FIFTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
) 
HI 
JUL -1 1'1 :21 
SENATE 
S. No. 
66 
Introduced by Senator JUAN MIGUEL F. ZUBIRI 
EXPLANATORY NOTE 
Housing is one of the major problems the country is faced with. With millions of 
housing units backlog, the government housing agencies as well as the private sector 
seem to be helpless in meeting the demands for housing units. 
What is compounding the situation is the proliferation of colonies of informal 
settlers in many urban areas and cities, thus affecting the developmental programs of 
these areas. Even danger zones such as railroad tracks and banks of esteros and rivers 
have become sites of improvised settlements for our poor countrymen. 
While at present, there are housing agencies tasked to address different aspects 
of the housing sector, the government needs to have a holistic approach to the housing 
sector. It should have a department that is focus in the housing sector and that would 
coordinate and synthesize all efforts and programs of the different housing agencies. 
This bill seeks to answer such predicament. It provides for the creation of a 
Department of Housing and Urban Development and the rationalization of the housing 
and urban development programs of the national government. It will streamline the 
bureaucracy and the process of formulating human settlement programs to meet the 
demands of our increasing population and decreasing space. As a full-pledge 
department, the shelter program shall likewise be elevated in priority and attention given 
by national government to the problem of the housing sector. 
It is in this light that approval of this bill is earnestly sought. 


FIFTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
) 
SENATE 
S()l 
S. No. _-=--=0,-
Introduced by Senator JUAN MIGUEL F. ZUBIRI 
AN ACT 
CREATING THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT, 
RATIONALIZING THE ORGANIZATION AND FUNCTIONS OF GOVERNMENT 
AGENCIES AND CORPORATIONS RELATED TO HOUSING AND URBAN 
DEVELOPMENT, AND FOR OTHER PURPOSES 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
1 
CHAPTER 1 
2 
GENERAL PROVISIONS 
3 
Section 1. Title. - This Act shall be known as the "Omnibus Housing and Urban 
4 
Development Act of 2010." 
5 
Sec. 2. Declaration of Policy. - It is hereby declared the policy of the State to: 
6 
(a) Undertake a comprehensive and continuing program of housing and urban 
7 
development which will make available at affordable cost, decent housing and basic 
8 
services to the Filipino people, especially those who are underprivileged and homeless; 
9 
(b) Adopt workable policies that will guarantee the rationalization and optimum 
10 
utilization of land 
11 
(c) Develop a 
sustainable and viable housing finance system that shall tap 
12 
alternative, including non-traditional sources of funds, for the government's housing 
13 
program; 
14 
(d) Rationalize and strengthen the urban development and shelter delivery system of 
15 
the government by enhancing local autonomy and decentralization and provide local 
16 
government units more power, authority, responsibility and resources; and 
17 
(e) Encourage more effective peoples' participation by institutionalizing their 
18 
involvement at all levels of the urban planning and development process. 


1 
Sec. 3. Definition of Terms. - For purposes of this Act, the terms or words and 
2 
phrases used shall mean or be understood as follows: 
3 
(a) " Abot-Kaya Pabahay Fund" - refers to the fund established under Republic 
4 
Act No. 6846, otherwise known as "The Social Housing Support Fund Act", as 
5 
amended by republic Act No. 7835, otherwise known as "The Comprehensive 
6 
and Integrated Shelter Financing Act of 1994". The fund shall be used 
7 
exclusively to enhance the affordability of low-cost housing by low-income 
8 
families through its four (4) components, namely: amortization support, 
9 
development financing, cash flow guaranty, interest subsidy and liquidity 
10 
support. 
11 
(b) Agricultural Land Conversion - refers to the undertaking of any activity that 
12 
will modify or alter the physical characteristics of agricultural lands to render 
13 
them suitable for non-agricultural purposes with an approved order of 
14 
conversion from the Secretary of the Department of Agrarian Reform (DAR). 
15 
(c) CISFA - refers to Republic Act No. 7835. 
16 
(d) "Community Mortgage Program" - refers to the mortgage-financing program 
17 
of the National Home Mortgage Finance Corporation (NHMFC), which assists 
18 
legally organized associations of underprivileged and homeless citizens to 
19 
purchase and develop a tract of land under the concept of community 
20 
ownership. 
21 
(e) "Formal sector" - refers to members of the Government Service Insurance 
22 
System (GSIS), Home Development Mutual Fund (HDMF) and the Social 
23 
Service Security System (SSS). 
24 
(f) "Homeless and underprivileged" - refers to the beneficiaries of Republic Act 
25 
No. 7279, otherwise known as the "Urban Development and Housing Act 
26 
(UDHA), and to individuals or families whose income or combined household 
27 
income falls within the poverty threshold as defined by the National Economic 
28 
and Development Authority (NEDA), who do not own housing facilities, who 
29 
live in makeshift dwelling units, and do not enjoy security of tenure. 
30 
(g) "Informal sector" - refers to non-members of the GSIS, HDMF, and the SSS. 
31 
(h) "New town" - refers to any large-scale planned development, which includes 
32 
housing, work places, and related facilities within a more or less self-
33 
contained environment. 
34 
(i) "Secondary mortgage market" - refers to the system, which entails purchase, 
35 
acquisition, discounting or refinancing of loan and mortgage packages or 
2 


1 
participation therein. These instruments, in turn, are traded in the financial 
2 
market through issuance and/or sale of bonds, promissory notes, debentures, 
3 
conveyances and other financial instruments or participation therein, backed 
4 
by the same pool or mortgages, securitizations, and other assets. 
5 
G) "Socialized housing" -
refers to housing programs and projects covering 
6 
houses and lots or home lots only undertaken by the government or the 
7 
private sector for the underprivileged and homeless citizens which shall 
8 
include sites and services development, long term financing, liberalized terms 
9 
on interest payments, and such other benefits in accordance with the 
10 
provisions of this Act. 
11 
(k) "Urban development" - refers to the process of occupation and use of land or 
12 
space for such activities as residential, industrial, commercial and the like, 
13 
necessary to carry out the functions of city life. It entails building or rebuilding 
14 
of more or less permanent structures over land that is often withdrawn or 
15 
converted from its original use, resulting in the creation of the built 
16 
environment. 
17 
(I) "Urban planning" -
refers to a process, also called city planning or town 
18 
planning, that involves planning for diverse elements that comprise an 
19 
urbanized area including its physical infrastructure, environment, housing and 
20 
transportation, and management of land use and urban growth. 
21 
(m) "Urban renewal" - refers to the idea of consciously renewing the outworn 
22 
areas of towns and cities, through redevelopment and rehabilitation. 
23 
Sec. 4. Statement of Objectives. - Toward this end, the State shall: 
24 
(a) Formulate and oversee the implementation of a comprehensive housing and 
25 
urban development policy as an integral part of national development plans to regulate 
26 
and direct urban growth and expansion towards a dispersed urban net and to achieve a 
27 
more balanced urban-rural interdependence; 
28 
(b) Undertake 
with 
the 
partiCipation 
of the 
private 
sector a continuing 
29 
comprehensive, affordable and sustainable housing program; 
30 
(c) Establish a sustainable housing finance system that ensures affordable housing 
31 
through low down payment, long-term financing and low interest rate; 
32 
(d) Improve coordination of national government housing and urban development 
33 
policies and programs and extend adequate technical and material assistance to local 
34 
government units; 
3 


1 
(e) Encourage participation of all .stakeholders in housing and urban development, 
2 
such as local government units (LGUs), non governmental organizations (NGOs), 
3 
peoples' organizations (POs) and the private sector; 
4 
(f) Rationalize the structure, powers and functions of the different housing and 
5 
urban development agencies and integrate all housing and urban development policies, 
6 
plans, programs and projects of various government corporations and agencies to 
7 
expedite the delivery of decent, affordable and sustainable housing and urban 
8 
development projects; and 
9 
(g) Promote the application of technologies that reduces costs and improve the 
10 
quality of habitability of housing. 
11 
12 
CHAPTER II 
13 
THE DEPARTMENT PROPER 
14 
Sec. 5. Creation of the Department of Housing and Urban Development. -
15 
To carry out the above-declared policy, there is hereby created a Department of 
16 
Housing and Urban Development, hereinafter referred to as the Department. 
17 
The Department shall be the primary agency of the government that will prepare, 
18 
integrate, coordinate and supervise plans, programs, projects and activities of the 
19 
government relative to urban planning, development and renewal, including land use 
20 
and zoning, housing provision, regulation and finance, and marginal settlement 
21 
assistance and services. 
22 
Sec. 6. Powers and Functions. - The Department shall have the following 
23 
powers and functions: 
24 
(a) Formulate, 
implement 
and 
update, 
consistent with 
approved 
national 
25 
development plans and guidelines on land use, a comprehensive National Urban 
26 
Development and Housing Framework. This Framework will specify the policies, plans, 
27 
programs, strategies and mechanism in order to promote a sustainable, ecologically-
28 
sound and well-governed housing and urban development; 
29 
(b) Provide for the development of: (1) a sustainable market-oriented housing 
30 
finance system which promotes the adequate flow of priVate funds into the primary and 
31 
secondary mortgage markets; and (2) a complementary system of well-targeted and 
32 
transparent housing subsidy mechanisms for the less privileged and homeless; 
4 


