Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

3639

HOUSE BILL NO

Introduced by Honorable Michael L. Romero.

Explanatory Note

The issue of housing is multifaceted which includes urban and rural
development. The enormous and increasing number of housing backlogs requires
a more concentrated government interventions that effectively sets and
implements policy directions on housing and urban development and at ihe
same time recognizing the important role of the private sector and other
stakeholders.

The present set up of our government agencies that are involved in housing
and urban development has inherent institutional weaknesses. The Housing and
Urban Development Coordinating Council (HUDCC) has served as the oversight,
over-all coordinator, initiator, enabler and facilitator of all government policies,
plans and programs for the housing sector. It sets the overall direction and targets
for the sector, determines strategies, formulates appropriate policies, monitors
and evaluates the programs, projects and performance of the implementing
shelter agencie:

But its limited resources and authorities as a coordinating body has served
as constraints in providing and implementing an overall urban development and
housing strategy for the country and in orchestrating a national development
framework that will rationalize and manage the process of urbanization, at the
same time empowering and hamessing the full capacity of the local government
units (LGUs) to promote sustainable development, environmental awareness and
equitable growth.


On the other hand, the Housing and Land Use Regulatory Board (HLURB),
an attached body to the HUDCC, has integrative roles of town planning
assistance to LGUs, real estate management and regulation, and adjudication of
cases involving buyers in subdivisions and condominiums against developers
oppositions to applications involving regulatory permits and licenses, and appeals
from the decisions of local zoning bodies, Republic Act 8763 otherwise known as
the “home guaranty corporation act of 2000" also transferred the regulatory and
adjudicatory jurisdictions over homeowners associations to the HLURB.

With these vas! powers of the HLURB, the HUDCC chair is limited to policy
making and is not involved in the implementation of HLURB's mandates.

To address this weakness, there is a need to reorganize the housing or
shelter agencies by consolidating the functions of HLURB and HUDCC under one
secretary into the Deparlment of Housing and Urban Development (DHUD). The
adjudicatory function of the HLURB will be lodged into an independent and
enhanced adjudicatory commission.

The key shelter agencies namely the National Housing Authority (NHA),
Home Guaranty Corporation (HGC), National Home Mortgage Finance
Corporation (NHMFC), Home Development Mutual Fund (HDMF], and Social
Housing Finance Corporation (SHFC) will remain to operate under their present
mandate bul shall be attached to the department for policy and program
coordination, monitoring and evaluation.

The creation of he department of housing and urban development to be
the sole planning and policy-making, regulatory, program coordination, and
performance monitoring entity for housing and urban development will address
the absence of an adequate and coherent institutional set-up that formulates
and implements a comprehensive, integrated, inclusive and sustainable
management of the housing and urban development sector.

The DHUD and its attached key shelter agencies with a strengthened
adjudication commission will provide long-term solutions in designing and
managing disaster resilient, competitive, inclusive, and sustainable communities.

In view of the foregoing, approval of this bill is highly and earnestly
recommended. a

LL. ROMERO Ph.D


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS,
First Regular Session

HOUSE BILL NO, 363 3

Introduced by Honorable Michael L. Romero

AN ACT
CREATING THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
(DHUD), DEFINING THE MANDATES, POWERS, AND FUNCTIONS, PROVIDING
FUNDS THEREFOR AND FOR OTHER PURPOSES.

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

CHAPTER 1
TITLE, VISION AND POLICIES

Section 1. Title. - This Act shall be known as the Department of Housing and
Urban Development Act of 2016.

Section 2. Declaration of Policies. - The State shall, by law, and for the common
good, undertake, in cooperation with the private sector, a continuing program of urban
development and housing which will make available at affordable cost, decent 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.

The State shall pursue the realization of a modern, humane, economically viable
and environmentally sustainable society where the urbanization process is manifest in
towns and cities being centers of productive economic activity, through partnerships with
multi-stakeholders; where urban areas have affordable housing, sustainable physical and
social infrastructure and services facilitated under a democratic and decentralized system
of governance; and where urban areas provide the opportunities for an improved quality
of life and the eradication of poverty

Urban or rural poor dwellers shall not be evicted nor their dwelling demolished,
except in accordance with law

CHAPTER II
DEFINITION OF TERMS

Section 3. Definitions. - As used in this Act, the following terms shall mean

3.1 Attachment - refers to the lateral relationship between the department and the
attached agency or corporation for purposes of policy and program coordination and as
further defined under the Administrative Code.

