NINETEENTH CONGRESS OF THE) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
SENATE
S. No. 1202
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*22 AUG 17 A8 :47
RL:CEiV£D 3V;
Introduced by Senator Manuel "Lito" M. Lapid
AN ACT
ESTABLISHING AN ON-SITE, IN-CITY OR NEAR-CITY RESETTLEMENT 
PROGRAM FOR INFORMAL SETTLER FAMILIES IN ACCORDANCE WITH A
PEOPLE'S PLAN AND MANDATING RELOCATING LOCAL GOVERNMENT 
UNITS TO PROVIDE OTHER BASIC SERVICES AND LIVELIHOOD 
COMPONENTS IN FAVOR OF THE RECIPIENT LOCAL GOVERNMENT UNIT, 
AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 7279, AS AMENDED, 
OTHERWISE KNOWN AS THE "URBAN DEVELOPMENT AND HOUSING ACT
OF 1992"
EXPLANATORY NOTE
. The Philippines is urbanizing in an unprecedented pace and this entails 
challenges. The country sees the increasing number of people leaving the rural areas 
and moving to urban centers in search for employment opportunities, quality 
education, modern infrastructure facilities, health care, better standard of living, etc. 
As the country struggle to keep pace with the rapid urbanization, informal settlements
grow and demands for housing, basic services, functional transport systems, and jobs 
are piling up.
According to the World Bank, In 2014, about forty five percent (45%) of the 
total Filipino population lived in cities, and by 2050, over 56 percent are expected to 
be living in urban areas. The National Housing Authority (NHA) estimates that there 
are about 1.5 million informal settler families or ISFs across the Philippines and a study 
by the University of Asia and the Pacific, projected the country to have a housing need 
of 12.3 million by 2030.


The Government must do its best to provide its constituents not just four walls 
and a roof but an adequate housing. Where occupants have a degree of tenure 
security which guarantees them legal protection against forced evictions, harassment 
and other threats. Where basic services, social facilities and modern infrastructure are 
available. And where housing is affordable, livable and accessible.
This bill seeks to amend Republic Act No. 7279 or the Urban Development and 
Housing Act of 19992 [UDHA] to prioritize on-site, in-city or near-city resettlement for 
informal settler families. By requiring genuine consultation and people's participation 
in the planning and implementation of the Government's policy and programs on
national housing, this bill seeks to uphold every Filipino's right to adequate housing 
and standard of living.
Under this bill, priority shall be given to in-city or near-city resettlement 
program if revitalization of occupied properties is not possible.
Part of this effort is giving a greater role for the ISF-beneficiaries in crafting the 
policies concerning their housing and resettlement. By taking part in the process, the 
ISF-beneficiaries are given their share of ownership of our country's housing program.
In view of the foregoing, the passage of this measure is earnestly sought.
lUEL "LITO" M. LAPID
Senator


NINETEENTH CONGRESS OF THE) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
SENATE 
s. Nol 202
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'll AUG 17 A8 'A1
RKCEIVEO BV
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Introduced by Senator Manuel "Lito" M. Lapid
AN ACT
ESTABLISHING AN ON-SITE, IN-CITY OR NEAR-CITY RESETTLEMENT 
PROGRAM FOR INFORMAL SETTLER FAMILIES IN ACCORDANCE WITH A 
PEOPLE'S PLAN AND MANDATING RELOCATING LOCAL GOVERNMENT 
UNITS TO PROVIDE OTHER BASIC SERVICES AND LIVELIHOOD 
COMPONENTS IN FAVOR OF THE RECIPIENT LOCAL GOVERNMENT UNIT, 
AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 7279, AS AMENDED, 
OTHERWISE KNOWN AS THE "URBAN DEVELOPMENT AND HOUSING ACT
OF 1992"
Be it enacted by the Senate and House of Representatives of the Phiiippines in 
Congress assembled:
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SECTION 1. Short Title. - This Act shall be known as the "On-site, In-City or
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Near City Resettlement Act"
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SECTION 2. Amendatory Provisions. - For purposes of this Act, the following
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provisions of Republic Act No. 7279, otherwise known as the "Urban Development and
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Housing Act of 1992", are hereby amended as follows:
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(a) Section 3 of Republic Act No. 7279
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SECTION 3. Definition of Terms. - For the purposes of this Act:
XXX
(w) xxx; [and]


