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SIXTEENTH CONGRESS OF THE REPUBLIC) 
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OF THE PHILIPPINES 
) 
First Regular Session 
) 
'13 
SEP -3 1\10 :54 
SENATE 
Senate . Bill No. 1481 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
EXPLANATORY NOTE 
Section 2 of the Urban Development and Housing Act of 1992 provides 
that the State shall "undertake, in cooperation with the private sector, a 
comprehensive and continuing Urban Development and Housing Program. " 
To ensure the achievement of the objectives of this Program, Section 6 
called for the formulation of a comprehensive plan for urban and urbanizable 
areas. Under this comprehensive plan the following responsibilities were given to 
the Local Government Units (LGUs): (1) inventory of lands for socialized housing 
(Section 7); (2) identification of sites for socialized housing (Section 8); (3) 
registration of socialized housing beneficiaries (Section 17) and; (4) monitoring of 
compliance by developers of the· twenty percent (20%) balanced housing 
provision under Section 18. 
Clearly, there is a need for a specialized body in our LGUs that shall 
ensure the faithful and proactive execution of housing programs at the local level. 
A void at the local level in the .form of a mechanism to hasten the delivery of 
shelter services to our people, especially those who need it most, needs to be 
filled up. 
It is envisioned that this proposed measure will provide an administrative 
machinery at the local level to effect the implementation of the UDHA as well as 
cope with the fast pace of urbanization of the country. Another reason for the 
passage of this bill is that there is also a need to institutionalize multi-sectoral 
representation in local housing initiatives. This is premised on the fact that the 
success of these programs will, to a large extent, depend on the direct 
participation and cooperation of the stakeholders in the planning and 
implementation process. By this we mean that the people who are going to be 
affected or benefited by such projects should be given a voice in the planning 
and implementation of such projects. 
In view of the foregoing, the passage of this bill is earnestly sought. 
Senator 


" 
SIXTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
SENATE 
Senate Bill No.14 81 
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'13 
SEP -3 AlD:54 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
.ANACT 
CREATING A LOCAL HOUSING BOARD IN ALL CITIES AND FIRST TO 
THIRD CLASS MUNICIPALITIES, PROVIDING FOR ITS POWERS AND 
FUNCTIONS, AND FOR OTHER PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Short Title. - This Act shall he known as the "Local 
Housing Boards Act. " 
SEC. 2. Declaration of Policy. - It is hereby declared the policy of the 
State to: 
' I, 
a) 
Promote a just and dynamic social order that will ensure the 
prosperity and independence of the nation and free the people from 
poverty through policies that provide adequate social services, 
promote full employment, a rising standard of living and an improved 
quality of life for all; 
b) 
Adopt a continuing housing program that will make available at 
affordable cost, decent housing and basic services to all especially 
the underprivileged and homeless; 
c) 
Protect urban and rural poor dwellers from evictions or demolitions 
undertaken in violation of the law; 
d) 
Require all national agencies and offices to conduct periodic 
consultations with appropriate local government units (LGUs), non-
governmental and people's organizations and other concerned 
sectors of the community before any project or program is 
implemented in their respective jurisdictions; 
e) 
Promote and institutionalize the participation of the private sector, 
non-government organizations (NGOs) and people's organization 
(POs) in the urban and rural development process; and, 
1) 
Promote genuine and meaningful local autonomy to political 
subdivisions of the State to enable them to attain their fullest 
development as self-sufficient communities and make them more 
effective partners in the attainment of national goals. 


