SIXTEENTH CONGRESS OF THE) 
REPUBLIC OF THE PHILIPPINES) 
Second Regular Session) 
SENATE 
SENATE BILL NO, 2691 
'I'j MnR 11 
P6:41 
INTRODUCED BY SENATOR JOSEPH VICTOR G. EJERCITO 
AN ACT CREATING THE DEPARTMENT OF HUMAN SETTLEMENT AND 
URBAN DEVELOPMENT, DEFINING ITS MANDATES, POWERS AND 
FUNCTIONS, PROVIDING FUNDS THEREFOR AND FOR OTHER PURPOSES 
EXPLANATORY NOTE 
The 1987 Constitution, Article XIII, Section 9 provides: 
"Sec. 9. The State shall, by law, and or 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 also promote adequate employment opportunities to such 
citizens. In the implementation of such program the State shall 
respect the rights of small property owners. " 
Depsite this declared State policy, the Philippines continue to have 
problems in human settlement and urban development brought about by the 
increase in population resulting to the increase in housing backlog. Legislative 
measure and funding are lacking to address this concern. 
Based on the 2010 Census of Population and Housing by the Philippine 
Statistics Authority, the housing needs has reached a total of 5.5 million, and 
can go up to 6.3 million in the year 2017. Consequently, the national government 
has been spending only 1 % of its total budget for housing-the lowest in Asia as per the 
Asian Development Bank.l 
As a response to this pressing need for better human settlement, this bill 
is proposed, which aims to consolidate, rationalize and coordinate the 
functions and powers of the National Home Mortgage Finance Corporation 
(NHMFC), Home Guaranty Corporation (HGC), Home Development Mutual 
Fund (HDMF), National Housing Authority (NHA), and Housing and Land Use 
Regulatory Board (HLURB). 
The Department of Human Settlement and Urban Development shall be 
the 
sole and main planning and policy-making, 
regulatory, 
program 
coordination, and performance monitoring entity for all housing and urban 
1 http://www.abs-cbnnews.com/b U 51 n ess/O 7 /23/ 14/ rea I-estate-gro u p-ca Iis-pa ssa ge-ho U 51 ng-re la te d -bills 


development concerns, primary focusing on the access to and affordability of 
the basic human needs. 
The term 'human settlement' is used to be in conformity to the United 
Nations Human Settlement Program which promotes socially and environmentally 
sustainable human settlements development and the achievement of adequate shelter 
for alJ.2 
Hence, the early passage of this bill is earnestly sought. 
2 http://www .un·ngls.org/spip. php ?page=article_s&id_artlcle=819 
• 
~-. 
JOSEPH VICTOR G. EJERCITO 
Senator 


-:::} f f, '~ " a' 
SIXTEENTH CONGRESS OF THE) 
REPUBLIC OF THE PHILIPPINES) 
Second Regular Session ) 
/':: \I)ndl' "I lqf ~1\rrt:H~ 
MAl{ 11 
P6 :41 
IU;,'U\U' llY ... ~:. 
INTRODUCED BY SENATOR JOSEPH VICTOR G. EJERCITO 
SENATE 
SENATE BILL NO. 2691 
AN ACT CREATING THE DEPARTMENT OF HUMAN SETTLEMENT AND 
URBAN DEVELOPMENT, DEFINING ITS MANDATES, POWERS AND 
FUNCTIONS, PROVIDING FUNDS THEREFOR AND FOR OTHER PURPOSES 
1 
Be it enacted by the Senate and House of Representatives of the Philippines in 
2 
Congress assembled: 
3 
CHAPTER I 
4 
TITLE, VISION AND POLICIES 
5 
SEC 1. Title. -
This act shall be known as the "Department of Human 
6 
Settlement and Urban Development Act of 2015". 
7 
SEC 2.Declaration of Policies- The state shall, by law and for the common 
8 
good' undertake, in cooperation with the private, a continuing program of 
9 
housing and urban development which shall make available at affordable cost, 
10 
decent housing and basic services to under -privileged and homeless citizens in 
11 
urban centers and resettlement areas. It shall also promote adequate 
12 
employment opportunities to such citizens. In the implementation of such 
13 
program, the state shall respect the rights of small property owners. 
14 
The state shall pursue the realization of a 
modern, humane, 
15 
economically viable and, environmentally-sustainable society where the 
16 
urbanization process is manifest in towns and cities being centers of productive 
17 
economic activity and is led by market forces; where urban areas have 
18 
affordable housing, sustainable physical and social infrastructure and services 
19 
facilitated under the democratic and decentralized system of governance; and 
20 
where urban areas provide the opportunities for an improved quality of life and 
21 
eradication of poverty. 
