Republic of the Philippines
HOUSE OF REPRESENTATIVES
Constitution Hills, Quezon City

SIXTEENTH CONGRESS
First Regular Session

House Bil No, 465 1

Introduced by: Rep. Josephine Y. Ramirez Sato

EXPLANATORY NOTE

The Constitution, Article 13, Section 9 reads:

"Sec. 9 The State shall, by law, and/or 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 ant homeless citizens in
urban cestters and resettlement areas, It shall also promote adequate
employment opportunities to such citizens. In the implementation of such
program(s), the State shall respect the rights of small property owners."

Since the enactment of Republic Act No, 7279, also known as the Urban
Development and Housing Act of 1992, we are still facing a worsening problem
of urban blight and homelessness in the country. At present, we have an
estimated housing backlog of around three (3) to four (4) million housing units.
The problem does not end here.

While we face a huge shelter backlog, it is ironic that there are government
housing units that remain unoccupied to this day. While many of our poor
countrymen continue to suffer homelessness, we have thousands of housing
units lying idle. These idle government assets were acquired with the people's
money and represent wastage of scarce government resources,

Another key concern is the quality of our built environments, specifically
settlements and buildings that serve as the stage for all types of human activities.
We know all too well that our built environment is a model of non-compliance
with the very laws passed to protect both the natural and built environments.
There is clear and pressing need to control all sorts of ixrational and illegal
developments at this time as the effects of over four (4) decades of runaway
development has already taken a very heavy toll on our daily existence.



This bill proposes to create the Department of Shelter, Settlements, Urban
Development and Disaster Rehabilitation (DSSUDDR) that is envisioned to put
direction and order in the built environment in general, and the shelter sector in
particular, to encompass settlements and all types of buildings on Philippine soil,
water and airspace. It shall be the primary government agency that will facilitate
and ensure the availability of affordable shelter to our people, especially those
who need it most and to ensure that our settlements and buildings are all built in
full accordance with law, are sustainably designed, climate change-adaptive and
disaster-resilient. By creating a full time Department of Shelter, Settlements,
Urban Development and Disaster Rehabilitation, the proposed measure seeks to
integrate all shelter and urban development policies, plans, programs and
projects to expedite the delivery of decent, affordable and sustainable shelter and
urban development programs and projects.

It is for the foregoing reasons that early passage of this bill is earnestly
requested.

HON. JOSEPHT t.
Lone Distrigt of Pecider



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Constitution Hills, Quezon City

SIXTEENTH CONGRESS
First Regular Session

House’Bitl No,__ 4854

Introduced by: Rep. Josephine Y. Ramirez Sato
BARE: P

“AN ACT DEFINING THE VISION AND POLICIES OF GOVERNMENT IN
THE HOUSING, URBAN DEVELOPMENT AND _ DISASTER
REHABILITATION SECTORS, CREATING THE DEPARTMENT OF SHELTER,
SETTLEMENTS AND URBAN DEVELOPMENT, AND DISASTER
REHABILITATION, DEFINING ITS MANDATE, POWERS AND FUNCTIONS,
AND FOR OTHER PURPOSES”

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

ARTICLE I

SHORT TITLE, VISION, POLICY AND PRINCIPLES

Section 1. Short Title. This Act shall be known as the "Department of Shelter,
Settlements, Urban Development and Disaster Rehabilitation Act,"

Section 2, Declaration of Vision and Policies. The State shall pursue the
realization of a modern, humane, economically viable and environmentally
sustainable society where the urbanization process is manifest in towns and cities
being centers of productive economic activity, led by market forces; where urban
areas have affordable shelter, bases for human habitation and activities,
sustainable physical and social infrastructure and services facilitated under a
democratic and decentralized system of governance; where urban areas provide
the opportunities for an improved quality of life and the eradication of poverty;
and where there is a high degree of complementarity between urban and rural
communities.


Section 3. Principles of Sector Governance. The stipulated vision and policy shall
be pursued and realized in accordance with principles that will guide the
definition of government functions in the sector; its relationship with the private
sector; the vertical compartmentalization of government functions among levels
of governance, national and local; and the horizontal compartmentalization of
national government functions, These principles that will define and delineate
the functions, responsibilities and accountabilities of various national
government agencies are as follows:

3.1 Steering Role of the National Government in the Sector. The national
government shall perform a steering role in the shelter and urban
development sector. In this regard it shall:

a) strengthen its role in guiding, mobilizing and facilitating, in
housing and urban development. It shall define the urban
development vision and provide a shelter and urban
development framework that will guide the investments and
activities of the private sector, It shall provide policies on spatial
integration, urbanization, urban environmental management,
urban development and redevelopment, regeneration, urban land
management, shelter development and other related concerns to
facilitate private enterprise and participation, It shall formulate
and enforce a minimum set of regulations that will ensure the
establishment of a level playing field in the provision of urban
infrastructure and services and in the locational choices of
investors, and prevent urban decay, congestion, diseconomies of
scale and environmental degradation of urban areas; and

b) provide policies that will mobilize public and private sector
resources toward a self sustaining shelter finance system.

2
iS

Continuing Devolution of Functions to Local Governments, The national
government and local governments shall act as partners in shelter
and urban development. Functions, and the corresponding authority
and accountability shall be continuously devolved to local
government units, such devolution to be guided by the following:

a) The delineation of functions between the national government
and local governments shall be such that inefficiencies are
removed, access to public services and official documents is
improved, and plans, programs and services are responsive to
local needs and opportunities. For this purpose, functions that
are location specific in their benefits and costs shall, to the extent
possible, be devolved to local governments


33

34

b) The determination of the proper level of government to which a
fanction will be devolved shall be determined by the extent of
the geographical effects of the benefits and the cost of
undertaking such function,

©) Local governments shall implement national government
policies in their respective localities. Location specific functions
that are to be devolved to local governments are those that relate
to the provision of public goods and services. Local governments
shall to the extent possible, encourage the private sector to
assume primary responsibility for production of public goods,
and limit their functions to enforcing standards and regulations
or providing incentives,

d) Local governments shall have full autonomy in shelter and urban
development planning and management consistent with national
policies, strategies and regulatory framework

e) The national government shall be the facilitator, independent
monitor and performance evaluator. National government shall
formulate national standards and rules to guide local
governments in the formulation of localized standards, The
promulgation, implementation and enforcement of standards
and regulations will be undertaken by local governments.

Maximum Participation of the Private Sector and Communities in Shelter
and Urban Development. The government shall provide policies to
maximize private sector participation in shelter and urban
development and to mobilize public and private sector resources
toward a self-sustaining shelter and urban development finance
system.

The national government, through local governments, shall ensure
that communities are involved in the formulation of shelter and urban
development policies and plans that will impact upon them, their
livelihood and their living conditions, Full community participation
in shelter and urban development policies, programs and, projects of
government shall be encouraged.

Responsiveness to the shelter needs of the urban poor communities. The
government shall directly address the concerns and needs of the
urban poor communities by formulating the policies, providing and
mobilizing resources, and designing as well as imiplementing
programs and intervention that will address urban homelessness and
unemployment. Government shall facilitate the establishment of a
finance system that enables all sectors of society to have the
opportunity to access funds and facilitate the provision of adequate


shelter, security of tenure and appropriate infrastructure, where
subsidies, if provided, are transparent in nature and targeted at those
in need.

3.5 Clear Horizontal Compartmentalization and Coordination of Functions
Among National Government Agencies. The Department of Shelter,
Settlements and Urban Development, created under this Act, shall be
the primary entity for policy formulation and coordination of all
shelter and urban development functions. It shall define the
delineation of shelter and urban development functions and
responsibilities of and relationship among. national government
agencies to promote efficiency and effectiveness, clarify
accountability, and ensure synchronization.

3.6 Policy and Coordinating Role of the Department of Shelter, Settlements and
Urban Development. The role of the Department is to support the
accomplishment of the sector vision, and, in particular, encourage
more opportunities to help improve the lives of the urban poor

ARTICLE II
DEFINITION OF TERMS
Section 4. Definitions. As used in this Act, the following terms shall mean:

4.1 Attachment - refers to the lateral relationship between the Department
and the attached agency or corporation for purposes of policy and
program coordination and as further defined under the administrative
code,

4.2 Buildings - refers to all types of structures that are planned, designed
and constructed in full accordance with law, for the primary purpose
and function of human habitation and for other related, supportive and
regulated occupancies.

4.3 Climate Change - a significant and lasting change in the statistical
distribution of weather patterns over periods ranging from decades to
millions of years. It may be a change in average weather conditions or
the distribution of events around that average e.g. more or fewer
extreme weather events. Climate change may be limited to a specific
region/s in the Philippines or its western or eastern seaboard, or may
occur across the entire country, the Pacific Basin or the West Philippine
Sea.


44

45

4.6

47

4.8

49

Climate Change-Adaptive ~ refers to the characteristic or quality of a
building and/or development arising from any action taken to
minimize the adverse effects or to take advantage of any beneficial
effects of climate change. It can involve:

a) building adaptation capacity (creating information and
conditions that enable adaptation actions to take place); or

b) delivering adaptation actions (taking actions that will help to
reduce vulnerability to climate risks or exploit opportunities).

Commission ~ refers to the reconstituted Housing and Land Use
Regulatory Board,

Devolution - the transfer of responsibility, authority and accountability
for the performance of defined functions from the national government
to local governments,

Disaster - refers to a natural or man-made hazard that has come to
fruition, resulting in an event of substantial extent causing significant
physical damage or destruction, loss of life, or drastic change to the
environment. A disaster is also defined as any tragic event with great
loss of lives and properties, stemming from events such as earthquakes,
floods, catastrophic accidents, fires, or explosions.

