THIRTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
1 
‘04 Jil.. -2 ii 8 :ti7 
First Regular Session 
) 
S.B.No. 
1 
Introduced by Senator Rodolfo G. Biazon 
EXPLANATORY NOTE 
The Constitution, Article 13, Section 9 reads: 
“Sec.9. The State shall, by law, and for the common good, 
undertake in cooperation with the private sector, a continuing 
program, of urban land reform and housing which will make 
available at affordable cost decent housing and basic services to 
underprivileged and homeless citizens in urban centers and 
resettlement areas. It shall also promote adequate employment 
opportunities to such citizens. 
In the implementation of such 
program the State shall respect the rights of small property 
owners.” 
Nine years after the enactment of Republic Act No. 7279, also known as the 
Urban Development and Housing Act, we are still facing a worsening problem of urban 
blight and hornelessness in our country. At present, we have an estimated housing 
backlog of around 3.7 million housing units. 
Statistics show that this backlog is 
comprised of the following: 1) 454,000 households sharing with other households unable 
to afford separate dwellings; 2) 663,000 dwelling units being endangered by natural 
disasters such as those in the lahar-ravaged areas around Mt. Pinatubo and those 
scheduled for sourt ordered demolition and eviction; 3) 10,000 families currently living 
in parks, sidewalks, esteros, riverbanks, under bridges and other dangerous areas under 
Metro Manila; and those whoa re just plain squatters I public and private lands. The 
problem does not end here. 
While we face a huge housing backlog, it is ironic that the Housing and Urban 
Development 
Coordinating Council (HUDCC) reports an estimated 100,000 
government-owned housing units that are idle and unoccupied. While poor countrymen 
continue to suffer homelessness, we have thousands of housing units lying idle. These 
idle government assets were acquired with the people’s money and represent wastage of 
scarce government resources. 
In a position paper submitted by the University of the Philippines School of 
Urban and Regional Planning (UP SURP) to this humble representation, they pointed out 
that the above-stated problem is due to the confusing state set-up of our housing 
bureaucracy. 
It is said, “the existing institutional set-up for housing nnd urhan 
development is complex and is characterized by overlapping functions, rnandutes and 
programs ofthe agencies involved.” 


This bill proposes to create a Department of Housing and Urban Development 
that will serve as a “one-stop shop” envisioned to cater to the housing needs of our 
citizenry. It shall be the primary government agency that will facilitate and ensure the 
availability of affordable housing. This bill aims to restructure the different housing 
agencies and corporation in order to streamline the housing bureaucracy. To pursue this 
objective, the existing HUDCC shall be strengthened by giving it direct control and 
supervision over all housing agencies and corporations. At present, the HUDCC is 
merely a coordinating body for the different housing agencies. 
Another important objective of this bill is to integrate all housing and urban 
development policies, plans, programs and projects of the different housing agencies to 
expedite the delivery of decent, affordable and sustainable housing and urban 
development programs and projects. 
Due to the foregoing, early passage of this bill is earnestly requested. 
Senator 


THIRTEENTH CONGRESS OF THE 
’04 JUL -2 A8 :57 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
) 
S E N A T E  
S. B. No. 
d, 
Introduced by Senator Rodolfo G. Biazon 
“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” 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
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CHAPTER 1 
SHORT TITLE, VISION, POLICY AND PRINCIPLES 
Section 1. Short Title. This act shall be known as the “Department of Housing and 
Urban Development Act of 2002”. 
Section 2. Declaration of Vision and Policies. The state shall pursue the realization of a 
modem, humane, economically viable and environmentally sustainable society where the 
urbanization process is manifest in towns and cities being centers of productive economic 
activity, led by market forces; where urban areas have affordable housing, sustainable physical 
and social infrastructure and services facilitated under a democratic and decentralized system of 
governance; where urban areas provide the opportunities for an improved quality of life and the 
eradication of poverty; and where there is a high degree of complementarity between urban and 
rural communities. 
Section 3. Principles of Sector Governance. The stipulated vision and policy shall be 
pursued and realized in accordance with principles that will guide the definition of government 
functions in the sector; its relationship with the private sector; the vertical compartmentalization 
of government functions among levels of governance, national and local; and, the horizontal 
compartmentalization of national government functions. These principles that will define and 
delineate the functions, responsibilities and accountabilities of various national government 
agencies are as follows: 
3.1 
Steering Role of the National Government in the Sector. The national 
government shall perform a steering role in the urban development and housing sector. 
a) The national government shall strengthen its role in guiding, mobilizing 
and facilitating in housing and urban development. It shall define the urban 
development vision and provide a housing and urban development framework that 
will guide the investments and activities of the private sector. It shall provide 
policies on spatial integration, urbanization, urban environmental management, 
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urban redevelopment, urban land management, housing development and other 
related concerns to facilitate private enterprise and participation. It shall formulate 
and enforce a minimum set of regulations that will ensure the establishment of a 
level playing field in the provision of urban infrastructure and services and in the 
locational choices of investors, and prevent urban decay, congestion, 
diseconomies of scale and environniental degradation of urban areas. 
b) The national government shall provide policies that will mobilize public 
and private sector resources toward a self-sustaining housing finance system. 
3.2. 
Continuing Devolution of Functions to Local Governments. The national 
government and local governments shall act as partners in housing and urban 
development. Functions, and the corresponding authority and accountability shall be 
continuously devolved to local government units, such devolution to be guided by the 
following: 
a) 
The d elineation o f functions b etween the national g ovemment and 
local governments shall be such that inefficiencies are removed, access to public 
services is improved, and plans, programs and services are responsive to local 
needs and opportunities, For this purpose, functions that are location specific in 
their, benefits and costs shall, to the extent possible, be devolved to local 
governments. 
b) 
The determination of the proper level of government to which a 
function will be devolved shall be determined by the extent of the geographical 
effects of the benefits and the cost of undertaking such function. 
c) 
Local governments shall implement national government policies in 
their respective localities. Location specific functions that are to be devolved to 
local governments are those that relate to the provision of public goods and 
services. Local governments shall to the extent possible, encourage the private 
sector to assume primary responsibility for production of public goods, and limit 
their hnctions to enforcing standards and regulations or providing incentives. 
d) 
Local governments shall have full autonomy in housing and urban 
development planning and management consistent with national policies, 
strategies and regulatory framework. 
e) 
The national government shall be the facilitator, independent 
monitor and performance evaluator. National government shall formulate national 
standards and rules to guide local governments in the formulation of localized 
standards. The promulgation and enforcement of standards and regulations will be 
undertaken by local governments. 
3.3. Maximum Participation of the Private Sector and Communities in Housing 
and Urban Development. The government shall provide policies to maximize private 
sector participation in housing and urban development and to mobilize public and private 
sector resources toward a self-sustaining housing and urban development finance system. 
The national government, through local governments, shall ensure that communities are 
involved in the formulation of housing and urban development policies and plans that 
will impact upon them, their livelihood and their living conditions. Full community 
participation in housing and urban development policies, programs and projects of 
government shall be encouraged. 
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3.4. Responsiveness to the shelter needs of the urban poor communities. The 
government shall directly address the concerns and needs of the urban poor communities 
by formulating the policies, providing and mobilizing resources, and designing as well as 
implementing programs and intervention that will address urban homelessness and 
unemployment. Government shall facilitate the establishment of a finance system that 
enables all sectors of society to have the opportunity to access funds and facilitate the 
provision of adequate shelter, security of tenure and appropriate infrastructure, where 
subsidies, if provided, are transparent in nature and targeted at those in need. 