3.2 Housing - refers to the system and its components which establish the
residential quality of life, including housing, utilities, access to social services and other
community facilities, security, and other aspects related to an individual's residence

3.3 Informal Settler Families (ISFs) refer to household/s living in: (a) lot without
consent of the property owner; (b) danger areas; (c) areas for government infrastructure

projects; (d) protected/forest areas (except for indigenous people); (@) Areas for Priority


Development (APDs), if applicable; and/or (f) other government/public lands or facilities
not intended for habitation

3.4 Urban Development — pertains to the process of occupation and use of land or
space for such activities as residential, industrial, commercial and the like or their
combinations, necessary to carry out the functions of urban living. It entails the building
or rebuilding of more or less permanent structures over land that is often withdrawn or
converted from its original use, resulting in the creation of a built environment.

CHAPTER Ill
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Section 4. Creation and Mandate of the Department of Housing and Urban
Development. - There is hereby created the Department of Housing and Urban
Development, hereinafter referred to as the Department, by consolidating the functions
of the Housing and Urban Development Coordinating Council (HUDCC) and the planning
and regulatory functions of the Housing and Land Use Regulatory Board (HLURB), which
shall act as the primary national government entity responsible for the management of
housing and urban development. It shall be the sole and main planning and policy-
making, regulatory, program coordination, and performance monitoring entity for all
housing and urban development concerns, primarily focusing on the access to and
affordability of the basic human needs.

Section 5. Powers and Functions. - The planning and regulatory function of the
Housing and Land Use Regulatory Board (HLURB) is hereby transferred to the
Department

In addition thereto, the Department shall perform the following


5.1, Formulate the national and urban development and housing policy and
strategy, in coordination and in consultation with the stakeholders, which ensures
consistency with the Philippine Development Plan and the National Physical
Framework Plan to promote social and economic welfare;

5.2. Exercise initiative and assume a lead role in coordinating, supervising and
integrating all government activities relative to housing and urban development;

5.3. Formulate effective and efficient housing finance policies and programs to
promote the establishment of a self-sustaining, private sector-led housing finance
system;

5.4, Manage and oversee the development of proclaimed housing sites, including
the use of land assets as resource mobilization strategy to raise alternative funds in
developing new town housing projects which will serve as central relocation sites for the
affected Informal Settlers;

5.5. Utilize income generated from fees, fines, charges, and other collections in
the performance of its functions, to defray operating expenses:

5.6. Enter into contracts, joint venture agreements, public-private partnerships,
and such other memorandum of agreements/understanding, either domestic or foreign,
under such terms and conditions as it may deem proper and reasonable subject to
existing laws;

5.7. Discharge all responsibilities of government as may arise from treaties,
agreements and other commitments on housing, land use and urban development to

which itis a signatory, including the determination of forms of assistance for housing, land


use and urban development to be extended through bilateral or multilateral loans and/or
assistance program;

5.8. Receive, take and hold by bequest, device, gift, purchase or lease, either
absolutely or in trust for any of its purposes from foreign and domestic sources, any asset,
grant or property, real or personal, subject to such limitations provided under existing laws
and regulations;

5,9. Exercise oversight function, coordinate, monitor and evaluate the policies
and programs of all attached agencies;

5.10, Conduct comprehensive studies and researches, and build and maintain a
database necessary for housing and urban development;

11, Provide assistance to build the capability of local government units in
housing and urban development and management to strengthen the role of provinces,
cities and municipalities as the primary entities for urban development/renewal
planning and management;

5.12, Promulgate zoning and other land use control standards and guidelines
which shall govern land use plans and zoning ordinances of local governments,
subdivision or estate development projects;

5.13. Monitor local government compliance with housing and urban development
laws, standards and guidelines and Republic Act No. 9485, otherwise known as the Anti-
Red Tape Act of 2007 with respect to housing and urban development projects, as well

as their judicious and fair application of local housing and urban development ordinances:


5.14. Support local government partnerships with communities, civil society
organizations, non-government organizations, and private groups in the
implementation urban developmentrenewal projects;

5.15. Develop and establish a sector performance monitoring and assessment
mechanism, and monitor the performance of national government agencies, local
government units, as well as other entities involved in housing and urban development;

5.16. Lead in the disposition of lands intended for housing owned by the
Government or any of its subdivisions, instrumentalities, agencies or government-owned
or controlled corporations such as but not limited to military reservations, lands reserved
for government offices, facilities and other installations, and other land assets including
friar lands which have not been used for the purposes for which they have been reserved
or set aside for the past ten (10) years from effectivity of Republic Act No. 7279, otherwise
known as the Urban Development and Housing Act (UDHA);

