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

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SEVENTEENTH CONGRESS
First Regular Session

House Bill No. 4124

Introduced by Representative Ron P. Salo

EXPLANATORY NOTE

In 2014, it was reported that Metro Manila had the record of largest homeless
population of any city in the world, with 3.1 million people who are homeless.
Throughout the Philippines, it is estimated that 1.2 million children live on the streets,
and 70,000 of these are in Metro Manila (Homelessness Statistics Website, 2014:
International Business Times, 2014). Huge numbers of families live as informal
settlers in various types of unauthorized housing units with no tenure, in abject and
dehumanizing conditions. Data gathered by the Housing and Urban Development
Coordinating Council (HUDCC) shows that there were about 2.2. million informal
settler families as of 2015.

This alarming increase in the number of homeless people in the country, if not
addressed, will hamper the country's continuing economic growth and development.
It also poses serious threats on peoples’ security and well-being. Informal
settlements, or slum areas, are often overcrowded and lack standard basic services
such as electricity, water, drainage and health services. These settlements are also
usually located in high-risk areas such as railroad tracks, under bridges, beside
dumpsites, flood-prone embankments, and waterways.

The right to adequate housing is a basic human right recognized by
international covenants. The 1948 Universal Declaration of Human Rights and the
1966 International Covenant on Economic, Social and Cultural Rights enshrine
housing as a part of the right to an adequate standard of living. The United Nations
Committee on Economic, Social and Cultural Rights has underscored that the right
to adequate housing should be seen as the right to live somewhere in security,
peace and dignity.

Consistent with these international obligations, the 1987 Philippine
Constitution stresses the State obligation to provide affordable housing program to
the people. Article XIII Section 9 states:

“The State shall, by law, and for the common good, undertake, in

cooperation with the private sector, a continuing program of urban land
reform and housing which will make available at affordable cost, decent

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housing and basic services to underprivileged and homeless citizens in urban
centers and resettlement areas. It shall also promote adequate employment
opportunities to such citizens. In the implementation of such program the
State shall respect the rights of small property owners”

Republic Act No. 7279, otherwise known as the Urban Development and
Housing Act of 1992, is the key legislation which addresses the right to housing of
the homeless and underprivileged Filipino. However, a key issue that was raised
since its implementation is that housing projects, or resettlement sites for informal
settlers, are located in distant areas with no adequate provision for basic services
such as water and electricity. More importantly, people have no access to livelihood
opportunities; hence, they are oftentimes compelled to go back to informal
settlements in urban areas where they at least had a source of income, such as in
the dumpsites where they can scavenge scraps.

In addition, it has been noted that more than two decades after the passage of
Republic Act No. No. 7279, housing is still one of the key dilemmas in the country.
‘The HUDCC estimated that the total housing from 2011 to 2016 backlog could reach
5.7 million. The urgency of the housing problem has been underscored by Vice
President and HUDCC Chairperson Leni Robredo, who urged both the government
and the private sector to work hand in hand in finding a solution to the problem.

"The problem we are faced with is urgent, huge, and difficult. The housing
crisis is a ticking time bomb,” she said.

This bill seeks to establish an on-site, in-city, near-city resettlement program,
and mandating the provision of basic services and livelinood component to
resettlement areas. It aims to improve the quality of life and to fully integrate the
informal settler families (ISFs) into a city's or an urban area's physical,
socioeconomic, and urban governance system, where opportunities are available for
their betterment.

In view of the forgoing, the immediate passage of this bill is earnestly sought.

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KABAYAN PARTY-LIST

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HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

SEVENTEENTH CONGRESS
First Regular Session

4124

House Bill No.

INTRODUCED BY REPRESENTATIVE RON P. SALO

AN ACT
PROVIDING FOR A COMPREHENSIVE HOUSING PROGRAM FOR HOMELESS
AND INFORMAL SETTLER FAMILIES, AMENDING FOR THE PURPOSE
REPUBLIC ACT NO. 7279, AS AMENDED, OTHERWISE KNOWN AS THE
“URBAN DEVELOPMENT AND HOUSING ACT OF 1992”, PROVIDING
APPROPRIATIONS THEREFOR, AND FOR OTHER PURPOSES

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

ARTICLE |
GENERAL PROVISIONS

SECTION 1. Short Title. — This Act shall be known as the “Comprehensive Housing
Program for Homeless and Informal Settler Families Act’.

