SEVENTEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES 
)
F irst R egular S ession 
)
‘16 
SEP 13 
P 6 :2 8
SENATE 
S. B. No. 1139
Rf '. ’ ’ 
>?Y:
Introduced by SENATOR JOEL VILLANUEVA
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 Philippine Constitution provides that “the State shall, by law, and 
for the common good, undertake, in cooperation with the public 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 resettlements 
areas.” Unfortunately, the performance of the State with regard to the housing 
sector is not very encouraging.
Based on recent news, the housing backlog in the country is steadily 
increasing every year, and the backlog is estimated to increase to 5.5 Million 
houses at the end of this year. Meanwhile, only about 200,000 houses are 
sold each year. This dismal figure shows that there is a need to align the 
government efforts to housing and urban development.
This poor performance is confounded by the fact that there are several 
government agencies in charge of the housing sector. This bill seeks to 
establish the creation of the Department of Housing Urban Development and 
seeks to bring the different housing agencies under the supervision of the 
Department. This bill also ensures coordination and cooperation among 
different agencies, like the Technical Education and Skills Development 
Authority (TESDA), to ensure that housing and resettlement plans are 
comprehensive and holistic.
This is in line with the principle that decent housing is not limited to the 
provision of a physical structure to our citizens. According to the United 
Nations, “[t]he human right to adequate housing is more than four walls and a


roof. It is the right of every woman, man, youth and child to gain and sustain a 
safe and secure home and community in which to live in peace and dignity.”
The immediate approval of this bill is earnestly sought.
SENATOR /O ELVf
VILLANUEVA


SEVENTEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
•t6 SEP 13 P6-28
SENATE
S. B. No. 1139
K K  Ki 
nY:
Introduced by Senator JOEL VILLANUEVA
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AN ACT CREATING THE DEPARTMENT OF 
HUMAN SETTLEMENT AND URBAN DEVELOPMENT, 
DEFINING ITS MANDATES, POWERS AND FUNCTIONS, 
PROVIDING FUNDS THEREFOR AND FOR OTHER PURPOSES
SECTION 1. TITLE. This Act shall be known as the “Department of Human 
Settlement and Urban Development Act of 2016."
SECTION 2. DECLARATION OF POLICIES. It is hereby declared the policy of the 
State to undertake, in cooperation with the public 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 
resettlements 
areas. 
The State shall 
also 
promote adequate 
employment opportunities to such citizens.
SECTION 3. DEFINITION OF TERMS. For the purposes of this Act, the following
terms shall be defined herein:
(a) 
Attachment refers to lateral relationship between a department and the 
attached agency or corporation for purposes of policy and program 
coordination and as further defined in the Administrative Code;
(b) 
Commission refers to the Human Settlements Adjudicatory Commission 
(HSAC);
(c) 
Department refers to the Department of Housing and Urban Development;
(d) 
HLURB refers to the Housing and Land Use Regulatory Board;
(e) 
Housing refers to the system and its components which establish the 
residential quality of life, including housing, utilities, access to social services


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and other community facilities, security and other aspects related to an 
individual’s residence;
(f) 
HUDCC refers to the Housing and Urban Development Council;
(g) 
Human Settlement comprise of (1) physical components of shelter and 
infrastructure; and (2) services to which the physical elements provide 
support, such as community services which includes education, health, 
culture, welfare, recreation and nutrition;
(h) 
Informal Settler Families (ISFs) refer to household living in:
(1) 
Lot without consent of the property owner;
(2) 
Dangerous areas;
(3) 
Areas for government infrastructure projects;
(4) 
Protected/forest areas (except for indigenous people);
(5) 
Areas for Priority Development (APDs, if applicable); and
(6) 
Other government/public land or facilities not intended for habitation; 
and
(i) 
Urban Development refers to the process of occupation and use of land or 
space for such activities as residential, industrial, commercial and the like or 
their combinations, necessary to carry out the functions of urban living. It 
entails the building or rebuilding of more or less permanent structures over 
land that is often withdrawn or converted from its original use, resulting in the 
creation of a built environment.