5.17, Declare areas as Urban Development/Renewal site(s) including the
development and implementation of sub-projects jointly with the concerned local
government units under a Public Private Partnership (PPP) arrangement;

5.18. Advocate and assist the local government units (LGUs) in the establishment
of Special Housing Fund (SHF) to be sourced from the proceeds of Real Property Tax
(RPT) as provided for under Section 43 of Republic Act No. 7279 pegged at one half
percent (.5%) of the assessed value of real property which will be exclusively used for
housing and urban development/renewal projects of the LGUs:

5.19. Take the lead in the conduct of Pre- and Post-Proclamation activities as

orchestrator and facilitator of the entire disposition process including the stewardship of


the Local Inter-Agency Committee (LIACs) which are primarily tasked to oversee the
implementation of housing proclamation projects;

5.20. Effect and oversee a single regulatory system that shall govern all activities
relative to the planning, production, marketing, and management of housing and urban
development projects;

5.21. Take over unfinished, incomplete or abandoned licensed real estate
development projects under Presidential Decree 957;

5.22. Encourage the private sector to address and serve a large part of the
country's housing needs;

5.23, Promote, accredit and regulate the use of indigenous materials and
technologies in housing construction;

5.24. Implement prototype projects in housing and urban development
undertakings, with the right to exercise the power of eminent domain, when necessary;

5.25. Determine, fix and collect reasonable amounts to be charged as fees and
charges necessary for the effective implementation of all laws, rules and regulations
enforced by the Department and impose reasonable fines and penalties for violation
thereof;

5.26. Register and regulate Homeowners and Homeowners Associations (HOAs)
and Condominium Units Owners’ Association/Corporation (CUOA/Cs) and provide
assistance in the formulation of community development programs:

5.27. Formulate and ensure the implementation of housing policies and programs
for urban poor communities and informal settler families (ISFs) that will promote the social

and economic welfare of homeless families particularly the poor and underprivileged;


5.28. Initiate and encourage deeper and active involvement and participation of
civil society organizations, developers associations, urban planners and other
stakeholders which shall be used as a venue through which housing needs are
assessed and recognized and, in coordination with the local government units, serve
as the lead agency for housing and urban development concerns; and,

5.29. Perform such other related functions as may be mandated by law.

Section 6. Composition. - The Department shall be composed of the Office of the
Secretary, his/her immediate staff, and the Offices of the Undersecretaries and their
respective staff, and the other Offices directly supportive of the Office of the Secretary.

Section 7. The Secretary. - The Secretary shall:

7.1, Report to the President on the promulgation of rules, regulations and other
issuances relative to matters under the jurisdiction of the Department;

7.2. Establish policies and standards for the efficient and effective operations of
the Department in accordance with the programs of the government;

7.3. Promulgate rules, regulations and other issuances necessary in carrying out
the Department's mandate, objectives, policies, plans, programs and projects:

7.4, Review and approve, with a panel of planners and builders, the physical
framework plans of the provinces and the comprehensive land use plans of cities, as well
as the municipalities within Metro Manila:

7.5. Exercise control and supervision over all personnel of the Department:

7.6. Have the power to delegate authority for the performance of any administrative

or substantive function to subordinate officials of the Department;


7.7. Appoint all officers and employees of the department, except those whose
appointments are vested with the President.

7.8. Have the power to call on other agencies and instrumentalities of the
government and private entities for cooperation and assistance in the performance of its
functions;

7.9. To impose administrative fines and/or penalties of not more than one
hundred thousand pesos (P100,000.00) for violation of this Act, Republic Act No
7279 and other laws implemented by the Commission, including pertinent rules and
regulations, orders, decisions, and/or rulings; Provided, that the Secretary may adjust
such fines not more than once every three (3) years; and,

7.10. Perform such other functions as may be provided by law or assigned by the
President

The Secretary shall also serve as a voting member of the National Economic and
Development Authority (NEDA) Board, the governing Boards of the Climate Change
Commission (CCC), the National Disaster Risk Reduction Management Council
(NDRRMO), and the National Land Use Committee (NLUC), The Secretary shall be a
member of NEDA's Committee on Infrastructure (INFRACOM), Investment Coordinating
Committee (ICC) and Social Development Committee (SDC). The Secretary shall also be
a member of the body authorized to formulate, prescribe, or amend guidelines under
Republic Act No. 6957 as amended, otherwise known as the Build-Operate-Transfer
(BOT) Law.

