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

FIFTEENTH CONGRESS
FIRST REGULAR SESSION

HOUSE BILL NO. 2216

Introduced by Rep. Rodolfo G. Valencia
=oy Rep. Ro

EXPLANATORY NOTE

This measure creating the Department of Housing and Urban
Development is highly imperative and indeed long overdue in the rationalization
of the shelter delivery system.

The Department shall serve as the primary agency in the preparation,
integration, coordination, supervision of plans, programs, projects and activities
of the government relative to the urban planning, development and renewal,
including land use and zoning, housing, provision, regulation and finance, as
well as marginal settlement assistance and services.

In this measure the said Department of need not be structured with the
usual full complement of bureaus and service divisions. This is because the
administrative and operational infrastructure is already in place—comprises of
the existing housing agencies and GOCC’s whose responsibilities over finance,
production and regulation are already well-defined; the resources and
capabilities of the private sector are waiting to be harnessed towards a massive
development efforts; and the local governments simply need assistance in
pursuing development efforts in their respective jurisdictions.

There is no compelling need to disturb the existing infrastructure. What
is necessary is a ‘lean and mean” policy-making and overseeing body clothed
with powers sufficient to ensure (1) that the existing housing agencies, local
governments and the private sector operate in a concentrated and holistic
fashions, and (2) that the housing and urban development effort is accorded the
priority it deserves at the highest rungs of the government.

For these purposes, it is imperative to elevate the status of the present
HUDCC into a Department, maintain its present complement of offices and
personnel. This is too institute permanence, stability, self sustainability,
continuing and effectiveness in the government shelter program—in order to


effectively pursue the constitutional mandate on housing and social justice on a
long-term basis.

This may therefore well serve as our most outstanding legacy and our
lasting service to the millions of homeless citizens of the country.

In view of the foregoing, the approval of this bill is earnestly sought.



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

FIFTEENTH CONGRESS
FIRST REGULAR SESSION

HOUSE BILLNo.__2216

Introduced by Rep. Rodolfo G. Valencia

AN ACT
CREATING THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT,
PROVIDING ITS MECHANISMS AND APPROPRIATING FUNDS THEREFOR.

Sec. 1 Title. This Act shall be known as the “Department of Housing and
Urban Development Act of 2010”.

Sec. 2. National Policy. It shall be the policy of the state to promote
social advancement, economic growth and the well-being of the Filipino people
by providing the greatest possible number of homeless Filipino families
adequate opportunities for affordable and decent housing pursuant to the
Constitutional mandate, and ensuring the sound development of the Nation’s
urban communities.

Sec. 3. Creation of the Department of Housing and Urban
Development - To carry out the national policy, there is heby
created a Departmnet of Housing and Urban Development, herein after referred
to as the “Department”. which shall have the following purposes:

a.) to undertake a just and comprehensive solution to the perennialo
housing problem;

b,) to ensure the optimum utilization of the land resources in improving the
quality of life of the Filipino people;

©.) to stimulate private homebuilding activity to levels that will promote and
sustain economic growth and development in terms of expanded
opportunities for employment, business and government revenues;

4.) to promote the orderly development and growth of urban and urbanizing
communities nationwid

e.) to ensure full coordination of various national activities which impact on
housing, land use and urban development; and



f)

Sec.

to ensure that the needs and interests of the nation’s communities and
of the people who live and work therein are accorded full consideration
in the formulation of national and local development plans.

4. Functions and Powers of the Department - The Department

shall have the following exclusive functions and powers which it shall exercise
by itself or through the corporations and agencies placed under its supervision;

a)

b.)

a)

a)

©)

f)

&)

h)

i)

k)

1)

Formulate and implement policies for housing, land use and urban
development;

Develop and undertake a continuing comprehensive and integrated
national housing and urban development program based on properly
identified needs and relevant factors at local and regional levels;
Formulate and implement a continuing Social Housing Program for the
benefit of deserving landless and homeless citizens in urban areas;
Encourage private enterprise to serve as large a part of the nation’s
housing need as it can, and develop the fullest cooperation with private
enterprises in realizing housing goals;

