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TWENTIETH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
1 ‘.ii.-r c,
25 JUL21 A10 39
S. No.
SENATE
737
RliCEiv.u .
Introduced by Senator FRANCIS N. PANGILINAN
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
Republic Act No. 7279 or the Urban Development Housing Act of 1992, as 
amended (UDHA) was enacted to provide socialized housing to the underprivileged 
and homeless. Despite its intent, the issue on Informal Settler families (ISF) continues. 
According to the UN-Habitat Philippines Country Report 2023, informal settler families 
(ISFs) are estimated to be 3.7 million, with half a million living in slums and high risk 
areas in Metro Manila.
One of the observations by the Commission on Audit (COA) in its 2022 Annual 
Audit Report for the National Housing Authority (NHA) is the low occupancy rates in 
many resettlement projects. It said in the report that 51,538 Housing Units (HUs) or 
31.04 per cent of the 166,034 total completed HUs have yet to be occupied. The 
primary reason cited for ISF's reluctance to relocate is the distance of these off-city 
sites from ISF's sources of livelihood and essential services.


This bill seeks to amend the UDHA to prioritize on-site, in-city, or near-city 
resettlement for ISFs. By mandating adequate and genuine consultation with affected 
ISFs, requiring a People's Plan, and ensuring provisions of essential services and 
sustainable livelihood to the ISFs, this measure aims to substantially increase the ISF 
move-in rates into safe, affordable, and decent homes.
In view of the foregoing, the passage of this measure is earnestly sought.
FRANCIS ifrBANGILINAN
SenatOT


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TWENTIETH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
o'
25 JUL 21 A10 39
SENATE
S. No. 737
RFCj LJ
Introduced by Senator FRANCIS N. PANGIUNAN
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 the House of Representatives of the Philippines in 
Congress assembled:
SECTION 1. Short Title. - This Act shall be known as the "On-site, In-City or 
Near-City Resettlement Act."
Sec. 2. Amendatory Provisions. - For purposes of this Act, the following 
provisions of Republic Act No. 7279, otherwise known as the "Urban Development and 
Housing Act of 1992", are hereby amended as follows:
(a) Section 3 of Republic Act No. 7279
"SEC. 3. Definition of Terms. - For this purposes of this Act:
"x X X
"(w) X X x; [and]
"(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^;


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T'(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, AN INDEPENDENT BODY HAVING 
CONSTITUTIONAL AUTHORITY, SUCH AS A COURT OF LAW, SHOULD 
MEDIATE, ARBITRATE, OR ADJUDICATE, AS MAY BE APPROPRIATE;
"(Z) 'CIVIL SOCIETY ORGANIZATIONS OR CSOS' REFERS TO 
NON-GOVERNMENTAL ORGANIZATIONS (NGOS), 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;


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”(AA) 'IN-CITY RESETTLEMENTr 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 
ILLEGALLY; OR
"(2) UNPLANNED SETTLEMENTS AND AREAS WHERE HOUSING 
IS NOT IN COMPLIANCE WITH EXISTING PLANNING AND BUILDING 
REGULATIONS;
"(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 PY 
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, CHARACTERBUILDING 
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,


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AS AMENDED, OTHERWISE KNOWN AS THE 'TAX REFORM ACT OF 
1997';
"(FF) 'OFF-CITY RESETTLEMENr 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 COORDINATION PROBLEMS WITH GOVERNMENT 
AND OTHER ENTITIES.";
(b) Section 23 of the same Act is hereby amended to read as follows:
"SEC. 23. Participation of PROGRAM Beneficiaries OR AFFECTED 
ISFS, FORMATION OF BENEFICIARY-ASSOCIATION, AND 
FORMULATION AND IMPLEMENTATION OF A PEOPLE'S PLAN. - The
local government units, in coordination with the Presidential Commission for 
the Urban Poor and concerned government agencies, shall afford Program


