Republic of the Philippines
HOUSE OF REPRESENTATIVES,
Quezon City

SIXTEENTH CONGRESS
First Regular Session

587

HOUSE BILL NO.

Introduced by: HON. JOSE CHRISTOPHER Y. BELMONTE

EXPLANATORY NOTE

The bill entitled, “An Act Creating the Department of Housing, Planning and
Urban Development, Defining its Powers and Functions and Streamlining the Government
Housing Program,” is a slight modification of House Bill No. 6231 of the 15%
Congress, which was attached to Committee Report No. 2216 of the Joint
‘Committees on Government Reorganization, Housing and Urban Development, and
Appropriations.

House Bill No. 6231 was a substitute bill for three (3) separate proposed
measures, namely: (a) House Bill No. 384 introduced by Representatives Gloria
Macapagal-Arroyo and Diosdado Macapagal Arroyo entitled “An Act Creating the
Department of Housing, Planning, and Urban Development, Defining its Powers and
Functions, Rationalizing the Government Housing System, and for Other Purposes; (b)
House Bill No. 1157 introduced Representative Rodolfo G. Biazon entitled “An Act
Defining the Vision and Policies of Government in the Housing and Urban and Development
Sector, Creating the Department of Housing and Urban Development, Defining its Mandate,
Powers and Functions, and for Other Purposes,"; (c) House Bill No. 1231 introduced by
Representative Winston T. Castelo entitled “Omnibus Housing and Urban
Development”, and (d) House Bill No. 2216 introduced by Representative Rodolfo G.
Valencia entitled “Creating the Department of Housing and Urban Development,
Providing its Mechanisms and Appropriating Funds Thereof.”

The present bill aims, among others, 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 bill will also be a step in the direction of providing decent and affordable
housing to every Filipino family at the soonest possible time and at the least
cumbersome manner, which is in line with the Urban Land Reform and Housing
provision under Section 9, Article XIII on Social Justice and Human Rights of the
1987 Constitution commands that:

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

‘The key provisions of the bill is the creation of a new department to be called
“The Department of Housing, Planning and Urban Development”, which shall act as
the primary national government entity responsible for the management and
implementation of the government's housing and urban development program. The
Department shall be the sole and main planning and policy-making, regulatory,
program coordination, and performance monitoring entity for all housing and urban
development concerns, primarily focusing on the access to and affordability of
decent housing and basic services in obedience to the afore-quoted Constitutional
mandate.

The necessity of redefining and rationalizing the program of the government
in the areas of housing and urban development finds cogency in the ever growing
demand of the greater majority of our people for accessible and sustainable housing.
‘This demand even acquires urgency in our expanding and “exploding” urban
centers that challenge even the best models of management and governance.

To address the foregoing concerns, it is believed that, alongside appropriate
social legislations, a positive step will be to recognize the need to consolidate and
rationalize the different programs and agencies of the government that cater to the
housing and urban development sectors. Of course, this measure should not lose
sight of the deeper and more substantive issues of the sector that require a thorough
and far-ranging understanding of the needs of all the stakeholders, an
understanding which will eventually lead to the formulation and enactment of social
legislations that are adherent to the Constitutional edict of providing decent and
affordable housing to the underprivileged, and institutionalizing urban land reform.

For these reasons, the approval of the proposed bill is sincerely requested.

JitiporL

JOSE CHRISTOPHER Y. BELMONTE


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

16TH Congress
First Regular Session

587

House Bill No.

Introduced by Representative JOSE CHRISTOPHER Y. BELMONTE

AN ACT CREATING THE DEPARTMENT OF HOUSING, PLANNING AND
URBAN DEVELOPMENT, DEFINING ITS MANDATES, POWERS AND
FUNCTIONS, PROVIDING FUNDS THEREFOR AND FOR OTHER PURPOSES.

CHAPTER 1
TITLE, VISION AND POLICIES.

SEC 1. Title, - This Act shall be known as the “Department of Housing, Planning and
Urban Development Act of 2013”.

SEC. 2. Declaration Of Policies- The state shall, by law and for the common good’
undertake, in cooperation with the private, a continuing program of housing and
urban development which shall make available at affordable cost, decent housing
and basic services to under privileged 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.

‘The state shall pursue the realization of a modern, humane, economically-
viable and, environmentally-sustainable society where the urbanization process is
manifest in towns and cities being centers of productive economic activity and is led
by market forces; where urban areas have affordable housing, sustainable physical
and social infrastructure and services facilitated under the democratic and
decentralized system of governance; and where urban areas provide the
opportunities for an improved quality of life and the eradication of poverty.

