" 
FIFTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
SENATE 
Senate Bill No. 751 
I 0 
JUL -7 P 4 :1\9 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
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 and homeless citizens in urban centers and 
resettlement areas. It shall also promote adequate employment opportunities to 
such citizens. In the implementation of such program the State shall respect the 
rights of small property owners." 
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 housing 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 homeless ness, 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. 
This bill proposes to create a Department of Housing and Urban 
Development that is envisioned to put direction and order in the housing sector. It 
shall be the primary government agency that will facilitate and ensure the 
availability of affordable housing to our people, especially those who need it 
most. By creating a full time Department for housing and urban development 
matters, the proposed measure seeks to integrate all housing and urban 
development policies, plans, programs and projects to expedite the delivery of 
decent, affordable and sustainable housing and urban development programs 
and projects. 
It is for the foregOing reasons that early passage of this bill is 'earnestly 
requested. 
Senator 


• 
FIFTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
SENATE 
Senate Bill No. 'i 51 
1 0 .JUl -7 P 11 :119 
IlEC.EIVS') BV ~ 
.. _ .• : 
INTRODUCED BYSEN. JINGGOY EJERCITO ESTRADA 
, 
ANACT 
DEFINING THE VISION AND POLICIES OF GOVERNMENT IN THE HOUSING 
AND URBAN DEVELOPMENT SECTOR, CREATING THE DEPARTMENT OF 
HOUSING 
AND 
URBAN 
DEVELOPMENT, 
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: 
'CHAPTER I 
SHORT TITLE, VISION, POLICY AND PRINCIPLES 
SECTION 1. Short Title. This act shall be known as the "Department of 
Housing and Urban Development Act. " 
SEC. 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 housing, 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. 
SEC. 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 urban development and housing 
sector. In this regard it shall: 
a) strengthen its role in guiding, mobilizing and facilitating in housing and 
urban development. It shall defihe the urban development vision and provide a 
housing 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 regeneration, urban land 


• 
management, housing development and other related concerns to facilitate 
private enterprise and participation. It shall formulate and enforce a minimum set 
of standards and 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 housing finance system. 
3.2. Continuing Devolution of Functions to Local Governments. The national 
government and local governments shall act as partners in housing and urban 
development. Functions and the corresponding authority and accountability shall 
be continuously devolved to local government units and such devolution shall 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 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. 
b) The determination of the proper level of government to which a function 
will be devolved shall be determined by the extent of the geographical effects of 
the benefits and the cost of undertaking such function. 
c) 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 in the production of public goods. 
d) Local governments shall have full autonomy in housing 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. It shall formulate national standards and rules to 
guide local governments in 'the formulation of localized standards. The 
promulgation and enforcement of standards and regulations shall be undertaken 
by local governments. 
3.3. Maximum Participation of the Private Sector und Communities in Housing 
and Urban Development. The government shall provide poliCies to maximize 
private sector participation in housing and urban development and to mobilize 
public and private sector resources toward a self-sustaining housing and urban 
development finance system. 
The national government, through local governments, shall ensure that 
communities are involved in the formulation of housing and urban development 
policies and plans that will impact upon them, their livelihood and their living 
conditions. Full community participation in housing and urban development 
policies, programs and projects of government shall be encouraged. 
3.4. 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 implementing programs and intervention that will address 
urban homeless ness 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 Housing and Urban 
Development, created in this Act shall be the primary entity for policy formulation 
and coordination of all housing and urban development functions. It shall define 
the delineation of housing 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 Housing and Urban 
Development. The role of the Department is to support the accomplishment of 
the sector vision and, in particular, encourage more opportunities to improve the 
lives of the urban poor. 
CHAPTER 2 
DEFINITION OF TERMS 
SEC. 4. Definitions. As used in this Act, the following terms shall mean: 
4.1 Devolution - the transfer of responsibility, authority and accountability 
for the performance of a defined function from the national government to local 
governments. 
4.2 Urban Land Management - refers to the range of government 
interventions, including 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. 
4.3 Land Use Plan - refers to the document, formulated by the local 
government 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 and 
environmental objectives. 
4.4 Shelter - refers to the system 'and its components which establish the 
residential quality of life, including housing, utilities, access to social services and 
other community facilities, secudty, and other aspects related to an individual's 
residence. 
4.5 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; 


