NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
)
f|bj| Senate
of tije &■'. ci rtni7>
*22 JUL25 AlO '29
S. No.
SENATE
799
RKCEIVED BY:
Introduced by Senator Jinggoy Ejercito Estrada
AN ACT
CREATING A LOCAL HOUSING BOARD IN ALL CITIES AND FIRST TO THIRD 
CLASS MUNICIPALITIES/ PROVIDING FOR ITS POWERS AND FUNCTIONS/ 
AND FOR OTHER PURPOSES
EXPLANATORY NOTE
Section 2 of the Urban Development and Housing Act of 1992 provides that 
the State shall "undertake, in cooperation with the private sector, a comprehensive 
and continuing Urban Deveiopment and Housing Program."
To ensure the achievement of the objectives of this Program, Section 6 called 
for the formulation of a comprehensive plan for urban and urbanizable areas. Under 
this comprehensive plan the following responsibilities were given to the Local 
Government Units (LGUs):
(1) inventory of lands for socialized housing, under Section 7;
(2) identification of sites for socialized housing, under Section 8;
(3) registration of socialized housing beneficiaries, under Section 17; and
(4) monitoring of compliance by developers of the twenty percent (20%) 
balanced housing provision, under Section 18.


With the total housing need at 6.7 million and the number of Informal Settler 
Families at 3.8 million1, clearly there is a need for a specialized body in our LGUs 
that shall ensure the faithful and proactive execution of l ousing programs at the 
local level. A void at the local level In the form of a mechanism to hasten the delivery 
of shelter services to our people, especially those who need it most, needs to be 
filled up.
It is envisioned that this proposed measure will provide an administrative 
machinery at the local level to carry out the implementation of the DOHA as well as 
cope with the fast pace of urbanization of the country. Another reason for the 
passage of this bill is that there Is also a need to institutionalize multi-sectoral 
representation in local housing initiatives. This is premised on the fact that the 
success of these programs will, to a large extent, depend on the direct participation 
and cooperation of the stakeholders In the planning and implementation process.
In view of the foregoing, the passage of this bill is earnestly sought.
INGfiOY EJERCrrO ESTRADA
1 Department of Human Settlements and Urban Development (DHSUD) FY 2022 Budget Presentation
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NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
S. No.
SENATE
799
.'il
•22 JUL25 A10:29
RtCEIVED BY;
Introduced by Senator Jlinggoy Ejercito Estrada
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Act'.
to:
AN ACT
CREATING A LOCAL HOUSING BOARD IN ALL CITIES AND FIRST TO THIRD 
CLASS MUNICIPALITIES, PROVIDING FOR ITS POWERS AND FUNCTIONS, 
AND FOR OTHER PURPOSES
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled:
Section 1. Short Tide. - This Act shall be known as theLocal Housing Boards 
Sec. 2. Declaration of Policy. - It is hereby declared the policies of the State
a) 
Adopt a continuing housing program that will make available at 
affordable cost, decent: housing and basic services to ail, especially the 
underprivileged and homeless;
b) 
Protect urban and rural poor dwellers from evictions or demolitions 
undertaken in violation of the law;
c) 
Require all national agencies and offices to conduct periodic 
consultations with appropriate local government units (LGUs), Non- 
Governmental Organizations (NGOs) and People's Organizations (POs), 
and other concerned sectors of the community before any project or 
program is Implemented in their respective jurisdictions;
d) 
Promote and institutionalize the participation of the private sector, 
NGOs, and POs in the urban and rural development process; and


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e) Promote genuine and meaningful local autonomy to political subdivisions
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of the State to enable them to attain their fullest development as self-
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sufficient communities and make them more effective partners in the
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attainment of national goals.
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Toward these ends, the State shall provide for a more responsive and
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accountable local government structure Instituted through a system of
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decentralization whereby LGUs, through the creation of Local Housing Boards, shall
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be given more powers, authority, responsibilities and resources in the planning and
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execution of their housing programs.
