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

Sixteenth Congress
First Regular Session

2576

House Bill No.

Introduced by AKBAYAN Representatives
Ibarra M. Gutierrez III and Walden F. Bello

EXPLANATORY NOTE

This bill is an updated version of House Bill No. 5446 filed by Representatives Bag-a0,
Bello, Castello, De Jesus, Herrera-Dy, Lapus, Lazatin, Olivarez, Palmones, Mercado-
Revilla, Leonen-Rizarro, Sarmiento, Tinga, Ty and Valencia in the Fifteenth Congress.

Acticle XIII, Section 9 of the Philippine Constitution expressly mandates that the State
shall, by law, undertake, in cooperation with the private sector, a continuing program of
urban land reform and housing so that decent housing and basic social services will be
made available at affordable cost to underprivileged and homeless citizens in urban

centers and resettlement areas.

‘A key initiative in promoting private sector participation in this Constitutionally-
mandated housing program is Section 18 of Republic Act No. 7279, or the “Urban
Development and Honsing Act” (UDHA), which, in turn, provides that “developers of
proposed subdivision projects shall be required to develop an area for socialized housing
equivalent to at least twenty percent (20%) of the total subdivision area or total
subdivision project cost, at the option of the developer, within the same city or

municipality, whenever feasible.”

‘This “balanced housing” requirement under Section 18 of RA 7279 is intended to ensure

that every government approved housing project, whether specifically for socialized


housing or not, contributes to addressing the nation’s massive problem of homelessness.
It assures that every time the government grants permission for houses to be built, there
will be houses that will be built for the poor.

“The impact of the balanced housing provision of RA 7279 has, however, been seriously
weakened by numerous executive issuances that provide for “alternative” modes of
compliance. Under various issuances, developers may comply by purchasing bonds issued
to finance the housing loan program. Purchase of these bonds is deemed sufficient
compliance with Section 18 of RA 7279. With bonds as substitute, not only are private
developers excused from investing in housing but also increases government financial

obligations on the basis of the bonds.

More significantly, these alternative modes of compliance have actually discouraged actual
houses for the poor from being built, thus seriously undermining a crucial pillar of the

government housing program.

This bill is aimed at addressing this issue by making more explicit the purpose and
parameters of the balanced housing requirement currently provided for in Section 18 of
RA 7279. In so doing, itis envisioned that the program to provide more underprivileged
and homeless Filipinos with the opportunity to have their own homes will be
strengthened, and that ultimately, greater headway will be made in the continuing effort to

uphold the rights and dignity of every Filipino.

In view of the foregoing, the passage of this bill is earnestly sought.

IBARRAM. G! mI

WALDEN f. BELLO


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

Sixteenth Congress
First Regular Session

2576

House Bill No.

Introduced by AKBAYAN Representatives
Ibarra M. Gutierrez III and Walden F. Bello

AN ACT STRENGTHENING THE BALANCED HOUSING
DEVELOPMENT PROGRAM,
AMENDING FOR THAT PURPOSE REPUBLIC ACT NO. 7279, AS
AMENDED BY REPUBLIC ACT NO. 9397, OTHERWISE KNOWN AS THE
URBAN DEVELOPMENT AND HOUSING ACT OF 1992

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

SECTION 1. Title. - This Act shall be known as the “Balanced Housing Development
Program Amendment of 2013.”

SECTION 2. Amendatory Provisions —

(@) Section 18 of Republic Act No. 7279, as amended by Republic Act 9397,
otherwise known as the Urban Development and Housing Act of 1992, is hereby

amended to read as follows:

“Section 18. Balanced Housing Derelopment—The Program
shall include a system to be specified in the Framework
Plan whereby owners and/or developers of proposed
subdivision and condominium projects shall_ be
mandatorily required to develop an area for socialized


Socwmiyrd dH kon

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housing equivalent to at least twenty percent (20%) of the
total subdivision or condominium area or total subdivision
or condominium project cost, at the option of the
developer, within the same city or municipality, and in
accordance with the standards set by the Housing and
Land Use Regulatory Board (HLURB), and existing laws:
Provided, ‘That owners and/or developers of propose

socialized housing subdivision projects and owners and/or
developers of proposed condominium projects which will

sold at socialized housing prices shall

the xequirement herein.

