FIFTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
SENATE 
Senate Bill No. 691 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
EXPLANATORY NOTE 
Section 2 of the Urban Development and Housing Act of 1992 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. 
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 level 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. 
. 
It is envisioned that this proposed measure will provide an administrative 
machinery at the local level to effect the 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. 
In view of the foregoing, the passage of this bill is earnestly sought. 
Senator 


FIFTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
SENATE 
Senate Bill No. () 91 
i, 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
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 he 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; 
b) 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 d~molitions 
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; 
c) Economic Housing refers to a type of housing project provided to 
moderately low income families with lower interest rates and longer amortization 
periods; 
d) 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; 
e) Non-Government Organization refers to a non-stock, non-profit 
domestic corporation or organization as defined under Section 34 (H) (2) (c) 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; 
g) People s Organization refers to a bonafide association of citizens with 
demonstrated capacity to promote the public interest and with identifiable 
leadership, membership, and structure. 
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 homelots 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 (RA. 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; 
I) 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 Ofice 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; 
c) 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; 
e) 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 €'Os 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; 


c) 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; 
e) 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; 
g) Recommend to the Sanggunian, the sites for socialized housing, 
subject to the requirements prescribed by Section 8 of RA. 7279 and guidelines 
issued for the purpose; 
. 
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 apprpval 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 RA. 
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 afford ability 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 RA. 
7279; and 
I) 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; 
c) 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; 
e) 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; 
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 
I) 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; 
c) 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 concerned; 
d) Loan packages from government financing/lending institutions; 
, 
e) 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. 
b. 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 
ands 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 concerned, 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; 
3) 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; 
5) 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 
Code; and/or Government 
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 ofthe 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 
concerned 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,