Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS

First Regular Session

531

House Bill No.

Introduced by Hon. Rodolfo G. Biazon

EXPLANATORY NOTE

Section 2 of the UDHA provides that the State shall “undertake, in cooperation with
the private sector, a comprehensive and continuing Urban Development and Housing
Program.” To ensure the achievement of the objectives of this Program, Section 6 called for
the formulation of a comprehensive plan for urban and urbanizable areas, Under this
comprehensive plan the following responsibilities were given to the Local Government Units
(LGUs): (1) inventory of lands for socialized housing (Section 7); (2) identification of sites
for socialized housing (Section 8); (3) registration of socialized housing beneficiaries
(Section 17) and; (4) monitoring of compliance by developers of the twenty percent (20%)
balanced housing provision under Section 18.

More than a decade has passed since the passage of the UDHA and we still do not
have a national registry of socialized housing beneficiaries. Many of our LGUs have also
failed to do the three other functions that have been given them under the UDHA.

Clearly, there is a need for a specialized body in our LGUs that shall ensure the
faithful and proactive execution of housing programs at the local level. A void at the local
Tevel in the form of a mechanism to hasten the delivery of shelter services to our people,
especially those who need it most, needs to be filled up.

Also, according to the “World Urbanization Prospects: The 2001 Revision” by the
UN Population Division, half of our country’s population are living in urban centers. With an
urban population growth rate of 5.14 percent per year, the Philippines has one of the highest
rates in the world.

‘A World Bank Study in 2000 projected that the country may have as many as 600
urban centers by 2020. The implication of this is that this high urbanization rate, if not
managed properly, will exert tremendous pressure on the already scarce resources in these
places. This could only lead to a decline in the delivery of quality basic services — housing
being one of them. One only has to look under bridges and the ever growing informal
settlements in danger areas to realize that we are now experiencing this malady.


It is envisioned that this proposed measure will provide an administrative machinery
at the local level to effect the full implementation of the UDHA as well as cope with the fast
pace of urbanization of the country.

Another reason for the passage of this bill is that there is also a need to institutionalize
multi-sectoral representation in local housing initiatives. This is premised on the fact that the
success of these programs will, to a large extent, depend on the direct participation and
cooperation of the stakeholders in the planning and implementation process. By this we mean
that the people who are going to be affected or benefited by such projects should be given a
voice in the planning and implementation of such projects.

Many experts have opined that many of the government’s housing projects have failed
due to the fact that proper consultation among the stakeholders, the beneficiaries included,
were never conducted in the first place. The government conceptualized and provided
relocation sites without consulting the people who were going to be transferred.

In the process, many were displaced of their livelihood; schooling of children was
interrupted; local government units where these informal settlers were going to be relocated
refused them; and many untoward incidents occurred while these people were being
relocated. If we make a survey of those who are presently residing in government housing
projects, it will not be surprising to find out that they are not the original beneficiaries of
these projects.

This situation pervades notwithstanding the fact that under Section 14 of the UDHA,
itis illegal for these beneficiaries to sell, alienate, convey, encumber or lease these properties.
All because of ill-conceived projects that were undertaken without proper consultation.

By giving all the stakeholders a voice and participation in the planning and
implementation of housing initiatives at the local level, these problems would hopefully be
abated.

Lastly, passage of this bill is earnestly sought as it recognizes local autonomy and the
reality that each locality has its own peculiarities and priorities. Thus, it should be in a better
position to address its problems using its available resources at the local level and with some

help from the national government.
Fe BIAZON

Representative
Lone District, Muntinlupa City


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS.

First Regular Session

53i

House Bill No.

Introduced by Hon. Rodolfo G. Biazon

AN ACT
CREATING A LOCAL HOUSING BOARD IN ALL CITIES AND FIRST TO THIRD
CLASS MUNICIPALITIES, PROVIDING FOR ITS POWERS AND FUNCTIONS,
AND FOR OTHER PURPOSES

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 “Local Housing Boards Act.”

Sec. 2. Declaration of Policy. - It is hereby declared the policy of the State to:

a) Promote a just and dynamic social order that will ensure the prosperity and
independence of the nation and free the people from poverty through policies that
provide adequate social services, promote full employment, a rising standard of
living and an improved quality of life for all;

d)

‘Adopt a continuing housing program that will make available at affordable cost,
decent housing and basic services to all especially the underprivileged and
homeless;

c) Protect urban and rural poor dwellers from evictions or demolitions undertaken in
violation of the law;

d

Require all national agencies and offices to conduct periodic consultations with
appropriate local government units (LGUs), non-governmental and people’s
organizations and other concerned sectors of the community before any project or
program is implemented in their respective jurisdictions;


e) Promote and institutionalize the participation of the private sector, non-
government organizations (NGOs) and people’s organization (POs) in the urban
and rural development process; and

f) Promote genuine and meaningful local autonomy to political subdivisions of the
State to enable them to attain their fullest development as self-sufficient
communities and make them more effective partners in the attainment of national
goals.

