NTATIWES
Republic of the Philippines RE OEgyry
HOUSE OF REPRESENTATIVES Thy ED

Quezon City bare:
—_
twic:__ 2707

BY:
RESS

ae TON UNIT
SLU ANO-NDEX SERVICE

House Bill No._ 1721

SEVENTEENTH CON!

First Regular Session ;

Introduced by HON. ROZZANO RUFINO B. BIAZON

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 homelessness, we have thousands of housing units lying idle. ‘These idle government
assets were acquired with the people’s money and represent wastage of scarce government
resources.

Our country is also facing a problem of urban blight where many areas need urban
renewal. This situation is highly visible especially in some old government resettlement or
housing projects.

According to the University of the Philippines School of Urban and Regional
Planning (UP SURP), the above-stated problem is due to the confusing state set-up of our
housing bureaucracy. It said, “The existing institutional set-up for housing and urban
development is complex and is characterized by overlapping functions, mandates and
programs of the agencies involved.”


‘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.

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

Ah
bch INO B. Sesion
Representative

Lone District, Muntinlupa City


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
SEVENTEENTH CONGRESS

First Regular Session

9
House Bill No. 1721

Introduced by HON. ROZZANO RUFINO B. BIAZON

AN ACT

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 1
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.

See. 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:



(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 define 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 concems 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 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.

(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.

©) 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.

¢) 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) Maximum Participation of the Private Sector and 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
th ing conditions. Full community participation in housing and urban
development policies, programs and projects of government shall be encouraged.

(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 homelessness and unemployment. Government shall facilitate the
establishment of a finance system that enables all sectors of society to have the
opportunity to access funds and facilitate the provision of adequate shelter,
security of tenure and appropriate infrastructure, where subsidies, if provided, are
transparent in nature and targeted at those in need.

(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.

(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. Definition of Terms. — As used in this Act, the following terms shall mean:
(a) Devolution ~ the transfer of responsibility, authority and accountability for the

performance of a defined function from the national government to local
governments;

(b) 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;

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;

(d) 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, security, and other aspects related to an individual's
residence;

(e) 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;

(0) 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;

(g) 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;

(h) 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;

(i) 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;

(j) 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, hereinalter referred to as
the Department.


See. 6. Powers and Functions. — The Department shall perform the following
function:

(a) Formulate the national urban development and shelter policy and strategy that is
consistent with the National Development Plan;

(b) 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 servi
delivery programs of national government and local governments, and facilitate
private sector investment;

(c) 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;

(d) 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;

(e) 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;

(0) 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;

(g) Delineate areas for priority development as urban renewal areas and prepare
programs for their regeneration;

(h) 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;

(i) 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;

(i) Coordinate the policies and programs of attached agencies; and

(k) 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

— The Department Proper shall be composed of the Office of the
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:

(a) Advise the President on the promulgation of rules, regulations and other issuances
relative to matters under the jurisdiction of the Department;

(b) Establish policies and standards for the efficient and effective operations of the
Department in accordance with the programs of the government;

(c) Promulgate rules, regulations and other issuances necessary in carrying out the
Department’s mandate, objectives, policies, plans, programs and projects;

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

(e) Delegate authority for the performance of any administrative or substantive
function to subordinate officials of the Department; and

(f) 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
‘conomic and Development Authority (NEDA) Board, the governing boards of the Social
urity 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 (INFRACOM) 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
(HGC) 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, and 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
ervice, 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;

©) 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 make recommendations on the financial and physical performance of
the Department’s programs, projects and activities; and

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

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;

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

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

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

4) Publish and disseminate research and development information to the public to
promote innovation in the various aspects of housing and urban development; and

¢) 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;

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

4) 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;


©) 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 a
and promote the sophisti
transaction proce:

tance to improve computer literacy
ted use of information technology in planning, analysis,
ing and decision-making;

©) 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

2) Perform such other functions as may 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, local governments, the private sector, urban poor communities, academe, and other
marginalized groups, to provide a forum for stakeholder participation and dialogue on key
housing and urban development issues and policies.

Sec. 19. Staffing Pattern. — The Secretary shall prepare and implement a staffing
pattern for the Department proper that shall be based on an assessment of the personnel
requirements of the entire Department. The remuneration structure of the positions in the
staffing pattern shall conform to the Salary Standardization Law. The Department of Budget
and Management shall fund in full the staffing pattern of the Department.

The internal structure and the specific number of divisions that will comprise each of
the above bureaus and units under the Department 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 polic:

(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 agencit



(d) Conduct of research and development in housing technologies and into housing
and urban development;

(©) 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;

(2) 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

(j) 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 followin;

(1) Plans, Policies and Programs 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

mework and the National Shelter Program;

(b) Establish and implement a national housing and urban development
planning system and coordinate the preparation and timing of the sectoral
plans of national government agencies with the local development plans of
local government units, ensuring their consistency with the National
Urban Development and Housing Framework, the National Shelter
Program and the Medium-Term Philippine Development Plan;

(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;

(@) 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;

10


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

(8) 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

(©) Perform such other related functions as may be assigned by the Secretary

11


(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 @
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 finan

(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;

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

(h) Perform such other functions as may be ai

igned by the Secretary.
CHAPTER 6
URBAN DEVELOPMENT AND HOUSING OPERATIONS OFFIC!
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:

(a) Development of the capacity of local governments to plan, implement and monitor
housing, land management, urban development and urban regeneration programs;

(b) Development and administration of the national government subsidy program for
social housing:

(c) Provision of advice and guidance on the development of housing finance market
in the Philippines; and

12


(a) 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 and implementation of local land use plans and
zoning ordinances of municipalities and component cities; the zoning
components of civil works and infrastructure projects of the national,
regional and local governments located within the geographical
jurisdiction of the province or independent component city; subdivision or
estate development projects of the public and private sectors; and urban
renewal plans, programs and projects; 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;

(ec) 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;

(1) 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;

13


(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

(0) Perform such other functions as may be assigned by the Secretary.
CHAPTER 7
OFFICE FOR 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.

