HOUSE OF REPRESENTATIVES,
Quezon City, Metro Manila

SEVENTEENTH CONGRESS
First Regular Session

House Bill No,_ 3936

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Introduced by REP. KAKA BAG-AO

EXPLANATORY NOTE

Article XIII on Social Justice and Human Rights of the 1987 Philippine Constitution provides

that:

“Section 9. The State shall, by law and for the common good,
undertake, in cooperation with the private sector, a continuing program of
urban land reform and housing which will make available at affordable
cost decent housing and basic services to underprivileged and homeless
citizens in urban centers and resettlement areas. It shall promote the
adequate employments of such programs that the State shall respect the
rights of small property owners.”

“Section 10. Urban or rural poor dwellers shall not be evicted nor
their dwellings demolished, except in accordance with law and in a just
and humane manner.

No resettlement of urban or rural dwellers shall be undertaken without
adequate consultation with them and the communities where they are to
be located.”

In 1992, the Urban Development and Housing Act was enacted, a law which sought to execute
the provisions on urban land reform and housing of the Constitution. The law laid down a
national urban development and housing framework, with one of its primary objectives being
the upliftment of the conditions of underprivileged citizens in urban and resettlement areas by
providing decent and affordable housing, without compromising access to basic services and
employment opportunities.

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More than two decades have passed after the passage of the Urban and Development Housing
Act, and the problem of provision of affordable, adequate and accessible housing still needs to
be addressed. One of the crucial issues identified with the relocation programs of the
government is sustainability. Beneficiaries of relocation programs have a tendency to return to
their original location, on the grounds that their relocation site is far off from their livelihood,
and/or lack of access to basic utilities such as water or power.

This bill aims to adopt an “on-site, in-city, near-city” policy in the relocation of Informal Settler
Families (ISFs). It mandates that resettlement sites should primarily be on-site, but should the
same not be possible, in-city relocation should be sought, and as a last resort, near-city.
Resettlements shall only be undertaken in accordance with a “People’s Plan”, a proposal coming
from the community to be relocated. The adoption of the “on-site, in-city” policy assures the
ISFs of continued access to their employment, while the implementation of a “People's Plan”
provides them with an avenue to participate as a community in the planning and
implementation of their own relocation, strengthening their commitment to the program as
active partners of the government, ultimately ensuring the sustainability of resettlement
projects. This bill, initially filed by Akbayan Representatives Barry Gutierrez and Walden Bello,
was already approved on third and final reading by the House of Representatives last 16”
Congress.

In view of the foregoing, the immediate passage of this bill is earnestly sought.

=
MN
REP, BAGA\

Lone\District, Dinagat Islands


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

SEVENTEENTH CONGRESS
First Regular Session

House Bill No,_3936

Introduced by REP. KAKA BAG-AO

AN ACT
ESTABLISHING AN ON-SITE, IN-CITY OR NEAR-CITY RESETTLEMENT PROGRAM
FOR INFORMAL SETTLER FAMILIES, AND IN CONNECTION THEREWITH,
MANDATING THAT LOCAL GOVERNMENT UNITS PROVIDE LIVELIHOOD ASSISTANCE
AND OTHER BASIC SERVICES, 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 is hereby amended to read as follows:
“SEC. 3. Definition of Terms. ~ For purposes of this Act:

XXX
(w) xxx; [and ]

(x) “Zonal Improvement Program or ZIP” refers to the program of the National
Housing Authority of upgrading and improving blighted squatters areas within the
cities and municipalities of Metro Manila pursuant to existing statutes and pertinent
executive issuancesf . ];


(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 PROJECT;

(3) PROVISION BY THE GOVERNMENT OR NONGOVERNMENT
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 OR PRESENT ALTERNATIVE PROPOSALS
AND TO 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” REFER TO
NONGOVERNMENTAL 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;

(AA) “IN-CITY RESETTLEMENT” REFERS TO A RELOCATION SITE
WITHIN THE JURISDICTION OF A 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
ILLEGALY; 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 SETTLEMENT” REFERS TO A RELOCATION SITE IN
THE 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) “NONGOVERNMENT ORGANIZATION OR NGO” REFERS TO A DULY
REGISTERED NONSTOCK, NONPROFIT ORGANIZATION FOCUSING ON THE
UPLIFTMENT OF THE BASIC OR 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 AND 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’;

(FF) “OFF-CITY RESETTLEMENT” REFERS TO A RELOCATION SITE
DEVELOPED OUTSIDE AND NOT ADJACENT TO THE CITY WHERE THE
AFFECTD ISFs HAVE THEIR SETTLEMENTS;

(GG) “PEOPLE'S PLAN” REFERS TO THE PLAN FORMULATED BY THE
BENEFICIARY-ASSOCIATION, IN COORDINATION WITH THE
PRESIDENTIAL COMMISSION ON THE URBAN POOR WITH OR WITHOUT
THE SUPPORT OF CSOs, WHICH SHALL CONTAIN THE SITE DEVELOPMENT
PLAN, INCLUDING NONPHYSICAL 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, ORGANIZATION, 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 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 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 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 NONPHYSICAL 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 ANTI-POVERTY
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 INDISPENSIBLE 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.


@)

[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 WHEN DIRECTLY REQUESTED BY THE AFFECTED
ISFs THEMSELVES, AND MUST SATISFY THE REQUIREMENTS OF
ADEQUATE AND GENUINE CONSULTATION PRIOR TO RELOCATION.”

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
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 FACILITIES ENUMERATED UNDER SECTION 21 OF
THIS ACT TO THE RECEPIENT 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 AND
FACILITIES MAY BE TAKEN BY THE LOCAL GOVERNMENT UNIT
IMPLEMENTING THE RELOCATION OR RESETTLEMENT FROM THE TWENTY
(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’.”

SEC. 3. Implementing Rules and Regulations. ~ The principles, policies and provisions of
this Act shall be incorporated in the National Shelter Program.

‘The Housing and Urban Development Coordinating Council and the Department of Interior
and Local Government, in consultation and coordination with appropriate government agencies,
CSOs, NGOs, representatives from the private sector, and ISFs, shall promulgate a new set of
implementing rules and regulations within sixty (60) days from the effectivity of this Act. The
implementing rules and regulations shall be consistent with the provisions of this Act,
particularly with the amendments, parameters, and standards introduced to Sections 23, 26,
and 29 of the “Urban Development and Housing Act of 1992”, and shall include the following:

(a) A People’s Plan template to guide ISFs in the development of their own People’s Plan:
Provided, That such template shall be a complete pro forma People’s Plan: Provided,
however, That such a template shall be used to benchmark minimum standards in a
People's Plan; and

(b) A guide to effective implementation of the People's Plan, including details on the
necessity of the issuance of internal memoranda by concerned agencies.

The implementing rules and regulations issued pursuant to this Section shall take effect
thirty (30) days after its publication in two (2) national newspapers of general circulation.

SEC. 4, Repealing Clause. ~ All laws, decrees, executive orders, proclamations, rules and
regulations, and other issuances, or parts thereof which are inconsistent with the provisions of
this Act are hereby repealed, amended or modified accordingly.

SEC. 5. Separability Clause. ~ If, for any reason, any part, section or provision of this Act is
held invalid or unconstitutional, the remaining provisions not affected thereby shall continue to
be in full force and effect.

SECTION 6. Effectivity. - This Act shall take effect fifteen (15) days after its publication in
the Official Gazette or in a newspaper of general circulation.

Approved,