Toward these ends, the State shall provide for a more responsive and 
accountable local government structure instituted through a system of 
decentralization whereby LGUs, through the creation of local housing boards, 
shall be given more powers, authority, responsibilities and resources in the 
planning and execution of their housing programs. 
SEC. 3. Definition of Terms. - For purposes of this Act, the following 
terms or words and phrases shall mean or be understood as follows: 
a) 
Balanced Housing Requirement refers to the responsibility given to 
developers of subdivision projects pursuant to Section 18 of the 
Urban Development and Housing Act (UDHA) of 1992; 
b) 
Comprehensive Land Use Plan refers to the primary and dominant 
bases for land use, applying a rational approach for allocating 
available land resources as equitably as possible among competing 
user-groups and for different functions, 
consistent with the 
development and zoning plan of the area and the provisions of the 
UDHA; 
c) 
EconomiC Housing refers to a type of housing project provided to 
moderately low income families with lower interest rates and longer 
amortization periods; 
d) 
Local Shelter Plan refers to a general framework that effectively 
provides a step-by-step procedure by which cities and municipalities 
could formulate solutions to their housing problems. It shall include 
measures to enable cities and municipalities to plan and implement 
their specific mandates based on the UDHA, and to facilitate a 
linkage with comprehensive land use plans as defined under this Act; 
e) 
Non-Government Organization refers to a non-stock, non-profit 
domestic corporation or organization as defined under Section 34 (H) 
(2) (c) of the Tax Code organized and operated exclusively for 
scientific, research, educational, character building, youth and sports 
development, health, social welfare, cultural or charitable purposes, 
or a combination thereof, no part of the net income of which inures to 
the benefit of any private individual; 
f) 
NUDHF refers to the comprehensive plan for urban and urbanizable 
areas aimed at achieving the objectives set forth under the UDHA of 
1992; 
g) 
People's Organization refers to a bonafide association of citizens with 
demonstrated capacity to promote the public interest and with 
identifiable leadership, membership, and structure; 
h) 
Rural Areas refer to those areas that are not urban areas as defined 
under this Act; 
i) 
Socialized Housing refers to housing programs and projects covering 
houses and lots or homelots only undertaken by the Government or 
the private sector for the underprivileged and homeless citizens 
which shall include sites and services development, long-term 
financing, liberalized terms on interest payments, and such other 
benefits in accordance with the provisions of the UDHA; 


>, 
j) 
UDHA refers to the Urban Development and Housing Act of 1992 or 
Republic Act No. 7279 (R.A. No. 7279); 
k) 
Underprivileged and Homeless Rural or Urban Poor Dwellers refer to 
individuals or families residing in rural or urban areas whose income 
or combined household income falls within the poverty threshold as 
defined by the National Economic Development Authority and who do 
not own housing facilities, and shall include those who live in 
makeshift dwelling units and do not enjoy security of land tenure; 
I) 
Urban Areas refer to all cities regardless of their population density 
and to municipalities with a population density of at least five hundred 
(500) persons per square kilometer; 
m) 
Local Housing Boards refer to all housing boards in cities and first to 
third class municipalities created under this Act; and, 
n) 
Local Housing Office refers to the implementing body of the local 
housing board. 
SEC. 4. Local Housing Boards; Creation; Composition. - There shall 
be created a Local Housing Board, hereinafter referred to as the Board, in all 
cities and first to third class municipalities as classified by the Secretary of 
Finance: Provided, That fourth and ·fifth class municipalities may create their own 
Local Housing Board if they so, d~~.ire. The Board shall be composed of the 
following: 
a) The City/Municipal Mayor as Chairperson; 
b) The Vice Mayor as Vice Chairperson; 
c) The Chairperson of the Sangguniang Bayan Committee on Housing and 
Urban Development or its equivalent as Member; 
d) The City/Municipal Planning and Development Coordinator as Member; 
e) The City/Municipal Engineer as Member; 
f) A representative of the housing agencies to be deSignated by the HUDCC 
as Member; 
g) A representative from a private organization engaged in subdivision and 
housing development operating in the city or municipality as Member; 
h) A representative from €'Os operating in the city or municipality as 
Member: Provided, That a PO already represented in any local special 
body may be concurrently represented in any local housing board; and, 
i) A representative from NGOs operating in the city or municipality as 
Member Provided, That an NGO already represented in any local special 
body may be concurrently represented in any local housing board. 
Representatives to the Board from organizations mentioned in the last 
three paragraphs of this section shall be selected through the same 
process as that of filling up the representatives of the local special bodies. 
SEC. 5. Powers and Functions. - Local Housing Boards shall have the 
following powers and functions: 
a) 
Formulate, develop, and recommend to the Sanggunian, pOlicies, 
directives, rules and regulations, consistent with laws, as it may 
deem necessary, on the provision of decent and affordable housing 
and resettlement areas and on the observance of the right of the 


