SIXTEENTH CONGRESS OF THE EC)
act OSE

)
REPUBLIC OF THE PHILIPPINES )
FIRST REGULAR SESSION )

HOUSE OF REPRESENTATIVES

HOUSE BILLNO. 2791

Introduced by HON. CRESENTE C. PAEZ, HON. ANTHONY M. BRAVO, HON.
ALFREDO B, BENITEZ, HON. KAKA BAG-AO, HON. MARIA LEONOR G.
ROBREDO, HON. WALDEN BELLO, HON. IBARRA GUTIEREZ Ill, HON. BENJAMIN
D. ASILO, HON. JOSE CHRISTOPHER Y. BELMONTE, HON. GARY C. ALEJANO,
HON. ALFREDO VARGAS Ill, HON. ENRICO R. ECHIVERRI, HON. EDGAR R.
ERICE, HON. ROMAN T. ROMULO

EXPLANATORY NOTE

No less than the Constitution protect the marginalized, powerless, and oppressed
citizens of this country against any violent eviction and/or demolition and mandates
provision for a decent housing at affordable cost, with basic services and livelihood
opportunities. Section 10, Article XIll of the Constitution of the Republic of the
Philippines states that “urban or rural poor dwellers shall not be evicted nor their
dwelling demolished, except in accordance with law and in a just and humane manner.”

To carry out this constitutional mandate, Republic Act No. 7279 or the Urban
Development and Housing Act was enacted which likewise covers urban land reform
program. This seemingly progressive piece of legislation however failed to meet the
expectations of the urban poor taking into considerations the recent various incidents of
violent evictions and demolitions involving urban poor communities. Thus, the need to
amend and consequently improve the law.

This bill aims, therefore, to further secure the urban poor from eviction and demolition of
their homes and relocating them in distant places lacking basic services and livelihood
opportunities thus clarifying the definition of “resettlement areas’ that it must be within
and/or near city areas. The bill further provides that consultation must be effectively
done with the active participation of the affected communities with the right to offer and
make counter-offer for relocation sites when reasonable and allowable. This expands
likewise the mandate of the law by requiring developers to develop an area for
socialized housing equivalent to at least twenty percent (20%) of the total area or
project cost, at the option of the developer, not only on proposed subdivision projects
but also on proposed condominiums, memorial parks, golf courses and all other land
development projects. The bill ensures strengthening the requirements in cases of
eviction of informal settlers and demolition of their residential structures and broadening
of the penalties on the violation of the Urban Development and Housing Act.


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

HON. ao HON. t M. BRAVO
J),

AY,

HON. ALFREDO B. BENITEZ

Tit

WY)
HON. RIA LEONOR G. ROBREDO HON. wato EN BELLO
HON. IBAI aN MW Z GARY Z ALEJANO

HON. Oe CHRISTOPHER Y. BELMONTE HON. BENJAM - D. ASILO
FREDO VARGAS Ill HON. ENRICO R. ECHIVERRI

42.0,

EDGAR R‘ERICE HON. ROMAN T,. ROMULO
i (ame bm Kp AZAR)



SIXTEENTH CONGRESS OF THE
REPUBLIC OF THE PHILIPPINES
FIRST REGULAR SESSION

HOUSE OF REPRESENTATIVES

HOUSE BILLNO. 2794

Introduced by HON. CRESENTE C. PAEZ, HON. ANTHONY M. BRAVO, HON.
ALFREDO B, BENITEZ, HON. KAKA BAG-AO, HON. MARIA LEONOR G.
ROBREDO, HON. WALDEN BELLO, HON. IBARRA GUTIEREZ Ill, HON. BENJAMIN
D. ASILO, HON. JOSE CHRISTOPHER Y. BELMONTE, HON. GARY C. ALEJANO,
HON. ALFREDO VARGAS Ill, HON. ENRICO R. ECHIVERRI, HON. EDGAR R.
ERICE, HON. ROMAN T. ROMULO