22 
Poor dwellers in urban or rural areas shall not be evicted nor their 
23 
dwelling demolished. Except in accordance with law. 
24 
25 
CHAPTER II 
26 
DEFINITION OF TERMS 
27 
Sec. 3.Definition of Terms- As used in this Act, the following terms shall 
28 
mean: 
29 
a) Attachment refers to lateral relationship between a department and the 
30 
attached agency or corporation for purposes of policy and program 
31 
coordination and as further defined in the Administrative Code. 
1 


1 
b) Housing refers to the system and its components which establishes the 
2 
residential quality of life, including housing, utilities, access to social 
3 
services and other community facilities, security and other aspects 
4 
related to an individual's residence. 
5 
c) Informal Settler Families (ISFs) refer to household living in: 
6 
1) Lot without consent of the property owner; 
7 
2) Dangerous areas; 
8 
3) Areas for government infrastructure projects; 
9 
4) Protected/forest areas (except for indigenous people); 
10 
5) Areas for Priority Development (APDs, if applicable; and 
11 
6) Other government/public land or facilities not intended for habitation. 
12 
d) Urban Development refers to the process of occupation and use of land 
13 
or space for such activities as residential, industrial, commercial and the 
14 
like or their combinations, necessary to carry out the functions of urban 
15 
living. It entails the building or rebuilding of more or less permanent 
16 
structures over land that is often withdrawn or converted from its 
17 
original use, resulting in the creation of a built environment. 
18 
e) Human Settlement - comprise of (a) physical components of shelter and 
19 
infrastructure; and (b) services to which the physical elements provide 
20 
support, such as community services which includes education, health, 
21 
culture, welfare, recreation and nutrition 
22 
23 
CHAPTER III 
24 
DEPARTMENT OF HOUSING, PLANNING AND URBAN DEVELOPMENT 
25 
Sec. 4. Creation and Mandates of the Department of Housing, planning 
26 
and Urban Development- there is hereby created the Department of the 
27 
Human Settlement and Urban Development, hereinafter referred to as the 
28 
Department, through the consolidation of the Housing and Development 
29 
Coordinating Council (HUDCC) and the Housing and Land Use Regulatory 
30 
Board (HLURB). The Department shall act as primary national government 
31 
entity responsible for the management of housing, human settlement 
and 
32 
urban development. It shall be the sole and main planning and policy-making 
33 
regulatory, program coordination, and performance monitoring entity for all 
34 
housing, human settlement and urban development concerns, primary 
35 
focusing on the access to and afford ability of the basic human needs. 
36 
Sec. 5.Power and Function- the Department shall perform the following: 
37 
a) Formulate the national and urban development and housing policy and 
38 
strategy that ensures consistency with the Philippine Development plan 
39 
to promote social and economic welfare, in coordination and consultation 
40 
with the stakeholders, local government unit (LGUs) and other 
41 
government agencies; 
42 
b) Exercise initiative and assume a lead role in coordinating, supervlsmg, 
43 
and integrating all government activities relative to the human settlement 
44 
and urban development; 
45 
c) Formulate housing finance policies to promote the establishment of self-
46 
sustaining, private sector-led housing financing system; 
47 
d) Develop and maintain housing database that shall include a shelter and 
48 
urban development management information system; 
49 
e) Manage and oversee the fast-tracked development of proclaimed housing 
50 
sites, including the use of these land assets as resource mobilization 
51 
strategy to raise alternative funds in developing new town housing 
2 


1 
projects which will serves as central relocation sites for the affected 
2 
informal settlers; 
3 
f) Develop 
effective 
and 
efficient 
financing 
programs 
for 
housing 
4 
beneficiaries and developers; 
5 
g) Ensure the Department's participation in sustainable development, 
6 
climate change adaption, and disaster risk reduction; 
7 
h) Enter into contracts, joint venture agreements or understanding, either 
8 
domestic or foreign, under such terms and conditions as the Department 
9 
may deem proper and reasonable and the subject to existing laws; 
10 
i) Discharge all responsibilities of government that may arise from treaties, 
11 
agreements and other commitments on human settlement and urban 
12 
development to be extended through bilateral or multilateral loans 
13 
and/ or assistance programs; 
14 
j) Receive, take and hold by bequest, device, gift, purchase or lease, either 
15 
absolutely or in trust for any of its purposes from foreign and domestic 
16 
sources, any asset, grant or property, real or personal, subject to such 
17 
limitations as are provided under existing laws and regulations; 
18 
k) Exercise oversight function, coordinate, monitor and evaluate the policies 
19 
and programs of all its attached agencies; 
20 
I) Conduct continuing and comprehensive studies and research necessary 
21 
for housing and urban development; 
22 
m) Provide assistance to build the capacity of LGUs in urban development 
23 
and management to strengthen the role of provinces, cities and 
24 
municipalities as the primary entries for the urban development, renewal 
25 
planning and management; 
26 
n) Monitor local and government compliance with housing and urban 
27 
development laws, standards and guidelines, as well with their judicious 
28 
and fair application of local housing and urban development ordinances; 
29 
0) Support local government partnerships with communities, civil society 
30 
organizations, non-government organizations, and private groups in the 
31 
implementation of urban development and renewal projects. 