Develop a housing finance system that will promote and ensure the
adequate flow of private funds into the primary and secondary capital
markets for the developmental and end-user financing requirements of
housing and urban development;

Effect a single regulatory system that shall govern all activities relative to
the planning, production, marketing and maintenance of residential and
commercial development projects;

Coordinate and development activities of local governments towards a
more effective housing delivery, optimal land use, and the balanced
growth of urban and urbanizing communities in relation to demographic
factors, productive capacity and natural resource endowment;

Provide technical assistance and information to assist local governments
in developing solutions to problems on housing, community and urban
development and/or renewal;

Adopt and promulgate development standards and guidelines that shall
govern land use plans and zoning ordinance of local governments and
property development of the public and private sectors;

Exercise initiative and, under the directions of the President, assume a
lead role in coordinating the activities of land use and urban
development;

Conduct continuing comprehensive studies, and make available
findings, with respect to the problem of housing, land use and urban
development;

Recommend appropriate legislation in furtherance of the state’s policy
on housing, land use and urban development;

m.) Promulgate, amend and/or repeal such rules and regulations as may be

n)

necessary to complement the intent and purposes of this Act, which
rules and regulations shall, upon approval by the President and upon
due notice, have the force of law;

Discharge all responsibilities of government as may arise from treaties,
agreements and other commitments on housing, land use and urban
development to which it is a signatory, including the determination of


forms of assistance for housing, land use and urban development to be
extended through multilateral or bilateral assistance program;

0.) Enter into contracts, either domestic or foreign, under such terms and
conditions as it may deem proper and reasonable subject to provisions of
law;

P.) Receive, take and hold by bequest, devices, 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 in existing laws and regulations; and convey
such assets, grants or property, invest and reinvest the same under this
provision, and deal with and expand its assets and income is such
manner as will best promote its objectives;

4.) Determine, fix and collect reasonable amounts to be charge as fees
necessary for the effective implementation of all laws, rules and
regulations enforced by the Department;

r,) Adopt rules and regulations for the transaction of its business;

s.) Call on other agencies or instrumentalities of the government and
private entities for cooperation and assistance in the performance of its
functions; and

t) Perform such other acts not inconsistent with this Act as are necessary
to achieve its purposes.

Sec. 5. Officers of the Department - The Department shall be headed
by a secretary, hereinafter referred to as the Secretary, who shall be assisted by
two (2) Undersecretaries. The heads of the corporations and agencies attached
to the Department as enumerated in Section 8 hereof shall concurrently serve
as Assistant Secretaries to the Secretary.

The Undersecretaries and heads of the corporations and agencies
attached to the Department shall be appointed by the President upon
recommendation of the Secretary.

Sec. 6. Organizational Structure of the Department. The Department
may establish such regional offices as may be appropriate, and the Secretary
shall have the authority to organize the internal structure of the Department in
such manner as is necessary for the efficient and effective attainment of its

objectives and purposes as set forth herein, subject to provisions of existing
law.

Sec. 7. Reorganization of the Housing and Urban Development
Council - the Housing and Urban Development Coordinating Council is
hereby renamed Housing and Urban Development Council and placed under
the Department together with its functions, powers, and duties, appropriations,
records, assets, property, and such personnel as may be necessary.

It shall be composed of the Secretary of the Department as Chairman
and the following as Members: the Heads of the corporations and agencies
attached to the Department, the Administrator of the Social Security System,
the General Manager of the Government Service Insurance System and two (2)
Representatives of the private real estate and housing industry.


Subject to the supervision and direction of the Secretary of the
Department, the Council shall serve as the highest policy-making, planning and
monitoring body for all aspects of and matters pertaining to real estate, land
use, housing and urban development, provisions of law to the contrary
notwithstanding.

