Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. __________ 
Introduced by: 
HONORABLE KHYMER ADAN T. OLASO 
Representative, 1st District, Zamboanga City 
AN ACT STRENGTHENING THE NATIONAL HOUSING AUTHORITY, EXTENDING 
ITS CORPORATE TERM, AMENDING FOR THE PURPOSE PRESIDENTIAL 
DECREE NO. 757 
EXPLANATORY NOTE 
As societies develop, economies grow to be more complex. But when one strips away all 
of the niceties, and really get down to it, sustainability is simply long-term survival. Early 
economies were based on these simple survival essentials – oxygen, water, food, shelter and sleep.1 
Shelter is a necessity as this is an adjunct to the thermoregulatory process of the human 
body. When a person is exposed to the elements, water loss is increased. Cold temperatures and 
high winds can strip away valuable moisture as quickly as high temperatures can cause sweat-
related loss. A shelter should consist of a place to make fire to create heat as well as protection 
from the wind and rain. Without the ability to keep a constant temperature, a person runs the risk 
of hypothermia or heat stroke. Extreme temperature fluctuations can cause hallucinations and 
illogical behavior, which can cause a person to fail to take the proper steps to keep himself alive.2 
At first glance, it might seem unusual that a subject such as housing would constitute an 
issue of human right. However, a closer look at international and national laws, as well as at the 
significance of a secure place to live for human dignity, physical and mental health and overall 
quality of life, begins to reveal some of the human rights implications of housing. Adequate 
housing is universally viewed as one of the most basic human needs. 
With the adoption of the Universal Declaration of Human Rights in 1948, the right to 
adequate housing joined the body of international, universally-applicable and universally-accepted 
human rights law. Since that time, this right has been reaffirmed in a wide range of additional 
human rights instruments, each of which is relevant to distinct groups within society. No less than 
12 different texts adopted and proclaimed by the United Nations explicitly recognize the right to 
adequate housing.3 The International Covenant on Economic, Social and Cultural Rights has been 
ratified or acceded to by 108 States. This text contains perhaps the most significant foundation of 
the right to housing found in the entire body of legal principles which comprise international 
human rights law. Article 11.1 of the Covenant declares that:  
“The States Parties to the present Covenant recognize the right of everyone 
to an adequate standard of living for himself and his family, including adequate 
food, clothing and housing, and to the continuous improvement of living 
conditions. The States Parties will take appropriate steps to ensure the realization 
1 https://economicdemocracyadvocates.org/2017/08/11/five-basic-survival-needs-of-human-beings/ 
2 https://economicdemocracyadvocates.org/2017/08/11/five-basic-survival-needs-of-human-beings/ 
3 https://www.un.org/ruleoflaw/files/FactSheet21en.pdf 
July 25, 2022
8:00 am
2300


