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RECEIVED
27 JUL 2018

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RECISTRATION UNIT
Bit. ANJ INDEX SERVICE

Republic of the Philippines OR

HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

“UME:
BY;

Seventeenth Congress
First Regular Session

HOUSE BILL NO. 1848 _

Introduced by Honorable Alexandria P. Gonzales

EXPLANATORY NOTE

Article XIII, Sec. 9 of the 1987 Constitution on Social Justice and Human Rights directs
the State to undertake a continuing program of urban land reform and housing that will provide
inexpensive but decent housing and basic services to homeless Filipinos in urban and
resettlement areas.

In fulfilment of this constitutional mandate, Congress enacted RA 7279, otherwise
known as the Urban Development and Housing Act of 1992. This law provided for the
rehabilitation and development of blighted and slum areas and resettlement only if on-site
development is not feasible. Section 26 of RA 7279 emphasized that “on-site development shall
be implemented whenever possible in order to ensure minimum movement of occupant of
blighted lands and slum areas.”

Subsequently, RA 9397 was enacted amending the Urban Development and Housing
Act of 1992. The approval of RA 9397 addressed the need of the organized urban poor in lands
owned by the national government, local government units, government agencies and
instrumentalities for security in land tenure and ownership by allowing purchase thereof via
direct negotiated sale to occupants without need of public bidding subject to several conditions.

Since the early 2000s, occupants-informal settlers in Welfareville, Mandaluyong, have
organized themselves in their bid for a chance to purchase the lots they have resided in for so
many years. The Welfareville property in Mandaluyong City was set aside by the government in
1925 for the establishment of welfare institutions. It consists of approximately 80 hectares of
land portions of which are occupied by informal settlers. When RA 9397 became effective in
2007, organized Welfareville residents petitioned the Mandaluyong local government and the
office of the President for a chance to acquire by purchase through instalment the lots on which
their houses stand on. A stumbling block however to this aspiration is Republic Act 5260
entitled, “An Act Authorizing a Committee Composed of the Administrator of the Social
Welfare Administration, the Auditor General and the Secretary of the Department of General
Services to sell the Welfareville Property located in the Municipality of Mandaluyong, Province
of Rizal, and for other Purposes.” RA 5260 requires the sale of the Welfareville Property be
conducted through public bidding.


This bill seeks to amend RA 5260 by allowing the sale of the Welfareille property,
except the areas occupied by the National Center for Mental Health and the Correctional
Institution for Women, by direct negotiated sale to the organized and residents therein and
without public bidding. The bill if enacted into law will not contradict the intent and purpose
of RA 5260 which is to utilize the proceeds of the sale of Welfareville for the establishment of
children’s home institutions and provision of community services for children. The bill is
consistent with RA 9397 which allows direct negotiated sale without public bidding to actual
occupants lands owned by the government. Moreover, the bill ensures the minimum movement
of informal settlers and least disturbance of their rights pursuant to the mandate of 1987
constitution and the Urban Development and Housing Act of 1992.

In the light of the foregoing, immediate approval of this bill is earnestly sought.

Vora

XANPRIA P. GONZALES SX


Republic of the Philippines
HOUSE OF REPRESENTATIVES,
Quezon City, Metro Manila

Seventeenth Congress
First Regular Session

1848
HOUSE BILL NO.

Introduced by Honorable Alexandria P. Gonzales

AN ACT
DECLARING CERTAIN PORTIONS OF THE WELFAREVILLE
PROPERTY LOCATED IN THE CITY OF MANDALUYONG OPEN FOR
DISPOSITION TO BONA FIDE RESIDENTS WITHOUT PUBLIC
BIDDING AND FOR OTHER PURPOSES

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

SECTION 1. Declaration of Policy. - It is hereby declared the policy of the State to
secure the land tenure of the urban poor. Pursuant to sections 9 and 10 of Article XIII of the
1987 Constitution and Urban Development and Housing Act of 1992, certain portions of the
Welfareville property owned by the national government in the City of Mandaluyong shall be
utilized for socialized housing.

SECTION 2. Direct Negotiated Sale Without Public Bidding of the Welfareville
Property. - The Welfareville property, except the areas occupied by the National Center for
Mental Health (NCMH) and the Correctional Institution for Women (CIW), is hereby
declared disposable and alienable and shall be sold through direct negotiated sale to bona fide
residents therein without public bidding: Provided, That the determination of bona fide

residents shall be based on the census verification survey conducted by the Welfareville


Commission of the Local Government of the City of Mandaluyong in 2003: Provided, further,
That persons and/or families who are included in the 2003 survey but are residing or who own
residential structures with the NCMH and CIW areas shall be allowed to buy lots within the
disposable portion of the Welfareville property: Provided, finally, That a non-negotiable
condition of the sale to bona fide residents therein shall be annotated on their titles to the effect
that, except for testate or intestate succession, the residents cannot assign, sell, convey ot
dispose of their rights to any party within a period of twenty (20) years from the date of
purchase.

SECTION 3. Trustee Committee. - There is hereby created a Trustee Committee to
be composed of the Secretary of the Department of Social Welfare and Development as the
Chairperson, the Chairperson of the Commission on Audit, the Chairperson of the Presidential
‘Commission for the Urban Poor, the Representative of the Lone District of the City of
Mandaluyong, the Mayor of the City of Mandaluyong, the Chairperson of the Housing and
Urban Development Coordinating Council, the Secretary of the Department of Environment
and Natural Resources and two (2) representatives from the duly recognized people's
organization, as members thereof. The representatives of the duly recognized people’s
organizations shall be appointed by the Chairperson of the Trustee Committee upon the
recommendation of the organization they represent.

SECTION 4. Powers and Functions of the Trustee Committee. - The Trustee
Committee shall have the following powers and functions:

1. To supervise the sale of the Welfareville properties, except the areas
occupied by the NCMH AND CIW;

2. Todraft a schedule to arrange for the procedure of the sale;


3. To determine the bona fide residents based on the census verification survey

conducted by the Welfareville Commission of the Local Government of the
City of Mandaluyong in 2003; and
4. To administer the proceeds of the sale and its utilization.

SECTION 5. Implementing Rules and Regulations. - The Trustee Committee shall
formulate and promulgate the rules and regulations to effectively implement the provisions of
this Act sixty (60) days from the effectivity of this Act

SECTION 6. Tax Exemption. - All lands that will be disposed and/or sold pursuant
to this Act shall be exempted from the payment of Capital Gains Tax.

SECTION 7. Appropriations. - The amount necessary for the operations of the
Trustee Committee shall be included in the budget of the Department of Social Welfare and
Development in the annual General Appropriations Act.

SECTION 8. Repealing Clause. - Section 1 of Republic Act No. 5260 and all laws,
decrees, orders, rules and regulations, issuances or parts. thereof which are inconsistent with any
of the provisions of this Act are hereby repealed, amended or modified accordingly.

SECTION 9. Separability Clause. - If any provision of this Act is declared invalid or
unconstitutional, the remaining provisions not affected thereby shall continue to be in full force
and effect.

SECTION 10. Effectivity. - This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in at least two (2) newspapers of general circulation.

Approved,