SEC 2. Declaration of State Policy. — It is hereby declared the policy of the State to
provide affordable housing program to its citizens. It affirms its obligation to uplift the
conditions of the underprivileged and homeless citizens by making available to them
affordable, decent housing that include provision for basic services, in a manner that
upholds their dignity as human beings, and that ensures access to adequate
employment and/or livelihood opportunities.

The State shall endeavor to minimize the displacement of families living in urban
areas as informal settlers, by undertaking, whenever possible, on-site development
of informal settlements, including facilitating their acquisition of legal ownership or
other contractual arrangements guaranteeing security of tenure over socialized
housing units, in the land which they already occupy

Whenever on-site development is not possible, the State shall exert efforts to ensure
that informal settler families are resettled within the municipality or city where they
are currently occupying, near the livelihood activities in which they are currently
engaged. It is hereby declared the policy of the State to prioritize on-site
development, and undertake, only as a last resort, resettlement outside the
municipalities or cities currently being occupied by informal settler families, and

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provided that the resettlement sites are near the current city or municipality they are
occupying

It is further declared a policy of the State to ensure that all affected families and
landowners are consulted before undertaking development and resettlement plans,
and that all instances of relocation are undertaken in a humane manner, avoiding as
much as possible forced eviction and demolition except in the instances and under
the conditions provided by this Act.

SEC. 3. Definition of Terms. — For Purposes of this Act, the following terms shall
be defined as follows:

a) Informal settlements refers to
i. Residential areas where housing units have been constructed by
settlers on land which they occupy illegally; or
ii, Unplanned settlements and areas where housing is not in compliance
with existing planning and building regulations;

b) Informal settler families collectively referred to as ISFs, refers to families
living in informal settlements;

¢

On-site development refers to the process of upgrading and rehabilitation of
informal settlements, with a view to minimizing displacement of dwellers in
said areas, and with provision for basic services and access to
‘employmentlivelihood opportunities;

dj

In-city resettlement refers to a relocation site within the jurisdiction of the city
where the affected ISFs are living:

e) 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;

f) Blighted lands refers to the areas where the structures are dilapidated,
obsolete and unsanitary, tending to depreciate the value of the land and
prevent normal development and use of the area.

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;

h)

Idle lands refers to non-agricultural lands in urban and urbanized areas on
which no improvements have been made by the owner, as certified by the
city, municipal or provincial assessor;

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i) Security of tenure refers to the degree of protection afforded to qualified
beneficiaries against infringement or unjust reasonable and arbitrary eviction
or disposition, by virtue of the right of ownership, usufruct, lease agreement,
and other contractual arrangements;

j) Socialized housing refers to housing programs and projects covering houses
and lots or home lots 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 this
Act;

k) Small property owners refers to those whose only real property consists of
residential lands not exceeding three hundred square meters (300 sq.m.) in
highly urbanized cities and eight hundred square meters (800 sq.m.) in other
urban areas;

1) Underprivileged and homeless citizens refers to individuals or families
who: (i) have a combined household income that falls within the poverty
threshold as defined by the National Economic and Development Authority;
and (ii) do not own any housing units. This shall include individuals or families
who are currently occupying makeshift dwellings in public or private lands
which they do not own, or over which they do not have security of tenure.

m) Unregistered or abandoned lands refers to lands in urban and urbanizable
areas which are not registered with the Register of Deeds, or with the city or
municipal assessor's office concemed, or which are uninhabited by the owner
and have not been developed or devoted for any useful purpose, or appears
unutilized for a period of three (3) consecutive years immediately prior to the
issuance and receipt of publication of notice of acquisition by the Government
as provided under this Act. It does not include land which has been
abandoned by reason of force majeure or any other fortuitous event
Provided, that prior to such event, such land was previously used for some
useful or economic purpose;

n) Urban areas refers to all cities regardless of their population density and to
municipalities with a population density of at least five hundred (500) persons
per square kilometers;