3.5. Clear Horizontal Compartmentalization and Coordination of Functions 
Among National Government Agencies. 
The Department of Housing and Urban 
Development, created in this Act shall be the primary entity for policy formulation and 
coordination of all housing and urban development functions. It shall define the 
delineation of housing and urban development functions and responsibilities of and 
relationship among national government agencies to promote efficiency and 
effectiveness, clarify accountability, and ensure synchronization. 
3.6. Policy and Coordinating Role of the Department of Housing and Urban 
Development. The role of the Department is to support the accomplishment of the sector 
vision and, in particular, encourage more opportunities to improve the lives of the urban 
poor. 
CHAPTER 2 
DEFINITION OF TERMS 
Section 4. Definitions. As used in this Act, the following terms shall mean: 
4.1 Devolution - the transfer of responsibility, authority and accountability for 
the performance of a defined function from the national government to local 
governments. 
4.2 Urban Land Management - refers to the range of government interventions, 
including policies, incentives, regulation and titling, land use planning and zoning, land 
development, public information and conflict resolution that will promote the 
optimization and most efficient use of urban land, including appropriate land valuation to 
achieve efficiency in use, promote access, support economic productivity, ensure 
sustainable development and protect individual rights. 
4.3 Land Use Plan - refers to the document, formulated by the local government 
in consultation with its stakeholders, that defines or provides guidelines on the allocation, 
utilization, development and management of all lands within a given territory or 
jurisdiction according to the inherent qualities of the land itself and supportive of 
economic, demographic, socio-cultural and environmental objectives. 
4.4 Shelter - refers to the system and its components which establish the 
residential quality of life, including housing, utilities, access to social services and other 
community facilities, security, and other aspects related to an individual’s residence. 
4.5 Urban Development - pertains to the process of occupation and use of land 
or space for such activities as residential, industrial, commercial and the like, necessary to 
carry out the functions of urban living. It entails the building or rebuilding of more or less 
permanent structures over land that is often withdrawn or converted from its original use, 
resulting in the creation of a built environment; 
4.6 
Urban Development Planning - also called city planning or town planning, 
is a process that involves the planning of diverse elements that comprise an urbanized 
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area, including its physical infrastructure, environment, housing, transportation, and 
management of land use and urban growth. 
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4.7 Urban Renewal or Redevelopment - the process of planned renewal, 
physical and socio-economic revitalization of outworn, old, derelict areas of towns and 
cities, as well as preseniation of historical assets through redevelopment and 
rehabilitation. 
4.8 Secondary Mortgage Market - refers to the system, which entails purchase, 
acquisition, discounting, or refinancing of retail loan and mortgage packages or other 
similar instruments. Once purchased these instruments in turn are traded in the financial 
market through the issuance and or sale of bonds, promissory notes, debentures, 
conveyances, and other financial instruments or participation therein, backed by the same 
pool of mortgages and other assets. 
4.9 Zoning Ordinance - refers to the set of rules, regulations and specific 
procedures and requirements promulgated by the local government that will guide land 
use and land development and the development of built environment within the 
jurisdiction of the local government. 
4.10 Attachment - refers to the lateral relationship between the department and 
the attached agency or corporation for purposes of policy and program coordination and 
as further defined under the Administrative Code. 
CHAPTER 3 
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT 
Section 5. Creation of the Department of Housing and Urban Development. There is 
hereby created the Department of Housing and Urban Development, hereinafter referred to as the 
Department. 
Section 6. Powers and Functions. 
The Department shall perform the following 
finctions: 
6.1. Formulate the national urban development and shelter policy and strategy in 
coordination and consultation with the stakeholders, and ensuring its consistency with the 
National Development Plan; 
6.2. In consultation with the stakeholders, formulate the urban development and 
shelter planning framework, establish and operate a national urban development and 
shelter planning system, and develop the necessary planning guidelines, procedures, and 
urban development standards that will define and delineate the roles of all stakeholders, 
and guide the planning, standards localization, promulgation and enforcement of rules, 
and service delivery programs of national government and local governments, and 
facilitate private sector investment; 
6.3. Formulate housing finance policies, and recommend and facilitate the 
development of mechanisms that promote the establishment of a self-sustaining, private 
sector led housing finance system; 
6.4. Formulate and implement a shelter program for urban poor communities 
that will promote their social and economic welfare, and mobilize resources and 
encourage stakeholder participation in the provision of urban services for the poor; 
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6.5. Provide assistance to and capability building of local governments in urban 
development, urban redevelopment and urban management in support of national policies 
and strategies in the sector, as well as strengthen the role of independent component cities 
and provincial governments as the primary entities for urban development planning and 
management at the local level; 
6.6. Develop and establish a sector performance monitoring and assessment 
mechanism, and monitor and independently report on the performance of the sector, 
national government agencies, and local governments in housing and urban development 
to enable continuing improvements in sector policy and strategy formulation; 
6.7. Delineate areas for priority development as urban renewal areas and prepare 
programs for their regeneration; 
6.8. Support devolution and decentralization where local governments in 
partnerships with communities, non-government organizations and private groups assume 
the functions of urban renewal and regeneration; 
6.9. Exercise administrative investigatory powers over local governments to 
ensure their faithful compliance with housing and urban development laws, standards and 
guidelines, as well as their judicious and fair application of local housing and urban 
development and housing ordinances, and require the submission by local governments 
of pertinent documents and information, as may be necessary in the judicious and 
effective conduct of investigation; 
6.10. Coordinate the policies and programs of attached agencies; and 
6.1 1. Perform such other related functions as may be mandated by law. 
Section 7. Mandate. The Department shall b e the p iimary national government entity 
responsible for the management of housing and urban development. It shall be the main planning 
and policy-making, program coordination, and performance monitoring entity for all housing and 
urban development concerns. 
CHAPTER 4 
DEPARTMENT PROPER 
Section 8, 
Composition. The Department Proper shall be composed of the Office of 
the Secretary, hidher immediate staff, the Offices of the Undersecretary and Assistant 
Secretaries, and the Offices and Services directly supportive of the Office of the Secretary. 
Section 9. 
(1) 
The Secretary. The Secretary shall: 
Advise the President on the promulgation of rules, regulations and other issuances 
relative to matters under the jurisdiction of the Department; 
(2) 
Establish policies and standards for the efficient and effective operations of the 
Department in accordance with the programs of the government; 
(3) 
Promulgate r ules, r egdations and o ther i ssuances necessary in c arrying out the 
Department’s mandate, objectives, policies, plans, programs and projects; 
(4) 
Exercise supervision and control over all functions and activities of the 
Department; 
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( 5 )  
Delegate authority for the performance of any administrative or substantive 
function to subordinate officials of the Department; aid 
(6) 
President. 
Perform such other functions as may be provided by law or assigned by the 
The Secretary shall also serve as an ex-officio, non-voting member of the National 
Economic and Development Authority (NEDA) Board, the governing boards of the Social 
Security System (SSS), the Government Service Insurance System (GSIS) and the Public Estates 
Authority (PEA). The Secretary shall be a member of the NEDA's Committee on Infrastructure 
(INFRACOM) and the Social Development Committee (SDC). The Secretary shall be a member 
of the body authorized to formulate, prescribe, or amend guidelines under Republic Act No. 