of this right, recognizing to this effect the essential importance of international co-
operation based on free consent.” 
In addition to these two sources, both the United Nations Declaration on Social Progress 
and Development (1969) and the United Nations Vancouver Declaration on Human Settlements 
(1976) recognize the rights of everyone to adequate housing.4 
Fully cognizant of housing as a basic human right even prior to the adoption of the 
Universal Declaration of Human Rights in 1948, the International Covenant on Economic, Social 
and Cultural Rights in 1966 and the International Covenant on Civil and Political Rights in 1966, 
the National Housing Authority (NHA) as it is now called today is the sole national agency 
mandated to engage in housing production for low income families in the Philippines. It traces its 
roots to the People’s Homesite Corporation (PHC), the first government housing agency 
established on 14 October 1938 and to the National Housing Commission (NHC) which was 
created seven years later, on 17 September 1945. These two agencies, the PHC and NHC, were 
eventually merged on 4 October 1947 into the People’s Homesite and Housing Corporation 
(PHHC).5 In the years that followed, six (6) more housing agencies were created to respond to 
separate and distinct shelter requirements, namely: the Presidential Assistant on Housing and 
Resettlement Agency (PAHRA); the Tondo Foreshore Development Authority (TFDA); the 
Central Institute for the Training and Relocation of Urban Squatters (CITRUS); the Presidential 
Committee for Housing and Urban Resettlement (PRECHUR); the Sapang Palay Development 
Committee (SPDC); the Inter-Agency task Force to Undertake the Relocation of Families in Barrio 
Nabacaan, Villanueva, Misamis Oriental.6 
Eventually, on 15 October 1975, the National Housing Authority was organized as a 
government-owned and controlled corporation, by virtue of Presidential Decree No. 757 dated 31 
July 1975. All other housing agencies were abolished by the said decree. The NHA took over and 
integrated the functions of the abolished agencies- the PHHC and the six (6) other housing 
agencies. The creation of the NHA is the second attempt of the government to integrate all housing 
efforts under a single agency, twenty-eight years after the merger under the PHHC.7 Three years 
later, the Ministry of Human Settlements (MHS) was created in 1978. The Ministry adopted the 
holistic approach to housing. The NHA was placed as an attached agency to the MHS.8 
On 26 March 1986, Executive Order NO. 10 was issued placing the NHA as well as the 
other agencies attached to the abolished MSH, under the administrative supervision of the office 
of the President. Subsequently, Executive Order No. 90 was issued on 17 December 1986, 
rationalizing the housing structure in the government along lines of specialization and 
concentration. EO 90 identified the key housing agencies to implement the National Shelter 
Program and defined their respective mandates. The NHA was mandated to be the sole government 
agency to engage in housing production. Under the said Executive Order, NHA was placed under 
the policy and program supervision of the Housing and Urban Development Coordinating Council 
(HUDCC), the umbrella agency for shelter charged with the main function of coordination the 
activities of various government housing agencies engaged in production, finance and regulation.9 
Executive Order No. 20 on 28 May 2001 reaffirmed mass housing as a centerpiece program 
in the poverty alleviation efforts of government. Said EO likewise reaffirmed HUDCC’s 
administrative supervision over the housing agencies including the NHA.10 On 14 February 2019, 
Republic Act (RA) 11201 was issued creating the Department of Human Settlement and Urban 
Development (DHSUD), under section 50 of said RA 11201 Executive Order (EO) 90 was released 
4 https://www.un.org/ruleoflaw/files/FactSheet21en.pdf 
5 https://nha.gov.ph/about/history/ 
6 Ibid. 
7 Ibid. 
8 Ibid. 
9 Ibid. 
10 Ibid. 


placing NHA and other attached agencies and corporation under the administrative supervision for 
purposes of policy and program coordination, monitoring and evaluation.”11 
Today, housing remains a perennial problem of the country. Its demand continues to 
increase due to the growing population and the frequent onslaught of natural disasters and 
calamities. The housing backlog is now recorded at 3.9 million. The housing gap would persist 
and hit 6.5 million by 2030 even if housing production would average 200,000 per year until 
2030. This is short of the housing sector’s commitment to construct at least 250,000 housing units 
every year to which NHA shares the construction of 50,000 units per year.12 
The NHA has implemented 35 resettlement projects in San Jose del Monte alone that 
benefitted more than 70,000 families from both formal and informal sectors, and under the Duterte 
Administration, the Authority has provided housing to more than 260,000 families. The projects 
are intended not only to address the increasing demand for housing but more importantly, to uplift 
the lives of the homeless Filipinos, saying, “what we build are not just houses, what we build is 
liveable and sustainable communities”.13 
It must be remembered that Article 2.1 of the International Covenant on Economic, Social 
and Cultural Rights is of central importance in determining what governments must do and what 
they should refrain from doing in the process leading to the society-wide enjoyment of the rights 
found in the Covenant including the right to a livable and decent housing. This article reads as 
follows:  
“Each State Party to the present Covenant undertakes to take steps, 
individually and through international assistance and co-operation, especially 
economic and technical, to the maximum of its available resources, with a view to 
achieving progressively the full realization of the rights recognized in the present 
Covenant by all appropriate means, including particularly the adoption of 
legislative measures.” 
Three phrases in this article are particularly important in understanding the obligations of 
governments to realize fully the rights recognized in the Covenant, including the right to adequate 
housing: (a) “undertakes to take steps . . . by all appropriate means”; (b) “to the maximum of 
its available resources”; and (c) “to achieve progressively”.14 
Anchored on these, NHA shall continue to function as a production and financing arm in 
housing and shall exercise all other functions based on its existing laws. However, this can only 
be possible if its corporate existence is allowed to continue by another law that will extended its 
corporate existence for another fifty years. 
It is in this light that this bill is being filed. Immediate passage of this bill is earnestly 
sought. 
KHYMER ADAN T. OLASO 
Representative 
1st  District, Zamboanga City 
11 https://nha.gov.ph/about/history/ 
12 https://nha.gov.ph/gm-escalada-seeks-congressional-support-for-budget-increase-of-the-housing-agencies/ 
13 Ibid. 
14 https://www.un.org/ruleoflaw/files/FactSheet21en.pdf 