Section 8. The Undersecretaries. - The Secretary shall be assisted by:


8.1. One (1) Undersecretary for Policies, Plans and Programs, Coordination,
Monitoring and Evaluation;

8.2. One (1) Undersecretary for Environmental, Land Use and Urban Planning and
Development

8.3. One (1) Undersecretary for Regulation of Housing and Real Estate
Development; and,

8.4, One (1) Undersecretary for Homeowners, Homeowners Associations and
Community Development

They shall have the powers and functions as provided for in Section 10, Chapter
2, Book IV of the Administrative Code of 1987. The Secretary is further authorized to
delineate and assign the other functional areas of responsibility of the Undersecretaries.

Section 9. Departmental Offices and Regional Offices. - The Department shall
establish, operate, and maintain Departmental Offices under them such as, but not limited
to: (1) Policies, Plans and Programs, Coordination, Monitoring and Evaluation; (2)
Environmental, Land Use and Urban Planning and Development; (3) Regulation of Real
Estate Development; and (4) Homeowners, Homeowners Associations and Community
Development.

There shall be Regional Offices in all of the country’s regions. Each Regional Office
shall be headed by a Regional Director.

Section 10. Staffing Pattern. - The Secretary shall cause the preparation and
implementation of a staffing pattern for the Department. The development of the staffing
pattern shall be based on an assessment of the personnel requirements of the entire

Department. The remuneration structure of the positions in the staffing pattern shall


conform to the Republic Act No. 6758, otherwise known as the Salary Standardization
Law, as amended. The Department of Budget and Management (DBM) shall, upon its

approval, fund in full the staffing pattern of the Department.

Section 11. Advisory Council. - The Secretary shall have the power to establish
advisory councils consisting of the Secretaries and other heads from national government
agencies, representatives from the private sector, urban poor communities, academe,
and other marginalized groups, to provide a forum for stakeholder participation and
dialogue on key housing and urban development policies, issues and concerns. Such
councils shall be convened and chaired by the Secretary of the Department of Housing

and Urban Development

CHAPTER IV
ADJUDICATION COMMISSION FOR HOUSING, LAND USE
AND URBAN DEVELOPMENT
Section 12. Reconstitution of the HLURB as the Adjudication
Commission for Housing, Land Use and Urban Development (Commission).
The HLURB is hereby reconstituted and shall henceforth be known as the Adjudication
Commission for Housing, Land Use and Urban Development, hereinafter referred to
“Commission”, which shall be attached with the Department for policy, plan and program

coordination only


Section 13. Assumption and Exercise of Adjudication Function of the
Housing and Land Use Regulatory Board (HLURB) to the Commission. The
adjudication function of the HLURB shall be assumed and exercised by the Commission.

Section 14. Composition of the Commission and Qualification of
Commissioners. The Commission shall be composed of nine (9) full-time
commissioners; Provided, that the term of incumbent Commissioners shall be
respected; Provided further that the subsequent appointees of the President shall be
members of the Philippine Bar of good standing and has been engaged in the practice of
law for at least ten (10) years with experience and/or exposure in housing and/or urban
development.

The Commissioners shall hold office for a period of six (6) years, unless earlier
removed for cause.

Section 15. Collegiality, Divisions, and Sessions. The Commission shall
exercise its adjudicatory and all other powers, functions, and duties through its Divisions.
The Divisions of the Commission shall have exclusive appellate jurisdiction over cases
decided by its Arbiters

The Commission, sitting en banc, shall be presided over by the Secretary and
shall decide only on the promulgation of rules and regulations governing the
hearing and disposition of cases before any of its Divisions and its Arbiters in its
Regional Offices, and on the formulation of policies affecting its administration and
operations.

Section 16. Precedence and Supervision. The most senior Commissioner shall

be the presiding Commissioner of the first Division and the two (2) next most senior


Commissioners shall be the presiding Commissioners of the second and third Divisions,
respectively

The Executive Commissioner, appointed by the Secretary, shall have
administrative supervision over the Commission and its Regional Offices and all their
personnel, including the Arbiters.

Section 17. Decisions and Resolutions. The concurrence of two (2)
Commissioners of a Division shall be necessary for the promulgation of a judgment or
resolution, Such judgment or resolution shall be final and executory after fifteen (15)
days from the receipt by the party of the decision or resolution.