1 
(c) Ensure the provision of adequate housing stock to meet the needs of all income 
2 
groups, especially the underprivileged and homeless in urban centers and in 
3 
resettlement and rural areas; 
4 
(d) Pursue an urban renewal of blighted and slum areas, the resettlement and 
5 
relocation of informal dwellers, and the containment of squatting, pursuant to law, in a 
6 
just and humane manner; 
7 
(e) Supervise all corporations and agencies attached to the Department namely: 
8 
Home Guaranty Corporation (HGC), National Housing Authority (NHA), National Home 
9 
Mortgage Finance Corporation (NHMFC), Home Development Mutual Fund (HDMF), 
10 
and Housing and Urban Development Adjudication Commission (HUDAC), to (1) ensure 
11 
adherence, consistency and integration with Department policies, plans and programs; 
12 
(2) monitor the performance and soundness of their management and financial pOlicies 
13 
in accordance with the government's housing and urban development framework; 
14 
(f) Promulgate, amend or repeal such rules and regulations as may be necessary to 
15 
complement the intent and purposes of.this Act, which upon approval by the President 
16 
and after due publication thereof, shall have the force of law; 
17 
(g) Effect and oversee a single regulatory system that shall govern all activities 
18 
relative to the planning, production, marketing and maintenance of residential and 
19 
commercial development projects; 
20 
(h) Develop and establish a sector performance monitoring and assessment 
21 
mechanism and monitor and report on the performance of the sector, national 
22 
government agencies and LGUs in urban development and housing and enable 
23 
continuing improvements in sector policy and strategy formulation; 
24 
(i) Adopt and promulgate development standards and guidelines that shall govern 
25 
the preparation and implementation of land use plans and zoning ordinances of LGUs 
26 
and property development of the public and private sectors; 
27 
G) Provide technical assistance and information to assist LGUs in developing 
28 
solutions to problems on housing, community, and urban development and/or renewal; 
29 
(k) Coordinate the development activities of LGUs toward a more effective housing 
30 
delivery, optimal land use and the balanced growth of urban and urbanizing 
31 
communities in relation to demographic factors, productive capacity and natural 
32 
resource endowment; 
33 
(I) Exercise initiative and, under the directions of the President, assume a lead role 
34 
in coordinating the activities of other agencies and instrumentalities that impact on 
35 
urban development; 
5 


1 
(m) Call on other agencies or instrumentalities of the govemment and private entities 
2 
for cooperation and assistance in the performance of its functions; 
3 
(n) Monitor compliance and provide policy directions, standards and technical 
4 
assistance to LGUs in the preparation of their respective land use plans and zoning 
5 
ordinances subject to the over-all land use plan of the regional development councils 
6 
and the NEDA; 
7 
(0) Undertake a rational, balanced, orderly and efficient development of new 
8 
settlements and the redevelopment of existing urban communities that indicate 
9 
potentials for accelerated growth. Such activities shaff assure the dwellers thereon of 
10 
decent and affordable housing, job and livelihood opportunities, efficient mass transit, 
11 
public safety, health care, educational opportunities and clean environment; 
12 
(p) Conduct continuing research and development of innovative and indigenous 
13 
technologies that will enhance housing affordability; 
14 
(q) Ensure consumers' education and protection and establish and administer 
15 
mechanisms such as the development, maintenance, updating and upgrading of an 
16 
industry information system and data bank which shall include a master list of 
17 
beneficiaries; 
18 
(r) Establish a mechanism to identify, update and validate and determine full 
19 
eligibility of target beneficiaries for socialized housing programs and projects in order to 
20 
maximize government resources and avoid double availment of such programs and 
21 
projects; 
22 
(s) Discharge all responsibilities of government that may arise from agreements and 
23 
other commitments on housing, land use and urban development to which it is a 
24 
signatory, including the determination of forms of assistance for housing, land use and 
25 
urban development to be extended through multilateral or bilateral assistance program; 
26 
(t) Determine, fix and collect reasonable amounts to be charged as administrative 
27 
fees, fines and penalties; as well as issue motu propio, after the conduct of appropriate 
28 
investigation, notices of violation, cease and desist and/or closure and demolition 
29 
orders, ejectment and summary abatement orders, necessary for the effective 
30 
implementation of all laws, rules and regulations, and other legal issuances enforced by 
31 
the Department; 
32 
(u) Determine, fix and collect reasonable amounts to be charged as administrative 
33 
fess, fines and penalties on any natural or juridical person who practice real estate 
34 
services without any license; and 
6 


1 
(v) Perform such other acts not inconsistent with this Act as are necessary to 
2 
achieve its purposes. 
3 
Sec. 7. Composition. - The Department shall be headed by a Secretary. The 
4 
Department proper shall be composed of the Office of the Secretary, the Offices of the 
5 
Undersecretaries and Assistant Secretaries, the bureaus, services, and other offices of 
6 
the Department. 
7 
Sec. 8. The Secretary. - The Secretary shall be appointed by the President, 
8 
subject to the confirmation by the Commission on Appointments. 
9 
The Secretary in addition to the regular powers and functions provided under 
10 
Section 7, Chapter 2, Book IV of the Administrative Code of 1987, shall have the 
11 
following powers and functions: 
12 
(a) Provide executive direction, control and supervision over the entire operations of 
13 
the Department; 
14 
(b) Rationalize delivery systems as is necessary for the effective attainment of the 
15 
objectives of the Department, including the creation of regional and field offices, other 
16 
service units and divisions, and the delegation of authority to regional and field offices 
17 
for the decentralized programs, subject to the provisions of existing laws; 
18 
(c) Call on other government and private entities for cooperation and assistance in 
19 
the performance and discharge of the Department's functions; 
20 
(d) Coordinate with LGUs, other agencies, and public and private interest groups, 
21 
including NGOs and POs on Department policies and initiatives; 
22 
(e) Restructure the internal organization of the Department, subject to the approval 
23 
of the President; 
24 
(f) Recommend to the President on the restructuring of the structures of its attached 
25 
agencies and corporations; 
26 
(g) Review 
existing 
rules 
and 
regulations 
governing 
financing 
schemes, 
27 
homeowners associations and other issues attendant to the different shelter programs 
28 
and projects, with the end view of ensuring their effectiveness and efficiency; and 
29 
(h) Formulate such rules and regulations and exercise such other powers as may be 
30 
necessary to implement the objectives of this Act. 
31 
Sec. 9. The Undersecretaries. - The Secretary shall be assisted by two (2) 
32 
Undersecretaries, who shall be appointed by the President upon recommendation of the 
33 
Secretary: Provided, that one of the Undersecretaries shall be a career officer coming 
7 