Poor dwellers in urban or rural areas shall not be evicted nor their dwelling
demolished. Except in accordance with law,


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CHAPTER I
DEFINITION OF TERMS

Sec. 3. Definition of Terms.- As used in this Act, the following terms shall mean:

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) Housing refers to the system and its components which establishes the
residential quality of life, including housing, utilities, access to social services
and other community facilities, security and other aspects related to an
individual's residence.

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.

d) 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.

°)

CHAPTER Ill
DEPARTMENT OF HOUSING, PLANNING AND URBAN DEVELOPMENT

Sec. 4, Creation and Mandates of the Department of Housing, Planning and Urban
Development.- There is hereby created the Department of the Housing, Planning and
Urban Development, hereinafter referred to as 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 and urban development. It shall be the sole and main
planning and policy-making, regulatory, program coordination, and performance
monitoring entity for all housing and urban development concerns, primary
focusing on the access to and affordability of the basic human needs.

SEC. 5. Power and Functions.-‘The Department shall perform the following:

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a) Formulate the national and urban development and housing policy and
strategy that ensures consistency with the Philippine Development Plan to
promote social and economic welfare, in coordination and consultation with
the stakeholders, local government units (LGUs) and other government
agencies;

b) Exercise initiative and assume a lead role in coordinating, supervising, and
integrating all government activities relative to the housing and urban
development;

¢) Formulate housing finance policies to promote the establishment of self-
sustaining, private sector-led housing finance system;

d) 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
serves as central relocation sites for the affected informal settlers;

f) Develop effective and efficient financing programs for housing beneficiaries
and developers;

g) Ensure the Department's participation in sustainable development, climate
change adaption, and disaster risk reduction;

h) Enter into contracts, joint venture agreements, public-private partnerships,
and such other memoranda of agreements or understanding, either domestic
or foreign, under such terms and conditions as the Department may deem
proper and reasonable and the subject to existing laws;

i) Discharge all responsibilities of government that may arise from treaties,
agreements and other commitments on housing and urban development to
which it is a signatory, including the determination of forms of assistance for
housing and urban development to be extended through bilateral or
multilateral loans and/or assistance programs;

j) 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
limitations as are provided under existing laws and regulations;

k) Exercise oversight function, coordinate, monitor and evaluate the policies and
programs of all its attached agencies;

1) Conduct continuing and comprehensive studies and research necessary for
housing and urban development;

m) Provide assistance to build the capacity of LGUs in urban development and
management to strengthen the role of provinces, cities and municipalities as


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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;

Support local government partnerships with communities, civil society
organizations, non-government organizations, and private groups in the
implementation of urban development and renewal projects;

Develop and establish a sector performance monitoring and assessment
mechanism and monitor and independently report on the performance of
national government agencies and LGUs in the housing and urban
development sector to enable continuing improvements in sector policy and
strategy formulation;

Lead in the deposition 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 not been used for
the purposes for which they 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.

Declare an area as Urban Development/Renewal site including the
development and implementation of sub-projects jointly with the concerned
LGUs under a Public-Private Partnership (PPP) arrangement;

Advocate and assist the LGUs in the establishment of Special Housing Fund
(SHE) to be sourced from the proceeds of Real Property Tax (RPT) pegged at
‘one per centum (15) of the assessed value of real property which will be
exclusively used for the housing and urban development and renewal
projects of the LGUs;

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 the
primary tasked to oversee the implementation of housing proclamation
projects;

Effect and oversee a single regulatory system that shall govern all activities
relative to the planning, production, marketing, and management of housing
and urban development projects;

Take over unfinished, incomplete or abandoned licensed real estate
development projects under Presidential Decree No. 957;


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w) Encourage the private sector to address and serve a large part of the country’s
housing needs;

x) Promote, accredit and regulate the use of indigenous material and
technologies in the housing construction;

y) Implement prototype projects, including the power of eminent domain, in
housing and urban development undertakings;

2) 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 ad
penalties for violation thereof;

aa) Register, regulate and provide community development programs for
Homeowners Association (HOAs) and Condominium Units Owners
Association/ Corporation (CUOA/Cs);

bb)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 underprivileged;

cc) 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,
serves as the implementing agencies for housing and urban development
programs; and,

dd) Perform such other related functions as may be mandated by law.

