Republic of the Philippines Be CEIVE

HOUSE OF REPRESENTATIVES : JAN 25 mt
Quezon City r

17% Congress
First Regular Session

House Bill No. 4829

Introduced by REP. MICHAEL L. ROMERO and ENRICO A. PINEDA

EXPLANATORY NOTE

I1is imperative that the Local Government Units (LGUs) shall be charged with the
implementation of this Act in their respective localities, in coordination with the
Housing and Urban Development Coordinating Council (HUDCC), the national
housing agencies, the Presidential Commission for the Urban Poor (PCUP), the
private sector and other nongovernment organizations.

They shall prepare a comprehensive land use plan for their respective localities
in accordance with the provisions of this Act.

The Housing and Urban Development Coordinating Council shall, through the
key housing agencies, provide local government units with necessary support
such to formulate standards and guidelines as well as providing technical
support in the preparation of town and land use plans

In coordination with the National Economic and Development Authority (NEDA)
and the Philippine Stalistics Authority (PSA), shall 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.

This House Bill seeks to assure, 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; and shall design an appropriate


guarantee scheme to encourage financial institutions to go into direct lending
for housing.

Approval of this pt is therefore sought.

crag roma Ph.D Re . PINEDA


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

17h Congress
First Regular Session

House Bill No, 4829

Introduced by REP. MICHAEL L. ROMERO and ENRICO A. PINEDA

AN ACT

RATIONALIZING THE COMMUNITY MORTGAGE PROGRAM (CMP) TO

CREATE AN APPROPRIATE GUARANTY SCHEME, IMPROVE THE EXTENT

OF ITS AFFORDABILITY, PROVIDING FUNDS THEREOF, INCREASING ITS
PENALTIES AND SANCTIONS, AND FOR OTHER PURPOSES

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

SECTION 1. DECLARATION OF POLICY - the state shall hereby assists legally
organized associations of underprivileged and homeless citizens to purchase

and develop a tract of land under the concept of community ownership.

The state shall assist residents of blighted or depressed areas to own the
lots they occupy, or where they choose to relocate to, and eventually
improve their neighbourhood and homes to the extent of their

affordability,


SECTION 2. PRIVELEGES — To encourage its wider implementation, the
participants in the Community Mortgage Program (CMP) shall be granted with

the following incentives:

(1) Government-owned or -controlled corporations
(GOCC) and Local Government units (LGUs), may dispose of
their idle lands suilable for socialized housing under the CMP
through negotiable sale at prices based on acquisition cost

plus financial carrying costs;

(2) Properties sold under the CMP shall be exempted

from the capital gains tax; and

(3) Beneficiaries under the CMP shall not be evicled nor
dispossessed of their lands or improvements unless they have
incurred arrangements in payments of amoriizations for three
(3) months.

SECTION 3. BENEFICIARIES. — Beneficiaries of this Program shall be
responsible for their organization into associations to manage their subdivisions
or places of residence, to secure housing loans under existing Community
Mortgage Program and such other projects beneficiaries to them. Subject to
such rules and regulations to be promulgated by the National Home Morlgage
Finance Corporation (NHMFC), associations organized pursuant to this Act may

collectively acquire and own lands covered by this Program.

Where the beneficiaries fail to form an association by and among
themselves, the National Home Morigage finance Corporation shall
initiate the organization of the same in coordination with the Presidential
Commission for the Urban Poor (PCUP) and the local government units

concerned


No person who is not a bona fide resident of the area shall be a

member or officer of such association.

SECTION 4, IMPLEMENTING RULES AND REGULATIONS - The local
government units, in cooperation with the National Housing Authority (NHA),
Technology and Livelihood Resource Center (TLRC), and other concemed
agencies, shall promote the production and use of indigenous, alternative, and

low-cost construction materials and technologies for socialized housing.

The local government units shall coordinate with the Department of
Environment and Natural Resources (DENR) in taking measures that will
plan and regulate urban activities for the conservation and protection of
vital, unique and sensitive ecosystems, scenic landscapes, cultural sites

and other similar resource areas.

To make the implementation of this function more effective, the
active participation of the citizenry in environmental rehabilitation and in
decision making process shall be promoted and encouraged. The local
goverment units shall recommend to the Environmental and
Management Bureau (EMB-DENR) the immediate closure of factories,
mines and transpor! companies which are found to be causing massive

pollution.