4.6 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, 
housing, transportation, and management of land use and urban growth. 
4.7 Urban Renewal or Regeneration - the process of planned renewal and 
physical as well as socio-economic revitalization of outworn, old, derelict areas of 
towns and cities through redevelopment and rehabilitation. 
4.8 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. 
4.9 Zoning Ordinance - refers to the set of rules, regUlations and specific 
procedures and requirements promulgated by the local government that will 
guide land use and land development and the development of built environment 
within the jurisdiction of the local government. 
4. 10 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. 
CHAPTER 3 
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT 
SEC. 5. 
Creation of the Department of Housing and Urban 
Development. There is hereby created the Department of Housing and Urban 
Development, hereinafter referred to as the Department. 
SEC. 6. Powers and Functions. The Department shall perform the 
following functions: 
6.1. Formulate the national urban development and shelter policy and 
strategy that is consistent with the National Development Plan; 
6.2. Formulate the urban development and shelter planning framework, 
establish and operate a national urban development and shelter planning 
system, and develop the necessary planning guidelines, procedures, and urban 
development standards that will define and delineate the roles of all 
stakeholders, and guide the planning, standards localization, promulgation and 
enforcement of rules, and service delivery programs of national government and 
local governments, and facilitate private sector investment; 
6.3. Formulate housing finance policies, and recommend and facilitate the 
development of mechanisms that promote the establishment of a self-sustaining, 
private sector-led housing finance system; 
6.4. 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; 


6.5. Provide assistance to, and capability building of, local governments in 
urban development, urban regeneration and urban management in support of 
national policies and strategies in the sector, as well as strengthen the role of 
independent component cities and provincial governments as the primary entities 
for urban development planning and management at the local level; 
6.6. Develop and establish a sector performance monitoring and 
assessment mechanism, and monitor and independently report on the 
performance of national government agencies and local governments in housing 
and urban development sector to enable continuing improvements in sector 
policy and strategy formulation; 
6.7. Delineate areas for priority development as urban renewal areas and 
prepare programs for their regeneration; 
6.S. Support devolution and decentralization where local governments in 
partnerships with communities; non-government organizations and private 
groups assume the functions of urban renewal and regeneration; 
6.9. Exercise administrative investigatory powers over local governments 
to ensure their faithful compliance with housing and urban development laws, 
standards and guidelines, as well as their judicious and fair application of local 
housing and urban development and housing ordinances, and require the 
submission by local governments of pertinent documents and information as may 
be necessary in the judicious and effective conduct of investigation; 
6.10. Coordinate the policies and programs of attached agencies; and 
6.11. Perform such other related functions as may be mandated by law. 
SEC. 7. Mandate. The Department shall be the primary national 
government entity responsible for the management of housing 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. 
CHAPTER 4 
DEPARTMENT PROPER 
SEC. 8. Composition. The Department Proper shall be composed of the 
Office of the Secretary, his/her ilTlmediate staff, the Offices of the Undersecretary 
and Assistant Secretaries, and the Offices and Services directly supportive of the 
Office of the Secretary. 
SEC. 9. The Secretary. The Secretary shall: 
(1) Advise the President on the promulgation of rules, regulations and 
other issuances relative to matters under the jurisdiction of the Department; 
(2) Establish policies and standards for the efficient and effective 
operations of the Department in accordance with the programs of the 
government; 
(3) Promulgate rules, regulations and other issuances necessary in 
carrying out the Department's mandate, objectives, policies, plans, programs and 
projects; 


