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

Sixteenth Congress
First Regular Session

HOUSE BILLNo.__ 841

Introduced by Honorable Erlinda M. Santiago

EXPLANATORY NOTE

This bill seeks to require local government units (LGUs) to
appropriate five percent (5%) of their internal revenue allotment (IRA) for
the relocation and/or resettlement of underprivileged and homeless
constituents.

Under the Urban Development and Housing Act of 1992, LGUs are
mandated to provide areas within its jurisdiction for the relocation and
resettlement of informal settlers in their localities. The law specifically aims
to address the squatter problem in Metro Manila and other major cities and
municipalities nationwide. Despite said law, however, decent housing still
remains a major hurdle to overcome.

Unfortunately, many LGUs fail to provide suitable resettlement or
relocation areas due to inadequacy of basic needs and services thereat. They
complain of financial difficulties in the implementation of their relocation
and resettlement plans. The continuous exodus of informal settlers is an
added burden to LGUs.

In the light of the foregoing, this bill aims to assist the LGUs in
providing relocation and resettlement areas by setting aside five percent
(5%) of their respective IRA for the purpose. This will not only strengthen
the financial capabilities of the LGU concerned but will also ensure that the
basic services, programs and projects essential to resettlement communities
are implemented with greater efficiency.

Approval of the bill is highly recommended.


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

Sixteenth Congress
First Regular Session

HOUSE BILL NO. 841

Introduced by Honorable Erlinda M. Santiago

AN ACT

MANDATING LOCAL GOVERNMENT UNITS TO ALLOCATE
FIVE PERCENT (5%) OF THEIR INTERNAL REVENUE
ALLOTMENT FOR THE RELOCATION AND RESETTLEMENT
OF UNDERPRIVELEGED AND HOMELESS — CITIZENS,
AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 7279,
OTHERWISE KNOWN AS THE URBAN DEVEOPMENT AND
HOUSING ACT OF 1992.

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

SECTION 1. Section 42 (e) Republic Act. 7279 is hereby amended to
read as follows:

“SEC. 42. Funding. — Funds for the urban
development and housing program shall come from the
following:

(a) x x x

Xxx Xxx Xxx

“(e) Proceeds from social housing tax and subject to the
concurrence of the local government units concerned, idle land
tax as provided in Section 236 of the Local Government Code

of 1991, and other laws.


“IN ADDITION, EACH LOCAL GOVERNMENT
UNIT (LGU) SHALL APPROPRIATE IN ITS ANNUAL
BUDGET AN AMOUNT EQUIVALENT TO FIVE
PERCENT (5%) OF ITS TOTAL SHARE IN THE
INTERNAL REVENUE ALLOTMENT (IRA) TO BE USED
EXCLUSIVELY FOR SUITABLE RELOCATION AND/OR
RESETTLEMENT AREAS OF THEIR UNDERPRIVILEGED
AND HOMELESS CONSTITUENTS."

x x x

SEC.

‘The five percent (5%) appropriated amount of the LGU shall
be pooled in a Fund to be administered by the Home Guaranty Corporation
(HGC).

SEC. 3. As soon as the fund is placed under HGC’s administration,
the Home Development Mutual Fund (HDMF) and National Home
Mortgage Finance Corporation (NHMFC) shall each extend counterpart
funding assistance.

SEC. 4. The Secretary of the Department of Interior and Local
Government (DILG), in coordination with the Housing and Urban
Development Coordinating Council (HUDCC), shall promulgate the
necessary rules and regulations for the effective implementation of the
provisions of this Act.

SEC. 5 This Act shall take effect fifteen (15) days after its publication
in two (2) newspapers of general circulation.

Approved,