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

Sixteenth Regular Session
First Regular Session

House Bill No. _ 4207

Introduced by 1BAP Party List Representative Silvestre H. Bello III

EXPLANATORY NOTE

The Constitution, Article 13, Section 9 reads:

"Sec. 9 The State shall, by law, and/ or the common good, undertake in
cooperation with the private sector, a continuing program, of urban land
reform and housing which will make available at affordable cost decent
housing and basic services to underprivileged and homeless citizens in urban
centers and resettlement areas. It shall also promote adequate employment
opportunities to such citizens. In the implementation of such program(s), the
State shall respect the rights of small property owners."

Since the enactment of Republic Act No. 7279, also known as the Urban
Development and Housing Act of 1992, we are still facing a worsening problem of
urban blight and homelessness in the country. At present, we have an estimated
housing backlog of around three (3) to four (4) million housing units. The problem
does not end here.

While we face a huge shelter backlog, it is ironic that there are government
housing units that remain unoccupied to this day. While many of our poor
countrymen continue to suffer homelessness, we have thousands of housing units
lying idle. These idle government assets were acquired with the people's money and
represent wastage of scarce government resources.

Another key concern is the quality of our built environments, specifically
settlements and buildings that serve as the stage for all types of human activities
We know all too well that our built environment is a model of non-compliance with
the very laws passed to protect both the natural and built environments. There is
clear and pressing need to control all sorts of irrational and illegal developments at
this time as the effects of over four (4) decades of runaway development has already
taken a very heavy toll on our daily existence

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This bill proposes to create the Department of Shelter, Settlements, Urban
Development and Disaster Rehabilitation (DSSUDDR) that is envisioned to put
direction and order in the built environment in general, and the shelter sector in
particular, to encompass settlements and all types of buildings on Philippine soil,
water and airspace. It shall be the primary government agency that will facilitate and
ensure the availability of affordable shelter to our people, especially those who need
it most and to ensure that our settlements and buildings are all built in full
accordance with law, are sustainably designed, climate change-adaptive and
disaster-resilient. By creating a full time Department of Shelter, Settlements, Urban
Development and Disaster Rehabilitation, the proposed measure seeks to integrate
all shelter and urban development policies, plans, programs and projects to expedite
the delivery of decent, affordable and sustainable shelter and urban development
programs and projects.

It is for the foregoing reasons that early passage of this bill is earnestly
requested.

SI f LO Ill

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

Sixteenth Regular Session
First Regular Session

House Bill No.__ 4207

Introduced by 1BAP Party List Representative Silvestre H. Bello II!

AN ACT
DEFINING THE VISION AND POLICIES OF GOVERNMENT IN THE HOUSING,
URBAN DEVELOPMENT AND DISASTER REHABILITATION SECTORS,
CREATING THE DEPARTMENT OF HOUSING SHELTER, SETTLEMENTS AND
URBAN DEVELOPMENT, DEFINING ITS MANDATE, POWERS AND
FUNCTIONS, AND FOR OTHER PURPOSES.

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

CHAPTER I
SHORT TITLE, VISION, POLICY AND PRINCIPLES

SEC 1. Short Title. This Act shall be known as the "Department of Shelter,
Settlements, Urban Development and Disaster Rehabilitation Act.”

SEC. 2. Declaration of Vision and Policies. The State shall pursue the
realization of a modern, humane, economically viable and environmentally
sustainable society where the urbanization process is manifest in towns and cities
being centers of productive economic activity, led by market forces; where urban
areas have affordable shelter, bases for human habitation and activities, sustainable
physical and social infrastructure and services facilitated under a democratic and
decentralized system of governance; where urban areas provide the opportunities for
an improved quality of life and the eradication of poverty; and where there is a high
degree of complementarity between urban and rural communities.

SEC. 3. Principles of Sector Governance. The stipulated vision and policy
shall be pursued and realized in accordance with principles that will guide the
definition of government functions in the sector; its relationship with the private
sector; the vertical compartmentalization of government functions among levels of

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governance, national and local; and the horizontal compartmentalization of national
government functions, These principles that will define and delineate the functions,
responsibilities and accountabilities of various national government agencies are as
follows:

3.1. Steering Role of the National Government in the Sector. The national
government shall perform a steering role in the shelter and urban
development sector. In this regard it shall:

a) strengthen its role in guiding, mobilizing and facilitating in
housing and urban development. It shall define the urban
development vision and provide a shelter and urban
development framework that will guide the investments and
activities of the private sector, It shall provide policies on
spatial integration, urbanization, urban environmental
management, urban development and redevelopment,
regeneration, urban land management, shelter development
and other related concerns to facilitate private enterprise and
participation, It shall formulate and enforce a minimum set of
regulations that will ensure the establishment of a level playing
field in the provision of urban infrastructure and services and in
the locational choices of investors, and prevent urban decay,
congestion, diseconomies of scale and environmental
degradation of urban areas; and

provide policies that will mobilize public and private sector
resources toward a self sustaining shelter finance system.

b)

3.2 Continuing Devolution of Functions to Local Governments. The
national government and local governments shall act as partners in
shelter and urban development. Functions, and the corresponding
authority and accountability shall be continuously devolved to local
government units, such devolution to be guided by the following,

a) The delineation of functions between the national government
and local governments shall be such that inefficiencies are
removed, access to public services and official documents is
improved, and plans, programs and services are responsive to
local needs and opportunities. For this purpose, functions that
are location specific in their benefits and costs shall, to the
extent possible, be devolved to local governments.

b) The determination of the proper level of government to which a

function will be devolved shall be determined by the extent of

the geographical effects of the benefits and the cost of
undertaking such function.

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3.3

3.4

Local governments shall implement national government
policies in their respective localities. Location specific functions
that are to be devolved to local governments are those that
relate to the provision of public goods and services. Local
governments shall to the extent possible, encourage the
private sector to assume primary responsibility for production
of public goods, and limit their functions to enforcing standards
and regulations or providing incentives

°)

d) Local governments shall have full autonomy in shelter and
urban development planning and management consistent with

national policies, strategies and regulatory framework.

e)

The national government shall be the facilitator, independent
monitor and performance evaluator. National government shall
formulate national standards and rules to guide local
governments in the formulation of localized standards. The
promulgation, implementation and enforcement of standards
and regulations will be undertaken by local governments.

Maximum Participation of the Private Sector and Communities in
Shelter and Urban Development. The government shall provide
policies to maximize private sector participation in shelter and urban
development and to mobilize public and private sector resources
toward a self-sustaining shelter and urban development finance
system.

The national government, through local governments, shall ensure
that communities are involved in the formulation of shelter and urban
development policies and plans that will impact upon them, their
livelihood and their living conditions. Full community participation in
shelter and urban development policies, programs and projects of
government shall be encouraged.

Responsiveness to the shelter needs of the urban poor communities.
The government shall directly address the concerns and needs of the
urban poor communities by formulating the policies, providing and
mobilizing resources, and designing as well as implementing
programs and intervention that will address urban homelessness and
unemployment. Government shall facilitate the establishment of a
finance system that enables all sectors of society to have the
opportunity to access funds and facilitate the provision of adequate
shelter, security of tenure and appropriate infrastructure, where

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subsidies, if provided, are transparent in nature and targeted at those
in need.

3.5 Clear Horizontal Compartmentalization and Coordination of Functions
Among National Government Agencies. The Department of Shelter,
Settlements and Urban Development, created under this Act, shall be
the primary entity for policy formulation and coordination of all shelter
and urban development functions. It shall define the delineation of
shelter and urban development functions and responsibilities of and
relationship among national government agencies to promote
efficiency and effectiveness, clarify accountability, and ensure
synchronization.

3.6 Policy and Coordinating Role of the Department of Shelter,
Settlements and Urban Development. The role of the Department is
to support the accomplishment of the sector vision, and, in particular,
encourage more opportunities to help improve the lives of the urban
poor.

CHAPTER 2
DEFINITION OF TERMS

SEC 4. Definitions. As used in this Act, the following terms shall mean:

4.1. attachment - refers to the lateral relationship between the Department
and the attached agency or corporation for purposes of policy and
program coordination and as further defined under the administrative
code.

4.2. buildings - refers to all types of structures that are planned, designed
and constructed in full accordance with law, for the primary purpose
and function of human habitation and for other related, supportive
and regulated occupancies.

4.3 Climate Change - a significant and lasting change in the statistical
distribution of weather patterns over periods ranging from decades to
millions of years. It may be a change in average weather conditions
or the distribution of events around that average e.g. more or fewer
extreme weather events, Climate change may be limited to a specific
region/s in the Philippines or its western or eastern seaboard, or may
occur across the entire country, the Pacific Basin or the West
Philippine Sea.

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45

46

47

48

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Climate Change-Adaptive - refers to the characteristic or quality of a

building and/or development arising from any action taken to

minimize the adverse effects or to take advantage of any beneficial

effects of climate change. It can involve

a) building adaptation capacity (creating information and
conditions that enable adaptation actions to take place); or

b) delivering adaptation actions (taking actions that will help to
reduce vulnerability to climate risks or exploit opportunities)

Commission - refers to the reconstituted Housing and Land Use
Regulatory Board.

devolution - the transfer of responsibility, authority and accountability
for the performance of defined functions from the national
government to local governments.

disaster — refers to a natural or man-made hazard that has come to
fruition, resulting in an event of substantial extent causing significant
physical damage or destruction, loss of life, or drastic change to the
environment. A disaster is also defined as any tragic event with great
loss of lives and properties, stemming from events such as
earthquakes, floods, catastrophic accidents, fires, or explosions.

disaster preparedness (or emergency management) — refers to an
interdisciplinary field of human endeavor dealing with the strategic
organizational management processes used to protect critical assets
of from hazard risks that can cause disasters or catastrophes, and to
ensure the continuance of the organization within their planned
lifetime. Assets are categorized as either living things, non-living
things, cultural or economic. Hazards are categorized by their cause,
either natural or human-made. The entire emergency management
process is divided into four (4) sub-fields to aid in identification of the
processes, normally dealing with risk reduction, preparing resources
to respond to the hazard, responding to the actual damage caused by
the hazard and limiting further damage e.g. emergency evacuation,
quarantine, mass decontamination, etc., and returning conditions as
close as possible to the state before the hazard incident. The
definition necessarily encompasses the concepts of disaster
response and mitigation

disaster-resilient - refers to the quality of a building/ structure and its
grounds/ site or by its plans and designs, generally characterized by
the reduced probability of failure of its architectonics, the reduced
consequences due to the failure of its architectonics, and reduced

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time to the restoration of the architectonics to full operating/ beneficial
status.