(4) Exercise supervision and control over all functions and activities of the 
Department; 
(5) Delegate authority for the performance of any administrative or 
substantive function to subordinate officials of the Department; and 
(6) 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 (SSS), the Government Service Insurance 
System (GSIS) and the Public Estates Authority (PEA). The Secretary shall be a 
member of the NEDA's Committee on Infrastructure (lNFRACOM) and the Social 
Development Committee (SDC). 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 (HDMF), the 
Home Guaranty Corporation (HOC) and the National Home Mortgage Finance 
Corporation (NHMFC). 
SEC. 10. The Undersecretary and Assistant Secretaries. The 
Secretary shall be assisted by an Undersecretary and such Assistant Secretaries 
as may be necessary and allowed by law or organizational policy of government. 
The Undersecretary and Assistant Secretaries shall be career officers and shall 
be appointed by the President upon the recommendation of the Secretary. They 
shall have the powers and functions as provided for in Section 10, Chapter 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 
undersecretary and assistant secretaries. 
SEC. 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. 
SEC. 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; 
c) 
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; 
d) Monitor and male 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, 
SEC. 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, 
SEC. 14. Legal and Legislative Service. The Legal and Legislative 
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; 
c) 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 assig'ned by the 
Secretary, 
SEC. 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 housing and urban development 
regulation, production and service delivery; 
b) Undertake continuing studies on the research and development 
requirements of the housing and urban development sector for the purpose of, 
but not limited to, policy development, planning and standards formulation; 
c) 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; 
d) Publish and disseminate research and development information to the 
public to promote innovation in the various aspects of housing and urban 
development; and 
e) Perform such other related functions as may be assigned by the 
Secretary. 


• 
SEC. 16. Public Relations and Information Service. The Public 
Relations and Information Service shall: 
a) 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 
housing and urban development sector; 
b) Prepare, produce and publish materials to support such public 
information and public relations program; 
c) Establish collaborative networks for the dissemination of information 
and generation of feedback on sectoral concerns; and 
d) Perform such other related functions as may be assigned by the 
Secretary. 
SEC. 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 the transaction processing systems of the Department. 
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; 
c) 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 housing and urban development sector; and 
g) Perform such other functions as m~y be assigned by the Secretary. 
SEC. 18. Advisory Committees. The Secretary shall have the power to 
establish ad hoc advisory committees consisting of key representatives from 
national government agencies, focal 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. 
SEC. 19. Staffing Pattern. The Secretary shall prepare and implement a 
staffing pattern for the Department proper that shall he 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 shall be determined and established by the Secretary. 
CHAPTER 5 
PLANS, POLICIES AND MONITORING OFFICE 
SEC. 20. Plans, Policies and Monitoring Office. The Plans, Policies and 
Monitoring Office (PPMO) under the Office of the Secretary shall be headed by 
an Assistant Secretary and shall be the central government policy, planning and 
monitoring think tank for housing and resettlement, and urban planning, 
development and regeneration. The PPMO shall be responsible for the: 
(a) 
Formulation 
of national 
housing 
policy, 
urban 
and 
regional 
development policies, and resettlement policy; 
(b) Updating of national. urban development and housing framework; 
preparation of national shelter plan and agency corporate plan; 
(c) Provision of internal planning services; reviewing policies, plans and 
programs of key shelter agencies; 
(d) Conduct of research and development in housing technologies and 
into housing and urban development; 
(e) Monitoring of the effectiveness of government policies and programs in 
housing delivery and urban development, including those of the attached 
agencies; 
(f) Development of performance indicators for housing and urban 
development and the formulation and development of performance indicators 
and program targets for key shelter agencies and local governments; 
(g) Monitoring of the performance of key shelter agencies against targets 
as well as the accomplishment of the national shelter plan and adherence to the 
urban development and housing framework; 
(h) Provision of internal evaluation services to HUDCC; 
(i) Integration of housing and urban development data banks with those of 
other government agencies; and. 
U) Monitoring of the performance of local government programs in housing 
and urban development. 
SEC. 21. Bureaus under the PPMO. The Assistant Secretary for Plans, 
Policies and Monitoring shall supervise the following: 
(1) Plans, Policies and Program Bureau. 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 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 Develop,ment Plan; 
c) Design programs for the provision of capacity building assistance to 
local governments in housing and urban development planning, investment 
programming, formulation of 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 data and sector information requirements under a 
uniform data classification and storage and through geographic information 
systems; 
f) Formulate a 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) Provide technical assistance to project management and implementation 
offices and units of foreign-assisted projects of the Department in the facilitation 
of project implementation in accordance with approved policies and schedules; 
and 
j) Perform such other functions as may be assigned by the Secretary. 
(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 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; 


