FIFTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
. SENATE 
Senate Bill No. 740 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
EXPLANATORY NOTE 
The Philippines has a total population of around 86 million and with a 
population growth rate of 2.36 percent, it is expected to grow to unmanageable 
heights in the near future. We are also currently facing a backlog in housing units 
of around three to five million units. These statistics serve to underscore the need 
for the government to find a solution to the housing problem of the nation at the 
soonest time possible. 
It is with this in mind that this bill is hereby being proposed. This bill seeks 
to lay the foundation for a land reform program with regards to residential units, a 
Residential Land Reform so to speak. This bill proposes that all alienable and 
disposable public lands be distributed regardless of tenure arrangements. It 
provides that the maximum residential area permissible for sale is not to exceed 
700 square meters within cities and capital towns and 1,000 square meters in 
other areas. 
In view hereof, the approval of this measure is highly recommended. 
Senator 


FIFTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
SENATE 
Senate Bill No. '( 4 0 
I . 
INTRODUCED BY $EN. JINGGOY EJERCITO ESTRADA 
AN ACT 
; 
': , ::\ 
PROVIDING FOR A NATIONAL HOMELOTS DISTRIBUTION PROGRAM 
Be it enacted by the Senate and House of Representative of the Philippines in 
Congress assembled: 
SECTION 
1. Short Title. 
-
This Act shall be 
known 
as the 
"Comprehensive National Homelots Distribution Act." 
SEC. 2. Declaration of Policy. - It is hereby declared the policy of the 
State to pursue a continuing program of urban land reform and housing. Toward 
this end, the State shall pursue a comprehensive national home lots distribution 
program which shall fast track titling of home lots to qualified beneficiaries from 
the marginalized sectors of society at affordable cost and provide financing 
schemes to acquire the same. 
Sec. 3. Definition of Terms. - For the purpose of this Act, the following 
are hereby defined: 
(a) "Affordable cost" refers to the most reasonable price of land and 
shelter based on the needs and financial capability of program beneficiaries and 
appropriate financing schemes. 
(b) "Agricultural lands" refer to lands devoted to or suitable for the 
cultivation of the soil, planting crops, growing of fruit trees, raising of livestock, 
poultry, fish or aquaculture propuction, including the harvesting of such farm 
products, and other farm activities and practices performed in conjunction with 
such farming operations done by persons whether natural or juridical and not 
classified by law as mineral land, residential land, commercial land or industrial 
land. 
(c) "Alienable and disposal lands of the public domain refer to those lands 
of the public domain which have been delineated, classified and certified as 
such, declared as not needed for forest, mineral purposes or national parks and 
available for disposition under Commonwealth Act No. 141, otherwise known as 
the "Public Lands Act" as amended. 
(d) "Ancestral domain' refers to all areas generally belonging to 
indigenous cultural communitieslindigenous peoples (ICCs/IPs) as defined in 
Republic Act No. 8371, otherwise known as the Indigenous peoples Rights Act 
(IPRA) of 1998. 


(e) "Beneficiary" refers to' a natural person who has been occupying a 
parcel of land as defined in paragraph (c) of this section for two (2) years or more 
and identified by the local government unit as qualified to own a home lot in 
accordance with the eligibility criteria in Section 6 of this Act and the rules and 
regulations formulated in accordance with this Act. 
(f) "Forestlands" refer to, lands of the public domain, which have been 
classified or declared as such by existing forestry laws and all unclassified lands 
of the public domain. 
(g) "Homelot" refers to a parcel of residential land occupied for two (2) 
years or more by qualified beneficiaries prescribed in this Act situated in public 
lands mostly in the poblacion area or center of municipalities and/or cities. 
(h) "Idle land" refers to non-agricultural lands in urban and urbanizable 
areas on which no improvements, as herein defined, have been made by the 
owner, as certified by the city, municipal or provincial assessor. 
(i) "Improvements" refers :to all types of buildings and residential units, 
walls, fences, structures or construction of all kinds of a fixed character or which 
are adhered to the soil but shall not include trees, plants and growing fruits, and 
other fixtures that are mere superimpositions on the land, and the value of 
improvements shall not be less than fifty percent (50%) of the assessed value of 
the property. 
U) "Lands of the public domain" refer to lands that belong to the State 
which may be any of the following; agricultural, forest or timber, mineral, or 
national park as provided for in the Constitution. 
(k) "Land use" refers to the manner of utilization of land, including its 
allocation, development and management. 
(I) "Mineral lands' refer to lands where minerals including energy 
resources are found. 
(m) "Professional squatters" refer to individuals or groups who occupy 
lands without the express consent of the landowner and who have sufficient 
income for legitimate housing. The term shall not apply to individuals or groups 
who simply rent land and housing from professional squatters or squatting 
syndicates. 
(n) "Public lands" refer to lands which have not been subject to private 
property rights or subject to all or other modes of acquisition or concession under 
the general laws and are devoted to public use. 
(0) "Residential lands" (efer to lands intended for or devoted to the 
construction and establishment of dwellings. 
(p) "Socialized housing" refers to housing programs and projects covering 
houses and lots or homelots only, undertaken by the government or the private 
sector for the underprivileged and homeless citizens which shall include sites and 
services development, 
long-term financing 
liberalized terms on 
interest 
payments, and such other benefits in accordance with Republic Act No. 7279 or 
the Urban Development and Housing Act." 
(q) "Squatting syndicates" refer to groups of persons engaged in the 
business of squatter housing for ,profit or gain. 