0) Urbanizable areas refers to sites and lands which, considering present
characteristics and prevailing conditions, display marked and great potential
of becoming urban areas within the period of five (5) years; and

p) Usufruct refers to the legal right to use and enjoy land or any property
belonging to another. Usufructuary arrangements under this Act shall be
formulated by the local government units concerned or the National Housing
Authority, as the case may be, with the suppletory application of the
provisions of the new Civil Code on usufruct.

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SEC. 4, On-Site Development, In-City or Near-City Resettlement. — Rehabilitation
and development of informal settlements shall be undertaken whenever possible,
based on the feasibility for on-site development of the lands being occupied, as
identified in Section 9 of this Act. On-site development shall be implemented in
order to ensure minimum resettlement or movement of informal settler families
(ISFs) from their existing places of occupancy.

Where ISFs are living in government lands which is not anymore to be used for any
purpose, on-site development is necessary. If the ISFs are living in private lands, the
National Housing Authority (NHA) or the local government units (LGU) shall
negotiate with the private landowners to acquire the lands for the ISFs, and where
feasible, implement on-site development.

In cases where on-site development cannot be undertaken, such as those
enumerated in Section 36 of this Act, in-city resettlement of the ISFs from their
existing places of occupancy shall be undertaken after compliance with the
procedures laid down in the same section of this Act.

Should in-city resettlement not be feasible, near-city resettlement shall be
considered. This shall only be resorted to when resettlement within the area cannot
be undertaken, such as when there is no available land within the city, or when
directly requested by the affected ISFs themselves.

SEC. 5. Immediate Resettlement of Peopie Living in Dangerous Areas. — Within
two (2) years from the effectivity of this act, the LGUs, in coordination with the NHA,
shall immediately implement and provide in-city relocation and resettlement of
people within their jurisdictions who are living in dangerous areas such as ‘esferos’,
railroad tracks, garbage dumps, riverbanks, shorelines, waterways, and in other
Public places such as sidewalks, roads, parks, and playgrounds.

SEC. 6. Minimum Requirements for On-Site Development, In-City or Near-City
Resettlement Sites. — In undertaking on-site development, in-city, or near-city
resettlement, the LGU, in coordination with the NHA, shall ensure the availability of
the following basic services and facilities:

a) Potable water;
b) Power and electricity and an adequate power distribution system;

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

d) Access to primary roads and transportation facilities.
The provision 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 LGU and concerned government
agencies in cooperation with the private sector and the ISF-beneficiaries themselves.

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For near-city resettlements, the LGU where the ISFs originated, that is, the LGU
implementing the resettlement plan, in cooperation with the concerned national
government agencies providing basic services, shall provide the basic services and
facilities mentioned in the immediately preceding paragraph, to the recipient LGU
where the relocation or resettlement site is located, through a memorandum of
agreement

The LGU concerned, in coordination with the concerned government agencies, shall
ensure that these basic services are provided at the most cost efficient rates, and
shall set a mechanism to coordinate operationally the thrusts, objectives and
activities of other government agencies concerned with providing basic services to
housing projects.

SEC. 7. Livelihood Component. - To the extent possible, resettlement sites shall
be located near areas where employment opportunities are accessible. The
government agencies tasked with the development of livelihood programs and grant
of livelihood loans shall give priority to the ISFs.

ARTICLE Il
INVENTORY, IDENTIFICATION AND DISPOSITION OF LANDS

SEC. 8. Inventory of Lands. - Within one (1) year from the effectivity of this Act, all
city and municipal governments shall conduct an inventory of all lands and
improvements thereon within their respective localities. The inventory shall include
the following:

a) Residential lands;

b) Government-owned lands, whether owned by the National Government or any
of its subdivisions, instrumentalities, or agencies, including government-
owned or-controlied corporations and their subsidiaries:

c) Unregistered or abandoned and idle lands; and

4) Other lands.