c) 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 all the 
organic 
bureaus, 
attached 
agencies 
and 
corporations, 
and 
make 
recommendations thereon; and . 
e) Perform such other related functions as may be assigned by the 
Secretary. 
(3) Housing Finance Development Bureau. The Housing Finance Development 
Bureau shall: 
a) Formulate policies to encourage a sustainable market-oriented housing 
finance system to ensure adequate flow of private funds into the primary and 
secondary mortgage markets; 
b) Develop and implement incentive schemes to encourage greater 
participation by the private sector, communities and other stakeholders in the 
provision of housing and housing finance; 
c) 
Design the most appropriate subsidy 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 systems and procedures for 
the program maximizing the principles of decentralization and devolution; 
d) Undertake continuing studies for the improvement of the institutional 
framework and administrative operations for housing finance; 
e) Recommend legislation to improve housing finance laws, policies and 
mechanisms and 
develop initiatives for private sector and 
community 
participation; 
f) Conduct continuing stUdies on improving housing finance, resource 
generation and mobilization, and their implementing strategies and mechanisms; 
and 
h) Administer homeless assistance or grants to LGUs, NGOs and private 
communities for temporary or emergency housing in response to manmade or 
natural calamities; and 
i) Perform such other functions as may be assigned by the Secretary. 
CHAPTER 6 
URBAN DEVELOPMENT AND HOUSING OPERATIONS OFFICE 
SEC. 22. The Urban Development and Housing Operations Office. 
The Urban Development and Housing Operations Office (UDHOO), under the 
Office of the Secretary, shall be headed by an Assistant Secretary and shall be 
responsible for the: 


(1) Development of the capacity of local govemments to plan, implement 
and monitor housing, land management, urban development and urban 
regeneration programs; 
(2) Development and administration of the national government subsidy 
program for social housing; 
(3) Provision of advice and guidance on the development of housing 
finance market in the Philippines; and 
(4) Provision of technical and administrative support to management and 
implementation of foreign assisted projects at the central level. 
SEC. 23. Bureaus under the UDHOO. The Assistant Secretary for Urban 
Development and Housing Operations shall supervise the following: 
(1) Housing and Land Use Regulation Bureau. The Housing and Land Use 
Regulation Bureau shall be responsible to: 
a) Formulate, review and update national policies and standards, 
guidelines and regulations relative to land use for implementation and 
enforcement by local government units; 
b) 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; 
c) 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; 
d) Formulate zoning and other land use standards and guidelines which 
shall govern: the development 91nd 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; 
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; 
e) 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; 
f) Issue rules and regulations to enforce 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; 


g) Develop and install a housing and land use development oversight 
monitoring system and undertake reserve compliance monitoring function 
deemed vital by the Secretary. 
h) Formulate and implement real estate consumer education and 
protection programs; and 
i) Perform such other related functions as may be assigned by the 
Secretary. 
(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; 
b) 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; 
c) 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; 
e) Design programs for improving capacities of local governments in urban 
land management, renewal and regeneration; and 
f) Perform such other functions as may be assigned by the Secretary. 
CHAPTER 7 
OFFICE FO~ REGIONAL OPERATIONS 
SEC. 24. 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. 
SEC. 25. 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 the following functions: 
a) Implement the policies and programs of the Department in the 
concerned region; 