Sec. 3. Definition of Terms. - For purposes of this Act, the following terms:
a) 
Baianced Housing Requirement shall refer to the responsibility given to 
developers of subdivision projects pursuant to Section 18 of the Urban 
Development and Housing Act (UDHA) of 1992;
b) 
Comprehensive Land Use Rian shall refer to the primary and dominant 
bases for land use, applying a rational approach for allocating available 
land resources as equ'tably as possible among competing user-groups 
and for different functions, consistent with the development and zoning 
plan of the area and the provisions of the UDHA;
c) 
Economic Housing shall refer to a type of housing project provided to 
moderately low inconrie families with lower interest rates and longer 
amortization periods;
d) 
Local Shelter Rian shall refer to a general framework that effectively 
provides a step-by-step procedure by which cities and municipalities 
could formulate solutions to their housing problems. It shall include 
measures to enable cities and municipalides to plan and implement their 
specific mandates based on the UDHA, and to facilitate a linkage with 
comprehensive land use plans as defined under this Act;
e) 
Non-Government Organization shall refer to a non-stock, non-profit 
domestic corporation or organization as defined under Section 34 (H) (2) 
(c) of the Tax Code organized and operated exclusively for scientific, 
research, educational, character building, youth and sports development, 
health, social welfare, cultural or charitable purposes, or a combination
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thereof, no part of the net income of which inures to the benefit of any
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private individual;
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f) 
NUDHFshdiW refer to the comprehensive plan for urban and urbanizable
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areas aimed at achieving the objectives set forth under the UDHA of
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1992;
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g) 
Peopled Organization shall refer to a bonafide association of citizens with
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demonstrated capacity to promote the puollc interest and with
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identifiable leadership, membership, and structure;
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h) 
^4//*a//4/(eJ5shall refer to those areas that are not urban areas as defined
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under this Act;
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i) 
Socialized Housing shs\\ refer to housing programs and projects covering
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houses and lots or home lots only undertaken by the Government or the
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private sector for the underprivileged and homeless citizens which shall
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include sites and services development, long-term financing, liberalized
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terms on interest payments, and such other benefits In accordance with
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the provisions of the UDHA;
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j) 
Underprivileged and Homeless Rural or Urban Poor Dwellers shall refer
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to individuals or families residing in rural or urban areas whose income
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or combined household income falls within the poverty threshold as
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defined by the National Economic Development Authoritv and who do
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not own housing facilities, and shall include those who live in makeshift
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dwelling units and do not enjoy security of land tenure;
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k) 
Urban Areas shall refer to all cities regardless of their population density
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and to municipalities with a population density of at least five hundred
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(500) persons per square kilometer;
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I) 
Local Housing Boards shall refer to all housing boards in cities and first
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to third class municipalities created under this Act; and,
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m) Local Housing Office shall refer to the implementing body of the Local
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Housing Board.
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Sec. 4. Local Housing Boards Creation and Composition. - There shall be
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created a Local Housing Board, hereinafter referred to as the Board, in all cities and
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first to third class municipalities as classified by the Secretary of Finance: Provided^


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That fourth and fifth class municipalities may create their own Local Housing Board if 
they so desire. The Board shall be composed of the following:
a) The City/Municipal Mayor as Chairperson;
b) The Vice Mayor as Vice Chairperson;
c) The Chairperson of the Sangguniang Bayan Committee on Housing and Urban 
Development or Its equivalent as Member;
d) The City/Municipal Planning and Development Coordinator as Member;
e) The City/Municipal Engineer as Member;
f) A representative of the housing agencies to be designated by the Department 
of Human Settlements and Urban Development (DHSUD) as Member;
g) A representative from a private organization engaged in subdivision and 
housing development operating in the city or municipality as Member;
h) A representative from Pos operating in the city or municipality as Member: 
Provided, That a PO already represented in any local special body may be 
concurrently represented in any local housing board; and,
i) A representative from NGOs operating in the city or municipaiity as Member 
Provided, That an NGO already represented in any local special body may be 
concurrently represented in any local housing board. Representatives to the 
Board from organizations mentioned in the last three paragraphs of this 
section shall be selected through the same process as that of filling up the 
representatives of the local special bodies.
Sec. 5. Powers and Functions. - Local Housing Boards shall have the following 
powers and functions:
a) 
Formulate, develop, and recommend to the Sanggunian, policies, 
directives, rules and regulations, consistent with laws, as it may deem 
necessary, on the provision of decent and affordable housing and 
resettlement areas and on the observance of the right of the 
underprivileged and homeless to just and humane evictions and 
demolitions;
b) 
With the assistance of the (DHSUD) and other concerned government 
agencies, prepare a Local Shelter Plan which shall form part of the 
city/municipal development plan: Provided, That such plan shall be


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consistent with the city/munidpal land use plan: Provided further. That 
public hearings shall be conducted for the purpose;
c) 
Approve preliminary and final subdivision schemes and development 
plans of subdivisions and condominiums in accordance with the 
provisions of Presidential Decree No. 957, as amended, otherwise known 
as the Subdivision and Condominium Buyers' Protective Decree, and its 
implementing standards, rules and regulations concerning subdivisions 
and condominiums;
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Approve preliminary and final subdivision schemes and development 
plans of all economic and socialized housing projects as well as individual 
or group building occupancy permits covered by Batas Pambansa Big. 