6957, otherwise known as the Build-Operate-Transfer Law. Further, the Secretary shall be the 
chairperson of the governing boards of the National Housing Authority (NHA), the Home 
Development Mutual Fund (HDMF), and the National Home Mortgage Finance Corporation 
("MFC), 
and the vice-chairperson of the governing board of the Home Guaranty Corporation 
(HGC). 
Section 10. 
The Undersecretary and Assistant Secretaries. The Secretary shall be 
assisted by an Undersecretary and such Assistant Secretaries as may be necessary and allowed by 
law or organizational policy of government. The Undersecretary and Assistant Secretaries shall 
be career officers and shall be appointed by the President upon the recommendation of the 
Secretary. They shall have the powers and functions as provided for in Section 10, Chapter 2, 
Book N of the Administrative Code of 1987. The Secretary is hereby authorized to delineate and 
assign the respective functional areas of responsibility of the undersecretary and assistant 
secretaries. 
Section 11. 
Financial Management Service. 
The Financial Management Service 
shall: 
a) 
Formulate the medium-term and annual expenditure program for the 
Department and prepare, execute and administer the Department's annual budget; 
b) 
Develop and implement approaches, methodologies and procedures for 
ensuring efficiency in the allocation and utilization of budgetary and other resources of 
the Department; 
c) 
Provide accounting, financial management, disbursement and cashiering 
services to the department and ensure the submission of the appropriate financial and 
physical performance reports and financial statements; 
d) 
Monitor and make recommendations on the financial and physical 
performance of the Department's programs, projects and activities; and 
e) 
Perform such other related functions as may be assigned by the Secretary 
Section 12. 
Administrative Service. The Administrative Service shall provide the 
Department with efficient and effective services relative to personnel, human resources 
development, records management and custodial work, supplies and inventory management, 
procurement, physical assets management, and other related administrative functions as may be 
assigned by the Secretary. 
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Section 13. 
Legal and Legislative Service. The Legal and Legislative Service shall: 
a) 
services; 
Provide the Department, its officials and personnel with legal counseling 
b) 
Provide assistance to the Secretary in handling cases affecting the 
Department, and in the investigation of administrative cases involving Department 
personnel; 
c) 
Provide assistance to the Secretary and other Department personnel in the 
preparation of legislative proposals and legal issuances affecting the sector or the 
Department; 
d) 
Review and make recommendations to the Secretary on the legal and 
legislative implications of plans, programs and activities affecting the sector or the 
Department; and 
e) 
Perform such other related functions as may be assigned by the Secretary. 
Section 14. 
Information Service shall: 
Public Relations and Information Service. The Public Relations and 
a) 
Formulate and implement a public information and relations program that 
will promote public and stakeholder knowledge of and feedback on the policies, 
regulations, incentives, opportunities and programs and projects in the housing and urban 
development sector; 
b) 
Prepare, produce and publish materials to support such public information 
and public relations program; 
c) 
Establish collaborative networks for the dissemination of information and 
generation of feedback on sectoral concerns; and 
d) 
Perform such other related functions as may be assigned by the Secretary. 
Section 15. 
Information and Communications Technology Service. The Information 
and Communications Technology Service shall: 
a) Formulate and implement an information and communications technology 
plan for the sector that will ensure the speedy generation, organization, and processing of 
data and production of analytic information to support planning, policy formulation, 
performance monitoring and assessment and the transaction processing systems of the 
Department. 
b) Define the design of the integrated information systems and their functional 
specifications, and undertake the management of the development, operation and 
maintenance of applications; 
c) Establish collaborative electronic data sharing and communications linkages 
with other departments, agencies, industry and local government units to ensure the 
generation of comprehensive, up-to-date and accurate data and promote their wider use in 
decision making; 
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d) Undertake continuing user training and assistance to improve computer 
literacy and promote the sophisticated use of information technology in planning, 
analysis, transaction processing and decision making; 
e) Be responsible for the maintenance and provision of support services to all 
Department employees in the use of information technology; 
0 Conduct continuing studies on best uses of information and communications 
technology in the housing and urban development sector; and 
g) Perform such other functions as may be assigned by the Secretary. 
Section 16. 
Advisory Committees. The Secretary shall have the power to establish ad- 
hoc advisory committees, consisting of key representatives from the private sector, urban poor 
communities and other marginalized groups, academe, local governments, and national 
government to provide a forum for private sector participation and dialogue on key housing and 
urban development issues and policies. 
Section 17. 
StaffiRg Pattern. The Secretary shall prepare and implement a staffing 
pattern for the Department proper. The development of the staffing pattern shall be based on an 
assessment of the personnel requirements of the entire Department. The remuneration structure 
o f  the positions in the staffing pattern shall conform to the Salary Standardization Laws. The 
Department of Budget and Management shall fund in full the staffing pattern of the Department. 
The internal structure and the specific number of divisions that will comprise each of the 
above bureaus and units under the Department shall be determined and established by the 
Secretary. 
CHAPTER 5 
PLANS, POLICIES AND MONITORING OFFICE 
Section 18. 
Plans, Policies and Monitoring Office. 
The Plans, Policies and 
Monitoring Office (PPMO), under the Office of the Secretary, shall be headed by an Assistant 
Secretary and shall b e the c entrql government p olicy, p lanning and monitoring t hi& t ank for 
housing and resettlement, and urban planning, development and regeneration. The PPMO shall 
be responsible for the: 
(a) 
Formulation of national housing policy, urban and regional development 
policies, and resettlement policy; 
(b) 
Updating of national urban development and housing framework; 
preparation of national shelter plan and agency corporate plan; 
(c) 
Provision of internal planning services; reviewing policies, plans and 
programs of key shelter agencies; 
(d) 
Conducting research and development in housing technologies and into 
housing and urban development; 
(e) 
Monitoring the effectiveness of government policies and programs in 
housing delivery and urban development, including those of the attached agencies; 
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(f) 
Development of performance indicators for housing and urban 
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development, develop the performance indicators and program targets for key shelter 
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agencies and local governments; 
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housing framework; 
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(h) 
Provision of internal evaluation services to HUDCC; 
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other government agencies; and 
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urban development. 
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19 . Monitoring shall supervise the following: 
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Bureau shall.: 
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a) Formulate, review and update, in consultation with national 
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government agencies, local governments, private sector, communities and other 
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stakeholders, national plans, objectives and policies for housing and urban 
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development, specifically the National Urban Development and Housing 
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Framework and the National Shelter Program; 
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b) Establish and implement a national housing and urban development 
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planning system and coordinate the preparation and timing of the sectoral plans of 
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national government agencies with the local development plans of local 
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government units, ensuring their consistency with the National Urban 
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Development and Housing Framework, the National Shelter Program and the 
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Medium-Term Philippine Development Plan; 
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c) Design programs for the provision of capacity building assistance to 
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local governments in housing and urban development planning, investment 
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programming, formulation of zoning ordinances, plan administration and 
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performance assessment; 
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e) Standardize planning data and sector information requirements under a 
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uniform data classification and storage and through geographic information 
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systems; 
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f) Formulate a foreign-assisted projects framework consistent with the 
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Urban Development and Housing Framework, Nation.al Shelter Program and 
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Sector Public Investment Program; 
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g) ' Formulate an effective monitoring and performance evaluation system 
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and undertake the overall monitoring and performance assessment of foreign- 
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assisted housing and urban development projects of the department, the attached 
(g) 
Monitoring key shelter agencies' performance against targets as well as 
the accomplishment of national shelter plan and adherence to the urban development and 
Integration o f h ousing and urban d evelopment d ata b anks with those o f 
Monitor the performance of local government programs in housing and 
Section 19. 