1 
from the ranks of the existing government housing agencies and offices. They shall 
2 
have the powers and functions as provided for in Section 10, Chapter 2, Book IV of the 
3 
Administrative Code of 1987, and other powers and functions that will be assigned by 
4 
the Secretary. 
5 
The Offices of the Undersecretaries shall consist of the Undersecretaries and 
6 
their respective immediate staff. 
7 
Sec. 10, Assistant Secretaries. -
The Secretary shall be assisted by a 
8 
maximum of three (3) Assistant Secretaries who shall be career officers appointed by 
9 
the President upon the recommendation of the Secretary' 
10 
The respective assignments of the Assistant Secretaries shall be determined by 
11 
the Secretary' 
12 
Sec. 
11. 
Qualifications. -
No person shall be appointed Secretary, 
13 
Undersecretary or Assistant Secretary of the Department unless he is a citizen and a 
14 
resident of the Philippines, of good moral character, and of proven competence and 
15 
integrity. 
16 
Sec. 12. Bureaus. - The Department shall have the following Bureaus: (a) 
17 
Financial and Institutional Development Bureau, (b) Urban Development Bureau, (c) 
18 
Housing Technology Bureau, (d) Realty Regulation and Consumer Protection Bureau, 
19 
and (e) Settlements and Social Housing Bureau. 
20 
The bureaus shall perform the following functions: 
21 
(a) Financial and Institutional Development Bureau -
22 
(1) Provide fiscal and financial incentives to LGUs, the private sector, NGOs and 
23 
POs to encourage their full participation in ensuring adequate housing stock especially 
24 
for low-income families; 
25 
(2) Institute a mechanism to ensure a consistently high collection efficiency and the 
26 
viability of the national shelter program; 
27 
(3) Assist in and facilitate the sourcing of adequate housing and urban development 
28 
funds from foreign, local and other alternative sources; 
29 
(4) Facilitate the development of a sustainable market-oriented housing finance 
30 
system which promotes the adequate flow of private funds into the primary and 
31 
secondary mortgage markets; 
32 
(5) Administer programs to LGUs, community associations, cooperatives and other 
33 
private groups to improve their capability to engage in all aspects of urban 
8 


1 
development/renewal programs, housing and resettlement, including the restoration of 
2 
neighborhoods, the investment in or improvement of public facilities, and rehabilitation 
3 
of housing; 
4 
(6) Extend technical assistance to the local housing board or any special body on 
5 
housing within an LGU and housing cooperatives in the preparation of local shelter 
6 
plans and projects; 
7 
(7) Accredit, train and extend assistance to homeowners' associations or 
8 
cooperatives of targeted beneficiaries for purposes related to housing, and evaluate and 
9 
recommend the same for possible availment of a housing program or project; 
10 
(8) Monitor the implementation of projects and programs under its jurisdiction; and 
11 
(9) Perform such other related functions as may be assigned to it by the Secretary. 
12 
(b) Urban Development Bureau -
13 
(1) Promulgate appropriate rules and regulations for the proper implementation and 
14 
enforcement of predetermined national standards and guidelines on land use, urban 
15 
planning and development; 
16 
(2) Install new and appropriate mechanisms for the extension of technical and other 
17 
forms of assistance to LGUs to ensure that their land use plans and zoning ordinances 
18 
are consistent with prescribed standards and guidelines and national policies and other 
19 
issuances of the Department and NEDA; 
20 
(3) Coordinate with the Public Estate Authority (PEA) in the development of new 
21 
towns with complete basic facilities and services in urbanizable and urbanizing areas, 
22 
including the identified growth areas such as, but not limited to, CALABARZON, East 
23 
Asian Growth Area and the North Quadrangle, in order to decongest existing urban 
24 
communities; 
25 
(4) Assist the LGU in undertaking a rational well-balanced, orderly and efficient 
26 
redevelopment/renewal of existing urban communities; 
27 
(5) Assist in the formulation and updating of national objectives for housing and 
28 
urban development, specifically the National Urban Development Framework; 
29 
(6) Monitor the implementation of projects and programs under its jurisdiction; and 
30 
(7) Perform such other related functions as may be assigned by the Secretary. 
31 
(c) Housing Technology Bureau-
32 
(1) Study and promulgate appropriate standards on all types of housing construction; 
9 


1 
(2) Review and update national standards and technical requirements for economic 
2 
and socialized housing projects; 
3 
(3) Accredit, promote and encourage the development and utilization of innovative 
4 
housing technology that can reduce the cost of housing and within the reach of the poor 
5 
without sacrificing safety requirements, and provide for the prototyping/piloting of the 
6 
same; 
7 
(4) Provide awards, incentives and citations to innovative and ingenious discoveries 
8 
and inventions in coordination with the Department of Science and Technology (DOST) 
9 
and the Board Of Investments (BOI); 
10 
(5) Publicize findings and research on new technologies; 
11 
(6) Participate in local and international expositions, competitions, and various 
12 
research and development activities on housing technology; 
13 
(7) Monitor, evaluate and validate the programs and projects under its jurisdiction; 
14 
and 
15 
(8) Perform such other related functions as may be assigned to it by the Secretary. 
16 
(d) Realty Regulation and Consumer Protection Bureau-
17 
(1) Oversee the enforcement of the approved rules, regulations and standards on all 
18 
types of housing developments such as subdivision, condominium, townhouse, single-
19 
detached or multi-unit housing, industrial subdivisions, industrial condominiums, farm 
20 
subdivisions, 
resort 
and 
leisure 
estates, 
memorial 
parks, 
office/commercial 
21 
condominiums, condominium-hotels (condotels) and commercial centers; 
22 
(2) Oversee the issuance by the regional offices of certificates of registration and 
23 
licenses to sell for all real estate development projects, and the collection of the 
24 
necessary penalties, fines and fees, and monitor, assess and investigate compliance 
25 
with the approved subdivision and condominium plans; 
26 
(3) Continually streamline the implementation and enforcement of regulations, 
27 
including the regulatory aspect of the urban land reform program, the Subdivision and 
28 
Condominium Buyer's Protective Decree, land value and building rental regulations, 
29 
Rent Control Law, and other related laws; 
30 
(4) Undertake the acceptance and initial processing of complaints of housing related 
31 
cases mentioned in Section 23 of this Act and the referral of the same to the housing 
32 
arbiters; 
10 


1 
(5) Accredit duly licensed brokers, through their organizations, to source lands for 
2 
project development and to market certain housing inventories or to solicit qualified 
3 
beneficiaries; 
4 
(6) Accredit developers to undertake the development of certain urban lands; 
5 
(7) Register, issue certificates of incorporation to, and regulate homeowners' 
6 
associations and condominiums corporations organized pursuant to Presidential Decree 
7 
No. 957, Republic Act No. 4726, Presidential Decree No. 902-A and other related laws; 
8 
(8) License real estate brokers, real estate appraisers and real estate consultants; 
9 
(9) Develop and implement real estate consumer education and protection 
10 
programs; 
11 
(10) Promote public trust and consumer education through the implementation of a 
12 
strategic communications plan that will offer timely dissemination of accurate and 
13 
updated information on the department's policies, plans, programs and projects; 
14 
(11) Monitor the implementation of projects and programs under its jurisdiction; and 
15 
(12) Perform such other related functions as may be assigned to it by the Secretary. 
16 
(e) Settlements and Social Housing Bureau -
17 
(1) Ensure that relevant government housing programs shall make available to the 
18 
lowest thirty percent (30%) of the income earners decent and affordable housing with 
19 
basic services and employment opportunities; 
20 
(2) Formulate and ensure the enforcement of policies, rules and regulations 
21 
governing socialized housing provision, upgrading provision of tenure and improvement 
22 
of informal settlements; 
23 
(3) Formulate and enforce pOlicies, rules and regulations governing resettlement, 
24 
relocation, 
eviction 
and 
demolition 
activities 
and 
for 
this 
purpose, 
issue 
25 
relocation/eviction compliance clearances for national or local government projects 
26 
which will involve the eviction or demolition of structures of homeless and 
27 
underprivileged citizens in accordance with Republic Act No. 7279 (UDHA) and the 
28 
implementing rules and regulations (lRR); 
29 
(4) Implement the conduct of pre-relocation and post-relocation activities for national 
30 
government programs and projects in accordance with Section 28 of Republic Act No. 
31 
7279 (UDHA) and IRR; 
32 
(5) Coordinate with the local housing board or any special body on housing or urban 
33 
poor concerns within the LGUs and other concerned agencies on the pre-relocation and 
11 