b) Implement the local government housing and urban development 
capacity building programs of the Department in their respective regions; 
c) 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 ot,her government agencies; 
d) Review all local development and land use plans of provinces and 
independent cities for purposes of ensuring compliance with laws; 
e) 
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; 
f) Monitor, investigate and assess compliance to approved subdivision and 
condominium plans; and for the purpose, impose fine/penalties and, on its own 
upon complaint of any interested party, after the conduct of appropriate 
investigation, issue notices of violations and Cease and Desist Orders for non-
compliance thereof; 
g) Coordinate the housing and urban development planning process ill the 
regions to ensure the delivery of various services such as titling, issuance of 
permits for subdivision plans, the prOVision of social and livelihood services, and 
other services related to housing and urban development; 
h) Maintain a regional database and information system for the sector in 
the region; 
i) 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 consultative 
mechanism to serve as a forum for continuing planning and evaluation of 
settlement programs and projects; 
j) Implement, monitor and evaluate policies, rules and regulations 
governing resettlement, relocation, eviction or demolition of the homeless and 
underprivileged and recommend appropriate action thereon; 
k) Ensure that local government units institute preventive measures 
against squatting and address other concomitant problems such as rural to urban 
migration; 
I) Monitor and evaluate the implementation of government programs and 
projects which 
would 
require housing 
provision 
and/or relocation 
and 
resettlement activities, and recommend appropriate action thereon; 
m) Administer homeless assistance or advances/grants to LGUs, NGOs 
and private communities for temporary and emergency housing, in response to 
manmade and natural calamities; 
n) Implement innovative, clearly defined, transparent and on-budget 
housing subsidy mechanisms for the homeless and underprivileged in the 
regions to enhance accessibility to housing; 


0) 
Registration of incorporation of homeowners associations and 
condominium corporations; and 
p) Perform such other functions as may be assigned by the Secretary. 
CHAPTER 8 
ATTACHED AGENCIES 
SEC. 26. Attached Agencies and Corporations. The following agencies 
and corporations are hereby attached to the Department for policy and program 
coordination: 
26.1 National Housing Authority (NHA); 
26.2 Housing Guarantee Corporation (HGC); 
26.3 National Home Mortgage Finance Corporation (NHMFC); 
26.4 Home Development Mutual Fund (HDMF); and 
26.5 Housing and Urban Development Adjudication Commission (HUDAC). 
SEC. 27. 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. 
SEC. 28. 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. 
SEC. 29. National Home Mortgage Finance Corporation (NHMFC). 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 privi3te sector participation in the short-term and for 
its eventual privatization over the medium term. 
SEC. 30. Home Development Mutual Fund (HDMF). 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.o. 1752, 
as amended by E.O. 35 and Republic Act 7742. 
SEC. 31. 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 NHMFC and the HDMF. 
CHAPTER 9 
HOUSING AND URBAN DEVELOPMENT ADJUDICATION COMMISSION 


SEC. 32. 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 Commission. 
SEC. 33. Power and Authority. The Commission shall have the following 
powers and authorities: 
33.1. 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; 
33.2. 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; 
33.3. To issue writs, orders to execute demolition, or seizure or closure of 
property in accordance with its decision; 
33.4. 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; 
33.5. To hold any person in contempt, directly or indirectly, and impose 
appropriate penalties thereof; 
33.6. To impose administrative fines and lor 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 (PSOO,OOO.OO): Provided further, That the 
Commission may adjust such rates not more than once every three (3) years; 
33.7. To determine and order thl? 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; 
33.B. To deputize any law enforcement agency in the execution of its final orders, 
rulings or decisions; and 
33.9. 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 implemerited 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. 
SEC. 34. 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 (5) diVisions, the 
first, second and third divisions shall handle cases coming from the National 
Capital Region and parts of Luzqn. 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 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 from the 
other divisions as may be necessary. 
The conclusions of a division on any case submitted to it for decision shall 
be reached in conSUltation before the case is assigned to a member for the 
writing of the decision. It shall be mandatory for the division to meet for purposes 
of the consultation ordained 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 and 
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. 


SEC. 35. 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 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. 
SEC. 36. 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: 
36.1. 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. 
36.2. 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; 
36.3. 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. 
36.4. The Housing and Land Use Arbiters shall have original and exclusive 
jurisdiction to hear and decide cases enumerated in Section 35 of this Act. 
SEC. 37. Jurisdiction. The Housing and Land Use Arbiters shall exercise 
original and exclusive jurisdiction to hear and decide cases involving the 
following: 
37.1. On Real Estate -
a) Unsound and fraudulent real estate business practices; 
b) Claims for refund against project owners, developers, dealers, brokers 
and salespersons; 
c) Specific performance of contractual and statutory obligations filed by 
buyers of subdivision lots or condominium units against the owner, developer, 
dealer, broker or salespersons; 
d) Squatting on subdivision lots; 
e) Eviction and relocation of squatter communities; 
f) Disputes involving buyer-financing agreements with any financing 
institution for condominium/subdivision projects; 
g) Disputes jnvolving easements or right of way arising from the 
development of subdivision and housing projects; 