SECTION 4. CREATION AND MANDATES OF THE DEPARTMENT OF HUMAN 
SETTLEMENT AND URBAN DEVELOPMENT. There is hereby created the 
Department of Human Settlement and Urban Development (the “Department”), 
through the consolidation of the Housing and Urban Development Coordinating 
Council (HUDCC) and the Housing and Land Use Regulatory Board (HLURB). The 
Department shall act as primary national government entity responsible for the 
management of housing, human settlement and urban development.
It shall be the sole and main planning and policy making regulatory, program 
coordination, and performance monitoring entity for all housing, human settlement 
and urban development concerns, primarily focusing on the access to and 
affordability of the basic human needs.
SECTION 5. POWERS AND FUNCTIONS. The Department shall have the following 
functions:
(a) 
Formulate the national and urban development and housing policy and 
strategy that ensure consistency with the Philippine Development Plan (PDP) 
and the National Physical Framework Plan (NPFP) to promote social and 
economic welfare;
(b) 
Exercise initiative and assume a lead role in coordinating, supervising and 
integrating all government activities relative to the human settlement and 
urban development;


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(c)
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(d)
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(g)
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(h)
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(i)
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(1)
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(m )
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(n)
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(0)
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Formulate housing finance polices to promote the establishment of self- 
sustaining, private sector-led housing financing system;
Examine the feasibility of adopting alternative modes of providing housing, 
such a ownership, public rental scheme, usufructuary, among others;
Develop and maintain housing database that shall include a shelter and urban 
development management information system;
Manage and oversee the fast-tracked development of proclaimed housing 
sites, including the use of these land assets as resource mobilization strategy 
to raise alternative funds in developing new town housing projects which will 
serve as central relocation sites for the affected informal settlers;
Develop effective and efficient financing programs for housing beneficiaries 
and developers;
Ensure the Department’s participation in sustainable development, climate 
change adoption, and disaster risk reduction;
Enter into contracts, joint venture agreements or understanding, either 
domestic or foreign, under such terms and conditions as the Department may 
deem proper and reasonable and subject to existing laws;
Discharge all responsibilities of government that may arise from treaties, 
agreements and other commitments on human settlement and urban 
development to be extended through bilateral or multilateral loans and/or 
assistance programs;
Receive, take and hold by bequest, device, gift, purchase or lease, either 
absolutely or in trust for any of its purposes from foreign and domestic 
sources, any asset, grant or property, real or personal, subject to such 
limitation as are provided under existing laws and regulations;
Exercise oversight function, coordinate, monitor and evaluate the policies and 
programs of all its attached agencies;
Conduct continuing and comprehensive studies and research necessary for 
human settlement and urban development;
Provide assistance to build the capacity of local government units (LGUs) in 
urban development and management, as well as in preparing their respective 
local shelter plan, to strengthen the role of provinces, cities and municipalities 
as the primary entries for the urban development, renewal planning and 
management;
Monitor 
local 
and 
government 
compliance 
with 
housing 
and 
urban 
development laws, standards and guidelines, as well with their judicious and 
fair application of local housing and urban development ordinances;


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(p) 
Support local government partnerships with communities, civil society 
organizations, non-government organizations, and private groups in the 
implementation of urban development and renewal projects;
(q) 
Develop and establish a sector performance monitoring and assessment 
mechanism, monitor and independently report on the performance of national 
government agencies and LGUs in the human settlement and urban 
development sector to enable continuing improvements in sector policy and 
strategy formulation;
(r) 
Lead in the disposition of lands intended for housing and owned by the 
Government or any of its subdivisions, instrumentalities, agencies or 
government-owned or controlled corporations (GOCCs) such as, but not 
limited to military reservations, lands reserved for government offices, facilities 
and other installations, and other land assets including friar lands which have 
not been used for the purposes for which have been reserved or set aside for 