SEC. 6. Composition. The Department shall be composed of the Office of the
Secretary, its immediate staff, the Offices of the Undersecretaries and Assistant
Secretaries with respect to their areas of responsibilities, and their respective staff,
and the Offices directly supporting the Office of the Secretary.

SEC. 7. The Secretary- The Secretary shall:

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 the programs of the government;

©) 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 voting member of the National; Economic
and Development Authority (NEDA) Board and the governing Boards of the
Social Security System (GSS), the Government Service Insurance System
(GSI), the Climate Change System (CCC), the National Risk Reduction
‘Management Council (NDRMMO), and the Philippine Reclamation Authority
(PRA). The Secretary shall be a member of NEDA’s Committee on the
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
RA. No. 6957 as amended, otherwise known as the Build-Operate-Transfer
(BOT) Law.

SEC. 8. The Undersecretaries- Taking into account the requirements of the Department
and subject to the approval of the President, the Secretary shall be assisted by:

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;

©) 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.

SEC. 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 all appointed by the President. The
Undersecretaries shall be career officers.

SEC. 10. Department Bureaus 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;

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b) Community Development;
©) Plans, Policies, Programs and Monitoring Group; and
d) Legal and Support and Services Group.

‘There shall be regional Offices in all the country’s administrative regions. Each
Regional Office shalll be headed by a Regional Director.

In addition to the existing functions of the HUDCC and HLURB, the Regional
Office shall forms such other functions as may be delegated by the Secretary.

SEC. 11. Stafing Pattern- The development of the staffing pattern shalll be based on
an assessment of the personnel requirements of the entire Department as
recommended by the Secretary and as approved by the Department of Budget and
Management (DBM). The remuneration structure if the positions in the staffing
pattern shall strictly conform to the Salary of the Standard Law. as amended.

CHAPTER IV
HUMAN SETTLEMENTS ADJUDICATORY COMMISSION

SEC. 12. Reconstitution of the HLURB as the Human Settlements Adjudicatory
Commission (HSAC) - The HLURB is hereby reconstituted and shall henceforth be
known as the Human Settlements Adjudicatory Commission, hereinafter referred to
as the SHAC, which shall operate as an independent Commission within the
Department.

SEC. 13. Transfer of Adjudicatory Function of the HLURB to the SHAC- The adjudicatory
function of the HLURB is hereby transferred to the HASC.

SEC. 14. Composition and Qualifications of Members- The HSAC shall be composed of
the Secretary 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 which, three
(3) Commissioners shall have experience in urban development _ planning,
sustainable development. Climate change adaptation, and disaster risk reduction;
three {3} shall be nominees of the urban poor and homeowners associations; and
three [3] shall come from the private sector; provided finally, that each Division that
shall be composed of three [3] members shall have one [1] member representing the
urban poor communities or the homeowners associations.

The Commissioners must have been engaged in the practice of the law for the
period of at last five [5] years.

The commissioners shall hold office for six[6] years or until they become
incapacitated to discharge the duties of their office, whichever comes earlier.

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No person who has been convicted of a crime involving moral turpitude shall
be appointed at any time as a Member of the HASC.

SEC.15 Collegiality, Divisions, and Sessions ~The HSAC shall exercise its adjudicatory
and all other powers, functions, and duties through its Divisions. The Divisions of
the HASC shall have exclusive appellate jurisdiction over cases decided by its
Arbiters.

The HASC sitting en banc may, on temporary or emergency basis, allow cases
within the jurisdiction of any Division to be heard and decided by any other
Division whose docket allows the additional workload and such transfer will not
expose litigants to unnecessary additional expense.

The HASC sitting en banc, presided over by the Secretary, shall sit en banc
only for the purposes of promulgating rules and regulations governing the hearing
and disposition of cases before any of its Divisions’ and its Arbiters in its Regional
offices, and in formulating policies effecting its administration and operations.

SEC.16. Decisions and Resolutions.-the concurrence of two [2] Commissioners of a
division shall be necessary for the pronouncement of a judgment 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 Commissioners’ shall designate into the division such
number of additional Commissioners from the other divisions as may be necessary.

The conclusion of a Division on any case 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.

SEC. 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 HSAC sitting en bane may designate any Commissioner who shall have
administrative supervision over the HSAC and its Regional branches and all their
personnel, including the Arbiters.

The HSAC shall be assisted by the Board Secretariat which shall perform such
similar or equivalent functions of the Board Secretary of the HLURB.