4.10 disaster response - refer to acts or a series of actions taken by the
public and private sectors, based on an agreed plan of action, to
specifically address the needed relief efforts (encompassing aid,
rescue and recovery, etc.) and rehabilitation efforts (encompassing
reconstruction, relocation and resettlement) in response to the effects
of extreme/ extraordinary events such as super-typhoons,
earthquakes, war, etc.

44

extreme/ extraordinary events - refers to natural or man-caused
events that cause widespread destruction to property and/or loss of
life; these include earthquakes, tsunamis, volcanic eruptions, very
strong typhoons, heavy flooding, extensive fire (urban/ grass/ forest),
war, invasion, pestilence, epidemics and the like.

4,12 informal structure/ settlements - refers to a building/ structure or a
group of dwellings on a public or private property that have been
illegally constructed, occupied, operated and maintained without
permits from the local government unit (LGU) Office of the Building
Official (OBO) and without any form of permission from the owner of
the property.

4.13 informal settler — refers to an individual natural person who resides in
an illegally constructed, occupied, operated and maintained building
or dwelling that is sited within an informal settlement

4.14 urban land management - refers to the range of government
interventions, including policies, incentives, regulation and titling, land
use planning and zoning, land development, public information and
conflict resolution that will promote the optimization and most efficient
use of urban land, including appropriate land valuation to achieve
efficiency in use, promote access, support economic productivity,
ensure sustainable development and protect individual rights

4.15 land use plan - refers to the document, formulated by the locfijal
governments in consultation with its stakeholders, that defines or
provides guidelines on the allocation, utilization, development and
management of all lands within a given territory or jurisdiction
according to the inherent qualities of the land itself and supportive of
economic, demographic, socio-cultural, administrative and
environmental objectives. The land use plan essentially refers to the
uses for the surface of the land but must incorporate the parallel

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water use and air use plans, as well as the subsurface plan, as
applicable.

4.16 public domain ~ shall refer to all portions of physical developments for
human occupancy or use as envisioned under this act, that shall only
be for the full use and enjoyment of the public and that shall never be
used for private benefit or enjoyment. This necessarily includes all
forms of development or use rights for all types of designated public
spaces such as parks and opens spaces, road rights-of-way
(RROWs) and similar rights-of-way (ROWs) for transportation and
utilities, mandated legal easements and waterways and the like,

4.17 reconstruction - refers to the act or process of again building
something that was damaged or destroyed for whatever cause or
combinations of causes

4.18 rehabilitation — refers to the act of restoring a development to a useful
and beneficial state, as through reconstruction.

4.19 relocation — refers to the act of establishing or laying out an existing
development from an old location to a new site, usually occasioned
by the effects of an extreme/ ordinary event or by imminent threats or
hazards to the occupants of the existing development.

4.20 resettlement - refers to the act or instance of a population settling or
being settled in another site

4.21 secondary mortgage market - refers to the system, which entails
purchase, acquisition, discounting, or refinancing of retail loan and
mortgage packages or other similar instruments. Once purchased
these instruments in turn are traded in the financial market through
the issuance and or sale of bonds, promissory notes, debentures,
conveyances, and other financial instruments or participation therein,
backed by the same pool of mortgages and other assets.

4.22 shelter - refers to the system and its components which establish the
residential quality of life, including housing, all classes of buildings or
vertical developments and their grounds/ settings and environs,
utilities, access to social services and other community facilities,
security, and other aspects related to an individual's residence.

4.23 site plan — invariably referred to as the master plan, master
development plan or site development plan, refers to a physical
translation of the consolidated solution of the spatial problem to
benefit a specific group of occupants/ users of a building or a group of

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buldings and their respective bounded sites as settings for such
structures.

4.24 sustainable design - refers to the philosophy of designing physical
objects, the built environment and services to substantially comply
with the principles of economic, social and ecological sustainability,
without compromising natural and other resources that must be
bequeathed to future generations.

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

4.26 urban development planning - also called city planning or town
planning, is a process that involves the planning of diverse elements
that comprise an urbanized area, including its physical infrastructure,
environment, [housing] shelter, transportation, utilities and
management of land use and urban growth.

4.27 urban renewal or regeneration - the process of planned renewal,
physical and socio-economic revitalization of outworn, old, derelict
areas of towns and cities, as well as preservation of historical assets
through redevelopment and rehabilitation.

4.28 zoning ordinance - refers to the set of rules, regulations and specific
procedures and requirements, including the Official Zoning Map/s
(OZMs), duly promulgated, implemented and enforced by the local
government, that will guide land use, land development and the
development of the built environment as well as the conservation and
management of the natural environment, within the jurisdiction of the
local government.

CHAPTER 3
DEPARTMENT OF SHELTER, SETTLEMENTS AND URBAN DEVELOPMENT

SEC. 5. Creation of the Department of Shelter, Settlements, Urban
Development and Disaster Rehabilitation. There is hereby created the
Department of Shelter, Settlements, Urban Development and Disaster Rehabilitation,
hereinafter referred to as the Department.

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SEC. 6. Powers and Functions. The Department shall perform the following

functions:

6.1. formulate the national urban development and shelter policy and strategy
in coordination and consultation with the stakeholders, and ensuring its
consistency with the national development plan;

6.2 formulate the urban development and shelter planning framework,
establish and operate a national urban development and shelter planning
system, and develop the necessary planning, housing and building
design guidelines, procedures and urban development standards that will
define and delineate the roles of all stakeholders, and guide the
planning, design, standards localization, promulgation and enforcement
of rules, and service delivery programs of national government and local
governments, and facilitate private sector investment;

6.3 formulate [housing] shelter finance policies, and recommend and
facilitate the development of mechanisms that promote the establishment
of a self-sustaining private sector-led [housing] shelter finance system;

6.4 formulate and implement a shelter program for urban poor communities
that will promote their social and economic welfare, and mobilize
resources and encourage stakeholder participation in the provision of
urban services for the poor;

6.5 provide assistance to and capability building of local governments in
urban development, urban redevelopment and urban management and
in the planning and design of all classes of buildings on land, water or
air, their sites and environs, in support of national policies and strategies
in the sector, as well as strengthen the role of independent component
cities and provincial governments as the primary entities for urban
development planning and management at the local level;

6.6 develop and establish a sector performance monitoring and assessment
mechanism, and monitor and independently report on the performance of
the sector, national government agencies, and local governments in
[housing] shelter and urban development to enable continuing
improvements in sector policy and strategy formulation;

6.7 delineate areas for priority development as urban renewal areas and
prepare programs for their regeneration;

6.8 support devolution and decentralization where local governments in
partnership with communities, non-government organization and private
groups assume the functions of urban renewal and regeneration;

6.9 exercise administrative investigatory powers over local governments to
ensure their faithful compliance with [housing] shelter and urban
development laws, standards and guidelines, as well as their judicious
and fair application of local housing] shelter and urban development and
[housing] shelter-related ordinances, and require the submission by local
governments of pertinent documents and information, as may be
necessary in the judicious and effective conduct of investigation;

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6.10 develop and implement the comprehensive and integrated [housing]
shelter program provided for under this act, to formulate and enforce
general and specific policies for [housing] shelter development and
resettlement and to promote [housing] shelter development by providing
technical assistance;

6.11 prescribe guidelines and standards for the reservation, conservation and
utilization of public lands identified for housing, shelter, settlement and
resettlement;

6.12 exercise the right of eminent domain or acquire by purchase privately
‘owned lands for purposes of [housing] shelter development, resettlement
and related services and facilities;

6.13 develop and undertake [housing] shelter development and/or
resettlement projects through joint ventures or other arrangements with
public and private entities;

6.14 discharge all responsibilities of the government, on behalf of the
department, as may arise from treaties, agreements, and other
commitments on [housing] shelter and resettlement to which it is a
signatory, including the determination of forms of assistance for shelter
and housing development to be extended through multilateral or bilateral
assistance programs;

6.15 purchase, acquire, sell, discount, refinance, or otherwise deal in home
mortgages or participations therein under such terms and conditions as
may be prescribed by the board of directors of the corporation and to
own, lease, purchase or otherwise acquire, sell or otherwise dispose of,
property, real or personal, as may be necessary and appropriate for the
conduct of its business;

6.16 enter into and perform such contracts with any person or entity, public or
private, as may be necessary, proper or conducive to the attainment or
furtherance of the objectives and purposes of this act and to receive
donations, grants, and bequests and utilize the same for the attainment
of its objectives. such donations, grants and bequests shall be exempt
from the payment of transfer taxes and be fully deductible from the gross
income of the donor or grantor for income tax purposes;

6.17 promulgate such rules and regulations and to do and perform any and all
things as may be necessary and proper to carry out its responsibilities,
powers and functions under this act;

6.18 coordinate the policies and programs of attached agencies, and

6.19 perform such other related functions as may be mandated by law.

