Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
EIGHTEENTH CONGRESS 
Second Regular Session 
HOUSE BILL NO. ____ 
Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR. 
AN ACT 
ESTABLISHING THE POLICY TOWARDS THE LEAST DISPLACEMENT OF 
INFORMAL SETTLER FAMILIES THROUGH ON-SITE, IN-CITY AND NEAR-CITY 
RESETTLEMENT STRATEGIES PURSUANT TO THE PEOPLE'S PLAN AND 
MANDATING LOCAL GOVERNMENT UNITS TO PROVIDE BASIC SERVICES 
AND 
LIVELIHOOD COMPONENTS IN RESETTLEMENT SITES 
This measure seeks to elevate the involvement of the urban poor who have long been 
marginalized in decision-making processes on and the enjoyment of urban resources. 
It primarily seeks to amend the three-decade old Republic Act No. 7279 or the Urban 
Development and Housing Act of 1992 ("UDHA"), to ensure the urban poor's access 
to and participation in the development of their cities.  
The bill seeks to strengthen the policy of least displacement that is already present in 
the UDHA by prioritizing on-site development and in-city resettlement as housing 
strategies in order to uphold the right of urban dwellers to enjoy the resources that 
they generate in their cities. In doing so, we try to mitigate the problems of lack of 
opportunities for employment and livelihood and access to basic services and 
facilities, among others. 
Moreover, this proposal is a step towards actualizing the Philippines’ adoption of the 
New Urban Agenda, together with other Member States of the United Nations 
gathered at the United Nations Conference on Housing and Sustainable Urban 
Development (III) in Quito.  
The immediate passage of this measure is earnestly sought. 
LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR. 
May 24, 2021
6:30 PM
9446


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
EIGHTEENTH CONGRESS 
Second Regular Session 
HOUSE BILL NO. ____ 
Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR. 
AN ACT 
ESTABLISHING THE POLICY TOWARDS THE LEAST DISPLACEMENT OF 
INFORMAL SETTLER FAMILIES THROUGH ON-SITE, IN-CITY AND NEAR-CITY 
RESETTLEMENT STRATEGIES PURSUANT TO THE PEOPLE'S PLAN AND 
MANDATING LOCAL GOVERNMENT UNITS TO PROVIDE BASIC SERVICES 
AND 
LIVELIHOOD COMPONENTS IN RESETTLEMENT SITES 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Short Title. – This Act shall be known as the "Least Displacement of 
Informal Settler Families Act." 
SECTION 2. Amendatory Provisions. – For purposes of this Act, the following 
provisions of Republic Act No. 7279, otherwise known as the "Urban Development 
and Housing Act of 1992," are hereby amended as follows:  
a. Section 2 of Republic Act No. 7279 is hereby amended to read as follows:
"SEC. 2. Declaration of State Policy and Program Objectives. - It shall be the 
policy of the Sate to undertake, in cooperation with the private sector, a 
comprehensive and continuing Urban and Development and Housing Program, 
hereinafter referred to as the Program, which shall: 
(a) x x x
(b) x x x
(c) x x x
(d) x x x
(e) Recognize that issues relating to adequate housing, forced evictions or 
homelessness have a profound impact on children due to their vulnerabilities and 
specific needs which are often overlooked by the government, thus, undertaking 
to promote and protect the fundamental rights of the children before, during, and 
after relocation guided by the principles on survival and development, child 
participation, non-dlscrimination, and best interest of the child, and consistent 
with the United Nations Convention on the Rights of the Child.
9446


 
 
(f) Encourage more effective people's participation in the urban development 
process through a mechanism of adequate and genuine consultation in all stages 
of the relocation and resettlement process with the affected communities, which 
should include a space for children, women and other marginalized groups. 
(g) Adopt as a policy the least displacement of people from their dwelling 
places." 
 
b. Section 3 of Republic Act No. 7279 Is hereby amended to read as follows: 
 