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(x) 'Zonal Improvement Program or ZIP' refers to the program of 
the National Housing Authority of upgrading and improving blighted 
squatter areas within the cities and municipalities of Metro Manila 
pursuant to existing statutes and pertinent executive issuances[.];
(Y) 'ADEQUATE AND GENUINE CONSULTATION' REFERS TO THE 
STANDARD OF CONSULTATION WITH THE AFFECTED INFORMAL 
SETTLER FAMILIES (ISFS) WHICH SHALL REQUIRE THE FOLLOWING:
(1) EFFECTIVE DISSEMINATION OF RELEVANT INFORMATION 
AND DOCUMENTS, INCLUDING LAND RECORDS, HOUSING 
BUDGETS, THE PROPOSED PLAN OR PROJECT, ALTERNATIVE 
HOUSING OPTIONS, AND COMPREHENSIVE RESETTLEMENT 
PLANS;
(2) REASONABLE TIME FOR THE PUBLIC TO REVIEW, COMMENT, 
AND OBJECT TO THE PROPOSED PLAN OR PROJECT;
(3) PROVISION BY THE GOVERNMENT OR NON-GOVERNMENT 
ORGANIZATIONS OF LEGAL, TECHNICAL, AND OTHER ADVICE TO 
AFFECTED PERSONS ON THEIR RIGHTS AND OPTIONS;
(4) PUBLIC HEARINGS THAT PROVIDE AFFECTED ISFS AND 
THEIR ADVOCATES WITH OPPORTUNITIES TO CHALLENGE THE 
EVICTION DECISION, PRESENT ALTERNATIVE PROPOSALS, AND 
ARTICULATE THEIR DEMANDS AND DEVELOPMENT PRIORITIES; 
AND
(5) IN CASE NO AGREEMENT IS REACHED ON THE PROPOSALS 
OF THE CONCERNED PARTIES, THE MATTER SHALL BE BROUGHT


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BEFORE THE HUMAN SETTLEMENTS ADJUDICATION 
COMMISSION; "
(Z) 'CIVIL SOCIETY ORGANIZATIONS OR CSOS' REFERS TO NON­
GOVERNMENTAL ORGANIZATIONS (NCOS), PEOPLE'S ORGANIZATIONS 
(POS), COOPERATIVES, TRADE UNIONS, PROFESSIONAL 
ASSOCIATIONS, FAITH-BASED ORGANIZATIONS, MEDIA GROUPS, 
INDIGENOUS PEOPLES MOVEMENTS, FOUNDATIONS, AND OTHER 
CITIZEN'S GROUPS FORMED PRIMARILY FOR SOCIAL AND ECONOMIC 
DEVELOPMENT TO PLAN AND MONITOR GOVERNMENT PROGRAMS AND 
PROJECTS, ENGAGE IN POLICY DISCUSSIONS, AND ACTIVELY 
PARTICIPATE IN COLLABORATIVE ACTIVITIES WITH THE 
GOVERNMENT;
(AA) TN-CITY RESETTLEMENT' REFERS TO A RELOCATION SITE
WITHIN THE JURISDICTION OF THE CITY WHERE THE AFFECTED ISFS 
ARE LIVING;
(BB) 'INFORMAL SETTLEMENTS' REFERS TO:
(1) RESIDENTIAL AREAS WHERE HOUSING UNITS HAVE BEEN 
CONSTRUCTED BY SETTLERS ON LAND WHICH THEY OCCUPY 
ILLEGLLY; OR
"(2) UNPLANNED SETTLEMENTS AND AREAS WHERE HOUSING IS 
NOT IN COMPLIANCE WITH EXISTING PLANNING AND BUILDING 
REGULATIONS;