underprivileged and homeless to just and humane evictions and 
demolitions; 
b) 
With the assistance of the HUDCC and other concerned government 
agencies, prepare a Local Shelter Plan which shall form part of the 
city/municipal development plan: Provided, That such plan shall be 
consistent with the city/municipal land USe plan: Provided further, 
That public hearings shall be conducted for the purpose; 
c) 
Approve preliminary and final subdivision schemes and development 
plans of subdivisions and condominiums in accordance with the 
provisions of Presidential Decree No. 957, as amended, otherwise 
known as the Subdivision and Condominium Buyers' Protective 
Decree, and its implementing standards, rules and regulations 
concerning subdivisions and condominiums; 
d) 
Approve preliminary and final subdivision schemes and development 
plans of all economic and socialized housing projects as well as 
individual or group building occupancy permits covered by Batas 
Pambansa Big. 220 and its implementing standards, rules and 
regulations; 
e) 
Evaluate and resolve the opposition to the issuance of development 
permits for any of the projects stated in the two (2) preceding sub-
sections, in accordance with the said laws and the Rules of 
Procedure promulgated by the Housing and Land Use Regulatory 
Board (HLURB) incident thereto; 
f) 
Designate at least onE! (1) representative to their respective local 
development councils: Provided, That said representative is not 
already a member of the council; 
g) 
Recommend to the Sanggunian, the sites for socialized housing, 
subject to the requirements prescribed by Section 8 of RA. 7279 and 
guidelines issued for the purpose; 
h) 
Advise the Sanggunian on matters of local taxation which may affect 
the local government housing program, which includes, but shall not 
be limited to, the formulation of a socialized housing tax, idle land tax, 
and an additional levy on the real property tax to constitute a Special 
Socialized Housing Fund; 
i) 
Recommend, for approval of their respective Local Chief Executives 
(LCEs), formulated schemes for the acquisition and disposition of 
lands within their localities for socialized housing purposes, subject to 
Section 9 to 14 of RA. 7279 and its implementing gUidelines: 
Provided, That such schemes shall ensure that the valuation of a 
particular land for socialiZed housing purposes shall be within the 
affordability levels of prospective beneficiaries; 
j) 
Recommend for approval of their respective LCEs, partnership 
arrangements with the national government on the provision of 
decent and affordable shelter; 
k) 
Through the local chief executive, submit to the President and the 
Congress of the Philippines, an annual report as provided by Section 
41 of RA. 7279; and, 


I) 
Perform such other related functions established by law or ordinance, 
as necessary to implement the mandate of local government units 
under the UDHA. 
SEC. 6. Local Housing Office; Creation: Functions. - There shall be 
created a Local Housing Office. in all cities and municipalities which shall 
heretofore become a regular office under the local government unit and serve as 
the implementing arm of the Board. The Urban Poor Affairs Office or its 
equivalent office in cities or municipalities shall be converted into the Local 
Housing Office and in addition to its existing functions, shall have the following 
additional functions: 
a) Assist the Board in the preparation of the local shelter plan; 
b) Assist the city/municipal development councils in the formulation of 
their respective comprehensive land use plans; 
c) Oversee and coordinate government activities relative to consultation, 
relocation, and resettlement of underprivileged and homeless urban or 
rural poor dwellers in cases where evictions and demolitions affecting 
them are necessary and allowed by existing laws; 
d) Ensure that the balanced housing requirements as provided in Section 
18 of RA. 7279 and its implementing rules and regulations are 
implemented and enfo,~ced,; 
e) In coordination with other offices within the LGU, monitor the nature 
and progress of land development of projects that the Board has 
approved, as well as housing construction in the case of house and lot 
packages, to ensure their faithfulness to the approved plans and 
specifications thereof, and impose appropriate measures to enforce 
compliance therewith; 
f) Conduct an inventory of all lands within their respective localities, and 
update the same every three (3) years, in accordance with Section 7 of 
RA. 7279 and guidelines issued for the purpose; 
g) Identify the sites for socialized housing, subject to the requirements 
prescribed by Section 8 of RA. 7279 and guidelines issued for the 
purpose; 
h) Ensure the registration of underprivileged and homeless urban or rural 
dwellers as socialized housing beneficiaries under Sections 16 and 17 
of R.A. 7279: Provided That the Local Housing Office shall assume the 
functions of city or municipal registration committees as constituted 
under the implementing rules and regulations of the same sections; 
i) Ensure the prevention of proliferation of professional squatters and 
squatting syndicates within its jurisdiction; 
j) 
Ensure the enforcement of laws, policies and programs on housing 
and shelter as provided for under laws and such directives, rules and 
regulations adopted by the Board; 