the past ten (10) years from the effectivity of Republic Act No. 7279, otherwise 
known as the Urban Development and Housing Act of 1992;
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Declare 
an 
area 
as 
urban 
development 
renewal 
site 
including 
the 
development and implementation of sub-projects jointly with the concerned 
LGUs under a Private-Public Partnership (PPP) management;
(t) 
Advocate and assist the LGUs in the establishment of Special Housing Fund 
(SHF) to be sourced from the proceeds of Real Property Tax (RPT) pegged at 
one half percent (0.5%) of the assessed value of real property which will be 
exclusively used for identification of sites for socialized housing and low-cost 
housing, data gathering, inventory of lands, mobilization and implementation 
of socialized and low-cost housing programs of the LGUs;
(u) 
Take the lead in the conduct of pre- and post-proclamation activities as 
orchestrator and facilitator of the entire disposition process, including the 
stewardship of the Local Inter-Agency Communities (LIACs) which are 
primarily tasked to oversee the implementation of housing proclamation 
projects;
(v) 
Effect and oversee a single regulatory system that shall govern all activities 
relative to the planning, development, production, marketing and management 
of housing and urban development projects;
(w) 
Take over unfinished, 
incomplete or abandoned 
licensed 
real estate 
development projects under Presidential Decree No. 957, in coordination with 
the appropriate government agencies and instrumentalities under such 
guidelines as may be formulated;
(x) 
Encourage the private sector to address and serve a large part of the 
country’s housing needs;
(y) 
Promote, 
accredit and 
regulate the use of indigenous material and 
technologies in the housing construction;


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(z) 
Implement prototype projects, including the power of eminent domain, in 
housing and urban development undertakings;
(aa) 
Determine, fix and collect reasonable amounts to be charged as fees and 
charges necessary for the effective implementation of all laws, rules and 
regulations enforced by the Department and impose reasonable fines and 
penalties for violation thereof, provided, that income generated from fees, 
fines, charges and other collections in the performance of its functions may be 
utilized to defray operating expenses:
(bb) 
Register, 
regulate and 
provide community development programs for 
Homeowners 
Association 
(HOAs) 
and 
Condominium 
Units 
Owners 
Associations/Corporations (CUONCs);
(cc) 
Formulate and ensure the implementation of housing policies and programs 
for urban poor communities and informal settler families (ISFs) that will 
promote the social and economic welfare of homeless families, particularly the 
poor and unprivileged:
(dd) 
Initiate and encourage deeper and active involvement and participation of a 
broader spectrum of citizenry through housing cooperatives and civil society 
organizations which shall be used as an avenue through which housing needs 
are assessed and recognized and, together with the local government units, 
serve as the implementing agencies for housing and urban development 
programs;
(ee) 
Perform such other related functions as may be mandated by law.
SECTION 6. COMPOSITION. The Department shall be composed of the Office of
the Secretary, its immediate staff, the Offices of the Undersecretaries and Assistant
Secretaries, and the Offices directly supporting the Office of the Secretary.
SECTION 7. THE SECRETARY. The Secretary shall have the following functions:
(a) 
Advise the President on the promulgation of rules, regulations and other 
issuances relative to matters under the jurisdiction of the Department;
(b) 
Establish policies and standards for the efficient and effective operations of 
the Department in accordance with programs of the government;
(c) 
Promulgate rules, regulations and other issuances necessary in carrying out 
the Department’s mandate, objectives policies, plans, programs and projects;
(d) 
Exercise control and supervision over all personnel and functions of the 
Department;
(e) 
Delegate authority for the performance of any administrative or substantive 
function to the subordinate officials of the Department;


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(f) 
Call on other agencies and instrumentalities of the government and private 
entities for cooperation and assistance in the performance of its functions; and
(g) 
Perform such other function as may be provided by law or assigned by the 
President.
The Secretary shall also serve as a voting member of the National Economic and 
Development Authority (NEDA) Board, the governing boards of the Climate Change 
Commission (CCC), the National Disaster Risk Reduction Management Council 
(NDRRMC) and the National Land Use Committee (NLUC). The Secretary shall be a 
member of 
NEDA's 
Committee 
on 
Infrastructure 
(INFRACOM), 
Investment 
Coordinating Committee (ICC) and Social Development Committee (SDC). The 
Secretary shall also be a member of the body authorized to formulate, prescribe or 
amend guidelines under Republic Act No. 6957 as amended, otherwise known as 
the Build-Operate-Transfer (BOT) Law.