· 
. 
•• 
1 
post-relocation activities in accordance with Section 28 of Republic Act No. 7279 
2 
(UDHA) and IRR; 
3 
(6) Monitor compliance with the balanced housing requirement under Republic Act 
4 
No. 7279 (UDHA) and IRR; 
5 
(7) Coordinate with concerned agencies and the LGUs in the formulation, 
6 
development and implementation of an information system that will provide the 
7 
government and the general public with timely, accurate and reliable data on the 
8 
underprivileged and homeless citizens; 
9 
(8) Administer, through the regional offices, homeless assistance advances/grants to 
10 
LGUs and NGOs and private communities for temporary and emergency housing as 
11 
well as building renovation, improvements, in coordination with the Department of Social 
12 
Welfare and Development (DSWD); 
13 
(9) Administer the amortization support component of the Abot-Kaya Pabahay Fund, 
14 
and other similar funds; 
15 
(10) Institute measures such as but not limited to the setting up of an LGU-Ied Anti-
16 
Squatting Task Force to detect and thwart squatting and to address such other 
17 
concomitant problems as rural-to-urban migration; 
18 
(11) Monitor the implementation of projects and programs under its jurisdiction; and 
19 
(12) Perform such other related functions as may be assigned to it by the Secretary. 
20 
Sec. 13. Services. -
The Department shall have the following services: (a) 
21 
Planning and Management Service (b) Administrative and Financial Service, and (c) 
22 
Legal Service. 
23 
The services shall perform the following functions: 
24 
(a) Planning and Management Service -
25 
(1) Formulate, update and ensure the implementation of an integrated national 
26 
housing and urban development framework that will provide policy directives, 
27 
guidelines, strategies and support mechanisms for active multi-sectoral participation; 
28 
(2) Conduct continuing comprehensive studies and research on housing and urban 
29 
development necessary for policy and program review and formulation; 
30 
(3) Develop and provide legal, regulatory and supervisory frameworks that promote 
31 
the development of a sustainable market-oriented housing finance system to ensure the 
32 
adequate flow of private funds into the primary and secondary mortgage markets; 
12 


1 
(4) Develop clearly defined, transparent and well-targeted housing subsidy 
2 
mechanisms to enhance access by low-income housing beneficiaries; 
3 
(5) Establish and maintain a management information system and sub-systems for 
4 
monitoring and evaluating Department-wide programs and projects, including those that 
5 
are executed by operating bureaus and offices; 
6 
(6) Manage and maintain a housing and urban development data bank to include a 
7 
shelter indicator system, beneficiary profile, and other national database on shelter and 
8 
urban development; 
9 
(7) Formulate policies, plans and procedures for data control and systems 
10 
management; 
11 
(8) Act as the central repository of existing and future computer files; 
12 
(9) Maintain and operate the Department's library; and 
l3 
(10) Establish and maintain a viable information network with other government 
14 
agencies and instrumentalities. 
15 
(b) Administrative and Financial Service -
16 
(1) Provide the Department with economical, efficient and effective services relating 
17 
to personnel, communication, procurement, supplies, equipment, transportation 
18 
services, collections, disbursement, security and property management; 
19 
(2) Conduct in-house training; and 
20 
(3) Provide disbursement, budgeting, accounting, comptrollership and internal audit 
21 
service to the Department. 
22 
(c) Legal Service-
23 
(1) Conduct research on such matters brought before the Department's attention by 
24 
interested parties and offices seeking legal advice, opinion and assistance; 
25 
(2) Recommend the issuance of opinions and the adoption of policies, rules and 
26 
regulations based on the foregoing; 
27 
(3) Draft, recommend and review proposed legislative measures; 
28 
(4) Prepare and maintain an index, compilation, annotation and digest of laws, rules, 
29 
regulations, commission and court decisions relevant to the Department's mandates; 
30 
(5) Review proposed contracts and/or agreements of the Department to ensure their 
31 
consistency with existing laws, rules and regulations; 
13 


1 
(6) As Special Counsels duly deputized by the Office of the Solicitor General (OSG), 
2 
represent the Department in court for the purpose of defending the official acts of its 
3 
officers and employees that were regularly and diligently performed in the course of the 
4 
normal discharge of their functions; 
5 
(7) Prepare pleadings and other legal documents and submit progress reports on the 
6 
cases handled by them; 
7 
(8) Attend and participate in congressional hearings and inter-agency meetings 
8 
relative to the formulation of legislative measures, proposed executive issuances, rules 
9 
and regulations and/or Memoranda of Agreement with other offices and agencies or the 
10 
private sector; and 
11 
(9) Provide/extend legal advice assistance to other offices of the Department. 
12 
Sec. 14. Regional and Field Offices. - Consistent with the requirements of 
13 
economy and efficiency, there shall be established a Regional Office, which shall be 
14 
headed by a Regional Director, in every administrative region and in as many field 
15 
offices as are necessary: Provided, That they are established in accordance with the 
16 
regional pattern as prescribed by existing laws. 
17 
Sec. 15. Functions of the Regional Directors and Regional Offices. - While 
18 
program bureaus exercise technical supervision functions over regional counterparts, 
, 
19 
the Regional Director shall be the responsible line official for all Department programs in 
20 
the administrative region. The Regional Director shall be appointed by the President 
21 
and shall report to the Secretary. 
22 
The Regional Office shall perform the following functions: 
23 
(a) Ensure that Department program-goals are met and that programs are 
24 
implemented in accordance with the duly adopted pOlicies, standards and guidelines; 
25 
(b) Ensure the consistency between the overall regional development goals and 
26 
programs and the National Urban Development Strategy and between Department 
27 
programs and regional plans of other government agencies; 
28 
(c) Directly manage and implement Department programs in the immediate 
29 
geographic area; 
30 
(d) Direct and evaluate the performance of field offices in the region; 
31 
(e) Monitor, investigate and assess compliance with approved subdivision and 
32 
condominium plans, endorse and recommend the filing of appropriate charges for 
33 
violations thereof; 
14 


1 
(f) Coordinate with the LGUs with regard to their local urban development, land use 
2 
and shelter plans, and provide the necessary technical assistance on devolved powers 
3 
related to housing and urban planning as mandated by the Local Government Code and 
4 
other related laws; 
5 
(g) Administer the registration of homeowners' associations and condominium 
6 
corporations; 
7 
(h) Undertake the issuance of certificates of registration and licenses to sell for 
8 
condominium and subdivision projects, and collect fees for the purpose; 
9 
(i) Advise and coordinate the plans and programs of the Regional and Field Offices 
10 
of the attached agencies and corporations; and 
11 
0) Perform such other functions as may be provided for by law and by the 
12 
Secretary. 
13 
Sec. 16. Functions of Field Directors and Offices. - A Field Director shall 
14 
head a Field Office and shall be accountable to the Regional Director. The Field Officer 
15 
shall directly administer Department programs in his/her jurisdictional area and shall 
16 
ensure their proper implementation. 
17 
The Field Director shall maximize his/her detail in the areas under jurisdiction by 
. 18 
closely coordinating with the local planning officer, the pertinent sanggunian committee, 
19 
the Urban Poor Affairs Office (UPAO), and the local housing boards, if any, for program 
20 
monitoring, implementation and enforcement. 
21 
Sec. 17. Relationship Among the Regional and Field Offices of 
the 
22 
Department, its Attached Agencies and Corporations, and the LGUs. -
The 
23 
relationship among the Regional and Field Offices of the Department, its attached 
24 
agencies and corporations, and the LGUs, shall be purely coordinative. 
25 
CHAPTER 1\1 
26 
ATTACHED AGENCIES AND CORPORATIONS 
27 
Sec. 18. Attached Corporations and Agencies and their Functions. - Any 
28 
provision of Jawor their respective charters to the contrary notwithstanding, the 
29 
following corporations and agencies are hereby attached to the Department for general 
30 
supervision, and policy and program coordination. They shall continue to operate and 
31 
function in accordance with their respective charters, laws or orders creating them 
32 
insofar as they are not inconsistent with this Act: 
33 
(a) Home Guaranty Corporation (HGC); 
15 


1 
(b) National Housing Authority (NHA); 
2 
(c) National Home Mortgage Finance Corporation (NHMFC); 
3 
(d) Home Development Mutual Fund (HDMF), and 
4 
(e) Housing and Land Use Regulatory Board (HLURB), hereby renamed the 
5 
Housing and Urban Development Adjudication Commission (HUDAC) 
6 
Any and all exemptions from the compensation and position classification 
7 
provided for under Republic Act No. 6758, otherwise known as the "Compensation and 
8 
Position Classification Act of 1989" which were previously granted to any and all of the 
9 
abovementioned attached agencies and corporations, are hereby withdrawn. 
10 
Any provision of law or the respective charters of the abovementioned 
11 
corporations and agencies to the contrary notwithstanding, the Secretary shall, in a 
12 
concurrent capacity, be the ex officio Chairman of the respective boards of HGC, NHA, 
13 
NHMFC, and HDMF. 
14 
Sec. 19. Reconstitution of the Governing Bodies of Attached Corporations 
15 
and Agencies. - The governing bodies of the corporations and agency attached to the 
16 
Department are hereby reconstituted as follows, any proviSion of law or their respective 
17 
charters to the contrary notwithstanding: 
18 
(a) Home Guaranty Co~poration (HGC). The Board of Directors of the HGC shall 
19 
be composed of the Secretary as ex officio chairman, the Secretary of Finance as vice-
20 
chairman, and the following as members: the President of the HGC, the Director-
21 
General of NEDA, and three (3) others appointed by the President of the Philippines, 
22 
who shall serve for a term of five (5) years: Provided, further, That in the event of a 
23 
vacancy, the successor appointed to fill the said vacancy shall serve only the unexpired 
24 
portion of the term of the member he succeeds. 
25 
(b) National Housing Authority (NHA). The Board of Directors of the NHA shall be 
26 
composed of the Secretary as chairman, the General Manager of the Authority as vice-
27 
chairman, and the following as members: the Secretary of the Department of Interior 
28 
and Local Government (DILG), the Chairman of the National Anti-Poverty Commission, 
29 
the Chief Executive Officer of the NHMFC and two(2) others to be appointed by the 
30 
President of the Philippines, one of whom shall represent the real estate and housing 
31 
industry and the other shall represent the NGOs or POs. 
32 
(c) National Home Mortgage Finance Corporation (NHMFC). The Board of 
33 
Directors of the NHMFC shall be composed of the Secretary as chairman, the Chief 
34 
Executive Officer of the NHMFC as vice chairman, and the following as members: the 
35 
Administrator of the SSS, the General Manager of the GSIS, the Chief Executive Officer 
16 


