Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

House Bill No. 4245

Introduced by Hon. Francis Gerald Aguinaldo Abaya

EXPLANATORY NOTE

Those who have less in life must have more in law. Social justice is held to be of
such significance by the framers of our constitution that an entire Article was devoted to
its protection. In particular, Article XIII, Section 9 provides that the State shall undertake
a continuing program of urban land reform and housing which will make available decent
housing to underprivileged citizens at affordable cost. Section 10 of the same Article
further provides that urban and rural poor dwellers shall not be evicted, nor their dwellings
demolished, except in accordance with law and in a just and humane manner.

In line with this constitutional mandate, Republic Act No. 7279 or the Urban
Development and Housing act was enacted. However, despite the lapse of more than 20
years, it hardly appears that the social justice sought to be attained was achieved.

This bill seeks to strengthen our country’s housing program by adopting On-Site,
In-City, or Near-City Resettlement. Such will be based on plans submitted by the affected
informal settlers in accordance with the principle of public participation, a fundamental
aspect of democracy.

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

Bx ed
FRANCIS GERALD AGUINA

Representative, Firs

/ABAYA
ict, Cavite


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

House Bill No. 4245

Introduced by Hon. Francis Gerald Aguinaldo Abaya

AN ACT ESTABLISHING AN ON-SITE, IN-CITY OR NEAR-CITY RESETTLEMENT
PROGRAM FOR INFORMAL SETTLER FAMILIES IN ACCORDANCE WITH A
PEOPLE’S PLAN AND MANDATING RELOCATING LOCAL GOVERNMENT
UNITS TO PROVIDE OTHER BASIC SERVICES AND LIVELIHOOD
COMPONENTS IN FAVOR OF THE RECIPIENT LOCAL GOVERNMENT UNIT,
AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 7279, AS AMENDED,
OTHERWISE KNOWN AS THE “URBAN DEVELOPMENT AND HOUSING ACT OF
1992

Be it enacted by the Senate and House of Representatives of the Philippines in
Congress assembled:

SECTION 1. Short Title. — This Act shall be known as the “On-site, In-City or
Near-City Resettlement Act”.

SEC. 2. Amendatory Provisions. - For purposes of this Act, the following
provisions of Republic Act No. 7279, otherwise known as the “Urban Development
and Housing Act of 1992”, are hereby amended as follows:

(a) Section 3 of Republic Act No. 7279 is hereby amended to read as follows:

“SEC. 3. Definition of Terms. — For purposes of this Act:

XXX

“(w) xxx; [and]

“(x) ‘Zonal Improvement Program or ZIP’ refers to the program of the

National Housing Authority of upgrading and improving blighted squatter areas

within the cities and municipalities of Metro Manila pursuant to existing statutes

and pertinent executive issuances[,];
“(Y) ‘ADEQUATE AND GENUINE CONSULTATION’ REFERS TO

THE STANDARD OF CONSULTATION WITH THE AFFECTED INFORMAL

SETTLER FAMILIES (ISFS) WHICH SHALL REQUIRE THE FOLLOWING:

“(1) EFFECTIVE DISSEMINATION OF RELEVANT INFORMATION

AND DOCUMENTS INCLUDING LAND RECORDS, HOUSING BUDGETS,


THE PROPOSED PLAN OR PROJECT, ALTERNATIVE HOUSING
OPTIONS, AND COMPREHENSIVE RESETTLEMENT PLANS;

“(2) REASONABLE TIME FOR THE PUBLIC TO REVIEW, COMMENT
AND OBJECT TO THE PROPOSED PLAN OR PROJECT;

“(3) PROVISION BY THE GOVERNMENT OR NONGOVERNMENT
ORGANIZATIONS OF LEGAL, TECHNICAL, AND OTHER ADVICE TO
AFFECTED PERSONS ON THEIR RIGHTS AND OPTIONS;

“(4) PUBLIC HEARINGS THAT PROVIDE AFFECTED ISFS AND
THEIR ADVOCATES WITH OPPORTUNITIES TO CHALLENGE THE
EVICTION DECISION OR PRESENT ALTERNATIVE PROPOSALS AND TO
ARTICULATE THEIR DEMANDS AND DEVELOPMENT PRIORITIES; AND

