FOURTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
) 
SENATE 
i 
Introduced by Senator JUAN MIGUEL F. ZUBlRl 
EXPLANATORY NOTE 
Housing is one of the major problems the country is faced with. With 
millions of housing units backlog, the government housing agencies as well as 
the private sector seem to be helpless in meeting the demands for housing units. 
What is compounding the situation is the proliferation of colonies of 
informal settlers in many urban areas and cities, thus affecting the developmental 
programs of these areas. Even danger zones such as railroad tracks and banks 
of esteros and rivers have become sites of improvised settlements for our poor 
countrymen. 
While at present, there are housing agencies tasked to address different 
aspects of the housing sector, the government needs to have a holistic approach 
to the housing sector. It should have a department that is focus in the housing 
sector and that would coordinate and synthesize all efforts and programs of the 
different housing agencies. 
This bill seeks to answer such predicament. It provides for the creation of 
a Department of Housing and Urban Development and the rationalization of the 
housing and urban development programs of the national government. It will 
streamline the bureaucracy and the process of formulating human settlement 
programs to meet the demands of our increasing population and decreasing 
space. 
As a full-pledge department, the shelter program shall likewise be 
elevated in priority and attention given by national government to the problem of 
the housing sector. 
It is in this light that approval of this bill is earnestly sought. 


1 
2 
3 
4 
5 
9 
10 
11 
12 
13 
14 
I S  
16 
17 
18 
FOURTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES ) 
Firsf Regular Session 
) 
S. No. 2 
Introduced by Senator JUAN MIGUEL F. ZUBlRl 
AN ACT 
CREATING THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT, 
RATIONALIZING THE ORGANIZATION AND FUNCTIONS OF GOVERNMENT 
AGENCIES AND CORPORATIONS RELATED TO HOUSING AND URBAN 
DEVELOPMENT, AND FOR OTHER PURPOSES 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
CHAPTER 1 
GENERAL PROVISIONS 
Section 1. Title. - This Act shall be known as the “Omnibus Housing and Urban 
Development Act of 2007.” 
Sec. 2. Declaration of Policy. - It is hereby declared the policy of the State to: 
(a) Undertake a comprehensive and continuing program of housing and urban 
development which will make available at affordable cost, decent housing and basic 
services to the Filipino people, especially those who are underprivileged and homeless; 
(b) Adopt workable policies that will guarantee the rationalization and optimum 
utilization of land 
(c) Develop a 
sustainable and viable housing finance system that shall tap 
alternative, including non-traditional sources of funds, for the government’s housing 
program; 
(d) Rationalize and strengthen the urban development and shelter delivery system of 
the government by enhancing local autonomy and decentralization and provide local 
government units more power, authority, responsibility and resources; and 
(e) Encourage more effective peoples’ participation by institutionalizing their 
involvement at all levels of the urban planning and development process. 


1 
2 
3 
4 
5 
6 
I 
8 
9 
I O  
11 
12 
13 
14 
15 
I6 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
29 
30 
31 
32 
33 
34 
35 
Sec. 3. Definition of Terms. - For purposes of this Act, the terms or words and 
phrases used shall mean or be understood as follows: 
(a) " Abot-Kaya Pabahay Fund" - refers to the fund established under Republic 
Act No. 6846, otherwise known as "The Social Housing Support Fund Act", as 
amended by republic Act No. 7835, otherwise known as "The Comprehensive 
and Integrated Shelter Financing Act of 1994". The fund shall be used 
exclusively to enhance the affordability of low-cost housing by low-income 
families through its four (4) components, namely: amortization support, 
development financing, cash flow guaranty, interest subsidy and liquidity 
support. 
(b) Agricultural Land Conversion - refers to the undertaking of any activity that 
will modify or alter the physical characteristics of agricultural lands to render 
them suitable for non-agricultural purposes with an approved order of 
conversion from the Secretary of the Department of Agrarian Reform (DAR). 
(c) CISFA - refers to Republic Act No. 7835. 
(d) "Community Mortgage Program" - refers to the mortgage-financing program 
of the National Home Mortgage Finance Corporation (NHMFC), which assists 
legally organized associations of underprivileged and homeless citizens to 
purchase and develop a tract of land under the concept of community 
ownership. 
(e) "Formal sector" - refers to members of the Government Service Insurance 
System (GSIS), Home Development Mutual Fund (HDMF) and the Social 
Service Security System (SSS). 
(f) "Homeless and underprivileged" - refers to the beneficiaries of Republic Act 
No. 7279, otherwise known as the "Urban Development and Housing Act 
(UDHA), and to individuals or families whose income or combined household 
income falls within the poverty threshold as defined by the National Economic 
and Development Authority (NEDA), who do not own housing facilities, who 
live in makeshift dwelling units, and do not enjoy security of tenure. 
(9) "Informal sector" - refers to non-members of the GSIS, HDMF, and the SSS. 
(h) "New town" - refers to any large-scale planned development, which includes 
housing, work places, and related facilities within a more or less self- 
contained environment. 
(i) "Secondary mortgage market" - refers to the system, which entails purchase, 
acquisition, discounting or refinancing of loan and mortgage packages or 
n 
L 