"SEC. 3. Definition of Terms. - For purposes ofthis Act: 
“x x x 
“(w) x x x; 
“(x) ‘Zonal Improvement Program or ZIP’ ' refers to the program of the National 
Housing Authority of upgrading and improving Informal Settlements within the 
cities and municipalities of Metro Manila pursuant to existing statutes and 
pertinent executive isssuances; ”(y) 'Adequate and Genuine Consultation' refers 
to the standard of consultation with affected informal settler families (ISFs) 
which shall require the concurrence of all of the following:  
1. Effective dissemination and full access, to the public, of relevant information 
and documents, including but not limited to land records, housing budgets, the 
proposed plan or project, alternative housing options, technical studies, and 
comprehensive resettlement plans. 
2. Reasonable time, which shall not be less than thirty (30) days, for the public 
to review, comment, and object to the proposed plan, project, eviction, or 
demolition; 
3. Provision by the government or non-government organizations of legal, 
technical and other advice to the affected persons on their rights and options; 
4. Separate sessions of open and public consultations with affected households 
In general and affected subsectors in particular, including but not limited to 
women, children, youth, senior citizens, persons with disabilities (PWDs), 
workers, farmers, fisherfolk, and lesbians, gays, bisexuals, and transgenders 
(LGBT); 
5. Public hearings that provide affected ISFs and their advocates with 
opportunities to challenge the eviction decision or present alternative proposals 
and to articulate their demands and development priorities; and 
6. The conclusion of any mediation, arbitration, or adjudication proceedings by 
an independent body vested with constitutional authority such as a court of law, 
when appropriate and availed of, in case no agreement is reached on the 
proposals of the concerned parties. 
“(z) ‘Civil Society Organizations or CSOs’ refers to non-governmental 
organizations (NGOs), people's organizations (POs), cooperatives, trade unions, 
professional associations, faith-based organizations, media groups, indigenous 
peoples movements, foundations and other citizen's groups formed primarily for 
social and economic development to plan and monitor government programs 
and projects, and engage In policy discussions, and actively participate In 
collaborative activities with the government; 
“(aa) ‘In-City Resettlement’ refers to a relocation site within the jurisdiction of the 
local government unit (LGU) where the affected ISFs are living; 
“(bb) ‘Informal Settlements’ refers to: 
1. Residential areas where housing units have been constructed by settlers on 


 
 
land which they occupy illegally; or 
2. Unplanned settlements and areas where housing is not in compliance with 
existing planning and building regulations; 
“(cc) ‘Informal Settler Families (ISFs)’ are individuals or households living in any 
of 
the following places: 
1. Lots, buildings, dwelling units, or other structures without the consent of the 
property owner; 
2. Danger areas; 
3. Areas for government infrastructure projects; 
4. Protected or forest areas, except for indigenous peoples; 
5. Areas for priority development as declared under Proclamation No. 1967, 
series of 1980, if applicable; 
6. Government or public lands or facilities not intended for human habitation; or 
7. Any other places, after being displaced due to natural or man-made hazards.  
“(dd) “Near-City Resettlement” refers to a relocation site within the jurisdiction of 
a local government unit adjacent to the local government unit having jurisdiction 
over the present settlements of the KFs; 
“(ee) “Non-government Organization or NGO” refers to a duly registered 
non-stock, non-profit organization focusing on the upliftment of the basic or 
disadvantaged sectors of society by providing policy advocacy, training, 
community organizing, research, access to resources, and other similar 
activities, as defined under Republic Act No. 8425, otherwise known as the 
'Social Reform and Poverty Alleviation Act and organized and operated 
exclusively for scientific, research, educational, character-building and youth 
and sports development, health, social welfare, cultural or charitable purposes, 
or a combination thereof, and no part of the net income of which insures to the 
benefit of any private individual pursuant to Section 34 (H) (2) (c) (1) of Republic 
Act No. 8424, as amended, otherwise known as the Tax Reform Act of 1997'; 
“(ff) ‘Off-City Resettlement’ refers to a relocation site developed outside and not 
adjacent to the local government unit where the affected ISFs have their 
settlements; 
“(gg) ‘People’s Plan’ refers to the plan formulated and initiated by the beneficiary 
associations, with the assistance of the concerned government agencies, in 
cooperation with the Presidential Commission for the Urban Poor, with or 
without the support of CSOs, which shall contain a site development plan that 
conforms to standards of adequate housing and to the comprehensive land use 
plan of the local government unit under whose jurisdiction the project site is 
proposed to be located. Including architecture and engineering house design, 
community health, sanitation and security plans, as well as nonphysical 
development components such as self-help development, capability building, 
and a system of allocation of socialized housing units. The formulation and the 
resulting plan should promote and protect the welfare of women, children, 
persons with disabilities, and senior citizens; 
“(hh) ‘Social Preparation’ refers to the process of establishing social, 
organizational, and institutional norms and mechanisms which will: (1) enable 
the settlers to cope with changes; and (2) in partnership with concerned 
institutions and stakeholders, encourage the settlers not only to work among 
themselves for the purpose of drawing up and undertaking their housing 
resettlement proposals but also to actively and meaningfully participate in 