“(5) IN CASE NO AGREEMENT IS REACHED ON THE PROPOSALS
OF THE CONCERNED PARTIES, AN INDEPENDENT BODY HAVING
CONSTITUTIONAL AUTHORITY, SUCH AS A COURT OF LAW, SHOULD
MEDIATE, ARBITRATE OR ADJUDICATE AS MAY BE APPROPRIATE;

“(Z) ‘CIVIL SOCIETY ORGANIZATIONS OR CSOS’ REFERS TO
NONGOVERNMENTAL ORGANIZATIONS (NGOs), PEOPLE’S
ORGANIZATIONS (POS), COOPERATIVES, TRADE UNIONS,
PROFESSIONAL ASSOCIATIONS, FAITH-BASED ORGANIZATIONS,
MEDIA GROUPS, INDIGENOUS PEOPLES MOVEMENTS, FOUNDATIONS
AND OTHER CITIZEN’S GROUPS FORMED PRIMARILY FOR SOCIAL AND
ECONOMIC DEVELOPMENT TO PLAN AND MONITOR GOVERNMENT
PROGRAMS AND PROJECTS, ENGAGE IN POLICY DISCUSSIONS, AND
ACTIVELY PARTICIPATE IN COLLABORATIVE ACTIVITIES WITH THE
GOVERNMENT;

“(AA) ‘IN-CITY RESETTLEMENT’ REFERS TO A RELOCATION SITE
WITHIN THE JURISDICTION OF THE CITY WHERE THE AFFECTED ISFS
ARE LIVING;

“(BB) ‘INFORMAL SETTLEMENTS’ REFERS TO:

“(1) RESIDENTIAL AREAS WHERE HOUSING UNITS HAVE BEEN
CONSTRUCTED BY SETTLERS ON LAND WHICH THEY OCCUPY
ILLEGALLY; OR

“(2) UNPLANNED SETTLEMENTS AND AREAS WHERE HOUSING
IS NOT IN COMPLIANCE WITH EXISTING PLANNING AND BUILDING
REGULATIONS;

“(CC) ‘INFORMAL SETTLER FAMILIES’ COLLECTIVELY
REFERRED TO AS ISFS, REFERS TO FAMILIES LIVING IN INFORMAL
SETTLEMENTS AS THE LATTER IS DEFINED IN THIS ACT;

“(DD) ‘NEAR-CITY RESETTLEMENT’ REFERS TO A RELOCATION
SITE IN A CITY OTHER THAN THE CITY OF THE AFFECTED INFORMAL
SETTLEMENTS: PROVIDED, HOWEVER, THAT THE RELOCATION SITE
IS ADJACENT TO THE CITY WHERE THE AFFECTED ISFS HAVE THEIR
SETTLEMENTS;


ORGANIZING, RESEARCH, ACCESS TO RESOURCES, AND
OTHER SIMILAR ACTIVITIES, AS DEFINED UNDER REPUBLIC ACT NO.
8425, OTHERWISE KNOWN AS THE ‘SOCIAL REFORM AND POVERTY
ALLEVIATION ACT’ AND ORGANIZED AND OPERATED EXCLUSIVELY
FOR SCIENTIFIC, RESEARCH, EDUCATIONAL, CHARACTER-BUILDING
AND YOUTH AND SPORTS DEVELOPMENT, HEALTH, SOCIAL
WELFARE, CULTURAL OR CHARITABLE PURPOSES, OR A
COMBINATION THEREOF, AND NO PART OF THE NET INCOME OF
WHICH INURES TO THE BENEFIT OF ANY PRIVATE INDIVIDUAL
PURSUANT TO SECTION 34 (H)(2)(C)(1) OF REPUBLIC ACT NO. 8424, AS
AMENDED, OTHERWISE KNOWN AS THE ‘TAX REFORM ACT OF 1997";

“(FF) ‘OFF-CITY RESETTLEMENT’ REFERS TO A RELOCATION
SITE DEVELOPED OUTSIDE AND NOT ADJACENT TO THE CITY WHERE
THE AFFECTED ISFS HAVE THEIR SETTLEMENTS;