‘Toward these ends, the State shall provide for a more responsive and accountable
local government structure instituted through a system of decentralization whereby LGUs,
through the creation of local housing boards, shall be given more powers, authority,
responsibilities and resources in the planning and execution of their housing programs.

Sec. 3. Definition of Terms. ~ For purposes of this Act, the following terms or words
and phrases shall mean or be understood as follows:

a) Balanced Housing Requirement refers to the responsibility given to developers of
subdivision projects pursuant to Section 18 of the Urban Development and
Housing Act (UDHA) of 1992;

b)

Comprehensive Land Use Plan refers to the primary and dominant bases for land
use, applying a rational approach for allocating available land resources as
equitably as possible among competing user-groups and for different functions,
consistent with the development and zoning plan of the area and the provisions of
the UDHA;

©

Economic Housing refers to a type of housing project provided to moderately low-
income families with lower interest rates and longer amortization periods;

)

Local Shelter Plan refers to a general framework that effectively provides a step-
by-step procedure by which cities and municipalities could formulate solutions to
their housing problems. It shall include measures to enable cities and
municipalities to plan and implement their specific mandates based on the UDHA,
and to facilitate a linkage with comprehensive land use plans as defined under this
Act;

@)

Non-Government Organization refers to a non-stock, non-profit domestic
corporation or organization as defined under Section 34 (H) (2) () of the Tax
Code organized and operated exclusively for scientific, research, educational,
character building, youth and sports development, health, social welfare, cultural
or charitable purposes, or a combination thereof, no part of the net income of
which inures to the benefit of any private individual;

f) NUDHF refers to the comprehensive plan for urban and urbanizable areas aimed
at achieving the objectives set forth under the UDHA of 1992;

People’s Organization refers to a bona fide association of citizens with
demonstrated capacity to promote the public interest and with identifiable
leadership, membership, and structure.

g)


h) Rural Areas refer to those areas that are not urban areas as defined under this Act;

i

Socialized Housing refers to housing programs and projects covering houses and
lots or home lots only undertaken by the Government or the private sector for the
underprivileged and homeless citizens which shall include sites and services
development, long-term financing, liberalized terms on interest payments, and
such other benefits in accordance with the provisions of the UDHA;

j) UDHA refers to the Urban Development and Housing Act of 1992 or Republic Act
No. 7279 (R.A. No. 7279);

k

Underprivileged and Homeless Rural or Urban Poor Dwellers refer to individuals
or families residing in rural or urban areas whose income or combined household
income falls within the poverty threshold as defined by the National Economic
Development Authority and who do not own housing facilities, and shall include
those who live in makeshift dwelling units and do not enjoy security of land
tenure;

1) Urban Areas refer to all cities regardless of their population density and to
municipalities with a population density of at least five hundred (500) persons per
square kilometer;

m) Local Housing Boards refer to all housing boards in cities and first to third class
municipalities created under this Act; and
0) Local Housing Office refers to the implementing body of the local housing board.

Sec. 4. Local Housing Boards; Creation; Composition. — There shall be created a
Local Housing Board, hereinafter referred to as the Board, in all cities and first to third class
municipalities as classified by the Secretary of Finance: Provided, That fourth and fifth class
municipalities may create their own Local Housing Board if they so desire. The Board shall
be composed of the following:

a)

The City/Municipal Mayor as Chairperson;
b) The Vice Mayor as Vice Chairperson;

@

The Chairperson of the Sangguniang Bayan Committee on Housing and Urban
Development or its equivalent as Member;

d

The City/Municipal Planning and Development Coordinator as Member;

é

The City/Municipal Engineer as Member;

f) A representative of the housing agencies to be designated by the HUDCC as
Member;

g) A representative from a private organization engaged in subdivision and housing
development operating in the city or municipality as Member;


h) A representative from POs operating in the city or municipality as Member:
Provided, That a PO already represented in any local special body may be
concurrently represented in any local housing board; and

i) A representative from NGOs operating in the city or municipality as Member:
Provided, That an NGO already represented in any local special body may be
concurrently represented in any local housing board.