SECTION 8. THE UNDERSECRETARIES. The Secretaries shall be assisted by at 
least four Undersecretaries, as follows:
(a) 
One (1) Undersecretary for the Bureau of Policies, Coordination, Monitoring, 
Evaluation and Programs;
(b) 
One (1) Undersecretary for the Bureau of Environmental, Land Use and 
Urban Planning and Development;
(c) 
One (1) Undersecretary for the Bureau of Regulation of Housing and Real 
Estate Development; and
(d) 
One (1) Undersecretary for the Bureau of Homeowners, Homeowners 
Associations and Community Development.
They shall have the powers and functions as provided for in Section 10, Chapter 2, 
Book IV of the Administrative Code of 1987. The Secretary is further authorized to 
delineate 
and 
assign 
the 
other functional 
areas 
of 
responsibility 
of the 
Undersecretaries.
SECTION 
9. 
QUALIFICATIONS 
AND 
APPOINTMENT. 
The 
Secretary and 
Undersecretaries shall be citizens and residents of the Philippines, of good moral 
character, and of proven competence and integrity. They shall be appointed by the 
President. The Undersecretaries shall be career officers.
SECTION 
10. 
DEPARTMENT 
BUREAS 
AND 
REGIONAL 
OFFICES. 
The
Department shall establish, operate and maintain Bureaus under it, such as but not 
limited to:
(a) 
Environmental, Land Use and Urban Planning and Development;
(b) 
Community Development;
(c) 
Plans, Policies, Programs and Monitoring Group; and


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(d) 
Legal and Support and Services Group.
There shall be Regional Offices in all the country’s administrative regions which shall 
be headed by a Regional Director.
SECTION 11. STAFFING PATTERN. The Secretary shall cause the preparation and 
implementation of a staffing pattern for the Department. The development of the 
staffing pattern shall be based on an assessment of the personnel requirements of 
the entire Department. The remuneration structure of the positions in the staffing 
patter shall conform to the provisions of Republic Act No. 6758, otherwise known as 
the Salary Standardization Law, as amended. The Department of Budget and 
Management (DBM) shall, upon its approval, fund in full the staffing pattern of the 
Department.
SECTION 
12. 
RECONSTITUTION 
OF 
THE 
HLURB 
AS 
THE 
HUMAN 
SETTLEMENTS ADJUDICATORY COMMISSION (HSAC). The HLURB is hereby 
reconstituted 
as 
the 
Human 
Settlements 
Adjudicatory 
Commission 
(the 
“Commission”), which shall be attached with the Department for policy, plan and 
program coordination only.
SECTION 13. TRANSFER OF ADJUDICATORY FUNCTION OF THE HLURB TO 
THE HSAC. The adjudication function of the HLURB shall be assumed and 
exercised by the Commission.
SECTION 14. COMPOSITION AND QUALIFICATIONS OF MEMBERS. The
Commission shall be composed of nine (9) full time commissioners; provided that, 
the term of incumbent Commissioners shall be respected; provided further, that the 
subsequent appointees of the President shall be members of the Philippine Bar of 
good standing and has been engaged in the practice of law for at least ten (10) years 
with experience and/or exposure in housing and/or urban development.
The Commissioners shall hold office for a period of six (6) years, unless earlier 
removed for cause. The Department Secretary shall be the ex-officio chairman of the 
Commission.
SECTION 15. COLLEGIALITY, DIVISIONS AND SESSIONS. The Commission shall 
exercise its adjudicatory and all other powers, functions and duties through its 
divisions. The divisions of the Commission shall have exclusive appellate jurisdiction 
over cases decided by its arbiters. The Commission, sitting en banc, shall be 
presided over by the Secretary and shall decide only on the promulgation of rules 
and regulations governing the hearing and disposition of cases before any of its 
divisions and its arbiters in its regional offices, and on the formulation of policies 
affecting its administration and operations.
SECTION 16. DECISIONS AND RESOLUTIONS. The concurrence of two (2) 
Commissioners of a division shall be necessary for the pronouncement of a 
judgment or resolution. Whenever the required membership in a division is not 
complete and the concurrence of two (2) Commissioners to arrive at a judgment or 
resolution cannot be obtained, the most senior commissioner shall designate into the


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division such number of additional Commissioners from the other divisions as may 
be necessary.