‘The owners and/or developers concerned may comply
with the Balanced Housing Development as herein

required through the following:

a) Development of new settlement;

b) Slum upgrading or renewal of areas for priority
development either through zonal_ improvement
programs or slum improvement and resettlement

programs; or

©) Joint-venture projects for socialized housing with

either the local government unit, housing agency or with

another private developer: Provided, That, incase of the

liable oper of the socialized
hou for_the development of the lat
notwithstanding the provisions of the joint_venture
agreement between the owner and/or developer and the
private developer.


®

‘No other form of compliance to this Section may be
prescribed except through the enactment of a subsequent

law,

Section 21 of Republic Act No. 7279, as amended by Republic Act 9397,
otherwise known as the Urban Development and Housing Act of 1992, is hereby

amended to read as follows:

“Section 21. Basic Services—Socialized housing or
resettlement areas shall _be provided by the local
government unit or the National Housing Authority, in
cooperation with the private owners and/or developers,
and concerned agencies with the following basic services
and facilities:

a) Potable water;

b) Power and clectricity and an adequate power

distribution system;

©) Sewerage facilities and an efficient and adequate solid

waste disposal system; and

4) Access to primary roads and transportation facilities.

The provision of other basic services and facilities, such as

health, education, communication, security, recreation


1 relief, and welfare, shall be planned and shall be given

2 priority for implementation by the local government unit
3 and concerned agencies in cooperation with the private
4 sector and the beneficiaries themselves.
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6 The local government unit, in coordination with the
7 concerned national agencies, shall ensure that these basic
8 services are provided at the most cost-efficient rates, and
9 shall set a mechanism to coordinate operationally the
10 thrusts; objectives and activities of other government
u agencies concerned with providing basic services to
12 housing projects.”
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14 (Section 45 of Republic Act No. 7279, as amended by Republic Act 9397,
15 otherwise known as the Urban Development and Housing Act of 1992, is hereby
16 amended to read as follows:
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18 “Section 45, Penalty Clanse —Any person who violates any
19 provision of this Act shall be imposed the penalty of not
20 more than six (6) years of imprisonment or a fine of not
21 less than five thousand pesos (Php 5,000.00) but not
2 more than one hundred thousand pesos (Php
2B 100,000.00), or both, at the discretion of the court:

24 Provided, That, any person who violates the provision of
25 Section 18 hereof shall be imposed a penalty of not more
26 than six (6) years of imprisonment or a fine of not less

27 than five hundred thousand pesos (Php 500,000.00) but
28 not more than ten million pesos (Php 10,000,000.00), or
29 f for the first offen:

30 f license to do business for the second
31 ‘offense: Provided, further, That, if the offender is a
32 corporation, partnership, association or juridical entity,
33 the penalty shall be imposed on the officer or officers of
34 said corporation, partnership, association or juridical


ee ee ao)

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entity who caused the violation.”

SECTION 3. Implementing Rules and Regulations —Within sixty (60) days from the
effectivity of this Act, the Housing and Land Use Regulatory Board shall promulgate a
new set of Implementing Rules and Regulations for the amended Sections 18, 21 and 45
of Republic Act No. 7279, consistent with the parameters and standards set forth in said
sections. Non-government organizations and people's organizations involved in housing
tights and urban poor advocacy, as well as the private sector, shall be consulted in the

process of drafting these implementing rules and regulations.

SECTION 4. Separability Clause—If for any reason, any provision of this Act is
declared invalid or unconstitutional, the remaining provisions not affected thereby shall

continue to be in force and effect.

SECTION 5. Repealing Clause—All laws, decrees, executive orders, proclamations,
rules and regulations, and other issuances, or part or parts thereof, which are inconsistent

with the provisions of this Act are hereby repealed or modified accordingly
SECTION 6. Effectivity Clause. —This Act shall take effect fifteen (15) days after the
completion of its publication in the Official Gazette or at least two (2) newspapers of

general circulation.

Approved,