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. __________ 
Introduced by: 
HONORABLE KHYMER ADAN T. OLASO 
Representative, 1st District, Zamboanga City 
AN ACT STRENGTHENING THE NATIONAL HOUSING AUTHORITY, EXTENDING 
ITS CORPORATE TERM, AMENDING FOR THE PURPOSE PRESIDENTIAL 
DECREE NO. 757 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled:  
SECTION 1. Title. - This Act shall be known as the “National Housing Authority Act.” 
SECTION 2. Declaration of Policy. – It is the policy of the State to ensure a continuing 
program of urban land reform and housing, which will make available at affordable cost, decent 
adequate housing and basic services particularly for underprivileged and homeless citizens, in 
order to alleviate poverty, to address the rising cost of living, and promote improved quality of life 
for all.  
The State, in partnership with the private sector, and its stakeholders shall also: 
(a)
Expand the people’s access to affordable, adequate, safe, and secure housing in
well-planned communities; 
(b)
Enable informal settler families (ISFs) as defined under Section 3(e) of Republic
Act (RA) No. 11201 otherwise known as the Department of Human Settlements and Urban 
Development Act, to live in resilient, vibrant, and connected urban communities;  
(c)
Promote inclusive and integrated housing that are culturally sensitive, responsive
to local context and special needs, and in accordance with appropriate standards and designs; 
(d)
Encourage and sustain investments in the housing and urban development sector
by, among others, promoting partnerships, improving market linkages, simplifying government 
procedures and facilitating access to finance;  
(e)
Improve affordability of housing projects;
(f)
Promote adaptability of housing development projects to climate change, including
nature-based solutions that integrate mechanisms for flood absorption and rainwater harvesting; 
(g)
Make land available and accessible for housing; and
(h)
Promote and support community-led housing through people’s planning and
participation. 
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SECTION 3. Statement of Objectives. - Toward this end, the State shall integrate all laws 
relating to the National Housing Authority to effectively achieve the following objectives:  
 
(a)  
Develop integrated, sustainable, safe, affordable and resilient communities, 
particularly for the underprivileged and homeless, as well as low-income households;  
 
(b)  
Implement innovative, alternative, and people-led solutions in addressing the 
housing needs of ISFs, the low-income families and the vulnerable sectors;  
 
(c)  
Generate income through the efficient utilization of assets to support the programs 
of the Authority;  
 
(d)  
Adopt viable land acquisition and management approaches; and  
 
(e)  
Enhance housing programs in consonance with current climate resiliency standards 
and policies, to fully promote stability, adaptability, and better socio-economic outcomes.  
 
SECTION 4. Extension of Corporate Term and Its Effect. – The corporate term of the 
government corporation known as the National Housing Authority, referred to in this Act as the 
“Authority”, created by virtue of Presidential Decree (PD) No. 757, is hereby extended for a period 
of Fifty (50) years, upon the approval of this Act.  
 
The Authority shall continue to perform its mandates, exercise its powers and functions, 
enjoy its rights and incentives, and assume its liabilities, as contained in PD 757, and as provided 
in this Act, unless expressly repealed herein.  
 