32 
p) Develop and establish a sector performance monitoring and assessment 
33 
mechanism and monitor and independently report on the performance of 
34 
national government agencies and LGUs in the human settlement and 
35 
urban development sector to enable continuing improvements in sector 
36 
policy and strategy formulation; 
37 
q) Lead in the deposition of lands intended for housing and owned by the 
38 
Government or any of its subdivisions, instrumentalities, agencies or 
39 
government-owned or -controlled corporations (GOCCs) such as but not 
40 
limited to military reservations, lands reserved for government offices, 
41 
facilities and other installations, and other land assets including friar 
42 
lands which have not been used for the purposes for which have not 
43 
been used for the purposes for which they have been reserved or set 
44 
aside for the past ten (10) years from the effectivity of Republic Act No. 
45 
7279, otherwise known as the Urban Development and Housing Act of 
46 
1992. 
47 
r) Declare an area as Urban Development/ Renewal site including the 
48 
development and implementation of SUb-projects jointly with the 
49 
concerned LGUs under a Public-Private Partnership (PPP) arrangement; 
50 
s) Advocate and assist the LGUs in the establishment of Special Housing 
51 
Fund (SHF) to be sourced from the proceeds of Real Property Tax (RPT) 
52 
pegged at one per centum (15) of the assessed value of real property 
53 
which will be exclusively used for the housing and urban development 
54 
and renewal projects of the LGUs. 
55 
t) Take the lead in the conduct of Pre- and Post- Proclamation activities as 
56 
orchestrator and facilitator of the entire disposition process, including 
3 


1 
the stewardship of the Local Inter- Agency Communities (LIACs) which 
2 
are the primary tasked to oversee the implementation of housing 
3 
proclamation projects; 
4 
u) Effect and oversee a single regulatory system that shall govern all 
5 
activities 
relative 
to 
the 
planning, 
production, 
marketing, 
and 
6 
management of housing and urban development projects; 
7 
v) Take over unfinished, incomplete or abandoned licensed real estate 
8 
development projects under Presidential Decree No. 957; 
9 
w) Encourage the private sector to address and serve a large part of the 
10 
country's housing needs; 
11 
x) Promote, accredit and regulate the use of indigenous material and 
12 
technologies in the housing construction; 
13 
y) Implement prototype projects, including the power of eminent domain, in 
14 
housing and urban development undertakings; 
15 
z) Determine, fix and collect reasonable amounts to be charged as fees and 
16 
charges necessary for the effective implementation of all laws, rules and 
17 
regulations enforced by the Department and impose reasonable fines and 
18 
penalties for violation thereof; 
19 
aa) Register, regulate and provide community development programs for 
20 
Homeowners 
Association 
(HOAs) 
and 
Condominium 
Units 
Owners 
21 
Associations/ Corporations (CUOA/ Cs); 
22 
bb) Formulate and ensure the implementation of housing policies and 
23 
programs for urban poor communities and informal settler families (ISFs) that 
24 
will promote the social and economic welfare of homeless families, particularly 
25 
the poor and unprivileged; 
26 
cc) Initiate and encourage deeper and active involvement and participation of a 
27 
broader spectrum of citizenry through housing cooperatives and civil society 
28 
organizations which shall be used as an avenue through which housing needs 
29 
are assessed and recognized and, together with the local government units, 
30 
serve as the implementing agencies for housing and urban development 
31 
programs; and, 
32 
dd) Perform such other related functions as may be mandated by law. 
33 
Sec.6. Composition- The Department shall be composed of the Office of the 
34 
Secretary, its 
immediate staff, the Offices of the Undersecretaries and 
35 
Assistant Secretaries with respect to their areas of responsibilities and their 
36 
respective staff, and the Offices directly supporting the Office of the Secretary. 