 
 
housing resettlement projects undertaken on their behalf, thus, resolving 
collective action problems among community members and coordination 
problems with government and other entities. There shall be separate social 
preparation for children, and for the affected communities of the receiving local 
government unit in case of near-city and off-city relocation;  
“(ii) ‘Adequate Housing’ refers to standards requiring more than just providing 
four walls and a roof. For housing to be adequate, it must, at a minimum, meet 
the following criteria in accordance with the Commission on Human Rights 
(CHR) IV ADV. NO. A2011-003: 
a. Security of Tenure. - Housing is not adequate if its occupants do not have a 
degree of tenure security which guarantees legal protection against forced 
evictions, harassment and other threats. 
b. Availability of Services. - Housing is not adequate if its occupants do not have 
safe drinking water adequate sanitation/ energy for cooking, heating, lighting, 
food storage, or refuse disposal. 
c. Affordability. - Housing is not adequate if its cost threatens or compromises the 
occupant's enjoyment of their other human rights. 
d. Habitability. - Housing is not adequate if it does not guarantee physical safety 
or provide adequate space, as well as protection against cold, damp, heat; rain, 
wind and other threats to health, and structural hazards.  
e. Accessibility. - Housing is not adequate if the specific needs of the 
disadvantaged and marginalized groups are not taken into account. 
f. Location. - Housing is not adequate if it is cut off from employment 
opportunities, health care services, schools, child care centers and other social 
services, or If located in polluted or dangerous areas.  
g. Cultural Adequacy. - Housing is not adequate if it does not respect and take 
Into account the expression of cultural Identity; 
“(jj) ‘Danger Area’ refers to a danger or high risk area which poses a high level of 
threat to public welfare and safety that cannot be addressed through or 
remedied by scientific, physical and engineering methods and, thereby, is 
unsuitable for settlement and permanent structures; Provided, that an area can 
only be declared as a danger or high risk area through an appropriate technical 
study, adequate and genuine public consultation with the affected persons or 
entities, and certification by the appropriate government agency." 
 
c. Section 4 of the same Act is hereby amended to read as follows: 
 
"SEC. 4. Coverage. - The program shall cover all lands in urban and urbanizable 
areas, including existing areas for priority development sites, and in other areas 
that may be identified by the local government units as suitable for socialized 
housing. The program shall also cover all persons whose dwelling places are at 
a risk of lawfully being evicted or demolished or being displaced due to 
man-made or natural hazards." 
 
d. Section 21 of the same Act is hereby amended to read as follows: 
 
"SEC. 21. Basic Services. - Socialized housing or resettlement areas shall be 
provided by the local government unit undertaking relocation and resettlement, 
in coordination with the Department of Human Settlements and Urban 
Development (DHSUD) and, when applicable, with private developers, with the 


 
 
following basic services and facilities: 
i.  Potable and treated water supply; 
ii.  Power and electricity and an adequate power distribution system; 
iii. Sanitation facilities including sewerage facilities, material recovery facilities, 
garbage collection and an efficient and adequate solid waste disposal system; 
iv. Access to primary roads and transportation fedlities; and  
v.  Spaces where children can play and interact with each other such as parks, 
sports complexes, and/or playgrounds, among others. 
The provision of other basic services and facilities such as health, education, 
communications, security, recreation, relief welfare, and livelihood components 
shall be planned and shall be given priority for implementation by the local 
government unit and concerned agencies in cooperation with the private sector 
and the beneficiaries themselves. The concerned local government unit 
undertaking relocation and resettlement and the DHSUD shall sign a 
memorandum of agreement (MOA) which shall specify their duties and 
responsibilities and timetables for their completion. Copies of the MOA shall be 
published in the website of the lead local government unit and given to the 
affected ISPs at least thirty (30) days prior to the start of the resettlement 
process; Provided, that the recipient local government units in cases of near-city 
or off-city resettlement shall also be consulted and shall participate in the 
provision of the basic services as required under this provision. 
In instances where the resettlement site is located in another local government 
unit such as near-city or off-city resettlement, the local government unit 
implementing the relocation and resettlement and the DHSUD, in coordination 
with the appropriate agencies, shall be responsible for ensuring the availability 
of basic services and facilities. Including a livelihood component for the 
beneficiaries being relocated. For this purpose, they shall enter into a 
memorandum of agreement (MOA) with the recipient local government unit in 
providing therein their duties, responsibilities, and timetables for the provision of 
basic services. Copies of the MOA shall be published in the website of the lead 
local government unit and given to the affected ISFs at least thirty (30) days 
prior to the start of the resettlement process. 
The local government unit(s) involved. In coordination with DHSUD, shall 
ensure that these basic services are provided at the most cost-efficient rates, 
and shall set a mechanism to coordinate operationally the thrusts, objectives 
and activities of other government agencies concerned with providing basic 
services to housing projects. The DHSUD and the Bureau of Local Government 
Finance of the Department of Finance shall jointly work on the cost-sharing 
mechanism necessary to fully implement the provision of such other basic 
services and faciIities.” 
 