220 and its implementing standards, rules and regulations;
e) 
Evaluate and resolve the opposition to the Issuance of development 
permits for any of the projects stated in the two (2) preceding sub­
sections, in accordance with the said laws and the Rules of Procedure 
promulgated by the (DHSUD) incident thereto;
0 Designate at least one (1) representative to their respective local 
development councils: Provided, That said representative is not already 
a member of the council;
g) 
Recommend to the Sanggunian, the sites for socialized housing, subject 
to the requirements prescribed by Section 8 of R.A. 7279 and guidelines 
issued for the purpose;
h) 
Advise the Sanggunian on matters of local taxation which may affect the 
local government housing program, which lnc>udes, but shall not be 
limited to, the formulation of a socialized housing tax, idle land tax, and 
an additional levy on the real property tax to constitute a Special 
Socialized Housing Fund;
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Recommend, for approval of their respective Local Chief Executives 
(LCEs), formulated schemes for the acquisition and disposition of lands 
within their localities for socialized housing purposes, subject to Section 
9 to 14 of R.A. 7279 and its implementing guidelines: Provided, That 
such schemes shall ensure that the valuation of a particular land for


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socialized housing purposes shall be within the affordability levels of 
prospective beneficiaries;
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Recommend for approval of their respective LCEs, partnership 
arrangements with the national government on the provision of decent 
and affordable shelter;
k) 
Through the local chief executive, submit to the President and the 
Congress of the Philippines, an annual report as provided by Section 41 
of RA 7279; and,
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Perform such other related functions established by law or ordinance, as 
necessary to implement the mandate of local government units under 
the UDHA.
Sec. 6. Local Housing Office Creation and Functions. - There shall be created 
a Local Housing Office in all cities and municipalities which shall heretofore become 
a regular office under the local government unit and serve as the Implementing arm 
of the Board. The Urban Poor Affairs Office or its equivalent office in cities or 
municipalities shall be converted into the Local Housing Office and in addition to its 
existing functions, shall have the following additional functions:
a) Assist the Board in the preparation of the local shelter plan;
b) Assist the city/municipal development councils in the formulation of their 
respective comprehensive land use plans;
c) Oversee and coordinate government activities relative to consultation, 
relocation, and resettlement of underprivileged and homeless urban or 
rural poor dwellers in cases where evictions and demolitions affecting 
them are necessary and allowed by existing laws;
d) Ensure that the balanced housing requirements as provided in Section 18 
of R.A. 7279 and its Implementing rules and regulations are Implemented 
and enforced;
e) In coordination with other offices within the LGU, monitor the nature and 
progress of land development of projects that the Board has approved, as 
well as housing construction in the case of house and lot packages, to 
ensure their faithfulness to the approved plans and specifications thereof, 
and impose appropriate measures to enforce compliance therewith;


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f) Conduct an inventory of all lands within their . espective localities, and 
update the same every three (3) years, in accordance with Section 7 of 
RA 7279 and guidelines Issued for the purpose;
g) Identify the sites for socialized housing, subject to the requirements 
prescribed by Section 8 of R.A. 7279 and guidelines issued for the 
purpose,
h) Ensure the registration of underprivileged and homeless urban or rural 
dwellers as socialized housing beneficiaries under Sections 16 and 17 of 
R.A. 7279: Provided, That the Local Housing Office shall assume the 
functions of city or municipal registration commitiiaes as constituted under 
the implementing rules and regulations of the same sections;
i) Ensure the prevention of proliferation of professional squatters and 
squatting syndicates within Its jurisdiction;
j) Ensure the enforcement of laws, policies and programs on housing and 
shelter as provided for under laws and such directives, rules and 
regulations adopted by the Board;
k) Assist in the organization of housing and shelter cooperatives, associations 
or organizations in establishing linkages with government agencies and 
NGOs involved in the promotion and integration of the concept of shelter 
development and generation, taking into account the livelihood of the 
people and other community activities;
l) Provide technical and other forms of assistance to existing housing 
associations or cooperatives to enhance their viability as economic 
enterprises and social organizations;
m) Coordinate with government agencies and instrumentalities performing 
functions which may affect housing and urban development; and,
n) Perform such other duties and functions as may be prescribed by law or 
ordinance.