1 
of the HDMF, and two (2) others to be appointed by the President of the Philippines, 
2 
one of whom shall represent the real estate and housing industry and the other shall 
3 
represent the NGOs or POs. 
4 
(d) Home Development Mutual Fund (HDMF). The Board of Trustees of the 
5 
HDMF shall be composed of the Secretary as chairman, the Secretary of the 
6 
Department of Finance (DO F) as vice chairman, and the following as members: the 
7 
Secretary of the Department of Budget and Management (DBM), the Secretary of the 
8 
Department of Labor and Employment (DOLE), the Chief Executive Officer of the 
9 
HDMF, two (2) representatives of private employees, two (2) representatives of private 
10 
employers, one (1) representative of the real estate and housing industry. 
11 
The representatives of the private employers and employees shall each be 
12 
appointed by the President for a term of two (2) years: Provided, however, That of the 
13 
first set to be appointed, one (1) representative of the employees and one (1) 
14 
representative of the employers shall have a term of only one (1) year. The 
15 
representative of the government employees and the real estate and housing industry 
16 
shall be appointed by the President for a term of two (2) years. 
17 
CHAPTER IV 
18 
REAL ESTATE ADJUDICATION COMMISSION 
19 
Sec. 20. Renaming the Housing and Land Use Regulatory Board (HLURB).-
20 
The HLURB is hereby renamed and reconstituted as the Housing and Urban 
21 
Development Commission (HUDAC), which shall be attached to the Department for 
22 
program and policy coordination and administrative supervision. 
23 
The regulatory functions of the former HLURB shall be performed by the 
24 
Department with the HUDAC retaining the quasi-judicial functions thereof. 
25 
The Commission shall be composed of a chairman and eight (8) full-time 
26 
members to be appointed by the President, majority of whom shall be members of the 
27 
Philippine Bar while the others shall have a background or experience in urban 
28 
development planning, management, architecture, civil engineering or other related 
29 
fields. The chairman shall have the rank of a Commission Chairman IV while the 
30 
commissioners shall each have the rank of a Commission Member IV. They must have 
31 
been engaged in the practice of their respective professions or speCialization or 
32 
employed in an appropriate office for a period of t least five (5) years. In addition, no 
33 
person who has been convicted of a crime involving moral turpitude shall be appointed 
34 
as a chairman or a member of the Commission. 
17 


1 
The incumbent full-time commissioners of the present HLURB shall remain in 
2 
office unless they opt to avail of the retirement and separation benefits provided in 
3 
Section 38 of this Act or are sooner removed for cause. 
4 
Upon expiration of their terms, they shall be entitled to retire under laws, if they 
5 
are so qualified to retire thereunder, or to receive a compulsory retirement gratuity 
6 
equivalent to the total of two (2) times their basic salary as a commissioner, for every 
7 
year of service, whichever is higher. 
8 
The Commission may sit en bane or in three (3) divisions, each composed of 
9 
three (3) members. The Commission shall sit en bane only for purposes of promulgating 
10 
rules and regulations governing the hearing and disposition of cases before any of its 
11 
divisions and regional branches, hearing and disposition of motions for reconsideration 
12 
and formulating policies affecting its administration and operations. The Commission 
13 
shall exercise its adjudicatory and all other powers, functions and duties through its 
14 
divisions: Provided. That the commission sitting en bane may, on temporary or 
15 
emergency basis, allow cases within the jurisdiction of any division to be heard and 
16 
decided by any other division whose docket allows the additional workload and such 
17 
transfer will not expose litigants to unnecessary additional expense. 
18 
The concurrence of two (2) commissioners of a division shall be necessary for 
19 
the pronouncement of judgment or resolution. Whenever the required membership in a 
20 
division is not complete and the concurrence of two (2) commissioners to arrive at a 
21 
judgment or resolution cannot be obtained, the chairman shall designate such number 
22 
of additional commissioners from the other divisions as may be necessary. 
23 
The conclusions of a division on any case submitted to it for decision shall be 
24 
reached in consultation before the case is assigned to a member for the writing of the 
25 
decision. It shall be mandatory for the division to meet for purposes of the consultation 
26 
ordained herein. A certification to this effect signed by the presiding commissioner of the 
27 
division shall be issued and a copy thereof attached to the record of the case and 
28 
served upon parties. 
29 
The Commission when sitting en bane shall be assisted by the executive clerk 
30 
and, when acting through its divisions, by the division executive clerks in the 
31 
performance of such similar or equivalent functions and duties as are discharged by the 
32 
Clerk of Court and Deputy Clerks of Court of the Court of Appeals. 
33 
Sec. 21. Term and Compensation. - The members of the HUDAC shall be 
34 
appointed for a term of six (6) years without reappointment. Appointment to any 
35 
vacancy shall be only for the unexpired term of the predecessor and shall receive the 
18 


1 
same salaries and emoluments of a Commissioner of the National Labor Relations 
2 
Commission (NLRC). 
3 
Sec. 22. Power and Authority of the Commission. - In the exercise of its 
4 
judicial functions, the HUDAC shall be governed by the principles of justice, equity and 
5 
fairness. It shall act as an impartial and independent tribunal and shall render judgment 
6 
in accordance with law, evidence and merit of the case. In particular, the HUDAC shall 
7 
have the following powers and authorities: 
8 
(a) Promulgate rules and regulations goveming the hearing and disposition of cases 
9 
filed before it and those pertaining to its internal functions and such other regulations as 
10 
may be necessary to carry out the purposes of this Act: Provided, That it shall not be 
11 
bound by technical rules of procedure but shall proceed to hear and decide all cases, 
12 
disputes or controversies in a most expeditious manner, employing all reasonable 
13 
means to ascertain the facts of every case including conducting clarificatory hearing, if 
14 
necessary, in accordance with justice, equity and merit; 
15 
(b) Exercise exclusive appellate jurisdiction over all cases decided by the housing 
16 
and urban development arbiters. However, the Secretary may assume jurisdiction over 
17 
any complaint or case and decide the same or certify such case for decision by the 
18 
Commission if, in his opinion, he believes that the controversy involves massive fraud or 
19 
unsound business practices or critical socioeconomic or environmental considerations 
20 
that has serious potential impact on the interests of the sector of the general welfare; 
21 
(c) Administer oaths, summon the parties to a controversy, issue subpoenas 
22 
requiring attendance and testimony of witnesses or the production of such books, 
23 
papers, contracts,records, agreements, and other documents of similar nature as may 
24 
be material to a just determination of the matter under investigation or hearing 
25 
conducted in pursuance under this Act; 
26 
(d) Issue cease and desist orders, preliminary or permanent injunctions, whether 
27 
prohibitory or mandatory, in all cases in which it has jurisdiction, and in which the 
28 
pertinent provisions of the rules of civil procedure shall apply; 
29 
(e) Hold any person in contempt, directly or indirectly, and impose appropriate 
30 
penalties therefor; 
31 
(f) Impose administrative fines and/or penalties for violation of this Act, Republic Act 
32 
No. 7279, and other laws implemented by the HUDAC, including pertinent rules and 
33 
regulations, orders, decisions and rulings: Provided, That the maximum imposable fines 
34 
or penalties shall not exceed Five hundred thousand pesos (0500,000); 
19 