SEC. 7. Mandate. The Department shall be the primary national government
entity responsible for the management of shelter and urban development. It shall be
the main planning and policy-making, program coordination, and performance
monitoring entity for all housing and urban development concerns

CHAPTER 4

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DEPARTMENT PROPER

SEC. 8. Composition. The Department shall consist of the Offices of the
Secretary, the Senior Undersecretary, undersecretaries and assistant secretaries,
the department services, bureaus, regional offices, the attached agencies, and their
constituent units.

SEC. 9. The Secretary. The Secretary shall:

(1) advise the President on the promulgation of rules, regulations, and
other issuances relative to matters under the jurisdiction of the
department;

(2) establish policies and standards for the efficient and effective
operations of, the Department in accordance with the approved
programs of the government;

(3) promulgate rules, regulations and other issuance necessary in
carrying out the Department's mandate, objectives, policies, plans,
programs and projects;

(4) exercise supervision and control over all functions and activities of
the Department;

(5) delegate authority for the performance of any administrative or
substantive functions to subordinate officials of the Department; and

(6) perform such other functions as may be provided by law or assigned
by the President.

The Secretary shall also serve as an ex officio, non-voting member of the
National Economic and Development Authority (NEDA) Board, the governing boards
of the Social Security System (555), the Government Service Insurance System
(GSIS) and the Public Estates Authority (PEA). The Secretary shall be a member of
the NEDA's Committee on Infrastructure (INFRACOM), of the Social Development
Committee (SDC) AND OF THE NDRRMC. The Secretary shall be a member of the
body authorized to formulate, prescribe, or amend guidelines under Republic Act No.
6957, otherwise known as the Build-Operate-Transfer Law. Further, the Secretary
shall be the chairperson of the governing boards of the National Housing Authority
(NHA), the Home Development Mutual Fund (HDMF), the Home Guaranty
Corporation (HDC) and the National Mortgage Finance Corporation (NHMFC)

SEC. 10. The Senior Undersecretary, Undersecretaries and Assistant
Secretaries. - The Secretary shall be assisted by a Senior Undersecretary,
Undersecretaries and such Assistant Secretaries as may be necessary and allowed
by law or organizational policy of government. The Senior Undersecretary,
Undersecretaries and Assistant Secretaries shall be career offices and shall be
appointed by the President upon the recommendation of the Secretary. They shall
perform the powers and functions as provided for in Section 10 & 11, Chapter 2,
Book IV of the Administrative Code of 1987. The Secretary is hereby authorized to

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delineate and assign the respective functional areas of responsibility of the Senior
Undersecretary, Undersecretaries and assistant secretaries.

SEC. 11. Departmental Services Office. The Departmental Services Office,
under the Office of the secretary, shall be headed by an Assistant Secretary, and
shall have the following services: Financial Management Service, Administrative
Service, Legal and Legislative Service, Research and Development Service, Public
Relations and Information Service, and Information and Communications
Technology Service.

SEC. 12. Financial Management Service. The Financial Management
Service shall:

a) formulate the medium-term and annual expenditure program for the
Department and prepare, execute and administer the Department's
annual budget;

b) develop and implement approaches, methodologies and procedures
for ensuring efficiency in the allocation and utilization of budgetary
and other resources of the Department;

©) provide accounting, financial management, disbursement and
cashiering services to the Department and ensure the submission of
the appropriate financial and physical performance reports and
financial statements;

d) monitor and make recommendations on the financial and physical
performance of the Department's programs, projects and activities;
and

) perform such other related functions as may be assigned by the
Secretary

SEC. 13. Administrative Service. The Administrative Service shall provide
the Department with efficient and effective services relative to personnel, human
resources development, records management and custodial work, supplies and
inventory management, procurement, physical assets management, and other
related administrative functions as may be assigned by the Secretary.

SEC. 14. Legal and Legislative Service. The Legal Service shall:

a) provide the Department, its officials and personnel with legal
counseling services;

b) provide assistance to the Secretary in handling cases affecting the
Department and in the investigation of administrative cases involving
Department personnel;

c) provide assistance to the Secretary and other Department personnel
in the preparation of legislative proposals and legal issuances
affecting the sector or the Department;

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d) review and make recommendations to the Secretary on the legal and
legislative implications of plans, programs and activities affecting the
sector or the Department; and

) perform such other related functions as may be assigned by the
Secretary.

SEC. 15. Research and Development Service. The Research and
Development Service shall:

a) formulate and implement a research and development agenda and
mobilize public and private sector resources to generate new
knowledge; develop and/or adopt new technologies; identify and
design new products and services, to support continuing
improvement in shelter, settlements and urban development
regulation, production and service delivery;

b) undertake continuing studies on the research and development
requirements of the shelter and urban development sector for the
purpose of, but not limited to, policy development, planning and
standards formulation;

c) establish collaborative mechanisms with international and local
institutions, the academe and research institutions, industry, local
governments and national government agencies, and other entities
and individuals for knowledge sharing, research resources sharing,
technology transfer, commercialization, and useful exploitation and
industry use of research and development;

d) publish and disseminate research and development information to the
public to promote innovation in the various aspects of shelter,
settlements and urban development; and

e) perform such other related functions as may be assigned by the
Secretary.

SEC. 16. Public Relations and Information Service. The Public Relations

and Information Service shall;

a) Formulate and implement a public information and relations program
that will promote public and stakeholder knowledge of and feedback
on the policies, regulations, incentives, opportunities and programs
and projects in the shelter and urban development sector;

b) Prepare, produce and publish materials to support such public
information and public relations program;

c) Establish collaborative networks for the dissemination of information
and generation of feedback on sectoral concerns; and

4) Perform such other related functions as may be assigned by the
Secretary.

SEC. 17. Information and Communications Technology Service. The
Information and Communications Technology Service shall

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a) formulate and implement an information and communications
technology plan for the sector that will ensure the speedy
generation, organization, and processing of data and production of
analytic information to support planning, policy formulation,
performance monitoring and assessment and transaction processing
systems of the Department;

b) define the design of the integrated information systems and their
functional specifications, and undertake the management of the
development, operation and maintenance of applications;

©) establish collaborative electronic data sharing and communications
linkages with other departments, agencies, industry and local
government units to ensure the generation of comprehensive, up-to-
date and accurate data and promote their wider use in decision
making;

d) undertake continuing user training and assistance to improve
computer literacy and promote the sophisticated use of information
technology in planning, analysis, transaction processing and
decision making;

e) be responsible for the maintenance and provision of support
services to all Department employees in the use of information
technology;

f) conduct continuing studies on best uses of information and
communications technology in the shelter and urban development
sector; and

9) perform such other functions as may be assigned by the Secretary.

SEC. 18. Advisory Committees. The Secretary shall have the power to
establish ad hoc advisory committees consisting of key representatives from national
government agencies, local governments, the private sector, urban poor
communities, academe, and other marginalized groups, to provide a forum for
stakeholder participation and dialogue on key housing and urban development
issues and policies,

SEC. 19. Staffing Pattern. The Secretary shall prepare and implement a
staffing pattern for the Department proper that shall be based on an assessment of
the personnel requirements of the entire Department. The remuneration structure of
the positions in the staffing pattern shall conform to the Salary Standardization Law.
The Department of Budget and Management shall fund in full the staffing pattern of
the Department. The internal structure and the specific number of divisions that will
comprise each of the above bureaus and units under the Department shall be
determined and established by the Secretary.

CHAPTER 5
PLANS, POLICIES AND MONITORING OFFICE

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SEC. 20. Plans, Policies and Monitoring Office. The Plans, Policies and
Monitoring Office (PPMO), shall be headed by an Assistant Secretary and shall be
the central government policy, planning and monitoring think tank for housing and
resettlement, and urban planning, development and regeneration. The Office shall
be responsible for the:

2) formulation of national shelter policy including those for the planning
and design of buildings, their sites and environs, urban and regional
development policies, and resettlement policy;

b) updating of national urban development and shelter framework;
preparation of national shelter plan and agency corporate plan;

©) provision of internal planning services; reviewing policies, plans and
programs of key shelter agencies;

d) conduct of research and development in shelter, housing and building
technologies and trends and into shelter and urban development;

e) monitoring of the effectiveness of government policies and programs
in shelter delivery and urban development, including those of the
attached agencies;

f) development of performance indicators for shelter and urban
development, develop the performance indicators and program
targets for key shelter agencies and local governments;

g) Monitoring of the performance of key shelter agencies’ performance
against targets as well as the accomplishment of national shelter plan
and adherence to the urban development and housing framework;

h) provision of internal evaluation services to the Department;

i) integration of shelter and urban development data banks with those
of other government agencies; and

j) monitor the performance of local government programs in shelter and
urban development.

SEC. 21. Bureaus under the PPMO. The Assistant Secretary for Plans,
Policies and Monitoring shall supervise the following:
21.1 Plans, Policies and Programs Bureau. The Plans, Policies and Programs

Bureau shall:

a) formulate, review and update, in consultation with national
government agencies, local governments, private sector,
communities and other stakeholders, national plans, objectives
and policies for housing and urban development, specifically
the national urban development and housing framework and
the national shelter program;
establish and implement a national housing and urban
development planning system and coordinate the preparation
and timing of the sectoral plans of national government
agencies with the local development plans of local government
units, ensuring their consistency with the national urban

b)

Page 17 of 43


°)

i)

e)

i}

hy

k)

development and housing framework, the national shelter
program and the Medium-term Philippine Development Plan;
design programs for the provision of capacity building
assistance to local governments in shelter, housing and urban
development planning, investment programming, formulation
of land use plans and zoning ordinances, plan administration
and performance assessment;

formulate policies and design interventions that will directly
address the shelter concerns of the urban poor communities,
including the formulation of guidelines on eviction and
relocation;

standardize planning and design data and sector information
requirements under a uniform data classification and storage
and through geographic information systems (GIS);

formulate foreign-assisted projects framework consistent with
the urban development and housing framework, national
shelter program and sector public investment program;
formulate an effective monitoring and performance evaluation
system and undertake the overall monitoring and performance
assessment of foreign-assisted housing and urban
development projects of the department, its attached agencies
and other national government agencies, local government
units, and other entities;

establish project management units to manage and coordinate
the implementation of foreign-assisted projects of the
Department, where necessary;

formulate and implement a research and development agenda
and mobilize public and private sector resources to generate
new knowledge; develop and/or adopt new technologies;
identify and design new products and services, to support
continuing improvement in shelter and urban development
regulation, production, and service delivery;

undertake continuing studies on the research and
development requirements of the shelter and urban
development sector, for the purpose of, but not limited to,
policy development, planning and design standards
formulation;

provide technical assistance to project management and
implementation offices and units of foreign-assisted projects of
the Department in facilitation of project implementation in
accordance with approved policies and schedules; and
perform such other functions as may be assigned by the
Secretary.