Sec. 7. Local Housing Officer. - The local housing office shall be headed by a 
Local Housing Officer who shall be a career official. No person shall be appointed 
Local Housing Officer unless, he is a citizen of the Philippines, a resident of the LGU 
concerned, of good moral character, a holder of a college degree either in public


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administration, urban planning, civil engineering, economics, development studies or 
such other related courses. He must have at least five (5) years experience In the 
case of cities, and three (3) years experience in the case of municipalities, either in 
housing development projects, organization of housing associations or cooperatives, 
management and operation of housing and shelter programs or such other related 
activities.
Sec. 8. Generation and Mobilization of Resources. - The Boards are hereby 
constituted as the primary entities tasked to advise local development councils on 
matters of sourcing of funds for socialized housing. For this purpose, the Boards may 
recommend the following schemes for funding socialized housing projects:
a) Bulld-operate-transfer and other related schemes;
b) Bond flotation and other credit financing arrangements;
c) Availment of foreign or local grants: Provided, That local housing boards 
are hereby authorized to receive foreign and local grants which shall be 
remitted to the local treasury, and shall be credited to the socialized 
housing account of the local government unit concerned;
d) Loan packages from government financing/lending institutions;
e) Joint venture projects with private sector groups or developers and with 
NGOs and POs; and,
f) Pooling of resources between and among LGUs, the private sector, NGOs 
and POs.
Sec. 9. Meetings and Quorum. - The Board shall have Its meeting at least 
once a month or as often as may be deemed necessary. The presence of the 
Chairperson or the Vice-Chairperson and a majority of the members of the Board 
shall constitute a quorum. Special meetings may be called by the Chairperson or by 
a majority of the members when situations so warrant. Decisions shall be reached by 
the Board through a simple majority,
A written notice of the date, time, place and agenda of the meeting shall be 
sent to each member of the Board at least three (3) days prior to the scheduled 
meeting or at least one (1) day, if it is a special meeting.
Sec. 10. Compensation and Remuneration. - Members of the Board who are 
not government officials or employees shall be entitled to the necessary traveling
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expenses and allowances chargeable against the funds of the local housing board
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concerned; subject to existing accounting and auditing rules and regulations.
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This does not cities and municipalities from mobilizing other possible funding
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sources for the compensation and remuneration of members of the Board who are
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not government olficials or emplov ees.
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Sec. 11. Special Housing Trust Fund. - Cities and municipalities shall establish
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a special account to be called the "Special Housing Trust Fund" to initially establish
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the local housing office and as source of funds for the housing programs of the
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city/municipallty for the underprivileged and homeless. Sources of said trust fund
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shall come from, but not limited to, the following:
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a) Proceeds generated from the collection of the additional one-half percent
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(0.5%) tax on real properties;
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b) All funds/monies generated from various sources intended for housing
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and other related deve'opment programs; and,
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c) All payments, remittances, accrued interests, penalties, and such other
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fees generated from housing related activities.
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Sec. 12. Roles of Stakeholders. - In order to facilitate the work of the Board,
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the roles of the stakeholders shall oe as provided for under this section:
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a. The Local Government Unit shall:
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1) Identify and prioritize areas for housing development;
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2) Plan on the total housing need of its constituents;
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3) Provide basic information relative to the areas that may be proposed for
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issuance of Presidential Proclamation;
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4) Assist in the conduct of verification survey;
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5) Monitor and oversee the Implementation of the activities in accordance with
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their respective work programs; and,
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6) Prepare the detailed work program for approved housing projects.
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b. Housing and Urban Development Coordinating Council shall:
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1) Recommend to the local housing board, options for the development of sites
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or disposition schemes to the Intended beneficiaries;


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2) Process and recommend to the President, idle or underutilized governm.ent 
ands identified by the local housing board as sites which are suitable for 
housing purposes;
3) Solicit assistance from other national government agencies whose functions 
and services are necessary in the provision of housing and delivery of basic 
services;
4) Through the National Housing Authority (NHA), prepare the Master 
Development Plans of the areas identified for housing;
5) Identify and recommend housing projects/programs which can be 
implemented and funded through alternative schemes; and,
6) Draw-up guidelines as well as Terms of Reference to cover the 
implementation of identified priority housing projects.