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 in,(olved; 
i) Releases of mortgage titles of subdivision lots and condominium units; 
j) Disputes involving easement of waterways, drainage, connections and 
light and view arising from the development of subdivision and housing projects; 
k) 
Disputes involving homeowners associations and condominium 
corporations, whether intra corporate or inter corporate; 
I) 
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. 
37.2. On Housing and Land Use Planning and Regulation - Decisions and 
actions of: (1) local housing boards or provincial governments, highly urbanized 
independent component cities an'd the cities and municipalities of Metro Manila; 
(2) 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 
applications with opposition, petitions or complaints for revocation of clearances, 
permits and licenses issued and issuance of Cease and Desist Orders and 
administrative fines. 
37.3. On Shelter Rights - Violations of administrative rules and regulations 
implementing Sections 18 and 28 of Republic Act 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. 
SEC. 38. Criminal Prosecution. Criminal prosecution for violation of 
housing laws and regulations shall be instituted before regular courts with 
appropriate jurisdiction. 
SEC. 39. 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. 
SEC. 40. Appearances. A lawyer appearing for a party is presumed to be 
properly authorized for that purpose. A non-lawyer may appear before the 
Commission or the 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. 


SEC. 41. Appeals. Decisions, awards or orders of the Housing and Land 
Use Arbiters shall be final and executory 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; 
(c) 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. 
SEC. 42. Prohibition Against Restraining Order of Injunction. No 
lower court of the Philippines shall have jurisdiction to issue any restraining order 
or writ of preliminary injunction or permanent injunction against the 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 and 
just and humane eviction or demQlition procedures. 
SEC. 43. Pending Cases. All cases pending in court arising from or in 
connection with the implementation of pertinent laws on housing and just and 
humane eviction/demolition procedures shall continue to be heard, tried and 
decided to their finality. 
CHAPTER 10 
FUNCTIONS OF LOCAL GOVERNMENTS IN RELATION TO 
HOUSING AND URBAN DEVELOPMENT 
SEC. 44. Continuing Devolution of Functions to Local Governments. 
The national government, through the Department and in consultation with the 
Department of Interior and Local Government and the local governments, shall 
formulate and implement a continuing devolution program for housing and urban 
development sector functions, responsibilities, authority and accountability, in 
accordance with the principles of sector governance stipulated in this Act. 
SEC. 45. 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: 


, 
45.1. Review, evaluate and approve or disapprove comprehensive local 
development plans, local land use plans and zoning ordinances of component 
cities and municipalities; the zoning components of civil woks and infrastructure 
projects of national, regional and local governments; subdivision, condominium 
or estate development projects including industrial estates, of the public and 
private sectors; and urban renewal and regeneration plans, programs and 
projects; Provided that the revieyv and approval of such comprehensive local 
development plans, local land use plans and zoning ordinances shall respect the 
classification of public lands for forest purposes as certified by 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 RA 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 RA 6657. 
45.2. Registration of subdivision lots and condominium projects; issuance of 
license 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 plans and the extension of 
period for completion of subdivision or condominium projects, subject to the 
standards and reqUirements of the Department; 
45.3. Impose fines and penalties as may be allowed under existing laws or 
Department policies, and guidelines; 
45.4. Conduct public hearings and conSUltations on the promulgation of 
regulation; 
45.5. Formulate and adopt rules and procedures for rule enforcement; 
45.6. Provide in formation to the Department necessary in the monitoring of local 
urban development and housing in accordance with the report content and 
formatting guidelines of the Dep~rtment; and 
45.7. Perform such other related regulatory functions as may be provided for by 
law. 
CHAPTER 11 
TRANSITORY PROVISIONS 
SEC. 46. Transfer of Functions. The following functions are hereby 
transferred as stipulated hereunder: 
46.1. The rule, standards and guidelines formulation functions of the Housing 
and Land Use Regulatory Board is hereby transferred to the 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. 
46.2. The registration of incorporation of homeowners associations and 
condominium corporations are hereby transferred to the regional offices of the 
Department. 


