HOUSE IF REPRESENTATIVE:

Republic of the Philippines RECEIVED |
HOUSE OF REPRESENTATIVES 30 WN 201g \
4 Quezon City DATE:

i TIME: 01
SEVENTEENTH (17") CONGRESS si a
a ; Ys
First Regular Session |
HOUSE BILLNo,_ 449 REGISTRATION UNIT |

BILLS AND INDEX SERVICE

Introduced by REP. JOSE CHRISTOPHER Y. BELMONTE

PLANATORY NOTE,

“An Act Creating the Department of Housing, Planning and Urban
Development, Defining its Powers and Functions and Streamlining the Government Housing
Program,” was first filed in the 8th Congress by Rep, Amado Bagatsing. Since then, it has
been consecutively re-filed in Congress. In the 16th Congress, the same bill was refiled by
this representation, and six (6) other representatives. It was passed in the 3rd Reading, and
was transmitted to the Senate for the appropriate action.

After extensive committee deliberations, the seven (7) separate proposed measures,
including this representation’s House Bill No. 587, namely: (a) House Bill No, 330 by
Representative Rodolfo G. Biazon; (b) House Bill No. 1084 by Representative Winston
Castelo; (c) House Bill No. 1166 by Representative Gloria Macapagal-Arroyo; (d) House Bill
No. 1551 by Representative Felix William B. Fuentabella; (¢) House Bill No. 4207 by
Representative Silvestre “Bebot” Bello: and ({) House Bill No. 4615 by Representative
Josephine Sato, were eventually consolidated and substituted by House Bill No. 6194, which
is the version being refiled by this representation,

The bill aims, among others, to consolidate, rationalize, and coordinate the functions
and powers of the National Home Mortgage Finance Corporation (NHMFC), Home Guaranty
Corporation (HGC), Home Development Mutual Fund (HDMF), National Housing Authority
(NHA), and Housing and Land Use Regulatory Board (HLURB)

The bill will also be a step towards providing decent and affordable housing to every
Filipino family the soonest possible time, and in the least cumbersome manner, which is in
line with the Urban Land Reform and Housing provision under Section 9, Article XIII on
Social Justice and Human Rights of the 1987 Constitution, which commands that:

“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 arcas. 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.

The key provisions of the bill is the creation of a new department to be called “The


Department of Housing, Planning and Urban Development”, which shall act as the primary
national government entity responsible for the management and implementation of the
government's housing and urban development program. The Department shall be the sole and
main planning and policy-making, regulatory, program coordination, and performance
monitoring entity for all housing and urban development concerns, primarily focusing on the
access to and affordability of decent housing and basic services, pursuant to the afore-quoted
Constitutional mandate.

For these reasons, the approval of the proposed bill is sincerely requested,



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH (17") CONGRESS
First Regular Session

443°

HOUSE BILL NO,,

Introduced by Repres

ntative Jose Christopher Y, Belmonte

AN ACT
TING THE DEPARTMENT OF HOUSING, PLANNING AND URBAN
“LOPMENT, FINING ITS MANDATES, POWERS AND FUNCTIONS,
PROVIDING THE ‘OR AND FOR OTHER PURPOSE!

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

CHAPTER I
TITLE AND DECLARATION OF POLICY

SECTION 1. Short Title. - This Act sI

and Urban Development Act”.

all be known as the “Department of Housing

SEC 2. Declaration of Policy. - The State shall, by law and for the common good,

undertake, in cooperation with the private sector, a continuing program of housing and urban

development which shall make available at affordable cost, decent housing and basic services

to under-privileged and homeless citizens in urban centers and resettlement areas. It shall also
promote adequate employment opportunities to such citizens. In the implementation of the
program, the State shall respect the rights of small property owners.

The State shall pursue the realization of a modern, humane, economically-viable, and

in towns and

environmentally-sustainabie society where the urbanization process is manif
cities being centers of productive economic activity and is led by market forces; where urban.

areas have affordable housing, sustainable physical and social infrastructure and services


1
2
3
4
}

6

cd

8

»
10
11
12
13
14
a5)
16
17
18
19
20
21
22
23
24
25
26
a7
28
29
30
31
32
33

35

facilitated under a democratic and decentralized system of governance; and where urban
areas provide the opportunities for an improved quality of life and the eradication of poverty.
‘The State shall ensure that poor dwellers in urban or rural areas shall not be evicted
nor their dwelling demolished, except in accordance with law.
In addition, the State shall encourage on-site development in the implementation of
housing programs and shall promote the creation of new settlements and development of

sustainable urban renewal programs.