“(GG) ‘PEOPLE'S PLAN’ REFERS TO THE PLAN FORMULATED BY
THE BENEFICIARY-ASSOCIATION, IN COORDINATION WITH THE
PRESIDENTIAL COMMISSION FOR THE URBAN POOR WITH OR
WITHOUT THE SUPPORT OF CSOS, WHICH SHALL CONTAIN A SITE
DEVELOPMENT PLAN, INCLUDING NONPHYSICAL DEVELOPMENT
COMPONENTS SUCH AS SELF-HELP HOUSING COOPERATIVE,
LIVELIHOOD, SELF-HELP DEVELOPMENT, AND CAPABILITY BUILDING;
AND

“(HH) ‘SOCIAL PREPARATION’ REFERS TO THE PROCESS OF
ESTABLISHING SOCIAL, ORGANIZATIONAL, AND INSTITUTIONAL
NORMS AND MECHANISMS. SUCH NORMS AND MECHANISMS WILL: (1)
ENABLE THE SETTLERS TO COPE WITH CHANGES; AND (2) IN
PARTNERSHIP WITH CONCERNED INSTITUTIONS == AND
STAKEHOLDERS, ENCOURAGE THE SETTLERS NOT ONLY TO WORK
AMONG THEMSELVES FOR THE PURPOSE OF DRAWING UP AND
UNDERTAKING THEIR HOUSING RESETTLEMENT PROPOSALS BUT
ALSO TO ACTIVELY AND MEANINGFULLY PARTICIPATE IN HOUSING
RESETTLEMENT PROJECTS UNDERTAKEN IN THEIR BEHALF, THUS
RESOLVING COLLECTIVE ACTION PROBLEMS AMONG COMMUNITY
MEMBERS AND COORDINATION PROBLEMS WITH GOVERNMENT AND
OTHER ENTITIES.”;

(b) Section 23 of the same Act is hereby amended to read as follows:

“SEC. 23. Participation of PROGRAM Beneficiaries OR AFFECTED ISFS,
FORMATION OF BENEFICIARY-ASSOCIATION, AND FORMULATION
AND IMPLEMENTATION OF A PEOPLE’S PLAN. - The local government
Units, in coordination with the Presidential Commission for the Urban Poor and
concerned government agencies, shall afford Program beneficiaries OR
AFFECTED ISFs or their duly designated representatives an opportunity to be
heard and to participate in the decision-making process over matters involving
the protection and promotion of their legitimate collective interests which shall

3


include appropriate documentation and feedback mechanisms. They shall also
be encouraged to organize themselves [and undertake self-help cooperative
housing and other livelihood activities] INTO AN ASSOCIATION FOR
ACCREDITATION AS BENEFICIARIES OR AWARDEES OF OWNERSHIP
RIGHTS UNDER THE RESETTLEMENT PROGRAM, COMMUNITY
MORTGAGE PROGRAM, LAND TENURE ASSISTANCE PROGRAM, AND
OTHER SIMILAR PROGRAMS IN RELATION TO A SOCIALIZED HOUSING
PROJECT ACTUALLY BEING IMPLEMENTED BY THE NATIONAL
GOVERNMENT OR BY THE LOCAL GOVERNMENT UNITS. They shall
assist the government in preventing the incursions of professional squatters
and members of squatting syndicates into their communities.

“In instances when the affected beneficiaries have failed to organize
themselves or form an [alliance] ASSOCIATION within a reasonable period
prior to the implementation of the program or projects affecting them,
consultation between the implementing agency and the affected beneficiaries
shall be conducted with the assistance of the Presidential Commission for the
Urban Poor and the concerned nongovernment organization UNTIL AN
ASSOCIATION IS FORMED IN PLACE.

“THE ASSOCIATION, IN COORDINATION WITH THE PRESIDENTIAL
COMMISSION FOR THE URBAN POOR WITH OR WITHOUT THE
SUPPORT OF CSOS, SHALL FORMULATE A ‘PEOPLE'S PLAN’
THROUGH A PROCESS OF CONSULTATION WHICH SHALL CONTAIN A
SITE DEVELOPMENT PLAN, INCLUDING NONPHYSICAL DEVELOPMENT
COMPONENTS SUCH AS SELF-HELP HOUSING COOPERATIVE,
LIVELIHOOD, SELF-HELP DEVELOPMENT, AND CAPABILITY-BUILDING
TRAININGS.