Whenever the required membership in a Division is not complete and the
concurrence of two (2) Commissioners to arrive at a judgment or resolution cannot be
obtained, the Executive Commissioner shall designate into the Division such number
of additional Commissioners from the other Divisions, as may be necessary.

The conclusions of a Division on any case submitted to it for decision shall be
reached in consultation before the case is assigned to a Commissioner for the writing of
the decision. It shall be mandatory for the Division to meet for purposes of the
consultation ordained herein. A certification to this effect signed by the presiding
Commissioner of the Division shall be issued and a copy thereof attached to the record
of the case and served upon the parties.

Section 18. Jurisdiction of Arbiters. The Arbiters shall exercise exclusive
jurisdiction to hear and decide cases involving the following:

Claims for refund, complaints against unsound real estate business practices and other

actions for specific performance of contractual and statutory obligations filed by subdivision lot or


condominium unit buyer against the project owner, developer, dealer, broker or salesman; and

other complaints for violation of Presidential Decree No. 957 and other related laws,

a.

Intra-association disputes or controversies arising out of the relations between
and among members of homeowners associations or condominium
corporations; between any or all of them and the homeowners association or
condominium corporation of which they are members, including federations of
homeowners associations;

Inter-association disputes or controversies arising out of the corporate relations
between and among two or more homeowners associations or condominium
corporations or federations;

Disputes between such homeowners association or condominium corporation
and the State, insofar as it concerns their individual franchise or right to exist
and those which are intrinsically connected with the regulation of homeowners
associations and condominium corporations or dealing with the internal affairs.
of such entity;

Suits filed in opposition to an application for certificate of registration and
license to sell, development permit for condominium projects, clearance to
mortgage, or the revocation or cancellation thereof, and locational clearances,
certifications or permits, when issued by the HLURB/the Department;

Suits filed by the project owner/developer against a buyer for the collection of
unpaid amortization, cancellation of contract and/or ejectment.

Eviction of informal settlers in open spaces or common areas of subdivisions
and condominiums filed by the project owner or developer or the duly

registered homeowners association or condominium corporation of the project


g. Disputes involving buyer financing agreements with any financing institution
for the purchase of condominium units or subdivision lots; and,

h. Disputes involving easements within or among subdivisions projects

i, Violations of administrative rules and regulations implementing Sections 7, 8
and 18 of Republic Act No. 7279.

j. Disputes between landowners and developers, and between
banks/financing institutions and developers whenever the interest of the
buyers is involved;

k. Disputes involving the enforcement of comprehensive land use plans
(CLUPs) and/or their accompanying zoning ordinances

Section 19, Jurisdiction of the Commission and the Secretary. The
Commission shall have the exclusive appellate jurisdiction over all cases decided by the
Arbiters.

The decision of the Commission shall be final and executory after fifteen (15)
calendar days from receipt thereof by the parties.

The Secretary may assume jurisdiction over any complaint or case and decide the
same or certify such case for decision to the Commission, when authorized by both
Houses of Congress through a resolution, if the controversy involves massive real estate
fraud or unsound business practices of critical socio-economic or environmental
considerations that may have serious potential impact on the interests of the sector or the
general welfare.

Section 20, Powers of the Commission. - The Commission shall have the power

and authority:


20.1. To promulgate rules and regulations governing the hearing and disposition
of cases before it and its Arbiters, as well as those necessary to carry out its functions;

20.2. To administer oaths, summon the parties to a controversy, issue subpoenas
requiring the attendance and testimony of witnesses or the production of such books,
papers, contracts, records, statement of accounts, agreements, and others as may be
material to a just determination of the case;

20.3. To hold any person in contempt directly or indirectly and impose appropriate
penalties therefor in accordance with law.

A person guilty of misbehavior in the presence of or so near any member of the
Commission or any Arbiter as to obstruct or interrupt the proceedings before the same,
including disrespect toward said officials, offensive personalities toward others, or refusal
to be sworn, or to answer as a witness or to subscribe an affidavit or deposition when
lawfully required to do so, may be summarily adjudged in direct contempt by said officials
and punished by fine not exceeding five thousand pesos (P5,000.00) or imprisonment not
exceeding five (5) days, or both, if it be the Commission, or a member thereof, or by a
fine not exceeding one thousand pesos (P1,000.00) or imprisonment not exceeding one
(1) day, or both, if it be an Arbiter.