Bureaus under the PPMO. The Assistant Secretary for Plans, Policies and 
(1) 
Plans, Policies and Programs Bureau. The Plans, Policies and Programs 
d) Formulate policies and design interventions that will directly address 
the shelter concerns of the urban poor communities, including the formulation of 
guidelines on eviction and relocation; 
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agencies and other national government agencies, local government units, and 
other entities; 
h) Establish project management units to manage and coordinate the 
implementation of foreign assisted projects of the Department, where necessary; 
i) Provide 
technical 
assistance 
to 
project 
management 
and 
iniplenientation offices and units of foreign-assisted projects of the Department in 
the facilitation of project implementation in accordance with approved policies 
and schedules; and 
j) 
Perform such other functions as may be assigned by the Secretary. 
(2) 
Monitoring and Evaluation Bureau. The Monitoring and Evaluation 
Bureau shall: 
a) 
Monitor and evaluate the performance of the sector particularly on 
the consistency of programs, projects and activities of national government 
agencies, local government units, industry and other stakeholders with the 
National Urban Development and Housing Framework, National Shelter Strategy, 
sector public investment programs and the policies of the department; 
b) 
Develop and operate a sector performance monitoring and 
evaluation system, and monitor, evaluate and independently report on the 
perfoimance o f  the sector and that of local governments, industry, national 
government and other key sector stakeholders; 
c) 
Recommend changes and coordinate action needed to ensure the 
accomplishment of the objectives of the National Urban Development and 
Housing Framework, National Shelter Strategy, sector public investment 
programs and the policies of the department; 
d) 
Regularly monitor the corporate and operational performances of 
all the organic bureaus, attached agencies and corporations, and make 
recommendations thereon; and 
e) 
Secretary. 
Perform such other related functions as may be assigned by the 
(3) 
Housing Finance 
Development 
Bureau. 
The 
Housing 
Finance 
Development Bureau shall: 
a) 
Formulate policies to encourage a sustainable market-oriented 
housing finance system to ensure adequate flow of private funds into the primary 
and secondary mortgage markets; 
b) 
Develop and implement incentive schemes to encourage greater 
participation by the private sector, communities and other stakeholders in the 
provision of housing and housing finance; 
c) 
Design the most appropriate subsidy mechanism to increase 
transparency and efficiency in the use of public funds, including the creation of a 
socialized housing fund or other mechanisms to administer up-front grants or 
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amortization support, and design the implementing systems and procedures for 
the program maximizing the principles of decentralization and devolution; 
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d) 
Undertake continuing studies for the improvement of the 
institutional framework and administrative operations for housing finance; 
e) 
Recommend legislation to improve housing finance laws, policies 
and mechanisms and develop initiatives for private sector and community 
participation; 
f, 
Conduct continuing studies on improving housing finance, 
resource generation and mobilization, and their implementing strategies and 
mechanisms; and 
h) 
Administer homeless assistance advancedgrants to L GUS, N GOs 
and private communities for temporary or emergency housing in response to man- 
made or natural calamities; and 
i) 
Perform such other functions as may be assigned by the Secretary. 
(4) 
Research and D evelopment Service. The Housing Finance D evelopment 
Bureau shall: 
a) 
Formulate and implement a research and development agenda and 
mobilize public and private sector resources to generate new knowledge; develop 
and/or adopt new technologies; identify and design new products and services, to 
support continuing improvement in housing and urban development regulation, 
production and service delivery; 
b) 
Undertake continuing studies on the research and development 
requirements of the housing and urban development sector, for the purpose of, but 
not limited to policy development, planning and standards formulation; 
c) 
Establish collaborative mechanisms with international and local 
institutions, the academe and research institutions, industry, local governments 
and national government agencies, and other entities and individuals for 
knowledge 
sharing, 
research 
resources 
sharing, 
technology 
transfer, 
commercialization, and useful exploitation and industry use of research and 
development; 
d) 
Publish and disseminate research and development information to 
the public to promote innovation in the various aspects of housing and urban 
development; and 
e) 
Secretary. 
Perfom such other related functions as may be assigned by the 
CHAPTER 6 
URBAN DEVELOPMENT AND HOUSING OPERATIONS OFFICE 
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Section 20. 
The Urban Development and Housing Operations Office. The Urban 
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Development and Housing Operations Office (UDHOO), under the Office of the Secretary, shall 
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be headed by an Assistant Secretary and shall be responsible for the: 
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(2) 
Development and administration of the national government subsidy 
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Development of the capacity of local governments to plan, implement and 
monitor housing, land management, urban development and urban redevelopment 
(3) 
Provision of advice and guidance on the development of housing finance 
market in the Philippines; and 
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(4) 
Provision of technical and administrative support to, management and 
implement of foreign assisted projects at the central level. 
Section 21. 
Bureaus under the UDHOO. 
The Assistant Secretary for Urban 
Development and Housing Operations shall supervise the following: 
(1) 
Housing and Land Use R egulation Bureau. The Housing and Land Use 
Regulation Bureau shall be responsible to: 
a) 
Formulate, review and update national policies and standards, 
guidelines and regulations relative to laud use for implementation and 
enforcement by local government units; 
b) 
Develop urban development planning and urban development, land 
use, zoning and urban management standards and guidelines for the formulation 
of local development plans, land use plans and zoning ordinances, and for local 
development administration and urban management by local govemkents, 
ensuring the integration of the spatial and socio-economic aspects of 
development, promoting consultation and consensus, and improving development 
quality; 
c) 
Formulate national standards and regulation relative to the 
development of condominium and sub-division projects, which will serve as 
guide for the enforcement of such regulation by the provincial governments and 
independent cities; 
d). 
Formulate zoning and other land use control standards and 
guidelines which shall govern the development and implementation of local land 
use plans and zoning ordinances of municipalities and component cities; the 
zoning components of civil works and infrastructure projects of the national, 
regional and local governments located within the geographical jurisdiction of the 
province or independent component city; sub-division or estate development 
projects of the public and private sectors; and urban renewal plans, programs and 
projects; Provided, that 
these standards and guidelines shall respect the 
classification of public lands for forest purposes as certified by the Department of 
Environment and Natural Resources; 
e) 
Monitor, evaluate, investigate and independently report on the 
performance of local governments, the private sector, and other stakeholders in 
the aspects of housing development, land use management, and their regulation; 
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Issue rules and regulations to enforce the land use policies as 
prescribed by existing laws on land use and such other laws regulating the use of 
land, including the regulatory aspect of the Urban Land Reform Act and all 
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decrees relating to the value of land and improvements and their rental, in their 
respective geographical areas of jurisdiction; 
g) 
Develop and install the housing and land use development oversight 
monitoring system and undertake reserve compliance monitoring function deemed 
vital by the Secretary. 
h) 
Formulate and implement real estate consumer education and 
protection programs; and 
i) 
Perform such other related functions as may be assigned by the 
Secretary. 