“THE ASSOCIATION, WITH THE ASSISTANCE OF CSOS AND
GOVERNMENT AGENCIES INCLUDING THE NATIONAL ANTI-POVERTY
COMMISSION (NAPC), PRESIDENTIAL COMMISSION FOR THE URBAN
POOR, NATIONAL HOUSING AUTHORITY, CITY OR MUNICIPAL SOCIAL
WELFARE AND DEVELOPMENT OFFICE, SOCIAL HOUSING FINANCE
CORPORATION, LOCAL GOVERNMENT UNITS, AND OTHER RELEVANT
AGENCIES OF GOVERNMENT, SHALL AGREE ON, DEVELOP, AND
IMPLEMENT THE PEOPLE’S PLAN.

“IN ACCORDANCE WITH THE PROTECTION GUIDELINES PROVIDED
UNDER SECTION 28 OF THIS ACT, A RELOCATION ACTION PLAN SHALL
BE AN INDISPENSABLE COMPONENT OF THE PEOPLE'S PLAN. THE
RELOCATION ACTION PLAN SHALL INCLUDE THE FOLLOWING
OBJECTIVES:

“(A) ENSURE SAFE, AFFORDABLE, DECENT, AND HUMANE
CONDITION OF RELOCATION, INCORPORATING THEREIN
APPROPRIATE DISASTER RISK REDUCTION MANAGEMENT AND
CLIMATE CHANGE ADAPTATION STANDARDS;


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“(B) PROVIDE ADEQUATE SOCIAL PREPARATION; AND

“(C) PREVENT FORCED EVICTION:

PROVIDED, THAT PRIMARY CONSIDERATION SHALL BE GIVEN TO
THE HOUSING FINANCIAL SCHEME SUGGESTED IN THE PEOPLE’S
PLAN.”;

(c) Section 26 of the same Act is hereby amended to read as follows:

“SEC. 26. Urban Renewal and Resettlement. - [This] URBAN RENEWAL
AND RESETTLEMENT shall include the rehabilitation and development of
blighted and slum areas and the resettlement of Program beneficiaries in
accordance with the provisions of this Act. On-site development shall be
implemented [whenever possible] AFTER ADEQUATE AND GENUINE
CONSULTATION WITH THE AFFECTED ISFS, AND IN
ACCORDANCE WITH THE PEOPLE’S PLAN FORMULATED
PURSUANT TO SECTION 23 OF THIS ACT, in order to ensure
minimum movement of occupants of blighted lands and slum areas.

“[The] WHERE DEMOLITION OR EVICTION IS ALLOWED IN THE AREA
OCCUPIED BY THE PROGRAM BENEFICIARIES PURSUANT TO SECTION
28 OF THIS ACT, AND ON-SITE RESETTLEMENT CANNOT BE
UNDERTAKEN BY REASON THEREOF, THE IN-CITY resettlement of the
beneficiaries of the Program from their existing places of occupancy shall be
undertaken only [when on-site development is not feasible and] after
compliance with the procedures laid down in [Section 28 of this Act] THE
SAME SECTION OF THIS ACT AND IN ACCORDANCE WITH THE
PREFERENCE OF THE AFFECTED ISFS AS CONTAINED IN THE
PEOPLE'S PLAN.

“SHOULD IN-CITY RESETTLEMENT NOT BE FEASIBLE, NEAR-CITY
RESETTLEMENT SHALL BE CONSIDERED. OFF-CITY RESETTLEMENT
SHALL ONLY BE RESORTED TO WHEN DIRECTLY REQUESTED BY THE
AFFECTED ISFS THEMSELVES, AND MUST SATISFY THE
REQUIREMENTS OF ADEQUATE AND GENUINE CONSULTATION PRIOR
TO RELOCATION.”; and

(a) Section 29 of the same Act is hereby amended to read as follows:

“SEC. 29. Resettlement. Within two (2) years from the effectivity of this Act,
the local government units, in coordination with the National Housing Authority,
shall implement the relocation and resettlement of persons living in danger
areas such as esteros, railroad tracks, garbage dumps, riverbanks, shorelines,
waterways, and in other public places such as sidewalks, roads, parks, and
playgrounds. The local government unit, in coordination with the National
Housing Authority, shall provide relocation or resettlement sites with basic
services and facilities and access to employment and livelihood opportunities
‘sufficient to meet the basic needs of the affected families.