In conducting the inventory, the LGU concerned, in coordination with the Housing
and Land Use Regulatory Board (HLURB) and with the assistance of other
concerned government agencies, shall indicate the type of land use and the degree
of land utilization, and other data or information necessary to carry out the purposes
of this Act.

For planning purposes, the Housing and Urban Development Coordinating Council
(HUDCC) shall be furnished by each LGU a copy of its inventory which shall be
updated every three (3) years.

SEC. 9. Identification of Sites for On-site Development, In-City, or Near-City
Resettlement. — After the inventory, the LGUs, in coordination with the NHA, the
HLURB, the National Mapping Resource Information Authority, and the Land
Management Bureau, shall identify lands for on-site development, in-city or near-city
resettlement areas, for the immediate and future needs of the underprivileged and
homeless in the urban areas, taking into consideration the degree of availability of

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basic services and facilities, the accessibility and proximity of job sites and other
economic opportunities, and the actual number of registered beneficiaries, as well as
other technical feasibility issues such as proximity to earthquake and flood-prone
areas.

Government-owned lands under paragraph (b) of Section 8 which have not been
used for the purpose for which they have been reserved or set aside for the past ten
(10) years from the effectivity of this Act and identified as suitable for socialized
housing, shall immediately be transferred to the NHA subject to the approval of the
President of the Philippines or by the LGU concerned, as the case may be, for
proper disposition in accordance with this Act.

SEC. 10. Disposition of Lands for Socialized Housing. — The NHA, with respect
to lands belonging to the National Government, and the LGU, with respect to other
lands within their respective jurisdiction, shall coordinate with each other to formulate
and make available various alternative schemes for the disposition of lands to the
\SF-beneficiaries. These schemes shall not be limited to those involving transfer of
ownership in fee simple but shall include usufruct, lease with option to purchase, or
such other variations as the LGUs or the NHA may deem most expedient in carrying
‘out the purposes of this Act.

SEC. 11. Priorities in the Acquisition of Lands. — Lands for socialized housing
shall be acquired in the following order:

a) Those owned by the Government or any of its subdivisions, instrumentalities,
or agencies, including government-owned or - controlled corporations and
their subsidiaries;

b) Alienable lands of the public domain;

¢) Unregistered or abandoned and idle lands;

4) Those within the declared Areas for Priority Development, Zonal Improvement

Program sites, and Slum Improvement and Resettlement Program sites which

have not yet been acquired;

Bagong Lipunan Improvement of Sites and Services or BLISS sites which

have not yet been acquired; and

f)_ Privately-owned lands.

e)

SEC. 12. Modes of Land Acquisition. - The modes of acquiring lands for purposes
of this Act shall include, among others, community mortgage, land swapping, land
assembly or consolidation, land banking, donation to the Government, joint-venture
agreement, negotiated purchase, and expropriation: Provided, however, that
expropriation shall be resorted to only when other modes of acquisition have been
exhausted: Provided, further, that where expropriation is resorted to, parcels of land
owned by small property owners shall be exempted for purposes of this Act:
Provided, finally, that abandoned property, as herein defined, shall be reverted and
escheated to the State in a proceeding analogous to the procedure laid down in Rule
91 of the Rules of Court.

SEC. 13. Valuation of Lands. - Equitable land valuation guidelines for socialized
housing shall be set by the Department of Finance on the basis of the market value

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reflected in the zonal valuation, or in its absence, on the latest real property tax
declaration

For sites already occupied by qualified ISFs, the Department of Finance shall factor
into the valuation the blighted status of the lands as certified by the LGU or the NHA.

SEC. 14, Rights of Private Landowners. — Where the lands illegally occupied by
informal settlers are owned by private landowners, the NHA or the LGU shall
conduct consultations and negotiation with the private landowners for the purchase
of the properties being occupied. Where the private landowners are willing to sell
their properties, the NHA or the LGU shall formulate the specific terms and
arrangements for the purchase of the properties, ensuring that the said terms and
arrangements shall not be prejudicial to the rights and interests of the private
landowners; Provided, that the private landowners shall be paid the assessed value
of their properties, and that the payment shall be made within a specific period as
agreed upon by the parties, but in no case shall it exceed ten (10) years from the
execution of the Deed of Sale. Said sale by landowners to the NHA or LGU shall be
exempt from capital gains tax and documentary stamp tax.