CHAPTER IL
DEFINITION OF TERMS,

SEC. 3. Definition of Terms, - As used in this Act:

a) Attachment refers to the lateral relationship between a department and the attached
agency or corporation for purposes of policy and program coordination, and as defined in
the Administrative Code

b) Housing refers to a multi-dimensional concept relating to the process of residing and the
objects of dwelling whose main attributes are location relative to access to livelihood,
tenure arrangements, cost and physical structure, as well as their environment. Housing is,
likewise a physical structure as well as a social structure, functioning at different spatial

scales from homes, neighborhoods, communities, municipaliti

, cities, provinces, and
regions, It is also a sector of the economy, an important category of land use in both
urban and rural areas, especially in cities, and is an important factor in the overall
dynamics of the urban system,

¢) Informal Settler Families (ISFs) refer to households living in:

1) alot without consent of the property owner;

2) danger areas such as esteros, railroad tracks, garbage dumps, riverbanks, shorelines,
and waterways;
3) areas for government infrastructure projects;
4) protected/forest areas (except for indigenous people);
5) areas for priority development (APD) as declared in PD 1967 series 1980, if
applicable; and
6) other government/public lands or facilities not intended for habitation,
d) Urban Development refers to the process of occupation and use of land or space for such
activities as residential, industrial, commercial, and the like or their combinations,

necessary to carry out the functions of urban living. It entails the building or rebuilding of


war Ane WHE

10

12
13
4
15
16
17
18
19
20
21
22

31
32
33.
34

more or less permanent structures over land that is often withdrawn or converted from its

original use, resulting in the creation of a built environment.

CHAPTER III
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

SEC. 4. Creation and Mandate of the Department of Housing and Urban Development. -
There is hereby created the Department of the Housing and Urban Development, hereinafter
referred to as the Department, through the consolidation of the Housing and Urban
Development Coordinating Council (HUDCC) and the Housing and Land Use Regulatory
Board (HLURB). ‘The Department shall act as the primary national government entity
responsible for the management of housing and urban development. It shall be the sole and
main planning and policy-making, regulatory, program coordination, and performance
monitoring entity for all housing and urban development concerns, primarily focusing on the

access to and the affordability of basic human needs,

C. 5. Powers and Functions. - The Department shall

4) formulate the national and urban development and housing policy and strategy that is
consistent with the Philippine Development Plan to promote social and economic welfare,
in coordination and consultation with the stakeholders, local government units (LGUs),
and other government agencies:

b) exercise initiative and assume a lead role in coordinating, supervising, and integrating all

government activities relative to housing and urban development;

©) formulate housing finance policies to promote the establishment of a self-sustaining

housing fin:

e system;
d) develop and maintain a housing database that shall include a shelter and urban

development management information system;

e) develop mechanisms and programs that will initiate and promote the establishment of
new settlements and urban renewal programs;
f) oversee the fast-tracked development and management of proclaimed housing sites,

including the use of these land assets as resource mobilization strategy to raise alternative

funds in developing new town housing projects which shall serve as central relocation
sites for the affected informal settlers;
2) develop effective and efficient financing programs for housing beneficiaries and

developers;


3

6

10
11
12
13
14
15,
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33

h) ensure the Department’s participation in sustainable development, climate change

adaptation, and disaster risk reduction
i) enter into contracts, joint venture agreements, public-private partnerships, and
memoranda of agreement or understanding, either domestic or foreign, under such. terms

and conditions as the Department may deem proper and reasonable and subject to e

ing
laws;

j) discharge all responsibilities of government that may arise from treaties, agreements and

other commitments on housing and urban development to which government is a
signatory, including the determination of forms of assistance for housing and urban
development to be sourced through bilateral or multilateral loans or assistance programs;

k) receive, take, and hold by bequest, device, gifl, purchase or lease, either absolutely or in

trust for any of its purpos

from foreign and domestic sources, any asset, grant or

property, real or personal, subject to such limitations provided under existing laws and
regulations;
1) exercise oversight functions, coordinate, monitor and evaluate the policies and programs

of all it

tached agencies;
m) conduct continuing and comprehensive studies and research necessary for housing and
urban development;

ist LGUs

n) a n strengthening the role and building the capability of provinces, cities, and

municipalities as the primary entities for urban development and management;