(2) 
Urban Land Management and Regeneration Bureau. The Urban Land 
Management and Regeneration Bureau shall be responsible to: 
a) 
Formulate urban land management, renewal and regeneration 
policies, strategies, concepts, and models; mobilize community support and create 
the governance mechanisms, incentives and disincentives and other modes of 
intervention to mobilize public and private sector resources; 
b) 
Undertake continuing monitoring and assessment of urban land 
management policies, programs, interventions and institutional mechanisms and 
assess the urban land management, renewal and regeneration needs and reform 
requirements to improve policy and strategy formulation; 
c) 
Coordinate the urban land management, renewal and regeneration 
activities of the national government to ensure efficient use of public resources; 
prevent duplication and overlapping, streamline procedures, encourage private 
sector and community participation and improve services; 
d) 
Undertake studies on urban land management regeneration, and 
apply best practice and lessons in improving policy, government intervention and 
practice; 
e) 
Design programs for improving capacities of local governments in 
urban land management, renewal and regeneration; and 
f) 
Perfom such other functions as may be assigned by the Secretary. 
CHAPTER 7 
OFFICE FOR REGIONAL OPERATIONS 
Section 22. 
The Office for Regional Operations. The Office for Regional Operations 
shall exercise supervision and control over the Department’s Regional Offices, described in 
Section 24 hereof. It shall be responsible for the provision of public information, monitoring of 
LGU performance, development of a regional-central reporling and worlchow processes, 
provision of government assistance to LGUs, administration of subsidy and other regional 
operations. 
Sectioii 23. 
Regional Offices. The Department is hereby authorized to establish, 
operate and maintain a Department-wide regional office in each of the country’s administrative 
regions. Each Regional Office shall be headed by a Regional Director and shall have, within its 
administrative region, the following functions: 
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a) Implement the policies and programs of the Department in the concerned 
region; 
b) Implement the local government housing and urban development capacity 
building programs of the Department in their respective regions; 
c) Ensure the consistency of the over-all regional development goals and 
programs with the National Urban Development and Housing Framework, and the 
National Shelter Program, and vice-versa; similarly between Department programs and 
regional plans of other government agencies; 
d) Review all local development and land use plans of provinces and 
independent cities for purposes of ensuring compliance with laws within thirty (30) days 
from receipt thereof; 
e) Undertake the independent monitoring and review of sector performance and 
the performance of national government, local governments, industry and other 
stakeholders in the regions, and recommend appropriate action thereon; 
f) Monitor, investigate and assess compliance to approved subdivision and 
condominium plans; and for the purpose, impose finesipenalties and, on its own motion 
or upon complaint of any interested party, after the conduct o f  appropriate investigation, 
issue notices of violations and Cease and Desist Orders for non-compliance thereof; 
g) Coordinate the housing and urban development planning process in the 
regions to ensure the delivery of various activities and services such as titling, issuance of 
permits for subdivision plans, the provision of social and livelihood services, and other 
services related to housing and urban development; 
h) Maintain a regional database and information system for the sector in the 
region; 
i) Undertake a public information program to provide the industry, general 
public and other stakeholders with information on national and local government policies, 
regulations and programs, as well as to establish a consultative mechanism to serve as a 
forum for continuing planning and evaluation of settlement programs and projects; 
j) Implement, monitor and evaluate policies, rules and regulations 
governing 
resettlement, r elocatiodeviction or demolition due to for 
government projects'w hich 
will involve the eviction or demolition of structures 
of 
homeless 
and 
underprivileged citizens, and recommend appropriate action thereon; 
k) Ensure that local government units institute preventive measures against 
squatting and address other concomitant problems, such as rural to urban migration; 
1) Monitor and evaluate the implementation of government's programs and 
projects which would require housing provision andor relocation and resettlement 
activities, and recommend appropriate action thereon; 
m) Administer homeless assistance advances/grants to LGUs, NGOs and private 
communities for temporary and emergency housing, in response to man-made and 
natural calamities; 
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n) 
Implement innovative, clearly defined, transparent and on-budget housing 
subsidy mechanisms for the homeless and underprivileged in the regions to enhance 
accessibility to housing; 
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Registration 
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p) 
Perform such other functions as may be assigned by the Secretary. 
CHAPTER 8 
ATTACHED AGENCIES 
Section 24. Attached Agencies and Corporations. 
The following agencies and 
corporations are hereby attached to the Department for policy and program coordination: 
24.1. National Housing Authority ("A); 
24.2. Housing Guarantee Corporation (HGC); 
24.3. 
24.4. 
24.5. 
National Home Mortgage Finance Corporation (NHMFC); 
Home Development Mutual Fund (HDMF); and 
Housing and Urban Development Adjudication Commission (HUDAC). 
Section 25. 
National Housing Authority (NHA). T he N ational Housing Authority 
shall remain as the sole national government arm for shelter production and shall institute such 
programs and approaches that will promote housing provision for low-income families. It shall 
encourage private sector participation in socialized housing production and assist local 
governments in building capabilities for the implementation of local housing programs and 
projects. 
Section 26. Home Guarantee Corporation (HGC). The Home Guaranty Corporation 
shall concentrate on its mandate of providing guarantees to: (a) encourage the flow of private 
funds for mass housing development and homebuyers' financing, and (b) support the 
development and sustainability o f  the secondary mortgage market for housing. The Corporation 
shall conduct studies and initiate activities for greater private sector participation in the short- 
term and for its eventual privatization over the medium term. 
Section 21. National Home Mortgage Finance Corporation (NHMFC). The National 
Home Mortgage Finance Corporation shall focus on its designated function as the secondary 
mortgage institution of the country. To achieve this, the Corporation shall implement measures 
necessary to enhance its organizational capability and financial soundness, including, but not 
limited to, improvement of collection efficiency, restructuring o f  management information 
systems, and upgrading of its technical capability. The Corporation shall conduct studies and 
initiate activities for greater private sector participation in the short-term and for its eventual 
privatization over the medium term. 
Section 28. Home Development Mutual Fund (HDMF). The Fund shall continue its 
function of providing a savings systems for public and private sector employees with housing as 
its primary investments, provided for in P.D. 1752, as amended by E.O. 35 and Republic Act 
7742. 
Section 29. Nature of Attachment. The Secretary shall in concurrent capacity, be the ex 
oficio chairperson of the governing hoards of the attached corporations, namely, the NHA, the 
HGC, the NHMFC and the HDMF. 
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CHAPTER 9 
HOUSING AND URBAN DEVELOPMENT ADJUDICATION COMMISSION 
Section 30. 
Renaming and Reconstitution of the Housing and Land Use Regulatory 
Board. The Housing and Land Use Regulatory Board is hereby renamed and reconstituted as the 
Housing and Urban Development Adjudication Commission (HUDAC), hereinafter to referred 
as the Commission. 
Section 31. Composition and Qualification of Members. The Commission shall be 
composed of a Chairperson and fourteen (14) full-time Members to be appointed by the 
President, majority of whom shall be members of the Philippine Bar while the others shall have a 
background or experience in urban development planning, development and implementation of 
shelter programs for urban poor communities, management, architecture, civil engineering, and 
other related fields. They must have been engaged in the practice of their respective professions 
or specialization or employed in an appropriate office for a period of at least five (5) years. In 
addition, no person who has been convicted of a crime involving moral turpitude shall be 
appointed as members of the Commission. 
