SIXTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
SENAIE 0 
S.No. 1'121 
Introduced by Senator Miriam Defensor Santiago 
EXPLANATORY NOTE 
·,3 SEP 26 P 4 :01 
In his column On The Other Hand dated 6 July 2007, Professor Antonio C. Abaya wrote 
of a program of government he had drafted upon the undersigned's request in 1992. The program 
called for the organization of "student volunteers into production brigades to build housing for 
the underprivileged, and for the housing beneficiaries to be organized into manufacturing 
cooperatives that would fabricate the component housing materials." Today, such a program is 
needed more than ever, given the population growth of people living in depressed urban areas. 
Through the laudable efforts of non-government organizations like Gawad Kalinga and its" 
volunteers who construct homes for the homeless, the first part of the program appears to have 
been met. What remains to be accomplished is the organization of the housing beneficiaries into 
manufacturing cooperatives that will fabricate the component housing materials needed for the 
construction of their homes. 
This bill seeks to establish a national program to provide assistance for the organization 
of housing beneficiaries into manufacturing cooperatives that will fabricate the component 
housing materials needed for the construction of their houses pursuant to a housing program, and 
to ensure that such cooperatives continue to function until the termination of such housing 
program. 


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SIXTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
'13 
SEP 26 P 4 :01 
Introduced by Senator Miriam Defensor Santiago 
AN ACT 
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CREATING A PROGRAM PROVIDING FOR THE ORGANIZATION OF HOUSING 
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BENEFICIARIES INTO MANUFACTURING COOPERATIVES FOR THE FABRICATION 
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OF HOUSING MATERIALS REQUIRED FOR THE CONTRUCTION OF THEIR HOUSES 
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Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Short Title. - This Act shall be known as the "Housing Beneficiaries Act." 
SECTION 2. Declaration of Policy. - It is the policy of the State to promote the general 
welfare of the people. Pursuant to this policy, it shall establish a n;:ttional program providing for 
the organization of housing beneficiaries into manufacturing cooperatives that will fabricate the 
materials needed for the construction of their houses. 
SECTION 3. Definition of Terms. - For purposes of this Act, the term 
(A) 
"Housing beneficiaries" means the underprivileged and homeless citizens under 
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Republic Act No. 7279, otherwise known as the "Urban Development and Housing Act", and to 
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individuals and families residing in the urban and urbanized areas whose income or combined 
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household income falls within the poverty threshold, as defined by the National Economic and 
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Development Authority, and who do not own housing facilities. The term shall include those 
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who live in makeshift dwelling lmits and do not enjoy security of tenure, except professional 
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squatters and squatting syndicates. 
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(B) 
"Housing programs" means those programs and projects covering houses and lots 
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or homelots undertaken by the government or private sector through a non-governmental 
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organization for the underprivileged and homeless citizens which shall include, but shall not be 
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limited to, construction services, financial assistance, and sites and services development. 


(C) 
"Professional squatters" means individuals or groups who occupy lands without 
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the expressed consent of the land owner and who have sufficient income for legitimate housing. 
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The term shall also apply to persons who have previollsly been awarded homelots or housing 
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units by the government but who sold, leased or transfened the same to settle illegally in the 
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same place or in another lIrban area and non-bona fide occupants and intruders oflands reserved 
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for socialized housing. The term shall not apply to individual or groups who simply rent land and 
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housing from professional squatters or squatting syndicates. 
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(D) 
"Sqllatting syndicates" means a group of persons engaged in the business of 
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squatter housing for profit or gain. 
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(E) 
"Department" means the Department of Interior and Local Government. 
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(F) 
"Secretary" means the Secretary ofInterior and Local Government. 
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SECTION 4. Manufacturing Cooperatives. - There is hereby established a program to 
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provide assistance for the organization of housing beneficiaries into manufacturing cooperatives 
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that will fabricate the materials needed for the construction of their houses, pllrsuant to a housing 
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program as defined in Section 3(B). Such program shall be lJilder the direction of the Secretary 
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of Interior and Local Government. The Secretary shall likewise ensure that the program 
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continues to provide assistance to the manufacturing cooperatives until the termination of such 
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housing program. 
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SECTION 5. Implementing Rules and Regulations. - Within ninety (90) days from the 
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promUlgation of this Act, the Secretary shall promulgate the implementing rules and regulations 
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necessary to carry out the provisions of this Act. 
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The Secretary shall submit a report to the House of Representatives and the Senate, 
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prior to, but in no event later than, December thirty-first, in the year following the passage of this 
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Act, and ammally thereafter, which shall include, but not be limited to: 
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(A) 
Financial reports of the project operations established pursuant to this Act; 
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· . . . 
(8) 
An analysis of the project's ability to provide assistance for the organization of 
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housing beneficiaries into manufacturing cooperatives and such cooperatives' continued 
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existence for the duration of the construction project; 
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(C) 
Recommendations 
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the continuation of such program and the need for 
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program expansion, if appropriate; 
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(D) 
Other information deemed necessary. 
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SECTION 6. Funding/or Program. - The funds to be used to implement this Act shall be 
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allocated from the annual appropriations of the Department ofInterior and Local Government. 
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SECTION 7. Separability Clause. - If any provision or part hereof is held invalid or 
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unconstitutional, the remainder of the law or the provision not otherwise affected shall remain 
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valid and sUbsisting. 
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SECTION 8. Repealing Clause. - Any law, presidential decree or issuance, executive 
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order, letter of instruction, administrative order, rule, or regulation contrary to or inconsistent 
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with the provisions of this act is hereby repealed, modified, or amended accordingly. 
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SECTION 9. Effectivity Clause. - This Act shall take effect fifteen (15) days after its 
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publication in at least two (2) newspapers of general circulation. 
Approved, 
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