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


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


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


I 
2 
7 
8 
9 
I O  
I1 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
29 
30 
31 
32 
33 
34 
(m) Call on other agencies or instrumentalities of the government and private entities 
for cooperation and assistance in the performance of its functions; 
(n) Monitor compliance and provide policy directions, standards and technical 
assistance to LGUs in the preparation of their respective land use plans and zoning 
ordinances subject to the over-all land use plan of the regional development councils 
and the NEDA; 
(0) Undertake a rational, balanced, orderly and efficient devefopment of new 
settlements and the redevelopment of existing urban communities that indicate 
potentials for accelerated growth. Such activities shall assure the dwellers thereon of 
decent and affordable housing, job and livelihood opportunities, efficient mass transit, 
public safety, health care, educational opportunities and clean environment; 
(p) Conduct continuing research and development of innovative and indigenous 
technologies that will enhance housing affordability; 
(9) Ensure consumers' education and protection and establish and administer 
mechanisms such as the development, maintenance, updating and upgrading of an 
industry information system and data bank which shall include a master list of 
beneficiaries: 
(r) Establish a mechanism to identify, update and validate and determine full 
eligibility of target beneficiaries for socialized housing programs and projects in order to 
maximize government resources and avoid double availment of such programs and 
projects; 
(s) Discharge all responsibilities of government that may arise from agreements and 
other commitments on housing, land use and urban development to which it is a 
signatory, including the determination of forms of assistance for housing, land use and 
urban development to be extended through multilateral or bilateral assistance program; 
(t) Determine, fix and collect reasonable amounts to be charged as administrative 
fees, fines and penalties; as well as issue motu propio, after the conduct of appropriate 
investigation, notices of violation, cease and desist and/or closure and demolition 
orders, ejectment and summary abatement orders, necessary for the effective 
implementation of all laws, rules and regulations, and other legal issuances enforced by 
the Department; 
(u) Determine, fix and collect reasonable amounts to be charged as administrative 
fess, fines and penalties on any natural or juridical person who practice real estate 
services without any license; and 
6 


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


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


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


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


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


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


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


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


5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
29 
30 
31 
32 
33 
(f) Coordinate with the LGUs with regard to their local urban development, land use 
and shelter plans, and provide the necessary technical assistance on devolved powers 
related to housing and urban planning as mandated by the Local Government Code and 
other related laws; 
(g) Administer the registration of homeowners' associations and condominium 
corporations; 
(h) Undertake the issuance of certificates of registration and licenses to sell for 
condominium and subdivision projects, and collect fees for the purpose; 
(i) Advise and coordinate the plans and programs of the Regional and Field Offices 
of the attached agencies and corporations; and 
(j) Perform such other functions as may be provided for by law and by the 
Secretary. 
Sec. 16. Functions of Field Directors and Offices. - A Field Director shall 
head a Field Office and shall be accountable to the Regional Director. The Field Officer 
shall directly administer Department programs in hidher jurisdictional area and shall 
ensure their proper implementation. 
The Field Director shall maximize hidher detail in the areas under jurisdiction by 
closely coordinating with the local planning officer, the pertinent sanggunian committee, 
the Urban Poor Affairs Office (UPAO), and the local housing boards, if any, for program 
monitoring, implementation and enforcement. 
Sec. 17. Relationship Among the Regional and Field Offices of 
the 
Department, its Attached Agencies and Corporations, and the LGUs. - The 
relationship among the Regional and Field Offices of the Department, its attached 
agencies and corporations, and the LGUs, shall be purely coordinative. 
CHAPTER 111 
ATTACHED AGENCIES AND CORPORATIONS 
Sec. 18. Attached Corporations and Agencies and their Functions. - Any 
provision of law or their respective charters to the contrary notwithstanding, the 
following corporations and agencies are hereby attached to the Department for general 
supervision, and policy and program coordination. They shall continue to operate and 
function in accordance with their respective charters, laws or orders creating them 
insofar as they are not inconsistent with this Act: 
(a) Home Guaranty Corporation (HGC); 
15 