SECTION 5. Principal Office. – The Authority shall retain its principal office at the 
Authority’s Main Office on Elliptical Road, Diliman, Quezon City 1101, but may have such 
regional and district offices, agencies, or subsidiaries in other areas all over the country, as it may 
deem proper and necessary.  
 
SECTION 6. Powers and Functions of the Authority. The Authority, in line with its role 
as the primary national government agency engaged in direct housing production, and in pursuit 
of the foregoing policies and objectives, shall also exercise the following powers and functions:  
 
I.  
Housing Operations and Support Services  
 
(a)  
Develop and implement comprehensive and integrated housing programs in 
coordination with the appropriate government agencies:  
 
i. 
programs for the improvement of blighted urban areas;  
 
ii. 
direct housing production and disposition primarily for ISFs and the 
underprivileged and homeless;  
 
iii. 
relocation of families subject of court-ordered eviction;  
 
iv. 
housing programs for low-income and homeless government employees 
and uniformed personnel; and  
 
v.  
any other housing program or project for the underprivileged, underserved, 
homeless, as well as low income households that the Authority may deem 
proper and appropriate.  
 
(b)  
Prescribe guidelines and standards for the preservation, conservation and utilization 
of public lands identified for housing and resettlement;  


 
 
 
 
 
 
 
(c)  
Design and implement, in coordination with the concerned local and national 
government agencies, sustainable livelihood programs and, which are fully funded by the national 
government, responsive to the needs of NHA’s housing communities, and, whenever practicable, 
with the participation of civil society organizations and the private sector;  
 
(d)  
Develop and undertake other urban and rural development projects including basic 
community facilities, by itself or through joint ventures or other arrangements with public and 
private entities, including private developers, and in coordination with other government agencies;  
 
(e)  
Improve, redevelop, or revitalize completed but not yet turned-over housing 
projects of the Authority by constructing additional community structures or, whenever necessary, 
by demolishing previously erected structures similar in nature, subject to law and regulations;  
 
(f)  
Provide technical and other forms of assistance to local government units 
implementing housing programs, or to private developers undertaking low-cost housing projects, 
subject to the policies of the Authority;  
 
(g)  
Undertake financing of housing programs initiated by local government units or 
local communities and local housing cooperatives;  
 
(h)  
Extend housing assistance and shelter services to victims of calamities, natural or 
man-made, as declared by the President or any competent authority; for this purpose, the Authority 
is given sufficient leeway by the other government agencies to expedite the process;  
 
(i)  
Support national government agencies and local government units requiring 
assistance in the implementation of their programs and projects for socialized housing by 
producing housing units for ISFs and low-income families identified for priority relocation, 
including those residing in areas earmarked for national infrastructure projects of the Department 
of Public Works and Highways and the Department of Transportation;  
 
(j)  
Ensure that the housing requirements of beneficiaries of presidential proclamations 
are met. Such housing projects shall be compliant with the standards set by the Department of 
Human Settlements and Urban Development (DHSUD) for climate resiliency; and  
 
(k)  
Provide technical assistance to the concerned condominium corporation, on the 
maintenance of structures and facilities and collection of payments.  
 
II. Asset Management and Business Development  
 
(a)  
Exercise the right of eminent domain, purchase, sell, lease or exchange lands for 
purposes of housing development, resettlement, and other related services and facilities;  
 
(b)  
Issue bonds or contract loans, credits, or indebtedness, including suppliers credit or 
any deferred payment arrangements with any person or entity, domestic or foreign, for the 
implementation of its housing programs;  
 
(c)  
Invest its funds, as it may deem proper, in bonds and securities issued and 
guaranteed by the government, and to invest, own or otherwise participate in equity in any 
establishment, firm or entity; to form, organize, invest in or establish and maintain subsidiary or 
subsidiaries in relation to any of its purposes;  
 
(d)  
Subject to RA 10149, otherwise known as the GOCC Governance Act of 2011, 
form, organize, invest in or establish and maintain a subsidiary or subsidiaries, in relation to any 
of its purposes;  
 


 
 
 
 
 
 