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(CC) 'INFORMAL SETTLER FAMILIES' COLLECTIVELY REFERRED 
TO AS ISFS, REFERS TO FAMILIES LIVING IN INFORMAL SETTLEMENTS 
AS THE LATTER IS DEFINED IN THIS ACT;
(DD) 'NEAR-CITY RESETTLEMENT' REFERS TO A RELOCATION 
SITE IN A CITY OTHER THAN THE CITY OF THE AFFECTED INFORMAL 
SETTLEMENTS: PROVIDED, HOWEVER, THAT THE RELOCATION SITE IS 
adjacent to the CITY WHERE THE AFFECTED ISFS HAVE THEIR 
SETTLEMENTS;
(EE) 'NON-GOVERNMENT ORGANIZATIONS' REFERS TO DULY 
REGISTERED NON-STOCK, NON-PROFIT ORGANIZATIONS FOCUSING 
ON THE UPLIFTMENT OF DISADVANTAGED SECTORS OF SOCIETY BY 
PROVIDING ADVOCACY, TRAINING, COMMUNITY, ORGANIZING, 
RESEARCH, ACCESS TO RESOURCES, AND OTHER SIMILAR ACTIVITIES, 
AS DEFINED UNDER REPUBLIC ACT NO. 8425, OTHERWISE KNOWN AS 
THE 'SOCIAL REFORM AND POVERTY ALLEVIATION ACT' AND 
ORGANIZED AND OPERATED EXCLUSIVELY FOR SCIENTIFIC, 
RESEARCH, EDUCATIONAL, CHARACTER-BUILDING AND YOUTH AND 
SPORTS DEVELOPMENT, HEALTH, SOCIAL WELFARE, CULTURAL OR 
CHARITABLE PURPOSES, OR A COMBINATION THEREOF, AND NO PART 
OF THE NET INCOME OF WHICH INURES TO THE BENEFIT OF ANY 
PRIVATE INDIVIDUAL PURSUANT TO SECTION 34 (H)(2)(C)(1) OF 
REPUBLIC ACT NO. 8424, AS AMENDED, OTHERWISE KNOWN AS THE 
TAX REFORM ACT OF 1997';


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(FF) 'OFF-CnY RESETTLEMENT REFERS TO A RELOCATION SITE 
DEVELOPED OUTSIDE AND NOT ADJACENT TO THE CITY WHERE THE 
AFFECTED ISFS HAVE THEIR SETTLEMENTS;
(GG) 'PEOPLE'S PLAN' REFERS TO THE PLAN FORMULATED BY 
THE BENEFICIARY-ASSOCIATION, IN COORDINATION WITH THE 
PRESIDENTIAL COMMISSION FOR THE URBAN POOR, WITH OR 
WITHOUT THE SUPPORT OF CSOS, WHICH SHALL CONTAIN A SITE 
DEVELOPMENT PLAN, INCLUDING NON-PHYSICAL DEVELOPMENT 
COMPONENTS, SUCH AS SELF-HELP HOUSING COOPERATIVE, 
LIVELIHOOD, SELF-HELP DEVELOPMENT, AND CAPABILITY BUILDING; 
AND
(HH) 'SOCIAL PREPARATION' REFERS TO THE PROCESS OF 
ESTABLISHING SOCIAL, ORGANIZATIONAL, AND INSTITUTIONAL 
NORMS AND MECHANISMS. SUCH NORMS AND MECHANISMS WILL:
(1) ENABLE THE SETTLERS TO COPE WITH CHANGES; AND
(2) IN PARTNERSHIP WITH CONCERNED INSTITUTIONS AND 
STAKEHOLDERS, ENCOURAGE THE SETTLERS NOT ONLY TO 
WORK AMONG THEMSELVES FOR THE PURPOSE OF DRAWING UP 
AND UNDERTAKING THEIR HOUSING RESETTLEMENT 
PROPOSALS BUT ALSO TO ACTIVELY AND MEANINGFULLY 
PARTICIPATE IN HOUSING RESETTLEMENT PROJECTS 
UNDERTAKEN IN THEIR BEHALF, THUS RESOLVING COLLECTIVE 
ACTION PROBLEMS AMONG COMMUNITY MEMBERS AND