37 
Sec.7. The Secretary- The Secretary shall: 
38 
a) 
Advise the president of the promulgation of rules, regulations and other 
39 
issuances relative to matters under the jurisdiction of the Department; 
40 
b) 
Establish policies and standards for the efficient and effective operations 
41 
of the Department in accordance with programs of the government; 
42 
c) 
Promulgate rules, regulations and other issuances necessary in carrying 
43 
out the Department's mandate, objectives, policies, plans, programs and 
44 
projects; 
45 
d) 
Exercise control and supervision over all personnel and functions of the 
46 
Department; 
47 
e) 
Delegate authority for the performance of any administrative or 
48 
substantive function to the subordinate officials of the Department; 
4 


1 
f) 
Call on other agencies and instrumentalities of the government and 
2 
private entities for cooperation and assistance in the performance of its 
3 
functions; and 
4 
g) 
Perform such other function as may be provided by law or assigned by 
5 
the President. 
6 
The secretary shall also serve as voting, member of the National; 
7 
Economic and Development Authority (NEDA) Board and the governing Boards 
8 
of the Social Security System (SSS), the Government Service Insurances 
9 
System (GSIS), the Climate Change System (CCC), the National Risk Reduction 
10 
Management and Council (NDRMMC), and the Philippine Reclamation 
11 
Authority (PRA). The Secretary shall be a member of NEDA's Committee on the 
12 
Infrastructure (INFRACOM). Investment Coordinating Committee (ICC) and 
13 
Social Development Committee (SDC). The Secretary shall also be a member of 
14 
the body authorized to formulate, prescribe, or amend guidelines under R.A. 
15 
No. 6957 as amended, otherwise known as the Build-Operate-Transfer (BOT) 
16 
Law. 
17 
Sec. 8. The Undersecretaries- Taking into account the requirements of the 
18 
Department an subject to the approval of the President, the Secretary shall be 
19 
assisted by: 
20 
a) 
One (1) Undersecretary for the Bureau of Policies, Coordination, 
21 
Monitoring, Evaluation and Programs; 
22 
b) 
One (1) Undersecretary for the Bureau of Environmental, Land Use and 
23 
Urban Planning and Development; 
24 
c) 
One (1) Undersecretary for the Bureau of Regulation of Housing and Real 
25 
Estate Development; and 
26 
d) 
One (1) Undersecretary for the Bureau of Homeowners, Homeowners 
27 
Associations and Community Development. 
28 
They shall have the powers and functions as provided for in Section 10. 
29 
Chapter 2, Book IV of the Administrative Code of 1987. The Secretary is further 
30 
authorized to delineate and assign the other functional areas of responsibility 
31 
of the Undersecretaries. 
32 
Sec. 9. Qualifications and Appointment- The Secretary and Undersecretaries 
33 
shall be citizens and residents of the Philippines, of good moral character, and 
34 
of proven competence and integrity. They shall appointed by the President. The 
35 
Undersecretaries shall be career officers. 
36 
Sec. 10. Department Bureaus and Regional Offices- The Department shall 
37 
establish, operate, and maintain Bureaus under it such as but not limited to: 
38 
39 
40 
41 
a) 
b) 
c) 
d) 
Environmental, Land Use and Urban Planning and Development; 
Community Development 
Plans, Policies, Programs and Monitoring Group; and 
Legal and Support and Services Group. 
42 
There shall be regional Offices in all the country's administrative regions. Each 
43 
Regional Office shall be headed by a Regional Director. 
44 
In addition to the existing functions of the HUDCC and HLURB, the Regional 
45 
Office shall forms such other functions as may be delegated by the Secretary. 
5 


1 
Sec. 11. Staffing Pattern- The development of the staffing pattern shall be 
2 
based on assessment of the personnel requirements of the entire Department 
3 
ad recommended by the Secretary and as approved by the Department of 
4 
Budget and Management (DBM). The remuneration structure if the positions in 
5 
the staffing pattern shall strictly conform to the Salary of the Standard Law as 
6 
amended. 
7 
8 
CHAPTER IV 
9 
HUMAN SETTLEMENTS ADJUCATORY COMMISSION 
10 
Sec. 12. Reconstitution of the HLURB as the Human Settlements 
11 
Adjudicatory Commission (HSAC) - The HLURB is hereby reconstituted and 
12 
shall henceforth be known as the Human Settlements Adjudicatory 
13 
Commission, hereinafter referred to as the SHAC, which shall operate as an 
14 
independent Commission within the Department. 
15 
Sec. 13. Transfer of Adjudicatory Function of the HLURB to the SHAC-
16 
The adjudicatory function of the HLURB is hereby transferred to the HASC. 