(e)  
Ensure the collection and recovery of all indebtedness, liabilities or 
accountabilities, due from all obligors, whether public or private; to demand payment of the 
obligations referred to herein, and in the event of failure or refusal of the obligor or debtor to 
comply with the demand, to initiate and institute the necessary or proper actions or suits, criminal, 
civil administrative or otherwise, before the courts, tribunals, commissions, boards or bodies of 
proper jurisdiction: Provided, however, that the Authority may compromise or release, in whole 
or in part, any interest, penalty or civil liability to the Authority in connection with the collection 
or amortizations, under such terms and conditions as prescribed by the Board of Directors and such 
compromise or release shall be with the approval of the Board: Provided, further, That the Board 
may, upon recommendation of the General Manager, deputize any member of the authority’s legal 
staff to act as special sheriff in foreclosure cases, in the sale or attachment of the debtor’s 
properties, and in the enforcement of court writs and processes in cases involving the Authority. 
The special sheriff of the Authority shall make a report to the proper court after any action taken 
by him which shall treat such action as if it were an act of its own sheriffs in all respects;  
 
(f)  
Generate sources and formulate schemes for financing, with due delineation of 
government and private sector participation; and 
 
(g)  
Engage in landbanking by acquiring and investing in lands in or near planned areas 
for development such as urban hubs, commuter rails, toll highways, and airports for purposes of 
socialized housing development.  
 
III. Management Services  
 
(a)  
Formulate and enforce general and specific policies for housing and resettlement;  
 
(b)  
Monitor and discharge all responsibilities of the government as may arise from 
treaties, agreements, and other commitments on housing and resettlement to which the Philippine 
government is a signatory, including the determination of forms of assistance for housing 
development to be extended through multilateral or bilateral assistance programs;  
 
(c)  
Contribute to the database of the DHSUD which includes the census of households 
and families along danger areas, government infrastructure project site and government owned 
lands, which shall be used for subsequent government interventions with housing and resettlement 
component; and,  
 
(d)  
Approve restructuring plan for the payment of unpaid amortizations under such 
terms and conditions as the Board of Directors may prescribe.  
 
IV. General Powers  
 
(a)  
Have the power of succession; to sue and be sued; to adopt and use a seal which 
shall be judicially noticed;  
 
(b)  
Enter into contracts whenever necessary under such terms and conditions as it may 
deem proper and reasonable;  
 
(c)  
Acquire property rights and interests, and encumber or otherwise dispose the same 
as it may deem appropriate;  
 
(d)  
Borrow funds from any source, private or government, foreign or domestic;  
 
(e)  
Receive donations, grants, bequests and fund transfers from other branches of the 
government, and utilize the same for the attainment of its objectives. Such donations, grants and 
bequests shall be exempt from the payment of transfer taxes and be fully deductible from the gross 
income of the donor or grantor for income tax purposes;  


 
 
 
 
 
 
 
(f)  
Maintain a provident fund, which shall consist of contributions made by both the 
Authority and its officers and employees and their earning, for the payment of benefits to such 
officials and employees or their heirs under such terms and conditions as it may prescribe subject 
to the provisions of RA 10149 and other executive issuances; and  
 
(g)  
Perform such other acts not inconsistent with this Act, as may be necessary to effect 
the policies and objectives herein declared.  
 
SECTION 7. The Board of Directors. —The powers of the Authority shall be exercised 
through the Board of Directors, referred to in this Act as the “Board”, which shall be composed of 
10 members in an ex-officio capacity, namely:  
 
1.  
Secretary of Human Settlements and Urban Development;  
2.  
Secretary of Public Works and Highways;  
3.  
Secretary of Finance;  
4.  
Secretary of Trade and Industry;  
5.  
Secretary of Labor and Employment;  
6.  
Secretary of Environment and Natural Resources;  
7.  
Secretary of Interior and Local Government;  
8.  
Secretary of Budget and Management;  
9.  
Director-General of the National Economic and Development Authority; and  
10.  
Executive Secretary.  
 
