FOURTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILPPINES 
) 
First Regular Session 
1 
7 
.kIL -3 
1’ .a . 
5 I 
S. B. No. 
823 
Introduced by Senator Biazon 
EXPLANATORY NOTE 
The Philippines has a total population of around 86 million and with a population growth 
rate of 2.36 percent, it is expected to grow to unmanageable heights in the near future. We are 
also currently facing a backlog in housing units of around three to five million units. These 
statistics serve to underscore the need for the government to find a solution to the housing 
problem of the nation at the soonest time possible. 
It is with this in mind that this bill is hereby being proposed. This bill seeks to lay the 
foundation for a land reform program with regards to residential units, a Residential Land 
Reform so to speak. This bill proposes that all alienable and disposable public lands be 
distributed regardless of tenure arrangements. It provides that the maximum residential area 
permissible for sale is not to exceed 700 square meters within cities and capital towns and 1,000 
square meters in other areas. 
In view hereof, the approval of this measure is highly recommended. 
RODOLFO GMIAZON 
Senator 


FOURTEENTH CONGRESS OF THE REPUBLIC 
) 
1 
7 JUL -3 p j  ‘‘7 
. 
I .. 
OF THE PHILPPINES 
First Regular Session 
) 
S E N A T E  
$\Et::ElVEn wf‘ : 
S.B.No. 823 
I 
Introduced by Senator Biazon 
AN ACT 
PROVIDING FOR A NATIONAL HOMELOTS DISTRIBUTION PROGRAM 
Be it enacted by the Senate ana’ House of Representative of the Philippines in Congress 
assem bled: 
SECTION 1. Short Title. - This Act shall be known as the “Comprehensive National 
Homelots Distribution Act.” 
Sec. 2. Declaration of Policy. - It is hereby declared the policy of the State to pursue a 
continuing program of urban land reform and housing. Toward this end, the State shall pursue a 
comprehensive national homelots distribution program which shall fast track titling of home lots 
to qualified beneficiaries from the marginalized sectors of society at affordable cost and provide 
financing schemes to acquire the same. 
Sec. 3. Definition of Terms. - For the purpose of this Act, the following are hereby 
defined: 
(a) “Affordable cost” refers to the most reasonable price of land and shelter based on the 
needs and financial capability of program beneficiaries and appropriate financing 
schemes. 
(b) “Agricultural lands” refer to lands devoted to or suitable for the cultivation of the 
soil, planting crops, growing of fruit trees, raising of livestock, poultry, fish or 
aquaculture production, including the harvesting of such farm products, and other 
farm activities and practices performed in conjunction with such farming operations 
done by persons whether natural or juridical and not classified by law as mineral 
land, residential land, commercial land or industrial land. 
(c) “Alienable and disposal lands of the public domain refer to those lands of the public 
domain which have been delineated, classified and certified as such, declared as not 
needed for forest, mineral purposes or national parks and available for disposition 
under Commonwealth Act No. 141, otherwise known as the “Public Lands Act” as 
amended. 
(d) ‘‘Ancestral domain’ refers to all areas generally belonging to indigenous cuItura1 
communities/indigenous peoples (ICCs/IPs) as defined in Republic Act No. 8371, 
otherwise known as the Indigenous peoples Rights Act (IPRA) of 1998. 
(e) “Beneficiary” refers to a natural person who has been ncciipying a parcel of land as 
defined in paragraph (c) of this section for two (2) years or more and identified by the 
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local government unit as qualified to own a homelot in accordance with the eligibility 
criteria in Section 6 of this Act and the rules and regulations formulated in 
accordance with this Act. 
(0 “Forestlands” refer to lands of the public domain, which have been classified or 
declared as such by existing forestry laws and all unclassified lands of the public 
domain. 
(g) “Homelot” refers to a parcel of residential land occupied for two (2) years or more by 
qualified beneficiaries prescribed in this Act situated in public lands mostly in the 
poblacion area or center of municipalities and/or cities. 
(h) “Idle land” refers to non-agricultural lands in urban and urbanizable areas on which 
no improvements, as herein defined, have been made by the owner, as certified by the 
city, municipal or provincial assessor. 
(i) “Improvements” refers to all types of buildings and residential units, walls, fences, 
structures or construction of all kinds of a fixed character or which are adhered to the 
soil but shall not include trees, plants and growing fruits, and other fixtures that are 
mere superimpositions on the land, and the value of improvements shall not be less 
than fifty percent (50%) of the assessed value of the property. 
0) “Lands of the public domain” refer to lands that belong to the State which may be 
any of the following; agricultural, forest or timber, mineral, or national park as 
provided for in the Constitution. 
(k) “Land use” refers to the manner of utilization of land, including its allocation, 
development and management. 