e. Section 23 of the same Act is hereby amended to read as follows: 
 
"SEC. 23. Participation of Program Beneficiaries or Affected ISFs, Formation of 
Beneficiary-Association, and Formulation and Implementation of a People's 
Plan. - The LGUs, in coordination with DHSUD, PGUP and concerned 
government agencies, shall afford program beneficiaries or affected ISFS or 
their duly designated representatives an opportunity to process over matters 
involving the protection and promotion of their legitimate collective interests 
which shall include adequate and genuine consultation as well as appropriate 


 
 
documentation and feedback mechanisms. They shall also be encouraged to 
organize themselves into an association for accreditation as beneficiaries or 
awardees of ownership rights under the resettlement program, community 
mortgage program, land tenure assistance program, and other similar programs 
in relation to a socialized housing project actually being implemented by the 
national government or by the local government units. They shall assist the 
government in preventing the incursions of professional squatters and members 
of squatting syndicates into their communities. 
In instances when the affected beneficiaries have failed to organize themselves 
or form an association within a reasonable period prior to the implementation of 
the program or project affecting them, adequate and genuine consultation 
between the DHSUD and the affected beneficiaries shall be conducted with the 
assistance of the PGUP and concerned non-government organizations until an 
association is formed in place. 
The beneficiary association, in coordination with the PGUP, with or without the 
support of the CSOs, shall formulate a People's Plan through adequate and 
genuine consultation.  
The association, with the assistance of CSOs and DHSUD, including the 
National Anti-Poverty Commission (NAPC), National Housing Authority (NHA), 
Qty or Municipal Social Welfare and Development Office (C/MSWDO), Social 
Housing Finance Corporation (SHFC), and other relevant government agencies, 
shall agree on, develop and implement the people's plan.  
In accordance with the protection guidelines provided under Section 28 of this 
Act, a resettlement action plan shall be an indispensable component of the 
people's plan. The Resettlement Action Plan shall include the following 
objectives: 
(a) Ensure safe, affordable, decent, and humane conditions of relocation. 
incorporating therein appropriate disaster risk reduction management and 
climate change adaptation standards; 
(b) Provide adequate social preparation; and 
(c) Prevent forced eviction; Provided, that primary consideration shall be given to 
the housing financial scheme suggested in the people's plan. 
 
f. Section 26 of the same Act is hereby amended to read as follows: 
 
"SEC. 26. Urban Renewal and Resettlement. - Urban Renewal and 
Resettlement shall include the rehabilitation and development of informal 
settlements and resettlement of program beneficiaries in accordance with the 
provisions of this Act. On-SIte development shall be implemented after 
adequate and genuine consultation with the affected ISFs, and in accordance 
with the people's plan formulated pursuant to Section 23 of this Act, in order to 
ensure minimum movement of informal settler families.  
Where demolition or eviction is allowed in the area occupied by the program 
beneficiaries pursuant to Section 28 of this Act, and on-site development cannot 
be undertaken by reason thereof, the In-city resettlement of the beneficiaries of 
the program from their existing places of occupancy shall be undertaken only 
after conducting a child rights impact assessment and a risk reduction 
assessment, after compliance with the procedures laid down in Section 28 of 
Republic Act 7279, and in accordance with the preferences of the affected ISFs 
as contained in the People's Plan. A technical study conducted by the 


 
 
concerned LGU shall be necessary as a means of verification that on-site 
development is not feasible.  
Should In-city resettlement be not feasible, near-city resettlement shall be 
considered and undertaken in accordance with the requirements for In-city 
resettlement Off-city resettlement shall be the last resort and must only be 
resorted to when directly requested by the ISFs themselves, and must satisfy 
the requirements of adequate and genuine consultation prior to relocation as 
well as the requirements for In-city resettlement. 
Acquisition of lands to be used for resettlement programs shall comply with the 
provisions of Section 9 of this Act." 
 