Disaster preparedness (or emergency management) = refers to an
interdisciplinary field of human endeavor dealing with the strategic
organizational management processes used to protect critical assets of
from hazard risks that can cause disasters or catastrophes, and to ensure
the continuance of the organization within their planned lifetime. Assets
are categorized as either living things, non-living things, cultural or
economic, Hazards are categorized by their cause, either natural ot
human-made. ‘The entire emergency management process is divided
into four (4) sub-fields to aid in identification of the processes, normally
dealing with risk reduction, preparing resources to respond to. the
hazard, responding to the actual damage caused by the hazard and
limiting further damage e.g, emergency evacuation, quarantine, mass
decontamination, etc., and returning conditions as close as possible to
the state before the hazard incident. The definition necessarily
encompasses the concepts of disaster response and mitigation.

Disaster-resilient - refers to the quality of a building/ structure and its
grounds/ site or by its plans and designs, generally characterized by the
reduced probability of failure of its architectonics, the reduced
consequences due to the failure of its architectonics, and reduced time to
the restoration of the architectonics to full operating/ beneficial status.


410

441

4.12

4.13

4.14

435

4.16

Disaster response - refer to acts or a series of actions taken by the public
and private sectors, based on an agreed plan of action, to specifically
address the needed relief efforts (encompassing aid, rescue and
recovery, etc.) and rehabilitation efforts (encompassing, reconstruction,
relocation and resettlement) in response to the effects of extreme/
extraordinary events such as super-typhoons, earthquakes, war, etc.

Extreme/ extraordinary events ~ refers to natural or man-caused events
that cause widespread destruction to property and/or loss of life; these
include earthquakes, tsunamis, volcanic eruptions, very strong
typhoons, heavy flooding, extensive fire (urban/ grass/ forest), war,
invasion, pestilence, epidemics and the like,

Informal structure/ settlements - refers toa building/ structure or a
group of dwellings on a public or private property that have been
illegally constructed, occupied, operated and maintained without
permits from the local government unit (LGU) Office of the Building
Official (OBO) and without any form of permission from the owner of
the property.

Informal settler ~ refers to an individual natural person who resides in
an illegally constructed, occupied, operated and maintained building or
dwelling that is sited within an informal settlement,

Urban land management - refers to the range of government
interventions, inclucling policies, incentives, regulation and titling, land
use planning and zoning, land development, public information and
conflict resolution that will promote the optimization and most efficient
use of urban land, including appropriate land valuation to achieve
efficiency in use, promote access, support economic productivity, ensure
sustainable development and protect individual rights.

Land use plan - refers to the document, formulated by the loc[i]al
governments in consultation with its stakeholders, that defines or
provides guidelines on the allocation, utilization, development and
management of all lands within a given territory or jurisdiction
according to the inherent qualities of the land itself and supportive of
economic, demographic, socio-cultural, administrative. and
environmental objectives. The land use plan essentially refers to the uses
for the surface of the land but must incorporate the parallel water use
and air use plans, as well as the subsurface plan, as applicable.

Public domain - shall refer to all portions of physical developments for
human occupancy or use as envisioned under this act, that shall only be
for the full use and enjoyment of the public and that shall never be used
for private benefit or enjoyment. This necessarily includes all forms of
development or use rights for all types of designated public spaces such
as parks and opens spaces, road rights-of-way (RROWs):and similar


4.17

4.18

4.19

4.20

4.21

4.22

4.23

4.24

rights-of-way (ROWs) for transportation and utilities, mandated legal
easements and waterways and the like,

Reconstruction - refers to the act or process of again building
something that was damaged or destroyed for whatever cause or
combinations of causes

Rehabilitation - refers to the act of restoring a development to a useful
and beneficial state, as through reconstruction.

Relocation ~ refers to the act of establishing or laying out an existing
development from an old location to a new site, usually occasioned by
the effects of an extreme/ ordinary event or by imminent threats or
hazards to the occupants of the existing development.

Resettlement « refers to the act or instance of a population settling or
being settled in another site

Secondary mortgage market - refers to the system, which entails
purchase, acquisition, discounting, or refinancing of retail loan and
mortgage packages or other similar instruments. Once purchased these
instruments in turn are traded in the financial market through the
issuance and or sale of bonds, promissory notes, debentures,
conveyances, and other financial instruments or participation therein,
backed by the same pool of mortgages and other assets.

Shelter - refers to the system and its components which establish the
residential quality of life, including housing, all classes of buildings or
vertical developments and their grounds/ settings and environs,
utilities, access to social services and other community facilities,
security, and other aspects related to an individual's residence.

Site plan - invariably referred to as the master plan, master
development plan or site development plan, refers to a physical
translation of the consolidated solution of the spatial problem to benefit
fa specific group of occupants/ users of a building or a group of
buldings and their respective bounded sites as settings for such
structures.

Sustainable design - refers to the philosophy of designing physical
objects, the built environment and services to substantially comply with
the principles of economic, social and ecological sustainability, without
compromising natural and other resources that must be bequeathed to
future generations.



4.25 Urban development - pertains to the process of occupation and use of
land or space for such activities as residential, industrial, commercial
and the like, necessary to carry out the functions of urban living. It
entails the building or rebuilding of 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.

4.26 Urban development planning - also called city planning or town
planning, is a process that involves the planning of diverse elements
that comprise an urbanized area, including its physical infrastructure,
environment, shelter, transportation, utilities and management of land
use and urban growth,

4.27 Urban renewal or regeneration - the process of planned renewal,
physical and socio-economic revitalization of outworn, old, derelict
areas of towns and cities, as well as preservation of historical assets
through redevelopment and rehabilitation.

4.28 Zoning ordinance - refers to the set of rules, regulations and specific
procedures and requirements, including the Official Zoning Map/s
(OZMs), duly promulgated, implemented and enforced by the local
government, that will guide land use, land development and the
development of the built environment as well as the conservation and
management of the natural environment, within the jurisdiction of the
local government,

ARTICLE III

DEPARTMENT OF SHELTER, SETTLEMENTS
AND URBAN DEVELOPMENT.

Section. 5, Creation of the Department of Shelter, Settlements, Urban
Development and Disaster Rehabilitation, There is hereby created the
Department of Shelter, Settlements, Urban Development and Disaster
Rehabilitation, hereinafter referred to as the Department.

Section 6. Powers and Functions. The Department shall perform the
following functions:

6.1 formulate the national urban development and shelter policy and

strategy in coordination and consultation with the stakeholders,

and ensuring its consistency with the national development plan;

6.2. formulate the urban development and shelter planning framework,
establish and operate a national urban development and shelter

10


63

64

6.6

67

68

69

planning system, and develop the necessary planning, housing and
building design guidelines, procedures and urban development
standards that will define and delineate the roles of all
stakeholders, and guide the planning, design, standards
localization, promulgation and enforcement of rules, and service
delivery programs of national government and local governments,
and facilitate private sector investment;

formulate shelter finance policies, and recommend and facilitate
the development of mechanisms that promote the establishment of
a self-sustaining private sector-led shelter finance system;

formulate and implement a shelter program for urban poor
communities that will promote their social and economic welfare,
and mobilize resources and encourage stakeholder participation in
the provision of urban services for the poor;

provide assistance to and capability building of local governments
in urban development, urban redevelopment and urban
management and in the planning and design of all classes of
buildings on land, water or air, their sites and environs, in support
of national policies and strategies in the sector, as well as
strengthen the role of independent component cities andl provincial
governments as the primary entities for urban development
planning and management at the local level;

develop and establish a sector performance monitoring and
assessment mechanism, and monitor and independently report on
the performance of the sector, national government agencies, and
local governments in shelter and urban development to enable
continuing improvements in sector policy and strategy
formulation;

delineate areas for priority development as urban renewal areas
and prepare programs for their regeneration;

support devolution and decentralization where local governments
in partnership with communities, non-government organization
and private groups assume the functions of urban renewal and
regeneration;

exercise administrative investigatory powers over _ local
governments to ensure their faithful compliance with shelter and
urban development laws, standards and guidelines, as well as their
judicious and fair application of local shelter and urban
development and [housing] shelter-related ordinances, and require
the submission by local governments of pertinent documents and

qt


6.10

6.11

6.12

6.13

6.14

6.15

6.16

617

information, as may be necessary in the judicious and effective
conduct of investigation;

develop and implement the comprehensive and : integrated
[housing] shelter program provided for under this act, to formulate
and enforce general and specific policies for [housing] shelter
development and resettlement and to promote [housing] shelter
development by providing technical assistance;

prescribe guidelines and standards for the reservation,
conservation and utilization of public lands identified for housing,
shelter, settlement and resettlement;

exercise the right of eminent domain or acquire by purchase
privately owned lands for purposes of [housing] shelter
development, resettlement and related services and facilities;

develop and undertake [housing] shelter development and/or
resettlement projects through joint ventures or other arrangements
with public and private entities;

discharge all responsibilities of the government, on behalf of the
department, as may arise from treaties, agreements, and other
commitments on [housing] shelter and resettlement to wh
signatory, including the determination of forms of assistance for
shelter and housing development to be extended through
multilateral or bilateral assistance programs;

isa

purchase, acquire, sell, discount, refinance, or otherwise deal in
home mortgages or participations therein under such terms and
conditions as may be prescribed by the board of directors of the
corporation and to own, lease, purchase or otherwise acquire, sell
or otherwise dispose of, property, real or personal, as may be
necessary and appropriate for the conduct of its business;

enter into and perform such contracts with any person or entity,
public or private, as may be necessary, proper or conducive to the
attainment or furtherance of the objectives and purposes of this act
and to receive donations, grants, and bequests 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;

promulgate such rules and regulations and to do and perform any

and all things as may be necessary and proper to carry out its
responsibilities, powers and functions under this act;

2


6.18 coordinate the policies and programs of attached agencies; and

6.19 perform such other related functions as may be mandated by law.

