUBSEQUENT LAW.

“FURTHERMORE, NO SUBDIVISION PLAN SHALL BE
APPROVED BY ANY LOCAL GOVERNMENT UNIT OR
GOVERNMENT AGENCY UNLESS THE SAME IS
ACCOMPANIED BY A WRITTEN UNDERTAKING, MADE
UNDER OATH, BY THE OWNER AND/OR DEVELOPER,
SETTING FORTH IN DETAIL THE MANNER IN WHICH
COMPLIANCE WITH THIS SECTION IS PROPOSED.”

(b) Section 21 of Republic Act No. 7279 is hereby amended to read as follows:

“SEC. 21. Basic Services. — Socialized housing or resettlement
areas shall be provided by the local government unit or the National
Housing Authority in cooperation with the private OWNERS AND/OR
developers and concemed agencies with the following basic services and
facilities:

“(a) Potable water;

“(b) Power and electricity and an adequate power distribution
system;

““(c) Sewerage facilities and an efficient and adequate solid waste
disposal system; and

“(d) Access to primary roads and transportation facilities.

‘The provision of other basic services and facilities such as
health, education, communications, security, recreation, relief and
welfare shall be planned and shall be given priority for implementation
by the local government unit and concerned agencies in cooperation
with the private sector and the beneficiaries themselves|.]: PROVIDED,
THAT THE PROVISION OF EDUCATION FACILITIES BY AN
OWNER AND/OR A DEVELOPER IN SOCIALIZED HOUSING
AREAS PURSUANT TO SECTION 18(F) HEREOF SHALL BE
ACCORDED A HIGH PRIORITY.

“The local government unit, in coordination with the concemed
national agencies, shall ensure that these basic services are provided at
the most cost-efficient rates, and shall set a mechanism to coordinate
operationally the thrusts, objectives and activities of other government
agencies concerned with providing basic services to housing projects.”


(c) Section 45 of Republic Act No. 7279 is hereby amended to read as follows:

», 45, Penalty 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
(P5,000) but not more than One hundred thousand pesos (P 100,000), or
both, at the discretion of the court: PROVIDED, THAT, ANY PERSON
WHO VIOLATES THE PROVISION OF SECTION 18 HEREOF
SHALL BE IMPOSED A PENALTY OF NOT MORE THAN SIX (6)
YEARS OF IMPRISONMENT OR A FINE OF NOT LESS THAN
FIVE HUNDRED THOUSAND P! IS (P500,000) BUT NOT
MORE THAN TEN MILLION PESOS (P10,000,000), OR BOTH,
AT THE DISCRETION OF THE COURT FOR THE FIRST
OFFENSE AND NCELLATION OF LIC 2 TO DO
BUSINESS FOR THE SECOND OFFENSE: Provided, FU!
‘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. 3. Implementing Rules and Regulations. — Within sixty (60) days from the effectivity of
this Act, the Housing and Land Use Regulatory Board shall promulgate a new set of
implementing rules and regulations for the amended Sections 18, 21 and 45 of Republic Act No.
7279, consistent with the parameters and standards set forth in said sections, Nongovernment
organizations and people’s organizations involved in housing rights and urban poor advocacy.
well as the private sector, shall be consulted in the process of drafting these implementing rule:
and regulations.

for any reason, any provision of this Act is declared invalid or
ing provisions not affected thereby shall continue to be in force and

unconstitutional, the remai
effect,

5. Repealing Clause. — 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. 6. Effectivity Clause. ~ This Act shall take effect fifteen (15) days after the completion of
its publication in the Official Gazette or in at least two (2) newspapers of general circulation.

Approved,