Sec. 8. Corporations and Agencies Attached to the Department. - The
following corporations and agencies are hereby attached to the Department:

a.) National Home Mortgage Finance Corporation;
b.) Home Guarantee Corporation;

¢.) The Home Development Mutual Fund;

4.) National Housing Authority;

e.) Housing and Land Use Regulatory Board; and
£,) Public Estates Authority

All actions taken by the Government Boards of said corporations and
agencies with respect to investments, allocation and disposition of funds,
issuance of credit instruments, and such matters as may bear directly or
indirectly on policies, programs, rules and regulations adopted by the
Department, shall require prior clearance from the Secretary.

Sec. 9. Reconstitution of the Governing Bodies of Attached
Corporations and Agencies. - The Governing Bodies of the corporations and
agencies attached to the Department are hereby reconstituted as follows,
provisions of law or respective Charters to the contrary notwithstanding:

a.) National home Mortgage Finance Corporation - the Board of
Directors of the National Home Mortgage Finance Corporation shall be
composed of the Secretary of the Department as Chairman, the Chief
Executive Officer of the corporation as Vice Chairman, and the following
as Members: the Administrator of Social of Social Security System, the
General Manager of the Government Service Insurance System, the
Chief Executive Officer of the Home Development Mutual Fund, and two
(2) representatives of private real estate and housing industry.

b.) Home Guaranty Corporation - The Board of Directors of the Home
Guaranty Corporation shall be composed of the Secretary of the
Department as Chairman, the Chief Executive Officer as Vice Chairman,
and the following as Members: the Chief Executive Officer of the
National Home Mortgage Finance Corporation, and two (2)
representatives of the private real estate and housing industry.

c.) Home Development Mutual Fund - The Board of Trustees of the
Home Development Mutual Fund shall be composed of the Secretary of
the Department as Chairman, the Chief Executive Officer of the Mutual
Fund as Vice Chairman, and the following as Members: the Chief
Executive Officer of the Home Insurance Guarantee Corporation and two
(2) representatives of the private real estate and housing industry.


dj

f)

Housing and Land Use Regulatory Board - The Commission Proper of
the Housing and Land Use Regulatory board shall be composed of the
Secretary of the Department as Chairman, and the following as
Members: the four Commissioners of the Board and two (2)
representatives of the private real estate and housing industry as
Members.

National Housing Authority - The Board of Directors of the National
Housing Authority shall be composed of the Secretary of the Department
as Chairman, the General Manager of the Authority as Vice Chairman,
and the following as Members: the Chief Executive Officer of the
National Home Mortgage Finance Corporation and two (2)
representatives of the private real estate and housing industry.

Public Estates Authority - ‘The Public Estates Authority shall be
composed of the Secretary of the Department as Chairman, the Chief
Executive Officer of the Authority as Vice Chairman, and the following as
Members: the Chief Executive Officer of the Home Insurance Guarantee
Corporation , the Chief Executive Officer of the Mutual Fund and two (2)
representatives of the private real estate and housing industry.

In order to ensure the success of government’s shelter program, particularly
the sustainability of funding housing and other shelter related projects by the

HDMF, NHA, NHMFC and other similar government and/or private shelter
entities:

a.)

b.)

)

Sec.

all installment sales of house & lot packages, residential condominium
units, and other similar housing packages funded by or through any of
the aforementioned entities shall be wholly exempt from the coverage
and application of Republic Act 6552 (Maceda Law}.

Cases of forcible entry and unlawful detainer involving said housing
packages shall fall exclusively under the jurisdiction of the Housing
and Land Use Regulatory Board and shall be decided not later than 60
days;

In the event securitization is resorted to by any of the aforementioned
entities in order to achieve sustainability of funding, mortgage
origination, lease-purchase and/or Contract to Sell mechanism may be
availed of; and

Banks, insurance companies and other financing institutions that will
invest at least fifteen percent (15%) of their investible funds in bonds,
securities, and other credit instrument that HDMF, NHA, NHMFC, and
other similar government and/or private shelter entities shall issue in
maximizing its secondary market availment shall enjoy full exemption
from documentary stamps tax (DST) and value added tax (VAT);

Said instruments may be utilized by insurance companies as insurance
reserves, and by banks as statutory and/or liquidity reserves as
required under the Bangko Sentral Act;

10. Urban Planning and Development Activities of Local

Governments - Provisions of law to the contrary notwithstanding, all housing,


urban planning and development activities of local governments, whether or not
covered by special charter, shall be subject to review and final approval of the
Secretary.

