Republic of the Philippines
House of Representatives
Quezon City, Metro Manila

15 Congress
1* Regular Session

893

COMMITTEE REPORT NO.
Submitted by the Conu

7 ice on Housing and Urban Development on _ iva
Re: House Bilt No:

Recommending its approval in substitution of House Bill Nos. 154, 1161, & 3278
Sponsors: Representatives Valencia, Olivares, Biazon and Ejercito

Mr, Speaker:

fhe Committee on Housing and Urban Development to which were referred House Bill No. 154
introduced by Reps. Edwin L. Olivares, Ma. Amelita Calimbas-Villarosa and Bemadette R- Herrera-Dy,
entitled:

“AN ACT CREATING A LOCAL HOUSING BOARD IN EVERY CITY AND
MUNICIPALITY, PROVIDING FOR ITS POWERS AND DEFINING {T DUTIES
AND FUNCTIONS, AND FOR OTHER PURPOSES”;

House Bill Nos. 1161 introduced by Reps. Rodolfo G. Biazon, Mel Senen Sarmiento, Rosenda Ann M.
Ocampo, Winston T. Castelo and Marcelino Teodoro, entitled:

“AN ACT CREATING 4 LOCAL HOUSING BOARD IN ALL CITIES AND FIRST
TO THIRD CLASS MUNICIPALITIES, PROVIDING FOR ITS POWERS AND
FUNCTIONS, AND FOR OTHER PURPOSES”;

and House Bill No. 3278 introduced by Rep. Joseph Victor G. Ejereito and Winston T. Castelo, entitled:

“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”;

4565

‘vas considered the same and recommends that the attached House Bill No. » entitled:

“AN ACT CREATING A LOCAL HOUSING BOARD IN EVERY CITY AND FIRST
TO THIRD CLASS MUNICIPALITY, PROVIDING FOR [TS POWERS AND
DEFINING ITS DUTIES AND FUNCTIONS, AND FOR OTHER PURPOSES”

be approved in substitution of House Bill Nos, 154, 1161, and 3278 with Reps. Olivares, Calimbas-
Villarosa, Biazon, Sarmiento (M.S.), Ejercito, Castelo, Herrera-Dy, Ocampo, Teodoro (M), Magsaysay
(M), Valencia, Leonen-Pizarro, Bagatsing, Acharon, Kho, Lico, Sy-Alvarado, De Jesus and Padiila as
authors thereof.

THE HONORABLE SPEAKER
HOUSE OF REPRESENTATIVES
QUEZON CITY


Republic of the Philippines
Fouse of Representatives:
Erueson City

FIFTEENTH CONGRESS

First Regular Session

iw 4565
HOUSE BILLNO.

Introduced by Reps. Edwin L. Olivarez, Ma. Amelita Calimbas-Villarosa, Rodolfo G. Biazon, Mel
Senen Sarmiento, Joseph Victor G. Ejercito, Winston T. Castelo, Bernadette R. Herrera-Dy,
Rosenda Ann M. Ocampo, Marcelino Teodoro, Maria Milagros H. Magsaysay, Rodolfo G.
Valencia, Catalina G. Leonen-Pizarro, Amado S. Bagatsing, Pedro B. Acharon, Jr., David L Kho,
Isidro Lico, Ma. Victoria Sy-Alverade, Emerenciana De Jesus and Carlos M. Padilla

AN ACT
CREATING A LOCAL HOUSING BOARD IN EVERY CITY AND FIRST TO THIRD CLASS
MUNICIPALITY, PROVIDING FOR {TS POWERS AND DEFINING ITS DUTIES AND FUNCTIONS,

AND FOR OTHER PURPOSES

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

Congress assembled:

SECTION 1. Short Title. - This Act shall be known as the "Loca! Housing Board Act of
2011".

SECTION 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;

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{b} adopt a continuing socialized housing program that will make available at
affordable cost decent housing and basic services to underprivileged and homeless urban or
rural poor dwellers;

{c) protect urban or rural poor dwellers from evictions or demolitions undertaken in
violation of the law or in an unjust or inhumane manner;

(d) advance and promote genuine and meaningful local autonomy of territorial and
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 goais, and towards this end, the State shall provide for a more responsive and
accountable focal government structure instituted through a system of decentralization
whereby local government units {LGUs) shall be given more powers, authority,

responsibilities and resources in the establishment and implementation of th

own
housing program;

(2) promote and institutionalize the participation of the private sector,
nongovernment organizations (NGOs) and people's organizations (POs) in the urban and
rural development process; and

(f) require all national agencies and offices to conduct periodic consultations with
appropriate LGUs, nongovernmental organizations and POs and other concerned sectors
and stakeholders of the community before any project or program is implemented in their
respective jurisdictions.

SECTION 3. Definition of Terms. - For purposes of this Act the fallowing terms or
words and phrases shall mean or be understaod as follows:

(a) Balanced Housing Requirement refers to the mandate pursuant to Section 18 of

Republic Act (R.A) No. 7279 of the Urban Development and Housing Act, whereby

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developers of proposed subdivision projects shall be required to develop an area for
socialized housing equivalent to at least twenty percent (20%) of the total subdivision area

or total subdivision project cost, at the option of the developer, within the same city or

municipality, whenever feasible, and in accordance with the standard set by the Housing

and Land Use Regulatory Board (HLURB) and other existing laws;

{b) Boord refers to the Local Housing Board created under this Act;

{c) 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 R.A. No. 7279;

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

(e) Local Government Pabahay Program refers to the program aimed at
synchronizing and coordinating efforts of all government housing agencies involved in
assisting LGUs in their respective socialized housing projects, in the context of Executive
Order No. 143, series of 1993, entitled: “Directing the Housing and Urban Development
Coordinating Council to Oversee the Implementation of a Local Government Pabahay
Program, and Defining the Responsibilities of Certain Agencies Which Will be Involved
Therein";

{f) Local Shelter Pian 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, and shail include policy measures to enable cities and municipalities to
plan and implement their specific mandates of R.A. No. 7279, and to facilitate a linkage with

comprehensive land use plans as defined under this Act;

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{g) Loca! Shelter Plan Guidelines refer to a model for the preparation of local shelter
plans, as embodied in the National Urban Development and Housing Framework {NUDHF),
or that which was developed under the PHI/89/F02 Project, implemented by the Housing.
and Urban Development Coordinating Council (HUDCC) and executed by the United Nations
Centre for Human Settlements (UNCHS);

(h) National Urban Development and Housing Framework (NUDHF) refers to the
comprehensive plan for urban and urbanizable areas issued by the HUDCC and the HLURB in
November 1994 aimed at achieving the objectives of R.A. No. 7279;