ARTICLE Ill
FORMULATION OF ON-SITE DEVELOPMENT, IN-CITY OR NEAR-CITY,
RESETTLEMENT PLANS

SEC. 15. Participation of Beneficiaries. — The LGUs, in coordination with the
Presidential Commission for the Urban Poor (PCUP) and other concerned
government agencies and civil society organizations (CSOs), shall afford affected
ISFs or beneficiaries or their duly designated representatives an opportunity to be
heard and to participate in the formulation of on-site development plans or
resettlement plans to ensure the protection and promotion of their interests, through,
but not limited to, adequate consultations, documentation and feedback
mechanisms.

SEC. 16. Formation of Beneficiary-Associations. — Beneficiaries shall be
encouraged to organize themselves into an association for accreditation as
beneficiaries or awardees of ownership rights under the resettlement plans,
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 LGUs.

In instances where the affected beneficiaries have failed to organize themselves or
to form an association within a reasonable period prior to the implementation of the
plans or projects affecting them, consultation between the LGU and the affected
beneficiaries shall be conducted with the assistance of the PCUP and the concerned
CSOs until an association is formed in place.

SEC. 17. Formulation of the On-Site Development, In-City or Near-City
Resettlement Plans. - The beneficiary associations shall work closely with the
LGUs in the development and implementation of the on-site development plans, or
in-city or near-city resettlement plans, as the case may be. The said plans shall be

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formulated with the assistance of CSOs and relevant government agencies including
the PCUP, NHA, HLURB, National Anti-Poverty Commission (NAPC), Municipal
Social Welfare and Development Offices, Social Housing Finance Corporation, and
National Disaster Risk Reduction and Management Council

The On-Site Development, In-City or Near-City Resettlement Plans shall include the
following objectives:

a) Ensure safe, affordable, decent, and humane conditions of relocation;

b) Ensure that on-site development or in-city, or near-city resettlements, shall
include provision for basic services;

c) Ensure access of relocated families to employmentllivelihood opportunities;

d) Ensure that socialized housing is implemented based on the needs and

financial capacity of the beneficiaries, and appropriate to the location;

Ensure incorporation of appropriate disaster risk reduction management and

climate change adaptation standards;

f) Prevent forced eviction, and where demolition or eviction is allowed, that

these are implemented strictly following the limitations enumerated in Section

36 of this Act;

Such other provisions as discussed and agreed upon during consultations.

e

g

SEC. 18. Suitability of the Resettlement Plans to the Locality. - The standards
for the resettlement areas must be decent and consistent with enhancing the dignity
of the human person, and must be appropriate to the area. In a highly urban
resettlement area, multi-storey condominium type resettlement housing is
appropriate. ISFs that have an old member, children, and have a member with
disability, shall occupy the ground floor of the resettlement building and shall be
given the right of first refusal

ARTICLE IV
SOCIALIZED HOUSING

SEC. 19. Socialized Housing. — As defined under Section 3 of this Act and Section
15 of Republic Act No. 7279, socialized housing is hereby reiterated as the
government's primary strategy in providing shelter for the underprivileged and
homeless.

SEC. 20. Payment Scheme for Socialized Housing. — The payment scheme shall
be determined by the LGU, in coordination with HUDCC and the Social Housing
Finance Corporation's (SHFC) maximum loan packages under its Community
Mortgage Program (CMP)

The amortization by the beneficiaries should not exceed 30 years with an interest
rate of not more than 4.5% per annum.

SEC. 21. Transfer of Ownership. — In the event the beneficiary dies before full

ownership of the land is vested on him/her, transfer to his/her heirs shall take place
only upon their assumption of his/her outstanding obligations. In case of failure by

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the heirs to assume such obligations, the land shall revert to the Government for
disposition in accordance with this Act.

