€';~ " 1'1 \'>1 n 
-""'''/ t - <~" . 
FIFTEENTH CONGRESS OF THE REPUBLIC) 
!0!II:f \.\II~p' ,: ["crrbrlJ 
OF THE PHILIPPINES 
) 
Second Regular Session 
) 
'12 
MAY 14 P5:1} 
SENATE 
.,~. -
· "vf= 
COMMITTEE REPORT NO. 142 
Submitted by the Committees on Urban Planning, Housing and Resettlement; 
Finance; 
and 
Civil 
Service 
and 
Government 
Reorganization 
on 
MAY 1 4 2012 
Re: Senate Bill No.3199 
Recommending its approval in substitution of Senate Bill Nos. 66,136 and 751 
Sponsors: 
Senators Marcos, Drilon, Trillanes IV, Ejercito Estrada and Committee 
on Rules 
MR. PRESIDENT: 
The Committees on Urban Planning, Housing and Resettlement; Finance and 
Civil Service and Government Reorganization to which were referred Senate Bill No. 
66, introduced by the Committee on Rules, entitled: 
"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" 


Senate Bill No. 136, introduced by Senator Drilon, entitled: 
"AN ACT 
CREATING THE DEPARTMENT OF HOUSING AND URBAN 
DEVELOPMENT, DEFINING ITS MANDATE, POWERS AND 
FUNCTIONS, AND OTHER' PURPOSES" 
and Senate Bill No. 751, introduced by Senator Ejercito Estrada, entitled: 
"AN ACT 
DEFINING THE VISION AND POLICIES OF GOVERNMENT IN 
THE HOUSING AND 
URBAN 
DEVELOPMENT SECTOR, 
CREATING THE DEPARTMENT OF HOUSING AND URBAN 
DEVELOPMENT, DEFINING ITS MANDATE, POWERS AND 
FUNCTIONS, AND FOR OTHER PURPOSES" 
have considered the same and have the honor to report th.em back to the Senate 
with the recommendation that the attached bill, Senate Bill No. 319 ~prepared by 
the Committees, entitled: 
"AN ACT 
CREATING THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT 
(DHUD), DEFINING THE MANDATES, POWERS, AND FUNCTIONS, PROVIDING 
FUNDS THEREFOR AND FOR OTHER PURPOSES" 
be approved in substitution of Senate Bill Nos. 66, 136 and 751 with the Committee 
on Rules, Senators Drilon, Ejercito Estrada , Trillanes IV and Marcos as authors 
thereof. 
Respectfully submitted: 
R. ~ARCOS, JR. 


A 
ON a "SONNY" F~LANES IV 
Chairperson, Committee on Civil Service and Government Reorganization 
F 
NKLIN M. DRILON 
Chairpe 
n, Committee on Finance 
Members: 
---===:--
aRia B. HONASAN II 
~. _ 'V ~ 
fL~ -s 
AQG~LI~ "KdKOY.L.P(M1~TEL III 
RAMON "BONG" REVIL A JR. 
witl ~tM 
Wi~ ~ 
~.» 
Jb~~ 
MIRIAM DEF~R SANT~GO 
FRAN~IS~.ESCUDERO 


/~ 
JOKER P. ARROYO 
M 
EL "LITO" M. LAP!1 
i! I~>LII]V 
!sE·RGIO R. OSMENA III 
Ex-Officio Members: 
resident Pro-Tempore 
~<2 
~~, 
ALAN PETER "COMPANERO" S. CAYE~ANO 
Hon. JUAN PONCE ENRILE 
President 
Senate of the Philippines 
Pasay City 
Minority Leader 


FIFTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
Second Regular Session 
S. No. 3199 
) 
) 
) 
'12 
t1AY 14 
D 5 :13 
Prepared jointly by the Committees on Urban Planning, Housing and Resettlement; 
Finance and Civil Service and Govemment Reorganization with the Committee on 
Rules, Senators Drilon, Ejercito Estrada, Trillanes IV and Marcos as authors 
AN ACT 
CREATING THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT 
(DHUD), DEFINING THE MANDATES, POWERS, AND FUNCTIONS, PROVIDING 
FUNDS THEREFOR AND FOR OTHER PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
1 
CHAPTER 1 
2 
TITLE AND POLICIES 
3 
Section 1. Title. - This Act shall be known as the "Department of Housing and 
4 
Urban Development Act of 2012." 
5 
Section 2. Declaration of Policies. - The State shall, by law, and for the 
6 
common good, undertake, in cooperation with the private sector, a continuing 
7 
program of urban development and housing which will make available at affordable 
8 
cost, decent housing and basic services to underprivileged and homeless citizens. It 
9 
shall also promote adequate employment opportunities to such citizens. In the 
10 
implementation of such program the State shall respect the rights of small property 
11 
owners. 
12 
The State shall pursue the realization of a modern, humane, economically 
13 
viable and environmentally sustainable society where the urbanization process is 