(i). NGO or Nongovernmental Organization refers to a duly registered non-stock, non-
profit organization focusing on the upliftment of the basic or disadvantaged sectors of
society by providing advocacy, training, community organizing, research, access to
resources, and other similar activities as defined under the Social Reform and Poverty
Alieviation Act;

{j) PO or People’s Organization refers to a self-help group belonging to the basic
sectors and/or disadvantaged groups composed of members having a common bond of
interest who voluntarily join together to achieve a lawful common social or economic end as
defined under the Social Reform and Poverty Alleviation Act;

(k) 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 R.A. No. 7279;

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{m) UDHA refers to the Urban Development and Housing Act of 1992 or Republic Act
No. 7279;

(n) Underprivileged and Homeless Rural or Urbon 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 Nationa! Economic Development

Authority (NEDA) and who do not own housing facilities, and shall inciude those who live in

makeshift dwelling units and do not enjoy security of land tenure; and

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

SECTION 4. Coverage. - This Act shall cover all cities and first to third class
municipalities in both urban and rural areas: Provided, That fourth and fifth class
municipalities may create their own Local Housing Board if they so desire.

SECTION 5. Mandate. — The Local Housing Board in every city and municipality
covered under this Act shall formulate, develop, and recommend to the Sanggunian policies
and programs of the LGU on the provision of decent housing and resettlement areas and on
the observance of the right of the underprivileged and homeless to a just and humane
eviction and demolition; and perform the devolved functions of the HLURB under the Local

Government Code of 1991 and under Executive Order No. 71, series of 1993 insofar as

ed housing is concerned.

SECTION 6. Creation and Composition. — There shall be created a Local Housing
Board in every city or municipality covered under this Act which shall be composed of the
following:

(a) The City/Municipal Mayor, as chairperson;

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{b) The City/Municipal Vice Mayor, as vice chairperson;

(c) The Chairperson of the Sangguniang Panlungsod/Bayan Committee on Housing
and Urban Development or its equivatent, as member;

(d) The City/Municipal Planning and Development Coordinator, as member;

(e) The City/Municipal Engineer, as member;

(8.4 representative of the National Housing Authority, as member;

{g) A representative of the POs in the city or municipality, as member;

{h) A representative of the NGOs operating in the city or municipality, as member;

{i} A representative of the private sector engaged in subdivision and housing
development in the city o municipality, as member.

in the case of a city, the Presidential Commission for the Urban Poor (PCUP} shall be
represented in the Board, as member.

APO, NGO or private sector representative already represented in any local special
body may be concurrently represented in the Board; Provided, That a PO, NGO or private
sector representative to the Board shall each be selected through the same process as that

of

ing up the position of representatives of local special bodies.
SECTION 7. Powers and Functions. - A city or municipal Local Housing Board shall
have the following powers and functions:
{a} Recommend to the Sanggunian, when the financial resources of the LGU allow,
the adoption of a socialized housing program targeting the lowest income earners of the
local population through on-site housing development or relocation with sites and services

development, core-housing construction, and with integrated livelihood development

component;

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{b) Recommend policies on the prioritization, coordination, monitoring and
evaluation of all housing programs and projects within its jurisdiction, including policies on
the curtailment of the nefarious activities of professional squatters and squatting
syndicates;

{c) Prepare, based on local shelter plan guidelines under the NUDHF and with the
assistance of the HUDCC and other concemed government agencies, long-term, medium-
term and short-term focal shelter plans which shall form part of the city/municipal
development plans: Provided, That public hearings shall be conducted for the purpose;

(d) Recommend the designation of sites for socialized housing, subject to the
requirements prescribed by Section 8 of RA. No. 7279 and the guidelines issued for the
purpose, and ensure the conduct by the LGU of the inventory of all available lands within its
Jocality and the updating of the same every three (3) years pursuant to Section 7 of RA. No.
7279 and its implementing guidelines;

{e} Recommend, for approval of the Sanggunian, formulated schemes for the
acquisition and disposition of {ands within the locality for socialized housing purposes,
subject to Sections 9 to 14 of R. A. No. 7279 and their implementing guidelines: Provided,
That such schemes shall ensure that the valuation of a particular land for socialized housing
purposes shall be within the affordability levels of prospective beneficiaries;

(f] Recommend for approval of the Jocal chief executive (LCE) partnership
arrangements with the national government ar the private sector and NGOs on, but not
limited to the following programs:

{) Housing Production Assistance, Resettlement Assistance, Local Housing,

Cost Recoverable Joint Ventures and other relevant programs of the National

Housing Authority (NHA);

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{i) Local government housing assistance programs of the Home Development
Mutual Fund (HOMF), the National Home Mortgage Finance Corporation (NHMFC),
the Home Guaranty Corporation (HGC), and for this purpose, the local housing board
shall coordinate with the Advisory Committee created to oversee the
implementation of the Local Government Pabahay Program;

Gil) Localized Community Martgage Program of the Social Housing Finance
Corporation;

(iv) Other socialized housing projects undertaken by other national
government agencies and government-owned and controlled corporations within
the locality; and

{v] Socialized housing projects of the private sector or NGOs.

(g) Recommend to the Sanggunian matters of local taxation which may affect the
focal government housing program, which indudes, but shall not be limited to, the
formulation of a socialized housing tax, idle lands tax, and an additional levy on the real
property tax to constitute a Special Socialized Housing Fund (SSHF};

(h) Approve preliminary and final subdivision schemes and development plans of afl
socialized housing projects 2s well as individual or group building occupancy permits
covered by Batas Pambansa Big. 220, entitled: “An Act Authorizing the Ministry of Human
Settlements to Establish and Promulgate Different Levels of Standards and Technical
Requirements for Economic and Socialized Housing Projects in Urban and Rural Areas from
‘Those Provided under Presidential Decrees Numbered Nine Hundred Fifty- Seven, Twelve
Hundred Sixteen, Ten Hundred Ninety-Six and Eleven Hundred Eighty-Five,” and its

implementing standards, rules and regulations;

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(i) Evaluate and resolve any opposition to the issuance of development permits for
any of the projects stated in the immediately preceding subsection, in accordance with the
Jaw and the Rules of Procedure promulgated by the HLURB pursuant thereto;

{j} Designate at least one {1) representative to the local development council;
Provided, That the representative is nat already a member of the council;

{k) Submit to the President and the Congress of the Philippines through the LCE an
annual report as provided in Section 41 or R. A. No. 7279; and

(I) Perform such other related functions established by law or ordinance, as
necessary to implement the mandate of LGUs under R. A. No. 7279.