"Page 18 of 43


21.2 Monitoring and Evaluation Bureau. The Monitoring and Evaluation

Bureau shall:

a) monitor and evaluate the performance of the sector particularly
on the consistency of programs, projects and activities of
national government agencies, local government units,
industry and other stakeholders with the national urban
development and housing framework, national shelter strategy,
sector public investment programs and the policies of the
Department;
develop and operate a sector performance monitoring and
evaluation system and monitor, evaluate and independently
report on the performance of the sector and that of local
governments, industry, national government and other key
sector stakeholders;
recommend changes and coordinate action needed to ensure
the accomplishment of the objectives of the national urban
development and housing framework, national shelter strategy,
sector public investment programs and the policies of the
Department;
regularly monitor the corporate and operational performances
of all the organic bureaus, attached agencies and
corporations, and make recommendations thereon;
formulate an effective monitoring and performance evaluation
system and undertake the overall monitoring and performance
assessment of shelter, urban development and disaster
rehabilitation projects of the Department, its attached
agencies, local government units, and other entities; and
f) perform such other related functions as may be assigned by

the Secretary.

b)

°)

d

e)

21.3 Shelter Finance and Development Bureau. The Shelter Finance and

Development Bureau shall:

a) formulate policies and implement schemes to encourage a
sustainable market-oriented shelter finance system that will
ensure greater private sector participation and adequate flow
of private funds into the shelter industry;
develop and implement incentive schemes to encourage
greater participation by the private sector, communities and
other stakeholders in the provision of shelter and shelter
finance;
design the most appropriate mechanism to increase
transparency and efficiency in the use of public funds,
including the creation of a socialized housing fund or other
mechanisms to administer up-front grants or amortization
support, and design the implementing system and procedures

b)

°)

Page 19 of 43


for the program maximizing the principles of decentralization
and devolution;

undertake continuing studies for the improvement of the
institutional framework and administrative operations for
shelter finance;

recommend legislation to improve housing finance laws,
policies and mechanisms and develop initiatives for private
sector and community participation;

f) conduct continuing studies on improving housing finance,
resource generation and mobilization, and their implementing
strategies and mechanisms;

administer homeless assistance or grants to LGUs, NGOs and
private communities for temporary or emergency housing in
response to manmade or natural calamities; and

perform such other functions as may be assigned by the
Secretary.

d

e)

g

h)

CHAPTER 6
URBAN DEVELOPMENT AND HOUSING OPERATIONS OFFICE

SEC. 22. The Urban Development, Settlements and Shelter Operations
Office. The Urban Development, Settlements and Shelter Operations Office
(UDSSOO), under the Office of the Secretary, shall be headed by an Assistant
Secretary and shall be responsible for the:

a) development of the capacity of local governments to plan, implement
and monitor shelter, land management, urban development and
urban redevelopment programs;

b) development and administration of the national government subsidy
program for social housing;

©) provision of advice and guidance on the development of housing
finance market in the Philippines;

d) provision of technical and administrative support to management and
implementation of foreign-assisted projects at the central level

SEC. 23. Bureaus under the UDSSOO. The Assistant Secretary for Urban
Development Settlements and Shelter Operations Office (UDSSOO) shall supervise
the following

23.1 Housing and Land Use Regulation Bureau. The Housing and Land

Use Regulation Bureau (HLURB) shall be responsible to:

a) formulate, review and update national policies and standards,
guidelines and regulations relative to land use for
implementation and enforcement by local government units;

b) develop urban development planning and urban development,
land use, zoning and urban management standards and

Page 20 of 43


°)

d

e)

g

—

guidelines for the formulation of local development plans, land
use plans and zoning ordinances, and for local development
administration and urban management by local governments,
ensuring the integration of the spatial and socio-economic
aspects of development, promoting consultation and
consensus, and improving development quality;

formulate national standards and regulation relative to the
development of condominium and subdivision projects, which
will serve as guide for the enforcement of such regulation by
the provincial governments and independent cities;

formulate zoning and other land use control standards and
guidelines which shall govern the development and
implementation of local land use plans and zoning ordinances
of municipalities and component cities; the zoning components
of civil works and infrastructure projects of the national,
regional and local governments located within the
geographical jurisdiction of the province or independent
component city; subdivision or estate development projects of
the public and private sectors; and urban renewal plans,
programs and projects; Provided, that these standards and
guidelines shall respect the classification of public lands for
forest purposes as certified by the Department of Environment
and Natural Resources;

monitor, evaluate, investigate and independently report on the
performance of local governments, the private sector, and
other stakeholders in the aspects of housing development,
land use management, and their regulation;

issue rules and regulations to enforce the land use policies as
prescribed by existing laws on land use and such other laws
regulating the use of land, including the regulatory aspect of
the Urban Land Reform Act and all decrees relating to the
value of land and improvements and their rental, in their
respective geographical areas of jurisdiction;

develop and install the housing and land use development
oversight monitoring system and undertake reserve
compliance monitoring functions deemed vital by the
Secretary;

formulate and implement real estate consumer education and
protection programs;

adopt rules of procedure for the conduct of its business for
approval of the Secretary;

conduct public hearings relating to its functions;

promote, encourage, coordinate and assist private enterprises
and government agencies and instrumentalities in planning,
developing and coordinating shelter, settlements and urban

Page 21 of 43


development plans and programs by furnishing legal, technical
and professional assistance;

1) develop and implement upon approval of the Secretary,
prototype projects supportive of its regulatory functions either
by itself or as part of an inter-agency group or by contract with
such public or private entities;

m) charge and collect reasonable fees in the performance of its
functions;

n) issue orders after conducting appropriate investigation for the
cessation or closure of any use or activity and to issue orders
to vacate or demolish any building or structure that it
determines to have violated or failed to comply with any of the
laws, executive orders, presidential issuances and directives
being implemented by it, either on its own motion or upon
complaint of any interested party;
administer oaths, summon parties to a controversy, issue
subpoenas requiring attendance and testimony of witnesses or
the production of such books, papers, contracts, records,
agreements and other documents of similar nature as may be
material to a just determination of the matters under
investigation or hearing conducted in pursuance of this Act;

p) regulate real ite trade and business;

q) register subdivision lots and condominium projects;

1) issue license to sell subdivision lots and condominium units in
the registered units;

s) approve performance bonds and suspension of license to sell;

t) register dealers and maintain a list of real estate brokers and

salesmen duly registered and licensed by the Professional

Regulation Commission, who are lawfully engaged in the

business of selling subdivision lots or condominium units;

suspend or revoke registration of dealers, brokers or salesmen
for cause;

approve mortgage on any subdivision lot or condominium unit

made by the owner or developer;

w) grant permits for the alteration of plans and the extension of

period for completion of subdivision or condominium projects;

approval of the conversion to other lawful purposes of road

rights-ofway (RROWs) and open spaces found within a

project which have been donated to the city or municipality

concerned;

hear and decide cases on unsound real estate business

practices, claims for refund against project owners,

developers, dealers, brokers or salesmen, cases of specific
performance and other related cases arising from contractual

0}

u

Y)

x)

y)

Page 22 of 43


or statutory obligations of owners, dealers, brokers, or

salesmen towards lot or unit buyers;

impose administrative fines and/or penalties for violation of this

Act, and other laws implemented by the Department including

pertinent rules and regulations, orders, decisions and/or

Tulings; provided that the maximum fines or penalties to be

imposed shall not exceed five hundred thousand pesos

(P500,000.00); provided further; that the Secretary may adjust

such rates not more than once every three (3) years;

aa) determine and order the payment by the losing party of the
cost of litigation incurred by the winning party and prescribe
the manner in which such payments shall be made;

bb) deputize any law enforcement agency in the execution of the
final orders, rulings or decisions;

cc) monitor the activities of metropolitan development authorities
(MDA) nationwide and report the same to the Secretary for
possible coordinative action; and

dd)perform such other related functions as may be assigned by
the Secretary.

2)

23.2 Urban Land Management and Regeneration Bureau. The Urban Land
Management and Regeneration Bureau shall be responsible to:

a)

formulate urban land management, renewal and regeneration

policies, strategies, concepts, and models; mobilize community

support and create the governance mechanisms, incentives

and disincentives and other modes of intervention to mobilize

public and private sector resources,

undertake continuing monitoring and assessment of urban

land management policies, programs, interventions and

institutional mechanisms and assess the urban land

management, renewal and regeneration needs and reform

requirements to improve policy and strategy formulation;

©) coordinate the urban land management, renewal and
regeneration activities of the national government to ensure
efficient use of public resources; prevent duplication and
overlapping, streamline procedures, encourage private sector
and community participation and improve services;

4) undertake studies on urban land management regeneration,

and apply best practices and lessons in improving policy,

government intervention and practice;

design programs for improving capacities of local governments

in urban land management, renewal and regeneration; and

f) perform such other functions as may be assigned by the

Secretary.

b)

°)

Page 2 of 43


SEC. 24. Decisions of the HLURB. Decisions, orders or resolutions of the
HLURB hearing officers shall be appealable to the Secretary within fifteen (15) days
from receipt of the decision. However the Secretary may motu proprio review any
decision or action of the HLURB before the same becomes final.