The conclusion of a Division on any cases submitted to it for decision shall be 
reached in consultation before the case is assigned to a member for writing of the 
decision. It shall be mandatory for the division to meet the purposes of the 
consultation ordained herein. A certification to this effect by the presiding 
Commissioner of the division shall be issued and a copy thereof attached to the 
record of the case and served upon the parties.
SECTION 17. PRECEDENCE AND SUPERVISION. The most senior Commissioner 
shall be the Presiding Commissioner of the first division and the two (2) next senior 
members shall be the Presiding Commissioners of the second and third divisions, 
respectively.
The Commission sitting en banc may designate any Commissioner who shall have 
administrative supervision over the Commission and its regional branches and all 
their personnel, including the arbiters.
The Commission shall be assisted by the Board secretariat which shall perform such 
similar or equivalent functions of the Board Secretary of the HLURB.
SECTION 18. COMPENSATION. A Commissioner shall receive an annual salary at 
least equivalent to an undersecretary.
The incumbent full time Commissioners of the present HLURB shall remain in office 
unless they opt to avail of the retirement and separation benefits as provided for in 
this Act or are sooner removed for cause.
SECTION 19. JURISDICTION OF ARBITERS. The arbiters shall exercise exclusive 
jurisdiction to hear and decide cases involving the following:
(a) 
Claims for refund, complaints against unsound real estate business practices 
and other actions for specific performance of contractual and statutory 
obligations filed by subdivision lot or condominium unit buyer against the 
project owner, developer, dealer, broker or salesman, and other complaints 
for violation of Presidential Decree No. 957 and other related laws;
(b) 
Intra-association disputes or controversies arising out of the relations between 
and 
among 
members 
of 
homeowners 
associations 
or 
condominium 
corporations, between any or all of them and the homeowners association or 
condominium corporation of which they are members, including federations of 
homeowners associations;
(c) 
Inter-association disputes or controversies arising out of or in connection with 
the corporate relations between and among two or more homeowners 
associations or condominium corporations or federations;
(d) 
Disputes between such homeowners association or condominium corporation 
and the State, insofar as it concerns their individual franchise or right to exist


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and those which are intrinsically connected with the regulation of homeowners 
associations and condominium corporations or dealing with the internal affairs 
of such entity;
(e) 
Suits filed in opposition to an application for certificate of registration and 
license to sell, development permit for condominium projects, clearance to 
mortgage, or the revocation or cancellation thereof, and locational clearances, 
certificates or permits, when issued by the HLURB/ the Department;
(f) 
Suits filed by the project owner/developer against a buyer for the collection of 
unpaid amortization, cancellation of contract and/or ejectment;
(g) 
Eviction of informal settlers in open spaces or common areas of subdivisions 
and condominiums filed by the project owner or developer or the duly 
registered homeowners association or condominium corporation of the 
project;
(h) 
Disputes involving buyer financing agreements with any financing institution 
for the purchase of condominium units or subdivision lots;
(i) 
Disputes involving easements within or among subdivision projects;
(I) 
Violations of administrative rules and regulations implementing Sections 7, 8 
and 18 of Republic Act No. 7279;
(k) 
Disputes between landowners and developers, and between banks/financing 
institutions and developers whenever the interest of the buyers is involved;
(l) 
Disputes involving the enforcement of comprehensive land use plans (CLUPs) 
and/or their accompanying zoning ordinances; and
(m) 
Such other actions as may be provided by law.
SECTION 20. JURISDICTION OF THE COMMISSION AND THE SECRETARY.
The Commission shall have the exclusive appellate jurisdiction over all cases 
decided by the arbiters. The decision of the Commission shall be final and executory 
after fifteen (15) calendar days from receipt thereof by the parties. The Secretary 
may assume jurisdiction over a complaint or case and decide the same or certify 
such case for decision to the Commission if the controversy involved massive real 
estate 
fraud 
or 
unsound 
business 
practices 
of critical 
socio-economic or 
environmental considerations that may have serious potential impact on the interests 
of the sector or the general welfare.