SECTION 8. Housing and Urban Development Officer, Qualifications. - The housing
and urban development policies, plans and programs formulated by the Local Housing
Board shall be implemented by an appointive local official to be known as the Housing and
Urban Development Officer.

No person shall be appointed Housing and Urban Development Officer unless he is a
Gitizen of the Philippines, a resident of the LGU concemed, of good moral character, 2

holder of a college degree either in public admi

ration, urban planning, development
studies, economics, civil engineering, or other related course with special training in housing
and urban development programs and management from a recognized college or university,
and a first grade civil service eligible or its equivalent. He must have an experience either in
housing development projects, organization of housing associations, management and
operation of housing and shelter programs or other related activities for at least five (5)
years in the case of the City Housing and Urban Development Officer, and three (3} years in
the case of Municipal Housing and Urban Development Officer.

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The appointment of the Housing and Urban Development Officer shall be mandatory
for all the LGUs covered under this Act. Provided, however, That cities and municipalities
with existing Urban Poor Affairs Office or its equivalent shall convert the same to the Office
of the Housing and Urban Development Officer.

SECTION 9. Duties and Functions of the Housing and Urban Development Officer. -
‘The Housing and Urban Development Officer shall:

(a) Implement the local shelter plans prepared by the Local Housing Board;

(b] 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;

{c) Assist the city/municipal development council in the formulation of its
comprehensive land use plans;

(d) Ensure compliance with the Balanced Housing Requirement as provided in
Section 18 of R. A. No. 7279 and its implementing rules and regulations;

{e) Conduct an inventory of ali lands within the locality, and update the same every
three years, in accordance with Section 7 of R. A. No. 7279 and guidelines issued for the
purpose;

{f) tdentify the sites for socialized housing to be recommended by the Board for
designation as such, subject to the requirements prescribed by Section 8 of R. A. No. 7279
and the guidelines issued for the purpose;

(g) In coordination with other concemed offices within the LGU, monitor the nature
and progress of land development of projects approved by the Board, 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;

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{h) Ensure the registration of underprivileged and homeless urban or rural dwellers
as socialized housing beneficiaries under Section 16 and 17 of R. A. No. 7279: Provided, That
the Housing and Urban Development Officer shall assume the functions of the city or
municipal registration committee as constituted under the implementing Tules and
regulations of the same sections;

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

{j) Promote the development and sustainability of housing associations and
cooperatives within the locality by performing the following:

(i) Assist in the organization of housing and shelter associations and
cooperatives;

{ii} In coordination with the other concerned LGU offices, assist in the
provision of technical and other forms of assistance to existing housing associations
and cooperatives to enhance their viability as an economic enterprise and social
organization;

(iii) Assist the housing associations or cooperatives 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;

{vi) Assist in the rehabilitation of or the viability-enhancement of housing
associations or cooperatives, particularly in the aftermath of man-made and natural
calamities and disasters, to aid in their survival; and
{k) Perform such other duties and functions as may be prescribed by law or

ordinance.

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SECTION 10. Generation and Mobilization of Resources. - The Local Housing Board is
hereby constituted as the primary entity tasked to advise the Sanggunian on matters of
sourcing of funds for socialized housing. For this purpose, the Local Housing Board 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 the Local Housing Board is
hereby authorized to receive foreign and local grants which shali be remitted to the local
treasury, and shall be credited to the socialized housing account of the LGU concerned;

{d) Loan packages from government financing/lending institutions;

(e) Joint venture projects with private sactor groups or developers and with NGOs
and POs; and

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

SECTION 11. Demolition and Eviction Clearinghouse. - The Local Housing Board is
hereby tasked to oversee the implementation of Section 28 of R. A. No. 7279 and its
implementing rules and regulations: Provided, That just and humane eviction and
demolition procedures are likewise made applicable to rural areas.

In this regard, the Local Housing Board shall:

(a) 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;

(b) Recommend policy measures and/or undertake appropriate action to ensure full
compliance with the constitutional mandate and statutory requirements prior to evictions

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and/or demolitions affecting underprivileged and homeless urban or rural poor dwellers;
and

{c) Issue directives, rules and regulations, consistent with laws, as it may deem
necessary to effectively carry out the purposes of the constitutional mandate to ensure just
and humane evictions and demolitions.

SECTION 12. Compliance Report. - Before undertaking any eviction and/or
demolition that will affect underprivileged and homeless urban or rural poor dwellers, the
city or municipality concerned, national government agencies or other proponents of
eviction and demolition activities, including employees of the judiciary, shail submit a
Compliance Report to the Local Housing Board, with a statement under oath that:

{a} Adequate consultation as defined and outlined under pertinent laws, rules and
regulations have already been undertaken with the affected residents;

(b) Adequate relocation as defined and outlined under pertinent laws, rules and
regulations, is available, ready and sufficiently supported by relocation and resettlement
funding; and

{c) The requirements and procedures prescribed under the implementing rules and
regulations of Section 28 of R. A. No. 7279, specifically on the Pre-Relocatian, Relocation
and Post-Relocation Phases of eviction/demolition activities have been or shall be observed.

The Compliance Report shall include a certified list of families to be evicted and/or
relocated. The Housing Board shall have the power to review the Compliance Report and
approve or disapprove the same.

SECTION 13. Meetings and Quorum. - The Local Housing Board shall meet at least
once a month of 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.

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Special meetings may be called by the chairperson or by a majority of the members,
with written notice, together with the agenda of the meeting, served upon each member at
least one day before the intended meeting.

‘The chairperson or, in his absence, the vice-chairperson shall preside over the board
meetings.

SECTION 14, Compensation and Remuneration. - Members of the Local Housing
Board who are not government cfficials or employees shall be entitled to the necessary
travelling expenses and allowances chargeable against the funds of the Local Housing Board
concemed, subject to existing accounting and auditing rules and regulations.

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

SEC. 15, Speciat Socialized Housing Fund. Cities and municipalities shall establish a
special account to be called the "Special Socialized Housing Fund" to be administered by the
Board which shalt serve 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} An appropriation from the intemal Revenue Allotment the amount of which shall
be determined by the LGU;

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

¢) All funds/monies generated from various sources intended for housing and other

related development programs; and

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

SEC. 16. Roles of Stakeholders. \n order to facilitate the work of the Board, the roles
of the stakeholders shall be as provided for under this section:

a. The tocal Government Unit shail:

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 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 fands
identified by the 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

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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) Investigate motu proprio or upon complaint by any party, any violation of the
provisions of Section 28 of R. A. No. 7279 and its implementing rules and regulations;

3) 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 8. A. No. 7279 or its implementing rules and regulations; and

4) Such other functions as maybe provided for under Executive Order No. 1521,
series of 2002.