The person adjudged in direct contempt by an Arbiter may appeal to the
Commission and the execution of the judgment shall be suspended pending the
resolution of the appeal upon the filing by such person of a bond on condition that he/she
will abide by and perform the judgment of the Commission should the appeal be decided

against him/her. Judgment of the Commission on direct contempt is immediately


executory and unappealable. Indirect contempt shall be dealt with by the Commission or
Arbiter in the manner prescribed under Rule 71 of the Revised Rules of Court; and

20.4. To enjoin or restrain, after due notice and hearing, any actual or threatened

commission of any or all prohibited or unlawful acts or to require the performance of a

particular act in any dispute within its jurisdiction which, if not restrained or performed

forthwith, may cause grave or irreparable damage to any party or render ineffectual any

decision in favor of such party, In no case shall a temporary or permanent injunction be

issued except after a finding of fact by the Commission, to the effect that

a. Prohibited or unlawful acts have been threatened and will be committed and

will be continued unless restrained, but no injunction or temporary restraining

order shall be issued on account of any threat, prohibited or unlawful act,

except against the person or persons, association or organization making the

threat or committing the prohibited or unlawful act or actually authorizing or

ratifying the same after actual knowledge thereof;

s

Substantial and irreparable injury to complainant's property will follow;

°

As to each item of relief to be granted, greater injury will be inflicted upon
complainant by the denial of relief than will be inflicted upon defendants by the

granting of relief;

a

Complainant has no adequate remedy at law; and,

@

Public officers charged with the duty to protect complainant's property are
unable or unwilling to furnish adequate protection
Such hearing shall be held after due and personal notice thereof has been served,

in such manner as the Commission shall direct, to all known persons against whom relief


is sought, and also to the Chief Executive and other public officials of the province or city
within which the unlawful acts have been threatened or committed, charged with the duty
to protect complainant's property: Provided, however, that if a complainant shall also
allege that, unless a temporary restraining order shall be issued without notice, a
substantial and irreparable injury to complainant's property will be unavoidable, such a
temporary restraining order may be issued upon testimony under oath, sufficient, if
sustained, to justify the Commission in issuing a temporary injunction. Such a temporary
restraining order shall be effective for no longer than twenty (20) days and shall become
void at the expiration of said twenty (20) days.

No such temporary restraining order or temporary injunction shall be issued except
on condition that complainant shall first file an undertaking with adequate security in an
amount to be fixed by the Commission sufficient to recompense those enjoined for any
loss, expense or damage caused by the improvident or erroneous issuance of such order
or injunction, including all reasonable costs, together with a reasonable attorney's fee,
and expense of defense against the order or against the granting of any injunctive relief
sought in the same proceeding and subsequently denied by the Commission

The undertaking herein mentioned shall be understood to constitute an agreement
entered into by the complainant and the surety upon which an order may be rendered in
the same suit or proceeding against said complainant and surety, upon a hearing to
assess damages, of which hearing, complainant and surety shall have reasonable notice,
the said complainant and surety submitting themselves to the jurisdiction of the
Commission for that purpose. But nothing herein contained shall deprive any party having

a claim or cause of action under or upon such undertaking from electing to pursue his/her


ordinary remedy by suit at law or in equity: Provided, further, That the reception of
evidence for the application of a writ of injunction may be delegated by the Commission
to any of its Arbiters who shall conduct such hearings in such places as he/she may
determine to be accessible to the parties and their witnesses and shall submit thereafter
his/her recommendation to the Commission.

20.5. To exercise such other powers as are implied, necessary, or incidental
to carry out the express powers granted to the Commission

Authority is hereby vested in the Commission to directly utilize the income
generated from fees, fines, charges, and other collections in the performance of its
functions, to defray operating expenses.

Section 21. Compensation. A Commissioner shall receive a minimum monthly
compensation corresponding to Salary Grade 30 as prescribed under Republic Act No.
6758, as amended

The incumbent full time Commissioners of the present HLURB shall remain in
office unless they opt to avail of the retirement and separation benefits as provided for
in Section 49 of this Act or are earlier removed for cause.

Section 22. The Arbiters, Qualifications and Compensation. The existing
HLURB Arbiters shall be deemed qualified. Additional Arbiters shall have the following
qualifications

22.1 No person shall be appointed as Arbiter unless he or she is a member of the
Philippine Bar of good standing and has been engaged in the practice of law for at least
five (5) years with at least two (2) years of experience in the field of real estate and land

use development cases; and,


22.2 The Arbiters shall receive a minimum monthly compensation corresponding
to salary grade 29 as prescribed under RA No. 6758, as amended

The President shall appoint Arbiters, as may be necessary, upon the
recommendation of the Commission.