CHAPTER 7
OFFICE OF THE NATIONAL BUILDING OFFICIAL

SEC. 25. The Office of the National Building Official. The Office of the
National Building Official (ONBO), shall be headed by the Senior Undersecretary,
who shall discharge the following duties and responsibilities:

a. administration of all process, review and approval functions for the
development or redevelopment of all existing and proposed buildings,
their sites and environs sited on Philippine soil, water or airspace;

b. development of the capacity of local governments to process, review
and approve the development or redevelopment of all existing and
proposed buildings, their sites and environs;

c. exercise administrative supervision and control over the LGU offices of
building officials (OBO) and the regional offices; and

d. the quasi-judicial powers and functions with respect to the process,
review and approval of the development or redevelopment of all
existing and proposed buildings, their sites and environs on Philippine
soil shall be exercised through the ONBO.

The Senior Undersecretary, in full representation of the Secretary, shall
serve as the National Building Official, primarily tasked with the crafting,
updating, interpretation, implementation, enforcement and compliance
monitoring of the National Building Code of the Philippines, its
implementing rules and regulations, guidelines, standards and manual of
procedure, as well as other derivative regulations, including referral codes
such as the fire, architectural, structural, electrical, mechanical, sanitation
and water codes and the accessibility law.

SEC. 26. Powers and Functions of the Office of the National Building
Official (ONBO). The ONBO shall

‘a. formulate, review, update and promulgate national policies and
standards, guidelines and regulations relating to the planning, design,
operation, maintenance and administration of all buildings on Philippine
soil, water and airspace, their sites and environs, for implementation
and enforcement by all national and local government units;

b. continually develop standards and guidelines for the planning, design,
operation, maintenance and administration of buildings and sites,
ensuring the integration of the spatial and socio-economic aspects of
development, promoting consultation and consensus, and improving
development and redevelopment quality;

Page 24 of 43


formulate national standards and regulation relative to the National
Building Code, the Fire Code, the accessibility law, the water and
sanitation codes and their derivative regulations as well as their
respective referral codes, which shall all serve as guides for the
implementation and enforcement of such laws and regulations by the
local and national governments;

monitor, evaluate, investigate and independently report on the
performance of national and local government units, the private sector,
and other stakeholders in the various concerns and issues relating to
buildings and related vertical developments and the attendant
regulatory measures;

issue rules and regulations to enforce policies pertaining or relating to
the planning, design, operation, maintenance and administration of
buildings and their sites as prescribed by existing laws;

conduct public hearings relating to its functions;

promote, encourage, coordinate and assist private enterprises and
government agencies and instrumentalities in planning, developing and
coordinating building and vertical development programs by furnishing
legal, technical and professional assistance;

.. develop and implement upon approval of the secretary prototype
projects supportive of its regulatory functions either by itself or as part
of an inter-agency group or by contract with such public or private
entities;
charge and collect reasonable fees in the performance of its functions;
issue orders after conducting appropriate investigation for the
occupancy cessation, closure or demolition of any building/ site or
activity and to issue orders to vacate or demolish any building,
structure or site that it determines to have violated or failed to comply
with any of the laws, executive orders, presidential issuances and
directives being implemented by it, either on its own motion or upon
resolution of a complaint filed by any interested party;
to administer oaths, summon parties to a controversy or dispute, issue
subpoenas requiring attendance and testimony of witnesses or the
production of such books, papers, contracts, records, agreements
and other documents of similar nature as may be material to a just
determination of the matters under investigation or hearing conducted
in pursuance of this act;
issue or approve pre-issued building, ancillary and accessory permits
relating to buildings and their sites;

. conduct the preliminary review and presentation of building plans and
designs prior to their finalization;
maintain a list of professionals duly registered and licensed by the
Professional Regulation Commission, who are lawfully engaged in the
planning and design of buildings and their sites;

Page 25 of 43


0. suspend or revoke building, ancillary and/ or accessory permits for
cause and reinstate the same as needed;

p. grant permits for the alteration of building plans and designs and the
extension of the period for completion of such projects;

q. hear and decide cases on unsound building planning, design,
operation, maintenance or administration practices;

r. impose administrative fines and/or penalties for violation of this Act,
and other laws implemented by the Department including pertinent
rules and regulations, orders, decisions and/or rulings; provided that
the maximum fines or penalties to be imposed shall not exceed five
hundred thousand pesos (P500,000.00); provided further; that the
Secretary may adjust such rates not more than once every three (3)
years;

s. to determine and order the payment by the losing party of the cost of
litigation incurred by the winning party and prescribe the manner in
which such payments shall be made;

t, to deputize any law enforcement agency in the execution of the final
orders, rulings or decisions;

u. recommend to the Secretary and to LGUs the appointment of duly
qualified building officials or their removal for cause after due process;

v. provide training and testing for applicant building officials;

w. monitor and rate the performance of building officials;

x. Perform such other related functions as may be assigned by the
Secretary.

SEC. 27. Decisions of the ONBO. Decisions, orders or resolutions of the
ONBO hearing officers shall be appealable to the Senior Undersecretary within
fifteen (15) days from receipt of the decision. However the secretary may motu
proprio review any decision or action of the HLURO before the same becomes final.
The decision of the Senior Undersecretary may be appealed to the Office of the
Secretary, whose decision shall be final

SEC. 28, Bureaus Under the ONBO. The Senior Undersecretary for the
ONBO shall supervise the following:

28.1 National Building Code Bureau. The National Building Code Bureau
(NBCB) shall be responsible for the review, updating, development
and interpretation of the National Building Code, its implementing
rules and regulations, its guidelines and standards, its manual of
procedure and its referral codes; the NBCB shall also be responsible
for monitoring National Building Code compliances nationwide and for
giving primary advice to the Secretary on the resolution of issues
pertaining to the interpretation of the National Building Code;

Page 26 of 43


28.2 Bureau of Building Design. The Bureau of Building Design (BBD)
shall be primarily responsible for the technical interpretation of the
National Building Code and its derivative regulations and shall be
responsible for the publication of such interpretations for use by all
concerned state-regulated professionals. The bureau shall set the
standards and guidelines for the planning, design, operation,
maintenance and administration of all public buildings. The bureau
shall also be responsible for the conduct of inspections nationwide to
ensure compliance with the National Building Code and its derivative
regulations; and

28.3 Building Consultants Bureau. The Building Consultant's Bureau
(BCB) shall be the Secretary's private sector advisory entity on the
implementation and enforcement of the National Building Code. It
shall also be an advisory entity to the Office of the Senior
Undersecretary, the NBCB and BBD.

SEC. 29. The Disaster Rehabilitation Office. The Disaster Rehabilitation
Office (DRO) of the Department will act as overall manager and coordinator of
the rehabilitation, recovery, and reconstruction efforts of all government
departments, agencies and instrumentalities in the affected areas, to the
extent allowed by law. The DRO shall be tasked with the following:

29.1 coordinate with the National Disaster Risk Reduction and
Management Council (NDRRMC) and its member agencies and
consult with the concerned local government units (LGUs) in the
formulation of plans and programs for the rehabilitation, recovery,
reconstruction and redevelopment of the affected areas, including an
overall strategic vision and integrated short-term, medium-term and
long-term programs, which shall be submitted to the Secretary for
approval;

29.2 propose funding support for the implementation of the approved plans
and programs. The DRO shall likewise exercise oversight over the
relevant government agencies with respect to the implementation of
the pertinent plans and programs;

29.3 call upon any department, bureau, office, agency or instrumentality of
the government, including government-owned _or-controlled
corporations (GOCCs), government financial institutions (GFls) and
LGUs and request non-government organizations, the private sector,
and other entities, for assistance as the circumstances and
exigencies may require in carrying out its mandate;

29.4 engage the assistance of consultants, experts and professional
advisors whenever necessary, subject to applicable government rules
and regulations; and

Page 27 of 43


29.5 submit to the Secretary the status reports on the implementation of
the approved plans and programs as often as the Secretary may
require, and perform such other functions and activities as may be
necessary to carry out the provisions of this Act, or as the Secretary
may direct.

CHAPTER 8
OFFICE FOR REGIONAL OPERATIONS

SEC. 30. The Office for Regional Operations. The Office for Regional
Operations shall exercise supervision and control over the Department's Regional
Offices, described in Section 25 hereof. It shall be responsible for the provision of
public information, monitoring of LGU performance, development of a regional-
central reporting and work flow processes, provision of government assistance to
LGUs, administration of subsidy and other regional operations.