4. 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 Board and ensure urban poor participation in
the decision-making pracess;

3) Assist the Board in processing appli

ns and documents;
4) Provide support to the Board in the community relations, social preparation,
information dissemination 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,

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SECTION 17. Penatties. - Failure to submit the Compliance Report as required by
Section 12 of this Act, or any act of misrepresentation or fraud in connection with any
information contained in a submitted Compliance Report, or the unjustified failure of or
refusal by the LCE 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 such
omission, misrepresentation, fraud or unjustified failure or refusal to:

(a) disciplinary action under Book 1, Title Two, Chapter 4 of the Local Government
Code; and/or

{b] prosecution under the penalty clause of R. A. No. 7279.

For this purpose, the LCE of a city or municipality shall constitute such Local Housing

Board within ninety (90) days from the promulgation of the implementing rules and
regulations of this Act. Failure to constitute the Board within this prescribed period shall be
prima focie evidence of unjustified failure or refusal to do so.

SECTION 48. Transitory Provisions. - Cities and municipalities with existing local
housing and urban development board or similar entity are hereby given ninety (90) days
from the promuigation of the implementing rules and regulations of this Act within which to
amend their respective ordinances to conform with the provisions of this Act: Provided, That
nothing herein stated shall preclude cities and municipalities from assigning additional
functions to the Board and/or appropriating additional funds to achieve the objectives of
this Act: Provided, further, That the national government agencies may assist in the
capability-building of the LGUs on matters of plan preparation, financing, and housing
regulation, especially in the performance of the tasks relative to paragraphs (h) and (i) of
Section 7 hereof on the approval of schemes and development plans of subdivision,
residential, commercial, industrial and other purposes.

Page 17 of 28


10

a

12

B

14

15

16

7

18

19

20

24

SECTION 19. Implementing Rules and Regulations. - Within sixty (60) days after the
approval of this Act, the HUDCC and the Department of the interior and Local Government
{(DILG), in consultation with the concemed government agencies, the private sector, the
League of Cities and the League of Municipalities, POs and NGOs, shall formulate the
appropriate rules and regulations necessary to effectively implement 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.

SECTION 20. Repeating Clause. ~ All pertinent provisions of the Local Government
Code and Executive Order No. 71, series of 1993, and all other laws, decrees, executive
orders, proclamations, rules and regulations, and other issuances, of part or parts thereof,
which are inconsistent with the provisions of this Act are hereby repealed, amended or
modified accordingly.

SECTION 21. Separability Clause. - ff for any reason, any provision of this Act Is

declared invalid or unconstit

tional, the remaining provisions not affected thereby shall
continue to be in force and effect.

SECTION 22. Effectivity Clause. - This Act shail take effect fifteen (15) days after ts
publication in the Official Gazette or at least two (2] newspapers of general circulation.

Approved.

Ut san a NAL
_-Page 18 of 18


. Republic of the Phifippines
House of Representatives
WwazeR-City-

FIFTEENTH CONGRESS
First Regular Session
HOUSE BILL NO. is4

Introduced by Honorable Edwin L. Olivarez

EXPLANATORY NOTE

The creation of the Local Housing Board (LHB) provides the administrative
machinery that will complement the efforts of shelter agencies to effect the full
implementation of R.A, 7279 or the UDHA and provide solution to the problem of housing

among_many_of our countrymen.—Given_the- different circumstances under-which the
shelter problem is faced by focal government units (LGUs), a body at the local leval that
knows a locality’s pecullarities would be in the best position to determine its shelter

priorities.

With its creation the provision of adequate quality but affordable social housing will
be accelerated nationwide. ‘This proposed measure gives more autonomy — more power,
authority, and responsibilities ~ to the Local Government Units (LGUs) especially concerning

the provision of housing in their respective localities.

Further, the devolved powers, e.g, the approval of subdivision plans for residential,
industrial, and other developmental purposes, will not only professionalize and stabilize the
process of approval but will also ensure greater and more effective multi-sectoral

participation, in the end hasten the development.

Under this measure, the LHB is mandated to be created in every city and 1° to 3
class municipalities for the purpose of formulating, implementing and monitoring policies on
the provision of housing and on the observance of a just and humane procedure in cases of
eviction and or demolition a the local level. However, its creation is optional at the level of

4° and 5" class municipalities.
The LHB will be tasked to formulate, develop, implement and monitor policies on the

provisions for housing and resettlement areas and on the observance of the rights of the
underprivileged and homeless te a just and humane eviction and demolition. This measure

also proposes Uié Creation of the position GF Local Housing and Urban Development Officer,
an appointive local position, which will implement the policies, plans and programs

formulated by the LHB.

Further, the measure devolves the function of clearinghouse for eviction and/or
demolition from the Presidential Commission for the Urban Poor (PCUP) to_the LHB to



‘oversee the implementation of a just and humane eviction and/or demolition pursuant to
Section 28 of the R.A, 7279 of the UDHA.

Finally, the LGUs are mandated to appropriate at least one percent (1%) of the
Internal Revenue Aliatment for the LHB.

Thus, approval of this bill is earnestly sought.

A

EDWIN L. OLIVAREZ
1" District Paranaque City



Republic of the Philippines
House of Representatives
Quezon City

FIFTEENTH CONGRESS
First Regular Session

HOUSE BILLNO, 154

Introduced by Honorable Edwin L. Olivarez

EXPLANATORY NOTE

The creation of the Local Housing Board (LHB) provides the administrative
machinery that will complement the efforts of shelter agencies to effect the full
implementation of R.A. 7279 or the UDHA and provide solution to the problem of housing
among many of our countrymen. Given the different circumstances under which the
shelter problem is faced by local government units (LGUs), a body at the local level that
knows a locality’s peculiarities would be in the best position to determine its shelter
priorities,

With its creation the provision of adequate quality but affordable social housing will
be accelerated nationwide. This proposed measure gives more autonomy — more power,
authority, and responsibilities — to the Local Government Units (LGUs) especially concerning
the provision of housing in their respective localities,

Further, the devolved powers, e.g. the approval of subdivision plans for residential,
industrial, and other developmental purposes, will not only professionalize and stabilize the
process of approval but will also ensure greater and more effective multi-sectoral
Participation, in the end hasten the development.

Under this measure, the LHB is mandated to be created in every city and 1* to 3%
class municipalities for the purpose of formulating, implementing and monitoring policies on
the provision of housing and on the observance of a just and humane procedure in cases of
eviction and or demolition a the local level. However, its creation is optional at the level of
4 and 5 class municipalities.