.' 
k) Assist in the organization of housing and shelter cooperatives, 
associations or organizations in establishing linkages with government 
agencies and NGOs involved in the promotion and integration of the 
concept of shelter development and generation, taking into account the 
livelihood of the people and other community activities; 
I) 
Provide technical and other forms of assistance to existing housing 
associations or cooperatives to enhance their viability, as economic 
enterprises and social organizations; 
m) Coordinate with government agencies and instrumentalities performing 
functions which may affect housing and urban development; and, 
n) Perform such other duties and functions as may be prescribed by law 
or ordinance. 
SEC. 
7. Local Housing Officer. - The local housing office shall be 
headed by a Local Housing Officer who shall be a career official. No person shall 
be appointed Local Housing Officer unless, he is a citizen of the Philippines, a 
resident of the LGU concerned, of good moral character, a holder of a college 
degree either in public administration, urban planning, civil engineering, 
economics, development studies or such other related courses. He must have at 
least five (5) years experience in the case of cities, and three (3) years 
experience in the case of municipalities, either in housing development projects, 
organization of housing associations or cooperatives, management and 
operation of housing and shelte~ programs or such other related activities. 
SEC. B. Generation and Mobilization of Resources. - The Boards are 
hereby constituted as the primary entities tasked to advise local development 
councils on matters of sourcing of funds for socialized housing. For this purpose, 
the Boards may recommend the following schemes for funding socialized 
housing projects: 
a) BUild-operate-transfer and other related schemes; 
b) Bond flotation and other credit financing arrangements; 
c) Availment of foreign or local grants: Provided, That local housing 
boards are hereby authorized to receive foreign and local grants which 
shall be remitted to the local treasury, and shall be credited to the 
socialized housing account of the local government unit concerned; 
d) Loan packages from government financingllending institutions; 
e) Joint venture projects with private sector groups or developers and 
with NGOs and POs; and, 
f) Pooling of resources between and among LGUs, the private sector, 
NGOs and POs.·· , 
SEC. 9. Meetings and Quorum. - The Board shall have its meeting at 
least once a month or as often as may be deemed necessary. The presence 'of 
the Chairperson or the Vice-Chairperson and a majority of the members of the 
Board shall constitute a quorum. Special meetings may be called by the 


Chairperson or by a majority of the members when situations so warrant. 
Decisions shall be reached by the Board through a simple majority. 
A written notice of the date, time, place and agenda of the meeting shall 
be sent to each member of the Board at least three (3) days prior to the 
scheduled meeting.or at least one (1) day, if it is a special meeting. 
SEC. 10. Compensation and Remuneration. - Members of the Board 
who are not government officials or employees shall be entitled to the necessary 
traveling expenses and allowances chargeable against the funds of the local 
housing board concerned, subject to existing accounting and auditing rules and 
regulations. 
This does not cities and municipalities from mobilizing other possible 
funding sources for the compensation and remuneration of members of the 
Board who are not government officials or employees. 
SEC. 11. Special Housing Trust Fund. - Cities and municipalities shall 
establish a special account to be called the "Special Housing Trust Fund" to 
initially establish the local housing office and as source of funds for the housing 
programs of the city/municipality for the underprivileged and homeless. Sources 
of said trust fund shall come from, but not limited to, the following: 
a) 
Proceeds generated from the collection of the additional one-half 
percent (0.5%) tax on real properties; 
b) 
All funds/monies generated from various sources intended for 
housing and other related development programs; and, 
c) 
All payments, remittances, accrued interests, penalties, and such 
other fees generated from housing related activities. 
SEC. 12. Roles of Stakeholders. In order to facilitate the work of the 
Board, the roles of the stakeholders shall be as provided for under this section: 
a. The Local Government Unit shall: '('J' 
1) Identify and prioritize areas fo~ihouSing development; 
2) Plan on the total housing need of its constituents; 
3) Provide basic information relative to the areas that may be proposed for 
issuance of Presidential Proclamation; 
4) Assist in the, conduct of verification survey; 
5) Monitor and oversee the implementation of the activities in accordance 
with their respective work: programs; and, 
6) Prepare the detailed wprk program for approved housing projects. 
b. Housing and Urban Development Coordinating Council shall: 
1) Recommend to the local housing board, options for the development of 
sites or disposition schemes to the intended beneficiaries; 
2) Process and recommend to the President, idle or underutilized 
government ands identified by the local housing board as sites which are 
suitable for housing purposes; 