Sec. 11. Establishment of a Housing and Urban Development Fund. -
‘There is hereby established a Housing and Urban Development Fund composed
of all available housing program funds currently under the disposition of the
attached corporations and agencies enumerated in Section 8 hereof, all funds
enumerated in Republic Act 7279, Republic Act 7835, Republic Act 6846 and
such other funds as may hereafter be made available for housing and urban
development purposes.

‘The allocation and disposition of the Fund shall be decided upon by the
Secretary upon recommendation of the Housing and Urban Development
Council. No portion of the Fund shall be used for administrative or operational
cost of the Department or any of its attached corporations or agencies.

Sec. 12. Additional Powers of the Housing and Land Use regulatory
Board. - Any provision of law to the contrary notwithstanding, the Housing
and Land Use regulatory Board shall have exclusive original jurisdiction to
adjudicate the following cases:

a.) cases involving unsound and fraudulent real estate business practices;

b.) cases involving claims for refund against project owners, developers,
dealers, brokers, or salesmen;

c.) cases of squatting on lands covered by subdivision plans duly approved
by LGU’s and/or the Housing and Land Use Regulatory Board;

d.) cases of ejectment arrangements under the government's shelter
program;

€.) cases involving easements of right of way;

f.) cases involving disputes between landowners and developers and
between banks and developers whenever the interest of buyers of
residential property is involved;

&) cases involving partial releases of mortgaged titles of development
projects duly approved by LGU’s and /or the Housing and Land Use
Regulatory Board;

h,) cases involving easements of waterways, drainage connections and light
and view; and

i.) cases involving disputes between lessors and lessees of leased or rented
properties under the government shelter program.

Sec. 13. Inter-Agency Committees. - The Secretary may, from time to
time, subject to the approval of the President, initiate the organization of ad-hoc
interagency committees or task forces for purposes of coordinating the
implementation of programs, projects and activities of the Department which

may require complementary effort by other government agencies or
instrumentalities.

Sec. 14. Designation of Private Sector Representatives. - The
representatives of the private real estate and housing industry to the Housing


and Urban Development Council and the corporations and agencies attached to
the Department shall be appointed by the President from among the nominees

of the dominant organization in said industry and shall stay in office until
replaced.

Sec. 15. Per Diems. - The members of the Council and the governing
boards of the corporations and agencies attached to the Department shall
receive an amount not exceeding One Thousand Pesos (P1,000.00) for every
meeting actually attended. Said members, other than the Chief Executive
Officers of the attached corporations and agencies, may designate their
respective alternates whose acts shall be considered as acts of their principals
and who shall have the right to receive the pertinent benefits.

Sec. 16. Implementing Rules and Regulations. - the Secretary is hereby
authorized to issue such orders, rules and regulations as may be necessary to
implement this Act efficiently and effectively; provided, that personnel
movements shall be subject to provisions of existing law.

Sec. 17. Appropriation. - The appropriation for the Housing and Urban
Development Coordinating Council is hereby transferred to and appropriated
for the operation of the Department.

‘The attached corporations and agencies enumerated under Section 8 hereof
shall set aside such percentage of their annual net income as the Secretary may
determine from time to time for any additional operational and administrative
cost of the Department.

Sec. 18. Repealing Clause. - Provisions of laws, decrees, orders,
proclamations, rules, regulations, or parts thereof, which are inconsistent
herewith are hereby repealed, amended, or modified accordingly.

Sec. 19. Separability Clause. - If any portion of this Act is declared
unconstitutional or invalid, the other portions not affected shall continue in full
force and effect

Sec. 20.  Effectivity. - This Act shall take effect after fifteen (15) days

from its publication in the Official Gazette or in two (2) newspapers of national
circulation.

Adopted.