The LHB will be tasked to formulate, develop, implement and monitor policies on the
provisions for housing and resettlement areas and on the observance of the rights of the
underprivileged and homeless to a just and humane eviction and demolition. This measure
also proposes the creation of the position of Local Housing and Urban Development Officer,
an appointive local position, which will implement the policies, plans and programs
formulated by the LHB.

Further, the measure devolves the function of clearinghouse for eviction and/or
demolition from the Presidential Commission for the Urban Poor (PCUP) to the LHB to


oversee the implementation of a just and humane eviction and/or demolition pursuant to
Section 28 of the R.A. 7279 of the UDHA.

Finally, the LGUs are mandated to appropriate at least one percent (1%) of the
Internal Revenue Allotment for the LHB.

Thus, approval of this bill is earnestly sought.

EDWIN L. OLIVAREZ
1® District Paranaque City


Republic of the Philippines
House of Representatives
Quezon City

FIFTEENTH CONGRESS
First Regular Session

AN ACT CREATING A LOCAL HOUSING BOARD IN EVERY CITY AND
MUNICIPALITY, PROVIDING FOR ITS POWERS AND DEFINING ITS DUTIES AND
FUNCTIONS, AND FOR OTHER PURPOSES

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

SECTION 1. Short Title. - This Act shall be known as the “Local Housing Board
Act”.

SECTION 2. Declaration of Policy. - (a) Itis the policy of the State to 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) It is the policy of the State to adopt a continuing socialized housing program
that will make available at affordable cost decent housing and basic services to

underprivileged and homeless urban or rural poor dwellers.


(©) Itis the policy of the State to protect urban or rural poor dwellers from evictions

or demolitions undertaken in violation of the law or, in an unjust or inhumane manner.

(d) It is hereby declared that the territorial and political subdivisions of the State
shall enjoy genuine and meaningful local autonomy to enable them to attain their fullest
development as self-sufficient communities and make them more effective partners in the
attainment of national goals. Towards this end, the State shall provide for a more
responsive and accountable local government structure instituted through a system of
decentralization whereby local government units (LGUs) shall be given more powers,
authority, responsibilities and resources. The process of decentralization shall proceed

from the National Government to the LGUs.

(e) It is the policy of the State to promote and institutionalize the participation of
the private sector, nongovernment organizations (NGOs) and people's organizations (Pos)

in the urban and rural development process.

(A) Itis the policy of the State to require all national agencies and offices to conduct
Periodic consultations with appropriate LGUs, nongovernmental organizations and Pos and
other concerned sectors and stakeholders of the community before any project or program

is implemented in their respective jurisdictions.

SECTION 3. Definition of Terms. - For purposes of this Act, the following terms

or words and phrases shall mean or be understood as follows:


(@) Balanced Housing Requirement refers to the mandate pursuant to Section 18 of
the Urban Development and Housing Act (UDHA), whereby developers of
proposed subdivision projects shall be required to develop an area for socialized
housing equivalent to at least twenty percent (20%) of the total subdivision area
or total subdivision project cost, at the option of the developer, within the same
city or municipality, whenever feasible, and in accordance with the standard set
by the Housing and Land Use Regulatory Board (HLURB) and other existing laws;

(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 low-income
families with lower interest rates and longer amortization periods;

(a) Local Government Pabahay Program refers to the program aimed at
synchronizing and coordinating efforts of all government housing agencies
involved in assisting LGUs in their respective socialized housing projects, in the
context of Executive Order No. 143, series of 1993;

(@) 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;


(f) Local Shelter Plan Guidelines refers to a model for the preparation of local shelter
plans, as embodied in the National Urban Development and Housing Framework
(NUDHF), or that which was developed under the PHI/89/FO2 Project,
implemented by the Housing and Urban Development Coordinating Council
(HUDCC) and executed by the United Nations Centre for Human Settlements
(UNCHS);

(g) National Urban Development and Housing Framework (NUDHF) refers to the
authoritative document issued by the HLURB aimed at achieving the objectives of
the UDHA;

(h) NGO or Nongovernmental Organization is a nonprofit, voluntary organization that
is committed to the task of socio-economic development and established
primarily for service which may involve assisting citizens of peoples organization
(Po's) in various ways by educating, training or giving financial assistance to
them;

(i) PO or People’s Organization is an independent community and/or class-based
association established to protect and advance the interest of specific causes or
sectors, e.g., urban poor, labor, farmers, fishermen, women;

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

(k) Socialized Housing refers to housing programs and projects covering houses, lots
or house and lots, undertaken by national or local governments or the private
sector for underprivileged and homeless citizens, which shall include sites and
services development, financing, liberalized terms on interest payments, and

such other benefits in accordance with existing laws, rules and regulations;


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

(m) Underprivileged and homeless Rural or Urban Poor Dwellers refers 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 (NEDA) 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; and

(n) 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.

SECTION 4. Coverage. - This Act shall cover all cities and first to third class

municipalities in both urban and rural areas: Provided, That fourth and fifth class

municipalities may create their own Local Housing Board if they so desire.

SECTION 5. Mandate, - Every city and municipality covered under this Act,

through its Local Housing Board, shall formulate, develop, implement and monitor policies

‘on the provision for housing and resettlement areas and on the observance of the right of

the underprivileged and homeless to a just and humane eviction and demolition.

SECTION 6. Composition. - The Local Housing Board in a city or municipality

shall be composed of the following:

(a) The City/Municipal Mayor, as chairman;


(b) The City/Municipal Vice Mayor, as vice chairman;

(©) The Chairperson of the Sangguniang Panlungsod/Bayan Committee on Housing
and Urban Development or its equivalent, as member;

(@)_ The City/Municipal Planning and Development Coordinator, as member:

(e) A representative of the Pos in the city or municipality, as member;

(f) A representative of the NGOs operating in the city or municipality, as member;

(a) A representative of the private sector engaged in subdivision and housing
development in the city or municipality, as member.

‘A PO, NGO or private sector already represented in any local special body may be

Concurrently represented in any local housing board.