1 
manifest in towns and cities being centers of productive economic activity, through 
2 
partnerships with multi-stakeholders; where urban areas have affordable housing, 
3 
sustainable physical and social infrastructure and services facilitated under a 
4 
democratic and decentralized system of governance; and where urban areas provide 
5 
the opportunities for an improved quality of life and the eradication of poverty. 
6 
Urban or rural poor dwellers shall not be evicted nor their dwelling 
7 
demolished, except in accordance with law. 
8 
CHAPTER II 
9 
DEFINITION OF TERMS 
10 
Section 3. Definitions. - As used in this Act, the following terms shall mean: 
11 
3.1 Attachment - refers to the relationship between the department and the 
12 
attached agency or corporation for purposes of policy and program coordination and 
13 
as further defined under the Administrative Code of 1987. 
14 
3.2 Housing - refers to the system and its components which establish the 
15 
residential quality of life, including housing, utilities, access to social services and 
16 
other community facilities, security, and other aspects related to an individual's 
17 
residence. 
18 
3.3 Informal Settler Families (lSFs) refer to household/s living in: (a) lot 
19 
without consent of the property owner; (b) danger areas; (c) areas for government 
20 
infrastructure projects; (d) protected/forest areas (except for indigenous people); (e) 
21 
Areas 
for 
Priority 
Development 
(APDs), 
if applicable; 
and/or -(f) 
other 
22 
government/public lands or facilities not intended for habitation. 
23 
3.4 Urban Development - pertains to the process of occupation and use of 
24 
land or space for such activities as residential, industrial, commercial and the like or 
25 
their combinations, necessary to carry out the functions of urban living. It entails the 
2 


1 
building or rebuilding of more or less permanent structures over land that is often 
2 
withdrawn or converted from its original use, resulting in the creation of a built 
3 
environment. 
4 
CHAPTER III 
5 
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT 
6 
Section 4. Creation and Mandate of the Department of Housing and 
7 
Urban Development. - There is hereby created the Department of Housing and 
8 
Urban Development (DHUD), hereinafter referred to as the Department, by 
9 
consolidating the functions of the Housing and Urban Development Coordinating 
10 
Council (HUDCC) and the planning and regulatory functions of the Housing and 
11 
Land Use Regulatory Board (HLURB), which shall act as the primary national 
12 
government entity responsible for the management of housing and urban 
13 
development. It shall be the sole and main planning and policy-making, regulatory, 
14 
program coordination, and performance monitoring entity for all housing and 
15 
urban development concerns, primarily focusing on the access to and affordability of 
16 
the basic human needs. 
17 
Section 5. Powers and Functions. - The planning and regulatory function of 
18 
the Housing and Land Use Regulatory Board (HLURB) is hereby transferred to the 
19 
Department. 
20 
In addition thereto, the Department shall perform the following: 
21 
5.1. Formulate the national and urban development and housing policy and. 
22 
strategy, in coordination and in consultation with the stakeholders, which ensures 
23 
consistency with the Philippine Development Plan (PDP) and the National Physical 
24 
Framework Plan (NPFP) to promote social and economic welfare; 
3 


1 
5.2. Exercise initiative and assume a lead role in coordinating, supervising 
2 
and integrating all government activities relative to 
housing and urban 
3 
development; 
4 
5.3. Formulate effective and efficient housing finance policies and programs 
5 
to promote the establishment of a self-sustaining, private sector-led housing 
6 
finance system; 
7 
5.4. Manage and oversee the development of proclaimed housing sites, 
8 
including the use of land assets as resource mobilization strategy to raise alternative 
9 
funds in developing new town housing projects which will serve as central relocation 
10 
sites for the affected Informal Settlers; 
11 
5.5. Utilize income generated from fees, fines, charges, and other collections 
12 
in the performance of its functions, to defray operating expenses; 
13 
5.6. 
Enter 
into 
contracts, 
joint 
venture 
agreements, 
public-private 
14 
partnerships, and such other memorandum of agreements/understanding, either 
15 
domestic or foreign, under such terms and conditions as it may deem proper and 
16 
reasonable subject to existing laws; 
17 
5.7. Discharge all responsibilities of government as may arise from treaties, 
18 
agreements and other commitments on housing, land use and urban development to 
19 
which it is a signatory, including the determination of forms of assistance for housing, 
20 
land use and urban development to be extended through bilateral or multilateral 
21 
loans and/or assistance program; 
22 
5.B. Receive, take and hold by bequest, device, gift, purchase or lease, either 
23 
absolutely or in trust for any of its purposes from foreign and domestic sources, any 
24 
asset, grant or property, real or personal, subject to such limitations provided under 
25 
existing laws and regulations; 
4 


1 
5.9. Exercise oversight function, coordinate, monitor and evaluate the 
2 
policies and programs of all attached agencies; 
3 
5.10. Conduct comprehensive studies and researches, and build and 
4 
maintain a database necessary for housing and urban development; 
5 
5.11. Provide assistance to build the capability of local government units in 
6 
housing and urban development and management to strengthen the role of 
7 
provinces, 
cities 
and 
municipalities 
as 
the 
primary 
entities 
for 
urban 
8 
development/renewal planning and management; 
9 
5.12. Promulgate zoning and other land use control standards and 
10 
guidelines which shall govern land use plans and zoning ordinances of local 
11 
governments, subdivision or estate development projects; 
12 
5.13. Monitor local government compliance with housing and urban 
13 
development laws, standards and guidelines and Republic Act No. 9485, otherwise 
14 
known as the Anti-Red Tape Act of 2007 with respect to housing and urban 
15 
development projects, as well as their judicious and fair application of local housing 
16 
and urban development ordinances; 
17 
5.14. Support local government partnerships with communities, civil society 
18 
organizations, 
non-government organizations, 
and 
private 
groups 
in 
the 
19 
implementation of urban development/renewal projects; 
20 
5.15. Develop and establish a sector performance monitoring and assessment 
21 
mechanism, and monitor the performance of national government agencies, local 
22 
government units, as well as other entities involved in housing and urban 
23 
development; 
24 
5.16. Lead in the disposition of lands intended for housing owned by the 
25 
Government or any of its subdivisions, instrumentalities, agencies or government-
5 