(1) “Mineral lands’ refer to lands where minerals including energy resources are found. 
(m) “Professional squatters” refer to individuals or groups who occupy lands without the 
express consent of the landowner and who have sufficient income for legitimate 
housing. The term shall not apply to individuals or groups who simply rent land and 
housing fiom professional squatters or squatting syndicates. 
(n) “Public lands” refer to lands which have not been subject to private property rights or 
snbject to all or other modes of acquisition or concession under the general laws and 
are devoted to public use. 
(0) “Residential lands” refer to lands intended for or devoted to the construction and 
establishment of dwellings. 
(p) “Socialized housing” refers to housing programs and projects covering houses and 
lots or homelots only, undertaken by the government or the private sector for the 
underprivileged and homeless citizens which shall include sites and services 
development, long-term financing liberalized terms on interest payments, and such 
other benefits in accordance with Republic Act No. 7279 or the Urban Development 
and Housing Act.” 
(q) “Squatting syndicates” refer to groups of persons engaged in the business of squatter 
housing for profit or gain. 
(r) “Underprivileged and homeless citizens” refer to individuals or families residing in 
urban and urbanizable areas whose income or combined household income falls 
within the poverty threshold as defined by the National Economic and Development 
n 


Authority (NEDA) and who do not own housing facilities. This shall include those 
who live in makeshift dwelling units and do not enjoy security of tenure. 
(s) “Urban areas” refer to all cities regardless of their population density and to 
municipalities with population density of at least five hundred (500) persons per 
square kilometer. 
(t) “Urbanizable areas” refer to sites and lands which, considering present characteristics 
and prevailing conditions, display marked and great potential of becoming urban 
areas within a period of five (5) years. 
(u) “Vested right” refers to such right to, or interest in, property that has become fixed 
and established and no longer open to question by reason of actual, exclusive and 
continuous possession in good faith of a public land within a period prescribed by 
law. 
Sec. 4. Scope. - The Comprehensive National Homelots Distribution Program (NHDP) 
shall cover, regardless of tenurial arrangement, all alienable and disposable public lands as 
defined in this Act, and are not within the scope of the following: 
(a) Comprehensive Agrarian Reform Law or Republic Act No. 6657; 
(b) National Integrated Protected Areas as provided in Republic Act No. 7586; 
(c) Areas declared as forest land or forest reserves and ancestral domain lands under 
(d) Agricultural lands as defined in Republic Act No. 8435 or the “ Agriculture and 
(e) Other areas reserved for specific purposes, as provided by specific laws 
Sec. 5. 
Republic Act No. 8371; 
Fisheries Modernization Act,” and 
National Homelots Distribution Program (”DP). 
- The Department of 
Environment and Natural Resources (DENR) through the Land Management Bureau (LMB), 
shall formulate, implement and complete a viable program to distribute with titles alienable and 
disposable lands through sale to qualified beneficiaries covered by this Act. It shall also 
undertake cadastral survey for all other areas which have not been surveyed the cost of which 
shall not exceed Two Pesos (P2.00) per square meter. The distribution of the residential lands 
shall be implemented immediately and completed within two (2) years from the effectivity of 
this Act. 
The maximum residential area allowed for sale in this Act shall not exceed seven hundred 
(700) square meters within cities and capital towns, and one thousand (1,000) square meters in 
all other places: Provided, however, That the limitations fixed herein on the maximum area on 
landholdings shall not be applicable to persons, who, upon the effectivity of this Act, by previous 
occupation of not less than ten (10) years over a residential lot, have established their dwelling 
places thereat where their families have been living, in good faith, free from claims and conflicts 
have paid the real estate taxes thereon, and have acquired a vested right. Residential lots 
exceeding in area than those provided for cities and capital towns and those for other places but 
not exceeding one thousand two hundred (1,200) square meters may be granted to qualified 
persons herein provided. 
The DENR shall coordinate with the Department of Agrarian Reform (DAR), the 
Department of Agriculture (DA) and the National Commission on Indigenous Peoples (NCIP) to 
ensure that lands exempted under Section 4 will not be covered by the program. 
Using the local land use plans as reference, the local government units (LGUs) shall 
assists the DENR in identifying lands qualified for distribution to homeowners. The LGUs shall 
also identify qualified beneficiaries and consider the infrastructure and service requirements of 
areas covered by the program when updating tie local development and comprehensive land use 
plans. 
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The Housing and Urban Development Coordinating Council (HUDCC) shall formulate 
the Socialized Housing Program, including the financing component, to assist the beneficiaries in 
acquiring affordable home lots and houses. 
Sec. 6. Qualzj?ed Beneficiaries. - The lands within the scope of this Act shall be 
distributed to qualified residents of the barangay where such homelot is located. The LGUs shall 
lead in coordination with the HUDCC, in identifying qualified beneficiaries for the NHDP. 