The Commission may sit en banc or in five (5) divisions, each composed of three (3) 
members, Subject to the penultimate sentence of this paragraph, the Commission shall sit en 
banc only for purposes of promulgating rules and regulations governing the hearing and 
disposition of cases before any of its divisions and regional offices and formulating policies 
effecting its administration and operations. The Commission shall exercise its adjudicatory and 
all other powers, functions, and duties through its divisions. Of the five (5) divisions, the first, 
second and third divisions shall handle cases coming from the National Capital Region and the 
parts of Luzon; and the fourth and fifth divisions, cases from the Visayas and Mindanao, 
respectively; Provided, That the Commission sitting en banc may, on temporary or emergency 
basis, allow cases within the jurisdiction of any division to be heard and decided by any other 
division whose docket allows the additional workload and such transfer will not expose litigants 
to unnecessary additional expense; and, Provided further that the Commission shall designate 
one (1) division to hear and resolve cases involving eviction and relocation of urban poor 
communities. The divisions of the Commission shall have exclusive appellate jurisdiction over 
cases within their respective territorial jurisdictions. 
The concurrence of two (2) Commissioners of a division shall be necessary for the 
pronouncement o f  judgment or resolution. Whenever the required membership in a division is 
not complete and the concurrence of two (2) Commissioners to arrive at a judgment or resolution 
cannot be obtained, the Chairperson shall designate such number of additional Commissioners 
from the other divisions as may be necessary. 
The conclusions of a division on any case submitted to it for decision shall be reached in 
consultation before the case is assigned to a member for the writing of the decision. It shall be 
mandatory for the division to meet for purposes of the consultation ordained therein. A 
certification to this effect signed by the Presiding Commissioner of the division shall be issued 
and a copy thereof attached to the record of the case and served upon the parties. 
The Chaiiperson shall be the Presiding Commissioner of the first division and the four (4) 
other senior members shall be the Presiding Commissioners of the second, third, fourth and fifth 
divisions, respectively. In the case of the effective absence or incapacity of the Chairperson, the 
Presiding Commissioner of the Second Division shall be Acting Chairperson, 
The Chairperson, aided by the Executive Clerk of the Commission, shall have 
administrative supervision over the Commission and its regional branches and all its personnel 
including the Executive Housing and Land Use Arbiters and Housing and Land Use Arbiters. 
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The Commission, when sitting en banc shall be assisted by the Executive Clerk and, 
when acting through its Divisions by the Division Clerk, respectively, who shall perform such 
similar or equivalent functions and duties as are discharged, by the Clerk of Court and Deputy 
Clerk of Court of the Court of Appeals. 
Section 32. 
Term and Compensation. The Members of the Commission shall be 
appointed for a term of six (6) years, without prejudice to reappointment, after the said term shall 
have expired. The Chairperson and Members of the Commission shall receive an annual salary at 
least equivalent to that of, and be entitled to the same allowances and benefits as, an 
Undersecretary and Assistant Secretary of the Department, respectively. 
The incumbent full-time Commissioners of the present HLURB shall remain in Office 
unless they opt to avail of the retirement and separation benefits provided in Section 49 of this 
Act or are sooner removed for cause. 
Section 33. Jurisdiction. The Housing and Land Use Arbiters shall exercise original 
and exclusive jurisdiction to hear and decide cases involving the following: 
33.1. On Real Estate - 
a) Unsound and fraudulent real estate business practices; 
b) Claims for refund against project owners; developers, dealers, brokers 
and salespersons; 
c) . Specific performance of contractual and statutory obligations filed by 
buyers of subdivision lots or condominium units against the owner, developer, 
dealer, broker or salespersons; 
d) Squatting on subdivision lots; 
e) Eviction and relocation of squatter communities; 
f) Disputes involviiig buyer-financing agreements with any financing 
institution for condominium/subdivision projects; 
g) Disputes involving easements or right of way arising from, related to 
or in connection with the development of subdivision and housing projects; 
h) Disputes between: (1) land owners and developers, and (2) banks and 
developers, whenever the interest of buyers of subdivision lots, or house and lots, 
or condominium units are involved; 
i) Releases of mortgage titles of subdivision lots and condominium units; 
j) Disputes involving easement of waterways, drainage, connections and 
light and view arising from, related to or in connection with the development of 
subdivision and housing projects; 
IC) Disputes involving homeowners associations and condominium 
corporations, whether intra corporate or inter corporate; 
I) Claims 
of 
broker/salesmen 
for 
unpaid 
commissions 
for 
condominiudsub-division projects; 
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m) Other related cases arising from contractual or statutory obligations of 
owners, dealers, brokers or salesmen towards lot or unit buyers; and 
n) Regulation of the relationship between residential lessors and lessees 
that are governed by the Rent Control Law. 
33.2. On Housing and Land Use Planning and Regulation - Decisions and 
actions of: (1) local housing boards or provincial governments, highly urbanized 
independent component cities and the cities and municipalities of Metro Manila; (2) 
regional and local physical planning and zoning bodies, including zoning boards of 
adjustment and appeals on complaints alleging violations of local zoning ordinances not 
involving land conversion issues; and (3) provincial and component independent city 
governments with respect to applications relative to applications with opposition, 
petitions or complaints for revocation of clearances, permits and licenses issued and 
issuance of Cease and Desist Orders and administrative fines. 
33.3. On Shelter Rights - Violations of administrative rules and regulations 
implementing Sections 18 and 28 of Republic Act 7279, otherwise known as the Urban 
Development and Housing Act. 
The Commission shall have exclusive appellate jurisdiction over all cases decided by the 
Housing and Land Use Arbiters. 
Section 34. Power and Authority. The Commission shall have the following powers 
and authorities: 
34.1, To promulgate rules and regulations governing the hearing and disposition 
of cases filed before it and those pertaining to its internal functions and such other 
regulations as may be necessary to carry out the purposes for which it is established; 
Provided, That it shall not be bound by technical rules of procedure but shall proceed to 
hear and decide all cases, disputes or controversies in a most expeditious manner, 
employing all reasonable means to ascertain the facts of every case in accordance with 
justice, equity and merit; 
34.2. To administer oaths, summon parties to a controversy, issue subpoenas 
requiring attendance and testimony of witnesses or the production of such books, papers, 
contracts, records, agreements and other documents of similar nature as may be material 
to a just determination of the matter under investigation or hearing conducted in 
pursuance of this Act; 
34.3. To issue writs, orders to execute demolition, or seizure or closure of 
property in accordance with its decision; 
34.4. To issue preliminary or permanent injunctions, whether prohibitory or 
mandatory, in all cases in which it has jurisdiction, and in which the pertinent provisions 
of the Rules of Civil Procedure shall apply; 
34.5. To hold any person in contempt, directly or indirectly, and impose 
appropriate penalties thereof; 
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34.6. ' To 'impose administrative fines and /or penalties for violation of this Act, 
the Urban Development and Housing Act; and other laws implemented by the 
Commission, including pertinent rules and regulations, orders, decisions and/or rulings; 
Provided, That the maximum fines or penalties to be imposed shall not exceed Five 
Hundred Thousand P esos (P500,OOO.OO); Provided, further, That the Commission may 
adjust such rates not more than once every three (3) years; 
34.7. To determine and order the payment by the losing party of the cost of the 
litigation incurred by the winning party and prescribe the manner in which such payments 
shall be made; 
34.8. To deputize any law enforcement agency in the execution of its final 
orders, rulings or decisions; and 
34.9. To exercise such other powers as implied, necessary, or incidental to 
carrying out the express powers granted to the Commission or to achieve the objectives 
and purposes of this Act, and other laws implemented by the Commission. 