SEC. 31. Regional Offices. The Department is hereby authorized to
establish, operate and maintain a Department-wide regional office in each of the
country's administrative regions. Each Regional Office shall be headed by a
Regional Director and shall have, within its administrative region, the following
functions:

a) implement laws, policies, plans, rules, regulations and programs of the
Department in the concerned region;

Implement the local government housing and urban development

capacity building programs of the Department in their respective

regions;

c) Ensure the consistency of the over-all regional development goals and

programs with the National Urban Development and Housing

Framework, and the National Shelter Program, and vice-versa;

similarly between Department programs and regional plans of other

government agencies;

Review all local development and land use plans of provinces and

independent cities for purposes of ensuring compliance with laws

within thirty (30) days from receipt thereof,

Undertake the independent monitoring and review of sector

performance and the performance of national government, local

governments, industry and other stakeholders in the regions, and
recommend appropriate action thereon;

f) Monitor, investigate and assess compliance to approved subdivision,
condominium, building and site development plans; and for the
purpose, impose fines/penalties and, on its own motion or upon
complaint of any interested party, after the conduct of appropriate
investigation, issue notices of violations and Cease and Desist Orders
for noncompliance thereof:

b)

qd)

Page 28 of 43


g) Coordinate the shelter and urban development planning process in the

regions to ensure the delivery of various activities and services such as

titling, issuance of permits for subdivision, condominium, building and
site development plans, the provision of social and livelihood services,
and other services related to housing and urban development,

Maintain a regional database and information system for the sector in

the region;

i) Undertake a public information program to provide the industry, general
public and other stakeholders with information on national and local
government policies, regulations and programs, as well as to establish
a consultative mechanism to serve as a forum for continuing planning
and evaluation of settlement programs and projects;

j) Implement, monitor and evaluate policies, rules and regulations

governing resettlement, relocation/eviction or demolition due to for

government projects which will involve the eviction or demolition of
structures of homeless and underprivileged citizens, and recommend
appropriate action thereon;

Ensure that local government units institute preventive measures

against informal settling and address other concomitant problems, such

as rural to urban migration;

|) Monitor and evaluate the implementation of government's programs
and projects which would require housing provision and/or relocation
and resettlement activities, and recommend appropriate action thereon;

m) Administer homeless assistance advances/grants to LGUs, NGOs and

private communities for temporary and emergency housing, in

response to man-made and natural calamities;

Implement innovative, clearly defined, transparent and on-budget

housing subsidy mechanisms for the homeless and underprivileged in

the regions to enhance accessibility to shelter;

Registration and incorporation of home-owners associations and

condominium corporations; and

p) Perform such other functions as may be assigned by the Secretary,

h

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n

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CHAPTER 9
ATTACHED AGENCIES

SEC 32. Attached Agencies and Corporations. The following agencies and
corporations are hereby attached to the department for policy and program
coordination:

32.1 National Housing Authority (NHA);

32,2 Housing Guarantee Corporation (HGC);

32.3 National Home Mortgage Finance (NHMFC)

32.4 Home Development Mutual Fund (HDMF); and

32.5 Housing and Urban Development Adjudication Commission (HUDAC)

Page 29 of 43,


The National Risk Reduction and Management Council (NDRRMC) shall
not be under the administrative control and supervision of the Department.
However, the Department and the NDRRMC must collaborate on
rehabilitation efforts in which the Department must be the lead agency.

SEC. 33. National Housing Authority (NHA). The National Housing
Authority shall remain as the sole national government arm for shelter production
and shall institute such programs and approaches that will promote housing
provision for low-income families. It shall encourage private sector participation in
socialized housing production and assist local governments in building capabilities
for the implementation of local housing programs and projects.

SEC. 34. Home Guarantee Corporation (HGC). The Home Guaranty
Corporation shall concentrate on its mandate of providing guarantees to: (a)
encourage the flow of private funds for mass housing development and homebuyers’
financing; and (b) support the development and sustainability of the secondary
mortgage market for housing. The Corporation shall conduct studies and initiate
activities for greater private sector participation in the short term and for its eventual
privatization over the medium term.

SEC. 35. National Home Mortgage Finance Corporation (NHMFC). The
National Home Mortgage Finance Corporation shall focus on its designated function
as the secondary mortgage institution of the country. To achieve this, the
Corporation shall implement measures necessary to enhance its organizational
capability and financial viability, including but not limited to, improvement of
collection efficiency, restructuring of management information systems, and
upgrading of its technical capability. The Corporation shall conduct studies and
initiate activities for greater private sector participation in the short-term and for its
eventual privatization over the medium term.

SEC. 36. Home Development Mutual Fund (HDMF). The Fund shall
continue its function of providing a savings system for public and private sector
employees with housing as its primary investment, as provided for in P.D, No. 1752,
as amended by E.O. No. 35 and Republic Act No. 7742

SEC. 37. Nature of Attachment. The Secretary shall in concurrent capacity,
be the Ex-Officio Chairperson of the governing boards of the attached corporations,
namely, the NHA, the HGC, the NHMFC and the HDMF.

CHAPTER 10
HOUSING AND URBAN DEVELOPMENT ADJUDICATION COMMISSION

SEC. 38. Renaming and Reconstitution of the Housing and Land Use
Regulatory Board. The Housing and Land use Regulatory Board is hereby renamed

Page 30 of 43


and reconstituted as the Housing and Urban Development Adjudication Commission
(HUDAC), hereinafter referred to as the Commission.

SEC. 39. Power and Authority. The Commission shall have the following

powers and authorities:

39.1. To promulgate rules and regulations governing the hearing and
disposition of cases filed before it and those pertaining to its internal
functions and such other regulations as may be necessary to carry
out the purposes for which it is established: Provided, that it shall not
be bound by technical files of procedure but shall proceed to hear
and decide all cases, disputes or controversies in a most expeditious
manner, employing all reasonable means to ascertain the facts of
every case in accordance with justice, equity and merit;

39.2. To administer oaths, summon parties to a controversy, issue
subpoenas requiring attendance and testimony of witnesses or the
production of such books, papers, contracts, records, agreements
and other documents of similar nature as may be material to a just
determination of the matter under investigation or hearing conducted
in pursuance of this Act;

39.3. To issue writs, orders to execute demolition, or seizure or closure of
property in accordance with its decision;

39.4. To issue preliminary or permanent injunctions, whether prohibitory
or mandatory, in all cases in which it has jurisdiction, and in which the
pertinent provisions of the Rules of Civil Procedure shall apply;

39.5. To hold any person in contempt, directly or indirectly, and impose
appropriate penalties thereof,

39.6. To impose administrative fines and/or penalties for violation of this
Act, the Urban Development and Housing Act and other laws
implemented by the Commission, including pertinent rules and
regulations, orders, decisions and/or rulings: Provided, that the
maximum fines or penalties to be imposed shall not exceed Five
Hundred Thousand Pesos (P500,000.00): Provided further, that the
Commission may adjust such rates not more that once every three
(3) years;

39.7. To determine and order the payment by the losing party of the cost
of the litigation incurred by the winning party and prescribe the
manner in which such payments shall be made;

39.8. To deputize any law enforcement agency in the execution of its final
orders, rulings or decision; and

39.9. To exercise such other powers as implied, necessary, or incidental
to carrying out the express powers granted to the Commission or to
achieve the objectives and purposes of this Act, and other laws
implemented by the Commission.

“Page 31 of 43


The Chairperson, aided by the Executive Clerk of the Commission, shall have
administrative supervision over the Commission and its regional branches and all its
personnel including the Housing and Land Use Arbiters.

SEC. 40. Composition and Qualification of Members. The Commission,
shall be composed of a Chairperson and fourteen (14) full-time Members to be
appointed by the President, majority of whom shall be members of the Philippine Bar
while the others shall have a background or experience in urban development
planning, development and implementation of shelter programs for urban poor
communities, management, architecture, civil engineering, and other related fields,
They must have been engaged in the practice of their respective professions or
specialization or employed in an appropriate office for a period of at least five (5)
years. In addition, no person who has been convicted of a crime involving moral
turpitude shall be appointed as members of the commission.

The Commission may sit en banc or in five (5) divisions, each composed of
three (3) members. Subject to the penultimate sentence of this paragraph, the
Commission shall sit en banc only for purposes of promulgating rules and
regulations governing the hearing and disposition of cases before any of its divisions
and regional offices and formulating policies affecting its administration and
operations. The Commission shall exercise its adjudicatory and all other powers,
functions and duties through its divisions. Of the five (5) divisions, the first, seconds
and third divisions shall handle cases coming from the National Capital Region and
parts of Luzon. The fourth and fifth divisions, cases from the Visayas and Mindanao
respectively; Provided, That the Commission sitting en banc may, on temporary or
emergency basis, allow cases within the jurisdiction of any division to be heard and
decided by any other division whose docket allows the additional workload and such
transfer will not expose litigants to unnecessary additional expense: Provided further,
that the Commission shall designate one (1) division to hear and resolve cases
involving eviction and relocation of urban poor communities. Each division of the
Commission shall have exclusive appellate jurisdiction over cases within its territorial
jurisdiction.

The concurrence of two (2) Commissioners of a division shall be necessary
for the pronouncement of judgment or resolution. Whenever the required
membership in a division is not complete and the concurrence of two (2)
Commissioners to arrive at a judgment or resolution cannot be obtained, the
Chairperson shall designate such number of additional Commissioners form other
divisions as may be necessary.

The conclusions of a division in any case submitted to it for decision shall be
reached in consultation ordained therein. A certification to this effect signed by the
Presiding Commissioner of the division shall be issued and a copy thereof attached
to the record of the case and served upon the parties, The Chairperson shall be the
Presiding Commissioner of the first division and the four (4) other senior members

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shall be the Presiding Commissioners of the second, third, fourth and fifth divisions,
respectively. In the case of the absence or incapacity of the Chairperson, the
Presiding Commissioner of the Second Division shall be Acting Chairperson

The Chairperson, aided by the Executive Clerk of the Commission, shall have
Administrative supervision over the Commission and its regional branches and alll its
personnel including the Executive Housing and Land Use Arbiters.

The Commission, when sitting en banc shall be assisted by the Executive
Clerk and, when acting through its Divisions by the Division Clerk, respectively, who
shall perform such similar or equivalent functions and duties as are discharged, by
the Clerk of Court and Deputy Clerk of Court of the Court of Appeals.

SEC. 41. Term and Compensation. The Members of the Commission shall
be appointed for a term of six (6) years without prejudice to reappointment after said
term shall have expired. The Chairperson and Members of the Commission shall
receive an annual salary at least equivalent to that of, and be entitled to the same
allowances and benefits as, an Undersecretary and Assistant Secretary of the
Department, respectively

The incumbent full-time Commissioners of the present HLURB shall remain in
the office unless they opt to avail of the retirement and separation benefits provided
in Section 50 of this Act or are sooner removed for cause.