Section 7. Mandate. The Department shall be the primary national
government entity responsible for the management of shelter and urban
development, It shall be the main planning and policy-making, program
coordination, and performance monitoring entity for all housing and urban
development concerns.

ARTICLE IV

DEPARTMENT PROPER
Section 8. Composition. The Department shall consist of the Offices of the
Secretary, the Senior Undersecretary, undersecretaries and assistant secretaries,

the department services, bureaus, regional offices, the attached agencies, and
their constituent unit

Section 9. The Secretary. The Secretary shall:

a) advise the President on the promulgation of rules, regulations, and other
issuances relative to matters under the jurisdiction of the department;

b) establish policies and standards for the efficient and effective operations
of, the Department in accordance with the approved programs of the
government;

©) promulgate rules, regulations and other issuance necessary in carrying
out the Department's mandate, objectives, policies, plans, programs and
projects;

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

©) delegate authority for the performance of any administrative or
substantive functions to subordinate officials of the Department; and

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

‘The Secretary shall also serve as an ex officio, non-voting member of the

National Economic and Development Authority (NEDA) Board, the governing
boards of the Social Security System (555), the Government Service Insurance

3


System (GSIS) and the Public Estates Authority (PEA). The Secretary shall be a
member of the NEDA's Committee on Infrastructure (INFRACOM), of the Social
Development Committee (SDC) AND OF THE NDRRMC. The Secretary shall be
a member of the body authorized to formulate, prescribe, or amend guidelines
under Republic Act No. 6957, otherwise known as the Build-Operate-Transfer
Law. Further, the Secretary shall be the chairperson of the governing boards of
the National Housing Authority (NHA), the Home Development Mutual Fund
(HDME), the Home Guaranty Corporation (HDC) and the National Mortgage
Finance Corporation (NHMFC).

Section 10. The Senior Undersecretary, Undersecretaries and Assistant
Secretaries, - The Secretary shall be assisted by a Senior Undersecretary,
Undersecretaries and such Assistant Secretaries as may be necessary and allowed
by law or organizational policy of government. The Senior Undersecretary,
Undersecretaries and Assistant Secretaries shall be career offices and shall be
appointed by the President upon the recommendation of the Secretary. They
shall perform the powers and functions as provided for in Section 10 & 11,
ARTICLE 2, Book IV of the Administrative Code of 1987, The Secretary is hereby
authorized to delineate and assign the respective functional areas of
responsibility of the Senior Undersecretary, Undersecretaries and assistant
secretaries.

Section 11. Departmental Services Office. The Departmental Services
Office, under the Office of the secretary, shall be headed by an Assistant
Secretary, and shall have the following services: Financial Management Service,
Administrative Service, Legal and Legislative Service, Research and
Development Service, Public Relations and Information Service, and Information
and Communications Technology Service.

Section 12. Financial Management Service, The Financial Management
Service shall:

a) formulate the medium-term and annual expenditure program for the
Department and prepare, execute and administer the Department's
annual budget;

b) develop and implement approaches, methodologies and procedures for
ensuring efficiency in the allocation and utilization of budgetary and
other resources of the Department;

©) provide accounting, financial management, disbursement and
cashiering services to the Department and ensure the submission of the
appropriate financial and physical performance reports and financial
statements;

14


d) monitor and make recommendations on the financial and physical
performance of the Department's programs, projects and activities; and

e) perform such other related functions as may be assigned by the
Secretary.

Section 13. Administrative Service, The Administrative Service shall
provide the Department with efficient and effective services relative to personnel,
human resources development, records management and custodial work,
supplies and inventory management, procurement, physical assets management,
and other related administrative functions as may be assigned by the Secretary.

Section 14. Legal and Legislative Service. The Legal Service shall:

a) provide the Department, its officials and personnel with legal
counseling services;

b) provide assistance to the Secretary in handling cases affecting the
Department and in the investigation of administrative cases
involving Department personnel;

©) provide assistance to the Secretary and other Department
personnel in the preparation of legislative proposals and legal
issuances affecting the sector or the Department;

d) review and make recommendations to the Secretary on the legal
and legislative implications of plans, programs and activities
affecting the sector or the Department; and

e) perform such other related functions as may be assigned by the
Secretary.

Section 15. Research and Development Service. The Research and
Development Service shall:

a) formulate and implement a research and development agenda and
mobilize public and private sector resources to generate new
knowledge; develop and/or adopt new technologies; identify and
design new products and services, to support continuing improvement
in shelter, settlements and urban development regulation, production
and service delivery;

b) undertake continuing studies on the research and development
requirements of the shelter and urban development sector for the

15


ad

purpose of, but not limited to, policy development, planning and
standards formulation;

establish collaborative mechanisms with international and local
institutions, the academe and research institutions, industry, local
governments and national government agencies, and other entities and
individuals for knowledge sharing, research resources sharing,
technology transfer, commercialization, and useful exploitation and
industry use of research and development;

publish and disseminate research and development information to the
public to promote innovation in the various aspects of shelter,
settlements and urban development; and j

perform such other related functions as may be assigned by the
Secretary.

Section 16, Public Relations and Information Service. The Public
Relations and Information Service shall =

a)

b)

“

Formulate and implement a public information and relations program
that will promote public and stakeholder knowledge of and feedback on
the policies, regulations, incentives, opportunities and programs and
projects in the shelter and urban development sector;

Prepare, produce and publish materials to support such public
information and public relations program;

Establish collaborative networks for the dissemination of information
and generation of feedback on sectoral concerns; and

Perform such other related functions as may be assigned by the
Secretary.

Section 17. Information and Communications Technology Service. The
Information and Communications Technology Service shall:

a)

formulate and implement an information and communications
technology plan for the sector that will ensure the speedy generation,
organization, and processing of data and production of analytic
information to support planning, policy formulation, performance
monitoring and assessment and transaction processing systems of the
Department;

16


b) define the design of the integrated information systems and their
functional specifications, and undertake the management of the
development, operation and maintenance of applications;

©) establish collaborative electronic data sharing and communications
linkages with other departments, agencies, industry and local
government units to ensure the generation of comprehensive, up-to-
date and accurate data and promote their wider use in decision making:

d) undertake continuing user training and assistance to improve computer
literacy and promote the sophisticated use of information technology in
planning, analysis, transaction processing and decision making;

e) _ be responsible for the maintenance and provision of support services to
all Department employees in the use of information technology;

f) conduct continuing studies on best uses of information and
communications technology in the shelter and urban development
sector; and

@) perform such other functions as may be assigned by the Secretary.

Section 18, Advisory Committees. The Secretary shall have the power to
establish ad hoc advisory committees consisting of key representatives from
national government agencies, local governments, the private sector, urban poor
communities, academe, and other marginalized groups, to provide a forum for
stakeholder participation and dialogue on key housing and urban development
issues and policies.

Section 19. Staffing Pattern, The Secretary shall prepare and implement a
staffing pattern for the Department proper that shall be based on an assessment
of the personnel requirements of the entire Department. The remuneration
structure of the positions in the staffing pattern shall conform to the Salary
Standardization Law. The Department of Budget and Management shall fund in
full the staffing pattern of the Department. The internal structure and the specific
number of divisions that will comprise each of the above bureaus and units
under the Department shalll be determined and established by the Secretary.

ARTICLE V
PLANS, POLICIES AND MONITORING OFFICE
Section 20. Plans, Policies and Monitoring Office. The Plans, Policies and

Monitoring Office (PPMO), shall be headed by an Assistant Secretary and shall
be the central government policy, planning and monitoring think tank for

wv


housing and resettlement, and urban planning, development and regeneration.
The Office shall be responsible for the:

a)

b)

8)

)

formulation of national shelter policy including those for the planning
and design of buildings, their sites and environs, urban and regional
development policies, and resettlement policy;

updating of national urban development and shelter framework;
preparation of national shelter plan and agency corporate plan;

provision of internal planning services; reviewing policies, plans and
programs of key shelter agencies;

conduct of research and development in shelter, housing and building
technologies and trends and into shelter and urban development;

monitoring of the effectiveness of government policies and programs in
shelter delivery and urban development, including those of the attached
agencies;

development of performance indicators for shelter and urban
development, develop the performance indicators and program targets
for key shelter agencies and local governments;

monitoring of the performance of key shelter agencies! performance
against targets as well as the accomplishment of national shelter plan
and adherence to the urban development and housing framework;

provision of internal evaluation services to the Department;

integration of shelter and urban development data banks with those of
other government agencies; and

monitor the performance of local government programs in’ shelter and
urban development

Section 21. Bureaus under the PPMO. The Assistant Secretary for Plans,
Policies and Monitoring shall supervise the following:

21.1 Plans, Policies and Programs Bureatt. The Plans, Policies and Programs

Bureau shall:

a) formulate, review and update, in consultation with national
government agencies, local governments, private _ sector,
communities and other stakeholders, national plans, objectives and
policies for housing and urban development, specifically the

18


national urban development and housing framework and the
national shelter program;

b) establish and implement a national housing and urban
development planning system and coordinate the preparation and
timing of the sectoral plans of national government agencies with
the local development plans of local government units, ensuring
their consistency with the national urban development and
housing framework, the national shelter program and the
Medium-term Philippine Development Plan;

ojdesign programs for the provision of capacity building assistance to
local governments in shelter, housing and urban development
planning, investment programming, formulation of land use plans
and zoning ordinances, plan administration and performance
assessment;

d) formulate policies and design interventions that will directly
address the shelter concerns of the urban poor communities,
including the formulation of guidelines on eviction and relocation;

e) standardize planning and design data and sector information
requirements under a uniform data classification and storage and
through geographic information systems (GIS);

1) formulate foreign-assisted projects framework consistent with the
urban development and housing framework, national shelter
program and sector public investment program;

g) formulate an effective monitoring and performance evaluation
system and undertake the overall monitoring and performance
assessment of foreign-assisted housing and urban development
projects of the department, its attached agencies and other national
government agencies, local government units, and other entities;

h) establish project management units to manage and coordinate the
implementation of foreign-assisted projects of the Department,
where necessary;

i) formulate and implement a research and developmentagenda and
mobilize public and private sector resources to generate new
knowledge; develop and/or adopt new technologies; identify and
design new products and services, to support continuing
improvement in shelter and urban development regulation,
production, and service delivery;

19


»)

k)

y

undertake continuing studies on the research and development
requirements of the shelter and urban development sector, for the
purpose of, but not limited to, policy development, planning and
design standards formulation;

provide technical assistance to project management and
implementation offices and units of foreign-assisted projects of the
Department in facilitation of project implementation in accordance
with approved policies and schedules; and

perform such other functions as may be assigned by the Secretary.

