Republic of the Philippines
HOUSE OF REPRESENTATIVES.
Quezon City, Metro Manila

Seventeenth Congress
First Regular Session

HOUSE BILL NO.

Introduced by Honorable Rodante D. Marcoleta

EXPLANATORY NOTE

‘This bill seeks to require local government units (LGUs) to appropriate five
percent (5%) of their internal revenue allotment (IRA) for the relocation and/or
resettlement of underprivileged and homeless constituents.

Under the Urban Development and Housing Act of 1992, LGUS are
mandated to provide areas within its jurisdiction for the relocation and resettlement
of informal settlers in their localities. The law specifically aims to address the
squatter problem in Metro Manila and other major cities and municipalities
nationwide, despite said law, however, decent housing still remains a major hurdle
to overcome.

Unfortunately, many LGUs fail to provide suitable resettlement or relocation
areas due to inadequacy of basic needs and services thereat, They complain of
financial difficulties in’ the implementation of their relocation and resettlement
plans. The continuous exodus of informal settlers is an added burden t the LGUs.

In the light of the foregoing, this bill aims to assist the LGUs in providing
relocation and resettlement areas by setting aside five percent (5%) of their
respective IRA for the purpose. This will not only strengthen the financial
capabilities of the LGU concerned but will also ensure that the basic services,
programs and projects essential to resettlement communities are implemented with
greater efficiency.

Approval of this bill is highly recommended.



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

Seventeenth Congress
First Regular Session

HOUSE BILL No. 8744
Introduced by Honorable Rodante D. Marcoleta

AN ACT
MANDATING LOCAL GOVERNMENT UNITS TO ALLOCATE FIVE
PERCENT (5%) OF THEIR INTERNAL REVENUE ALLOTMENT FOR
THE RELOCATION AND RESETTLEMENT OF UNDERPRIVILEGED
AND HOMELESS CITIZENS, AMENDING FOR THE PURPOSE
REPUBLIC ACT NO. 7279, OTHERWISE KNOWN AS THE URBAN
DEVELOPMENT AND HOUSING ACT OF 1992

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

SECTION 1. Section 42 (e) Republic Act No. 7279 is hereby amended to
read as follows:
“SEC. 42. Funding — Funds for the urban development and
housing program shall come from the following:
(a) x x x
Xxx Xxx Xxx
“(e) Proceeds from social housing tax and subject to the

concurrence of the local government units concerned, idle land tax as


provided in Section 236 of the Local Government Code of 1991, and

other laws.

“IN ADDITION, EACH LOCAL GOVERNMENT UNIT

(LGU) SHALL APPROPRIATE IN ITS ANNUAL BUDGET AN

AMOUNT EQUIVALENT TO FIVE PERCENT (5%) OF ITS

TOTAL SHARE IN THE INTERNAL REVENUE ALLOTMENT

(IRA) TO BE USED EXCLUSIVELY FOR SUITABLE

RELOCATION AND/OR RESETTLEMENT AREAS OF THEIR

UNDERPRIVILEGED AND HOMELESS CONSTITUENTS.”

x x x

SEC. 2. The five percent (5%) appropriated amount of the LGU shal be
pooled in a Fund to be administered by the Home Guaranty Corporation (HGC).

SEC. 3. As soon as the fund is placed under HGC’s administration, the
Home Development Mutual Fund (HDMF) and National Home Mortgage Finance
Corporation (NHMFC) shall each extend counterpart funding assistance.

SEC. 4. The Secretary of the Department of Interior and Local
Government (DILG), in coordination with the Housing and Urban Development
Coordinating Council (HUDCC), shall promulgate the necessary rules and
regulations for the effective implementation of the provisions of this Act.

SEC. 5. This Act shall take effect fifteen (15) days after its publication

in at least two (2) newspapers of general circulation.

Approved,