6) monitor local government compliance with housing and urban development laws,

standards and guidelines, as well as on their judicious and fair application of local
housing and urban development ordinances;

p) support local government partnerships with communities, civil society organizations,
non-governmental organizations, and private groups in the implementation of urban
development and management;

q) develop and establish a sector performance monitoring and assessment mechanism to

monitor and independently report on the performance of national government agencies

and LGUs involved in the housing and urban development and ensure continuing
improvements in sector policy and strategy formulation;

1) declare an identified ‘area as an Urban Development, New Settlement Site or Renewal
Site and jointly with the concerned LGU, develop and implement sub-projects under a

Public-Private Partnership (PPP) arrangement;


Rw Ne

warn .|a

22
23
24
25
26

28
29
30
31
32
33.

s) advocate for and assist the LGUs in the establishment of a Special Housing Fund (SHF)
to be sourced from the proceeds of Real Property Tax (RPT) pegged at one per centum
(1%) of the assessed value of real property which shall be exclusively used for the new
settlement projects with housing and urban development new settlement projects and
renewal projects of the LGUs;

1) conduct the pre- and post-proclamation activities as orchestrator and facilitator of the

entire disposition process, including the stewardship of the Local Inter-Agency
Committees (LIACs) which are primarily tasked to oversee the implementation of
housing proclamation projects;

u) implement a single regulatory system that shall govern all activities relative to the

planning, production, marketing, and management of housing and urban development

project
vy) declare, upon petition of the homeowners association and after due notice and hearing, a
subdivision or condominium project as abandoned and grant the petitioner the authority
to take over, cause, oF initiate the development and completion of the project at the

of

expense of the owner or developer, jointly and severally: Provided, That, for purpo:
this Act, and where thie developer can no longer be located, the roads in the abandoned
subdivision project shall become public in character one (1) year after the declaration of

abandonment of the proje

W) encourage private sector participation in the housing industry;

x) promote and accredit the use of indigenous materials and technologies in housing
construction;

y) implement prototype projects in housing and urban development undertakings, with the
right to exercise the power of eminent domain, when necessary;

z) determine, fix and collect reasonable fees and charges necessary for the effective
implementation of all laws, rules and regulations enforced by the Department and impose
reasonable fines and penalties for violation thereof

aa) register, regulate and provide community development programs for Homeowners
Associations (HOAs) and Condominium Units Owners Association/Corporation
(CUOA/Cs) and other housing development associations;

bb) formulate and implement housing policies and programs for urban poor communities and

informal settler families (ISFs) that shall promote the social and economic welfare of

homeless families, particularly the poor and underprivileged;


Carn nanewne

10

12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31

33

cc) encourage deeper and active participation of a broader spectrum of citizenry through
housing cooperatives and civil society organizations as the avenue for the assessment and
recognition of their housing needs and, together with the local government units, serve as
the implementing agencies of their housing and urban development programs; and,

dd) perform other related functions as may be mandated by law.

SEC. 6. Composition. - The Department shall be composed of the Office of the
Secretary, the Offices directly supporting the Office of the Secretary, the Offices of the
Undersecretaries and their immediate staff, and its various bureaus and regional offices.

SEC. 7. The Secretary, - The Secretary shall
a) advise the President on matters under the jurisdiction of the Department;

b) establish policies and standards for the efficient and effec

e operations of the

Department in accordance with the programs of the government;
©) promulgate rules, regulations, and other issuances necessary in carrying out the
Department’s mandate, objectives, policies, plans, programs, and projects;

d) exercise control and supervision over all functions and personnel of the Department;

delegate authority for the performance of any substantive or administrative function to

subordinate officials of the Department;

f) call on other agencies and instrumentalities of the government and private entities for
cooperation and assistance to the Department in the performance of its functions; and

2) perform such other functions as may be provided by law or assigned by the President.