SEC. 22. Usufruct as an Alternative Mode of Acquiring Security of Tenure. —
Whenever possible, the NHA, with respect to lands belonging to the National
Government, and the LGU, with respect to lands within their respective jurisdiction,
shall explore usufruct as an alternative mode of providing security of housing tenure
to the beneficiaries, especially where beneficiaries could not afford to buy the land.
The LGU or the NHA shall formulate the specific usufructuary arrangements that are
most beneficial to the beneficiaries.

SEC 23. Eligibility Criteria for Beneficiaries. - To qualify for the socialized
housing program, a beneficiary must be:

a) A Filipino citizen;

b) An underprivileged and homeless citizen, as defined in Section 3 (|) of this
Act:

Must not have been a beneficiary of any government housing program except
on leasehold or rental arrangements;

Must not be a professional squatter or a member of squatting syndicates as
defined under Section 3 (m) of Republic Act No. 7279; and

e) Must not have violated Sections 33, 34, and 35 of this Act.

°)

d

SEC. 24. Registration of Beneficiaries. — The LGUs, in coordination with the
HUDCC, shall design a system for the registration of qualified beneficiaries of
socialized housing. Within one (1) year from the effectivity of this Act, the concerned
LGUs, through the Committee on Selection of Beneficiaries, shall identify and
register all beneficiaries within their respective localities

SEC. 25. Committee on Selection of Beneficiaries. - To assist the LGUs in
identifying and registering beneficiaries, and to ensure that all qualified,
underprivileged, and homeless citizens will have the opportunity to benefit from
socialized housing, there is hereby created in the City/Municipality implementing the
resettlement plan a Committee on Selection of Beneficiaries. This Committee will be
especially dedicated to:

a

Compiling the lists of affected ISFs and validating these through appropriate
methods such, as but not limited to, consultations;

b) Reviewing the qualifications and eligibility of the prospective beneficiaries;

¢) Assisting the qualified beneficiaries to fulfil the requirements for registration;
and

d) Performing such other acts necessary to implement the provisions of this Act.

The Committee will meet as often as necessary to perform its functions

SEC. 26. Composition. - The composition of the Committee on Selection of
Beneficiaries shall be as follows:

a) The Local Social Welfare Officer, as chairperson;

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b) The urban poor sectoral representative in the Sangguniang
Bayan/Sangguniang Panlungsod;

One (1) representative from the Presidential Commission for the Urban Poor
(PCUP);

Two (2) representatives from the beneficiary association established under
Section 16 of this Act; and

One (1) representative from a civil society organization working with and for
the interest of the ISFs.

°)

)

e)

SEC. 27. Compensation. - The public officials or employees from the LGUs and
from the national government shall perform their duties as such without
compensation or remuneration, subject to reasonable per diem allowances as
approved by the Committee and subject to existing rules and regulations of the
Department of Budget and Management. Members thereof who are not government
officials or employees shall be entitled to necessary traveling expenses, per diem
and representation allowances chargeable against the funds of the LGU, as
approved by the Committee, subject to existing rules and regulations of the
Department of Budget and Management (DBM).

SEC. 28. Incentives for Private Sector Participating in Socialized Housing. —
Opportunities for adequate consultation shall be accorded to the private sector
involved in socialized housing project pursuant to this Act.

To encourage greater participation of the private sector in socialized housing, the
following incentives shall be extended to the private sectors:

a) Reduction and simplification of qualification and accreditation requirements for
participating private developers;

b) Creation of one-stop offices in the different regions of the country for the
processing, approval and issuance of clearances, permits and licenses:
Provided, that clearances, permits and licenses shall be issued within ninety
(90) days from the date of submission of all requirements by the participating
private developers;

©) Simplification of financing procedures; and

d) Exemption from the payment of the following:

Project-related income taxes;

Capital gains tax on raw lands used for the project;

iii, Value-added tax for the project contractor concerned;

iv. Transfer tax for both raw completed projects; and

v. Donor's tax for lands certified by the LGUs to have been donated to
‘socialized housing purposes.