Three (3) panel members with expertise in housing, urban planning, and urban 
development shall be appointed by the President from a shortlist submitted by the Governance 
Commission for GOCCs (GCG): Provided, That, all appointive directors must have qualified 
under the Fit and Proper Rule, in accordance with RA 10149 and shall serve for one (1) year, 
unless sooner removed for cause; Provided, however, that the appointive director shall continue to 
hold office until the successor is appointed.  
 
The expert panel members must be: (i) Filipino citizens and of good moral character; (ii) 
be of recognized probity and independence and must have distinguished themselves professionally 
in public, civic or academic service; (iii) be in the active practice of their professions which are 
integrally related to housing, urban planning, and urban development, for at least seven (7) years; 
and (iv) not be appointed within one (1) year after losing in the immediately preceding elections.  
 
The Secretary of the DHSUD shall be the ex officio Chairperson of the Board. The General 
Manager shall be elected by the members of the Board from among the three expert panel 
members. The Board shall meet regularly at least once a month but special meetings may be called 
either by the Chairperson or by seven (7) members of the Board, as may be necessary. Provided, 
That, seven (7) members of the Board shall constitute a quorum and all decisions of the Board 
shall require the concurrence of at least seven (7) members.  
 
SECTION 8. Powers and Duties of the Board. - The Board shall have the following 
powers and functions:  
 
(a)  
Formulate, prescribe, and promulgate the implementing rules and regulations 
required by this Act;  
 
(b)  
Promulgate such rules and regulations as may be necessary for the effective 
exercise of the powers and functions, as well as the discharge of the duties and responsibilities of 
the Board, its officers and employees;  
 


 
 
 
 
 
 
(c)  
Act upon the annual budget and such supplemental budgets of the Authority 
submitted by the General Manager: Provided, that the Board may reduce but may not increase any 
item proposed by the General Manager;  
 
(d)  
Approve the Authority’s organizational and administrative structures and staffing 
pattern, and establish, fix, review, revise, and adjust the appropriate compensation package of its 
officers and employees as submitted by the General Manager, in accordance with RA 10149 and 
other executive issuances;  
 
(e)  
Enter into and approve financial or investment schemes;  
 
(f)  
Enter into contracts or agreements as may be necessary for the attainment of the 
objectives of this Act;  
 
(g)  
Enter into and execute memoranda of agreements, joint ventures, long-term leases 
and management contracts with private sector entities, to include real estate developers or 
construction companies with proven track record in developing and managing real estate ventures;  
 
(h)  
Condone or compromise, in whole or in part, penalties, interests, or civil liabilities 
imposed on beneficiaries with delinquent account who, for justifiable reasons prescribed by the 
Board, failed to pay on time any obligation due to the Authority; and  
 
(i)  
Exercise all the powers necessary or incidental to the attainment of the purposes of 
this Act.  
 
SECTION 9. Duties of the General Manager. The General Manager shall have the 
following powers and duties:  
 
(a)  
Execute and administer the policies and resolutions approved by the Board of 
Directors and prepare its agenda;  
 
(b)  
Direct and supervise the operations, management and internal affairs of the 
Authority: Provided, That the General Manager may delegate certain administrative 
responsibilities to other officers of the Authority, subject to the rules and regulations promulgated 
by the Board;  
 
(c)  
Subject to the approval of the Board, fix the number and salaries of, and appoint, 
the subordinate officers and personnel of the Authority and discipline for cause any such officer 
or employee pursuant to the provisions of the Civil Service Commission on discipline;  
 
(d)  
Represent the Authority in all dealings with other offices, agencies, and 
instrumentalities of the Government and with all persons and entities, public or private, domestic 
or foreign;  
 
(e)  
Act on all matters not specifically reserved to the Board, in the conduct of the 
business of the Authority;  
 
(f)  
Solely confer lot awards to the eligible beneficiaries: Provided, That, questions on 
the propriety of lot awards granted to the Authority’s beneficiaries may be elevated on appeal to 
the Secretary of the DHSUD;  
 
(g)  
Submit to the Board within 90 days after the close of each fiscal year, a complete 
report on the operations of the Authority for the preceding year; and  
 
(h)  
Exercise such other powers and duties as may be vested by the Board.  
 