SECTION 7. Powers and Functions. - A city or municipal local housing board
shall have the following powers and functions:

(a) Prepare, based on local shelter plan guidelines and with the assistance of the
HUDCC and other concerned government agencies, local shelter plans which shall
form part of the city/municipal development plans: Provided, that public
hearings shall be conducted for the purpose;

(b) Designate at least one representative to their respective local development
councils;

(©) Assist the city/municipal development councils in the formulation of their
respective comprehensive land use plans;

(d) Approve preliminary and final subdivision schemes and development plans of
subdivisions, residential, commercial, industrial and other purposes, 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;

(e) 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;

(f) Evaluate and resolve any opposition to the issuance of development permits for
any of the projects stated in the two preceding subsections, in accordance with
the said laws and the Rules of Procedure promulgated by the HLURB incident
thereto;

(g) Designate the sites for socialized housing, subject to the requirements
prescribed by Section 8 of Republic Act No. 7279 and guidelines issued for the
Purpose;

(h) Advise the Sanggunian concern, 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 lands tax, and an additional
levy on the real property tax to constitute a Special Socialized Housing Fund
(SSHD);

(i) Recommend, for approval to 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 Republic

Act No. 7279 and its implementing guidelines: Provided, That such schemes


shall ensure that the valuation of a particular land for socialized housing purposes
shall be within the affordability levels of prospective beneficiaries;

() Recommend for approval of their respective LCEs partnership arrangements
with the national government on, but shall not be limited to, the following
programs:

(i) Housing Production Assistance, Resettlement Assistance, Local
Housing, Cost Recoverable Joint Ventures and other relevant programs
of the National Housing Authority (NHA);

(ii) Local government housing assistance programs of the Home
Development Mutual Fund (HDMF), the National Home Mortgage
Finance Corporation (NHMFC), the Home Guaranty Corporation
(HGC), and for this purpose, local housing boards shall coordinate with
the Advisory Committee created to oversee the implementation of the
local Government Pabahay Program; and

(iii) Other socialized housing projects undertaken by other national
government agencies and government-owned and controlled
corporations within their respective localities;

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

(I) Submit to the President and the Congress of the Philippines, an annual report as
Provided in Section 41 or Republic Act No. 7279; and

(m) Perform such other related functions established by law or ordinance, as

necessary to implement the mandate of LGUs under the UDHA.


SECTION 8. Local Housing and Urban Development Officer. - The housing
and urban development policies, plans and programs formulated by the Local Housing
Board shall be implemented by an appointive local official to be known as the Local
Housing and Urban Development Officer.

No person shall be appointed Local Housing and Urban Development 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 in public administration, urban planning, development studies,
economics, civil engineering, or other related course with special training in housing and
urban development programs and management from a recognized college or university,
and a first grade civil service eligible or its equivalent. He must have an experience in
housing development projects, organization of housing development projects, organization
of housing associations, management and operation of housing and shelter programs and
other related activities for at least five years in the case of the Provincial or City Housing
and Urban Development Officer, and three years in the case of Municipal Housing and
Urban Development Officer.

The appointment of the Local Housing and Urban Development Officer shall be

mandatory for all the LGUs covered under this Act.

SECTION 9. Duties and Functions of the Local Housing and Urban
Development Officer. - The Local Housing and Urban Development Officer shall:
(a) Implement the local shelter plans prepared by the Local Housing Board;

(b) Monitor the nature and progress of land development of projects

approved by the Board, as well as housing construction in the case of

house and lot packages, to ensure their faithfulness to the approved plans


their viability as an economic enterprise and social
organization;

(ill) Assist the housing associations, cooperatives 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;

(iv) Ensure the enforcement of laws, policies and
programs on housing and shelter, organization of housing
cooperatives and associations, rehabilitation of or the
viability-enhancement, particularly during and in the
aftermath of man-made and natural calamities and
disasters, to aid in their survival and, if necessary,
employ subsequent rehabilitation of these entities or
beneficiaries; and

(v) Perform such other duties and functions as may be

prescribed by law or ordinance.

SECTION 10. Generation and Mobilization of Resources. - The Local
Housing Board is hereby constituted as the primary entity tasked to advise the Local Chief
Executive (LCE) on matters of sourcing of funds for socialized housing. For this purpose,
the Local Housing Board 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 the Local Housing Board is
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
LGU concemed;

(d) Loan packages from government financing/lending institutions;

(e) Joint venture projects with private sector groups or developers; and

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

Pos.

SECTION 11. Demolition Clearinghouse. - The Local Housing Board is hereby
tasked to oversee the implementation of Section 28 of the UDHA and its implementing rules
and regulations: Provided, That just and humane eviction and demolition procedures
under Section 28 of the UDHA and its implementing rules and regulations are likewise
made applicable to rural areas.

In this regard, the Local Housing Board shall:

(a) 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;

(b) Recommend policy measures and/or undertake appropriate action to

ensure full compliance with the constitutional mandate and statutory,


requirements prior to evictions and/or demolitions _ affecting
underprivileged and homeless urban or rural poor dwellers; and

(©) Issue directives, rules and regulations, consistent with laws, as it may
deem necessary to effectively carry out the purposes of the constitutional

mandate to ensure just and humane evictions and demolitions.

SECTION 12. Compliance Report. - Before undertaking evictions and/or
Demolitions that will affect underprivileged and homeless urban or rural poor dwellers, the
city or municipality concerned, national government agencies or other proponents of
eviction and demolition activities, including employees of the judiciary, shall submit a
Compliance Report to the Local Housing Board, with a statement under oath that:

(a) Adequate consultation as defined and outlined under pertinent laws, rules and

regulations have already been undertaken with the affected residents;

(b) Adequate relocation as defined and outlined under pertinent laws, rules and
regulations, is available, ready and sufficiently supported by relocation and
resettlement funding; and

(©) The requirements and procedures prescribed under the implementing rules and
regulations of Section 28 of the UDHA, specifically on the Pre-Relocation,
Relocation and Post-Relocation Phases of eviction/demolition activities have been
or shall be observed.

The Compliance Report shall include a certified list of families to be evicted and/or

relocated. The Local Housing Board shall have the power to review the Compliance Report

and approve or disapprove the same.


SECTION 13. Meetings and Quorum. - The Local Housing Board shall meet at
least once a month or as often as may be deemed necessary. The presence of the
chairman or the vice chairman and a majority of the members of the Board shall constitute
a quorum.

Special meetings may be called by the chairman or by a majority of the members,
with written notice, together with the agenda of the meeting, served upon each member at
least one day before the intended meeting.

The chairman or, in his absence, the vice chairman shall preside over the board

meetings.

SECTION 14. Compensation and Remuneration. - Members of the Local
Housing 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 concemed, subject to existing accounting and auditing rules and regulations.

This does not preclude cities and municipalities from mobilizing other possible
funding sources for the compensation and remuneration of members of the local housing

board who are not government officials or employees.

SECTION 15. Budget. - The cities and municipalities shall appropriate at least
one percent (1%) of their Internal Revenue Allotment for the year for the operations and

activities of the Board.