21.2 Monitoring and Evaluation Bureau. The Monitoring and Evaluation
Bureau shall:

a) monitor and evaluate the performance of the sector particularly

on the consistency of programs, projects and activities of national
government agencies, local government units, industry and other
stakeholders with the national urban development and housing
framework, national shelter strategy, sector public investment
programs and the policies of the Department;

b) develop and operate a sector performance monitoring and

evaluation system and monitor, evaluate and independently
report on the performance of the sector and that of local
governments, industry, national government and other key
sector stakeholders;

recommend changes and coordinate action needed to ensure the
accomplishment of the objectives of the national urban
development and housing framework, national shelter strategy,
sector public investment programs and the policies of the
Department;

d) regularly monitor the corporate and operational performances of

8)

all the organic bureaus, attached agencies and corporations, and
make recommendations thereon;

formulate an effective monitoring and performance evaluation
systero and undertake the overall monitoring and performance
assessment of shelter, urban development and disaster
rehabilitation projects of the Department, its attached agencies,
local government units, and other entities; and

perform such other related functions as may be assigned by the
Secretary.

20


21.3 Shelter Finance and Development Bureau. The Shelter Finance and
Development Bureau shall:

a) formulate policies and implement schemes to encourage a
sustainable market-oriented shelter finance system that will
ensure greater private sector participation and adequate flow of
private funds into the shelter industry;

b) develop and implement incentive schemes to encourage greater
participation by the private sector, communities and other
stakeholders in the provision of shelter and shelter finance;

design the most appropriate mechanism to increase transparency
and efficiency in the use of public funds, including the creation
of a socialized housing fund or other mechanisms to administer
up-front grants or amortization support, and design the
implementing system and procedures for the program
maximizing the principles of decentralization and devolution;

@) undertake continuing studies for the improvement of the
institutional framework and administrative operations for shelter
finance;

©) recommend legislation to improve housing finance laws, policies
and mechanisms and develop initiatives for private sector and
community participation;

9 conduct continuing studies on improving housing finance,
resource generation and mobilization, and their implementing,
strategies and mechanisms;

g) administer homeless assistance or grants to LGUs, NGOs and
private communities for temporary or emergency housing, in
response to manmade or natural calamities; and

h) perform such other functions as may be assigned by the
Secretary.
ARTICLE VI
URBAN DEVELOPMENT AND HOUSING OPERATIONS OFFICE
Section 22. The Urban Development, Settlements and Shelter Operations Office
‘The Urban Development, Settlements and Shelter Operations Office (UDSSOO),

under the Office of the Secretary, shall be headed by an Assistant Secretary and
shall be responsible for the:

aa


a) development of the capacity of local governments to plan, implement
and monitor shelter, land management, urban development and urban
redevelopment programs;

b) development and administration of the national government subsidy
program for social housing;

©) provision of advice and guidance on the development of housing
finance market in the Philippines;

d) provision of technical and administrative support to management and
implementation of foreign-assisted projects at the central level,

Section 23, Bureaus under the UDSSOO. The Assistant Secretary for
Urban Development Settlements and Shelter Operations Office (UDSSOO) shall
supervise the following:

23.1 Housing and Land Use Regulation Bureau. The Housing and Land Use
Regulation Bureau (HLURB) shalll be responsible to:

a)

v)

formulate, review and update national policies and standards,
guidelines and regulations relative to land use for
implementation and enforcement by local government units;

develop urban development planning and urban development,
land use, zoning and urban management standards and
guidelines for the formulation of local development plans, land
use plans and zoning ordinances, and for local development
administration and urban management by local governments,
ensuring the integration of the spatial and socio-economic
aspects of development, promoting consultation and consensus,
and improving development quality;

formulate national standards and regulation relative to the
development of condominium and subdivision projects, which
will serve as guide for the enforcement of such regulation by the
provincial governments and independent cities;

formulate zoning and other land use control standards and
guidelines which shall govern the development and
implementation of local land use plans and zoning ordinances of
municipalities and component cities; the zoning components of
civil works and infrastructure projects of the national, regional
and local governments located within the geographical
jurisdiction of the province or independent component city;
subdivision or estate development projects of the public and
private sectors; and urban renewal plans, programs and projects;

22


8)

h)

Provided, that these standards and guidelines shall respect the
classification of public lands for forest purposes as certified by
the Department of Environment and Natural Resources;

monitor, evaluate, investigate and independently report on the
performance of local governments, the private sector, and other
stakeholders in the aspects of housing development, land use
management, and their regulation;

issue rules and regulations to enforce the land use policies as
prescribed by existing laws on land use and such other laws
regulating the use of land, including the regulatory aspect of the
Urban Land Reform Act and all decrees relating to the value of
land and improvements and their rental, in their respective
geographical areas of jurisdiction;

develop and install the housing and land use development
oversight monitoring system and undertake reserve compliance
monitoring functions deemed vital by the Secretary;

formulate and implement real estate consumer education and
protection programs;

adopt rules of procedure for the conduct of its business for
approval of the Secretary;

conduct public hearings relating to its functions;

promote, encourage, coordinate and assist private enterprises
and government agencies and instrumentalities in planning,
developing and coordinating shelter, settlements and urban
development plans and programs by furnishing legal, technical
and professional assistance;

develop and implement upon approval of the Secretary,
prototype projects supportive of ils regulatory functions either
by itself or as part of an inter-agency group or by contract with
such public or private entities;

charge and collect reasonable fees in the performance of its
functions;

issue orders after conducting appropriate investigation for the
cessation or closure of any use or activity and to issue orders to
vacate or demolish any building or structure that it determines to
have violated or failed to comply with any of the laws, executive
orders, presidential issuances and directives being implemented

23


by it either on its own motion or upon complaint of any
interested party;

0) administer oaths, summon parties to a controversy, issue
subpoenas requiring attendance and testimony of witnesses or
the production of such books, papers, contracts, records,
agreements and other documents of similar nature as may be
material to a just determination of the matters under
investigation or hearing conducted in pursuance of this Act;

p) regulate real estate trade and business;

g) register subdivision lots and condominium projects

1) issue license to sell subdivision lots and condominium units in
the registered unit

8) approve performance bonds and suspension of license to sell;

1) register dealers and maintain a list of real estate brokers and
salesmen duly registered and licensed by the Professional
Regulation Commission, who are lawfully engaged in the
business of selling subdivision lots or condominium units;

u) suspend or revoke registration of dealers, brokers or salesmen
for cause;

v) approve mortgage on any subdivision lot or condominium unit
made by the owner or developer;

w) grant permits for the alteration of plans and the extension of
period for completion of subdivision or condominium projects;

x) approval of the conversion to other lawful purposes of road
rights-of-way (RROWs) and open spaces found within a project
which have been donated to the city or municipality concerned;

y) hear and decide cases on unsound real estate business practices,
claims for refund against project owners, developers, dealers,
brokers or salesmen, cases of specific performance and other
related cases arising from contractual or statutory obligations of
owners, dealers, brokers, or salesmen towards lot or unit buyers;

2) impose administrative fines and/or penalties for violation of this
Act, and other laws implemented by the Department including
pertinent rules and regulations, orders, decisions and/or rulings;
provided that the maximum fines or penalties to be imposed
shall not exceed five hundred thousand pesos (P500,000.00);

24


provided further; that the Secretary may adjust such rates not
more than once every three (3) years;

aa) determine and order the payment by the losing party of the cost
of litigation incurred by the winning party and prescribe the
manner in which such payments shall be made;

bb) deputize any law enforcement agency in the execution of the
final orders, rulings or decisions;

cc) monitor the activities of metropolitan development authorities
(MDA) nationwide and report the same to the Secretary for
possible coordinative action; and

dd)perform such other related functions as may be assigned by the
Secretary.

23.2 Urban Land Management and Regeneration Bureau. The Urban Land
Management and Regeneration Bureau shall be responsible to:

a) formulate urban land management, renewal and regeneration
policies, strategies, concepts, and models; mobilize community
support and create the governance mechanisms, incentives and
disincentives and other modes of intervention to mobilize public
and private sector resources;

}) undertake continuing monitoring and assessment of urban land
management policies, programs, interventions and institutional
mechanisms and assess the urban land management, renewal
and regeneration needs and reform requirements to improve
policy and strategy formulation;

©) coordinate the urban land management, renewal and
regeneration activities of the national government to ensure
efficient use of public resources; prevent duplication and
overlapping, streamline procedures, encourage private sector
and community participation and improve services;

d) undertake studies on urban land management regeneration, and
apply best practices and lessons in improving policy,
government intervention and practice;

€) design programs for improving capacities of local governments
in urban land management, renewal and regeneration; and

) perform such other functions as may be assigned by the
Secretary.