SECTION 21. POWERS AND AUTHORITIES OF THE COMMISSION. The
Commission shall have the following powers and authorities:
(a) 
To issue writs and orders prohibiting demolitions, seizures or closures of 
property including temporary writs or orders restraining demolitions, seizures 
or closures of property;


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(b) 
To issue writs and orders to execute demolitions or seizures or property in 
accordance with its decision or judgment;
(c) 
To impose administrative fines and/or penalties for violation of Republic Act 
No. 7279, as amended, and other laws implemented by the Commission, 
including pertinent rules and regulations, orders, decisions and/or rulings 
provided that, the Commission may adjust such fines not more than once 
every three (3) years; and
(d) 
To exercise powers granted to the Commission or to achieve the objectives 
and purposes of this Act, and other laws implemented by the Commission.
SECTION 22. CRIMINAL PROSECUTION. The criminal prosecution for violation of 
housing laws and regulations shall be instituted before criminal courts having 
appropriate jurisdiction.
SECTION 23. QUALIFICATIONS AND APPOINTMENT OF ARBITERS. The
existing HLURB arbiters shall be deemed qualified. Additional arbiters should be a 
member of the Philippine Bar for at least seven (7) years, with at least three (3) 
years of experience or exposure in the field of real and land use development cases.
The arbiters shall receive a minimum monthly compensation corresponding to Salary 
Grade 28 as prescribed under Republic Act No. 6758, as amended. The President, 
upon the recommendation of the Secretary, shall appoint arbiters and as may be 
necessary, for each administrative region, upon the recommendation of the 
Commission en banc.
SECTION 24. THE SHERIFF. The Commission shall appoint a sheriff in its central 
and regional branches, in accordance with the provisions of the Civil Service law. 
rules and regulations. The Sheriff shall be responsible for the service and execution 
of all writs, summonses, and orders and other processes of the Commission.
SECTION 25. APPEALS. Decisions, awards, or orders of the arbiters shall be final 
and executory unless appealed to the Commission within fifteen (15) calendar days 
from receipt of such decisions, awards or orders. The appeal may be entertained 
only on any of the following grounds;
(a) 
If there is prima facie evidence of abuse of discretion on the part of the 
arbiters in rendering the questioned decision, award or order;
(b) 
If the decision, order or award was secured through fraud, coercion including 
graft and corruption;
(c) 
If the appeal is made purely on questions of law; and
(d) 
If serious errors in the finding of facts are raised, which errors would cause 
grave or irreparable damage or injury to the appellant.
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Decision of the Commission shall be appealed to the Court of Appeals by way of a 
Petition for Review within fifteen (15) calendar days from notice of judgment, award 
or order sought to be appealed, pursuant to Rule 43 of the Rules of Court.
SECTION 26. PROHIBITION AGAINST RESTRAINING ORDER OR INJUNCTION.
No court of the Philippines, except the Court of Appeals and the Supreme Court, 
shall have jurisdiction to issue any restraining order or writ of preliminary injunction 
or permanent injunction against the Commission or its arbiters in any application, 
implementation, enforcement or interpretation of the Act and other pertinent laws on 
housing and on just humane eviction or demolition procedures.
SECTION 27. PENDING CASES. All cases pending in regular courts arising from or 
in connection with the implementation of pertinent laws on housing and on just and 
humane eviction and demolition procedures, shall continue to be heard, tried and 
decided to their finality by such courts.
SECTION 28. ATTACHED AGENCIES AND CORPORATIONS. The following 
agencies and corporations shall be attached to the Department for policy and 
program coordination, monitoring and evaluation:
(a) 
National Housing Authority (NHA);
(b) 
Home Guaranty Corporation (HGC);
(c) 
National Home Mortgage Finance Corporation (NHMFC);
(d) 
Home Development Mutual Fund (HDMF);
(e) 
Social Housing Finance Corporation (SHFC); and
(f) 
Human Settlement Adjudicatory Commission (HSAC).
All these agencies shall continue to function according to existing laws and their 
respective charters. However, each of the heads of the attached agencies shall enter 
into a performance contract annually with the Secretary. Such contracts shall 
embody the national targets on housing and urban development and shall include 
the over all administration of the agency and the streaming of personnel for effective 
and efficient service.