1 
owned or controlled corporations such as but not limited to military reservations, 
2 
lands reserved for government offices, facilities and other installations, and other 
3 
land assets including friar lands which have not been used for the purposes for 
4 
which they have been reserved or set aside for the past ten (10) years from 
5 
effectivity of Republic Act No. 7279, otherwise known as the Urban Development 
6 
and Housing Act (UDHA); 
7 
5.17. Declare areas as Urban Development/Renewal site(s) including the 
8 
development and implementation of sub-projects jOintly with the concerned local 
9 
government units under a Public Private Partnership (PPP) arrangement; 
10 
5.18. Advocate and assist the local government units (LGUs) in the 
11 
establishment of Special Housing Fund (SHF) to be sourced from the proceeds of 
12 
Real Property Tax (RPT) as provided for under Section 43 of Republic Act No. 7279 
13 
pegged at one half percent (.5%) of the assessed value of real property which will be 
14 
exclusively used for the identification of sites for socialized housing and low-cost 
15 
housing, data gathering, inventory of lands; mobilization and implementation of 
16 
socialized and low-cost housing programs of the LGUs. 
17 
5.19. Take the lead in the conduct of Pre- and Post-Proclamation activities as 
18 
orchestrator and facilitator of the entire disposition process including the stewardship 
19 
of the Local Inter-Agency Committee (LiACs) which are primarily tasked to oversee 
20 
the implementation of housing proclamation projects; 
21 
5.20. Effect and oversee a single regulatory system that shall govern all 
22 
activities relative to the planning, production, marketing, and management of housing 
23 
and urban development projects; 
24 
5.21. Take over unfinished, incomplete or abandoned licensed real estate 
25 
development projects under Presidential Decree No. 957; 
6 


1 
5.22. Encourage the private sector to address and serve a large part of the 
2 
country's housing needs; 
3 
5.23. Promote, accredit and regulate the use of indigenous materials and 
4 
technologies in housing construction; 
5 
5.24. Implement prototype projects in housing and urban development 
6 
undertakings, with the right to exercise the power of eminent domain, when 
7 
necessary; 
8 
5.25. Determine, fix and collect reasonable amounts to be charged as fees 
9 
and charges necessary for the effective implementation of all laws, rules and 
10 
regulations enforced by the Department and impose reasonable fines and penalties 
11 
for violation thereof; 
12 
5.26. Register and regulate Homeowners and Homeowners Associations 
13 
(HOAs) and Condominium Units Owners' Association/Corporation (CUONCs) and 
14 
provide assistance in the formulation of community development programs; 
15 
5.27. Formulate and ensure the implementation of housing policies and 
16 
programs for urban poor communities and informal settler families (ISFs) that will 
17 
promote the social and economic welfare of homeless families particularly the poor 
18 
and underprivileged; 
19 
5.28. 
Initiate and 
encourage deeper and 
active involvement and 
20 
participation of civil society organizations, developers associations, urban planners 
21 
and other stakeholders which shall be used as a venue through which housing 
22 
needs are assessed and recognized and, in coordination with the local 
23 
government units, serve as the lead agency for housing and urban development 
24 
concerns; and, 
25 
5.29. Perform such other related functions as may be mandated by law. 
7 


1 
Section 6. Composition. - The Department shall be composed of the Office 
2 
of the Secretary, his/her immediate staff, and the Offices of the Undersecretaries and 
3 
their respective staff, and the other Offices directly supportive of the Office of the 
4 
Secretary. 
5 
Section 7. The Secretary. - The Secretary shall: 
6 
7.1. Report to the President on the promulgation of rules, regulations and 
7 
other issuances relative to matters under the jurisdiction of the Department; 
8 
7.2. Establish policies and standards for the efficient and effective operations 
9 
of the Department in accordance with the programs of the government; 
10 
7.3. Promulgate rules, regulations and other issuances necessary in carrying 
11 
out the Department's mandate, objectives, policies, plans, programs and projects; 
12 
7.4. Review and approve, with a panel of planners and builders, the physical 
13 
framework plans of the provinces and the comprehensive land use plans of cities, as 
14 
well as the municipalities within Metro Manila; 
15 
7.5. Exercise control and supervision over all personnel of the Department; 
16 
7.6. Have the power to delegate authority for the performance of any 
17 
administrative or SUbstantive function to subordinate officials of the Department; 
18 
7.7. Appoint all officers and employees of the department, except those 
19 
whose appointments are vested with the President subject to the provisions of Civil 
20 
Service Law, rules and regulations. 
21 
7.8. Have the power to call on other agencies and instrumentalities of the 
22 
government and private entities for cooperation and assistance in the performance of 
23 
its functions; 
24 
7.9. To impose administrative fines and/or penalties of not more than one 
25 
hundred thousand pesos (P 100,000.00) for violation of this Act, Republic Act 
8 