17 
Sec. 14. Composition and Qualifications of Members- The HSAC shall be 
18 
composed of the Secretary of nine (9) full-time Commissioners; provided, That 
19 
the term of incumbent Commissioners shall be respected; provided, further, 
20 
that the subsequent appointees of the President shall be members of the 
21 
Philippine Bar of which, three (3) Commissioners shall have experience in 
22 
urban development planning, sustainable development. Climate change 
23 
adaptation, and disaster risk reduction; three {3} shall be nominees of the 
24 
urban poor and homeowners associations; and three [3] shall come from the 
25 
private sector; provided finally, that each Division that shall be composed of 
26 
three [3] members shall have one 
[1] member representing the urban poor 
27 
communities or the homeowners associations. 
28 
The Commissioners must have been engaged in the practice of the law 
29 
for the period of at least [5] years. 
30 
The Commissioners shall hold office for six [6] years or until they become 
31 
incapacitated to discharge the duties of their office, whichever comes earlier. 
32 
No person who has been convicted of a crime involving moral turpitUde 
33 
shall be appointed at any time as a Member of the HASC. 
34 
Sec. IS. Collegiality, Divisions, and Sessions -The HSAC shall exercise its 
35 
adjudicatory and all other powers, functions, and duties through its Divisions. 
36 
The Divisions of the HASC shall have exclusive appellate jurisdiction over cases 
37 
decided by its Arbitrers. 
38 
The HASC sitting en banc, presided over by the Secretary, shall sit en 
39 
banc only for the purposes of promulgating rules and regulations governing the 
40 
hearing and disposition of cases before any of its Divisions' and its Arbitrers in 
41 
its Regional offices, and in formulating policies effecting its administration and 
42 
operations. 
43 
Sec. 
16. Decisions and Resolutions -
the concurrence of two [2] 
44 
Commissioners of a division shall be necessary for the pronouncement of a 
45 
judgment resolution. Whenever the required membership in a Division is not 
46 
complete and the concurrence of two [2] Commissioners to arrive at a judgment 
47 
or resolution cannot be obtained, the most senior Commissioners' shall 
6 


1 
designate into the division such number of additional Commissioners from the 
2 
other divisions as may be necessary. 
3 
The conclusion of a Division on any cases submitted to it for decision 
4 
shall be reached in consultation before the case is assigned to a Member for 
5 
writing of the decision. It shall be mandatory for the Division to meet the 
6 
purposes of the consultation ordained herein. A certification to this effect by 
7 
the presiding Commissioner of the division shall be issued and a copy thereof 
8 
attached to the record of the case and served upon the parties. 
9 
Sec. 17. Precedence and Supervision - The most senior Commissioner shall 
10 
be the Presiding Commissioner of the first Division and the two (2) next senior 
11 
Members shall be the Presiding Commissioners of the second and third 
12 
Divisions, respectively. 
13 
The HSAC sitting en bane may designate any Commissioner who shall 
14 
have administrative supervision over the HSAC and its Regional branches and 
15 
all their personnel, including the Arbiters. 
16 
The HSAC shall be assisted by the Board Secretariat which shall perform 
17 
such similar or equivalent functions of the Board Secretary of the HLURB. 
18 
SEC. 18. Compensation - A Commissioner shall receive an annual salary at 
19 
least equivalent to an Undersecretary. 
20 
The incumbent full time Commissioners of the present HLURB shall 
21 
remain in office unless they opt to avail of the retirement and separation 
22 
benefits as provided for in Sec. 34 of its Act or are sooner removed for cause. 
23 
Sec. 19. Jurisdiction - In addition to the existing jurisdiction of HLURB, the 
24 
Arbitrers shall exercise exclusive jurisdiction to hear and decide cases involving 
25 
the following: 
26 
a) 
Exclusive original jurisdiction on the following cases involving real estate 
27 
properties, subdivisions, and condominiums: 
28 
1) 
Squatting on subdivision lots and condominium units; 
29 
2) 
Eviction and relocation of squatter communities in subdivisions and 
30 
condominiums; 
31 
3) 
Disputes involving buyer financing agreements with any financing 
32 
institution for condominium or subdivision projects; 
33 
4) 
Easements of right of way in subdivisions; 
34 
5) 
Disputes involving condominium corporations; 
35 
6) 
Disputes between landowners and developers, and between banks/ 
36 
financing institutions and developers whenever the interest of buyers in 
37 
involved; and, 
38 
7) 
Disputes involving the enforcement of CLUPs. 