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COORDINATION PROBLEMS WITH GOVERNMENT AND OTHER
ENTITIES.;
(b) Section 23 of the same Act is hereby amended to read as follows:
SECTION 23. Participation of PROGRAM Beneficiaries OR 
AFFECTED ISFS, FORMATION OF BENEFICIARY-ASSOCIATION, AND 
FORMULA fION AND IMPLEMENTATION OF A PEOPLES PLAN. - The local 
government units, in coordination with the Presidential Commission for 
the Urban Poor (PCUP) and concerned government agencies, shall afford 
Program beneficiaries OR AFFECTED ISFs or their duly designated 
representatives an opportunity to be heard and to participate in the 
decision-making process over matters involving the protection and 
promotion of their legitimate collective interests which shall include 
appropriate documentation and feedback mechanisms. They shall also 
be encouraged, AND IF NECESSARY, ASSISTED BY THE PCUP, to 
organize themselves [and undertake self-help cooperative housing and 
other livelihood activities] INTO AN ASSOCIATION FOR ACCREDITATION 
AS BENEFICIARIES OR AWARDEES OF OWNERSHIP RIGHTS UNDER THE 
RESETTLEMENT PROGRAM, COMMUNITY MORTGAGE PROGRAM, LAND 
TENURE ASSISTANCE PROGRAM, AND OTHER SIMILAR PROGRAMS IN 
RELATION TO A SOCIALIZED HOUSING PROJECT ACTUALLY BEING 
IMPLEMENTED BY THE NATIONAL GOVERNMENT OR BY THE LOCAL 
GOVERNMENT UNITS. They shall assist the government in preventing


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the incursions of professionai squatters and members of squatting 
syndicates into their communities.
In instances when the affected beneficiaries have failed to 
organize themselves or form an [alliance] ASSOCIATION within a 
reasonable period prior to the implementation of the program or projects 
affecting them, consultation between the implementing agency and the 
affected beneficiaries shall be conducted with the assistance of the 
[Presidential Commission for the Urban Poor] PCUP and the concerned 
nongovernment organization UNTIL AN ASSOCIATION IS FORMED IN 
PLACE.
THE ASSOCIATION, IN COORDINATION WITH THE PCUP, WITH 
OR WITHOUT THE SUPPORT OF CSOS, SHALL FORMULATE A 'PEOPLE'S 
PLAN' THROUGH A PROCESS OF CONSULTATION WHICH SHALL 
CONTAIN A SITE DEVELOPMENT PLAN, INCLUDING NON-PHYSICAL 
DEVELOPMENT COMPONENTS SUCH AS SELF-HELP HOUSING 
COOPERATIVE, LIVELIHOOD, SELF-HELP DEVELOPMENT, AND 
CAPABILITY-BUILDING TRAININGS.
THE ASSOCIATION, WITH THE ASSISTANCE OF CSOS AND 
GOVERNMENT AGENCIES INCLUDING THE DEPARTMENT OF HUMAN 
SETTLEMENTS AND URBAN DEVELOPMENT (DHSUD), NATIONAL 
ANTIPOVERTY COMMISSION (NAPC), PCUP, NATIONAL HOUSING 
AUTHORITY (NHA), CITY OR MUNICIPAL SOCIAL WELFARE AND 
DEVELOPMENT OFFICE, SOCIAL HOUSING FINANCE CORPORATION, 
LOCAL GOVERNMENT UNITS, AND OTHER RELEVANT AGENCIES OF