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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 to organize themselves 
[and undertake self help cooperative housing and other livelihood DctivitiGs]
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 the incursions of professional 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 and the concerned nongovernment organization UNTIL AN 
ASSOCIATION IS FORMED IN PLACE.
"THE ASSOCIATION, IN COORDINATION WITH THE 
PRESIDENTIAL COMMISSION FOR THE URBAN POOR, 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 NATIONAL


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ANTIPOVERTY COMMISSION (NAPC), PRESIDENTIAL 
COMMISSION FOR THE URBAN POOR, NATIONAL HOUSING 
AUTHORITY, CITY OR MUNICIPAL SOCIAL WELFARE AND 
DEVELOPMENT OFFICE, SOCIAL HOUSING FINANCE 
CORPORATION, LOCAL GOVERNMENT UNITS, AND OTHER 
RELEVANT AGENCIES OF 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:
"SEC. 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, 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.


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"[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 foasiblo 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 WHEN DIRECTLY 
REQUESTED BY THE AFFECTED ISFS THEMSELVES, AND MUST 
SATISFY THE REQUIREMENTS OF ADEQUATE AND GENUINE 
CONSULTATION PRIOR TO RELOCATION."; and 
(d) Section 29 of the same Act is hereby amended to read as follows:
"SEC. 29. Resettlement. Within two (2) years from the effectivity of this 
Act, the local government units, in coordination with the National Housing 
Authority, shall implement the relocation and 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 LOCATED 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


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FACILITIES ENUMERATED UNDER SECTION 21 OF THIS ACT TO THE
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RECIPIENT LOCAL GOVERNMENT UNIT WHERE THE RELOCATION
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OR RESETTLEMENT SITE IS LOCATED.
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"THE HOUSING AND URBAN DEVELOPMENT COORDINATING
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COUNCIL AND THE DEPARTMENT OF FINANCE - BUREAU OF LOCAL
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GOVERNMENT FINANCE SHALL FORMULATE THE IMPLEMENTING
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RULES AND REGULATIONS ON THE COST-SHARING MECHANISM
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NECESSARY TO FULLY IMPLEMENT THE PROVISION OF SUCH
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OTHER BASIC SERVICES AND FACILITIES.
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"IN ADDITION TO THE FUNDING SOURCES PROVIDED UNDER
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SECTION 42 OF THIS ACT, THE ALLOCATION FOR THE BASIC
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SERVICES AND FACILITIES MAY BE TAKEN BY THE LOCAL
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GOVERNMENT UNIT IMPLEMENTING THE RELOCATION OR
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RESETTLEMENT FROM THE TWENTY PERCENT (20%) OF THE
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INTERNAL REVENUE ALLOTMENT APPROPRIATED FOR
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DEVELOPMENT PROJECTS AS MANDATED UNDER SECTION 287 OF
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REPUBLIC ACT NO. 7160, OTHERWISE KNOWN AS THE 'LOCAL
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GOVERNMENT CODE OF 1991,.w
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Sec. 3. Implementing Rules and Regulations. - The principles, policies and
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provisions of this Act shall be incorporated in the National Shelter Program.
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The Housing and Urban Development Coordinating Council and the Department
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of the Interior and Local Government, in consultation and coordination with
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appropriate government agencies, CSOs, NGOs, representatives from the private
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sector, and ISFs, shall promulgate a new set of implementing rules and regulations
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within sixty (60) days from the effectivity of this Act. The implementing rules and
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regulations shall be consistent with the provisions of this Act, particularly with the
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amendments, parameters, and standards introduced to Sections 23, 26, and 29 of the
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"Urban 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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People's 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
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details 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 take
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effect thirty (30) days after its publication in two (2) national newspapers of general
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circulation.
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Sec. 4. Separability Clause. - If any provision of this Act is declared invalid or
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unconstitutional, the other provisions not affected by such declaration shall remain in
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full force and effect.
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Sec. 5. Repealing Clause. - All laws, executive orders, administrative orders, and
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rules and regulations inconsistent with this Act are hereby repealed or amended
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accordingly.
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Sec. 6. EfFectivity Clause. - This Act shall take effect fifteen (15) days after its
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complete publication in the Official Gazette or in two (2) newspapers of general
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circulation.
Approved,