39 
b) 
Housing Rights. Exclusive original jurisdiction over violations of 
40 
administrative rules and regulations implementing Sections 7, 8, 18 and 28 of 
41 
R.A. No. 7279. 
42 
The secretary may assume jurisdiction over any complaint or case and decide 
43 
the same or certify such case for decision to the HSAC, when authorized by 
44 
both Houses of Congress through a resolution, if the controversy involves 
7 


1 
massive fraud or unsound business practices of critical socio-economic or 
2 
environmental considerations that may have serious potential impact on the 
3 
interest of the sector or the general welfare. 
4 
Sec. 20. Powers and Authorities of the HSAC -
in addition to the 
5 
adjudicatory powers given to HLURB, the HSAC shall exercise the following: 
6 
a) 
To issue writs, and orders prohibiting demolitions, seizures or closures of 
7 
property including temporary writs or orders restraining demolitions, seizures 
8 
or closures of property; 
9 
b) 
To issue writs and orders to execute demolitions or seizures or property 
10 
in accordance with its decision or judgment. 
11 
c) 
To impose administrative fines and/or penalties for violation of R.A. No. 
12 
7279, as amended, and other laws implemented by the HSAC, including 
13 
pertinent rules and regulations, orders, decisions and/or rulings: Provided, 
14 
That the HSAC may adjust such fines not more than once every three (3) years; 
15 
and, 
16 
d) 
To exercise powers granted to the HSAC or to achieve the objectives and 
17 
purposes of this Act, and other laws implemented by the HSAC. 
18 
Sec. 21 Criminal Prosecution - The criminal prosecution for violation of 
19 
housing lawsand regulations shall be instituted before criminal Courts having 
20 
appropriate jurisdiction. 
21 
Sec. 22. The Arbiters -
Qualifications and Appointment. The existing 
22 
HLURB Ariters shall be deemed qualified. Additional Arbiters should be a 
23 
member of the Philippine Bar for at least three (3) years, with at least two (2) 
24 
years of experience or exposure in the field of real and land use development 
25 
cases. 
26 
The President, upon the recommendation of the Secretary, shall appoint 
27 
Arbiters, as may be necessary, for each administrative region, upon the 
28 
recommendation of the HSAC en bane. 
29 
The HSAC en bane shall have the power to assign the Arbiters to the 
30 
Regional Officers. 
31 
Sec. 23. The Sheriff - The HSAC shall appoint a Sheriff or such member of 
32 
Sheriffs in its Central and Regional branches. The person to be appointed to 
33 
the position of sheriff should be a second grade Civil Service eligible and has 
34 
finished at least two (2) years of college. The Sheriff shall be responsible for the 
35 
service and execution of all writs, summonses, and orders and other processes 
36 
of the HSAC. 
37 
Sec. 24. Appeals - Decisions, awards, or orders of the Arbiters shall be final 
38 
and executor unless appealed to the HSAC within fifteen (15) calendar days 
39 
from receipt of such decisions, awards, or orders. The appeal may be 
40 
entertained only on any of the following grounds: 
41 
a) 
If there is primary face evidence of abuse of discretion on the part of the 
42 
Arbiters in rendering the questioned decision, award, or order; 
43 
b) 
If the decision, order, or award was secured through fraud or coercion, 
44 
including graft and corruption; 
45 
c) 
If the appeal is made purely on questions of law; and 
8 


1 
d) 
If serious errors in the findings of facts are raised, which errors would 
2 
cause grave or irreparable damage or injury to the appellant. 
3 
Decision of HSAC can be appealed to the Court of Appeals by way of a Petition 
4 
for Review within fifteen (15) calendar days from notice of judgment, award, or 
5 
order sought to be appealed, pursuant to rule 43 of the Rules of Court. 
6 
Sec. 25. Prohibition against Restraining Order of Injunction - No lower 
7 
Court of the Philippines shall have jurisdiction to issue any restraining order or 
8 
writ of preliminary injunction or permanent injunction-against HSAC or its 
9 
Arbiters in any application, implementation, enforcement, or interpretation of 
10 
the Act and other pertinent laws on housing and on just and humane eviction 
11 
or demolition procedures. 
12 
Sec. 26. Pending Cases - All cases pending in regular Courts arising from in 
13 
connection with the implementation of pertinent laws on housing and on just 
14 
and humane eviction and demolition procedures, shall continue to e heard, 
15 
tried and decided to their finality by such Courts. 