The Secretary shall be a voting member of the National Economic and Development
Authority (NEDA) Board and the governing Boards of the Social Security System (SSS), the
Government Service Insurance System (GSIS), the Climate Change Commission (CCC), the
National Disaster Risk Reduction Management Council (NDRMMC), and the Philippine
Reclamation Authority (PRA). The Secretary shall be a member of NEDA’s Committee on
Infrastructure (INFRACOM), Investment Coordinating Committee (ICC) and Social
Development Committee (SDC). The Secretary shall also be a member of the body
authorized to formulate, prescribe, or amend guidelines pursuant to Republic Act No. 6957 as
amended, otherwise known as the Build-Operate-Transfer (BOT) Law.

SEC. 8. The Undersecretaries. -Taking into account the requirements of the Department
and subject to the approval of the President, the Secretary shall be assisted by:

a) one (1) Undersecretary for the Bureau of Policy Development and Program Coordination,

Monitoring, and Evaluation;


eryvaneanne

11
12
13
14
is
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
St
32
33
34
35

b) one (1) Undersecretary for the Bureau of Environmental, Land Use and Urban Planning
and Development;
©) one (1) Undersecretary for the Bureau of Regulation of Housing and Real Estate
Development; and
4) one (1) Undersecretary for the Bureau of Homeowners, Homeowners Associations, and
Community Development.
They shall have the powers and funetions as provided for in Section 10, Chapter 2, Book
IV of the Administrative Code of 1987. The Secretary is further authorized to delineate and
assign the other functional areas of responsibility of the Undersecretaries.
SEC. 9. Qualifications and Appointment. - The Secretary and Undersecretaries shall be

citizens and residents of the Philippines, of good moral character, and of proven competence

and integrity. They shall all be appointed by the President. The Undersecretaries shall be
career officers.

SEC. 10. Departmental Bureaus and Regional Office

- The Department shall establish,

operate, and maintain the following Bureaus and other support offices:

a) Policy Development and Program Coordination, Monitoring, and Evaluation Bureau;
b) Environmental, Land Use and Urban Planning and Development Bureau;

©) Housing and Real Estate Development Bureau;

d) Community Development Bureau; and

e) Legal and Support Services.

There shall be a Regional Office in all administrative regions, headed by a Regional
Director.

In addition to the existing functions of the HUDCC and the HLURB, the Regional
Office shall perform such other functions as may be delegated by the Secretary.

SEC. 11. Staffing Pattern. The development of the Department's staffing pattern shall be
based on an assessment of the personnel requirements of the entire Department by the
Secretary and as approved by the Department of Budget and Management (DBM). The
remuneration structure of the positions and the staffing pattern shall strictly conform to the

Salary Standardization Law, as amended.
CHAPTER IV
HUMAN SETTLEMENTS ADJUDICATORY COMMISSION
SEC.
Commission (HSAC). The HLURB is hereby reconstituted and shall henceforth be known as

12. Reconstitwion of the HLURB as the Human Settlements Adjudicatory


COornueune

10

12
13
14
15
16
17
18
19
20
£38
22

24
25
26
27
28
29
30
Eu
Bz.

the Human Settlements Adjudicatory Commission, hereinafter referred to as the HSAC,

which shall operate as an independent Commission within the Department.

The HSAC is a quasi-judicial body with original and exclusive jurisdiction over
all issues and controversies arising from the interpretation and implementation of
Republic Act No. 7279, otherwise known as the Urban Development and Housing Act, all
amendments thereto, and its implementing rules and regulations (IRR).

SEC. 13. Transfer of Adjudicatory Function of the HLURB to the HSAC. - The
adjudicatory function of the HLURB is hereby transferred to the HSAC.

SEC. 14. Composition and Qualification of Members. « The HSAC shall be composed of
the Secretary and nine (9) full-time Commissioners: Provided, That the term of incumbent
Commissioners shall be respected: Provided, further, That the subsequent appointees of the
President shall be members of the Philippine Bar, of which three (3) Commissioners shall
have experience in urban development planning, sustainable development, climate change
adaptation, and disaster risk reduction; three (3) shall be nominees of the urban poor and

homeowner:

\ssociations; and three (3) shall come from the private sector.
The Commissioners must have been engaged in the practice of law for a period of at least
five (5) years prior to their appointment.
‘The Commissioners shall hold office for six (6) years or until they become incapacitated
to discharge the duties of their office, whichever comes earlier.
No person who has been convicted of a crime involving moral turpitude shall be
Member of the HSAC.