(r) "Underprivileged and homeless citizens" refer to individuals or families 
residing in urban and urbanizable areas whose income or combined household 
income falls within the poverty threshold as defined by the National Economic 
and Development Authority (NEDA) and who do not own housing facilities. This 
shall include those who live in makeshift dwelling units and do not enjoy security 
of tenure. 
(s) "Urban areas" refer to all cities regardless of their population density 
and to municipalities with population density of at least five hundred (500) 
persons per square kilometer. 
(t) "Urbanizable areas" refer to sites and lands which, considering present 
characteristics and prevailing conditions, display marked and great potential of 
becoming urban areas within a period of five (5) years. 
(u) "Vested right" refers to such right to, or interest in, property that has 
become fixed and established and no longer open to question by reason of 
actual, exclusive and continuous possession in good faith of a public land within 
a period prescribed by law. 
SEC. 4. Scope. - The Comprehensive National Homelots Distribution 
Program (NHDP) shall cover, regardless of tenurial arrangement, all alienable 
and disposable public lands as defined in this Act, and are not within the scope of 
the following: 
(a) Comprehensive Agrarian Reform Law or Republic Act No. 6657; 
(b) National Integrated Protected Areas as provided in Republic Act No. 
7586; 
(c) Areas declared as forest land or forest reserves and ancestral domain 
lands under Republic Act No. 8371; 
(d) Agricultural lands as defined in Republic Act No. 8435 or the 
"Agriculture and Fisheries Modernization Act," and 
(e) Other areas reserved for specific purposes, as provided by specific 
laws. 
SEC. 5. National Homelots Distribution Program (NHDP). - The 
Department of Environment and Natural Resources (DENR) through the Land 
Management Bureau (LMB), shall formulate, implement and complete a viable 
program to distribute with titles alienable and disposable lands through sale to 
qualified beneficiaries covered by this Act. It shall also undertake cadastral 
survey for all other areas which have not been surveyed the cost of which shall 
not exceed Two Pesos (P2.00) per square meter. The distribution of the 
residential lands shall be implemented immediately and completed within two (2) 
years from the effectivity of this Act. 
The maximum residential area allowed for sale in this Act shall not exceed 
seven hundred (700) square meters within cities and capital towns, and one 
thousand (1,000) square meters in all other places: Provided, however, That the 
limitations fixed herein on the maximum area on landholdings shall not be 
applicable to persons, who, upon the effectivity of this Act, by previous 
occupation of not less than ten (10) years over a residential lot, have established 
their dwelling places thereat where their families have been living, in good faith, 
free from claims and conflicts have paid the real estate taxes thereon, and have 


acquired a vested right. Residential lots exceeding in area than those provided 
for cities and capital towns and. those for other places but not exceeding one 
thousand two hundred (1,200) square meters may be granted to qualified 
persons herein provided. 
The DENR shall coordinate with the Department of Agrarian Reform 
(DAR), the Department of Agriculture (DA) and the National Commission on 
Indigenous Peoples (NCIP) to ensure that lands exempted under Section 4 will 
not be covered by the program. . 
Using the local land use plans as reference, the local government units 
(LGUs) shall assists the DENR in identifying lands qualified for distribution to 
homeowners. The LGUs shall also identify qualified beneficiaries and consider 
the infrastructure and service requirements of areas covered by the program 
when updating tie local development and comprehensive land use plans. 
The Housing and Urban Development Coordinating Council (HUDCC) 
shall formulate the Socialized Housing Program, including the financing 
component, to assist the beneficiaries in acquiring affordable home lots and 
houses. 
SEC. 6. Qualified Benefiqiaries. - The lands within the scope of this Act 
shall be distributed to qualified residents of the barangay where such homelot is 
located. The LGUs shall lead in coordination with the HUDCC, in identifying 
qualified beneficiaries for the NHDP. Priority shall be extended to landless and 
underprivileged residents who are already occupying said homelots for two (2) or 
more years. Qualified beneficiaries must secwe barangay certification stating 
proof that they are the rightful occupant of such home lot for the period 
prescribed in this Act. 
To qualify, the following criteria shall also be fulfilled: 
(a) Must be a Filipino citiz~n; 
(b) Must not own any real property whether in the urban or rural areas; 
(c) Must not be a professional squatter or a member of squatting 
syndicates as defined in the Urban Development Housing Act, and 
(d) Must have made improvements and used the land for productive 
purposes. 
SEC. 7. Land Valuation. - The DENR, in close coordination with LGUs 
through the municipal or city assessors, shall formulate a land valuation scheme 
for the NHDP calibrated according to the municipality's or city's classification, in 
accordance with the following scheme: 
(a) For 4'" and 5'h class municipalities - not more than Twenty-five pesos 
(P25.00) per square meter; 
(b) For 2nd and 3rd class municipalities - not more than Forty-pesos 
(P40.00) per square meter; 
, 
(c) For 1st class municipalities -not more than Fifty-pesos (P50.00) per 
square meter; 