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GOVERNMENT, SHALL AGREE ON, DEVELOP, AND IMPLEMENT THE 
PEOPLE'S PLAN.
IN ACCORDANCE WITH THE PROTECTION GUIDELINES 
PROVIDED UNDER SECTION 28 OF THIS ACT, A RELOCATION ACTION 
PLAN SHALL BE AN INDISPENSABLE COMPONENT OF THE PEOPLE'S 
PLAN. THE RELOCATION ACTION PLAN SHALL INCLUDE THE 
FOLLOWING OBJECTIVES:
(A) 
ENSURE SAFE, AFFORDABLE, DECENT, AND HUMANE 
CONDITION OF RELOCATION, INCORPORATING THEREIN 
APPROPRIATE DISASTER RISK REDUCTION MANAGEMENT AND 
CLIMATE CHANGE ADAPTATION STANDARDS;
(B) PROVIDE ADEQUATE SOCIAL PREPARATION; AND
(C) PREVENT FORCED EVICTION;
PROVIDED, THAT PRIMARY CONSIDERATION SHALL BE GIVEN 
TO THE HOUSING FINANCIAL SCHEME SUGGESTED IN THE PEOPLE'S 
PLAN.";
(c) Section 26 of the same Act is hereby amended to read as follows:
SECTION 26. Urban Renewal and Resettlement - [This] URBAN 
RENEWAL AND RESETTLEMENT shall include the rehabilitation and 
development of blighted and slum areas and the resettlement of Program 
beneficiaries in accordance with the provisions of this Act. On-site 
development shall be implemented [whenever possible] AFTER 
ADEQUATE AND GENUINE CONSULTATION WITH THE AFFECTED ISFS,


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AND IN ACCORDANCE WITH THE PEOPLE'S PLAN FORMULATED 
PURSUANT TO SECTION 23 OF THIS ACT, in order to ensure minimum 
movement of occupants of blighted lands and slum areas.
[The] WHERE DEMOLITION OR EVICTION IS ALLOWED IN THE 
AREA OCCUPIED BY THE PROGRAM BENEFICIARIES PURSUANT TO 
SECTION 28 OF THIS ACT, AND ON-SITE RESETTLEMENT CANNOT BE 
UNDERTAKEN BY REASON THEREOF, THE IN-CITY resettlement of the 
beneficiaries of the Program from their existing places of occupancy shall 
be undertaken only [when on-site development is not feasible and] after 
compliance with the procedures laid down in [Section 28 of this Act] THE 
SAME SECTION OF THIS ACT AND IN ACCORDANCE WITH THE
PREFERENCE OF THE AFFECTED ISFS AS CONTAINED IN THE PEOPLE'S 
PLAN.
SHOULD IN-CITY RESETTLEMENT NOT BE FEASIBLE, NEAR-CITY 
RESETTLEMENT SHALL BE CONSIDERED. OFF-CITY RESETTLEMENT 
SHALL ONLY BE RESORTED TO UPON CONSENT OF THE AFFECTED ISFS 
THEMSELVES, AND MUST SATISFY THE REQUIREMENTS OF ADEQUATE 
AND GENUINE CONSULTATION PRIOR TO RELOCATION, SUCH 
CONSENT SHALL NOT BE UNREASONABLY WITHHELD.; and
(d) Section 29 of the same Act is hereby amended to read as follows:
SECTION 29. Resettlement Within two (2) years from the 
effectivity of this Act, the local government units, in coordination with the 
[National Housing Authority] NHA, shall implement the relocation and


