Republic of the’Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS

First Regular Session

House Bill No,_ 848

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Introduced by HON. ROZZANO RUFINO B. BIAZON

SS
EXPLANATORY NOTE

The housing needs of the underprivileged and homeless in our country is a problem that
continuously paints a stark picture for our country’s economic managers, and housing czars.

While the 1987 Constitution provides a mandate that seeks to address this ever-growing
problem, cach administration, faced with the perennial problem of budget deficit that in tum
threatens the provision and administration of social benefits to its citizens, is beset with the
dilemma of how to allocate its meager resources for this purpose, especially for those who need it
most.

Article 13, Section 9 partly reads, “The State shall, by law, and for 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.”

The State, in its desire to pursue the development of our country, has embarked on an
unprecedented program of developing certain areas for priority development. This involves the
identification of certain areas as “growth centers” for industrial, commercial and similar forms of
development. The program includes the alienation of government-owned lands in favor of private
individuals and entities for purposes of developing such lands into industrial or commercial centers.

Our country is fast running out of available residential land for its huge and ever-increasing
population. The government has to pursue a rational land use plan that will entail the rational
allocation of the government's scarce land resources to include housing for the underprivileged.

This bill seeks to prescribe the mechanisms to facilitate the disposition of government-
owned lands for socialized housing. Moreover, it also mandates that at least ten percent (10%) of
the proceeds of the sale of government-owned lands to private individuals or entities shall be set
aside for the development of socialized housing projects within, adjacent to the affected areas or in
nearby areas within the city or municipality concerned.

In view of the foregoing, early passage of this bill is earnestly sought. fi

Representative
Lone District, Muntinlupa City


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

House Bill No:__ 848

Introduced by HON. ROZZANO RUFINO B. BIAZON

AN ACT
PRESCRIBING THE MECHANISMS TO FACILITATE THE DISPOSITION OF
IDLE GOVERNMENT-OWNED LANDS FOR SOCIALIZED HOUSING

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

SECTION 1. Short
Owned Lands Disposition Act

tle. - This Act shall be known as the “Idle Government-

SEC. 2, Declaration of Policy. - It is hereby declared the policy of the State to ensure
the availability of sufficient lands for socialized housing purposes and improve the capability
of local government units (LGUs) in undertaking housing and urban development programs
and projects.

SEC. 3. Inventory of Lands. -To carry out the provisions of this Act, an inventory of
all idle government-owned lands shall be conducted within one (1) year from the effectivity
of this Act. The Housing and Urban Development Coordinating Council (HUDCC) through
the National Housing Authority (NHA), in coordination with the Department of Environmeny
and Natural Resources (DENR) through the Land Management Bureau (LMB), shall conduct
an inventory of all lands owned by the national government or any of its subdivisions,
instrumentalities or agencies, including government-owned or -controlled corporations
(GOCCS) and their subsidiaries which have not been used for the purpose for which they
have been reserved for the past ten (10) years.

The Department of the Interior and Local Government (DILG) through the LGUs
shall conduct an inventory of all local government-owned lands within their respective
localities which have remained idle. For monitoring purposes, the DILG shall furnish the
HUDCC a copy of its inventory.

‘The inventories stated in the preceding paragraphs shall be updated every three (3)
years.

SEC. 4. Identification and Setting Aside of Lands for Socialized Housing. ~ After
the conduct of the inventory:


(a) All LGUs are hereby directed to identify and set aside idle local government-
owned lands which are suitable for socialized housing: Provided, That the Housing and Land
Use Regulatory Board shall provide technical assistance to the LGUs in the identification
thereof and their eventual setting aside for and disposition as socialized housing sites:
Provided, further, That identified lands for socialized housing shall be integrated in the
Comprehensive Land Use Plan of LGUs; and

(b) The NHA, in coordination with the LMB, is likewise directed to identify idle lands
owned by the national government or any of its subdivisions, instrumentalities or agencies,
including GOCCs and their subsidiaries, which have not been used for the purpose for which
they have been reserved for the past ten (10) years to be set aside for socialized housing:
Provided, That such lands have been declared open for disposition whether through an act of
Congress or other related laws.