25


Section 24. Decisions of the HLURB. Decisions, orders or resolutions of
the HLURB hearing officers shall be appealable to the Secretary within fifteen
(15) days from receipt of the decision. However the Secretary may motte proprio
review any decision or action of the HLURB before the same becomes final.

ARTICLE VII
OFFICE OF THE NATIONAL BUILDING OFFICIAL

Section 25. The Office of the National Building Official. The Office of the
National Building Official (ONBO), shall be headed by the Senior
Undersecretary, who shall discharge the following duties and responsibilities:

a) administration of all process, review and approval functions for the
development or redevelopment of all existing and proposed
buildings, their sites and environs sited on Philippine soil, water or
airspace;

b) development of the capacity of local governments to process,
review and approve the development or redevelopment of all
existing and proposed buildings, their sites and environs;

©) exercise administrative supervision and control over the LGU
offices of building officials (OBO) and the regional offices; and

d) the quasi-judicial powers and functions with respect to the process,
review and approval of the development or redevelopment of all
existing and proposed buildings, their sites and environs on
Philippine soil shall be exercised through the ONBO.

The Senior Undersecretary, in full representation of the Secretary, shall
serve as the National Building Official, primarily tasked with the crafting,
updating, interpretation, implementation, enforcement and compliance
monitoring of the National Building Code of the Philippines, its
implementing rules and regulations, guidelines, standards and manual of
procedure, as well as other derivative regulations, including referral codes
such as the fire, architectural, structural, electrical, mechanical, sanitation and
water codes and the accessibility law.

Section 26. Powers and Functions of the Office of the National Building
jal (ONBO). The ONBO shall:

a) formulate, review, update and promulgate national policies and
standards, guidelines and regulations relating to the planning,
design, operation, maintenance and administration of all buildings
on Philippine soil, water and airspace, their sites and environs, for

26


b)

a)

h)

implementation and enforcement by all national and local
government units;

continually develop standards and guidelines for the planning,
design, operation, maintenance and administration of buildings
and sites, ensuring the integration of the spatial and socio-
economic aspects of development, promoting consultation and
consensus, and improving development and redevelopment
quality;

formulate national standards and regulation relative to the
National Building Code, the Fire Code, the accessibility law, the
water and sanitation codes and their derivative regulations as well
as their respective referral codes, which shall all serve as guides for
the implementation and enforcement of such laws and regulations
by the loca! and national governments;

monitor, evaluate, investigate and independently report on the
performance of national and local government units, the private
sector, and other stakeholders in the various concerns and issues
relating to buildings and related vertical developments and the
attendant regulatory measures;

issue rules and regulations to enforce policies pertaining or relating
to the planning, design, operation, maintenance and administration
of buildings and their sites as prescribed by existing laws;

conduct public hearings relating to its functions;

promote, encourage, coordinate and assist private enterprises and
government agencies and instrumentalities in planning,
developing and coordinating building and vertical development
programs by furnishing legal, technical and professional assistance;

develop and implement upon approval of the secretary prototype
projects supportive of its regulatory functions either by itself or as
part of an inter-agency group or by contract with such public or
private entities;

charge and collect reasonable fees in the performance of ils
functions;

issue orders after conducting appropriate investigation for the
occupancy cessation, closure or demolition of any building/ site or
activity and to issue orders to vacate or demolish any building,
structure or site that it determines to have violated or failed to
comply with any of the laws, executive orders, presidential
issuances and directives being implemented by it, either on its own

7


motion or upon resolution of a complaint filed by any interested
party;

k) to administer oaths, summon parties to a controversy or dispute,
issue subpoenas requiring attendance and testimony of witnesses
or the production of such books, papers, contracts, records,
agreements and other documents of similar nature as may be
material to a just determination of the matters under investigation
or hearing conducted in pursuance of this act;

1) issue or approve pre-issued building, ancillary and accessory
permits relating to buildings and their sites;

m) conduct the preliminary review and presentation of building plans
and designs prior to their finalization;

n) maintain a list of professionals duly registered and licensed by the
Professional Regulation Commission, who are lawfully engaged in
the planning and design of buildings and their sites;

6) suspend or revoke building, ancillary and/ or accessory permits
for cause and reinstate the same as needed

p) grant permits for the alteration of building plans and designs and
the extension of the period for completion of such projects;

q) hear and decide cases on unsound building planning, design,
operation, maintenance or administration practices;

1) impose administrative fines and/or penalties for violation of this
Act, and other laws implemented by the Department including
pertinent rules and regulations, orders, decisions and/or rulings;
provided that the maximum fines or penalties to be imposed shall
not exceed five hundred thousand pesos (500,000.00); provided
further; that the Secretary may adjust such rates not more than
once every three (3) years;

8) to determine and order the payment by the losing party of the cost
of litigation incurred by the winning party and prescribe the
manner in which such payments shall be made; i

t) to deputize any law enforcement agency in the execution of the
final orders, rulings or decisions;

u) recommend to the Secretary and to LGUs the appointment of duly
qualified building officials or their removal for cause after due
process;

28


v) provide training and testing for applicant building officials;

w) monitor and rate the performance of building officials;

x) Perform such other related functions as may be assigned by the

Secretary.

Section 27. Decisions of the ONBO. Decisions, orders or resolutions of the
ONBO hearing officers shall be appealable to the Senior Undersecretary within
fifteen (15) days from receipt of the decision. However the secretary may mott
proprio review any decision or action of the HLURO before the same becomes
final, The decision of the Senior Undersecretary may be appealed to the Office of
the Secretary, whose decision shall be final.

Section 28. Bureaus Under the ONBO. The Senior Undersecretary for the
ONBO shall supervise the following:

28.1

28.2

28.3

National Building Code Bureau. The National Building Code Bureau
(NBCB) shall be responsible for the review, updating, development and
interpretation of the National Building Code, its implementing rules and
regulations, its guidelines and standards, its manual of procedure and its
referral codes; the NBCB shall also be responsible for monitoring
National Building Code compliances nationwide and for giving primary
advice to the Secretary on the resolution of issues pertaining to the
interpretation of the National Building Code;

Bureau of Building Design. The Bureau of Building Design (BBD) shall be
primarily responsible for the technical interpretation of the National
Building Code and its derivative regulations and shall be responsible for
the publication of such interpretations for use by all concerned state-
regulated professionals, The bureau shall set the standards and
guidelines for the planning, design, operation, maintenance and
administration of all public buildings. The bureau shall also be
responsible for the conduct of inspections nationwide to ensure
compliance with the National Building Code and its derivative
regulations; and.

Building Consultants Bureau, The Building Consultant's Bureau (BCB)
shall be the Secretary’s private sector advisory entity on the
implementation and enforcement of the National Building Code. It shall
also be an advisory entity to the Office of the Senior Undersecretary, the
NBCB and BBD.

29


Section 29. The Disaster Rehabilitation Office. The Disaster
Rehabilitation Office (DRO) of the Department will act as overall manager and
coordinator of the rehabilitation, recovery, and reconstruction efforts of all
government departments, agencies and instrumentalities in the affected areas, to
the extent allowed by law. The DRO shall be tasked with the following:

29.1 coordinate with the National Disaster Risk Reduction and Management
Council (NDRRMC) and its member agencies and consult with the
concerned local government units ({.GUs) in the formulation of plans
and programs for the rehabilitation, recovery, reconstruction and
redevelopment of the affected arcas, including an overall strategic
vision and integrated short-term, medium-term and long-term
programs, which shall be submitted by the Secretary for approval;

29.2 propose funding support for the implementation of the approved plans
and programs. The DRO shall likewise exercise oversight over the
relevant government agencies with respect to the implementation of the
pertinent plans and programs;

29.3 call upon any department, bureau, office, agency or instrumentality of
the government, including government-owned and controlled
corporations (GOCCs), government financial institutions (GFls) and
LGUs and request non-government organizations, the private sector,
and other entities, for assistance as the circumstances may require in
carrying out its mandate;

29.4 engage the assistance of consultants, experts, and professional advisors
whenever necessary, subject to applicable government rules and
regulations; and

29.5 submit to the Secretary the status reports on the implementation of the
approved plans and programs as often as the Secretary may require,
and perform such other functions and activities as may be necessary to
carry out the provisions of this Act, or as the Secretary may direct.

ARTICLE VIL

OFFICE FOR REGIONAL OPERATIONS

Section 30. The Office for Regional Operations. The Office for Regional
Operations shall exercise supervision and control over the Department's
Regional Offices, described in Section 25 hereof. It shall be responsible for the
provision of public information, monitoring of LGU performance, development
of a regional-central reporting and work flow processes, provision of government
assistance to LGUs, administration of subsidy and other regional operations.