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


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


8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
29 
30 
31 
32 
33 
34 
35 
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 38 of this Act or are sooner removed for cause. 
Upon expiration of their terms, they shall be entitled to retire under laws, if they 
are so qualified to retire thereunder, or to receive a compulsory retirement gratuity 
equivalent to the total of two (2) times their basic salary as a commissioner, for every 
year of service, whichever is higher. 
The Commission may sit en banc or in three (3) divisions, each composed of 
three (3) members. 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 branches, hearing and disposition of motions for reconsideration 
and formulating policies affecting its administration and operations. The Commission 
shall exercise its adjudicatory and all other powers, functions and duties through its 
divisions: 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. 
The concurrence of two (2) commissioners of a division shall be necessary for 
the pronouncement of 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 chairman 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 herein. 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 parties. 
The Commission when sitting en banc shall be assisted by the executive clerk 
and, when acting through its divisions, by the division executive clerks in the 
performance of such similar or equivalent functions and duties as are discharged by the 
Clerk of Court and Deputy Clerks of Court of the Court of Appeals. 
Sec. 21. Term and Compensation. - The members of the HUDAC shall be 
appointed for a term of six (6) years without reappointment. Appointment to any 
vacancy shall be only for the unexpired term of the predecessor and shall receive the 
18 


1 
2 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
29 
30 
31 
32 
33 
34 
same salaries and emoluments of a Commissioner of the National Labor Relations 
Commission (NLRC). 
Sec. 22. Power and Authority of the Commission. - In the exercise of its 
judicial functions, the HUDAC shall be governed by the principles of justice, equity and 
fairness. It shall act as an impartial and independent tribunal and shall render judgment 
in accordance with law, evidence and merit of the case. In particular, the HUDAC shall 
have the following powers and authorities: 
(a) 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 of this Act: 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 including conducting clarificatory hearing, if 
necessary, in accordance with justice, equity and merit; 
(b) Exercise exclusive appellate jurisdiction over all cases decided by the housing 
and urban development arbiters. However, the Secretary may assume jurisdiction over 
any complaint or case and decide the same or certify such case for decision by the 
Commission if, in his opinion, he believes that the controversy involves massive fraud or 
unsound business practices or critical socioeconomic or environmental considerations 
that has serious potential impact on the interests of the sector of the general welfare; 
(c) Administer oaths, summon the 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 under this Act; 
(d) Issue cease and desist orders, 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; 
(e) Hold any person in contempt, directly or indirectly, and impose appropriate 
penalties therefor; 
(f) Impose administrative fines and/or penalties for violation of this Act, Republic Act 
No. 7279, and other laws implemented by the HUDAC, including pertinent rules and 
regulations, orders, decisions and rulings: Provided, That the maximum imposable fines 
or penalties shall not exceed Five hundred thousand pesos (0500,000); 
19 


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


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


1 
2 
3 
4 
5 
6 
7 
8 
9 
I0 
I 1  
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
29 
30 
31 
32 
(1.5) Limitations on the disposition of land for socialized housing under Section 14 and 
pertinent implementing rules and regulations; 
(1.6) Registration of socialized housing beneficiaries under Section 17 and pertinent 
implementing rules and regulations; and 
(1.7) Balanced housing development under Section 18 and pertinent implementing 
rules and regulations. 
(2) 
All ejectment cases where the party defendants are underprivileged and 
homeless citizens as defined by the UDHA (Republic Act No. 7279) or a duly registered 
association whose members are underprivileged and homeless citizens as defined by 
the UDHA (Republic Act No. 7279). 
Sec. 24. Criminal Prosecution - Criminal prosecution for violation of housing 
laws and regulations shall be instituted before regular courts with appropriate 
jurisdiction. 
Sec. 25. Housing and Urban Development Arbiters, Qualifications and 
Compensation. - The Secretary upon recommendation of the chairman of the 
Commission, shall appoint housing and urban development arbiter as the needs of the 
service may require for each administrative region. No person shall be appointed 
housing and urban development arbiters unless he has been a member of the 
Philippine Bar for at least five (5) years with at least (2) years experience or exposure in 
the field of housing, real estate andlor land use planning and zoning. 
The Housing and Urban Development Arbiters shall receive an annual salary and 
be entitled to the allowances and benefits equivalent to the salaries, allowances and 
benefits of labor arbiters of the National Labor Relations Commission. 
Sec. 26. Sheriff. - 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 of all writs, summons and orders and other process of the Commission. 
Sec. 27. Appearances. - A lawyer appearing for a party is presumed to be 
properly authorized for that purpose. A non lawyer may appear before the HUDAC or 
the Housing and Urban Development Arbiter only if: (a) helshe represents 
himselflherself as party to the case; or (b) helshe represents an organization: Provided, 
33 
That he/she shall be made to present written proof that helshe is properly authorized. 
22 