16 
17 
CHAPTER V 
18 
ATTACHED AGENCIES 
19 
Sec. 27. Attached Agencies and Corporations - The following agencies and 
20 
corporations are hereby attached to the Department for policy and program 
21 
coordination monitoring and evaluation: 
22 
a) 
23 
b) 
24 
c) 
25 
d) 
26 
e) 
27 
f) 
National housing Authority (NHA) 
Home Guaranty Corporation (HCG) 
National Home Mortgage Finance Corporation (NHMFC) 
Home Development Mutual Fund (HDMF) 
Social Housing Finance Corporation (SHFC) 
Human Settlement Adjudicatory Commission (HSAC) 
28 
All these agencies shall continue to function according to existing laws and 
29 
their respective Characters. However, each of the heads of ' the attached 
30 
agencies shall enter into a performance contract annually with the secretary. 
31 
Such contracts shall embody the national targets on housing and urban 
32 
development and shall include the over-all administration of the agency and 
33 
the streaming of personnel for effective and efficient service. 
34 
The reorganization, merger, streamlining, abolition or privatization of any 
. 35 
attached GOCCs shall be in consultation with the department and the GOCC 
36 
concerned. 
37 
The appointment of the Board of Directors of Trustees of the attached GOCCs 
38 
shall be in accordance with R.A no. 10149, otherwise known as the GOCC 
39 
Governance Act of 2011. 
40 
Sec 28. Nature of Attachment- The Secretary shall be elected as Chairperson 
41 
of the governing Boards of the NHA, HDMF, NHMFC, SHFC, abd HGC. 
42 
9 


1 
CHAPTER VI 
2 
OTHER PROVISIONS 
3 
Sec 29. Social Housing One- Stop Processing Centers (SHOPCs) - The 
4 
Department shall establish SHOPCs in the regions, which shall centralize the 
5 
processing and issuance of all required housing-related permits, clearances, 
6 
and licenses in accordance with Executive Order No. 45, series of 2001 entitled 
7 
"Prescribing time periods for issuance of housing related certifications, 
8 
clearances and permits, and imposing sanctions for failure to observe the 
9 
same" Provided, That for the foregoing purpose, the respective ceilings fro 
10 
socialized, low cost/ economic and middle- income housing shall be jointly 
11 
determined by the Department and the NEDA: Provided further, That at any 
12 
time, but not more that once every two (2) years, such ceilings may be reviewed 
13 
or revised to conform to prevailing economic conditions. All agencies involved in 
14 
the issuance of said permits, clearances and licenses shall be represented in 
15 
the SHOPC and shall assign to SHOPC regional centers personnel who shall be 
16 
sufficiently authorized to process and issue the same. 
17 
Sec 30. Identijicatio,*, and Designation of Lands for Housing and Urban 
18 
and Rural Development- For the purpose of designating lands for housing 
19 
and urban and rural development, the Department, the DENR,.the. DAR and 
20 
the DA shall, within one hundred eighty (180) days from effectivity of this Act, 
21 
jointly identify agricultural lands which under R.A No. 6657, otherwise known 
22 
as the Comprehensive Agrarian Reform Law and other existing rules and 
23 
regulations are already exempted from conversion requirements; Provided, that 
24 
the list shall exclude lands that are declared as non- negotiable or protected 
25 
from conversion under existing laws and issuances and those lands covered 
26 
under R.A. No. 6657; Provided further, That the designation of lands for 
27 
Housing and Urban and Rural Development purposes shall neither prejudice 
28 
the rights of qualified beneficiaries under R.A No. 6657, nor undermine the 
29 
protected agricultural areas intended to ensure the attainment of food security 
30 
under R.A No. 8435, otherwise known as the Agriculture and Fisheries 
31 
Modernization Act of 1997 (AFMA) and other existing laws; Provided, further 
32 
that in the case of lands exempted from conversion though these have been 
33 
approved by the DAR, if these are contested by the affected individual or 
34 
community beneficiaries, it shall not be allowed to proceed with by horizontal 
35 
or vertical development without need for any prior clearance or approval from 
36 
the DAR or the DA consistent with the terms of approved order or conversion: 
37 
Provided, finally, that all idle government lands in highly urbanized cities are 
38 
hereby prioritized for housing and urban development purposes. 
39 
40 
CHAPTER VII 
41 
TRANSITORY PROVISIONS 
42 
Sec 31. Absorption of Employee of the Consolidated Agencies- The existing 
43 
civil servants of HUDCC and HLURB shall enjoy security of tenure and shall be 
44 
absorbed by the Department in accordance with their staffing patterns and the 
45 
selection process as prescribed under R.A. No. 6656 on the Rules on 
46 
Government reorganization, unless the civil servant wants to avail of Section 
47 
34 hereof. 