1 
(g) To establish offices to cover as many provinces and cities, whenever and 
2 
wherever it may be expedient, necessary and feasible; 
3 
(h) Deputize any law enforcement agency in the execution of its final orders, rulings 
4 
or decisions; 
5 
(i) Directly utilize income generated from fees, fines, charges and other collections 
6 
in the performance of its functions to defray operating expenses and provide allowances 
7 
for its personnel; 
8 
0) Issue writs, orders to execute demolition, or seizure or closure of property in 
9 
accordance with its decision; and 
10 
(k) Exercise such other powers as implied, necessary or incidental to the carrying 
11 
out the express powers granted to the HUDAC or to achieve the objectives and 
12 
purposes of this Act, and other laws implemented by the Commission. 
13 
The Chairman aided by the Executive Clerk Court IV shall have administrative 
14 
supervision over the Commission and its regional branches and all its personnel 
15 
including the Housing and Urban Development Arbiters. 
16 
Sec. 23. Jurisdiction of the Housing and Urban Development Arbiters. - The 
17 
Housing and Urban Development Arbiters shall have original and exclusive jurisdiction 
18 
to hear and decide cases of the following nature: 
19 
(a) On Real Estate -
20 
(1) Unsound and fraudulent real estate business practices; 
21 
(2) Claims for refund against project owners, developers, dealers, brokers or 
22 
salespersons; 
23 
(3) Specific performance of contractual and statutory obligations filed by buyers of 
24 
subdivision lots or condominium units against the owner, developer, dealer, broker or 
25 
salesperson; 
26 
(4) Squatting on subdivision lots; 
27 
(5) Disputes involving buyer-financing agreements with any financing institution for 
28 
condominium/subdivision projects; 
29 
(6) Easements or right of way affecting or involving subdivision and condominium 
30 
projects; 
31 
(7) Disputes between: (i) landowners and developers, and (ii) banks and developers, 
32 
whenever the interest of buyers of subdivision lots, or house and lots, or condominium 
33 
units are involved; 
20 


1 
(8) Partial redemption and release of mortgage titles of subdivision lots and 
2 
condominium units; 
3 
(9) Disputes involving easements of waterways, drainage, connections to public 
4 
utilities, and light and view affecting subdivision and condominium projects; 
5 
(10) Disputes involving homeowners' associations and condominium corporations, 
6 
whether intra-corporate or inter-corporate; 
7 
(11) Claims of brokers and/or salespersons for unpaid commissions for sales of 
8 
condominium and/or subdivision projects and all other real estate brokerage 
9 
transactions; 
10 
(12) Disputes between lessors and lessees affecting subdivision and condominium 
11 
units; 
12 
(13) Cases filed by subdivision or condominium owners or developers and mortgage 
13 
financing institutions against lot or unit buyers for collection of unpaid amortizations; and 
14 
(14) Other related cases arising from contractual or statutory obligations of owners, 
15 
dealers, brokers or salespersons towards lot or unit buyers. 
16 
(b) On Housing and Land Use Planning and Regulation 
17 
Complaints in areas without local zoning administrators and/or local zoning 
18 
boards of appeals involving: (i) opposition to any land use or development projects; and 
19 
(ii) petitions for recall or revocation of the grant by a local government official of any 
20 
zoning or locational clearance permit, both on the ground that the same is violative of 
21 
land use planning laws and/or zoning ordinances. 
22 
(c) On Shelter Rights-
23 
(1) Violations of the provisions of the Urban Development and Housing Act (Republic 
24 
Act No. 7279), including but not limited to the following: 
25 
(1.1) Just and humane eviction/ demolition procedure under Section 28 and pertinent 
26 
implementing rules and regulations; 
27 
(1.2) Prohibition against professional squatters and squatting syndicates under 
28 
Section 27 and pertinent implementing rules and regulations; 
29 
(1.3) Inventory of lands under Section 7 and pertinent implementing rules and 
30 
regulations; 
31 
(1.4) Identification of sites for socialized housing under Section 8 and pertinent 
32 
implementing rules and regulations; 
21 


1 
(1.5) Limitations on the disposition of land for socialized housing under Section 14 and 
2 
pertinent implementing rules and regulations; 
3 
(1.6) Registration of socialized housing beneficiaries under Section 17 and pertinent 
4 
implementing rules and regulations; and 
5 
(1.7) Balanced housing development under Section 18 and pertinent implementing 
6 
rules and regulations. 
7 
(2) 
All ejectment cases where the party defendants are underprivileged and 
8 
homeless citizens as defined by the UDHA (Republic Act No. 7279) or a duly registered 
9 
association whose members are underprivileged and homeless citizens as defined by 
10 
the UDHA (Republic Act No. 7279). 
11 
Sec. 24. Criminal Prosecution - Criminal prosecution for violation of housing 
12 
laws and regulations shall be instituted before regular courts with appropriate 
13 
jurisdiction. 
14 
Sec. 25. Housing and Urban Development Arbiters, Qualifications and 
15 
Compensation. -
The Secretary upon recommendation of the chairman of the 
16 
Commission, shall appoint housing and urban development arbiter as the needs of the 
17 
service may require for each administrative region. No person shall be appointed 
18 
housing and urban development arbiters unless he has been a member of the 
19 
Philippine Bar for at least five (5) years with at least (2) years experience or exposure in 
20 
the field of housing, real estate and/or land use planning and zoning. 
21 
The Housing and Urban Development Arbiters shall receive an annual salary and 
22 
be entitled to the allowances and benefits equivalent to the salaries, allowances and 
23 
benefits of labor arbiters of the National Labor Relations Commission. 
24 
Sec. 26. Sheriff. - The Commission shall appoint a sheriff or such number of 
25 
sheriffs in its central and regional branches. No person shall be appointed to the 
26 
position of sheriff unless he is a second grade civil service eligible and has finished at 
27 
least two (2) years of college. The sheriff shall be responsible for the service or 
28 
execution of all writs, summons and orders and other process of the Commission. 
29 
Sec. 27. Appearances. - A lawyer appearing for a party is presumed to be 
30 
properly authorized for that purpose. A non lawyer may appear before the HUDAC or 
31 
the Housing and Urban Development Arbiter only if: (a) he/she represents 
32 
himself/herself as party to the case; or (b) he/she represents an organization: Provided, 
33 
That he/she shall be made to present written proof that he/she is properly authorized. 
22 


1 
Sec. 28. Appeals. - Decisions, awards or orders of the Housing and Urban 
2 
Development Arbiter shall be final and executor unless appealed to the HUDAC within 
3 
ten (10) calendar days from receipt of such decisions, awards or orders. 
4 
Decision of the Commission shall be appealable only to the Court of Appeals by 
5 
way of a petition for review within fifteen (15) days from notice of judgment, award or 
6 
order, pursuant to Rule 43 of the 1997 Rules of Civil Procedure. 
7 
Sec. 29. Prohibition Against Restraining Order or Injunction. - No court of 
8 
the Philippines except the Supreme Court and the Court of Appeals shall have 
9 
jurisdiction to issue any restraining order or writ of preliminary or permanent injunction 
10 
against the HUDAC or its regional offices in any case, dispute or controversy arising 
11 
from, necessary to, or in connection with the application, implementation, enforcement 
12 
or interpretation of this Act and other pertinent laws on housing and eviction/demolition 
13 
procedures. 
14 
Sec. 30. Pending Cases. - All cases pending in court not within the original and 
15 
exclusive jurisdiction of the former HLURB as defined under Presidential Decree No. 
16 
957 as amended by Executive Order No. 648 shall continue to be heard, tried and 
17 
decided into their finality: Provided, That enforcement of decisions in pending ejectment 
18 
cases which eventually violate Section 28 of Republic Act No. 7279 may be subjected to 
19 
the original and exclusive jurisdiction of the HUDAC. 
20 
CHAPTER V 
21 
PUBLIC ESTATES AUTHORITY 
22 
Sec. 31. Public Estates Authority (PEA). - In addition to the existing mandate 
23 
of the PEA created under Presidential Decree No. 1084, as amended by Executive 
24 
Order No. 525, (series of 1979) and Executive Order No. 654 (series of 1981), the PEA 
25 
is hereby mandated to ensure that its programs and projects are in accordance with the 
26 
broader objective of the national urban development and housing framework. In 
27 
coordination with the Department, the PEA shall undertake the development of new 
28 
towns with complete basic facilities in urbanizable and urbanizing areas including 
29 
growth areas to decongest existing urban communities. 
30 
The governing board of the PEA is hereby reconstituted to include the Secretary 
31 
of the Department of Housing and Urban Development and the Secretary of the DILG 
32 
as ex officio members. 
33 
CHAPTER VI 
34 
SHELTER FINANCE 
23 