/ 
1 
No. 7279 and other laws implemented by the Commission, including pertinent 
2 
rules and regulations, orders, decisions, and/or rulings; Provided, that the Secretary 
3 
may adjust such fines not more than once every three (3) years; and, 
4 
7.10. Perform such other functions as may be provided by law or assigned by 
5 
the President. 
6 
The Secretary shall also serve as a voting member of the National Economic 
7 
and Development Authority (NEDA) Board, the governing Boards of the Climate 
8 
Change Commission (CCC), the National Disaster Risk Reduction Management 
9 
Council (NDRRMC), and the National Land Use Committee (NLUC). The Secretary 
10 
shall be a member of NEDA's Committee on Infrastructure (INFRACOM), Investment 
11 
Coordinating Committee (ICC) and Social Development Committee (SOC). The 
12 
Secretary shall also be a member of the body authorized to formulate, prescribe, or 
13 
amend guidelines under Republic Act No. 6957 as arnended, otherwise known as 
14 
the Build-Operate-Transfer (BOT) Law. 
15 
Section 8. The Undersecretaries. . The Secretary shall be assisted by 
16 
8.1. One (1) Undersecretary for Policies, Plans and Programs, Coordination, 
17 
Monitoring and Evaluation; 
18 
8.2. One (1) Undersecretary for Environmental, Land Use and Urban Planning 
19 
and Development; 
20 
8.3. One (1) Undersecretary for Regulation of Housing and Real Estate 
21 
Development; and, 
22 
8.4. One (1) Undersecretary for Homeowners, Homeowners Associations and 
23 
Community Development. 
24 
They shall have the powers and functions as provided for in Section 10, 
25 
Chapter 2, Book IV of the Administrative Code of 1987. The Secretary is further 
9 


1 
authorized to delineate and assign the other functional areas of responsibility of the 
2 
Undersecretaries. 
3 
Section 9. Departmental Offices and Regional Offices. - The Department 
4 
shall establish, operate, and maintain Departmental Offices under them such as, but 
5 
not limited to: (1) Policies, Plans and Programs, Coordination, Monitoring and 
6 
Evaluation; (2) Environmental, Land Use and Urban Planning and Development; (3) 
7 
Regulation of Real Estate Development; and (4) Homeowners, Homeowners 
8 
Associations and Community Development. 
9 
There shall be Regional Offices in all of the country's regions. Each Regional 
10 
Office shall be headed by a Regional Director. 
11 
Section 10. Staffing Pattern. - The Secretary shall cause the preparation 
12 
and implementation of a staffing pattern for the Department. The development of the 
13 
staffing pattern shall be based on an assessment of the personnel requirements of 
14 
the entire Department. The remuneration structure of the positions in the staffing 
15 
pattern shall conform to the provisions of Republic Act No. 6758, otherwise known as 
16 
the Salary Standardization Law, as amended. The Department of Budget and 
17 
Management (DBM) shall, upon its approval, fund in full the staffing pattern of the 
18 
Department. 
19 
Section 11. Advisory Council. - The Secretary shall have the power to 
20 
establish advisory councils consisting of the Secretaries and other heads from 
21 
national government agencies and local government units, representatives from the 
22 
private sector including private developers associations, urban poor communities, 
23 
academe, and other marginalized groups, to provide a forum for stakeholder 
24 
participation and dialogue on key housing and urban development policies, issues 
10 


1 
and concerns. Such councils shall be convened and chaired by the Secretary of the 
2 
Department of Housing and Urban Development. 
3 
CHAPTER IV 
4 
ADJUDICATION COMMISSION FOR HOUSING, LAND USE 
5 
AND URBAN DEVELOPMENT 
6 
Section 12. 
Reconstitution of the HLURB as the Adjudication 
7 
Commission 
for 
Housing, 
Land 
Use 
and 
Urban 
Development 
8 
(Commission). 
The HLURB is hereby reconstituted and shall henceforth be 
9 
known as the Adjudication Commission for Housing, Land Use and Urban 
10 
Development, hereinafter referred to "Commission", which shall be attached with the 
11 
Department for policy, plan and program coordination only. 
12 
Section 13. Assumption and Exercise of Adjudication Function of 
13 
the Housing and Land Use Regulatory Board (HLURB) to the Commission. 
14 
The adjudication function of the HLURB shall be assumed and exercised by the 
15 
Commission. 
16 
Section 14. Composition of the Commission and Qualification of 
17 
Commissioners. 
The Commission shall be composed of nine (9) full-time 
18 
commissioners; Provided, that the term of incumbent Commissioners shall be 
19 
respected; Provided further, that the subsequent appointees of the President shall be 
20 
members of the Philippine Bar of good standing and has been engaged in the 
21 
practice of law for at least ten (10) years with experience and/or exposure in housing 
22 
and/or urban development. 
23 
The Commissioners shall hold office for a period of six (6) years, unless 
24 
earlier removed for cause. 
11 


1 
The Department Secretary shall be the Ex-Officio Chairman of the 
2 
Commission. 
3 
Section 15. Collegiality, Divisions, and Sessions. The Commission shall 
4 
exercise its adjudicatory and all other powers, functions, and duties through its 
5 
Divisions. 
6 
The Commission, sitting en bane, shall be presided over by the Secretary 
7 
and shall decide only on the promulgation of rules and regulations governing 
8 
the hearing and disposition of cases before any of its Divisions and its Arbiters 
9 
in its Regional Offices, and on the formulation of pOlicies affecting its 
10 
administration and operations. 
11 
Section 16. Precedence and Supervision. The most senior Commissioner 
12 
shall be the presiding Commissioner of the first Division and the two (2) next most 
13 
senior Commissioners shall be the presiding Commissioners of the second and third 
14 
Divisions, respectively. 
15 
The Commission en bane shall have administrative supervision over the 
16 
Commission and its Regional Offices and all their personnel, including the 
17 
Arbiters. 
18 
Section 17. 
Decisions and Resolutions. The concurrence of two (2) 
19 
Commissioners of a Division shall be necessary for the promulgation of a judgment 
20 
or resolution. 
21 
Whenever the required membership in a Division is not complete and the 
22 
concurrence of two (2) Commissioners to arrive at a judgment or resolution cannot 
23 
be obtained, the Executive Commissioner shall designate into the Division such 
24 
number of additional Commissioners from the other Divisions, as may be 
25 
necessary. 
12 