SECTION 16. Penalties. - Failure to submit the Compliance Report as required

by Section 12 of this Act, or any act of misrepresentation or fraud in connection with any


information contained in a submitted Compliance Report, or unjustified failure or refusal of
the Local Chief Executive (LCE) 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 such omission, misrepresentation, fraud or unjustified failure or refusal to:

(a) disciplinary action under Book 1, Title Two, Chapter 4 of the Local Government

Code; and/or

(b) prosecution under the penalty clause of the UDHA.

For this purpose, LCEs of cities and municipalities shall constitute such Local Housing
Boards within ninety (90) days from the effectivity of this Act. Failure to constitute the
Local Housing Board within this prescribed period shall be prima facie evidence of

unjustified failure or refusal to do so.

SECTION 17. Transitory Provisions. - Cities and municipalities with existing
local housing and urban development boards or similar entities are hereby given ninety
(90) days from the effectivity of this Act within which to amend their respective ordinances
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.

SECTION 18. Implementing Rules and Regulations. - Within sixty (60) days
after the approval of this Act, the HUDCC and the Department of the Interior and Local
Government (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 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

(©) Accreditation and selection of representatives of the private sector, NGOs and

POs to the Local Housing Board.

SECTION 19. 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;
(©) Title Five, Book III of the Local Government Code is hereby amended by the inclusion of
@ new Article on the Local Housing and Urban Development Officer to be designated as
Article Twenty-One and a new section under it to be designated as Section 491 to provide
for the qualifications, and powers and duties thereof as enunciated in this Act;
(d) Executive Order No. 71, series of 1993 is hereby amended insofar as the assumption
by the Local Housing Board of the functions devolved from the HLURB to LGUs; and
(e) 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.

SECTION 20. 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.


SECTION 21. &ffectivity Clause. - This Act shall take effect upon its publication
in at least two newspapers of general circulation.

Approved.


Republic of the Philippines
HOUSE OF REPRESENTATIVES,
Quezon City
FIFTEENTH CONGRESS

First Regular Session

House Bit No, 116

Introduced by Hon. Rodolfo G. Biazon

EXPLANATORY NOTE

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

However, 14 years have passed since the passage of the UDHA and we still do not
have a national registry of socialized housing beneficiaries. Many of our LGUs have also
failed to do the three other functions that have been given them under the UDHA.

Clearly, there is a need for a specialized body in our LGUs that shall ensure the
faithful and proactive execution of housing programs at the local level. A yoid 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.

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

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


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

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

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

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

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

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

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

LEO
Represdafative
Lone District, Muntinlupa City


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS
First Regular Session

House Bill No.__ 1161

Introduced by Hon. Rodolfo G. Biazon

AN ACT

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

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

Section 1. Short Title. - This Act shall be known as the “Local Housing Boards Act.”
Sec, 2. Declaration of Policy. - It is hereby declared the policy of the State to:

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

4

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

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

d

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


©) 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

1) 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.

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

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

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

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

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

©) Non-Government Organization refers to a non-stock, non-profit domestic
corporation or organization as defined under Section 34 (H) (2) (¢) of the Tax
Code organized and operated exclusively for scientific, research, educational,
character building, youth and sports development, health, social welfare, cultural
of 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;

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


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

’) 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;

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

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

!) 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
©) Local Housing Office refers to the implementing body of the local housing board.

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

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

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

4) The City/Municipal Planning and Development Coordinator as Member;
©) The City/Municipal Engineer as Member;

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

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


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

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

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

See. 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 agei
prepare a Local Shelter Plan which shall form part of the city/municipal
development plan: Provided, That such plan shall be consistent with the
city/municipal land use plan: Provided further, That public hearings shall be
conducted for the purpose;

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

4) 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 Blg. 220 and its implementing
standards, rules and regulations;

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

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

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


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

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

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

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

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

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

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

b) Assist the city/municipal development councils in the formulation of their
respective comprehensive land use plans;

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

4d) Ensure that the balanced housing requirements as provided in Section 18 of R.A.
7279 and its implementing rules and regulations are implemented and enforced;

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

£) 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

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

See. 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.

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

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

b) Bond flotation and other credit financing arrangements;


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

4) Loan packages from government financing/lending institutions;

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

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

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

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

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

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

See. 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

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

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


a. The Local Government Unit shall:
1) Identify and prioritize areas for housing development;
2) Plan on the total housing need of its constituents;

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

4) Assist in the conduct of verification survey;

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

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

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

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

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

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

5) Identify and recommend housing projects/programs which can be
implemented and funded through alternative schemes; and

©) Draw-up guidelines as well as Terms of Reference to cover the
implementation of identified priority housing projects.

¢. 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


3)

4)

5)

6)

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

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;

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;

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

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

d. The PO and NGO representatives shall:

1)

2»

3)

4)

5)

6)

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

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

Assist the Local Housing Board in processing applications and documents;
Provide support to the focal housing board in the community relations, social
preparations and information disseminations and motivation activities at the

identified housing sites;

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

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

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

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

b) prosecution under the penalty clause of the UDHA.


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

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

Sec. 15. Implementing Rules and Regulations. - Within sixty (60) days after the
approval of this Act, the HUDCC and the DILG, in consultation with the 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

©) 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.

See. 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.

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

Approved,

10


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Batasang Pambansa, Quezon City

FIFTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. _ 3278

INTRODUCED BY REP. JOSEPH VICTOR G. EJERCITO

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. ( -.

JOSEPH VICTOR G. EJERCITO


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Batasang Pambansa, Quezon City

FIFTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. _8e 78

INTRODUCED BY REP. JOSEPH VICTOR G. EJERCITO

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
demolitions undertaken in violation of the law;

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

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


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

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

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

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

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

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 (R.A. No. 7279);

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

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

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

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

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

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

a) Assist the Board in the preparation of the local shelter plan;
b) Assist the city/municipal development councils in the
formulation of their respective comprehensive land use plans;

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;

) 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

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

SEC. 7. Local Housing Officer. - The \ocal 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 of
the implementing rules and regulations of this Act. Local Chief
Executives of fourth to sixth class municipalities are given a minimum
of two (2) years from the promulgation of the implementing rules and
regulations of this Act to constitute their Boards. Failure to constitute
the Board within this prescribed period shall be prima facie evidence of
unjustified failure or refusal to do so.