1 
Sec. 32. Housing Assistance for HDMF, SSS and GS/S Members. - As 
2 
provided for in their respective charters, the HDMF, SSS and GSIS shall allocate 
3 
annually funds to implement home lending and housing assistance programs which 
4 
qualified members of these institutions may avail of. For this purpose, the HDMF, SSS 
5 
and GSIS shall provide annually the maximum limit of their investible funds for their 
6 
housing programs. Any provision to the contrary notwithstanding, the integrity and 
7 
character of the funds of the SSS, GSIS and HDMF for the benefit of its members shall 
8 
not be prejudiced. 
9 
The funds allocated shall be used exclusively for home financing and no part 
10 
thereof shall be used for administrative or operating expenses of these institutions. 
11 
New members of the HDMF shall be allowed to pay the required two (2) year 
12 
membership contribution in lump sum to immediately qualify for home lending and 
13 
housing assistance programs. 
14 
Within thirty (30) days from the effectivity of this Act, the HDMF, SSS and GSIS 
15 
shall jointly formulate the policies and specific terms that will govern implementation of 
16 
their respective facilities for Retail Loan and Development Loan Programs. The same 
17 
guidelines shall be adopted by government and private financial institutions 
18 
implementing retail and developmental home financing programs. 
19 
Sec. 33. Social Housing Fund. - There is hereby established a Social Housing 
20 
Fund (SHF) composed of the following fund sources: 
21 
(a) Amounts provided for socialized housing under General Appropriations Act; 
22 
(b) Fifty percent (50%) of the twelve percent (12%) of all proceeds of any sale, after 
23 
deducting all expenses related to the sale, portions of military camps as provided in 
24 
Republic Act No. 7227, as amended; 
25 
(c) Loans, grants, bequests and donations, whether from local or foreign sources; 
26 
(d) Proceeds from forfeited custom bonds; and 
27 
(e) Ten percent (10%) of the mandatory annual contributions of the Philippine 
28 
Charity SWeepstakes Office (PCSO) to the charity fund as provided for in Section 6 of 
29 
Republic Act No. 1169 shall be channelled to this fund. 
30 
In addition, Sixty-five billion pesos (065,000,000,000.00) from the unused portion 
31 
of the Agri-Agra funds of banks to be accessed over a period of four (4) years from the 
32 
effectivity of this Act shall be invested in low-cost and socialized housing. 
33 
The SHF shall be administered by the Department and shall be allocated solely 
34 
for housing programs for the low-income group of the informal sector such as squatter 
24 


I 
relocation, sites and services program, urban renewal, rental housing, land banking and 
2 
livelihood assistance programs in resettlement areas. The programs and projects that 
3 
will be funded under said fund and the implementing bureau or agency shall be 
4 
determined by the Department. 
5 
CHAPTER VII 
6 
TRANSITORY PROVISIONS 
7 
Sec. 34. Transfer of Powers and Functions. - Within six (6) months after the 
8 
approval of this Act, the powers and functions of the Housing and Urban Development 
9 
Coordinating Council (HUDCC) shall be transferred to the Department. The foregoing 
IO 
transfer of powers and functions shall include all applicable funds and appropriations, 
II 
records, eqUipment, property and personnel as may be necessary. The same shall 
12 
apply to agencies and government units which have not been abolished but whose 
13 
functions have been transferred to the Department except the assets, pertinent funds, 
14 
records, property, eqUipment and personnel of the HLURB needed for adjudicatory and 
15 
related support functions. All purely governmental functions being performed by the 
16 
HLURB shall be transferred to the Department. Likewise, all existing powers and 
17 
functions of these agencies in their charters which are inherent and incidental to their 
18 
corporate mandates shall be retained with the concerned agencies. 
19 
All ex officio functions of the Chairman of the HUDCC are likewise transferred to 
20 
the Secretary. 
21 
Sec. 35. Transfer of Rights, Assets and Liabilities. - The Department shall, by 
22 
virtue of this Act, be subrogated to all rights and assume all the liabilities of the HUDCC . 
23 
and all other agencies, or government units whose functions and powers have been 
24 
transferred to the Department, and all their funds, records, property, assets, equipment 
25 
and such personnel, as may be necessary, including unexpended appropriations and/or 
26 
allocations except assets, pertinent funds, records, property, equipment and personnel 
27 
of the HLURB needed for adjudicatory and related support functions. All contracts and 
28 
liabilities of said offices are hereby transferred to and assumed by the Department and 
29 
shall be acted upon in accordance with the Auditing Code and other pertinent laws, 
30 
rules and regulations: Provided, That existing officers and employees of said 
31 
agencies/corporations shall assume their posts in holdover capacity until their new 
32 
appointments are issued. 
33 
Sec. 36. Rationalization or Transfer of Functions of Attached or Related 
34 
Agencies. - The land use planning and enforcement functions including monitoring 
35 
and issuance of licenses and permits of the HLURB as provided for under Sections 5a, 
36 
5b, 5c, 5d, 5g and 5h of Executive Order No. 648 and similar provisions in Executive 
25 


1 
Order No. 90; the implementation of the pre-relocation and post-relocation activities 
2 
mentioned in Section 12 (e) 4 of this Act, as provided for in Section 28 of Republic Act 
3 
No. 7279; and the powers, authorities and responsibilities vested in the HLURB with 
4 
respect to the registration of homeowners' associations as provided for under Section 
5 
26 of Republic Act No. 8763 shall be transferred to the Department. 
6 
Sec. 37. Structure and Staffing Pattern. - Except for the position of Secretary, 
7 
Undersecretary and Assistant Secretary, there shall be no hiring of new personnel for 
8 
the Department. Within ninety (90) days from the effectivity of this Act, the Secretary 
9 
shall formulate and submit to the Oversight Committee for its review and approval the 
10 
Department's proposed organizational structure and staffing pattem that shall ensure 
11 
that there is no duplication of functions between the Department and its attached 
12 
agencies. After the Oversight's review and approval, the proposed organizational 
13 
structure and staffing pattern of the Department shall be submitted to the President for 
14 
final approval through the DBM within ninety (90) days. 
15 
The Oversight Committee shall be composed of the following: 
16 
(a) The Chairpersons of the Senate Committee on Housing, Resettlement and 
17 
Urban Planning, and the House Committee on Government Reorganization, as co-
18 
Chairpersons; and 
19 
(b) The Chairpersons of the Senate Committee on Finance and the House 
20 
Committee on Housing and Urban Development, the House Committee on Government 
21 
Enterprises and Privatization, and the House Committee on Appropriations, as 
22 
members. 
23 
The authorized pOSitions created therein shall be filled by regular appointment by 
24 
the President or the Secretary, as the case may be: Provided, That in the filling of 
25 
positions created, the Secretary shall create an ad hoc committee composed of 
26 
management staff of the concerned agencies to ensure that preference shall be given to 
27 
the personnel of the corporations or agencies affected by the restructuring provided in 
28 
this Act: Provided, further, That such individuals comply with the qualification standards 
29 
set by the Civil Service Commission (CSC) for the positions they shall be appointed to: 
30 
Provided, Finally, That if such individuals possess the same qualifications, seniority 
31 
shall be given priority. 
32 
Sec. 38. Separation from the Service. - Employees separated and/or phased-
33 
out from the service as a result of the abolition and/or reorganization under the 
34 
provisions of this Act shall within six (6) months from their separation and/or phase-out 
35 
from the service receive a separation pay equivalent to two (2) times the monthly basic 
36 
salary for every year of service in the government and the refund of their personal 
26 