 
 
 
 
 
 
SECTION 10. Assistant General Managers. - The General Manager shall be assisted by 
three (3) Assistant General Managers, who shall be appointed by the President, upon the 
recommendation of the General Manager: Provided, That at least one (1) Assistant General 
Manager shall be a career officer. The General Manager is further authorized to delineate and 
assign other functional areas or responsibilities of the Assistant General Managers.  
 
SECTION 11. Qualifications and Appointment. - No person shall be appointed Assistant 
General Manager of the Authority unless he or she is a citizen and resident of the Philippines, of 
good moral character, of proven integrity, competence and expertise in housing, urban planning, 
and urban development.  
 
SECTION 12. Organizational Structure and Staffing Pattern. - Subject to the approval 
of the GCG, the Board shall determine the Authority’s organizational structure, and create new 
divisions or units, as it may deem necessary in accordance with civil service laws, rules and 
regulations. Subject to the approval of the Board, the General Manager shall likewise determine 
the rates of allowances, honoraria, and such other additional compensation which the Authority is 
hereby authorized to grant to its officers, technical staff, and consultants, including necessary 
detailed personnel.  
 
SECTION 13. Exemption From Taxes and Regulatory Fees. – All laws to the contrary 
notwithstanding, the Authority, its projects, assets and properties, and all accruals thereto and 
income or investment earnings therefrom, as well as supplies, equipment, papers, or documents 
shall be exempt from any tax, assessment, fee, charge, or customs or import duty, of any kind, 
whether imposed by local or national entities.  
 
The exemption includes exemption from income tax, real property tax, capital gains tax, 
transfer tax, value added tax, donor’s tax and similar taxes; and building permit fee, fire inspection 
permit fee, Environmental Compliance Certificate fees, and other regulatory fees. Similarly, the 
Authority shall be exempt from the payment of documentary stamp tax and registration fees, 
including fees required for the issuance of transfer certificates of title.  
 
Furthermore, to promote the policy of improving housing affordability, projects of the 
Authority, in cooperation with local government units, the private sector and other entities, shall 
also enjoy the exemptions enumerated above.  
 
SECTION 14. Lands for Authority Projects; Management, Conversion and 
Classification. - Lands identified and designated for housing and urban and rural development, 
pursuant to Section 24 of Republic Act No. 11201, shall be assessed by the Authority for program 
or project feasibility. Should the site evaluation be in the affirmative, said lots shall forthwith be 
transferred to the Authority.  
 
This shall not, however, preclude the Authority from pursuing its continuing mandate of 
identifying, acquiring and managing lands for the immediate and future needs of its beneficiaries. 
In pursuit thereof, the Authority must consider, among others, the degree of availability of basic 
services and utilities, access to modes of transport, proximity to economic opportunities and the 
preservation of the social capital of beneficiaries.  
 
Lands identified and approved by the Authority for rehabilitation projects to be developed 
within areas that have been declared under a state of calamity by the President or any competent 
authority, upon the recommendation of the National Disaster Risk Reduction and Management 
Council or any local disaster risk reduction and management council shall be automatically 
converted or reclassified, in order to facilitate its immediate development. For purposes of site 
selection under this modality, the Authority shall be guided by the hierarchy of priorities in the 
acquisition of land, under Section 9 of RA 7279, and ensure that protected lands, under special 
laws, such as RA 8371, RA 8435, RA 6657, and other agrarian reform laws, shall be preserved for 
equally important land uses: Provided, That, in cases of housing projects under this section that 


 
 
 
 
 
 
subsequently suffered extensive damage due to substandard construction materials or negligence 
in project planning and construction, the Authority shall compensate the affected households for 
all material damage, injury, and loss to or diminution in the value of the housing units which may 
include repairs of damaged units free of charge, provision of indemnity insurance, and transfer of 
ownership of these units to the beneficiaries.  
 