Se

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

14


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 other government agencies;

(d) Review all local development and land use plans of provinces and independent
cities for purposes of ensuring compliance with laws:

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

() Monitor, investigate and assess compliance to approved subdivision and
condominium plans; and for the purpose, impose fines/penalties and, on its own or
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 in 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;

( 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;

(1) 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;

15


(m)Administer homeless assistance or advances/grants to LGUs, NGOs and private
communities for temporary and emergency housing, in response to man-
made 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:

26. Attached Agencies and Corporations. ‘The following agencies and
corporations are hereby attached to the Department for policy and program coordination:

(a) National Housing Authority (NHA);

(b) Housing Guarantee Corporation (HGC);

(©) National Home Mortgage Finance Corporation (NHMFC);

(d) Home Development Mutual Fund (HDMF); and

(c) Housing and Urban Development Adjudication Commission (HUDAC),

See. 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

16


conduct studies and initiate activities for greater private sector par
and for its eventual privatization over the medium term,

pation in the short-term

Sec. 30. Home Development Mutual Fund (HDME), ~The Fund shall continue its
function of providing a savings system for public and private sector employees with housing
as its primary investment, as provided for in P.D. 1752, as amended by E.0. 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 NHMEC and the HDMP,

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:

(a) 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 rules 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;

(b) 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;

(c) To issue writs, orders to execute demolition, or seizure or closure of property in
accordance with its decision;

(d) 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:

(e) To hold any person in contempt, directly or indirectly, and impose appropriate
penalties thereof;

(f) To impose administrative fines and /or penalties for violation of this Act, the
Urban Development and Housing Act and other laws implemented by the
Commission, including pertinent rules and regulations, orders, decisions and/or
rulings: Provided, That the maximum fines or penalties to be imposed shall not

7


exceed Five Hundred Thousand Pesos (P500,000.00): Provided further, That the
Commission may adjust such rates not more than once every three (3) years;

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

(h) To deputize any law enforcement agency in the execution of its final orders,
rulings or decisions; and

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

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

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 bane or in five (5) divisions, each composed of three (3)
members. Subject to the penultimate sentence of this paragraph, the Commission shall sit en
bane 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 Luzon. The fourth and fifth divisions, cases from the Visayas and Mindanao,
respectively: Provided, That the Commission sitting en bane may, on temporary ot
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.

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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 partes

‘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 bane 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:

(a) 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;

(b) 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;

(c) 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; and

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

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Sec. 37. Jurisdiction. The Housing and Land Use Arbiters shall exercise original and
exclusive jurisdiction to hear and decide cases involving the following:

(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;

() Disputes involving buyer-financing agreements with any financing
institution for condominium/subdivision projects;

(g) Disputes involving easements or right of way
development of subdivision and housing projects;

ing from the

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

(i) Releases of mortgage titles of subdivision lots and condominium units;
() Disputes involving easement of waterways, drainage, connections and

light and view arising from the development of subdivision and housing
projes

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

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

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

(n) Regulation of the relationship between residential lessors and lessees that
are governed by the Rent Control law.

(2) On Housing and Land Use Planning and Regulation - Decisions and actions of: (a)
local housing boards or provincial governments, highly urbanized independent
component cities and the cities and municipalities of Metro Manila; (b) regional
and local physical planning and zoning bodies, including zoning boards of
adjustment and appeals on complaints alleging violations of local zoning
ordinances not involving land conversion issues; and (c) provincial and

20


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.

(i) 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.

See, 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 Art * a) he/she represents hinv/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

(@) 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

21


the application, implementation, enforcement or interpretation of this Act and other pertinent
laws on housing and just and humane eviction or demolition 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:

(a) Review, evaluate and approve or disapprove comprehensive local development
plans, local land use plans and zoning ordinances of component cities and
icipalities; the zoning components of civil works 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 review 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;

(b) 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

22



subdir n or condominium projects, subject to the standards and requirements of
the Department;

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

(d) Conduct public hearings and consultations on the promulgation of regulation;

(©) Formulate and adopt rules and procedures for rule enforcement,

() Provide information to the Department necessary in the monitoring of local urban
development and housing in accordance with the report content and formatting

guidelines of the Department; and

(g) Perform such other related regulatory functior

5 may be provided for by law.

CHAPTER 11
TRANSITORY PROVISIONS

Sec. 46, Transfer of Functions. — The following functions are hereby transferred as
stipulated hereunder:

(a) 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; and

(b) 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:

(a) 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

23


selection process as prescribed under Republic Act No. 6656 on the Rules on
Government Reorganization.

(b) 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.

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 nece:
unexpended_portior
property, assets, eq

ary, including
of their appropriations, except the assets, pertinent funds, records,
ment 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 pattems,
operating systems and revised budgets of the Department and the Commission, shall be
completed within six (6) months during which existing personnel 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, 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 and Regulations and Other
Implementation Mechanisms. ~The following implementing rules and regulations (IRR) shall
be prepared and issued as indicated hereunder:

(a) 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;

(b) 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;

24


(c) 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; and

(d) 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 fitth 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.

25


Sec. 60. Effectivity. —'This Act shall take effect fifteen (15) days after its publication
in at least two (2) newspapers of general circulation.

Approved,

26