., 
(d) For component cities - not more than Seventy-five pesos (P75.00) per 
square meter; 
(e) For highly urbanized, cities - not more than Five hundred pesos 
(P500.00) per square meter. 
SEC. 8. Financing Program. - The HUDCC, in coordination with the 
Department of Finance (DOF), shall formulate a financing program to assist the 
beneficiaries under this Act to acquire their homelots and build affordable 
houses. It shall also consider existing programs such as the Community 
Mortgage Program, and develop other financing schemes in coordination with the 
Home Guarantee Corporation and other government financial institutions to fast 
track the distribution of home lots and acquisition of affordable housing for 
beneficiaries. 
' 
A beneficiary whose homelot, as provided herein, has been foreclosed 
shall thereafter be permanently disqualified from becoming a beneficiary under 
this Act. 
SEC. 9. Local Government Unit's Share. - The local government units, 
prior to the withholding of the appropriate taxes, shall have a share equivalent to 
ten percent (10%) of the gross sales of the homelots. 
SEC. 10. Transferability of Awarded Lots. -
Lots acquired by 
beneficiaries under this Act cannot be sold, transferred or conveyed except 
through hereditary succession, or sold back to the government or the Land Bank 
of the Philippines for a period of ten (10) years as provided for in Section 29 of 
Commonwealth Act no. 141. 
SEC. 11. Fraudulent Glaims. - The District Land Office under the 
LMBIDENR, in coordination with the LGU, shall review existing claims which 
have been fraudulently acquired by any person or community. Any claim found to 
be fraudulently acquired by and issued to any person or community may be 
cancelled by the LMB after due notice and hearing of all parties concerned. 
SEC. 12. Resolution of Conflicts. - In cases of conflicting interest, where 
there are adverse claims as delineated in the survey plan and which cannot be 
resolved, the LMB shall hear and decide after notice to the proper parties, the 
dispute arising from the delineation of such homelots: Provided, That any 
decision, order, award or ruling of the LMB on any homelot dispute or on any 
matter pertaining 
to 
the 
application, 
implementation, 
enforcement and 
interpretation of this Act may be brought for petition for review to the Court of 
Appeals within fifteen (15) days from receipt of a copy thereof. 
SEC. 13. Penalty Clause. - Any person who violates any provision of this 
Act shall be imposed the penalty of not more than six (6) years of imprisonment 
or a fine of not less than Five thousand pesos (P5,00D.OD) but not more than One 
hundred thousand pesos (Pi00,ODD.OO), or both, at the discretion of the court: 
Provided, That if the offender is a corporation, partnership, association or other 
juridical entity, the penalty hall be imposed on the officer or officers of said 
corporation, partnership, association or juridical entity who caused violation. 
SEC. 14. Implementing Rules and Regulations. - The DENR, through 
the LMB, in conSUltation with the Department of the Interior and Local 
Government, HUDCC, Land Registration Authority, DA, DAR, DOF and NCIP 
and other concerned government agencies, shall promulgate the rules and 


; 
regulations for the effective implementation of this Act within three (3) months 
from its effectivity. 
SEC. 15. Repealing Clause. - All other laws, decrees, executive orders, 
rules and regulations, issuances or parts thereof inconsistent with this Act are 
hereby repealed or amended accordingly. 
SEC. 16. Separability: Clause. -
If any provIsion of this Act is 
subsequently declared unconstitutional, the validity of the remaining provisions 
hereof shall remain in full force and effect. 
SEC. 17. Effectivity Clause. - This Act shall take effect immediately after 
publication in at least two (2) national newspapers of general circulation. 
Approved,