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SEC. 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 Sec. 34 of its Act or are sooner removed for cause.

SEC. 19. Jurisdiction - In addition to the existing jurisdiction of HLURB, the Arbiters
shall exercise exclusive jurisdiction to hear and decide cases involving the following:

a) Exclusive original jurisdiction on the following cases involving real estate
properties, subdivisions, and condominiums:

1) Squatting on subdivision lots and condominium units;

2) Eviction and relocation of squatter communities in subdivisions and
condominiums;

3) Disputes involving buyer financing agreements with any financing
institution for condominium or subdivision projects;

4) Easements of right of way in subdivisions;

5) Disputes involving condominium corporations;

6) Disputes between landowners and developers, and between
banks/financing, institutions and developers whenever the interest of
buyers in involved; and,

7) Disputes involving the enforcement of CLUPs.

b) Housing Rights. Exclusive original jurisdiction over violations of

administrative rules and regulations implementing Sections 7, 8, 18 and 28 of
R.A. No. 7279.
The secretary may assume jurisdiction over any complaint or case and decide
the same or certify such case for decision to the HSAC, when authorized by
both Houses of Congress through a resolution, if the controversy involves
massive fraud or unsound business practices of critical socio-economic or
environmental considerations that may have serious potential impact on the
interest of the sector or the general welfare.

SEC. 20. Powers and Authorities of the HSAC - in addition to the adjudicatory powers
given to HLURB, the HSAC shalll exercise the following:

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;

b) To issue writs and orders to execute demolitions or seizures or property in
accordance with its decision or judgment;



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©) To impose administrative fines and/or penalties for violation of R.A. No.
7279, as amended, and other laws implemented by the HSAC, including
pertinent rules and regulations, orders, decisions, and/or rulings: Provided,
That the HSAC may adjust such fines not more than once every three (3)
years; and,

4) To exercise powers granted to the HSAC or to achieve the objectives and
purposes of this Act, and other laws implemented by the HSAC.

SEC. 21. Criminal Prosecution - The criminal prosecution for violation of housing laws
and regulations shall be instituted before criminal Courts having appropriate
jurisdiction.

SEC. 22. The Arbiters - Qualifications and Appointment. The existing HLURB
Arbiters shall be deemed qualified. Additional Arbiters should be a member of the
Philippine Bar for at least three (3) years, with at Ieast two (2) years of experience or
exposure in the field of real and land use development cases.

‘The President, upon the recommendation of the Secretary, shall appoint
Arbiters, as may be necessary, for each administrative region, upon the
recommendation of the HSAC en bane.

‘The HSAC en bane shall have the power to assign the Arbiters to the Regional
Officers.

SEC. 23. The Sheriff. The HSAC shall appoint a Sheriff or such number of Sheriffs in
its Central and Regional branches. The person to be appointed to the position of
sheriff should be a second grade Civil Service eligible and has finished at least two
(2) years of college. The Sheriff shall be responsible for the service and execution of
all writs, summonses, and orders and other processes of the HSAC.

SEC. 24. Appeals. - Decisions, awards, or orders of the Arbiters shall be final and
executor unless appealed to the HSAC 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 primary 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 or coercion,
including graft and corruption;

©) If the appeal is made purely on questions of law; and

d) If serious errors in the findings of facts are raised, which errors would cause
grave or irreparable damage or injury to the appellant.

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Decision of HSAC can be appealed to the Court of Appeals by way of a
Petition for Review within fifteen (15) calendar days from notice of
judgement, award, or order sought to be appealed, pursuant to rule 43 of the
Rules of Court.

SEC 25. Prohibition against Restraining Order of Injunction - No lower Court of the
Philippines shall have jurisdiction to issue any restraining order or writ of
preliminary injunction or permanent injunction-against HSAC or its Arbiters in any
case, dispute, or controversy arising from, necessary to, or in connection with the
application, implementation, enforcement, or interpretation of this Act and other
pertinent laws on housing and on just and humane eviction or demolition
procedures.

SEC 26. Pending Cases - All cases pending in regular Courts arising from 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.

‘CHAPTER V
ATTACHED AGENCIES

SEC 27. Attached Agencies and Corporations - The following agencies and corporations
are hereby attached to the Department for policy and program coordina,tion,
monitoring and evaluation:

a) National Housing Authority (NHA);

b) Home Guaranty Corporation (HGC);

©) National Home Mortgage Finance Corporation (NHMFC)

d) Home Development Mutual Fund (HDMF)

€) Social Housing Finance Corporation (SHFC); and,

f) Human Settlement Adjudicatory Commission (HSAC)

Alll 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.