appointed at any time as
The most senior Commissioner shall be the Presiding Commissioner of the First Division
and the two (2) next senior Members shall be the Presiding Commissioners of the Second and
Third Divisions, respectively: Provided, That each Division that shall be composed of three
(3) members shall have one (1) member representing the urban poor communities or the
homeowners and homeowners associations.
For the purpose of this Act, precedence in seniority shall be determined on the order in
which the appointments were issued by the President,
SEC. 15. Exercise of Adjudicatory Function and Other Powers. - The HSAC, sitting én
bane and presided over by the Secretary, shall promulgate the rules and regulations
governing the hearing and Jisposition of cases before any of its Divisions and its Arbiters in

its Regional Offices, and shall formulate policies effecting its administration and operations.


11
12
13
4
15
16
17
18
19
20
ae
22
23
24

26
uh
28
29
30
31
32
33
34

The HSAC shall exercise its adjudicatory and all other powers, functions, and duties

through its Divisions. The Divisions of the HSAC shall have exclusive appellate jurisdicti

n
over cases decided by its Arbiters

‘The HSAC sitting en banc may, on temporary or emergency basis, allow cases within
the jurisdiction of any Division to be heard and decided by any other Division whose docket
allows the additional workload: Provided, That the transfer shall not expose litigants to

unnec

ry additional expense.
The H

‘AC sitting en bane may designate any Commissioner who shall exercise

administrative supervision over the HSAC and its Regional branches and all their personnel,

including the Arbiters.
The HSAC shall be as

isted by the Board Secretariat which shall perform such similar or
equivalent functions of the Board Secretary of the HLURB

SEC. 16. Decisions and Resolutions. - The concurrence of two (2) Commissioners of a
Division shall be necessary for the pronouncement of a judgment or resolution, Whenever the
required membership in a Division is not complete and the concurrence of two (2)

Commit

ioners to arrive at a judgment or resolution cannot be obtained, the most senior

Commissi vision such number of additional Commissioners

ner shall designate into the Di
from the other Divisions as may be necessary.

The conclusions of a Division on any case submitted to it for decision shall be reached
through consultation before the case is assigned to a Member for the writing of the decision.
It shall be mandatory for the Division to meet for purposes of the consultation ordained
herein. A certification to this effect, signed by the Presiding Commissioner of the Division,
shall be issued and a copy’ shall be attached to the record of the case and served upon the

parties.

SEC. 17. Compensation.- A Con jioner shall receive an annual salary of at least
equivalent to an Undersecretary.

The incumbent full time Commissioners of the present HLURB pursuant (© E.0. No. 648
series of 1981 “Reorganizing the Human Settlements Regulatory Commission” shall remain
in office unless they opt to avail of the retirement and separation benefits as provided for in
Sec. 33 of this Act, or are sooner removed for cause.

SEC. 18. Jurisdiction. - In addition to the existing jurisdiction of HLURB, the Arbiters
shall exercise original and exclusive jurisdiction over cases involving the following matters:
a) cases involving real estate properties, subdivisions, and condominiums:

1) squatting on subdivision lots and condominium units;


arene

18
19
20
(Al
22

24
25
26
27
28
29

31
32
33

2) cases arising from any violation of the mandatory requirements in the execution of
eviction or demolition involving underprivileged and homeless citizens under Section
28 on Eviction and Demolition of Republic Act No. 7279, otherwise known as the

Urban Development Housing Act of 1992;

disputes involving buyer financing agreements with any financing institution for
condominium or subdivision projects:

4) easements of right of way in subdivisions;

5) intra-corporate disputes involving condominium corporations;
6) disputes between landowners and developers, and between banks/financing
institutions and developers whenever the interest of buyers is involved; and,

7) disputes involving the enforcement of Comprehensive Land Use Plans (CLUPs),

b) violations of administrative rules and regulations implementing Section 7 on Inventory of
Lands, Section 8 on Identification of Sites for Socialized Housing, Section 18 on
Balanced Housing Development, and Section 28 on Eviction and Demolition of R.A.
No.7279.