Representatives to the Board from organizations mentioned in the last three
paragraphs of this section shall be selected through the same process as that of filling up the
representatives of the local special bodies.

Sec. 5. Powers and Functions. - Local Housing Boards shall have the following
powers and functions:

a) Formulate, develop, and recommend to the Sanggunian, policies, directives, rules
and regulations, consistent with laws, as it may deem necessary, on the provision
of decent and affordable housing and resettlement areas and on the observance of
the right of the underprivileged and homeless to just and humane evictions and
demolitions;

b) With the assistance of the HUDCC and other concerned government agencies,
prepare a Local Shelter Plan which shall form part of the city/municipal
development plan: Provided, That such plan shall be consistent with the
city/municipal land use plan: Provided further, That public hearings shall be
conducted for the purpose;

°)

Approve preliminary and final subdivision schemes and development plans of
subdivisions and condominiums in accordance with the provisions of Presidential
Decree No. 957, as amended, otherwise known as the Subdivision and
Condominium Buyers’ Protective Decree, and its implementing standards, rules
and regulations concerning subdivisions and condominiums;

d

‘Approve preliminary and final subdivision schemes and development plans of all
economic and socialized housing projects as well as individual or group building
‘occupancy permits covered by Batas Pambansa Big. 220 and its implementing
standards, rules and regulations;

©)

Evaluate and resolve the opposition to the issuance of development permits for
any of the projects stated in the two (2) preceding sub-sections, in accordance with
the said laws and the Rules of Procedure promulgated by the Housing and Land
Use Regulatory Board (HLURB) incident thereto;

f) Designate at least one (1) representative to their respective local development
councils: Provided, That said representative is not already a member of the
council;

Recommend to the Sanggunian, the sites for socialized housing, subject to the
requirements prescribed by Section 8 of R.A. 7279 and guidelines issued for the
purpose;

g)


h)

Advise the Sanggunian on matters of local taxation which may affect the local
government housing program, which includes, but shall not be limited to, the
formulation of a socialized housing tax, idle land tax, and an additional levy on
the real property tax to constitute a Special Socialized Housing Fund;

i) Recommend, for approval of their respective Local Chief Executives (LCEs),
formulated schemes for the acquisition and disposition of lands within their
localities for socialized housing purposes, subject to Section 9 to 14 of R.A. 7279
and its implementing guidelines: Provided, That such schemes shall ensure that
the valuation of a particular land for socialized housing purposes shall be within
the affordability levels of prospective beneficiaries;

j) Recommend for approval of their respective LCEs, partnership arrangements with
the national government on the provision of decent and affordable shelter;

k) Through the local chief executive, submit to the President and the Congress of the
Philippines, an annual report as provided by Section 41 of R.A. 7279; and

Perform such other related functions established by law or ordinance, as necessary
to implement the mandate of local government units under the UDHA.

Sec. 6. Local Housing Office; Creation; Functions. — There shall be created a Local
Housing Office in all cities and municipalities which shall heretofore become a regular office
under the local government unit and serve as the implementing arm of the Board. The Urban
Poor Affairs Office or its equivalent office in cities or municipalities shall be converted into
the Local Housing Office and in addition to its existing functions, shall have the following
additional functions:

a) Assist the Board in the preparation of the local shelter plan;

b) Assist the city/municipal development councils in the formulation of their

respective comprehensive land use plans;

°)

Oversee and coordinate government activities relative to consultation, relocation,
and resettlement of underprivileged and homeless urban or rural poor dwellers in
cases where evictions and demolitions affecting them are necessary and allowed
by existing laws;

d) Ensure that the balanced housing requirements as provided in Section 18 of R.A.
7279 and its implementing rules and regulations are implemented and enforced;

In coordination with other offices within the LGU, monitor the nature and
progress of land development of projects that the Board has approved, as well as
housing construction in the case of house and lot packages, to ensure their
faithfulness to the approved plans and specifications thereof, and impose
appropriate measures to enforce compliance therewith;

é)

f) Conduct an inventory of all lands within their respective localities, and update the
same every three (3) years, in accordance with Section 7 of R.A. 7279 and
guidelines issued for the purpose;


g) Identify the sites for socialized housing, subject to the requirements prescribed
by Section 8 of R.A. 7279 and guidelines issued for the purpose;

h) Ensure the registration of underprivileged and homeless urban or rural dwellers
as socialized housing beneficiaries under Sections 16 and 17 of R.A. 7279:
Provided, That the Local Housing Office shall assume the functions of city or
municipal registration committees as constituted under the implementing rules
and regulations of the same sections;

i) Ensure the prevention of proliferation of professional squatters and squatting
syndicates within its jurisdiction;

h. Ensure the enforcement of laws, policies and programs on housing and shelter as
provided for under laws and such directives, rules and regulations adopted by the
Board;

k)