Section 23. The Sheriff. The Commission shall appoint a Sheriff or such number
of Sheriffs in its Central and Regional Offices. The Sheriff shall be responsible for the
service and execution of all writs, summonses, and orders and other processes of the
Commission

Section 24. Appeals, Decisions, awards, or orders of the Arbiters shall be final
and executory unless appealed to the Commission within fifteen (15) calendar days
from receipt of such decisions, awards, or orders. The appeal may be entertained
only on any of the following grounds:

24.1 There is prima facie evidence of abuse of discretion on the part of the
Arbiter in rendering the questioned decision, award, or order;

24.2 The decision, order, or award was secured through fraud or coercion,
including graft and corruption;

24.3 The appeal is made purely on questions of law; and,

24.4 Serious errors in the findings of facts are raised, which errors would
cause grave or irreparable damage or injury to the appellant

Section 25. Criminal Prosecution. The criminal prosecution for violation of
housing laws and regulations shall be instituted before criminal Courts having appropriate

jurisdiction


Section 26. Pending Cases. All cases pending in regular Courts arising
from or in connection with the implementation of pertinent laws on housing shall
continue to be heard, tried, and decided to their finality by such Courts

CHAPTER V
ATTACHED AGENCIES

Section 27. Attached Agencies and Corporations. The following agencies and
corporations are hereby attached to the Department for policy and program coordination,
monitoring and evaluation

27.1 National Housing Authority (NHA);

27.2 Home Guaranty Corporation (HGO);

27.3 National Home Mortgage Finance Corporation (NHMFC);

27.4 Home Development Mutual Fund (HDMF)

27.5 Social Housing Finance Corporation (SHFC); and

27.6 Adjudication Commission for Housing, Land Use and Urban Development
(Commission)

All these Agencies shall continue to function according to existing laws and their
respective Charters. However, each of the heads of the attached agencies shall enter
into a performance contract annually with the Department Secretary. Such contracts shall
embody the national targets on housing and urban development and shall include the
over-all administration of the agency and the streamlining of personnel for effective and
efficient service

Any reorganization, merger, streamlining, abolition or privatization of any attached

government owned and controlled corporation (GOCC) initiated by the Governance


Commission on GOCCs under Republic Act 10149, otherwise known as the GOCC
Governance Act of 2011, shall require the concurrence of the Secretary.

Section 28, Nature of Attachment. The Secretary shall be elected as
Chairperson of the governing Boards of the National Housing Authority (NHA), Home
Development Mutual Fund (HDMF), National Home Mortgage Finance Corporation
(NHMFC), Social Housing Finance Corporation (SHFC), and Home Guaranty Corporation
(HGC)

CHAPTER VI
OTHER PROVISIONS

Section 29. Social Housing One-Stop Processing Centers (SHOPCs) -
The Department may establish SHOPCs in the regions, which shall centralize the
processing and issuance of all required housing-related permits, clearances, and
licenses in accordance with Executive Order No. 45, series of 2001 entitled
“Prescribing time periods for issuance of housing related certifications, clearances
and permits, and imposing sanctions for failure to observe the same”: Provided,
that for the foregoing purpose, the respective ceilings for socialized, low
cost/economic and middle-income housing shall be jointly determined by the
Department and the NEDA: Provided further that at any time , but not more than
once every two years, such ceilings may be reviewed or revised to conform to
prevailing economic conditions

All agencies involved in the issuance of said permits, clearances and

licenses shall be represented in the SHOPC and shall assign to SHOPC regional


centers personnel who shall be sufficiently authorized to process and issue the
same

Section 30. Identification and Designation of Lands for Housing and
Urban and Rural Development. - For the purpose of designating lands for
housing and urban and rural development, the Department of Housing and Urban
Development, the Department of Environment and Natural Resources (DENR), the
Department of Agrarian Reform (DAR) Department of Agriculture (DA), and the
Land Registration Authority (LRA) shall, within one hundred eighty (180) days from
the effectivity of this Act, jointly identify agricultural lands which under RA No.
6657, as amended, otherwise known as the Comprehensive Agrarian Reform Law,
and other existing laws, rules and regulations are already exempted from
conversion requirements: Provided, that the list shall exclude lands that are
declared as non-negotiable or protected from conversion under existing laws and
issuances and those lands covered under RA No. 6657: Provided further, that the
designation of lands for housing and urban and rural development purposes shall
neither prejudice the rights of qualified beneficiaries under RA No. 6657, nor
undermine the protected agricultural areas intended to ensure the attainment of
food security under RA No. 8435, otherwise known as Agricultural and Fisheries
Modernization Act (AFMA) and other existing laws: Provided, also that in the case
of lands exempted from conversion though these have been approved by the DAR,
if these are contested by affected individual or community beneficiaries, it shall not
be allowed to proceed with any horizontal or vertical development without need for