g. Section 29 of the same Act is hereby amended to read as follows:  
 
"SEC. 29. Resettlement - Within two (2) years from the effectivity of this Act, the 
local government units, in coordination with the DHSUD, shall implement the 
relocation and resettlement of ISFs living in danger areas. The local government 
unit, in coordination with the DHSUD, shall provide relocation or resettlement 
sites that conform to adequate housing standards with basic services and 
facilities and access to employment and livelihood opportunities sufficient to 
meet the basic needs of the affected families. For this purpose, the local 
government unit may purchase lands outside of its jurisdiction. 
Where the land occupied by the underprivileged and homeless persons is 
privately-owned, the local government unit shall, in coordination with the 
DHSUD, negotiate with the owner for the purchase of the occupied property. 
Should the negotiation fail, the local government unit may resort to expropriation 
as an exception to Section 10 of Republic Act 7279; Provided, that they have 
been in continuous an uninterrupted possession thereof for at least thirty (30) 
years. 
All local government units shall identify potential resettlement areas in their 
Comprehensive Land Use Plans (CLUPs). 
In addition to the funding sources provided under Section 42 of this Act, the 
allocation for the basic services and facilities may be taken by the local 
government unit implementing the relocation or resettlement from the twenty 
percent (20%) of the Internal revenue allotment appropriated for development 
projects as mandated under Section 187 of Republic Act No. 7160, otherwise 
known as the 'Local Government Code of 1991'.” 
 
SECTION 3. Audit of resettlement sites. – The Department of Human Settlements 
and Urban Development, in coordination with the Presidential Commission for the 
Urban Poor, shall conduct a regular audit of existing resettlement sites to determine 
the occupancy by the program beneficiaries in the said sites, and compliance with the 
standards of adequate housing and provision of basic services, as provided in this 
Act.  
 
 
SECTION 4. Implementing rules and regulations. – The principles, policies and 
provisions of this Act shall be incorporated in the National Shelter Program. 
 
The DHSUD, in consultation and in coordination with appropriate government 
agencies, CSOs, NGOs, and representatives from the private sector and ISFs, shall 
promulgate a new set of implementing rules and regulations within sixty (60) days 


 
 
from the effectivity of this Act. The implementing rules and regulations shall be 
consistent with the provisions of this Act, particularly with the amendment, 
parameters, and standards introduced to Sections 2, 3, 4, 21, 23, 26, and 29 of the 
"Urban Development and Housing Act of 1992" and shall include the following: 
 
a. A People's Plan template to guide Informal settler families in the development of 
their own People's Plan; Provided, however, that such template shall be used to 
benchmark the minimum standards in a People's Plan; and 
 
b. A guide to effective implementation of the People's Plan, including details on the 
necessity of the Issuance of internal memoranda by concerned agencies. 
 
The implementing rules and regulations issued pursuant to this section shall take 
effect thirty (30) days after its publication in two (2) national newspapers of general 
circulation.  
 
SECTION 5. Congressional oversight committee. – There is hereby created a 
Congressional Oversight Committee to oversee, monitor, and evaluate the 
implementation of this Act. 
 
The Oversight Committee shall be composed of five (5) members from the Senate 
which shall include the Chairperson of the Senate Committee on Urban Planning, 
Housing and Resettlement, and five (5) members from the House of Representatives 
which shall include the Chairperson of the Committee on Housing and Urban 
Development. The four (4) other members from each Chamber shall be designated 
by the Senate President and the Speaker of the House of Representatives, 
respectively. The Minority in each Chamber shall have at least one (1) representative. 
 
 
SECTION 6. Repealing Clause. – All laws, decrees, executive orders, proclamations, 
rules and regulations, and other issuances, or parts thereof which are inconsistent 
with the provisions of this Act are hereby repealed, amended or modified accordingly.  
 
SECTION 7. Separability Clause. – If, for any reason, any part, section or provision of 
this Act is held invalid or unconstitutional, the remaining provisions not affected 
thereby shall continue to be in full force and effect. 
 
SECTION 8. Effectivity. – This Act shall take effect fifteen (15) days after publication 
in the Official Gazette or in a newspaper of general circulation.  
 
Approved,