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

SEC. 15. Implementing Rules and Regulations. - Within
sixty (60) days after the approval of this Act, the HUDCC and the
DILG, in consultation with the 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

¢) 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,


FOR

THRU

RE

DATE

Be Nev acSen sat
Republic of the Philippines EOF THE DIRECTOR-C1S6
HOUSE OF REPRESENTATIVES
‘Quezon City. Metro Manila

15" Congress

1# Regular Session

THE HONORABLE SPEAKER

THE DEPUTY SECRETARY GENERAL
FOR COMMITTEE AFFAIRS

SPOT REPORT ON THE MEETING OF THE COMMITTEE
ON HOUSING AND URBAN DEVELOPMENT HELD ON MARCH 23, 2011 AT
RVM CONFERENCE ROOM NOS, 1 & 2

23 MARCH 201)

A. Approval of Committee Reports:

1
2.
3

Coramittee report on the substitute bill HB Nos. 154, 1161 & 3278 (Creation of A Local
Housing Board);

Committee report on HB No. 4101 in consolidation with HB No. 2145 (Anti-Professional
Squatters and Squatting Racketeer/s or Syndicates Drive Reforms Act of 2011); and
Committee report on the substitute bill to HB Nos. 1041, 1818, 2907, and 3040

(Prescribing the Mechanisms to Facilitate the Disposition of Government-Owned Lands
for Socialized Housing}

8. Deliberation on Measures:

»

HR No, 535 (Urging the Full Implementation of the Local Housing Program); HB No. 3512
(Amending the Comprehensive and Integrated Shelter Financing Act to Implement
Free Housing Projects in Selected Urban and Urbanizable Areas); and Priviege speech
of Rep. Rodotfo Valencia re: Guidelines of the Local Housing Program

2. Major issues/pasitions and views aired

+ the National Housing Authority and the Housing and Urban Development
Coordination Council expressed the’ full suppor to the foregoing measures,
suggesting that there is a need to review Ihe non-cost recoverable provision of
HB No, 3512 and for the Department of Budget and Management to release the
remaining allocation for the Local Housing Program (LHP) which amounts to
more than P2 Billion

+ the National Housing Authority suggested to amend the Comprehensive and

Integrated Shelter Financing Act to accommodate party-tst representatives in
the allocation of LHP


b. Agreements reached/Decisions made

+ the committee requested the National Housing Authority to look into the
possibility of utilizing the accrued interest of the LHP trust fund to augment the
allocation for congressional districts in need of funds for relocation and

reseitiement

«the committee deterred further deliberation subject to the submission of a
position paper on the matier by and the appearance of a representative each
of the Department of Budgel and Management and the Depariment of Rnance
in a subsequent meeting that wil be called for the purpose

2. HB Nos. 3188 and 3189 (Reauiring Developers of Condominium Projects to Develop an
three tox Socialized Housing); HB No. 3451 (Amending Section 18 of RA 7279}; and HB No.
4371 (Amending Sections 18 and 21 of RA 7279 oF the UDHA to Include the Construction

of Education Facilities}

a. Major issues/positions and views aired

«all the agencies invited fo the meeting, as well as the Subdivision and Housing
Developers Association, posed no objection to ihe passage of the proposed
measures with the exception of the Chamber of Real Estale and Builders
Jassociation which suggested instead the imposition of a new tox for socialized
housing or the equitable distribution among developers of high-end real estale
properties such as hotels, golf courses, and resorts the burden of shouldering the
20% requirement for developers to develop an area for socialized housing

+ Rep. David Kho svagested that HB Nos. 3188 and 3187 be made applicable only
fo high-end condominium developers and not to low-end condominivm

developers

b. Agreement reached/Decision made

«the Commitice approved the crafting of a substitute bill on the proposed

measures

Prepared by:

Cammittee Secretary

cc: The Depuly Specker
The Chaiperson, Committee on Rules,
The Secretary General

Noted by:

ATTY. MITAIGAYUNA, JR
Service Dire:

me Exacufive Director. CAD
The Deputy Executive Director, CAD
the Service Director. CASS


FACT SHEET
- 4565

House No.
{As Approved on March 23, 2011)

CREATING A LOCAL HOUSING BOARD IN EVERY CITY AND 15" TO
3°° CLASS MUNICIPALITY

Introduced by: REPS. OLIVARES, CALIMBAS-VILLAROSA, BIAZON, SARMIENTO,
EJERCITO, CASTELO, HERRERA-DY, OCAMPO, TEODORO, MAGSAYSAY(M.M.),
VALENCIA, LEONEN-PIZARRO, BAGATSING, ACHARON, KHO, LICO, SY-ALVARADO, DE
JESUS AND PADILLA

Committee Referral: COMMITTEE ON HOUSING AND URBAN DEVELOPMENT
Committee Chairperson: REP. RODOLFO G. VALENCIA

OBJECTIVES:

* To provide the administrative machinery that will complement the efforts of shelter
agencies to effect the full implementation of R.A. 7279 or the Urban Development
and Housing Act as part of the solution to the problem of homelessness among
many of our countrymen

* To accelerate the provision of adequate quality but affordable social housing
nationwide with a body at the local level that knows a locality's peculiarities and
which is in the best position to determine its shelter priorities given the different
circumstances under which the shelter problem is faced by local government units
(LGUs)

* To give more autonomy - more power, authority, and responsibilities — to the
LGUs, especially conceming the provision of housing in their respective localities

* To ensure greater and more effective multi-sectoral participation with the devolved
powers, e.g. the approval of subdivision plans of all socialized housing projects,
which will also professionalize and stabilize the process of approval

KEY PROVISIONS:

“= Mandates the creation of a Local Housing Board(LHB) in every city and 1% to 3
class municipalities, provided that 4" and 5" class municipalities may create their
own LHB if they so desire for the purpose of formulating, implementing and
monitoring policies on the provision of housing and on the observance of a just
and humane procedure in cases of eviction and/or demolition at the local level

*. Creates the position of a Housing and Urban Development Officer who will
implement the policies, plans and programs formulated by the LHB.


* Devolves the function of clearinghouse for eviction and/or demolition from the
Presidential Commission for the Urban Poor (PCUP) to the LHB to oversee the
implementation of a just and humane eviction and/or demolition pursuant to
Section 28 of R.A. 7279 or the UDHA.

« Mandates the establishment of a Special Housing Trust Fund which shall come
from but not limited to:

* an appropriation from the internal Revenue Allotment the amount of which
shail be determined by the LGU

» the proceeds of the collection of the additional one-half percent (0.5%) tax
on real estate

» funds generated from various sources intended for housing and other
related development programs

> payments, remittances, accrued interest, and other fees generated from
housing related activities

RELATED LAWS:

* Republic Act No. 7279 - Urban Development and Housing Act

* Republic Act No. 7160 — Local Government Code

* Executive Order No. 71, Series of 1993 — Devolving the Powers of the HLURB to
Approve Subdivision Plan to Cities and Municipalities Pursuant to RA No.7160

CHUDAS/committee report? HB/ 5