Provided, that upon application for exemption, the socialized housing development
plan has already been approved by the appropriate government agencies
concerned: Provided, further, that all the savings acquired by virtue of this provision
shall accrue in favor of the beneficiaries.

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Appropriate implementing guidelines shall be prepared by the Department of
Finance, in consultation with the HUDCC, for the proper implementation of the tax
exemption mentioned in this section within one (1) year after the approval of this Act.

ARTICLE V
ROLE OF LGUS AND GOVERNMENT AGENCIES

SEC. 29. Role of Local Government Units. - The LGUs shall be charged with the
implementation of this Act in their respective localities, in coordination with the NHA.

It is the obligation of the LGUs to prevent the construction of any kind of illegal
dwelling units or structures within their respective localities. The local chief executive
of any LGU which allows, abets or otherwise tolerates the construction of any
structure in violation of this Act shall be liable to administrative sanctions under
existing laws.

SEC. 30. Role of the National Housing Authority. - The NHA, as the primary
government agency in charge of providing housing for the underprivileged and
homeless citizens, shall provide technical and other forms of assistance in the
implementation of the LGUs’ on-site development or resettlement plans, with the
objective of augmenting and enhancing local government capabilities in the provision
of housing benefits to their constituents.

SEC. 31. Role of the Housing and Urban Development Coordinating Council. ~
The HUDCC, as the overall coordinator of all government policies, plans, and
programs for the housing sector, shall provide LGUs with necessary support such
as, but not limited to:

a) Formulation of standards and guidelines as well as providing technical
support in the preparation of the LGUs’ land use plans;

Assistance in obtaining funds and other resources needed in the resettlement
and socialized housing programs within their jurisdiction; and

In coordination with the National Economic and Development Authority and
the Philippine Statistics Authority, provide data and information for forward-
planning by LGUs in their areas, particularly on projections as to the
population and development trends in their localities and the corresponding
investment programs needed to provide appropriate types and levels of
infrastructure, utilities, services and land use patterns.

b)

°)

SEC. 32. Role of the Housing and Land Use Regulatory Board. - The HLURB,
as the lead agency in the provision of technical assistance to LGUs in the
preparation of comprehensive land use plans; regulation of housing, and land
development, shall provide support to the LGUs in conducting inventory of lands,
preparing their land use plans, housing and land development plans.

SEC. 33. Role of the Socialized Housing Finance Corporation. - The SHFC shall

administer the Community Mortgage Program under this Act and promulgate rules
and regulations necessary to carry out the provisions of this Act

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ARTICLE VI
PROHIBITIONS AND PENALTIES

SEC. 34. Limitations and Penalties on the Disposition of Lands Covered Under
this Act. - No land for socialized housing, including improvements or rights thereon,
shall be sold, alienated, conveyed, encumbered or leased by any beneficiaries as
determined by the government agency concerned. Should the beneficiary unlawfully
sell, transfer, or otherwise dispose of his/her lot or any right thereon, the transaction
shall be null and void. He/She shall also lose his/her right to the land, forfeit the total
amortization paid thereon, and shall be barred from the benefits under this Act for a
period of ten (10) years from the date of violation

SEC. 35. Penalty for Abandoning Resettlement Sites. - In cases where the
beneficiary ISFs abandon and depart the resettlement site and once again illegally
occupy informal settlements or any other residential area, housing units, or
government structures, they shall lose their right to the land, forfeit the total
amortization paid thereon, and shall be barred from the benefits under this Act for a
period of ten (10) years from the date of violation

SEC. 36. Penalty for illegal Occupants of Socialized Housing. — Non-bona fide
occupants and intruders of lands reserved for socialized housing, such as persons
who are not duly registered beneficiaries of socialized housing as provided under
this Act, who occupy any portion of the resettlement sites, or allow anyone else to
occupy such portions whether by selling or leasing or any other contractual
arrangements, shall be imposed the penalty of six (6) years imprisonment or a fine
of not less than Sixty Thousand Pesos (P60,000.00) but not more than One Hundred
Thousand Pesos (P100,000), or both, at the discretion of the court. Any person or
group identified as violating the provisions of this Section shall be summarily evicted
and their dwellings or structures demolished, and shall be disqualified to avail of the
benefits of the Program. A public official who tolerates or abets the commission of
the abovementioned acts shall be dealt with in accordance with existing laws.