The reorganization, merger, streamlining, abolition or privatization of any attached 
GOCCs shall be in consultation with the department and the GOCC concerned. The 
appointment of the Board of Directors of the attached GOCCs shall be in accordance 
with Republic Act No. 10149, otherwise known as the GOCC Governance Act of 
2011.
The Secretary shall convene a regular meeting with these agencies to ensure that 
the efforts of these agencies and the plans of the Department are synchronized and 
to prevent duplication of efforts.


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SECTION 29. NATURE OF ATTACHMENT. Notwithstanding the specific provisions 
of the respective charters of the attached agencies to the Department, the Secretary 
shall be elected as Chairperson of the governing boards of the NHA, HDMF 
NHMFC, SHFC and HGC.
SECTION 30. COORDINATION AND PARTNERSHIP WITH OTHER AGENCIES.
The Department shall closely coordinate with various government agencies in 
performing its mandate to ensure that housing and resettlement plans are 
comprehensive and holistic, such as, but not limited to,
(a) 
The Department of Trade and 
Industry, to ensure that resettlement 
communities with respect to livelihood programs;
(b) 
The Department of Education, to ensure that there are nearby schools in 
relocation sites;
t
(c) 
The Department of Social Welfare and Development; to Phsure that the plight
of the poor is addressed; and 
. 
. . . 
■
(d) 
The Technical Education and Services Development Authority, to ensure that 
the citizens shall have the necessary skills.
SECTION 
31. 
SOCIAL 
HOUSING 
ONE-STOP 
PROCESSING 
CENTERS 
(SHOPCs). The Department shall establish SHOPCs in the regions, which shall 
centralize the processing and issuance of all required housing related permits, 
clearances and licenses in accordance with Executive Order No. 45, series of 2001 
entitled “Prescribing Time Periods for Issuance of Housing Related Certifications, 
Clearances and Permits, and Imposing Sanctions for Failure to Observe the Same”; 
provided that, for the foregoing purpose, the respective ceilings for socialized, low 
cost/ economic and middle income housing shall be jointly determined by the 
Department and the National Economic Development Authority (NEDA); provided 
further, that at any time, but not more than once every two (2) years, such ceilings 
may be reviewed or revised to conform to prevailing economic conditions. All 
agencies involved in the issuance of said permits, clearances and licenses shall be 
represented in the SHOPC and shall assign to SHOPC regional centers personnel 
who shall be sufficiently authorized to process and issue the same.
SECTION 32. IDENTIFICATION AND DESIGNATION OF LANDS FOR HOUSING 
AND URBAN AND RURAL DEVELOPMENT. For the purpose of designating lands 
for housing and urban and rural development, the Department, Department of 
Environmental and Natural Resources (DENR), Department of Agrarian Reform 
(DAR), and Department of Agriculture (DA) shall, within one hundred eighty (180) 
days from effectivity of this Act, jointly identify agricultural lands which under 
Republic Act No. 6657, otherwise known as the Comprehensive Agrarian Reform 
Law and other existing rules and regulations are already exempted from conversion 
requirements; provided that, the list shall exclude lands that are declared as non- 
negotiable or protected from conversion under existing laws and issuances and 
those lands covered under Republic Act No. 6657; provided further, that the 
designation of lands for housing and urban development purposes shall neither
i;


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prejudice the rights of qualified beneficiaries under Republic Act No. 6657, nor 
undermine the protected agricultural areas intended to ensure the attainment of food 
security under Republic Act No. 8435, otherwise known as the Agricultural and 
Fisheries Modernization Act of 1997 (AFMA) and other existing laws; provided 
further, that in the case of lands exempted from conversion duly approved by the 
DAR and contested by an affected individual or community benehciaries, horizontal 
or vertical development shall not proceed without any prior clearance or approval 
from the DAR or the DA consistent with the terms of approved order or conversion; 
provided finally, that all idle government lands in highly urbanized cities are hereby 
prioritized for housing and urban development purposes.