1 
The conclusions of a Division on any case submitted to it for decision shall be 
2 
reached in consultation before the case is assigned to a Commissioner for the 
3 
writing of the decision. It shall be mandatory for the Division to meet for 
4 
purposes of the consultation ordained herein. A certification to this effect 
5 
signed by the presiding Commissioner of the Division shall be issued and a copy 
6 
thereof attached to the record of the case and served upon the parties. 
7 
Section 1 B. Jurisdiction of Arbiters. The Arbiters shall exercise exclusive 
8 
jurisdiction to hear and decide cases involving the following: 
9 
a. 
Claims for refund, complaints against unsound real estate bUSiness 
10 
practices and other actions for specific performance of contractual and 
11 
statutory obligations filed by subdivision lot or condominium unit buyer 
12 
against the project owner, developer, dealer, broker or salesman; and 
13 
other complaints for violation of Presidential Decree No. 957 and other 
14 
related laws; 
15 
b. Intra-association disputes or controversies arising out of the relations 
16 
between 
and 
among 
members 
of homeowners 
associations 
or 
17 
condominium corporations; between any or all of them and the 
18 
homeowners association or condominium corporation of which they are 
19 
members, including federations of homeowners associations; 
20 
c. Inter-association disputes or controversies arising out of the corporate 
21 
relations between and among two or more homeowners associations or 
22 
condominium corporations or federations; 
23 
d. Disputes between such homeowners association or condominium 
24 
corporation and the State, insofar as it concerns their individual franchise 
25 
or right to exist and those which are intrinsically connected with the 
13 


1 
regulation of homeowners associations and condominium corporations or 
2 
dealing with the internal affairs of such entity; 
3 
e. Suits filed in opposition to an application for certificate of registration and 
4 
license to sell, development permit for condominium projects, clearance to 
5 
mortgage, or the revocation or cancellation thereof, and locational 
6 
clearances, certifications or permits, when issued by the HLURB/the 
7 
Department; 
8 
f. 
Suits filed by the project owner/developer against a buyer for the collection 
9 
of unpaid amortization, cancellation of contract and/or ejectment. 
10 
g. Eviction of informal settlers in open spaces or common areas of 
11 
subdivisions and condominiums filed by the project owner or developer or 
12 
the duly registered homeowners association or condominium corporation 
13 
of the project; 
14 
h. Disputes involving buyer financing agreements with any financing 
15 
institution for the purchase of condominium units or subdivision lots; and, 
16 
i. 
Disputes involving easements within or among subdivisions projects. 
17 
j. 
Violations of administrative rules and regulations implementing Sections 
18 
7,8 and 18 of Republic Act No. 7279. 
19 
k. Disputes 
between 
landowners 
and 
developers, 
and 
between 
20 
banks/financing institutions and developers whenever the interest of the 
21 
buyers is involved; 
22 
I. 
Disputes involving the enforcement of comprehensive land use plans 
23 
(CLUPs) and/or their accompanying zoning ordinances. 
14 


1 
Section 19. Jurisdiction of the Commission and the Secretary. The 
2 
Commission shall have the exclusive appellate jurisdiction over all cases decided by 
3 
the Arbiters. 
4 
The decision of the Commission shall be final and executory after fifteen (15) 
5 
calendar days from receipt thereof by the parties. 
6 
The Secretary may assume jurisdiction over any complaint or case and 
7 
deCide the same or certify such case for decision to the Commission if the 
8 
controversy involves massive real estate fraud or unsound business practices of 
9 
critical socio-economic or environmental considerations that may have serious 
10 
potential impact on the interests of the sector or the general welfare. 
11 
Section 20. Powers of the Commission. - The Commission shall have the 
12 
power and authority: 
13 
20.1. To promulgate rules and regulations governing the hearing and 
14 
disposition of cases before it and its Arbiters, as well as those necessary to carry out 
15 
its functions; 
16 
20.2. To administer oaths, summon the parties to a controversy, issue 
17 
subpoenas requiring the attendance and testimony of witnesses or the production of 
18 
such books, papers, contracts, records, statement of accounts, agreements, and 
19 
others as may be material to a just determination of the case; 
20 
20.3. To hold any person in contempt directly or indirectly and impose 
21 
appropriate penalties therefor in accordance with law. 
22 
A person guilty of misbehavior in the presence of or so near any member of 
23 
the Commission or any Arbiter as to obstruct or interrupt the proceedings before the 
24 
same, including disrespect toward said officials, offensive personalities toward 
2S 
others, or refusal to be sworn, or to answer as a witness or to subscribe an affidavit 
15 


