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

Sixteenth Congress
First Regular Session

House BILL No, 3495

Introduced by Honorable Luis A. Ferrer 1V.

EXPLANATORY NOTE

This bill seeks to mandate local government units (LGUs) to allocate
for other basic services and livelihood component in favor of the host local
government unit in which their socialized housing or resettlement project is
located , amending for the purpose Republic Act (RA) No. 7279, otherwise
known as the “Urban Development and Housing Act of 1992”.

To lessen the effects of displacement of informal settlers, the Urban
Development and Housing Act mandates the LGUs to implement the
socialized housing or resettlement project within their territory. However,
more often than not, no relocation or resettlement site is available within
their jurisdiction, hence LGUs are compelled to acquire and develop the
socialized housing or resettlement project in another LGU

As provided under RA 7279, LGUs provide for the basic services and
facilities such as potable water, power and electricity, sewerage facilities and
access to primary roads and transportation facilities, among others. Further,
the law likewise mandates the LGUs to plan and to give priority for
implementation the provision for other basic services and facilities such as
health, education, communications, security, recreation, relief and welfare.

Unfortunately, in cases where the socialized housing or resettlement
area is located in another city or municipality, LGUs no longer bother

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themselves in providing for these other basic services. As a consequence,
the LGU where the informal settlers were relocated inherits several socio-
economic problems which strain its finances to the detriment of its
legitimate constituency. The sudden influx of people entails additional
expenses for the LGU in order to be able to deliver basic services such as
education, health, peace and order, among others, for the additional number
of residents, These additional expenses were never considered or taken into
account when the host LGU prepared its own budget.

To solve this problem, this bill seeks to mandate the local government
unit which implemented the socialized housing or resettlement to make
available to the host LGU the allocation for the provisions of such other
basic services and facilities. In addition to the fund sources provided under
Republic Act No. 7279, it is further proposed that the allocation for such
other basic services in the socialized housing or resettlement shall be
sourced from the internal revenue allotment (IRA) of the LGU which
implemented the socialized housing or resettlement.

Under the Local Government Code of 1991, particularly Section 287
thereof, LGUs are mandated to appropriate at least 20% of its IRA for
development projects, Pursuant to this provision, Joint Memorandum
Circular No, 2011-1 dated April 13, 2011 was issued by the Department of
Interior and Local Government (DILG) and the Department of Budget and
Management (DBM), amending for the purpose DILG-DBM_ Joint
Memorandum Circular No. 1 dated September 21, 2005, entitled
“Guidelines on the Appropriation and Utilization of the 20% of the Annual
Internal Revenue Allotment for Development Projects” and DILG
Memorandum Circular No. 2010-138 dated December 2, 2010 entitled
“Use of the 20% Component of the Annual Internal Revenue Allotment
Shares." Based on these guidelines, the 20% of the IRA intended for
development projects may be utilized by the local government unit for
priority programs like social development, purchase and development of
land for relocation or resettlement beneficiaries, including livelihood and
economic assistance, among others.

In view of the foregoing, the passage of this bill is eafhestly sought


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

Sixteenth Congress
First Regular Session

3195

HOUSE BILL NO.

Introduced by Honorable Luis A. Ferrer IV

AN ACT

MANDATING LOCAL GOVERNMENT UNITS TO ALLOCATE
FOR OTHER BASIC SERVICES AND LIVELIHOOD COMPONENT
IN FAVOR OF THE HOST LOCAL GOVERNMENT UNIT IN
WHICH THEIR SOCIALIZED HOUSING OR RESETTLEMENT
PROJECT IS LOCATED, AMENDING FOR THE PURPOSE
REPUBLIC ACT NO. 7279, 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 A new section to be denominated as Section 21-A
is hereby inserted after Section 21 of Republic Act No. 7279 to read as
follows:

“Sec. 21. Basic Services. Socialized housing or

resettlement areas shall be provided by the local government


unit or the National Housing Authority in cooperation with the
private developers and concerned agencies with the following
basic services and facilities:

(a) Potable water;

(b) Power and electricity and an adequate power
distribution system;

(c) Sewerage facilities and an efficient and adequate
solid waste disposal system; and

(d) Access to primary roads and transportation
facilities.

The provisions of other basic services and facilities such
as health, education, communications, security, recreation,
relief and welfare shall be planned and shall be given priority
for implementation by the local government unit and concerned
agencies in cooperation with the private sector and the
beneficiaries themselves.

The local government unit, in coordination with the
concerned national agencies, shall ensure that these basic
services are provided at the most cost-efficient rates, and shall

set as mechanism to coordinate operationally the thrusts,


objectives and activities of other government agencies
concerned with providing basic services to housing projects.”

“SEC. 21-A. MEMORANDUM OF AGREEMENT. - IN
CASE THE SOCIALIZED HOUSING OR RESETTLEMENT
AREA Is LOCATED IN ANOTHER LOCAL
GOVERNMENT UNIT, THE LOCAL GOVERNMENT UNIT
WHICH IMPLEMENTED THE SOCIALIZED HOUSING OR
RESETTLEMENT SHALL, THROUGH A MEMORANDUM
OF AGREEMENT, MAKE AVAILABLE TO THE HOST
LOCAL GOVERNMENT UNIT WHERE THE SOCIALIZED
HOUSING OR RESETTLEMENT WILL BE LOCATED THE
ALLOCATION FOR THE PROVISIONS OF SUCH OTHER
BASIC SERVICES AND FACILITIES MENTIONED IN THE
SECOND PARAGRAPH OF SECTION 21 HEREOF.

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

SOCIALIZED HOUSING 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.”

SEC. 2, Within sixty days after the effectivity of this Act, the
Secretary of Interior and Local Government shall, in coordination with the
Housing and Urban Development Coordinating Council, issue the rules and
regulations necessary for the effective implementation of this Act.

SEC. 3. All laws, executive orders, and rules and regulations, or parts
thereof, inconsistent with the provisions of this Act, are hereby repealed or
modified accordingly.

SEC. 4, This Act shall take effect fifieen (15) days after publication in
the Official Gazette or in two (2) national newspapers of general circulation

Approved,