SECTION 
33. ABSORPTION 
OF 
EMPLOYEES OF THE CONSOLIDATED 
AGENCIES. The existing civil servants of HUDCC and HLURB shall enjoy security 
of tenure and shall be absorbed by the Department in accordance with their staffing 
patterns and the selection process as prescribed under Republic Act No. 6656 on 
the rules on government reorganization, unless the civil servant wants to avail of 
Section 35 hereof.
SECTION 34. TRANSFER OF ASSETS AND OBLIGATIONS. The following actions 
shall be implemented within six (6) months from the effectivity of this Act:
(a) 
The assets, equipment, funds, records and personnel, equipment, properties, 
transactions of HUDCC and HLURB shall be transferred to the Department 
and the Commission; and
(b) 
The Department and the Commission shall cause the creation of additional 
positions and augment their budget appropriations, as may be necessary.
SECTION 35. TRANSITION PERIOD. All transfer of functions, assets, funds, 
personnel, equipment, properties, transactions and personnel in the affected national 
government agencies and the formulation and implementation of the internal organic 
structures, staffing patterns, operations systems, and revised budgets of the 
Department and the Department and the Commission, shall be completed within six 
(6) months from the effectivity of this Act, during which existing personnel shall 
continue to assume their posts in holdover capacities until new appointments are 
issued.
SECTION 36. SEPARATION FROM THE SERVICE. Employees separated and/or 
phased out from the service as a result of the consolidation and/or reorganization 
under the provisions of this Act shall within one (1) month from their separation 
and/or phase out from the service, receive separation benefits in accordance with 
existing laws. In addition, those who are qualified to retire shall be allowed to retire 
and be entitled to all benefits provided under any of the existing retirement laws.
SECTION 37. TRANSFER OF FUNCTIONS. The following functions shall be 
transferred:
(a) 
The regulatory function of the HLURB, including the formulation, promulgation 
and enforcement of rules, standards and guidelines are hereby transferred to 
the Department;
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(b) 
The HLURB’s monitoring function, including the imposition of penalties for 
non-compliance to ensure that LGUs will follow the planning guidelines and 
implement their CLUPs/ zoning ordinances shall likewise be transferred to the 
Department: and
(c) 
The 
registration 
of 
incorporation 
of 
homeowners 
associations 
and 
condominium corporations of the HLURB are hereby transferred to the 
Department.
SECTION 38. ABOLITION OF THE HUDCC. The HUDCC shall be abolished. The 
Department shall, by virtue of this Act, be subrogated to all rights and assume all the 
liabilities of the HUDCC and HLURB, except those that may hereafter be transferred 
to or absorbed by the Commission.
SECTION 39. FORMULATION OF IMPLEMENTING RULES AND REGULATIONS.
The Secretary shall prepare and issue the implementing rules and regulations of the 
Department within sixty (60) days upon the effectivity of this Act.
SECTION 40. IMPLEMENTING AUTHORITY. The Secretary shall be authorized to 
undertake 
the 
implementation 
of 
this 
Act 
and 
implement 
the 
necessary 
organizational changes within the specified six (6) month transition period.
SECTION 41. FUNDING. The amount necessary for the initial implementation of the 
provisions of this Act shall be charged against the current year’s appropriations of 
the HUDCC and HLURB. Thereafter, such sums as may be necessary for the 
continued implementation of this Act shall be included in the annual General 
Appropriations Act (GAA).
SECTION 42. MANDATORY REVIEW OF THE IMPLEMENTATION OF THIS ACT.
The Department shall conduct and submit a report to Congress a review of the 
implementation of this Act at the end of the second year from the date of its 
effectivity.
SECTION 43. REPEALING CLAUSE. All laws, executive orders, proclamations, 
rules, regulations and other issuances or parts thereof which are inconsistent with 
the provisions of this Act are hereby repealed, amended or modified accordingly.
SECTION 44. SEPARABILITY CLAUSE. If, for any reasons, any portion or 
provisions of this Act shall be unconstitutional or invalid, the remaining provisions not 
affected thereby shall continue to be in full force and effect.
SECTION 45. EFFECTIVITY. This Act shall take effect fifteen (15) days after its 
complete publication in at least two (2) national newspapers of general circulation.
Approved.
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