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‘The appointment of the Board of Directors or Trustees of the attached GOCCs shall
be in accordance with R.A. no. 10149, otherwise known as the GOCC Governance
Act of 2011.

SEC 28. Nature of Attachment ~ The Secretary shall be elected as Chairperson of the
governing Boards of the NHA, HDMF, NHMFC,SHFC, abd HGC.

CHAPTER VI
OTHER PROVISIONS

SEC 29, 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 fro socialized, low cost/economic and middle-income housing shall be
jointly determined by the Department and the 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.

SEC 30. 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, the DENR, the DAR and the DA shall, within one
hundred eighty (180) days from effectivity of this Act, jointly identify agricultural
lands which under R.A> 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 R.A. No. 6657; Provided further, That the
designation of lands for Housing and Urban and rural development purposes shall
neither prejudice the rights of qualified beneficiaries under RA> No, 6657, nor
undermine the protected agricultural areas intended to ensure the attainment of
food security under R.A> No. 8435, otherwise known as the Agriculture and
Fisheries Modernization Act of 1997 (AFMA) and other existing laws; Provided,
further that in the case of lands exempted from conversion though these have been

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approved by the DAR, if these are contested by affected individual or community
beneficiaries, it shall not be allowed to proceed with by horizontal or vertical
development without need for 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.

CHAPTER VII
TRANSITORY PROVISIONS

SEC 31. Absorption of Employees of the Consolidated Agencies - The existing civil
servants of HUDCC and HLURB shalll enjoy security of tenure and shalll be absorbed
by the Department in accordance with their staffing patterns and the selection
process as prescribed under R.A. No. 6656 on the Rules on Government
reorganization, unless the civil servant wants to avail of Section 34 hereof.

SEC 32. Transfer of Assets and Obligations ~ The following dispositive actions shall be
implemented within six (6) months from the effectivity f this Act:
a) The assets, equipment funds, records, and pertinent transactions of HUDCC
and HLURB shalll be transferred to the Department and the HSAC; and;
b) The Department and the HSAC shall cause the creation of additional
positions and augment their budget appropriations a may be needed.

SEC 33. 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, operating systems, and revised budgets of the
Department and the Department and the HSAG, shall be completed within (6) six
months from the effectivity of this Acct, during which existing personnel shall
continue to assume their posts in holdover capacities until new appointments are
issued.

SEC 34. Separation from the Seroice - 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.

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SEC 35. Transfer of functions. - The following functions are hereby transferred as
stipulated hereunder.

a) The regulatory function of the HLURB, including the formulation,
promulgation, and enforcement of rules, standards and guidelines are hereby
transferred to the Department.

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/ZOs shall likewise be transferred to the Department ;
and

©) The registration of incorporation of homeowners associations and
condominium corporations of the HLURB are hereby transferred to the
Department.

d) SEC 36, Transfer of Rights and Assets ~ The Department shall by virtue of this
Act, be subrogated to all rights and assume all the liabilities of the HUDCC
and all other agencies of the government whose functions and powers have
been transferred to it, and all their pertinent funds, records, property, assets,
equipment and such personnel, as may be necessary, including unexpended
portions of their appropriations, except the assets, pertinent funds, records,
property, assets, equipment and personnel of the HLURB.

SEC 37. Formulation of Implementing Rules and Regulations - The Secretary shall
prepare and issue the implementing rules and regulations (IRR) of the Department
within sixty (60) days upon the effectivity of this Act.

CHAPTER VIII
IMPLEMENTING AUTHORITY AND FUNDING

SEC 38. Implementing Authority ~ The Secretary is hereby authorized to undertake the
implementation of the provisions of this ACT and implement the necessary
organizational changes within the specified six (6) month transition period.

SEC 39. 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.

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CHAPTER IX
MISCELLANEOUS PROVISIONS

SEC 40. 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.

SEC 41. 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.

SEC 42. Separability Clause - If, for any reason or reasons, any portion or provision of
this Act shall be held unconstitutional or invalid, the remaining provisions not

affected thereby shall continue to be in full force and effect.

SEC 43. Effectivity - This Act shall take effect fifteen (15) days after its complete
publication in at least two (2) national newspapers of general circulation.

Approved.