“IN INSTANCES WHEN THE RELOCATION OR RESETTLEMENT SITE
IS LOCATED IN ANOTHER LOCAL GOVERNMENT UNIT, THE LOCAL
GOVERNMENT UNIT THAT IMPLEMENTS THE RELOCATION OR
RESETTLEMENT AND THE CONCERNED NATIONAL GOVERNMENT
AGENCIES SHALL, THROUGH A MEMORANDUM OF AGREEMENT,
PROVIDE THE OTHER BASIC SERVICES AND FACILITIES ENUMERATED
UNDER SECTION 21 OF THIS ACT TO THE RECIPIENT LOCAL
GOVERNMENT UNIT WHERE THE RELOCATION OR RESETTLEMENT
SITE IS LOCATED.

“THE HOUSING AND URBAN DEVELOPMENT COORDINATING
COUNCIL AND THE DEPARTMENT OF FINANCE — BUREAU OF LOCAL
GOVERNMENT FINANCE SHALL FORMULATE THE IMPLEMENTING
RULES AND REGULATIONS ON THE COST-SHARING MECHANISM
NECESSARY TO FULLY IMPLEMENT THE PROVISION OF SUCH OTHER
BASIC SERVICES AND FACILITIES.

“IN ADDITION TO THE FUNDING SOURCES PROVIDED UNDER
SECTION 42 OF THIS ACT, THE ALLOCATION FOR THE BASIC SERVICES
AND FACILITIES MAY BE TAKEN BY THE LOCAL GOVERNMENT UNIT
IMPLEMENTING THE RELOCATION OR RESETTLEMENT FROM THE
TWENTY PERCENT (20%) OF THE INTERNAL REVENUE ALLOTMENT
APPROPRIATED FOR DEVELOPMENT PROJECTS AS MANDATED
UNDER SECTION 287 OF REPUBLIC ACT NO. 7160, OTHERWISE KNOWN
AS THE ‘LOCAL GOVERNMENT CODE OF 1991’.”

SEC. 3. Implementing Rules and Regulations. - The principles, policies and
provisions of this Act shall be incorporated in the National Shelter Program.

The Housing and Urban Development Coordinating Council and the
Department of the Interior and Local Government, in consultation and coordination
with appropriate government agencies, CSOs, NGOs, representatives from the private
sector, and ISFs, shall promulgate a new set of implementing rules and regulations
within sixty (60) days from the effectivity of this Act. The implementing rules and
regulations shall be consistent with the provisions of this Act, particularly with the
amendments, parameters, and standards introduced to Sections 23, 26, and 29 of the
“Urban Development and Housing Act of 1992”, and shall include the following:

(a) A People’s Plan template to guide ISFs in the development of their own
People’s Plan: Provided, That such template shall be a complete pro forma People’s
Plan: Provided, however, That such a template shall be used to benchmark the
minimum standards in a People’s Plan; and

(b) A guide to effective implementation of the People’s Plan, including details
on the necessity of the issuance of internal memoranda by concerned agencies.

The implementing rules and regulations issued pursuant to this section shall
take effect thirty (30) days after its publication in two (2) national newspapers of
general circulation.


SEC. 4. Repealing Clause. - All laws, decrees, executive orders,
proclamations, rules and regulations, and other issuances, or parts thereof which are
inconsistent with the provisions of this Act are hereby repealed, amended or modified
accordingly.

SEC. 5. Separability Clause. — If, for any reason, any part, section or provision
of this Act is held invalid or unconstitutional, the remaining provisions not affected
thereby shall continue to be in full force and effect.

SEC. 6. Effectivity. - This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in a newspaper of general circulation.

Approved,