Assist in the organization of housing and shelter cooperatives, associations or
organizations in establishing linkages with government agencies and NGOs
involved in the promotion and integration of the concept of shelter development
and generation, taking into account the livelihood of the people and other
community activities;

j) Provide technical and other forms of assistance to existing housing associations
or cooperatives to enhance their viability as economic enterprises and social
organizations;

k)

Coordinate with government agencies and instrumentalities performing functions
which may affect housing and urban development; and

1) Perform such other duties and functions as may be prescribed by law or
ordinance.

Sec. 7. Local Housing Officer. — The local housing office shall be headed by a Local
Housing Officer who shall be a career official. No person shall be appointed Local Housing
Officer unless, he is a citizen of the Philippines, a resident of the LGU concerned, of good
moral character, a holder of a college degree either in public administration, urban planning,
civil engineering, economics, development studies or such other related courses. He must
have at least five (5) years’ experience in the case of cities, and three (3) years’ experience in
the case of municipalities, either in housing development projects, organization of housing
associations or cooperatives, management and operation of housing and shelter programs or
such other related activities.

Sec. 8. Generation and Mobilization of Resources. — The Boards are hereby
constituted as the primary entities tasked to advise local development councils on matters of
sourcing of funds for socialized housing. For this purpose, the Boards may recommend the
following schemes for funding socialized housing projects:

a) Build-operate-transfer and other related schemes;

b) Bond flotation and other credit financing arrangements;


©)

Availment of foreign or local grants: Provided, That local housing boards are
hereby authorized to receive foreign and local grants which shall be remitted to
the local treasury, and shall be credited to the socialized housing account of the
local government unit concemed;

d

Loan packages from government financing/lending institutions;

¢) Joint venture projects with private sector groups or developers and with NGOs
and POs; and

f) Pooling of resources between and among LGUs, the private sector, NGOs and
POs.

Sec. 9. Meetings and Quorum. ~The Board shall have its meeting at least once a
month or as often as may be deemed necessary. The presence of the Chairperson or the Vice-
Chairperson and a majority of the members of the Board shall constitute a quorum. Special
meetings may be called by the Chairperson or by a majority of the members when situations
so warrant. Decisions shall be reached by the Board through a simple majority.

A written notice of the date, time, place and agenda of the meeting shall be sent to
each member of the Board at least three (3) days prior to the scheduled meeting or at least
one (1) day, if it is a special meeting.

Sec. 10. Compensation and Remuneration. ~ Members of the Board who are not
government officials or employees shall be entitled to the necessary traveling expenses and
allowances chargeable against the funds of the local housing board concerned, subject to
existing accounting and auditing rules and regulations.

This does not cities and municipalities from mobilizing other possible funding sources
for the compensation and remuneration of members of the Board who are not government
officials or employees.

Sec. 11. Special Housing Trust Fund. ~ Cities and municipalities shall establish a
special account to be called the “Special Housing Trust Fund” to initially establish the local
housing office and as source of funds for the housing programs of the city/municipality for
the underprivileged and homeless. Sources of said trust fund shall come from, but not limited
to, the following:

a) Proceeds generated from the collection of the additional one-half percent (0.5%)
tax on real properties;

b) All funds/monies generated from various sources intended for housing and other
related development programs; and

c) All payments, remittances, accrued interests, penalties, and such other fees
generated from housing related activities.

Sec. 12. Roles of Stakeholders. In order to facilitate the work of the Board, the roles
of the stakeholders shall be as provided for under this section:


a. The Local Government Unit shall:
1) Identify and prioritize areas for housing development;

2

Plan on the total housing need of its constituents;

3) Provide basic information relative to the areas that may be proposed for
issuance of Presidential Proclamation;

4)

Assist in the conduct of verification survey;

5

Monitor and oversee the implementation of the activities in accordance with
their respective work programs; and

6)

Prepare the detailed work program for approved housing projects.
a. Housing and Urban Development Coordinating Council shall:

1) Recommend to the local housing board, options for the development of sites
or disposition schemes to the intended beneficiaries;

2

Process and recommend to the President, idle or underutilized government
lands identified by the local housing board as sites which are suitable for
housing purposes;

3

Solicit assistance from other national government agencies whose functions
and services are necessary in the provision of housing and delivery of basic
services;

4) Through the National Housing Authority (NHA), prepare the Master
Development Plans of the areas identified for housing;