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


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


5 
6 
7 
8 
9 
10 
11 
I2 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
29 
30 
31 
32 
33 
34 
35 
36 
relocation, sites and services program, urban renewal, rental housing, land banking and 
livelihood assistance programs in resettlement areas. The programs and projects that 
will be funded under sa’id fund and the implementing bureau or agency shall be 
determined by the Department. 
CHAPTER VI1 
TRANSITORY PROVISIONS 
Sec. 34. Transfer of Powers and Functions. - Within six (6) months after the 
approval of this Act, the powers and functions of the Housing and Urban Development 
Coordinating Council (HUDCC) shall be transferred to the Department. The foregoing 
transfer of powers and functions shall include all applicable funds and appropriations, 
records, equipment, property and personnel as may be necessary. The same shall 
apply to agencies and government units which have not been abolished but whose 
functions have been transferred to the Department except the assets, pertinent funds, 
records, property, equipment and personnel of the HLURB needed for adjudicatory and 
related support functions. All purely governmental functions being performed by the 
HLURB shall be transferred to the Department. Likewise, all existing powers and 
functions of these agencies in their charters which are inherent and incidental to their 
corporate mandates shall be retained with the concerned agencies. 
All ex officio functions of the Chairman of the HUDCC are likewise transferred to 
the Secretary. 
. 
See. 35. Transfer of Rights, Assets and LiabiMies. -The Department shall, by 
virtue of this Act, be subrogated to all rights and assume all the liabilities of the HUDCC 
and all other agencies, or government units whose functions and powers have been 
transferred to the Department, and all their funds, records, property, assets, equipment 
and such personnel, as may be necessary, including unexpended appropriations andlor 
allocations except assets, pertinent funds, records, property, equipment and personnel 
of the HLURB needed for adjudicatory and related support functions. All contracts and 
liabilities of said offices are hereby transferred to and assumed by the Department and 
shall be acted upon in accordance with the Auditing Code and other pertinent laws, 
rules and regulations: Provided, That existing officers and employees of said 
agencieslcorporations shall assume their posts in holdover capacity until their new 
appointments are issued. 
Sec. 36. Rationalization or Transfer of Functions of Attached or Related 
Agencies. - The land use planning and enforcement functions including monitoring 
and issuance of licenses and permits of the HLURB as provided for under Sections 5a, 
5b, 5c, 5d, 59 and 5h of Executive Order No. 648 and similar provisions in Executive 
25 


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


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


1 
2 
3 
4 
5 
6 
7 
8 
9 
I O  
I 1  
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
29 
30 
31 
32 
33 
34 
35 
36 
Sec. 42. Identification and Designation of Lands for Housing and Urban 
Development. - The Department of Housing and Urban Development (DHUD), the 
Department of Agrarian Reform (DAR) and the Department of Agriculture (DA) shall, 
within ninety (90) days from effectivity of this Act, jointly identify agricultural lands which 
under Republic Act No. 6657, otherwise known as the Comprehensive Agrarian Reform 
Law, and other existing laws, rules and regulations are already exempted from 
conversion requirements and which can be devoted for housing and urban development 
purposes: Provided, That the list shall exclude lands that are declared as non- 
negotiable for 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 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 the Agriculture and Fisheries 
Modernization Act (AFMA) and other existing laws: Provided, fina//y, That in the case of 
lands exempted from conversion and those whose application for conversion has been 
approved by the DAR, the applicant shall be allowed to proceed with any horizontal or 
vertical development without need for any prior clearance or approval from the DAR or 
the DA consistent with the terms of the approved order of conversion. 
Sec. 43. Creation of an Advisory Committee. - The Department, within thirty 
(30) days from the effectivity of this Act, an advisory committee consisting of key 
representatives from the urban poor organizations and other marginalized groups, 
nongovernment organizations, academe, private sector, local government, the 
Presidential Commission for the Urban Poor (PCUP), and national government 
agencies shall be created to provide a forum for broader sector participation and 
dialogue on key housing and urban development issues and policies. The 
representatives of the urban poor and other marginalized groups shall be selected by 
their respective National Anti-Poverty Commission (NAPC) sectoral councils. 
Sec. 44. Disclosure and Divestment of Financial Interest. - Before 
assumption into office, the Secretary, the Undersecretaries and the Assistant 
Secretaries shall submit to the CSC a list of all companies, partnerships or business 
enterprises, including non-profit organizations, in which they or any immediate member 
of their families within the second degree of consanguinity or affinity, have any form of 
financial interest or employment relationship, including consultancy: Provided, however, 
That all other forms of employment relationship held by the heads of the Offices of the 
Department shall be immediately terminated upon assumption into office. 
28 


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


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