1 
or deposition when lawfully required to do so, may be summarily adjudged in direct 
2 
contempt by said officials and punished by fine not exceeding five thousand pesos 
3 
(PS,OOO.OO) or imprisonment not exceeding five (5) days, or both, if it be the 
4 
Commission, or a member thereof, or by a fine not exceeding one thousand pesos 
5 
(P1 ,000.00) or imprisonment not exceeding one (1) day, or both, if it be an Arbiter. 
6 
The person adjudged in direct contempt by an Arbiter may appeal to the 
7 
Commission and the execution of the judgment shall be suspended pending the 
8 
resolution of the appeal upon the filing by such person of a bond on condition that 
9 
he/she will abide by and perform the judgment of the Commission should the appeal 
10 
be decided against him/her. Judgment of the Commission on direct contempt is 
11 
immediately executory and unappealable. Indirect contempt shall be dealt with by 
12 
the Commission or Arbiter in the manner prescribed under Rule 71 of the Revised 
13 
Rules of Court (ROC); and 
14 
20.4. To enjoin or restrain, after due notice and hearing, any actual or 
15 
threatened commission of any or all prohibited or unlawful acts or to require the 
16 
performance of a particular act in any dispute within its jurisdiction which, if not 
17 
restrained or performed forthwith, may cause grave or irreparable damage to any 
18 
party or render ineffectual any decision in favor of such party. In no case shall a 
19 
temporary or permanent injunction be issued except after a finding of fact by the 
20 
Commission, to the effect that: 
21 
a. Prohibited or unlawful acts have been threatened and will be committed 
22 
and will be continued unless restrained, but no injunction or temporary 
23 
restraining order shall be issued on account of any threat, prohibited or 
24 
unlawful act, except against the person or persons, association or 
25 
organization making the threat or committing the prohibited or unlawful act 
16 


1 
or actually authorizing or ratifying the same after actual knowledge 
2 
thereof; 
3 
b. Substantial and irreparable injury to complainant's property will follow; 
4 
c. As to each item of relief to be granted, greater injury will be inflicted upon 
5 
complainant by the denial of relief than will be inflicted upon defendants 
6 
by the granting of relief; 
7 
d. Complainant has no adequate remedy at law; and, 
8 
e. Public officers charged with the duty to protect complainant's property are 
9 
unable or unwilling to furnish adequate protection. 
10 
Such hearing shall be held after due and personal notice thereof has been 
11 
served, in such manner as the Commission shall direct, to all known persons against 
12 
whom relief is sought, and also to the Chief Executive and other public officials of the 
13 
province or city within which the unlawful acts have been threatened or committed, 
14 
charged with the duty to protect complainant's property: Provided, however, that if a 
15 
complainant shall also allege that, unless a temporary restraining order shall be 
16 
issued without notice, a substantial and irreparable injury to complainant's property 
17 
will be unavoidable, such a temporary restraining order may be issued upon 
18 
testimony under oath, sufficient, if sustained, to justify the Commission in issuing a 
19 
temporary injunction. Such a temporary restraining order shall be effective for no 
20 
longer than twenty (20) days and shall become void at the expiration of said twenty 
21 
(20) days. 
22 
No such temporary restraining order or temporary injunction shall be issued 
23 
except on condition that complainant shall first file an undertaking with adequate 
24 
security in an amount to be fixed by the Commission sufficient to recompense those 
25 
enjoined for any loss, expense or damage caused by the improvident or erroneous 
17 


1 
issuance of such order or injunction, including all reasonable costs, together with a 
2 
reasonable attorney's fee, and expense of defense against the order or against the 
3 
granting of any injunctive relief sought in the same proceeding and subsequently 
4 
denied by the Commission. 
5 
The undertaking herein mentioned shall be understood to constitute an 
6 
agreement entered into by the complainant and the surety upon which an order may 
7 
be rendered in the same suit or proceeding against said complainant and surety, 
8 
upon a hearing to assess damages, of which hearing, complainant and surety shall 
9 
have reasonable notice, the said complainant and surety submitting themselves to 
10 
the jurisdiction of the Commission for that purpose. But nothing herein contained 
11 
shall deprive any party having a claim or cause of action under or upon such 
12 
undertaking from electing to pursue his/her ordinary remedy by suit at law or in 
13 
equity: Provided further, that the reception of evidence for the application of a writ of 
14 
injunction may be delegated by the Commission to any of its Arbiters who shall 
15 
conduct such hearings in such places as he/she may determine to be accessible to 
16 
the parties and their witnesses and shall submit thereafter his/her recommendation 
17 
to the Commission. 
18 
20.5. To exercise such other powers as are implied, necessary, or 
19 
incidental to carry out the express powers granted to the Commission. 
20 
Authority is hereby vested in the Commission to directly utilize the income 
21 
generated from fees, fines, charges, and other collections in the performance of its 
22 
functions, to defray operating expenses. 
23 
Section 21. 
Compensation. A Commissioner shall receive a minimum 
24 
monthly compensation corresponding to Salary Grade 30 as prescribed under 
25 
Republic Act No. 6758, as amended. 
18 