30


Section 31. Regional Offices. The Department is hereby authorized to
establish, operate and maintain a Department-wide regional office in each of the
country's administrative regions. Each Regional Office shall be headed by a
Regional Director and shall have, within its administrative region, the following

°)

9)

h)

implement laws, policies, plans, rules, regulations and programs of the
Department in the concerned region;

Implement the local government housing and urban development
capacity building programs of the Department in their respective regions;

Ensure the consistency of the over-all regional development goals and
programs with the National Urban Development and Housing
Framework, and the National Shelter Program, and vice-versa; similarly
between Department programs and regional plans of other government
agencies;

Review all local development and land use plans of provinces and
independent cities for purposes of ensuring compliance with laws within
thirty (30) days from receipt thereof;

Undertake the independent monitoring and review of sector performance
and the performance of national government, local governments, industry
and other stakeholders in the regions, and recommend appropriate action
thereon;

Monitor, investigate and assess compliance to approved subdivision,
condominium, building and site development plans; and for the purpose,
impose fines/penalties and, on its own motion or upon complaint of any
interested party, after the conduct of appropriate investigation, issue
notices of violations and Cease and Desist Orders for noncompliance
thereof;

Coordinate the shelter and urban development planning process in the
regions to ensure the delivery of various activities and services such as
lilling, issuance of permits for subdivision, condominium, building and
site development plans, the provision of social and livelihood services,
and other services related to housing and urban development;

Maintain a regional database and information system for the sector in the
region;

Undertake a public information program to provide the industry, general

public and other stakeholders with information on national and local
government policies, regulations and programs, as well as to establish a

31


consultative mechanism to serve as a forum for continuing planning and
evaluation of settlement programs and projects;

}) Implement, monitor and evaluate policies, rules and regulations
governing resettlement, relocation/eviction or demolition due to for
government projects which will involve the eviction or demolition of
structures of homeless and underprivileged citizens, and recommend
appropriate action thereon;

k) Ensure that local government units institute preventive measures against
informal settling and address other concomitant problems, such as rural
to urban migration;

1) Monitor and evaluate the implementation of government's programs and
projects which would require housing provision and/or relocation and
resettlement activities, and recommend appropriate action thereon;

mm) Administer homeless assistance advances/grants to LGUs, NGOs and
private communities for temporary and emergency housing, in response
to man-made and natural calamities;

n) n) Implement innovative, clearly defined, transparent and on-budget
housing subsidy mechanisms for the homeless and underprivileged in the
regions to enhance accessibility to shelter;

0) Registration and incorporation of home-owners associations and
condominium corporations; and

p) Perform such other functions as may be assigned by the Secretary.

ARTICLE IX

ATTACHED AGENCIES

Section 32. Attached Agencies and Corporations. The following agencies
and corporations are hereby attached to the department for policy and program
coordination:

32.1. National Housing Authority (NHA);

32.2 Housing Guarantee Corporation (HGC);

32.3. National Home Mortgage Finance (NHMFC)

32.4 Home Development Mutual Fund (HDME); and

32.5 Housing and Urban Development Adjudication Commission

(HUDAC)

32


The National Risk Reduction and Management Council (NDRRMC) shalll not be
under the administrative control and supervision of the Department, However,
the Department and the NDRRMC must collaborate on rehabilitation efforts in
which the Department must be the lead agency.

Section 33. National Housing Authority (NHA). The National Housing
Authority shall remain as the sole national government arm for shelter
production and shall institute such programs and approaches that will promote
housing provision for low-income families. It shall encourage private sector
participation in socialized housing production and assist local governments in
building capabilities for the implementation of local housing programs and
projects.

Section 34. Home Guarantee Corporation (HGC). The Home Guaranty
Corporation shall concentrate on its mandate of providing guarantees to: (a)
encourage the flow of private funds for mass housing development and
homebuyers’ financing; and (b) support the development and sustainability of
the secondary mortgage market for housing. The Corporation shall conduct
studies and initiate activities for greater private sector participation in the short
term and for its eventual privatization over the medium term.

Section 35. National Home Mortgage Finance Corporation (NHMEC). The
National Home Mortgage Finance Corporation shall focus on its designated
function as the secondary mortgage institution of the country. To achieve this, the
Corporation shall implement measures necessary to enhance its organizational
capability and financial viability, including but not limited to, improvement of
collection efficiency, restructuring of management information systems, and
upgrading of its technical capability. The Corporation shall conduct studies and
initiate activities for greater private sector participation in the short-term and for
its eventual privatization over the medium term.

Section 36, Home Development Mutual Fund (HDMEF). The Fund shall
continue its function of providing a savings system for public and private sector
employees with housing as its primary investment, as provided for in P.D. No.
1752, as amended by E.O. No. 35 and Republic Act No. 7742,

Section 37. Nature of Attachment, The Secretary shall in concurrent
capacity, be the Ex-Officio Chairperson of the governing boards of the attached
corporations, namely, the NHA, the HGC, the NHMEC and the HDMP.

33


ARTICLE X

HOUSING AND URBAN DEVELOPMENT
ADJUDICATION COMMISSION

Section 38. Renaming and Reconstitution of the Housing and Land Use
Regulatory Board, The Housing and Land use Regulatory Board is hereby
renamed and reconstituted as the Housing and Urban Development
‘Adjudication Commission (HUDAC), hereinafter referred to as the Commissi

Section 39, Power and Authority. The Commission shall have the
following powers and anthorities:

39.1, To promulgate rules and regulations governing the hearing and
disposition of cases filed before it and those pertaining to its internal
functions and such other regulations as may be necessary to carry
out the purposes for which it is established: Provided, that it shall not
be bound by technical files of procedure but shall proceed to hear
and decide all cases, disputes or controversies in a most expeditious
manner, employing all reasonable means to ascertain the facts of
every case in accordance with justice, equity and merit;

30.2. To administer oaths, summon parties to a controversy, issue
subpoenas requiring attendance and testimony of witnesses or the
production of such books, papers, contracts, records, agreements and
other documents of similar nature as may be material to a just
determination of the matter under investigation or hearing
conducted in pursuance of this Act;

303. To issue writs, orders to execute demolition, or seizure or closure of
property in accordance with its decision; j

30.4, To issue preliminary or permanent injunctions, whether prohibitory
or mandatory, in all cases in which it has jurisdiction, and in which
the pertinent provisions of the Rules of Civil Procedure shall apply;

39.5. To hold any person in contempt, directly or indirectly, and impose
appropriate penalties thereof;

30.6, To impose administrative fines and/or penalties for violation of this
‘Act, the Urban Development and Housing Act and other laws
implemented by the Commission, including pertinent rules and
regulations, orders, decisions and/or rulings: Provided, that the
maximum fines or penalties to be imposed shall not exceed Five
Hundred Thousand Pesos (P500,000.00): Provided further, that the

34


Commission may adjust such rates not more that once every three (3)
years;

30.7, To determine and order the payment by the losing party of the cost
of the litigation incurred by the winning party and prescribe the
manner in which such payments shall be made;

39.8. To deputize any law enforcement agency in the execution of its final
orders, rulings or decision; and

39.9, To exercise such other powers as implied, necessary, or incidental to
carrying out the express powers granted to the Commission or to
achieve the objectives and purposes of this Act, and other laws
implemented by the Commission.

The Chairperson, aided by the Executive Clerk of the Commission, shall
have administrative supervision over the Commission and its regional branches
and all its personnel including the Housing and Land Use Arbiters.

Section 40. Composition and Qualification of Members. The Commission,
shall be composed of a Chairperson and fourteen (14) full-time Members to be
appointed by the President, majority of whom shall be members of the Philippine
Bar while the others shall have a background or experience in urban
development planning, development and implementation of shelter programs for
urban poor communities, management, architecture, civil engineering, and other
related fields. They must have been engaged in the practice of their respective
professions or specialization or employed in an appropriate office for a period of
at least five (5) years. In addition, no person who has been convicted of a crime
involving moral turpitude shall be appointed as members of the commission.

‘The Commission may sit en banc or in five (5) divisions, each composed of
three (3) members. Subject to the penultimate sentence of this paragraph, the
Commission shall sit en banc only for purposes of promulgating rules and
regulations governing the hearing and disposition of cases before any of its
divisions and regional offices and formulating policies affecting its
administration and operations, The Commission shall exercise its adjudicatory
and all other powers, functions and duties through its divisions. Of the five (6)
divisions, the first, seconds and third divisions shall handle cases coming from
the National Capital Region and parts of Luzon. The fourth and fifth divisions,
cases from the Visayas and Mindanao respectively; Provided, That the
Commission 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 and such transfer will not
expose litigants to unnecessary additional expense: Provided further, that the
Commission shall designate one (1) division to hear and resolve cases involving
eviction and relocation of urban poor communities. Each division of the

as


Commission shall have exclusive appellate jurisdiction over cases within its
territorial jurisdiction.

The concurrence of two (2) Commissioners of a division shall be necessary
for the pronouncement of judgment or resolution, Whenever the required
membership in a division is not complete and the concurrence of two (2)
Commissioners to arrive at a judgment or resolution cannot be obtained, the
Chairperson shall designate such number of additional Commissioners form
other divisions as may be necessary.

‘The conclusions of a division in any case submitted to it for decision shall
be reached in consultation ordained therein. A certification to this effect signed
by the Presiding Commissioner of the division shall be issued and a copy thereof
attached to the record of the case and served upon the parties, The Chairperson
shall be the Presiding Commissioner of the first division and the four (4) other
senior members shall be the Presiding Commissioners of the second, third, fourth
and fifth divisions, respectively. In the case of the absence or incapacity of the
Chairperson, the Presiding Commissioner of the Second Division shall be Acting
Chairperson.

The Chairperson, aided by the Executive Clerk of the Commission, shall
have Administrative supervision over the Commission and its regional branches
and all its personnel including the Executive Housing and Land Use Arbiters.

The Commission, when sitting en banc shall be assisted by the Executive
Clerk and, when acting through its Divisions by the Division Clerk, respectively,
who shall perform such similar or equivalent functions and duties as are
discharged, by the Clerk of Court and Deputy Clerk of Court of the Court of
Appeals.

Section 41. Term and Compensation. The Members of the Commission
shall be appointed for a term of six (6) years without prejudice to reappointment
after said term shall have expired. ‘The Chairperson and Members of the
Commission shall receive an annual salary at least equivalent to that of, and be
entitled to the same allowances and benefits as, an Undersecretary and Assistant
Secretary of the Department, respectively.