©) cases submitted by parties which shall be heard and decided within ninety (90) days:

(a) unsound and fraudulent real estate business practices;

(b) claims for refund against project owners, developers, dealers, brokers, or salesperson;

(c) specific performance of contractual and statutory obligation filed by buyers of
subdivision lots or house and lots or of condominium units against the project owner,

developer, dealer, broker or salesperson;

(d) cases for nullity of mortgage filed by the unit buyer against the developer as
mortgagor and the financial institution as mortgagee;

(e) cases filed by subdivision or condominium owners or developers against lot or unit
buyers relating to subdivision and condominium contracts but not limited to the

collection or unpaid amortizations;

(8) other related cases arising from contractual or statutory obligations of owners, dealers,
brokers, or salespersons toward lot or house and lot or unit buyers;

(g) intra and inter-corporate disputes between and among homeowners” associations.

The Secretary may assume jurisdiction over any complaint or case and decide the same or
certify such case for decision to the HSAC, when authorized by both Houses of Congress
through a resolution, if the controversy involves massive fraud or unsound business practices
of critical socio-economic or environmental considerations that may have serious potential

impact on the interests of the sector or the general welfare,


aAnwone,

eu

12
13
4
15
16
17
18
19
20
21

SEC. 19, Powers and Authorities of the HSAC. - In addition to the adjudicatory powers
given to HLURB, the HSAC shall:

a) issue writs and orders prohibiting demolitions, seizures, or closures of property including

temporary writs or orders restraining demolitions, seizures, and closures of property;
b) issue writs and orders to execute demolitions or seizures or closures of property in

accordance with its decision or judgment;

c) impose administrative fines or penalties or both for violation of R.A, No, 7279, as

amended, and other laws implemented by the HSAC, including pertinent rules and

regulations, orders, decisions, or rulings: Provided,That the HSAC may adjust such fines

not more than once every three (3) years; and,
) exercise such other powers as are implied, necessary, or incidental to carry out the
express powers granted to the HSAC or to achieve the objectives and purposes of this

Act, and other laws implemented by the HSAC.

SEC. 20. Institution of Criminal Prosecution, - The criminal prosecution of violations of
housing laws and regulations shall be instituted before the appropriate criminal courts.

SEC. 21. The Arbiters ~ Qualifications and Appointment. The existing HLURB Arbiters
shall be deemed qualified, Henceforth, additional Arbiters that shall be appointed must have

been a member of the Philippine Bar for at least three (3) years, with at least two (2) years of

experience in or exposure to the field of real estate and land use development ca:

The President, upon the recommendation of the Secretary, shall appoint Arbiters, as may
be necessary, for each administrative region, upon the recommendation of the HSAC en
bane.

The HSAC en bane shall have the power to assign the Arbiters to the Regional Offices.

SEC. 22. The Sheriff, The HSAC shall appoint a Sheriff or such number of Sheriff’ in its
Central and Regional branches. To be appointed as Sheriff, one must be a second grade Civil
Service eligible and must have completed at least two (2) years of college, The Sheriff shall
be responsible for the service and execution of all writs, summons, orders, and other
processes of the HSAC.

SEC. 23. Appeals. - Decisions, awards, or orders of the Arbiters shall be final and
executory unless appealed :o the HSAC within fifteen (15) calendar days from receipt of the
decisions, awards, or orde’s, ‘The appeal may be entertained only on any of the following
grounds:

a) if there is prima facie evidence of abuse of discretion on the part of the Arbiters in

rendering the questioned decision, award, or order;


9
10
11
12
13

19
20
21
22
Act
24
25
26
27
28
29
30
31
32
33
34

b) if the decision, order, or award was secured through fraud or coercion, including graft and
corruption;

©) if the appeal is made purely on questions of law; and

d) if serious errors in the findings of facts are raised, which errors would cause grave or
irreparable damage or injury to the appellant.
The decision of the HSAC upon any disputed matter may be brought to the Court of

Appeals on a question of law and facts by way of a petition for review. For this purpose, the

procedure on appeals from the regional trial court shall be followed as far as practicable and
consistent with the purpose of this Act. An appeal from a decision of the HSAC must be filed
within fifteen (15) calendar days from notice of judgment, award, or order sought to be
appealed, pursuant to Rule 43 of the Rules of Court, If the decision of the HSAC involves
only questions of law, the same shall be reviewed by the Supreme Court, No appeal bond
shall be required, No appeal shall act as a supersede as or a stay of the order of the HSAC,

unless the HSAC itself, or the Court of Appeals or the Supreme Court, shall so order.