any prior clearance or approval from the DAR or the DA consistent with the terms


of the approved order or conversion: Provided, finally, that all idle government
lands in highly urbanized cities are hereby prioritized for housing and urban
development purposes
CHAPTER VII
TRANSITORY PROVISIONS.

Section 31. Absorption of Employees of the Consolidated Agencies. The
existing civil servants of HUDCC and HLURB shall enjoy security of tenure and be
absorbed by the Department or the Commission, in accordance with their staffing patterns
and the selection process as prescribed under RA No. 6656 on the Rules on government
reorganization, unless the civil servant wants to avail of Section 33, hereof

Section 32. Transfer of Assets and Obligations, The following dispositive
actions shall be implemented within six (6) months from the effectivity of this Act:

32.1 The assets, equipment, funds, choses in action, records, and pertinent
transactions of HUDCC and HLURB shall be transferred to the Department and the
Commission; and,

32,2 The Department and the Commission shall cause the creation of additional
positions and augment their budget appropriations, as may be necessary

Section 33. Transition Period. All transfer of functions, assets, funds, personnel,
equipment, properties, transactions, and personnel in the affected national government
agencies, and the formulation and implementation of the internal organic structures,
staffing patterns, operating systems, and revised budgets of the Department and the

Commission, shall be completed within six (6) months from the effectivity of this Act,


during which existing personnel shall continue to assume their posts in holdover
capacities until new appointments are issued.

Section 34. Separation from the Service. Any employee of HUDCC and HLURB
who opts to avail of separation from service within six (6) months from the effectivity of
this Act as a result of the consolidation and/or reorganization under the provisions of this
Act shall, within one (1) month from their separation from the service, receive a separation
pay equivalent to two hundred fifty percent (250%) of the latest monthly basic salary for
every year of service in the government Provided, that those who are qualified to retire
under existing retirement laws shall be allowed to retire under said laws and shall receive
the benefits within ninety (90) days from their separation from service

The miscellaneous personnel benefits, the organization adjustment, and corporate
funds may be used to fund the purpose

Section 35. Abolition of the Housing and Urban Development Coordinating
Council (HUDCC) and the Transfer of Rights and Assets. The Housing and Urban
Development Coordinating Council is hereby abolished.

The Department shall, by virtue of this Act, be subrogated to all rights and assume
all the liabilities of the HUDCC and HLURB, except those that may hereafter be
transferred to or absorbed by the Commission

Section 36. Formulation of Implementing Rules and Regulations. The
HUDCC, HLURB, DBM and CSC shall prepare and issue the implementing rules and
regulations (IRR) within sixty (60) days upon the effectivity of this Act.

CHAPTER VIII
IMPLEMENTING AUTHORITY AND FUNDING


Section 37. Implementing Authority. The HUDCC Chairman is hereby
authorized to undertake the implementation of the provisions of this Act and implement
the necessary organizational changes within six (6) months or until a Department
Secretary has been appointed and has assumed office.

Section 38. Funding. The amount needed for the initial implementation of this Act
shall be charged against the current year's appropriations of HUDCC and HLURB.
Thereafter, such sums as may be necessary for the continued implementation of this Act,
shall be included in the General Appropriations Act (GAA)

CHAPTER IX
MISCELLANEOUS PROVISIONS.

Section 39. Mandatory Review of the Implementation of this Act. The
Congress shall undertake a mandatory review of the implementation of this Act at the end
of the third year from the date of its effectivity.

Section 40. Repealing Clause. All laws, executive orders, proclamations, rules,
regulations and other issuances or parts thereof which are inconsistent with the provisions
of this act are hereby repealed, amended or modified accordingly

Section 41. Separability Clause. If, for any reason or reasons, any portion or
provision of this Act shall be held unconstitutional or invalid, the remaining provisions not
affected thereby shall continue to be in full force and effect.

Section 42. Effectivity. This Act shall take effect fifteen (15) days after its

complete publication in at least two (2) national newspapers of general circulation