AN ACT

STRENGTHENING AND SECURING THE RIGHTS OF THE URBAN POOR AGAINST
EVICTIONS AND/OR DEMOLITIONS AND TO PROVIDE ADEQUATE HOUSING
AMENDING FOR THIS PURPOSE REPUBLIC ACT NO. 7279 OTHERWISE KNOWN
AS “AN ACT TO PROVIDE FOR A COMPREHENSIVE AND CONTINUING URBAN
DEVELOPMENT AND HOUSING PROGRAM, ESTABLISH THE MECHANISM FOR
ITS IMPLEMENTATION, AND FOR OTHER PURPOSES” OR 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. Section 3 of Republic Act 7279 is hereby amended as follows:
Sec. 3. Definition of Terms. — For purposes of this Act
XXX

(d) Blanket Loan/Wholesale Loan — shall refer to a housing loan contracted/obtained by
a housing cooperative intended to identify member-beneficiaries for land acquisition,
land improvement, house construction, home improvement, or renovation and other
similar purposes.

e) Danger Zone/High Areas — Danger ZonelHigh Risk Areas are areas with high level
of threat to the lives and well-being of people that cannot be addressed through
scientific, physical and engineering methods, and thus not suitable for resettlement and
permanent structures. Areas can only be declared as Danger Zone/High Risk Area for
conducting proper technical study and public consultations with affected families


promotion of this legitimate collective interests, which shall include «appropriate
documentation and feedback mechanisms. This includes the right of the program
beneficiaries to decide on the location of the relocation sites, to make an offer or
counter-offer, and to have the same be heeded when. reasonable and allowable.

(9) “Housing Cooperative” is one organized to assist or provide access to housing for
the benefit of its regular members who actively participate in the savings program for
housing, It is co-owned and controlled by its members’ (Cooperative Code of 2008 [RA
9520))

h) “Resettlement areas” refers to areas identified by the appropriate national agency or
by the LGU with respect to areas within its jurisdiction, which shall be used for the
relocation of the underprivileged and homeless citizens. The resettlement areas must
be within the same city or municipality unless it is substantially proven that such
is not feasible or practicable that resettlement may be established outside
thereof.

in

ECTION 2. Section 5 of Republic Act 7279 is hereby amended as follows:

;

Section 5. Exemptions. — The following lands shall be exempt from the coverage of this
Act:

a) Those included in the coverage of Republic Act No. 6657, otherwise known as the
Comprehensive Agrarian Reform Law;

b) Those actually used for national defense and security of the State,

c) Those used, reserved or otherwise set aside for government offices, facilities and
other installations, whether owned by the National Government, its agencies and
instrumentalities, including government-owned or controlled corporations, or by the local
government units: Provided, however, That the lands herein mentioned, or portions
thereof, which have not been used for the purpose for which they have been reserved
or set aside for the past ten (10) years from the effectivity of this Act, shall be covered
by this Act;

d) Those used or set aside for parks, reserves for flora and fauna, forests and
watersheds, and other areas necessary to maintain ecological balance or environmental
protection, as determined and certified to by the proper government agency; and

e) Those actually and primarily used for religious, charitable, or educational purposes,
cultural and historical sites, hospitals and health centers, and cemeteries or memorial
parks, The exemptions herein provided shall not apply when the use or purpose of the
abovementioned lands has ceased to exist

PROVIDED, THAT ANY EVICTION _OR__DEMOLITION __ON THE
REMENTIONED LANDS SHALL STILL COMPLY STRICTLY WITH SECTION 28
HEREOF BEFORE ANY DEMOLITION OR EVICTION CAN BE EFFECTED.



SECTION 3. Section 8 of Republic Act 7279 is hereby amended as follows:

Section 8. Identification of Sites for Socialized Housing. - After the inventory the
local government units, in coordination with the National Housing Authority, the Housing
and Land Use Regulatory Board, the National Mapping Resource Information Authority,
and the Land Management Bureau, shall identify lands for socialized housing and
resettlement areas for the immediate and future needs of the underprivileged and
homeless in the urban areas, taking into consideration and degree ‘of availability of
basic services and facilities, their accessibility and proximity of jobs sites and other
economic opportunities, and the actual number of registered beneficiaries

Government-owned lands under paragraph (b) of the preceding section which have not
been used for the purpose for which they have been reserved or set aside for the past
ten (10) years from the effectivity of this Act and certified as suitable for socialized
housing, shall AUTOMATICALLY be transferred to the National Housing Authority
WITHOUT NEED OF APPROVAL from the President of the Philippines or from the
Local Government Unit for proper disposition in accordance with this Act