48 
Sec 32. Transfer of Assets and Obligations- The following dispositive actions 
49 
shall be implemented within six (6) months from the effectivity of this Act: 
10 


1 
a) 
The assets, equipment funds, records, and pertinent transactions of 
2 
HUDCC and HLURB shall be transferred to the Department and the HSAC; 
3 
and; 
4 
b) 
The Department and the HSAC shall cause the creation of additional 
5 
positions and augment their budget appropriations may be needed. 
6 
Sec 33. Transition Period- All transfer of functions, assets, funds, personnel, 
7 
equipment, properties, transactions, and personnel in the affected national 
8 
government agencies and the formulation and implementation of the internal 
9 
organic structures, staffing patterns, operations systems, and revised budgets 
10 
of the Department and the Department and the HSAC, shall be completed 
11 
within six (6) months from the effectivity of this Acct, during which existing 
12 
personnel shall continue to assume their posts in holdover capacities until new 
13 
appointments are issued. 
14 
Sec 34. Separation from the Service- Employees separated and/ or phased 
15 
out from the service as a result of the consolidation and/or reorganization 
16 
under the provisions of this Act shall within one (1) month from their 
17 
separation and/ or phase out from the service, receive separation benefits in 
18 
accordance with existing laws. In addition, those who are qualified to retire 
19 
shall be allowed to retire and be entitled to all benefits provided, under any of 
20 
the existing retirement's laws. 
21 
Sec 35. Transfer of functions.- The following functions are hereby transferred 
22 
as stipulated hereunder. 
23 
a) 
The regulatory function of the HLURB, including the formulation, 
24 
promulgation, and enforcement of rules, standards and guidelines are hereby 
25 
transferred to the Department. 
26 
b) 
The HLURB's monitoring function, including the imposition of penalties 
27 
for non-compliance to ensure that LGUs will follow the planning guidelines and 
28 
implement their CLUPs/ZOs shall likewise be transferred to the Department; 
29 
and 
30 
c) 
The registration of incorporation of homeowners 
asso~iations and 
31 
condominium corporations of the HLURB are hereby transferred to the 
32 
Department. 
33 
Sec 36. Transfer of Rights and Asset- The Department shall by virtue of this 
34 
Act, be subrogated to all rights and assume all the liabilities of the HUDCC and 
35 
all other agencies of the government whose functions and powers have been 
36 
transferred to it, and all their pertinent funds, records, property, assets, 
37 
equipment and such personnel, as may be necessary, including unexpended 
38 
portions of their appropriations, except the assets, pertinent funds, records 
39 
property, assets, equipment and personnel of the HLURB. 
40 
Sec 37. Formulation of Implementing Rules and Regulations-
The 
41 
Secretary shall prepare and issue the implementing rules and regulations (IRR) 
42 
of the Department within sixty (60) days upon the effectivity of this Act. 
43 
44 
CHAPTER VIII 
45 
IMPLEMENTING AUTHORITY AND FUNDING 
46 
Sec 38. Implementing Authority- The Secretary is hereby authorized to 
47 
undertake the implementation of the provisions of this ACT and implement the 
11 


1 
necessary organizational changes within the specified six (6) month transition 
2 
period. 
3 
Sec 39. Funding- The amount necessary for the initial implementation of the 
4 
provisions of this Act shall be charged against the current years appropriations 
5 
of the HUDCC and HLURB. Thereafter, such sums as may be necessary for the 
6 
continued implementation of this Act shall be included in the annual General 
7 
Appropriations Act. 
8 
9 
CHAPTER IX 
10 
MISCELLANEOUS PROVISIONS 
11 
Sec 40. Mandatory Review of the Implementation of this Act- The 
12 
Department shall conduct and submit a report to Congress a review of the 
13 
implementation of this Act at the end of the second year from the date of its 
14 
effectivity. 
15 
Sec 41. Repealing Clause- All laws, executive orders, proclamations, rules, 
16 
regulations, and other issuances or parts thereof which are inconsistent with 
17 
the provisions of this act are hereby repealed, amended or modified 
18 
accordingly. 
19 
Sec 42. Separability Clause- If, for any reasons, any portion or provisions of 
20 
this Act shall be held unconstitutional or invalid, the remaining provisions not 
21 
affected thereby shall continue to be in full force and effect. 
22 
Sec 43. Effectivity- This Act shall take effect fifteen (15) days after its 
23 
complete publication in at least two (2) national newspapers of general 
24 
circulation. 
25 
26 
Approved. 
27 
28 
12