The Authority, in coordination with the DHSUD, the Department of Interior and Local 
Government (DILG), the Department of Agriculture (DA), the Department of Agrarian Reform 
(DAR), the Department of Environment and Natural Resources (DENR), the National Commission 
on Indigenous Peoples (NCIP) to craft the rules and regulations necessary to implement this 
provision within 180 days after the approval of the Act.  
 
SECTION 15. Designation of the National Housing Authority as Lead Agency in the 
Disposition Program. – The Authority, under the supervision of the DHSUD, and in close 
coordination with the DILG, DA, DAR, DENR, NCIP, and the Land Registration Authority, shall 
take the lead in the disposition activities of the lands in the preceding section: Provided, That 
disposition activities shall include the preliminary stages of identification and evaluation of lands 
suitable for disposition under this Act.  
 
The DHSUD is hereby directed to immediately submit an updated list of government-
owned lands suitable for socialized housing purposes. It shall make recommendation to the 
President relative to the disposition of the lands subject hereof; Provided, That, lands owned by 
government-owned and –controlled corporations and government financial institutions engaged in 
housing finance as part of their fiduciary obligation to their members or are taken possession of in 
their ordinary conduct of business, are excluded.  
 
SECTION 16. Management or Disposition of Completed Projects. - The Authority shall 
determine, establish, and maintain the most feasible and effective program for the management or 
disposition of specific housing or resettlement projects. Unless otherwise decided by the Board, 
completed housing or resettlement projects shall be managed and administered by the Authority 
until they have been turned over to the local government unit concerned or other public or private 
entity concerned, as the case may be: Provided, That, in the case of housing projects that were 
completed or started prior to the extension of its corporate life, the Authority shall co-manage the 
same with the concerned local government units, homeowners’ associations or residential 
condominium association until they are properly turned over to any of the latter. The responsibility 
of the Authority as co-manager shall include the collection of payments, maintenance of structures 
and facilities, and estate management. The Authority shall also provide technical assistance to 
homeowners' associations and local government units in the formulation and enforcement of rules 
and regulations for the project beneficiaries.  
 
SECTION 17. Reports. - The Authority shall submit an annual report to the Office of the 
President, the Senate and the House of Representatives, copy furnished the DHSUD, indicating, 
among others, the housing program being implemented, the stage of implementation, and the 
financial position of the Authority. It shall likewise submit such periodic or other reports as may 
be required from time to time.  
 
SECTION 18. Audit. - The Chairperson of the Commission on Audit (COA) shall act as 
the ex-officio auditor of the Authority. The COA Chairperson is empowered to appoint a 
representative and other subordinate personnel to perform and report on such audit duties, 
responsible to and removable only by the COA Chairperson, without prejudice however, to the 
power of the Board to contract another mode of independent audit service, in addition to that 
provided by COA pursuant to PD 1445, otherwise known as the Government Auditing Code of 
the Philippines.  
 
SECTION 19. Implementing Rules and Regulations. – The implementing rules and 
regulations to effectively carry out the provisions of this Act shall be adopted by and promulgated 


 
 
 
 
 
 
by the Board, in coordination with the DHSUD and the GCG, not later than one hundred eighty 
(180) days after the approval of this Act.  
 
SECTION 20. Applicability of the Revised Corporation Law. - The provisions of RA 
11232 otherwise known as the Revised Corporation Code of the Philippines, in so far as they are 
not inconsistent with the provisions and policies provided in this Act, shall be applicable to the 
Authority.  
 
SECTION 21. Separability Clause. - If for any reason any provision of this Act is declared 
to be unconstitutional or invalid, the remaining provisions not affected thereby shall continue to 
be in full force and effect.  
 
SECTION 22. Repealing Clause. - Section 2 of PD 757 is hereby amended accordingly. 
All other laws, decrees, executive orders, or rules and regulations or parts thereof inconsistent with 
or contrary to the provisions of this Act or its purposes are hereby amended or modified 
accordingly.  
 
SECTION 23. Effectivity Clause. - This Act shall take effect fifteen (15) days after the 
completion of its publication in the Official Gazette or in at least one newspaper of general 
circulation.  
 
Approved,