EC. 24. Prohibition against Restraining Order of Injunction, - No lower court of the

Philippines shall have jurisdiction to issue any restraining order or writ of preliminary

injunction or permanent injunction against the HSAC or its Arbiters in any case, dispute, or

controversy arising from, necessary to, or in connection with the application, implementation,

enforcement, or interpretation of this Act and other pertinent laws on housing and on just and
humane evietion or demolition procedures,

EC. 25. Pending Cases, - All cas

s pending in regular courts arising from or in

connection with the implementation of pertinent laws on housing and on just and humane
eviction and demolition procedures, shall continue to be heard, tried, and decided to their

finality by such courts

CHAPTER V
ATTACHED AGENCIES
SEC. 26. Attached Agencies and Corporations. - The following agencies and
corporations are hereby attached to the Department for policy and program coordination,
monitoring and evaluation:
a) National Housing Authority (NHA):
b) Home Guaranty Corporation (HGC);
©) National Home Mortgage Finance Corporation (NHMFC);
d) Home Development Mutual Fund (HDMF); and


8

10
1
12
43
14

16

17
18
oe
20

21
22
23
24
25.
26
27
28
29
30
31
32
33
a4:
38:

e) Social Housing Finance Corporation (SHFC).

SEC. 27. Nature of Attachment. ~ Any provision of law, or the respective charters of the

abovementioned corporations and agencies to the contrary notwithstanding, the Secreta
shall, in a concurrent capacity, be the ex-officio Chairperson of the respective boards of the

NHA, HGC, NHMFC, HDMF, and SHFC.

The agencies shall continue to function according to existing laws and their respective
Charters. However, each of the heads of the attached agencies shall enter into a performance
contract annually with the Seeretary. Such contracts shall embody the national targets on
housing and urban development and shall include the over-all administration of the agency

The reorganization, merger, streamlining of functions, abolition, or privatization of any

attached GOCC shall be implemented with the concurrence of the Department Secretary
pursuant to R.A, No. 6656 entitled “An Act to Protect the Security of Tenure of Civil Service

Officers and Employees in the Implementation of Government Reorganization.

The appointment of the Board of Directors or Trustees of the attached GOCCs shall be in

accordance with R.A, No, 10149, otherwise known as the GOCC Governance Act of 2011.

CHAPTER VI
TRANSITORY PROVISIONS

SEC. 28. Transition Period. - All transfer of functions, assets, funds, personnel,
equipment, properties, and transactions in the affected national government agencies, and the
formulation and implementation of the internal organic structures, staffing patterns, operating,
systems, and revised budgets of the Department and the HSAC, shall be completed within six
(6) months from the effectivity of this Act, during which existing personne! shall continue to
assume their posts in holdover capacities until new appointments are issued

SEC. 29. Implementing Authority. - The Secretary is hereby authorized to undertake the

implementation of the provisions of this Act and implement the necessary organizational

changes within the specified six (6)-month transition period.
SEC. 30. Transfer of Functions, ~ The following functions are hereby transferred to the

Department as stipulated hereunder:

4) regulatory function of the HLURB, including the formulation, promulgation, and
enforcement of rules, standards, and guidelines;

b) HLURB's monitoring function, including the imposition of penalties for non-compliance
to ensure that LGUs will follow the planning guidelines and implement their
CLUPS/ZOs; and


3
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29

30
31
32
33

34

©) registration of incorporation of homeowners associations and condominium corporations
of the HLURB.
SEC. 31. Transfer of Assets. - The following dispositive actions shall be implemented
within six (6) months from the effectivity of this Act:
a) the transfer to the Department of the assets, equipment, funds, records, and pertinent
transactions of HUDCC and HLURB; and
b) the submission of the Department and the HSAC of a request to the DBM for the creation
of additional positions and the augmentation of their budget appropriations as may be
needed,
SEC. 32. Absorption of Employees of the Consolidated Agencies, - The present career
employees of HUDCC and HLURB shall enjoy security of tenure and shall be absorbed by
the Department, in accordance with its staffing pattern and selection process as prescribed

under R.A. No, 6656, unless they are separated from the

service by virtue of the
reorganization resulting from this Act, or opt and are qualified to retire from service
SEC. 3.

be separated from the service as a result of any reorganization or consolidation under the

Separation from the Service. - Unless absolutely required, no employee shall

provisions of this Act. Nonetheless, employees so separated or phased out from the service

shall, within one (1) month from their separation or phase out from the service, receive

separation benefits in accordance with existing laws.