The Chairperson, aided by the Executive Clerk of the Commission, shall have 
administrative supervision over the Commission and its regional branches and all its personnel 
including the Housing and Land Use Arbiters. 
Section 35. Crimiizal Prosecution. Criminal prosecution for violation of housing laws 
and regulations shall be instituted before regular courts with appropriate jurisdiction. 
Section 36. Housing and L and Use Arbiters, Qualifiratious, Powers and Functions. 
The qualifications, powers and functions of the Housing and Land Use Arbiters shall be as 
indicated hereunder: 
36.1. The Secretary, upon recommendation of the Chairperson of the 
Commission, shall appoint Housing and Land Use Arbiters as the needs of the service 
may require for each administrative region. 
36.2. No person shall be appointed Housing and Land Use Arbiter unless he/she 
is a member of the Philippine Bar with at least three (3) years experience or exposure in 
the field o f  real estate and land use development cases; 
36.3. The Housing and Land Use Arbiters shall receive an annual salary at least 
equivalent to that of, and be entitled to the same allowances and benefits, as an Assistant 
Regional Director of the Department. 
36.4. The Housing and Land Use Arbiters shall have original and exclusive 
jurisdiction to hear and decide cases enumerated in Section 34 of this Act. 
Section 37. SherifJ: The Commission shall appoint a sheriff or such number of sheriffs 
in its central and regional branches. No person shall be appointed to the position of sheriff unless 
he is a second grade civil service eligible and has finished at least two (2) years of college. The 
sheriff shall be responsible for the service or execution o f  all writs, summons and orders and 
other processes of the Commission. 
Section 38. Appearances. A lawyer appearing for a party is presumed to be properly 
authorized for that purpose. A non-lawyer may appear before the Commission or the Housing 
and Land Use Arbiter only if: a) he/she represents himherself as parties to the case; or b) he/she 
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represents hidher organization or members thereof; Provided, That heishe shall be made to 
present written proof that he/she is properly authorized. 
Section 39. Appeals. Decisions, awards or orders of the Housing and Land Use Arbiters 
shall be final and executory unless appealed to the Commission within ten (10) calendar days 
from receipt of such decisions, awards or orders. The appeal may be entertained only on any of 
the following grounds: 
(a) 
If there is prima facie evidence of abuse of discretion on the part of the 
Housing and Land Use Arbiter in rendering the questioned decision, award or order; 
(b) 
If the decision, order or award was secured through fraud or coercion: 
including graft and corrnption; 
(c) 
(d) 
If made purely on questions of law; and 
If serious errors in the findings of facts are raised, which would cause 
grave or irreparable damage or injury to the appellant. 
Decisions of the Commission can be appealed only to the Court of Appeals by way of a 
Petition for Review within fifteen (15) days from notice of judgment, award or order pursuant to 
Rule 43 of the 1997 Rules of Civil Procedure. 
Section 40. Prohibition Aguinst Restraining Order of Injnflction. No lower court of 
the Philippines shall have jurisdiction to issue any restraining order or writ of preliminary 
injunction or permanent injunction against the Commission or its Housing and Land Use 
Arbiters in any case, dispute or controversy arising from, necessary to, or in connection with the 
application, implementation, enforcement or interpretation of this Act and other pertinent laws 
on housing and just and humane eviction or demolition procedures. 
Section 41. Pending Cases. All cases pending i n  court arising from or in connection 
with the implementation of pertinent laws on housing and just and humane eviction/demolition 
procedures shall continue to be heard, tried and decided to their finality. 
CHAPTER 10 
FUNCTIONS OF LOCAL GOVERNMENTS IN RELATION TO HOUSING AND 
URBAN DEVELOPMENT 
Section 42. Continuing Devolution of Functions to Local Governments. The national 
government, through the Department of Housing and Urban Development, and in consultation 
with the Department of Interior and Local Government and the local governments, shall 
formulate and implement a continuing devolution program for housing and urban development 
sector functions, responsibilities, authority and accountability, in accordance with the principles 
of sector governance stipulated in this Act. 
Section 43. Devolution of Rule Enforcement Functions to Provinces and Independent 
Component Cities. The following regulatory functions of the Housing and Land Use Regulatory 
Boardasprovided forinExecutiveOrderNo. 648, dated 07 February 1981 a s  amended b y  
Executive Order No. 90, dated 17 December 1986, are hereby devolved to provincial 
governments, independent component city governments and the cities and municipalities of the 
Metropolitan Manila Area; Provided that all rule promulgation and enforcement functions and 
activities of local government units, are in accordance with the prescribed regulatory framework 
and policies as well as guidelines issued by the Department of Housing and Urban Development: 
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43.1. Review, evaluate and approve or disapprove comprehensive local 
development plans, local land use plans and zoning ordinances of component cities and 
municipalities; the zoning components of civil works and infrastructure projects of 
national, regional and local governments; subdivision, condominium or estate 
development projects including industrial estates, of the public and private sectors; and 
urban renewal and regeneration plans, programs and projects; Provided that the review 
and approval of such comprehensive local development plans, local land use plans and 
zoning ordinances shall respect the classification of public lands €or forest purposes as 
certified by the Department of Environment and Natural Resources; and Provided that the 
classification of specific alienable and disposable lands by the Bureau of Lands shall be 
in accordance with the relevant zoning ordinance o f t he 1 oca1 government where such 
lands are located; and the provisions of RA 6657 with regard to the lands distributed, and 
issued notice of coverage under the Comprehensive Agrarian Reform Program (CARP) 
as certified by the Department of Agrarian Reform; Provided, Further, that nothing in this 
Section shall be construed as repealing, amending or modifying in any manner, the 
provisions of RA 6657. 
43.2. Registration of subdivision lots and condominium projects; issuance of 
license to sell subdivision lots and condominium units in the registered units; approval of 
performance bond and the suspension of license to sell; approval or mortgage on any 
subdivision lot or condominium unit made by owner or developer; granting of permits for 
the alteration of plans and the extension of period for completion of subdivision or 
condominium projects, subject to the standards and requirements of the Department; 
43.3. Impose fines and penalties as may be allowed under existing laws or 
Department policies, and guidelines; 
43.4. Conduct public hearings and consultations on the promulgation of 
regulation; 
43.5. 
43.6. 
Formulate and adopt rules and procedures for rule enforcement; 
Provide information to the Department necessary in the monitoring of 
local urban development and housing 'in accordance with the report content and 
formatting guidelines of the Department; and 
43.7. Perform such other related regulatory functions as may be provided for by 
law. 
CHAPTER 11 
TRANSITORY PROVISIONS 
Section 44. 
Transfer of Functions. The following functions are hereby transferred as 
stipulated hereunder: 
44.1. The rule, standards and guidelines formulation functions of the Housing 
and Land Use Regulatory Board is hereby transferred to the Department, while its rule 
promulgation and enforcement functions are hereby transferred to the provincial 
governments, independent component cities and to the cities and municipalities 
comprising the Metropolitan Manila Area. 