1 
contribution plus interest including the government share to the GSIS. In addition, those 
2 
who are qualified to retire shall be allowed to retire and be entitled to all benefits 
3 
provided, under any of the existing retirement laws. The miscellaneous personnel 
4 
benefits, the organization adjustment, and corporate funds may be used to fund the 
5 
purpose. 
6 
CHAPTER VIII 
7 
FUNDING 
8 
Sec. 39. Appropriations. - the amount needed for the initial implementation of 
9 
this Act shall be charged against the current year's appropriations of HUDCC and all 
10 
corporations herein attached to the Department. Thereafter, such sums as may be 
11 
necessary for the continued implementation of this Act shall be included in the annual 
12 
General Appropriations Act. 
13 
Sec. 40. Additional Funding. - Subject to existing rules and regulations, the 
14 
funds and monies collected or which otherwise come into possession of the Department 
15 
and its bureaus from fees, surcharges, fines and penalties which the Department and its 
16 
bureaus may impose and collect under this Act, as well as amount to be determined at 
17 
the beginning of every calendar year representing twenty percent (20%) of the 
18 
outstanding balance of the funds and monies shall be deposited as a special account in 
19 
the General Fund and shall be disbursed for expenses necessary for the effective 
20 
discharge of the powers and functions of the Department under this Act, except 
21 
personal services requirements. 
22 
CHAPTER IX 
23 
MISCELLANEOUS AND FINAL PROVISIONS 
24 
Sec. 41. Social Housing One-Stop Processing Centers. - For purposes of 
25 
socialized, low cost, economic and middle-income housing development, the 
26 
Department shall establish Social Housing One-Stop Processing Centers (SHOPCs) in 
27 
the regions, which shall centralize the processing and issuance of all required permits, 
28 
clearances and licenses: Provided, That for the foregoing purpose, the respective 
29 
ceilings for socialized, low cost/economic and middle-income housing shall be jointly 
30 
determined by the Department and the NEDA: Provided, further, That at any time, but 
31 
not more often than once every two (2) years, such ceilings may be reviewed or revised 
32 
to conform to prevailing economic conditions. All agencies involved in the issuance of 
33 
said permits, clearances and licenses shall be represented in the SHOPC and shall 
34 
assign to SHOPC regional centers personnel who shall be sufficiently authorized to 
35 
process and issue the same. 
27 


1 
Sec. 42. Identification and Designation of Lands for Housing and Urban 
2 
Development. - The Department of Housing and Urban Development (DHUD), the 
3 
Department of Agrarian Reform (DAR) and the Department of Agriculture (DA) shall, 
4 
within ninety (90) days from effectivity of this Act, jOintly identify agricultural lands which 
5 
under Republic Act No. 6657, otherwise known as the Comprehensive Agrarian Reform 
6 
Law, and other existing laws, rules and regulations are already exempted from 
7 
conversion requirements and which can be devoted for housing and urban development 
8 
purposes: Provided, That the list shall exclude lands that are declared as non-
9 
negotiable for or protected from conversion under existing laws and issuances and 
10 
those lands covered under Republic Act No. 6657: Provided, further, That the 
11 
designation of lands for housing and urban development purposes shall neither 
12 
prejudice the rights of qualified beneficiaries under Republic Act No. 6657 nor 
13 
undermine the protected agricultural areas intended to ensure the attainment of food 
14 
security under Republic Act No. 8435, otherwise known as the Agriculture and Fisheries 
15 
Modernization Act (AFMA) and other existing laws: Provided, finally, That in the case of 
16 
lands exempted from conversion and those whose application for conversion has been 
17 
approved by the DAR, the applicant shall be allowed to proceed with any horizontal or 
18 
vertical development without need for any prior clearance or approval from the DAR or 
19 
the DA consistent with the terms of the approved order of conversion. 
20 
Sec. 43. Creation of an Advisory Committee. - The Department, within thirty 
21 
(30) days from the effectivity of this Act, an advisory committee consisting of key 
22 
representatives from the urban poor organizations and other marginalized groups, 
23 
nongovernment organizations, academe, private sector, local government, the 
24 
Presidential Commission for the Urban Poor (PCUP), and national government 
25 
agencies shall be created to provide a forum for broader sector participation and 
26 
dialogue on 
key housing and urban development issues and policies. The 
27 
representatives of the urban poor and other marginalized groups shall be selected by 
28 
their respective National Anti-Poverty Commission (NAPC) sectoral councils. 
29 
Sec. 44. Disclosure and Divestment of Financial Interest. -
Before 
30 
assumption into office, the Secretary, the Undersecretaries and the Assistant 
31 
Secretaries shall submit to the CSC a list of all companies, partnerships or business 
32 
enterprises, including non-profit organizations, in which they or any immediate member 
33 
of their families within the second degree of consanguinity or affinity, have any form of 
34 
financial interest or employment relationship, including conSUltancy: Provided, however, 
35 
That all other forms of employment relationship held by the heads of the Offices of the 
36 
Department shall be immediately terminated upon assumption into office. 
28 


1 
Within thirty (30) days thereafter, complete divestment of financial interests in 
2 
any institution, form or company, which falls under the supervisory or regulatory 
3 
jurisdiction of the Department shall be made: Provided, however, That in cases where 
4 
confirmation of appointments by the Commission on Appointments is required, the 
5 
divestment, mandated herein shall be complied within thirty (30) days after such 
6 
confirmation. 
7 
The divestment provided in the preceding paragraph shall likewise apply to the 
8 
members or the immediate members of their families within the second degree of 
9 
consanguinity having interest in any institution or activity which falls under the regulatory 
10 
jurisdiction and supervision of the Department and the attached agencies and 
11 
corporations. 
12 
Sec. 45. Relationship with Other Government Departments. -
The 
13 
Department and its priority projects shall enjoy preferential attention from the DENR, 
14 
DAR, DA, Department of Justice and the LGUs, relative to the issuance of necessary 
15 
permits and licenses necessary for the implementation of housing and urban 
16 
development programs and projects. 
17 
Upon request of the Department or any of its bureaus, all government agencies 
18 
with functions relative to the approval of the projects of the Departments or its duly 
19 
authorized and endorsed entities, whether government or private, shall act upon and 
20 
resolve the matter within ten (10) working calendar days. Toward this end, the Secretary 
21 
with the approval of the President may establish an inter-agency Secretariat for the 
22 
purpose of expediting the approval of said projects. 
23 
Sec. 46. Mandatory Review Two (2) Years after the Enactment of this Act. -
24 
The Department shall review the charters and mandates of attached agencies and 
25 
corporations and recommend the necessary legislation to ensure consistency with the 
26 
policy of this Act and avoid duplication of functions or any other dysfunction among the 
27 
attached agencies and corporations. 
28 
Sec. 47. Formulation of the Implementing Rules and Regulations. - Within 
29 
three (3) months after the approval of this Act, the President shall convene an inter-
30 
Agency Committee that shall formulate and issue the appropriate rules and regulations 
31 
necessary for the efficient and effective implementation of any and all provisions of this 
32 
Act, including applicable existing housing laws, formation of homeowners association to 
33 
manage subdivision and condominium projects and availment of loans on terms easily 
34 
affordable to ali. 
35 
The Inter-Agency Committee shall be composed of the following: 
29 


1 
(a) The Secretary of the DHUD, as chairman; 
2 
(b) The Secretaries of the DOF, DILG, DAR and DENR; 
3 
(c) The heads of the GSIS, SSS, NHA, NHMFC, REAC, HDMF and HGC; 
4 
(d) The Chairpersons of the Senate Committees on Finance and Housing, 
5 
Resettlement and Urban Planning; and the House Committees on Government 
6 
Reorganization, Housing and Urban Development, Government Enterprises and 
7 
Privatization, and Appropriations; 
8 
(e) Two (2) representatives each from the dominant urban poor organization and the 
9 . NGOs, to be appointed by the Chairpersons of Joint Congressional Committee; and 
10 
(f) Two (2) representatives each from the respective organizations of real estate 
11 
brokers, real estate appraisers and real estate conSUltants. 
12 
Sec. 48. Penal Provision. -
The Department shall impose a maximum 
13 
imposable fine for violations of its standards, rules and regulations should not exceed 
14 
Five hundred thousand pesos (0500,000.00): Provided, That said limit shall be 
15 
accordingly adjusted by the Secretary, and such adjustment shall be reflective, but not 
16 
exceed the annual rate of increase of the Consumer Price I ndex: Provided, further, That 
17 
the Secretary may adjust such rates not more than once every three (3) years. 
18 
Sec. 49. Separability Clause. -
If, for any reason or reasons, any part or 
19 
provision of this Act shall be held unconstitutional or invalid, other parts or provisions 
20 
hereof which are not affected thereby shall continue to be in full force and effect. 
21 
Sec. 
50. 
Repealing 
Clause. 
-
provisions of laws, 
decrees, orders, 
22 
proclamations, rules, regulations or parts thereof which are inconsistent herewith are 
23 
hereby repealed, amended or modified accordingly. 
24 
Sec. 51. Effectivity. - This Act shall take effect fifteen (15) days following its 
25 
complete publication in at least two (2) national newspapers of general circulation. 
26 
Approved, 
30