SECTION 5. MECHANICS - The local government units shall set up an
effective mechanism, together with the appropriate agencies like the
Population Commission, the National Economic and Development Authority
{NEDA} and the Philippine Statistics Authority (PSA), to monitor trends in the
movements of population from rural to urban, urban to urban, and urban to

rural areas,


They shall identify measures by which such movements can be
influenced to achieve balance belween urban capabilities and
population, to direct appropriate segments of the population into areas
where they can have access to opportunities to improve their lives and to
contribute to national growth and recommend proposed legislation to
Congress, if necessary. The Population Commission, the National
Economic and Developmen! Authority, and the Philippine Statistics
Authorily shall likewise provided advanced planning information to
national and local government planners on population projections and
the consequent level of services needed in particular urban and

urbanizable areas,

This service will include early-warning systems on expected
dysfunctions in @ particular urban area due to population increases,

decreases, or age structure changes.

SECTION 6. APPROPRIATION - The State shall hereby provide an additional
authorize capitalization of Five hundred million pesos (P500,000,000.00) 1o evolve
and implement a comprehensive national program to meet the housing and
related needs of marginal and low-income families in Metro Manila and other
urban centers of the country. The state shall hereby authorized the Housing and
Urban Development Coordinaling Council (HUDCC) to re-align ils
appropriations, in the current year of the date of the effectivity of this Act to

conform with its mandate and requirements.

The amount necessary to cary oul the purposes of this Act shall be
included in the annual budget of implementing agencies in the General
Appropriations Act (GAA) of the year following its enactment into law and every

year thereafter.


SECTION 7. FUNDING — Funds for the urban development and housing

program shall come from the following sources:

(1) A minimum of fifty percent (50%) from the annual net
income of the Public Estate Authority, to be used by the
National Housing Authority to carry out its programs of land
acquisition for resettlement purposes under this Act;

(2) Proceeds from the disposition of ill-gotten wealth, not
otherwise previously set aside for any other purpose, shall be
applied fo the implementation of this Act shall be
administered by the National Home Mortgage Finance
Corporation;

(3) Loans, grants, bequests and donations, whether from
local or foreign sources;

(4) Flotation of bonds, subject to the guidelines to be set
by the Monetary Board;

(5) Proceeds from the social housing tax and, subject to
the concurrence of the local government units concemed,
idle lands tax as provided in Section 236 of the Local
Government Code of 1991 and other existing laws;

(6) Proceeds from the date or disposition of alienable
public lands in urban areas; and

(7) Domestic and foreign investment or financing
through appropriate arrangements like the build-operate-and-
transfer scheme.

The amount of Five hundred million pesos (P500,000,000.00) as may be
necessary to carry out the provisions of this Act shall be included in the General
Appropriations Act of the year following its enactment into law.

SECTION 8, PENALTIES — Any person who violates any provision of this Act
shall be imposed the penally of not more than six (6) years of imprisonment or a
fine of not less than Fifty thousand pesos (P50,000) but not more than One
hundred fifty thousand pesos (P150,000), or both, al the discretion of the court:


Provided, That, if the offender is a corporation, partnership, association or
other juridical entity, the penalty shall be imposed on the officer or officers of
said corporation, partnership, association or juridical entity who caused the

violation.

SECTION 9. ANNUAL REPORTS- The Housing and Urban Development
Coordinating Council (HUDCC) shall hereby submit periodic reports on its
findings and make recommendations on actions to be taken by Congress and
Senate and the appropriate department.

SECTION 10. AUTOMATIC REVIEW - Every year after the effectivily of this
Act, an independent review panel composed of experts to be appointed by
the President shall review the policies and programs in the HUDCC-NHA and
shall make recommendations, based on its findings, to the President and to both
Houses of Congress

SECTION 11, SEPARABILITY CLAUSE - If any provision or section of this Ac! or
the application thereof to any person or circumstances is held invalid, the other
provisions or sections of this Act shall remain valid, and the application of such
remaining provisions or sections to the other persons or circumstances, shall not

be affected thereby.

SECTION 12. REPEALING CLAUSE - All provisions and any other provisions

inconsistent with the provision of this Act are hereby amended accordingly.

SECTION 13. EFFECTIVITY — This Act shall take effect fifteen (15) days from
the date of its publication in the Official Gazette or in at least two (2)

newspapers of general circulation.

Approved.