5) Identify and recommend housing projects/programs which can be
implemented and funded through alternative schemes; and
6) Draw-up guidelines as well as Terms of Reference to cover the

implementation of identified priority housing projects.
c. The Presidential Commission for the Urban Poor shall:

1) Monitor all evictions and demolitions, whether extra-judicial or court-
ordered, involving homeless and underprivileged citizens;

2) Require the concerned departments and agencies, including concerned
LGUs, proposing to undertake demolition and eviction activities to secure
first from either the PCUP Central Office, in the case of national projects, or
from the PCUP Regional Office concemed, in the case of regional or local
projects, the checklists, guidelines and compliance certificates on demolition
and eviction prior to the actual implementation thereof and thereafter, submit
to the PCUP the completed checklist, attested to under oath by the proponent


that the provisions of Section 28 of RA 7279 or its implementing rules and
regulations have been complied with;

2.

Based on the completed checklist and subject to further verification, issue
demolition and eviction compliance certificates to proposed demolitions and
evictions involving homeless and underprivileged citizens;

4)

Investigate motu propio or upon complaint by any party, any violation of the
provisions of Section 28 of RA 7279 and its implementing rules and
regulations;

s

File motu proprio or by way of assistance to any aggrieved party, the
appropriate criminal, civil or administrative case against any person or
persons found to have violated the provisions of Section 28 of RA 7279 or
its implementing rules and regulations; and

6) Such other functions as provided for under Executive Order No. 152, series
of 2002.

d, The PO and NGO representatives shall:
1

Assist in the holding of dialogues and consultations with affected families
leading to their full acceptance and support to the program;

2

Provide feedback mechanism to the Local Housing Board and ensure urban
poor participation in the decision-making process;

3

Assist the Local Housing Board in processing applications and documents;

4)

Provide support to the local housing board in the community relations, social
preparations and information disseminations and motivation activities at the
identified housing sites;

5

Actively participate in the drawing up of the development plan for the area;
and

6

Identify pro-poor programs to uplift the socio-economic conditions of the
affected urban poor residents.

Sec. 13. Penalties. ~ Unjustified failure or refusal of a mayor to constitute the local
housing board as created and defined by this Act, shall subject the national and local
government officials and employees responsible for the such omission, misrepresentation,
fraud, or unjustified failure or refusal to:

a) disciplinary action under Book I, Title Two, Chapter 4 of the Local Government
Code; and/or

b) prosecution under the penalty clause of the UDHA.


Sec. 14. Transitory Provisions. — Local chief executives of cities and first to third
class municipalities shall constitute their respective Boards within ninety (90) days from the
promulgation of the implementing rules and regulations of this Act. Local Chief Executives
of fourth to sixth class municipalities are given a minimum of two (2) years from the
promulgation of the implementing rules and regulations of this Act to constitute their Boards.
Failure to constitute the Board within this prescribed period shall be prima facie evidence of
unjustified failure or refusal to do so.

Cities and municipalities with existing local housing and urban development boards
or similar entities are hereby given ninety (90) days from the promulgation of the
implementing rules and regulations of this Act to conform with the provisions of this Act:
Provided, That nothing herein stated shall preclude cities and municipalities from designating
additional functions and/or appropriating additional funds to achieve the objectives of this
Act.

Sec. 15. Implementing Rules and Regulations. ~ Within sixty (60) days after the
approval of this Act, the HUDCC and the DILG, in consultation with the concemed
government agencies, the private sector, POs and NGOs, shall formulate the appropriate rules
and regulations necessary to effectively implement any or all of the provisions of this Act.
Such rules and regulations shall include, among others, guidelines on the following:

a) Resource generation and mobilization for socialized housing purposes;
b) Schemes for local government housing assistance; and

c) Accreditation and selection of representatives of the private sector, NGOs and
POs to the local housing board.

Sec. 16. Repealing Clause. — (a) Sections 447 (a) (2) (x) and 458 (a) (2) (x) of the
Local Government Code are hereby repealed; (b) Section 107 (b) of the Local Government
Code is hereby amended; and (c) All laws, decrees, executive orders, proclamations, rules
and regulations, and other issuances, or part or parts thereof, which are inconsistent with the
provisions of this Act are hereby repealed or modified accordingly.

Sec. 17. Separability Clause.— If for any reason, any provision of this Act is declared
invalid or unconstitutional, the remaining provisions not affected thereby shall continue to be
in force and effect.

Sec. 18. Effectivity Clause. — This Act shall take effect fifteen (15) days after its
publication in at least two (2) newspapers of general circulation.

Approved,