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resettlement of persons living in danger areas such as esteros, railroad 
tracks, garbage dumps, riverbanks, shorelines, waterways, and in other 
public places such as sidewalks, roads, parks, and playgrounds. The local 
government unit, in coordination with the National Housing Authority, shall 
provide relocation or resettlement sites with basic services and facilities 
and access to employment and livelihood opportunities sufficient to meet 
the basic needs of the affected families.
IN INSTANCES WHEN THE RELOCATION OR RESETTLEMENT SITE 
IS LOCATEb IN ANOTHER LOCAL GOVERNMENT UNIT, THE LOCAL 
GOVERNMENT UNIT THAT IMPLEMENTS THE RELOCATION OR 
RESETTLEMENT AND THE CONCERNED NATIONAL GOVERNMENT 
AGENCIES SHALL, THROUGH A MEMORANDUM OF AGREEMENT, 
PROVIDE THE OTHER BASIC SERVICES AND FACILITIES ENUMERATED 
UNDER SECTION 21 OF THIS ACT TO THE RECIPIENT LOCAL 
GOVERNMENT UNIT WHERE THE RELOCATION OR RESETTLEMENT SITE 
IS LOCATED.
THE HOUSING AND URBAN DEVELOPMENT COORDINATING 
COUNCIL AND THE DEPARTMENT OF FINANCE - BUREAU OF LOCAL 
GOVERNMENT FINANCE SHALL FORMULATE THE IMPLEMENTING RULES 
AND REGULATIONS ON THE COST-SHARING MECHANISM NECESSARY TO 
FULLY IMPLEMENT THE PROVISION OF SUCH OTHER BASIC SERVICES 
AND FACILITIES.
IN ADDITION TO THE FUNDING SOURCES PROVIDED UNDER 
SECTION 42 OF THIS ACT, THE ALLOCATION FOR THE BASIC SERVICES
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AND FACILITIES MAY BE TAKEN BY THE LOCAL GOVERNMENT UNIT 
IMPLEMENTING THE RELOCATION OR RESETTLEMENT FROM THE 
TWENTY PERCENT (20%) OF THE INTERNAL REVENUE ALLOTMENT 
APPROPRIATED FOR DEVELOPMENT PROJECTS AS MANDATED UNDER 
SECTION 287 OF REPUBLIC ACT NO. 7160, OTHERWISE KNOWN AS THE 
'LOCAL GOVERNMENT CODE OF 1991'.
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SECTION 3. Implementing Rules and Regulations. - The principles, policies
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and provisions of this Act shall be incorporated in the National Shelter Program. The
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Housing and Urban' Development Coordinating Council and the Department of the
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Interior and Local Government, In consultation and coordination with appropriate
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government agencies, CSOs, NGOs, representatives from the private sector, and ISFs,
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shall promulgate a new set of implementing rules and regulations within sixty (60)
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days from the effectivity of this Act. The Implementing rules and regulations shall be
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consistent with the provisions of this Act, particularly with the amendments,
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parameters, and standards introduced to Sections 23, 26, and 29 of the "Urban
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Development and Housing Act of 1992", and shall include the following:
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(a) A People's Plan template to guide ISFs in the development of their own
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Peoples Plan: Provided, That such template shall be a complete pro forma People's
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Plan: Provided, however. That such a template shall be used to benchmark the
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minimum standards in a People's Plan; and
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(b) A guide to effective implementation of the People's Plan, including details
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on the necessity of the issuance of internal memoranda by concerned agencies.
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The implementing rules and regulations issued pursuant to this section shall
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take effect thirty (30) days after its publication in two (2) national newspapers of
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general circulation.
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SECTION 4. Separability Clause. - If any provision of this Act is declared Invalid
or unconstitutional, the other provisions not affected by such declaration shall remain 
in full force and effect.
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SECTION 5. Repealing Clause. - All laws, executive orders, administrative
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orders, and rules and regulations inconsistent with this Act are hereby repealed or
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amended accordingly.
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SECTION 6. Effectivity Clause. - This Act shall take effect fifteen (15) days
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after Its complete publication in the Officiai Gazette or in two (2) newspapers of
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general circulation.
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Approved,
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