In addition, those who desire and are qualified to retire shall be entitled to all benefits

provided under the existing retirement laws.
SEC. 34. Transfer of Rights and Obligations. The Department shall, by virtue of this

Act,be subrogated to all rights and assume all the liabilities of the HUDCC and all other

agencies of the government whose functions and powers have been transferred to it, and all
their pertinent funds, records, property, assets, equipment and such personnel, including
unexpended portions of their appropriations.

SEC. 35. Implementing Rules and Regulations. - The Secretary shall prepare and issue
the implementing rules and regulations (IRR) of the Department within ninety (90) days upon
the effectivity of this Act.

CHAPTER VII
FUNDING

SE

36. Funding. - The amount necessary for the initial implementation of the

provisions of this Act shall be charged against the current year’s appropriations of the


Swcervaneawne

18
19
20
21
22
23
24.

25

26
27
28
29
30
31

34

HUDCC and HLURB. Thereafter, such sums

s may be necessary for the continued

implementation of this Act shall be included in the annual General Appropriations Act.

CHAPTER VIIL
FINAL PROVISIONS
SEC. 37. Identification and Designation of Lands for Housing and Urban and Rural
Development. ~ For the purpose of designating lands for housing and urban and rural

elopment, the Department, the DENR, the DAR and the DA shall, within one hundred

de’
eighty (180) days from the effectivity of this Act, jointly identify agricultural lands which,
under R.A, No, 6657, otherwise known as the Comprehensive Agrarian Reform Law, and
other existing laws, rules and regulations are already exempted from conversion
requirements: Provided, That the list shall exclude lands that are declared as non-negotiable
or protected from conversion under existing laws and issuances and those lands covered
under R.A, No, 6657: Provided, further, That the designé

and rural development purposes shall neither prejudice the rights of qualified beneficiaries

ion of lands for housing and urban

under R.A. No, 6657, nor undermine the protected agricultural areas intended to ensure the
attainment of food security under R.A. No, 8435, otherwise known as the Agriculture and
Fisheries. Modernization ct of 1997 (AFMA) and other existing laws: Provided, further,
That in the case of lands exempted from conversion duly approved by the DAR and contested
by an affected individual or community beneficiaries, no horizontal or vertical development
by the individual or community beneficiary shall be allowed without prior clearance or
approval from the DAR or the DA, consistent with the terms of the approved order or
conversion: Provided, finaly, That all idle government lands in highly urbanized cities are
hereby prioritized for housing and urban development purposes.

SEC. 38. Creation of Social Housing One-Stop Processing Centers (SHOPCs) - The
Department shall establish SHOPCs

SHOPCs shall be responsible for the centralized processing and issuance of all required

in all administrative regions of the country. The

housing-related permits, clearances, and licenses in accordance with Executive Order No.
series of 2001 entitled “Prescribing Time Periods For Issuance Of Housing Related
Certifications, Clearances And Permits, And Imposing Sanctions For Failure To Observe
The Same”: Provided, That for the foregoing purpose, the respective ceilings for socialized,
Jow cost/economic and middle-income housing shall be jointly determined by the Department
and the NEDA: Provided, further, That at any time, but not more than once every two (2)

years, such ceilings may be reviewed or revised to conform to prevailing economic


eo

conditions. All agencies involved in the issuance of said permits, clearances and licenses
shall be represented in the SHOPC and shall assign to SHOPC personnel from regional
centers who shall be sufficiently authorized to process and issue the same

SEC. 39, Mandatory Review on the Implementation of this Act. - The Department shall
conduct a review on the implementation of this Act and shall submit to Congress a report on
its findings at the end of the second year from the date of the effectivity of this Act.

SEC. 40. Separability Clause. - If, for any reason or reasons, any portion or provision of
this Act shall be held unconstitutional or invalid, the remaining provisions not affected
thereby shall continue to be in full force and effect.

SEC. 41. Repealing Clause. - All laws, executive orders, proclamations, rules,
regulations and other issuances or parts thereof which are inconsistent with the provisions of
this Act are hereby repealed, amended or modified accordingly.

SE

iffectivity. - This Act shall take effect fifteen (15) days after its publication in

the Official Gazette or in a newspaper of general circulation

Approved,