‘The incumbent full-time Commissioners of the present HLURB shall
remain in the office unless they opt to avail of the retirement and separation
benefits provided in Section 50 of this Act or are sooner removed for cause.

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Seciton 42. Housing and Land Use Arbiters, Qualifications, Powers and
Functions. The qualifications, powers and functions of the housing and Land Use
Arbiters shall be as indicated hereunder:

42.1. The Secretary, upon recommendation of the Chairperson of the
Commission, shall appoint Housing and Land Use Arbiters as the needs
of the service may require for each administrative region/

42.2. No person shall be appointed Housing and Land Use Arbiter unless
he/she is a member of the Philippine Bar with at least three (3) years
experience or exposure in the field of real estate and land use
development cases;

42.3, The Housing and Land Use Arbiters shall receive an annual salary at
least equivalent to that of, and be entitled to the same allowances and
benefits, as an Assistant Regional Director of the Department.

42.4. The Housing and Land Use Arbiters shall have original and exclusive
jurisdiction to hear and decide cases enumerated in Section 35 of this Act.

Section 43. Jurisdiction, The Housing and Land Use Arbiters shall exercise
original and exclusive jurisdiction to hear and decide cases involving the
following:

43.1 On Real Estate
a) Unsound and fraudulent real estate business practices;

b) Claims for refund against project owners, developers, dealers, brokers
and salespersons;

©) Specific performance of contractual and statutory obligations filed by
buyers of subdivision lots or condominium units against the owner,
developer, dealer, broker or salespersons;

) Squatting on subdivision lots;

¢) Eviction and relocation of squatter communities;

f) Disputes involving buyer-financing agreements with any financing
institution for condominium, subdivision projects;

g) Disputes involving easements or right of way arising from the
development of subdivision and housing projects;

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h) Disputes between : (1) land owners and developers, and (2) banks and
developers, whenever the interest of buyers of subdivision lots, or
house and lots, or condominium units are involved;

i) Releases of mortgage titles of subdivision lots and condominium
units;

}) Disputes involving easement of waterways, drainage, connections and
light and view arising from the development of subdivision and
housing projects;

Kk) Disputes involving homeowners associations and condominium
corporations, whether intra corporate or inter corporate;

1) Claims of broker/salesmen for unpaid commissions for
condominium/ sub-division projects;

m) Other related cases arising from contractual or statutory obligations of
owners, dealers, brokers or salesmen towards lot or unit buyers; and

n) Regulation of the relationship between residential lessors and lessees

that are governed by the Rent Control law.

43.2 On Shelter and Land Use Planning and Regulation - Decisions and
actions of:

a) local housing boards or provincial governments, highly urbanized
independent component citics and the cities and municipalities of
Metro Manila;

b) regional and local physical planning and zoning bodies, including
zoning boards of adjustment and appeals on complaints alleging,
violations of local zoning ordinances not involving land conversion
issues; and (3) provincial and component independent city
governments with respect to applications relative to perm
Ticenses issued and issuance of Cease and Desist Orders and
administrative fines.

s and

43.3 On Shelter Rights - Violations of Administrative rules and regulations
implementing Sections 18 and 28 of Republic Act No. 7279, otherwise
known as the Urban Development and Housing Act. The Commission
shall have exclusive appellate jurisdiction over all cases decided by the
Housing and Land Use Arbiters.

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Section 44. Criminal Prosecution, Criminal prosecution for violation of
housing laws and regulations shall be instituted before regular courts with
appropriate jurisdiction,

Section 45. Sheriff. The Commission shall appoint a sheriff or such
number of sheriffs in its central and regional branches. No person shall be
appointed to the position of sheriff unless he is a second grade civil service
eligible and has finished at least two (2) years of college. The sheriff shall be
responsible for the service or execution of all writs, summons and orders and
other processes of the Commission.

Section 46. Appearances. A lawyer appearing for a party is presumed to
be properly authorized for that purpose. A non-lawyer may appear before the
Commission's Housing and Land Use Arbiter only if: a) he/she represents
him/herself as a party to the case; or b) he/she represents his/her organization
or members thereof: Provided that he/she shall be made to present written proof
that he/she is properly authorized.

Section 47. Appeals, Decisions, awards or orders of the Housing and Land
Use Arbiters shall be final and executor unless appealed to the Commission
within ten (10) calendar days from receipt thereof. 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
Housing and Land Use Arbiter in rendering the questioned decision,
award or order;

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

©) If made purely on questions of law; and

d) If serious errors in the findings of facts are raised that would cause grave
or irreparable damage or injury to the appellant.

Decisions of the Commission can be appealed only to the Court of Appeals
by way of a Petition for Review within fifteen (15) days from notice of judgment,
award or order pursuant to Rule 43 of the 1997 Rules of Civil Procedure.

Section 48. Prohibition Against Restraining Order or 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
Commission or its Housing and Land Use 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, shelter, buildings, settlements, urban development, disaster
rehabilitation and just and humane eviction or demolition procedures.

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Section 49. Pending Cases, All cases pending in court arising from or in
connection with the implementation of pertinent laws on housing, shelter,
buildings, settlements, urban development, disaster rehabilitation and just and
human eviction/ demolition procedures shall continue to be heard, tried and
decided to their finality.

ARTICLE XI

FUNCTIONS OF LOCAL GOVERNMENTS IN RELATION
TO SHELTER, SETTLEMENTS, BUILDINGS AND URBAN DEVELOPMENT

Section. 50. Continuing Devolution of Functions to Local Governments.
‘The national government, through the Department of Shelter, Settlements, Urban
Development and Disaster Rehabilitation, ond in consultation with the
Department of Interior and Local Government and the local governments, shall
formulate and implement a continuing devolution program for shelter and urban
development sector functions, responsibilities, authority and accountability, in
accordance with the principles of sector governance stipulated in this Act.

Section 51. Devolution of Rule Enforcement Functions to Provinces and
Independent Component Cities. The following regulatory functions of the
Housing and Land Use Regulatory Board as provided for in Executive Order No.
648, dated 07 February 1981, as amended by Executive Order No. 90 dated 17
December 1986, are hereby devolved to provincial governments, independent
component city governments and the cities and municipalities of the
Metropolitan Manila Area; Provided, that all rule promulgation and enforcement
functions and activities of local government units, are in accordance with the
prescribed regulatory framework and policies as well as guidelines issued by the
Department of Shelter, Settlements, Urban Development and Disaster
Rehabilitation:

51 Review, evaluate and approve or disapprove comprehensive local
development plans, local land use plans and zoning ordinances of
component cities and municipalities and building and site plans and
designs: the zoning components of civil works and infrastructure
projects of national, regional and local governments; subdivision,
condominium, building, site or estate development projects
including industrial estates, of the public and private sectors; and
urban renewal and regeneration plans, programs and projects;
issuance of development, building, ancillary and accessory. permits;
Provided, that the review and approval of such comprehensive local
development plans, local land use plans and zoning ordinances and
estate, subdivision, building and site plans and designs shall respect
the classification of public lands for forest purposes as certified by

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the Department of Environment and Natural Resources; and
Provided that the classification of specific alienable and disposable
lands by the Bureau of Lands shall be in accordance with the
relevant zoning ordinance of the local government where such lands
are located; and the provisions of R.A. No. 6657 with regard to the
lands distributed, and issued notice of coverage under the
Comprehensive Agrarian Reform Program (CARP) as certified by
the Department of Agrarian Reform; Provided, further, that nothing in
this Section shall be construed as repealing, amending or modifying,
in any manner, the provisions of R.A. No, 6657;

51.2. Registration of subdivision lots and condominium projects; issuance
‘of licenses to sell subdivision lots and condominium units in the
registered units; approval of performance bond and the suspension
of license to sell; approval or mortgage on any subdivision lot or
condominium unit made by owner or developer; granting of permits
for the alteration of subdivision and condominium plans and designs
and the extension of period for completion of subdivision or
condominium projects, subject to the standards and requirements of
the Department;

51.3 Impose fines and penalties as may be allowed under existing laws or
Department policies, and guidelines;

51.4 Conduct public hearings and consultations on the promulgation of
regulation;

51.5 Formulate and adopt rules and procedures for rule enforcement;
51.6 Provide information to the Department necessary in the monitoring
of local urban development and Shelter Programs and Disaster
Rehabilitation Projects in accordance with the report content and
formatting guidelines of the Department; and
51.7 Perform such other related regulatory functions as may be provided
for by law.
ARTICLE XIL
TRANSITORY PROVISIONS
Section 52. Transfer of Functions. The following functions are hereby

transferred as stipulated hereunder:

52.1. The rule, standards and guidelines formulation functions of the
Housing and Land Use Regulatory Board is hereby transferred to the

a1


Department, while its rule promulgation and enforcement functions
are hereby transferred to the provincial governments, independent
component cities and to the cities and municipalities comprising the
Metropolitan Manila Area.

52.2 The registration of incorporation of homeowners associations and
condominium corporations are hereby transferred to the regional
offices of the Department,

Section 53. Formulation of Regulatory Framework and Devolution
Implementation Program. The Department shall formulate a regulatory
framework and design the necessary policies, standards, guidelines and
procedures fo guide the rule promulgation and enforcement functions of
provincial governments, independent component cities and the cities and
municipalities of the Metropolitan Manila Area. The Department shall formulate
and implement a devolution plan which shall include a nmwulti-year capacity
building program, and technical assistance services for the institutional capacity
of provincial governments, independent component cities and the cities and
municipalities of the Metropolitan Manila Area and the gradual transfer of
regulatory functions, and the turnover of the pertinent records and transactions
to the pertinent local governments which should be completed within Five (5)
years from the effectivity of this Act.