Except for local government-owned lands, all lands owned by the national
government or any of its subdivisions, instrumentalities or agencies, including GOCCs an
their subsidiaries identified for socialized housing, shall immediately be transferred to the
NHA to be set aside for the purpose subject to the approval of the President of the
Philippines: Provided, That lands comprising the acquired assets of the GOCCs and
government financial institutions (GFls) engaged in shelter financing that are taken
possession of in their ordinary conduct of business and lands they hold in trust for and on
behalf of their members are not covered under this Act.

SEC. 5. Sale, Alienation or Encumbrance of Other Government-owned Lands Not
‘Set Aside for Socialized Housing. — Whenever a government-owned land not set aside for
ialized housing, whether owned by the LGUs or the national government or any of its
ions, instrumentalities or agencies, including GOCCs and their subsidiaries, is sold,
alienated or otherwise encumbered in favor of private individuals or entities for its
development into industrial, commercial or other similar estates, there shall be set aside, as
may be necessary, at least ten percent (10%) of the proceeds thereof for the development of
socialized housing projects within, adjacent to the affected areas or in nearby areas within the
city or municipality in accordance with the local development land-use plan: Provided, That
lands comprising the acquired assets of GOCCs and GFls engaged in shelter financing that
are taken possession of in their ordinary conduct of business and lands they hold in trust for
and on behalf of their members are not covered under this Act: Provided, further, That low!
salaried employees of the government agency that sold, alienated or otherwise encumbered
such idle land shall be given first priority as beneficiaries of the socialized housing projects to
be developed.

SEC. 6. Conveyance of Segregated Land or Fund. — For land owned by the national
government or any of its subdivisions, instrumeatalities or agencies, including GOCCs and
their subsidiaries, the segregated land or fund shall be conveyed at no cost to the NHA which
shall be directly responsible for the developmeat of socialized housing projects: Provided,
however, That for a land owned by an LGU, the segregated land or fund shall be retained by
the concerned LGU to be utilized exclusively for its socialized housing projects.

SEC. 7. Implementation of Socialized Housing Projects. - For purposes of
implementing socialized housing projects on lands set aside for socialized housing and
utilizing the funds set aside from the sale, alienation and encumbrance of other lands not set

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aside for socialized housing, the concerned LGU and the NHA shall develop or cause the
development of projects pursuant to Sections 4, 5 and 6 of this Act.

Toward this end, the NHA and the concerned LGU are hereby authorized to enter into
joint venture agreements or other similar arrangements with private developers or
nongovernmental organizations (NGOs) engaged in housing production: Provided, That the
cost of housing unit, if constructed within the affected area or locality pursuant to Section 5
hereof, shall exclude the cost of land.

In all cases, the NHA and the concerned LGU shall coordinate with each other in the
development of socialized housing projects in the areas described in Section 5 of this Act.

SEC. 8. Incentives for Private Developers and NGOs. ~ To encourage private sector
and NGO participation in socialized housing projects described in Section 7 hereof, the
incentives provided in Section 20 of Republic Act No. 7279, otherwise known as the “Urban
Development and Housing Act of 1992”, on Incentives for Private Sector Participating in
Socialized Housing, shall apply.

SEC. 9. Implementing Rules and Regulations. — Within six (6) months after they
effectivity of this Act, the HUDCC and the DENR are hereby directed to promulgate the
necessary rules and regulations, including the mechanisms and procedures on the conduct of
inventory and identification of lands suitable for socialized housing, to effectively implement
the provisions of this Act. In drafting the implementing rules and regulations, the National
Urban Development and Housing Framework described in Republic Act No. 7279 shall be
taken into consideration.

SEC, 10. Separability Clause. — If any part or provision of this Act is declared
invalid for any reason, the remainder of this Act not affected thereby shall remain valid and
effective.

SEC. 11. Repealing Clause. — All laws, decrees, executive orders, letters of
instruction, rules and regulations or parts thereof inconsistent with any of the provisions of
this Act are hereby repealed, modified, superseded or amended accordingly.

SEC. 12. Effectivity. — This Act shal! take effect fifteen (15) days after its publication
in the Official Gazette or in a newspaper of general circulation.

Approved,