Priority shall be extended to landless and underprivileged residents who are already occupying 
said homelots for two (2) or more years. 
Qualified beneficiaries must secwe barangay 
certification stating proof that they are the rightful occupant of such home lot for the period 
prescribed in this Act. 
To qualify, the following criteria shall also be fulfilled: 
(a) Must be a Filipino citizen; 
(b) Must not own any real property whether in the urban or rural areas; 
(c) Must not be a professional squatter or a member of squatting syndicates as defined in 
(d) Must have made improvements and used the land for productive purposes. 
Sec. 7. Land Valuation. - The DENR, in close coordination with LGUs through the 
municipal or city assessors, shall formulate a land valuation scheme for the NHDP calibrated 
according to the municipality's or city's classification, in accordance with the following scheme: 
(a) For 4"' and 5'h class municipalities - not more than Twenty-five pesos (P25.00) per 
(b) For 2"d and 31d class municipalities - not more than Forty-pesos (P40.00) per square 
(c) For 1' class municipalities -not more than Fifty-pesos (PSO.00) per square meter; 
(d) For component cities - not more than Seventy-five pesos (P7S.00) per square meter; 
(e) For highly urbanized cities - not more than Five hundred pesos (PSO0.00) per square 
the Urban Development Housing Act, and 
square meter; 
meter; 
and 
meter. 
Sec. 8. Financing Program. - The HUDCC, in coordination with the Department of 
Finance (DOF), shall formulate a financing program to assist the beneficiaries under this Act to 
acquire their homelots and build affordable houses. It shall also consider existing programs such 
as the Community Mortgage Program, and develop other financing schemes in coordination with 
the Home Guarantee Corporation and other government financial institutions to fast track the 
distribution of homelots and acquisition of affordable housing for beneficiaries. 
A beneficiary whose homelot, as provided herein, has been foreclosed shall thereafter be 
permanently disqualified from becoming a beneficiary under this Act. 
Sec. 9, Local Government Unit's Share. - The local government units, prior to the 
withholding of the appropriate taxes, shall have a share equivalent to ten percent (10%) of the 
gross sales of the homelots. 
Sec. 10. Transferability ofAwarded Lots. - Lots acquired by beneficiaries under this Act 
cannot be sold, transferred or conveyed except through hereditary succession, or sold back to the 
government or the Land Bank of the Philippines for a period of ten (1 0) years as provided for in 
Section 29 of Commonwealth Act no. 141. 
Sec. 11. Fraudulent Claims. - The District Land Office under the LMBIDENR, in 
coordination with the LGU, shall review existing claims which have been fraudulently acquired 
by any person or community. Any claim found to be fixudulently acquired by and issued to any 
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person or community may be cancelled by the LMB after due notice and hearing of all parties 
concerned. 
Sec. 12. Resolution of Conflicts. - In cases of conflicting interest, where there are 
adverse claims as delineated in the survey plan and which cannot be resolved, the LMB shall 
hear and decide after notice to the proper parties, the dispute arising from the delineation of such 
homelots: Provided, That any decision, order, award or ruling of the LMB on any homelot 
dispute or on any matter pertaining to the application, implementation, enforcement and 
interpretation of this Act may be brought for petition for review to the Court of Appeals within 
fifteen (1 5 )  days from receipt of a copy thereof. 
Sec. 13. Penalty Clause. - Any person who violates any provision of this Act shall be 
imposed the penalty of not more than six (6) years of imprisonment or a fine of not less than Five 
thousand pesos (P5,OOO.OO) but not more than One hundred thousand pesos (P100,000.00), or 
both, at the discretion of the court: Provided, That if the offender is a corporation, partnership, 
association or other juridical entity, the penalty hall be imposed on the officer or officers of said 
corporation, partnership, association or juridical entity who caused violation. 
Sec. 14. Implementing Rules and Regulations. - The DENR, through the LMB, in 
consultation with the Department of the Interior and Local Government, HUDCC, Land 
Registration Authority, DA, DAR, DOF and NCIP and other concerned government agencies, 
shall promulgate the rules and regulations for the effective implementation of this Act within 
three (3) months from its effectivity. 
Sec. 15. Repealing Clause. - All other laws, decrees, executive orders, rules and 
regulations, issuances or parts thereof inconsistent with this Act are hereby repealed or amended 
accordingly. 
Sec. 16. Separability Clause. - If any provision of this Act is subsequently declared 
unconstitutional, the validity of the remaining provisions hereof shall remain in full force and 
effect. 
Sec. 17. Effectivity Clause. - This Act shall take effect immediately after publication in 
at least two (2) national newspapers of general circulation. 
Approved, 
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