Section 54, Abolition and Conversion of Agencies. The following
dispositive actions shall be implemented within six (6) months from the
effectivity of this Act:

54.1, The Housing and Urban Development Coordinating Council. Its
functions, assets, equipment, funds, choses in action, records and
perotinent transactions, shall be transferred and absorbed by the
Department subject to its staffing patter and the selections process as
prescribed under Republic Act No. 6656 on the Rules on
Government Reorganization.

54.2 The Housing and Land Use Regulatory Board is hereby converted to
and renamed as the Housing and Urban Development Adjudication
Commission. Its assets, equipment, funds, personnel, pertinent
records, and pertinent transactions of the Board are hereby
transferred to the Commission. The regional offices, staffing,
operating systems and procedures and new budget within six (6)
months ftom the effectivity of this Act.

Section 55. Dissolution of Existing Housing Agencies and Corporations.
To fully integrate all the functions and activities of the Government, as well as
minimize duplication of work and thus achieve economy, efficiency and
effectiveness of operation in the management of the Department of Shelter and
Urban Development, the Housing and Urban Development Coordinating

42


Council (HUDCC), the Presidential Committee for Mass Housing, the National
Housing Authority (NHA), The National Home Mortgage Finance Corporation
(NHMFO), the Home Insurance Guaranty Corporation (HIGC) and the Housing
and Land Use Regulatory Board (HLURB) are hereby abolished within six (6)
months from the effectivity of this Act subject to Section 33 of this Act, with its
qualified personnel to be absorbed by the Department

The National Building Code Development Office, the Bureau of Design
and the Board of Consultants, all of the Department of Public Works and
Highways shalll also be transferred to the ONBO of the Department.

Section 56. Transfer of Power and Functions. The powers and functions of
the abolished agencies and corporations and transferred offices are hereby
conveyed to the Department,

The powers vested in the DPWH Secretary as the National Building
Official under P.D. No. 1096 are also hereby transferred to the Secretary of the
Department of Shelter and Urban Development.

Section 57. Transfer of Rights, Assets and Liabilities. The Department
shall, by virtue of this Act, be subrogated to all rights and assume all the
liabilities of the Housing and Urban Development Coordinating Council,
Presidential Commission on Mass Housing and all other agencies, corporations
of the government whose functions and powers have been transferred to the
Department, and all their pertinent funds, records, property, assets, equipment
and such personnel, as may be necessary, including unexpended portions of their
appropriations and/or allocations, all contracts and liabilities of said offices,
agencies, and government units are hereby transferred to and assumed by the
department and shall be acted upon in accordance with the auditing code and
other pertinent laws, rules, and regulations,

Section 58. Staffing Pattern. The Secretary shall, with the end in view of
creating a lean but effective organization, prescribed and approved the
organizational framework and staffing pattern within sixty (60) days after the
approval of this Act. The organization, staffing, and compensation standards
shall be based on existing budgeting and compensation rules and regulations.

The authorized positions created therein shall be filled by regular
appointments by the President or the Secretary as the case may be: provided, that,
in the filling of positions created, preference shall be given to the personnel of
abolished agencies: provided, however, that such individuals comply with the
qualification standards set by the Civil Service Commission for the positions that
they shall be appointed to: provided, finally, that, if such individuals possess the
same qualifications, seniority shall be given priority.

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Section 59. Positions in the Departinent Requiring the Services of
Registered and Licensed Architects. Upon the effectivity of this Act, all existing
and proposed positions in the Department, whether career, permanent,
temporary or contractual and primarily requiring the services of an Architect
shall be filled only by registered and licensed architects, to fully comply with Sec.
35 of R.A. No. 9266.

Similarly, positions in the Department requiring the services of registered
and licensed environmental planners shall be filled only by such State-regulated
professionals.

Section 60. Transition Period, All transfer of functions, assets, funds,
equipment, property, transactions and personnel in affected national government
agencies; and the formulation and implementation of the internal organic
structures, staffing patterns, operating systems and revised budgets of the
Department, shall be completed within six (6) months; provided, that the officers
and employees of the abolished offices, agencies, and government units shall
continue, to assume their posts in holdover capacity until such time as the
Department has been organized and the new officers and employees have been
appointed pursuant to the provisions of this act.

Section 61. Impact Mitigation Strategy. The Secretary shall formulate and
implement respective impact mitigation strategies of the Department and its
attached agencies/corporations that will minimize adverse effects on existing
personnel of the creation or modification of organization structures and staffing
of the Department and its attached agencies, in accordance with the pertinent
provision of the Civil Service Code, the Administrative Code, and pertinent
budgetary rules and regulations. Employees separated from the service as a
result of the abolition or reorganization under the provisions of this Act shall,
within one (1) month from their separation, receive a separation pay equivalent
to one hundred fifty percent (150%) of their monthly basic salary for every year
of service in the government: Provided that those who are qualified to retire under
existing retirement laws shall be allowed to retire and be entitled to all benefits
provided under said retirement laws and shall receive said benefits within ninety
(90) days from their separation from service,

Section 62. Gratuity. Employees separated from the service as a result of
the abolition or reorganization under the provisions of this Act shall, within one
(1) month from their separation, be paid the money value of his/her accumulated
vacation and sick leave, and such retirement gratuity as may be due him/her
under existing retirement laws. Any of the employees and laborers who do not
qualify under any existing retirement law shall be paid one hundred fifty percent
(150) of their monthly basic salary for every year of service in the government,
payable in lump sum; provided however that those who avail of such privileges
shall start their government service anew if subsequently absorbed and
government owned entity.

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Section 63. Formulation of Implementing Rules and Regulations and
Other Implementation Mechanisms. The following implementing rules and
regulations (IRR) shall be prepared and issued as indicated hereunder:

63.1, The Implementing Rules and Regulations for the operationalization
of the Commission and the conversion of the HLURB into the
Commission, within sixty (60) days upon approval of this Act.

63.2 The Implementing Rules and Regulations for the cration of the
Department, the abolition of the HUDCC and the transfer and
refocusing, as the case may be, of the attached agencies, within sixty
(60) days upon approval of this Act.

63.3. The Promulgation of the rules and regulation governing the hearing
and dispositions of cases and other adjudication functions of the
Commission, within six (6) months after the constitution of the
Commission.

63.4, The Urban Development Planning System, and the corresponding
implementing guidelines, to be completed and operational within six
(6) months upon approval of this Act and the updated Housing and
Urban Development Framework and Plan completed within one (1)
year upon approval of this act

ARTICLE X11

IMPLEMENTATION AUTHORITY AND FUNDING

Section 64, Implementing Authority, The Secretary of the Department 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

Section 65. Authority if Attached Agencies to Reorganize, The boards of
attached corporations and agencies and the [Chairperson and Commissioners]
Unit Heads of the Department are hereby authorized to make the necessary
changes and improvements in their respective internal formal structures.
Operating systems, staffing and budget configuration in order to implement the
newly mandated or refocused mandates and functions stipulated in this Act.

Section 66. Protection of Security of Tenure by Affected Personnel. The
existing authority granted pursuant to the preceding two Sections shall be
governed by the provision of R.A, No, 6657 and the relevant civil service rules

45


and regulations in order to protect the security of tenure of personnel who shall
be affected by the reorganization.

Section 67. Funding. The amount in excess of the unreleased balance of the
budgets of the Department which is needed for the initial implementation of this
‘Act, as may be determined by the Secretary in the case of the Department of
Shelter and Urban Development shall be released by the Department of Budget
and Management within thirty (0) days upon submission by the Department
and the Commission of their respective budget estimates.

ARTICLE XIV

MISCELLANEOUS PROVISIONS

Section 68. Mandatory Review of the Implementation of this Act. The
Department shall conduct and submit a report to Congress a review of the
implementation and enforcement of this Act, at the end of the second. year after
the effectivity of this Act for implementation at the national government level,
and at the end of the fifth year with respect to the devolution of functions to local
governments

Section 69. Enforcement of the Act. It shall be the primary duty of the
Department to effectively enforce the provisions of this Act. All duly constituted
law enforcement agencies and officers of national, provincial, city or municipal
government or of any political subdivision thereof, shall, upon the call or request
of the Department, render assistance in enforcing the provisions of this Act and
to prosecute any person violating the provisions of the same,

‘The Secretary of Justice or his/ her duly designated representative shall
act as legal adviser to the Department and shall render legal assistance as may be
necessary in carrying out the provisions of this Act.

Any person may bring before the Department or the aforementioned
officers of the law, complaints relating to violations of this Act committed by any
person or party.

‘The Department shall file the appropriate charges through the concerned
prosecution office in accordance with law and the rules of court.

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Section 70. Repealing Clause. All laws, ordinances, rules, regulations, and
other issuances or parts thereof, which are inconsistent with the provisions of this
Act, are hereby repealed or modified accordingly.

Section 477 of R.A. No. 7160 is expressly repealed to permit the Secretary
to appoint or re-appoint duly-qualified building officials at all local government
units.

‘The inconsistent provisions of P.D. No. 1096, otherwise known as the 1977
National Building Code of the Philippines, or its successor law, particularly those
dealing with the functions of the DPWH Secretary as the National Building
Official and of the DPWH as the primary implementing agency and enforcer of
the National Building Code, are hereby expressly repealed.

Section 71. Separability Clause. Any portion or provision of this Act that
may be declared unconstitutional shall not have the effect of nullifying other
portions or provisions hereof as long as such remaining portions or provisions
can still subsist and be given effect in their entirety.

Section 72, Effectivity. This Act shall take effect after fifteen (15) days
following its publication in at least two (2) newspapers of general circulation.

Approved,

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