SEC. 37. Eviction and Demolition. — Eviction or demolition as a practice shall be
discouraged. Eviction or demolition shall be allowed only under the following
circumstances, provided that all the limitations provided below shall be strictly
complied with.

a) When persons or entities occupy danger areas such as esteros, railroad
tracks, garbage dumps, riverbanks, shorelines, waterways, and other public
places such as sidewalks, roads, parks, and playgrounds;

b) When government infrastructure projects with available funding are about to
be implemented; or

c) When there is a court order for eviction and demolition.

In the execution of eviction or demolition orders, the following shall be mandatory:

i. Notice upon the effected persons or entities at least thirty (30) days prior to
the date of eviction or demolition;

Adequate relocation, whether temporary or permanent. In cases of eviction
and demolition pursuant to a court order involving underprivileged and

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homeless citizens, relocation shall be undertaken by the LGU and the
NHA, with the assistance of other government agencies, within forty-five
(45) days from service of notice of final judgment by the court, after which
period the said order shall be executed, Should relocation not be possible
within the said period, financial assistance in the amount equivalent to the
prevailing minimum daily wage multiplied by sixty (60) days shall be
‘extended to the affected families by the LGU concerned;

ili, Adequate consultations on the matter of resettlement with the duly
designated representatives of the families to be resettled and the affected
communities in the areas where they are to be relocated;

iv. Presence of local government officials or their representatives during
eviction or demolition;

v. Execution of eviction or demolition only during regular office hours from

Mondays to Fridays and during good weather, unless the affected families

consent otherwise;

No use of heavy equipment for demolition except for structures that are

permanent and of concrete materials;

Proper identification of all persons taking part in the demolition; and

vili. Proper uniforms for members of the Philippine National Police who shall
‘occupy the first line of law enforcement and observe proper disturbance
control procedures.

vi

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ARTICLE VII
MISCELLANEOUS PROVISIONS

SEC. 38. Annual Report. — The LGUs, with assistance from the HUDCC, shall
submit a detailed annual report with respect to the implementation of this Act to the
President and the Congress of the Republic of the Philippines.

SEC. 39. Implementing Rules and Regulations. The NHA, HUDCC and the
Department of the Interior and Local Government (DILG), 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

SEC. 40. Appropriations. - LGUs, depending on the ratio of the homeless to the
total population within their jurisdiction, shall appropriate at least five percent (5%) of
their annual internal revenue allotment (IRA) for the implementation of this Act. In
addition, the allocation for the basic services and facilities specified in Section 6 of
this Act may be taken by the LGU implementing the relocation or resettlement from
the twenty percent (20%) of the IRA appropriated for development projects as
mandated under section 287 of Republic Act no. 7160, otherwise known as the Local
Government Code of 1991

To ensure full implementation of this Act and to realize the dream of every Filipino to
have a decent roof over his head, the budgetary allocation for the housing sector in
the immediately succeeding year after the effectivity of this Act shall be increased to
not less than five percent (5%) of the total annual budget in the General
Appropriations Act.

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SEC. 41. Suppletory Application of Republic Act No. 7279 and Republic Act No.
7160. — The provisions of Republic Act No. 7279, otherwise known as the Urban
Development and Housing Act of 1992; and Republic Act No. 7160, otherwise known
as the Local Government Code of 1991, insofar as they are not inconsistent with the
provisions of this Act, shall apply suppletorily.

SEC. 42. Separability Clause. — If any provision of this Act is held invalid or
unconstitutional, the same shall not affect the validity and effectivity of the other
provisions hereof,

SEC. 43. Repealing Clause. — All other laws, decrees, executive orders and rules
and regulations contrary to or inconsistent with the provisions of this Act are hereby
repealed or modified accordingly.

SEC. 44. Effectivity Clause. - This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in two (2) newspapers of general circulation.

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