SECTION 4, Section 10 of Republic Act 7279 is hereby amended as follows:

Section 10. Modes of Land Acquisition. - The modes of acquiring lands for purposes
of this Act shall include, among others, community mortgage, housing cooperative
project as defined under Republic Act No. 9520, otherwise known as the Cooperative
Code of 2008, land swapping, land assembly or consolidation, land banking, donation to
the Government, joint-venture agreement, negotiated purchase, and expropriation.
[Provided, however, That expropriation shall be resorted to only when other modes of
acquisition have been exhausted.) Provided, that where expropriation is resorted to,
parcels of land owned by small property owners shall be exempted for purposes of this
Act. Provided, further, that abandoned property, as herein defined, shall be reverted and
‘escheated to the State in a proceeding analogous to the procedure laid down in Rule 91
of the Rules of Court.

PROVIDED FINALLY, THAT THE MODES OF LAND ACQUISITION MAY BE
RESORTED TO IN ANY ORDER. EXPROPRIATION MAY BE AVAILED OF
WITHOUT EXHAUSTING OTHER MODES. LAND ACQUISITION FOR SOCIALI:

ING THROUGH EXPROPRIATION ONLY REQUIRES A DEPOSIT OF 1
(0%) OF THE MARKET VALUE OF THE LAND, AS INDICATED IN THE

TAX DECLARATION.

For the purpose of socialized housing, government-owned and foreclosed
properties shall be acquired by the local government units, or by the National Housing
‘Authority primarily through negotiated purchase: Provided, that qualified beneficiaries
who are actual occupants of the land shall be given the right of first refusal

SECTION 5. Section 16 of Republic Act 7279 is hereby amended as follows:


Section 16. Eligibility Criteria for Socialized Housing Program Beneficiaries. - To
qualify for the socialized housing program, a beneficiary:

(a) Must be a Filipino citizen;

(b) Must be an underprivileged and homeless citizen, as defined in Section 3 of this
Act;

(c) Must not own any real property whether in the urban or rural areas; and
(d) Must not be a professional squatter or a member of squatting syndicates
‘Aside from the abovementioned, no other requisites are_needed_to_confer

beneficiary status on an individual. Provided further, to forestall an discrimination, there
shall be no cut-off date for one to be considered a beneficiary under this law.

CTION 6. Section 18 of Republic Act 7279 is hereby amended as follows:
“Section 18. Balanced Housing Development. The Program shall include a system to
be specified in the Framework plan whereby developers of proposed subdivision
projects, condominiums, memorial_parks, golf_courses_and_all_other_land
development projects shall be required to develop an area for socialized housing
equivalent to at least twenty percent (20%) of the total land_area sought to be
developed or total land development cost at the option of the developer and in
accordance with the standards set by the Housing and Use and Regulatory Board and
other existing laws.xxx.

However, such option must _be clearl defined _and made _manifest_in_its
application for the project. Furthermore, the said 20% compliance must _be within the
same city or municipality. Only when the developer has sub: tantially proven that such
compliance is not feasible in the same city or municipality can such compliance be
made outside thereof,

However, said compliance must be made in the adjacent city or municipality
where the project is to be undertaken. In no case shall compliance be outside, unless
approved by the local Sangqunian and only after a favorable recommendation from the
Local Housing Board or similar office.

Although not limited to the following list, the balanced housing development as
herein required may be complied with by the developers concerned in the following
manner:

a) Development of new settlement;

b) Slum upgrading or renewal of areas for priority development either through zonal
improvement programs or slum improvement and resettlement programs;


¢) Joint-venture projects with either the local government units or any of the housing
agencies; or
d) Participation in the community mortgage program

SECTION 7. Section 23 of Republic Act 7279 is hereby amended to read as follows:

Section 23. Participation of beneficiaries, “The local government units, in
coordination with the PCUP and concerned government agencies, shall afford program
beneficiaries 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 the right of _
program beneficiaries to decide on the location of the relocation sites, to make an offer
or counter-offer, and to have the same be heeded when reasonable and allowable,
appropriate documentation and feedback mechanisms. They shall also be encouraged
to organize themselves and undertake self-help cooperative-housing and other
livelihood activities. They shall assist the government in preventing the incursions of
professional squatting syndicates into their communities.