3) Solicit assistance from other national government agencies whose 
functions and services are necessary in the provision of. housing and 
delivery of basic services; 
4) Through the National Housing Authority (NHA), prepare the Master 
Development Plans of the areas identified for housing; 
5) Identify and recommend housing projects/programs which can be 
implemented and funded through alternative schemes; and, 
6) Draw-up guidelines as well as Terms of Reference to cover the 
implementation of identified priority housing projects. 
c. The Presidential Commission for the Urban Poor shall: 
1) Monitor all evictions and demolitions, whether extra-judicial or court-
ordered, involving homeless and underprivileged citizens; 
2) Require the concerned departments and agencies, including concerned 
LGUs, proposing to undertake demolition and eviction activities to secure 
first from either the PCUP Central Office, in the case of national projects, 
or from the PCUP Regional Office concerned, in the case of regional or 
local projects, the checklists, guidelines and compliance certificates on 
demolition and eviction prior to the actual implementation thereof and 
thereafter, submit to the PCUP the completed checklist, attested to under 
oath by the proponent that the provisions of Section 28 of RA 7279 or its 
implementing rules and regulations have been complied with; 
3) Based on the completed checklist and subject to further verification, issue 
demolition and eviction compliance certificates to proposed demolitions 
and evictions involving homeless and underprivileged citizens;· 
4) Investigate motu propio ofllP,Qn complaint by any party, any violation of 
the provisions of Section 28 of RA 7279 and its implementing rules and 
regulations; 
5) File motu proprio or by way of assistance to any aggrieved party, the 
appropriate criminal, civil or administrative case against any person or 
persons found to have violated the provisions of Section 28 of RA 7279 or 
its implementing rules and regulations; and, 
6) Such other functions as provided for under Executive Order No. 152, 
series of 2002. 
d. The PO and NGO representatives shall: 
1) Assist in the holding of dialogues and consultations with affected families 
leading to their full acceptance and support to the program; 
2) Provide feedback mechanism to the Local Housing Board and ensure 
urban poor participation in the decision-making process; 
3) Assist the Local Housing Board 
in processing applications and 
documents; 
4) Provide support to the local housing board in the community relations, 
social preparations and information disseminations and motivation 
activities at the identified housing sites; 
5) Actively participate in the drawing up of the development plan for the area; 
and, 
6) Identify pro-poor programs to uplift the socio-economic conditions of the 
affected urban poor residents. 
SEC. 13. Penalties. - Unjustified failure or refusal of a mayor to constitute 
the local housing board as created and defined by this Act, shall subject the 
national and local government officials and employees responsible for the such 
omission, misrepresentation, fraud, or unjustified failure or refusal to: 


, 
, 
a) 
disciplinary action under Book I, Title Two, Chapter 4 of the Local 
Code; and/or 
b) 
Government prosecution under the penalty clause of the UDHA. 
SEC. 14. Transitory Provisions. - Local chief executives of cities and 
first to third class municipalities shall constitute their respective Boards within 
ninety (90) days from the promulgation of the implementing rules and regulations 
of this Act. Local Chief Executives of fourth to sixth class municipalities are given 
a minimum of two (2) years from the promulgation of the implementing rules and 
regulations of this Act to constitute their Boards. Failure to constitute the Board 
within this prescribed period shall be prima facie evidence of unjustified failure or 
refusal to do so. 
Cities and municipalities with existing local housing and urban 
development boards or similar entities are hereby given ninety (90) days from the 
promulgation of the implementing rules and regulations of this Act to conform 
with the provisions of this Act: Provided, That nothing herein stated shall 
preclude cities and municipalities from deSignating additional functions and/or 
appropriating additional funds to achieve the objectives of this Act. 
SEC. 15. Implementing Rules and Regulations. - Within sixty (60) days 
after the approval of this Act, the HUDCC and the DILG, in consultation with the 
concerned government agencies, the private sector, POs and NGOs, shall 
formulate the appropriate rull7s, and regulations necessary to effectively 
implement any or all of the provisions of this Act Such rules and regulations shall 
include, among others, guidelines on the following: 
a) Resource generation and mobilization for socialized housing purposes; 
b) Schemes for local government housing assistance; and, 
c) Accreditation and selection of representatives of the private sector, 
NGOs and POs to the local housing board. 
SEC. 16. Repealing Clause. - (a) Sections 447 (a) (2) (x) and 458 (a) (2) 
(x) of the Local Government Code are hereby repealed; (b) Section 107 (b) of the 
Local Government Code is hereby amended; and (c) 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. 17. Separability Clause. - If for any reason, any provision of this Act 
is declared invalid or unconstitutional, the remaining provisions not affected 
thereby shall continue to be in force and effect. 
Sec. 18. Effectivity Clause. - This Act shall take effect fifteen (15) days 
after its publication in at least two (2) newspapers of general circulation. 
Approved,