1 
The incumbent full time Commissioners of the present HLURB shall 
2 
remain in office unless they opt to avail of the retirement and separation benefits 
3 
as provided for in Section 34 of this Act or are earlier removed for cause. 
4 
Section 22. The Arbiters, Qualifications and Compensation. The existing 
5 
HLURB Arbiters shall be deemed qualified. 
Additional Arbiters shall have the 
6 
following qualifications: 
7 
22.1 No person shall be appointed as Arbiter unless he or she is a member of 
8 
the Philippine Bar of good standing and has been engaged in the practice of law for 
9 
at least seven (7) years with at least three (3) years experience or exposure in the 
10 
field of real estate and land use development cases, and, 
11 
22.2 The Arbiters shall receive a minimum 
monthly compensation 
12 
corresponding to Salary Grade 28 as prescribed under Republic Act No. 6758, as 
13 
'amended. 
14 
The President shall appoint Arbiters, as may be necessary, upon the 
15 
recommendation of the Commission. 
16 
Section 23. The Sheriff. The Commission shall appoint a Sheriff or such 
17 
number of Sheriffs in its Central and Regional Offices in accordance with the 
18 
provisions of the Civil Service Law, rules and regulations. The Sheriff shall be 
19 
responsible for the service and execution of all writs, summonses, and orders and 
20 
other processes of the Commission. 
21 
Section 24. Appeals. Decisions, awards, or orders of the Arbiters shall be 
22 
final and executory unless appealed to the Commission within fifteen (15) 
23 
calendar days from receipt of such deCisions, awards, or orders. The appeal 
24 
may be entertained only on any of the following grounds: 
19 


1 
24.1 There is prima facie evidence of abuse of discretion on the part of 
2 
the Arbiter in rendering the questioned decision, award, or order; 
3 
24.2 The decision, order, or award was secured through fraud or 
4 
coercion, including graft and corruption; 
5 
24.3 The appeal is made purely on questions of law; and, 
6 
24.4 Serious errors in the findings of facts are raised, which errors 
7 
would cause grave or irreparable damage or injury to the appellant. 
8 
Section 25. Criminal Prosecution. The criminal prosecution for violation 
9 
of housing laws and regulations shall be instituted before criminal Courts having 
10 
appropriate jurisdiction. 
11 
Section 26. 
Pending Cases. All cases pending in regular Courts 
12 
arising from or in connection with the implementation of pertinent laws on housing 
13 
shall continue to be heard, tried, and decided to their finality by such Courts. 
M 
C~nffiV 
15 
ATTACHED AGENCIES 
16 
Section 27. Attached Agencies and Corporations. The following agencies 
17 
and corporations are hereby attached to the Department for policy and program 
18 
coordination, monitoring and evaluation: 
19 
27.1 National Housing Authority (NHA); 
20 
27.2 Home Guaranty Corporation (HGC); 
21 
27.3 National Home Mortgage Finance Corporation (NHMFC); 
22 
27.4 Home Development Mutual Fund (HDMF); 
23 
27.5 Social Housing Finance Corporation (SHFC); and, 
24 
27.6 
Adjudication 
Commission 
for 
Housing, 
Land 
Use 
and 
Urban 
25 
Development (Commission). 
20 


1 
All these Agencies shall continue to function according to existing laws and 
2 
their respective Charters. 
However, each of the heads of the attached agencies 
3 
shall enter into a performance contract annually with the Department Secretary. 
4 
Such contracts shall embody the national targets on housing and urban development 
5 
and shall include the over-all administration of the agency and the streamlining of 
6 
personnel for effective and efficient service. 
7 
Any reorganization, merger, streamlining, abolition or privatization of any 
8 
attached government owned and controlled corporation (GOCC) initiated by the 
9 
Governance Commission on GOCCs under Republic Act 10149, otherwise known as 
10 
the GOCC Governance Act of 2011, shall require the concurrence of the Secretary. 
11 
Section 28. Nature of Attachment. The Secretary shall be elected as 
12 
Chairperson of the governing Boards of the National Housing Authority (NHA), Home 
13 
Development Mutual Fund (HDMF), National Home Mortgage Finance Corporation 
14 
(NHMFC), Social Housing Finance Corporation (SHFC), and Home Guaranty 
15 
Corporation (HGC). 
16 
CHAPTER VI 
17 
OTHER PROVISIONS 
18 
Section 29. Social Housing One-Stop Processing Centers (SHOPCs) 
19 
-
The Department may establish SHOPCs in the Regions, which shall 
20 
centralize the processing and issuance of all required housing-related permits, 
21 
clearances, and licenses in accordance with Executive Order No. 45, series of 
22 
2001 entitled "Prescribing time periods for issuance of housing related 
23 
certifications, clearances and permits, and imposing sanctions for failure to 
24 
observe the same": Provided, that for the foregoing purpose, the respective 
25 
ceilings for socialized, low cost/economic and middle-income housing shall be 
21 


/ 
;// 
1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
G 
17 
18 
19 
20 
21 
22 
23 
24 
25 
jointly determined by the Department and the NEDA: Provided further that at 
any time , but not more than once every two years, such ceilings may be 
reviewed or revised to conform to prevailing economic conditions. 
All agencies involved in the issuance of said permits, clearances and 
licenses shall be represented in the SHOPC and shall assign to SHOPC 
regional centers personnel who shall be sufficiently authorized to process and 
issue the same. 
Section 30. Identification and Designation of Lands for Housing 
and Urban and Rural Development. - For the purpose of designating lands 
for housing and urban and rural development, the Department of Housing and 
Urban Development, the Department of Environment and Natural Resources 
(DENR), the Department of Agrarian Reform (DAR) Department of Agriculture 
(DA), and the Land Registration Authority (LRA) shall, within one hundred 
eighty (180) days from the effectivity of this Act, jointly identify agricultural 
lands which under Republic Act No. 6657, as amended, otherwise known as 
the Comprehensive Agrarian Reform Law, and other existing laws, rules and 
regulations are already exempted from conversion requirements: Provided, 
that the list shall exclude lands that are declared as non-negotiable or 
protected from conversion under existing laws and issuances and those lands 
covered under Republic Act No. 6657: Provided further, that the designation 
of lands for housing and urban and rural development purposes shall neither 
prejudice the rights of qualified beneficiaries under Republic Act No. 6657, nor 
undermine the protected agricultural areas intended to ensure the attainment 
of food security under Republic Act No. 8435, otherwise known as Agricultural 
and Fisheries Modernization Act (AFMA) of 1997 and other eXisting laws: 
22 