44.2. The registration of incorporation of homeowners associations and 
condominium corporations are hereby transferred to the regional offices of the 
Department. 
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Section 45. 
Formulation of Regulatory Framework and Devolntion Implementation 
Program. The Department shall formulate a regulatory framework and design the necessary 
policies, standards, guidelines and procedures to guide the rule promulgation and enforcement 
functions of provincial governments, independent component cities and the cities and 
municipalities of the Metropolitan Manila Area. The Department shall formulate and implement 
a devolution plan which shall include a multi-year capacity building program, and technical 
assistance services for the institutional capacity development of provincial governments, 
independent component cities and the cities and municipalities of the Metropolitan Manila Area 
and the gradual transfer of regulatory functions, and the turnover of the pertinent records and 
transactions to the pertinent local governments which should be completed within Five (5) years 
from the effectivity of this Act. 
Section 46. Abolition and Conversion of Agencies. The following dispositive actions 
shall be implemented within six (6) months from the effectivity of this Act: 
46.1. The Housing and Urban Development Coordinating Council and the 
Presidential Committee for Mass Housing are hereby abolished. Its functions, assets, 
equipment, funds, choses in action, records and pertinent transactions, shall be transferred 
to the Department of Housing and Urban Development. The employees of the abolished 
Council and Committee may be transferred and absorbed to the Department subject to its 
staffing pattern and the selection process as prescribed under Republic Act No. 6656 on 
the Rules on Government Reorganization. 
46.2. The Housing and Land Use Regulatory Board is hereby converted to and 
renamed as the Housing and Urban Development Adjudication Commission. The assets, 
equipment, funds, personnel, pertinent records, choses in action, and pertinent 
transactions of the Board are hereby transferred to the Commission. The Commission 
shall formulate and complete its internal organic structure and its regional offices, 
staffing, operating systems and procedures and new budget within six (6) months from 
the effectivity of this Act. 
Section 41. Transfer of Rights, Assets and Liabilities. The Department shall, by virtue 
of this Act, be subrogated to all rights and assume all the liabilities of the Housing and Urban 
Development Coordinating Council, Presidential Commission on Mass Housing and all other 
agencies of the government whose functions and powers have beerr transferred to the 
Department, and all their pertinent funds, records, property, assets, equipment and such 
personnel, as may be necessary, including unexpended portions of their appropriations, except 
the assets, pertinent funds, records, property, assets, equipment and personnel of the Housing and 
Land Use Regulatory Board. 
Section 48. Transition Period. All transfer of functions, assets, funds, personnel, 
equipment, property, transactions and personnel in affected national government agencies; and 
the formulation and implementation of the internal organic shuctures, staffing patterns, operating 
systems and revised budgets of the Department, and the Commission Act, shall be completed 
within six (6) months, during which existing personnel shall coiitiriue to assunie their posts in 
holdover capacity. The Secretary shall determine which funds, personnel, equipment, property, 
transactions and personnel will be transferred to, and assumed by, the different agencies under 
the DHUD in accordance with the functions assumed by each agency, 
Section 49. Impact Mitigation Strategy. The S ecretary shall formulate and implement 
respective impact mitigation strategies of the Department and its attached agenciesicorporations 
that will minimize adverse effects on existing personnel of the creation or modification of 
organization structures and staffing of the Department and its attached agencies, in accordance 
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with pertinent provisions of the Civil Service Code, the Administrative Code, and pertinent 
budgetary rules and regulations. Employees separated from the service as a result of the abolition 
or reorganization under the provisions of this Act shall, within one (1) month from their 
separation, receive a separation pay equivalent to one hundred fifty percent of their monthly 
basic salary for every year of service in the government; Provided that those who are qualified to 
retire under existing retirement laws shall be allowed to retire and be entitled to all benefits 
provided under said retirement laws and shall receive said benefits within ninety (90) days from 
their separation from service. 
Section 50. Formulation of 
Implementing Rules and Regulations and Other 
Implementation Mechanisms. The following implementing rules and regulations (IRR) shall be 
prepared and issued as indicated hereunder: 
50.1. The Implementing Rules and Regulations for the operationalization of the 
Housing and Urban Development Adjudication Commission and the conversion of the 
Housing and Land Use Regulatory Board into the Commission, within sixty (60) days 
upon approval of this Act. 
50.2. The hplementing Rules and Regulation for the creation of the 
Deparlment of Housing and Urban Development, the abolition of the Housing and Urban 
Development Coordinating Council and the transfer and refocusing, as the case may be, 
of the attached agencies, within sixty (60) days upon approval of this Act. 
50.3. The promulgation of the rules and regulation governing the hearing and 
disposition of cases and the other adjudication hnctions of the Commission, within six 
(6) months after the constitution of the Commission. 
50.4. The Urban Development Planning System, and the corresponding 
implementing guidelines, to b e c ompleted and operational within six ( 6) m onths upon 
approval of this Act and the updated Housing and Urban Development Framework and 
Plan completed within one (1) year upon approval of this Act. 
CHAPTER 12 
IMPLEMENTATION AUTHOFUTY AND FZTNDING 
Section 51. 
Implementing Authority The Secretary of the Department and the 
Chairperson of the Commission are hereby authorized to undertake the implementation of the 
provisions of this Act and implement the necessary organizational changes within the specified 
six (6) month transition period. 
Section 52. Authority o f A  ttnchedAgencies t o  R eorgnnize. The boards of attached 
corporations and the Chairperson and Commissioners of the Housing and Urban Development 
Adjudication Commission are hereby authorized to make the necessary changes and 
improvements in their respective internal formal structures, operating systems, staffing and 
budget configuration in order to implement the newly mandated or refocused mandates and 
functions stipulated in this Act. 
Section 53. 
Protection of Security of Tenure b y  Affected Personnel. The existing 
authority granted pursuant to the preceding two Sections shall be governed by the provisions of 
R.A. 6657andrelevant Civil Servicerules and regulationsinordertoprotectthesecurityof 
tenure of personnel who shall be affected by the reorganization. 
Section 54. Fnnding. The amount in excess of the unreleased balance of the budgets of 
the Department and the Commission, which is needed for the initial implementation of this Act, 
as m ay b e d eteimined b y  the S ecretary in the c ase o f t he D epartment o f H ousing and Urban 
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Development and the Chairperson in the case of the Housing and Urban Development 
Adjudication Commission, shall be released by the Department of Budget and Management 
within thirty (30) days upon submission by the Department and the Commission of their 
respective budget estimates. 
CHAPTER 13 
MISCELLANEOUS PROVISIONS 
Section 55. Mandatory Review of the Implementation of this Act. The Department shall 
conduct and submit a report to Congress a review of the implementation of this Act, at the end of 
the second year after the effectivity of this Act for implementation at the national government 
level, and at the end of the fifth year with respect to the devolution of functions to local 
governments. 
Section 56. Repealing Clause. 
All laws, ordinances, rules, regulations, and other 
issuances or parts thereof, which are inconsistent with the provisions of this Act, are hereby 
repealed or modified accordingly. 
Section 57. Separability Clause. Any portion or provision of this Act that may be 
declared unconstitutional shall not have the effect of nullifying other portions or provisions 
hereof as long as such remaining portions or provisions can still subsist and be given effect in 
their entirety. 
Section 58. Effectivity. This Act shall take effect fifteen (15) days after its publication in 
at least two (2) newspapers of general circulation. 
Approved, 
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