The Presidential Commission for the Urban Poor shall:
1) Monitor all evictions and demolitions, whether extra-judicial or court-ordered, 
involving homeless and underprivileged citizens;
2) Require the concerned departments and agencies, including concerned LGUs, 
proposing to undertake demolition and eviction activities to secure first from 
either the PGUP Central Office, in the case cf national projects, or from the 
PGUP Regional Office concerned, in the case of regional or local projects, the 
checklists, guidelines and compliance certificates on demolition and eviction 
prior to the actual implementation thereof and thereafter, submit to the PGUP 
the completed checklist, attested to under oath by the proponent that the 
provisions of Section 28 of RA 7279 or Its implementing rules and regulations 
have been complied with;
3) Based on the completed checklist and subject to further verification, issue 
demolition and eviction compliance certificates to proposed demolitions and 
evictions involving homeless and underprivileged citizens;
4) Investigate motu propio or upon complaint by any party, any violation of the 
provisions of Section 28 of RA 7279 and its implementing rules and 
regulations;
5) File motu proprio or by way of assistance to any aggrieved party, the 
appropriate criminal, civil or administrative case against any person or
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persons found to have violated the provisions of Section 28 of RA 7279 or its
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implementing rules and regulations; and,
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6) Such other functions as provided for under Executive Order No. 152, series of
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2002.
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d. The PO and NGO representatives shall:
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1) Assist in the holding of dialogues and consultations with affected families
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leading to their full acceptance and support to the program;
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2) Provide feedback mechanism to the Local Housing Board and ensure urban
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poor participation in the decision-making process;
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3) Assist the Local Housing Board in processing applications and documents;
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4) Provide support to the local housing board in the community relations, social
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preparations and Information disseminations and motivation activities at the
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identified housing sites;
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5) Actively participate in the drawing up of the development plan for the area;
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and,
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6) Identify pro-poor programs to uplift the socio-economic conditions of the
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affected urban poor residents.
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Sec. 13. Penalties. - Unjustified failure or refusal of a mayor to constitute the
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local housing board as created and defined by this Act, shall subject the national and
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local government officials and employees responsible for the such omission,
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misrepresentation, fraud, or unjustified failure or refusal to:
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a) disciplinary action under Book I, Title Two, Chapter 4 of the Local Code;
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and/or
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b) Government prosecution under the penalty clause of the UDHA.
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Sec. 14. Transitory Provisions. - Local chief executives of cities and first to
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third class municipalities shall constitute their respective Boards within ninety (90)
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days from the promulgation of th a Implementing rules and regulations of this Act.
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Local Chief Executives of fourth to sixth class municipalities are given a minimum of
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two (2) years from the promulgation of the implementing rules and regulations of
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this Act to constitute their Boards. Failure to constitute the Board within this
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prescribed period shall be prima facie evidence of unjustified failure or refusal to do
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so.
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Cities and municipalities with existing local housing and urban development 
boards or similar entities are hereby given ninety (90) days from the promulgation of 
the implementing rules and regulations of this Act to conform with the provisions of 
this Act: Provided, That nothing herein stated shall preclude cities and municipalities 
from designating additional functions and/or appropriating additional funds to 
achieve the objectives of this Act.
Sec. 15. Implementing Ruies and Regulations. - Within sixty (60) days after 
the approval of this Act, the HUDCC and the DILG, in consultation with the 
concerned government agencies, the private sector, POs and NGOs, shall formulate 
the appropriate rules and regulations necessary to effectively implement any or all of 
the provisions of this Act. Such rules and regulations shall include, among others, 
guidelines on the following:
a) Resource generation and mobilization for socialized housing purposes;
b) Schemes for local government housing assistance; and,
c) Accreditation and selection of representatives of the private sector, NGOs 
and POs to the local housing board.
Sec. 16. Repealing Clause. - (a) Sections 447 (a) (2) (x) and 458 (a) (2) (x) of 
the Local Government Code are hereby repealed; (b) Section 107 (b) of the Local 
Government Code Is hereby amended; and (c) All laws, decrees, executive orders, 
proclamations, rules and regulations, and other Issuances, or part or parts thereof, 
which are inconsistent with the provisions of this Act are hereby repealed or 
modified accordingly.
Sec. 17. Separability Clause. - If for any reason, any provision of this Act is 
declared Invalid or unconstitutional, the remaining provisions not affected thereby 
shall continue to be in force and effect.
Sec. 18. Effectivity Clause. - This Act shall take effect fifteen (15) days after 
its publication in the Official Gazette or at least two (2) newspapers of general 
circulation.
Approved,
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