SEC. 47. Formulation of Regulatory Framework and Devolution 
Implementation Program. The Department shall formulate a regulatory 
framework and design the necessary policies, standards, guidelines and 
procedures to 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 multi-year capacity 
building program, and technical assistance services for the institutional capacity 
development 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. 
SEC. 48. Abolition and Conversion of Agencies. The following 
dispositive actions shall be implemented within six (6) months from the effectivity 
of this Act: 
48.1. The Housing and Urban Development Coordinating Council. Its functions, 
assets, equipment, funds, choses in action, records and pertinent transactions, 
shall be transferred to the Department. The employees of the abolished Council 
may be transferred and absorbed by the Department subject to its staffing 
pattern and the selection process as prescribed under Republic Act No. 6656 on 
the Rules on Government Reorganization. 
48.2. 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, choses in action, and 
pertinent transactions of the Board are hereby transferred to the Commission. 
The Commission shall formulate and complete its internal organic structure and 
its regional offices, staffing, operating systems and procedures and new budget 
within six (6) months from the effectivity of this Act. 
SEC. 49. 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 and all other 
agencies 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, except the assets, pertinent funds, records, 
property, assets, equipment and personnel of the Housing and Land Use 
Regulatory Board. 
SEC. 50. Transition Period, All transfer of functions, assets, funds, 
personnel, 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 and the Commission, shall be completed within six (6) months 
during which existing personne\.shall continue to assume their posts in holdover 
capacity. 
SEC. 51. 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 pertinent 
provisions 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. 
SEC. 52. Formulation of Implementing Rules und Regulations and 
Other Implementation Mechanisms. The following implementing rules and 
regulations (IRR) shall be prepared and issued as indicated hereunder: 
52.1. 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. 
52.2. The Implementing Rules and Regulation for the creation 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. 
52.3. The promulgation of the rules and regulation governing the hearing and 
disposition of cases and other adjudication functions of the Commission, within 
six (6) months after the constitution of the Commission. 
52.4. 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. 
. CHAPTER 12 
IMPLEMENTING AUTHORITY AND FUNDING 
SEC. 53. Implementing Authority. The Secretary of the Department and 
the Chairperson of the Commission are hereby authorized to undertake the 
implementation of the provisions of this Act and implement the necessary 
organizational changes within the specified six (6)-month transition period. 
SEC. 54. Authority of Attached Agencies to Reorganize. The boards of 
attached corporations and agencies and the Chairperson and Commissioners of 
the Commission 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. 
SEC. 55. Protection of Security of Tenure by Affected Personnel. The 
existing authority granted pursuant to the preceding two Sections shall be 
governed by the provisions of RA 6657 and relevant civil service rules and 
regulations in order to protect the security of tenure of personnel who shall be 
affected by the reorganization. 
. 
SEC. 56. Funding. The initial funding for the implementation of this Act 
shall come from the unreleased balances of the budgets of the HUDCC and the 
HLURB. All such other amounts necessary further needed for the implementation 
of this Act shall be released by the Department of Budget and Management 


( 
within 30 days upon submission by the Department and the Commission of their 
respective budget estimates. 
CHAPTER 13 
MISCELLANEOUS PROVISIONS 
SEC. 57. Mandatory Review of the Implementation of this Act. The 
Department shall conduct and submit a report to Congress a review of the 
implementation of this Act at the national government level at the end of the 
second year of its effectivity and a review of the devolution of functions to local 
governments at the end of the fifth year of its effectivity. 
SEC. 58. Repealing Clause. All laws, executive orders, proclamations, 
rules, regulations, and other issuances or parts thereof which are inconsistent 
with the provisions of this Act are hereby repealed, amended or modified 
accordingly. 
SEC. 59. Separability Clause. If for any reason, any portion or prOVision 
of this Act is declared invalid or unconstitutional, the remaining provisions not 
affected thereby shall continue to be in full force and effect. 
SEC. 60. Effectivity. This Act shall take effect fifteen (15) days after its 
publication in at least two (2) newspapers of general circulation. 
Approved,