1 
Provided, also that in the case of lands exempted from conversion though 
2 
these have been approved by the DAR, if these are contested by affected 
3 
individual or community beneficiaries, it shall not be allowed to proceed with 
4 
any horizontal or vertical development without need for any prior clearance or 
5 
approval from the DAR or the DA consistent with the terms of the approved 
6 
order or conversion: Provided, finally, that all idle government lands in highly 
7 
urbanized cities are hereby prioritized for housing and urban development 
8 
purposes. 
9 
CHAPTER VII 
10 
TRANSITORY PROVISIONS 
11 
Section 31. Absorption of Employees of the Consolidated Agencies. The 
12 
existing civil servants of HUDCC and HLURB shall enjoy security of tenure and be 
13 
absorbed by the Department or the Commission, in accordance with their staffing 
14 
patterns and the selection process as prescribed under Republic Act No. 6656 on 
15 
the Rules on government reorganization, unless the civil servant wants to avail of 
16 
Section 33, hereof. 
17 
Section 32. Transfer of Assets and Obligations. The following dispositive 
18 
actions shall be implemented within six (6) months from the effectivity of this Act: 
19 
32.1 The assets, equipment, funds, choses in action, records, and pertinent 
20 
transactions of HUDCC and HLURB shall be transferred to the Departrnent and the 
21 
Commission; and, 
22 
32.2 The Department and the Commission shall cause the creation of 
23 
additional positions and augrnent their budget appropriations, as may be necessary. 
24 
Section 33. 
Transition Period. All transfer of functions, assets, funds, 
25 
personnel, equipment, properties, transactions, and personnel in the affected 
23 


1 
national government agencies, and the formulation and implementation of the 
2 
internal organic structures, staffing patterns, operating systems, and revised budgets 
3 
of the Department and the Commission, shall be completed within six (6) months 
4 
from the effectivity of this Act, during which existing personnel shall continue to 
5 
assume their posts in holdover capacities until new appointments are issued. 
6 
Section 34. Separation from the Service. Any employee of HUDCC and 
7 
HLURB who opts to avail of separation from service within six (6) months from the 
8 
effectivity of this Act as a result of the consolidation and/or reorganization under the 
9 
provisions of this Act shall, within one (1) month from their separation from the 
10 
service, receive a separation pay equivalent to two hundred fifty percent (250%) of 
11 
the latest monthly basic salary for every year of service in the government. Provided, 
12 
that those who are qualified to retire under existing retirement laws shall be allowed 
13 
to retire under said laws and shall receive the benefits within ninety (90) days from 
14 
their separation from service. 
15 
The miscellaneous personnel benefits, the organization adjustment, and 
16 
corporate funds may be used to fund the purpose. 
17 
Section 35. Abolition of the Housing and Urban 
Development 
18 
Coordinating Council (HUDCC) and the Transfer of Rights and Assets. The 
19 
Housing and Urban Development Coordinating Council is hereby abolished. 
20 
The Department shall, by virtue of this Act, be subrogated to all rights and 
21 
assume all the liabilities of the HUDCC and HLURB, except those that may hereafter 
22 
be transferred to or absorbed by the Commission. 
23 
Section 36. Formulation of Implementing Rules and Regulations. The 
24 
HUDCC, HLURB, DBM and Civil Service Commission (CSC) shall prepare and issue 
24 


1 
the implementing rules and regulations (lRR) within sixty (60) days upon the 
2 
effectivity of this Act. 
3 
CHAPTER VIII 
4 
IMPLEMENTING AUTHORITY AND FUNDING 
5 
Section 37. Implementing Authority. The HUDCC Chairman is hereby 
6 
authorized to undertake the implementation of the provisions of this Act and 
7 
implement the necessary organizational changes within six (6) months or until a 
8 
Department Secretary has been appointed and has assumed office. 
9 
Section 38. Funding. The amount needed for the initial implementation of 
10 
this Act shall be charged against the current year's appropriations of HUDCC and 
11 
HLURB. Thereafter, such sums as may be necessary for the continued 
12 
implementation of this Act, shall be included in the General Appropriations Act 
13 
(GAA). 
14 
CHAPTER IX 
15 
MISCELLANEOUS PROVISIONS 
16 
Section 39. Mandatory Review of the Implementation of this Act. The 
17 
Congress shall undertake a mandatory review of the implementation of this Act at 
18 
the end of the third year from the date of its effectivity. 
19 
Section 40. Repealing Clause. All laws, executive orders, proclamations, 
20 
rules, regulations and other issuances or parts thereof which are inconsistent with 
21 
the provisions of this act are hereby repealed, amended or modified accordingly. 
22 
Section 41. Separability Clause. If, for any reason or reasons, any portion or 
23 
provision of this Act shall be held unconstitutional or invalid, the remaining provisions 
24 
not affected thereby shall continue to be in full force and effect. 
25 


1 
Section 42. Effectivity. This Act shall take effect fifteen (15) days after its 
2 
complete publication in at least two (2) national newspapers of general circulation. 
Approved, 
26