SEC. 42. Housing and Land Use Arbiters, Qualifications, Powers and
Functions. The qualifications, powers and functions of the housing and Land Use
Arbiters shall be as indicated hereunder:

42.1. The Secretary, upon recommendation of the Chairperson of the
Commission, shall appoint Housing and Land Use Arbiters as the
needs of the service may require for each administrative region/

42.2. No person shall be appointed Housing and Land Use Arbiter unless
he/she is a member of the Philippine Bar with at least three (3) years
experience or exposure in the field of real estate and land use
development cases;

42.3. The Housing and Land Use Arbiters shall receive an annual salary
at least equivalent to that of, and be entitled to the same allowances
and benefits, as an Assistant Regional Director of the Department.

42.4. The Housing and Land Use Arbiters shall have original and
exclusive jurisdiction to hear and decide cases enumerated in Section
35 of this Act.

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SEC. 43. Jurisdiction. The Housing and Land Use Arbiters shall exercise
original and exclusive jurisdiction to hear and decide cases involving the following:

43.1 On Real Estate

a) Unsound and fraudulent real estate business practices;

b) Claims for refund against project owners, developers, dealers,

brokers and salespersons;

Specific performance of contractual and statutory obligations filed

by buyers of subdivision lots or condominium units against the

owner, developer, dealer, broker or salespersons;

d) Squatting on subdivision lots;

e) Eviction and relocation of squatter communities,

f) Disputes involving buyer-financing agreements with any financing

institution for condominium/subdivision projects;

Disputes involving easements or right of way arising from the

development of subdivision and housing projects;

Disputes between : (1) land owners and developers, and (2) banks

and developers, whenever the interest of buyers of subdivision lots,

or house and lots, or condominium units are involved;

i) Releases of mortgage titles of subdivision lots and condominium
units;

j) Disputes involving easement of waterways, drainage, connections

and light and view arising from the development of subdivision and

housing projects;

Disputes involving homeowners associations and condominium

corporations, whether intra corporate or inter corporate;

1) Claims of broker/salesmen for unpaid commissions for
condominium/sub-division projects;

m) Other related cases arising from contractual or statutory obligations
of owners, dealers, brokers or salesmen towards lot or unit buyers,
and

n) Regulation of the relationship between residential lessors and
lessees that are governed by the Rent Control law.

°)

9)

—

=

43.2 On Shelter and Land Use Planning and Regulation - Decisions and
actions of:
a) local housing boards or provincial governments, highly
urbanized independent component cities and the cities and
municipalities of Metro Manila;

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b) regional and local physical planning and zoning bodies,
including zoning boards of adjustment and appeals on
complaints alleging violations of local zoning ordinances not
involving land conversion issues; and (3) provincial and
component independent city governments with respect to
applications relative to permits and licenses issued and
issuance of Cease and Desist Orders and administrative fines.

43.3 On Shelter Rights - Violations of Administrative rules and regulations
implementing Sections 18 and 28 of Republic Act No. 7279,
otherwise known as the Urban Development and Housing Act. The
Commission shall have exclusive appellate jurisdiction over all cases
decided by the Housing and Land Use Arbiters.

SEC. 44. Criminal Prosecution, Criminal prosecution for violation of housing
laws and regulations shall be instituted before regular courts with appropriate
jurisdiction.

SEC. 45. Sheriff. The Commission shall appoint a sheriff or such number of
sheriffs in its central and regional branches. No person shall be appointed to the
position of sheriff unless he is a second grade civil service eligible and has finished
at least two (2) years of college. The sheriff shall be responsible for the service or
execution of all writs, summons and orders and other processes of the Commission.

SEC. 46. Appearances. A lawyer appearing for a party is presumed to be
properly authorized for that purpose. A non-lawyer may appear before the
Commission's Housing and Land Use Arbiter only if: a) he/she represents
him/herself as a party to the case; or b) he/she represents his/her organization or
members thereof: Provided that he/she shall be made to present written proof that
he/she is properly authorized.

SEC. 47. Appeals. Decisions, awards or orders of the Housing and Land Use
Arbiters shall be final and executor unless appealed to the Commission within ten
(10) calendar days from receipt thereof. The appeal may be entertained only on any
of the following grounds:

(a) If there is prima facie evidence of abuse of discretion on the part of
the Housing and Land Use Arbiter in rendering the questioned
decision, award or order;

(b) If the decision, award or order was secured through fraud or coercion,
including graft and corruption;

(c)_ If made purely on questions of law; and

(d) If serious errors in the findings of facts are raised that would cause
grave or irreparable damage or injury to the appellant.

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Decisions of the Commission can be appealed only to the Court of Appeals by
way of a Petition for Review within fifteen (15) days from notice of judgment, award
or order pursuant to Rule 43 of the 1997 Rules of Civil Procedure

SEC. 48. Prohibition Against Restraining Order or Injunction. No lower
court of the Philippines shall have jurisdiction to issue any restraining order or writ of
preliminary injunction or permanent injunction against the Commission or its Housing
and Land Use Arbiters in any case, dispute or controversy arising from, necessary
to, or in connection with the application, implementation, enforcement or
interpretation of this Act and other pertinent laws on housing, shelter, buildings,
settlements, urban development, disaster rehabilitation and just and humane eviction
or demolition procedures

SEC. 49. Pending Cases. All cases pending in court arising from or in
connection with the implementation of pertinent laws on housing, shelter, buildings,
settlements, urban development, disaster rehabilitation and just and human eviction/
demolition procedures shall continue to be heard, tried and decided to their finality.

CHAPTER 11
FUNCTIONS OF LOCAL GOVERNMENTS IN RELATION
TO SHELTER, SETTLEMENTS, BUILDINGS AND URBAN DEVELOPMENT

SEC. 50. Continuing Devolution of Functions to Local Governments. The
national government, through the Department of Shelter, Settlements, Urban
Development and Disaster Rehabilitation, and in consultation with the Department of
Interior and Local Government and the local governments, shall formulate and
implement a continuing devolution program for shelter and urban development
sector functions, responsibilities, authority and accountability, in accordance with the
principles of sector governance stipulated in this Act.

SEC. 51. Devolution of Rule Enforcement Functions to Provinces and
Independent Component Cities. The following regulatory functions of the Housing
and Land Use Regulatory Board as provided for in Executive Order No. 648, dated
07 February 1981, as amended by Executive Order No. 90 dated 17 December
1986, are hereby devolved to provincial governments, independent component city
governments and the cities and municipalities of the Metropolitan Manila Area;
Provided, that all rule promulgation and enforcement functions and activities of local
government units, are in accordance with the prescribed regulatory framework and
policies as well as guidelines issued by the Department of Shelter, Settlements,
Urban Development and Disaster Rehabilitation

51.1 Review, evaluate and approve or disapprove comprehensive local

development plans, local land use plans and zoning ordinances of
‘component cities and municipalities and building and site plans and
designs: the zoning components of civil works and infrastructure

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projects of national, regional and local governments; subdivision,
condominium, building, site or estate development projects including
industrial estates, of the public and private sectors; and urban
renewal and regeneration plans, programs and projects; issuance of
development, building, ancillary and accessory permits; Provided,
that the review and approval of such comprehensive local
development plans, local land use plans and zoning ordinances and
estate, subdivision, building and site plans and designs shall respect
the classification of public lands for forest purposes as certified by the
Department of Environment and Natural Resources; and Provided
that the classification of specific alienable and disposable lands by
the Bureau of Lands shall be in accordance with the relevant zoning
ordinance of the local government where such lands are located; and
the provisions of R.A. No. 6657 with regard to the lands distributed,
and issued notice of coverage under the Comprehensive Agrarian
Reform Program (CARP) as certified by the Department of Agrarian
Reform; Provided, further, that nothing in this Section shall be
construed as repealing, amending or modifying in any manner, the
provisions of R.A. No. 6657;

51.2 Registration of subdivision lots and condominium projects; issuance
of licenses to sell subdivision lots and condominium units in the
registered units; approval of performance bond and the suspension of
license to sell; approval or mortgage on any subdivision lot or
condominium unit made by owner or developer; granting of permits
for the alteration of subdivision and condominium plans and designs
and the extension of period for completion of subdivision or
condominium projects, subject to the standards and requirements of
the Department;

51.3 Impose fines and penalties as may be allowed under existing laws or
Department policies, and guidelines;

51.4 Conduct public hearings and consultations on the promulgation of
regulation;

51.5 Formulate and adopt rules and procedures for rule enforcement;

51.6 Provide information to the Department necessary in the monitoring of
local urban development and Shelter Programs and Disaster
Rehabilitation Projects in accordance with the report content and
formatting guidelines of the Department; and

51.7 Perform such other related regulatory functions as may be provided
for by law.

CHAPTER 12
TRANSITORY PROVISIONS.

SEC. 52. Transfer of Functions. The following functions are hereby
transferred as stipulated hereunder:

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52.1. The rule, standards and guidelines formulation functions of the
Housing and Land Use Regulatory Board is hereby transferred to the
Department, while its rule promulgation and enforcement functions
are hereby transferred to the provincial governments, independent
component cities and to the cities and municipalities comprising the
Metropolitan Manila Area.

52.2 The registration of incorporation of homeowners associations and
condominium corporations are hereby transferred to the regional
Offices of the Department.