In the instances when the affected beneficiaries have failed to organize
themselves or form an alliance 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 PCUP and
the concerned government organization.”

SECTION 8. Section 28 of Republic Act 7279 is hereby amended as follows:

Section 28. Eviction and Demolition. AS_A GENERAL RULE, EVICTION OF
UNDERPRIVILEGED AND HOMELESS CITIZENS OR DEMOLITION OF THEIR
RESIDENTIAL STRUCTURES _ SHALL. BE PROHIBITED. EVICTIONS _OF
UNDERPRIVILEGED AND HOMELESS CITIZENS AND/OR DEMOLITIONS OF
THEIR RESIDENTIAL STRUCTURES MUST ALWAYS BE COVERED WITH A
COURT ORDER INCLUDING BUT NOT LIMITED TO EVICTIONS AND/OR
DEMOLITIONS UNDER THE FOLLOWING SITUATIONS:

a) When persons or entities occupy danger areas such as esteros, railroad tracks,
garbage dumps, riverbanks, shorelines, waterways, and other public places such
as sidewalks, roads, parks, and playgrounds; and

b) When government infrastructure projects with available funding are about to be
implemented

ANY EVICTION OR DEMOLITION INVOLVING _UNDERPRIVILEGED. AND
HOMELESS CITIZENS, THE AGENCY WHICH SEEKS TO IMPLEMENT THE
DEMOLITION MUST SUFFICIENTLY PROVE THE FOLLOWING FACTS:

A) IN CASES OF EVICTIONS OR DEMOLITIONS INVOLVING DANGER AREAS,



THE DANGEROUS CIRCUMSTANCES AFFECTING THE RESIDENTS TO BE
EVICTED AND HOUSES TO BE DEMOLISHED;

(B) IN CASES OF EVICTIONS OR DEMOLITIONS INVOLVING GOVERNMENT
INFRASTRUCTURE PROJECTS, THE SUBSTANCE OF THE PROPOSED PROJECT

AND THE BUDGET PERTAINING TO IT;

(C) IN ALL CASES, THAT THE AFFECTED COMMUNITIES SHALL HAVE ALREADY
BEEN PROVIDED WITH A RELOCATION OR RESETTLEMENT SITE WITH BASIC
SERVICES AND FACILITIES AND ACCESS TO EMPLOYMENT AND LIVELIHOOD
OPPORTUNITIES SUFFICIENT TO MEET THE BASIC NEEDS OF THE AFFECTED
FAMILIES. PROVIDED, ANY FINANCIAL ASSISTANCE OFFERED AND/O!
RECEIVI

) BY THE RELOCATEE SHALL NOT BE CONSIDERED A WAIVER OF
THE OBLIGATION OF THE IMPLEMENTING AGENCY AND/OR LOCAL
GOVERNMENT UNIT TO PROVIDE PROPER RELOCATION.

PROVIDED FURTHER, IN THE EXECUTION OF EVICTION OR DEMOLITION
INVOLVING UNDERPRIVILEGED AND HOMELESS CITIZENS, THE FOLLOWING

(1) Notice upon the effected persons or entities at least thirty (30) days prior to the date
of eviction or demolition;

(2) Adequate consultations on the matter of resettlement with the duly designated
representatives of the families to be resettled and the affected communities in the areas
where they are to be relocated;

(3) Presence of local government officials or their representatives during eviction or
demolition;

(4) Proper identification of all persons taking part in the demolition

(5) Execution of eviction or demolition only during regular office hours from Mondays to
Fridays and during good weather, unless the affected families consent otherwise;

(6) No use of heavy equipment for demolition except for structures that are permanent
and of concrete materials;

(7) Proper uniforms for members of the Philippine National Police who shall occupy the
first line of law enforcement and observe proper disturbance control procedures

The Department of the Interior and Local Government and the Housing and Urban
Development Coordinating Council shall jointly promulgate the necessary rules and
regulations to carry out the above provision.