SEC. 53. Formulation of Regulatory Framework and Devolution
Implementation Program. The Department shall formulate a regulatory framework
and design the necessary policies, standards, guidelines and procedures to guide
the rule promulgation and enforcement functions of provincial governments,
independent component cities and the cities and municipalities of the Metropolitan
Manila Area. The Department shall formulate and implement a devolution plan which
shall include a multi-year capacity building program, and technical assistance
services for the institutional capacity of provincial governments, independent
component cities and the cities and municipalities of the Metropolitan Manila Area
and the gradual transfer of regulatory functions, and the turnover of the pertinent
records and transactions to the pertinent local governments which should be
completed within Five (5) years from the effectivity of this Act

SEC. 54. Abolition and Conversion of Agencies. The following dispositive
actions shall be implemented within six (6) months from the effectivity of this Act:

54.1. The Housing and Urban Development Coordinating Council. Its
functions, assets, equipment, funds, choses in action, records and
perotinent transactions, shall be transferred and absorbed by the
Department subject to its staffing patter and the selections process as
prescribed under Republic Act No. 6656 on the Rules on Government
Reorganization

54.2 The Housing and Land Use Regulatory Board is hereby converted to
and renamed as the Housing and Urban Development Adjudication
Commission. Its assets, equipment, funds, personnel, pertinent
records, and pertinent transactions of the Board are hereby
transferred to the Commission. The regional offices, staffing,
operating systems and procedures and new budget within six (6)
months from the effectivity of this Act.

SEC. 55. Dissolution of Existing Housing Agencies and Corporations. To
fully integrate all the functions and activities of the Government, as well as minimize
duplication of work and thus achieve economy, efficiency and effectiveness of
operation in the management of the Department of Shelter and Urban Development,
the Housing and Urban Development Coordinating Council (HUDCC), the
Presidential Committee for Mass Housing, the National Housing Authority (NHA),

Page 38 of 43,


The National Home Mortgage Finance Corporation (NHMFC), the Home Insurance
Guaranty Corporation (HIGC) and the Housing and Land Use Regulatory Board
(HLURB) are hereby abolished within six (6) months from the effectivity of this Act
subject to Section 33 of this Act, with its qualified personnel to be absorbed by the
Department

The National Building Code Development Office, the Bureau of Design and
the Board of Consultants, all of the Department of Public Works and Highways shall
also be transferred to the ONBO of the Department.

SEC. 56. Transfer of Power and Functions. The powers and functions of
the abolished agencies and corporations and transferred offices are hereby
conveyed to the Department.

The powers vested in the DPWH Secretary as the National Building Official
under P.D. No. 1096 are also hereby transferred to the Secretary of the Department
of Shelter and Urban Development

SEC. 57. Transfer of Rights, Assets and Liabilities. The Department shall,
by virtue of this Act, be subrogated to all rights and assume all the liabilities of the
Housing and Urban Development Coordinating Council, Presidential Commission on
Mass Housing and all other agencies, corporations of the government whose
functions and powers have been transferred to the Department, and all their
pertinent funds, records, property, assets, equipment and such personnel, as may be
necessary, including unexpended portions of their appropriations and/or allocations,
all contracts and liabilities of said offices, agencies, and government units are hereby
transferred to and assumed by the department and shall be acted upon in
accordance with the auditing code and other pertinent laws, rules, and regulations.

SEC. 58. Staffing Pattern. The Secretary shall, with the end in view of
creating a lean but effective organization, prescribed and approved the
organizational framework and staffing pattern within sixty (60) days after the
approval of this Act. The organization, staffing, and compensation standards shall be
based on existing budgeting and compensation rules and regulations.

The authorized positions created therein shall be filled by regular
appointments by the President or the Secretary as the case may be: provided, that,
in the filling of positions created, preference shall be given to the personnel of
abolished agencies: provided, however, that such individuals comply with the
qualification standards set by the Civil Service Commission for the positions that they
shall be appointed to: provided, finally, that, if such individuals possess the same
qualifications, seniority shall be given priority.

SEC. 59. Positions in the Department Requiring the Services of
Registered and Licensed Architects. Upon the effectivity of this Act, all existing

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and proposed positions in the Department, whether career, permanent, temporary or
contractual and primarily requiring the services of an Architect shall be filled only by
registered and licensed architects, to fully comply with Sec. 35 of R.A. No. 9266.

Similarly, positions in the Department requiring the services of registered and
licensed environmental planners shall be filled only by such State-regulated
professionals.

SEC. 60. Transition Period. All transfer of functions, assets, funds,
equipment, property, transactions and personnel in affected national government
agencies; and the formulation and implementation of the internal organic structures,
staffing patterns, operating systems and revised budgets of the Department, shall be
completed within six (6) months; provided, that the officers and employees of the
abolished offices, cies, and government units shall continue, to assume their
posts in holdover capacity until such time as the Department has been organized
and the new officers and employees have been appointed pursuant to the provisions
of this act.

SEC. 61. Impact Mitigation Strategy. The Secretary shall formulate and
implement respective impact mitigation strategies of the Department and its attached
agencies/corporations that will minimize adverse effects on existing personnel of the
creation or modification of organization structures and staffing of the Department and
its attached agencies, in accordance with the pertinent provision of the Civil Service
Code, the Administrative Code, and pertinent budgetary rules and regulations.
Employees separated from the service as a result of the abolition or reorganization
under the provisions of this Act shall, within one (1) month from their separation,
receive a separation pay equivalent to one hundred fifty percent (150%) of their
monthly basic salary for every year of service in the government: Provided that those
who are qualified to retire under existing retirement laws shall be allowed to retire
and be entitled to all benefits provided under said retirement laws and shall receive
said benefits within ninety (90) days from their separation from service.

SEC. 62. Gratuity. Employees separated from the service as a result of the
abolition or reorganization under the provisions of this Act shall, within one (1) month
from their separation, be paid the money value of his/her accumulated vacation and
sick leave, and such retirement gratuity as may be due him/her under existing
retirement laws. Any of the employees and laborers who do not qualify under any
existing retirement law shall be paid one hundred fifty percent (150) of their monthly
basic salary for every year of service in the government, payable in lump sum;
provided however that those who avail of such privileges shall start their government
service anew if subsequently absorbed and government owned entity.

SEC. 63. Formulation of Implementing Rules and Regulations and Other
Implementation Mechanisms. The following implementing rules and regulations
(IRR) shall be prepared and issued as indicated hereunder:

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63.1. The Implementing Rules and Regulations for the operationalization of
the Commission and the conversion of the HLURB into the
Commission, within sixty (60) days upon approval of this Act.

63.2 The Implementing Rules and Regulations for the cration of the
Department, the abolition of the HUDCC and the transfer and
refocusing, as the case may be, of the attached agencies, within sixty
(60) days upon approval of this Act.

63.3.The Promulgation of the rules and regulation governing the hearing
and dispositions of cases and other adjudication functions of the
Commission, within six (6) months after the constitution of the
Commission.

63.4.The Urban Development Planning System, and the corresponding
implementing guidelines, to be completed and operational within six
(6) months upon approval of this Act and the updated Housing and
Urban Development Framework and Plan completed within one (1)
year upon approval of this act.

CHAPTER 13
IMPLEMENTATION AUTHORITY AND FUNDING

SEC. 64. Implementing Authority. The Secretary of the Department is
hereby authorized to undertake the implementation of the provisions of this Act and
implement the necessary organizational changes within the specified six (6) month
transition period

SEC. 65. Authority if Attached Agencies to Reorganize. The boards of
attached corporations and agencies and the [Chairperson and Commissioners] Unit
Heads of the Department are hereby authorized to make the necessary changes and
improvements in their respective internal formal structures. Operating systems,
staffing and budget configuration in order to implement the newly mandated or
refocused mandates and functions stipulated in this Act.

SEC. 66. Protection of Security of Tenure by Affected Personnel. The
existing authority granted pursuant to the preceding two Sections shall be governed
by the provision of R.A. No. 6657 and the relevant civil service rules and regulations
in order to protect the security of tenure of personnel who shall be affected by the
reorganization

SEC. 67. Funding. The amount in excess of the unreleased balance of the
budgets of the Department which is needed for the initial implementation of this Act,
as may be determined by the Secretary in the case of the Department of Shelter and

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Urban Development shall be released by the Department of Budget and
Management within thirty (30) days upon submission by the Department and the
Commission of their respective budget estimates.

CHAPTER 14
MISCELLANEOUS PROVISIONS

SEC. 68. Mandatory Review of the Implementation of this Act. The
Department shall conduct and submit a report to Congress a review of the
implementation and enforcement of this Act, at the end of the second year after the
effectivity of this Act for implementation at the national government level, and at the
end of the fifth year with respect to the devolution of functions to local governments.

SEC. 69. Enforcement of the Act. It shall be the primary duty of the
Department to effectively enforce the provisions of this Act. All duly constituted law
enforcement agencies and officers of national, provincial, city or municipal
government or of any political subdivision thereof, shall, upon the call or request of
the Department, render assistance in enforcing the provisions of this Act and to
prosecute any person violating the provisions of the same.

The Secretary of Justice or his/ her duly designated representative shall act
as legal adviser to the Department and shall render legal assistance as may be
necessary in carrying out the provisions of this Act.

‘Any person may bring before the Department or the aforementioned officers
of the law, complaints relating to violations of this Act committed by any person or

party,

The Department shall file the appropriate charges through the concerned
prosecution office in accordance with law and the rules of court.

SEC. 70. Repealing Clause. All laws, ordinances, rules, regulations, and
other issuances or parts thereof, which are inconsistent with the provisions of this
Act, are hereby repealed or modified accordingly.

Section 477 of R.A. No. 7160 is expressly repealed to permit the Secretary to
appoint or re-appoint duly-qualified building officials at all local government units.

The inconsistent provisions of P.D. No. 1096, otherwise known as the 1977
National Building Code of the Philippines, or its successor law, particularly those
dealing with the functions of the DPWH Secretary as the National Building Official
and of the DPWH as the primary implementing agency and enforcer of the National
Building Code, are hereby expressly repealed.

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SEC. 71. Separability Clause. Any portion or provision of this Act that may
be declared unconstitutional shall not have the effect of nullifying other portions or
provisions hereof as long as such remaining portions or provisions can still subsist
and be given effect in their entirety.

SEC. 72. Effectivity. This Act shall take effect after fifteen (15) days following
its publication in at least two (2) newspapers of general circulation

Approved,

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