COMPLIANCE WITH THE ABOVEMENTIONED REQUIREMENTS SHALL BE
MANDATORY IN ALL INSTANCES OF EVICTION AND. DEMOLITION WITHOUT
PREJUDICE TO WHETHER OR NOT SUCH RESIDENCES OF UNDERPRIVILEGED
AND HOMELESS CITIZENS WERE CONSTRUCTED AFTER THE EFFECTIVITY OF
THIS ACT.



SECTION 9. Section 40 of Republic Act 7279 is hereby amended as follows:

Section 40. Role of Government Housing Agencies. — In addition to their respective
existing powers and functions, and those provided for in this Act, the hereunder
mentioned housing agencies shall perform the following:

(a) The Housing and Urban Development Coordinating Council shall, through the key
housing agencies, provide local government units with necessary support such as: (1)
Formulation of standards and guidelines as well as providing technical support in the
preparation of town and land use plans; (2) In coordination with the National Economic
Sand Development Authority and the National Statistics Office, provide data and
information for forward-planning by the local government units in their areas, particularly
on projections as to the population and development trends in their localities and the
corresponding investment programs needed to provide appropriate types and levels of
infrastructure, utilities, services and land use patterns; and (3) Assistance in obtaining
funds and other resources needed in the urban development and housing programs in
their areas or responsibility

(b) The National Housing Authority, upon request of local government units, shall
provide technical and other forms of assistance in the implementation of their respective
Urban development and housing programs with the objective of augmenting and
enhancing local government capabilities in the provision of housing benefits to their
constituents;

(c) The National Home Mortgage Finance Corporation shall administer the Community

Mortgage Program under this Act and promulgate rules and regulations necessary ‘0
carry out the provisions of this Act, and

(4) The Home Insurance Guaranty Corporation shall design an appropriate guarantee
scheme to encourage financial institutions to go into direct lending for housing.

SEC. 40-A. -CREATION OF _ SOCIALIZED HOUSING _ COMMISSIOh
SOCIALIZED HOUSING COMMISSION SHALL BE ESTABLISHED WITH QUA:
JUDICIAL POWERS AND AUTHORITY WITH EXCLUSIVE JURISDICTION OVER
ALL ISSUES ARISING FROM THE IMPLEMENTATION OF THIS ACT, ITS
IMPLEMENTING RULES AND REGULATIONS, PARTICULARLY HOUSING RIGHTS
OF THE HOMELESS AND UNDERPRIVILEGED, INCLUDING BUT NOT LIMITED T
ISSUES INVOLVING DEMOLITION, EVICTION, RESETTLEMENT, RELOCATI
PARTICULARLY IN RELATION TO SECTION 28 AND IMPLEMENTATION OF
BALANCED HOUSING DEVELOPMENT UNDER SECTION 18 HEREOF,
COMMUNITY MORTGAGE PROGRAM, AND HOUSING RIGHTS PROVIDED IN THE
CONSTITUTION, INTERNATIONAL COVENANTS OF WHICH THE PHILIPPINES IS.
A SIGNATORY.

SECTION 10. Section 45 of Republic Act 7279 is hereby amended as follows:


Sec. 45. 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 TWENTY-FIVE [Five] thousand pesos (P25,000) [(P5,000)] but not more than One
hundred thousand pesos (P100,000), or both, at the discretion of the court: Provided,
That, if the offender is a corporation, partnership, association, THE GOVERNMENT OR
ANY OF ITS POLITICAL SUBDIVISIONS, INSTRUMENTALITIES OR AGENCIES,
INCLUDING GOVERNMENT-OWNED OR CONTROLLED CORPORATIONS, or other
juridical entity, the penalty shall be imposed on the officer or officers of said corporation,
partnership, association, GOVERNMENT ENTITY, or juridical entity who caused the
violation.

SECTION 44. Separability Clause. — If any provision of this Act, or any part thereof, is
declared unconstitutional, the same shall not affect the validity and effectivity of the
other portions

SECTION 12. Repealing Clause. — All laws, executive orders, presidential decrees,
proclamations, rules, regulations, issuances, and enactments or parts thereof
inconsistent with this Act are hereby repealed or modified accordingly.

SECTION 13, Effectivity. - This Act shall take effect after fifteen (15) days from its

complete publication either in the Official Gazette or in a newspaper of general
circulation in the Philippines.

Approved,