SEVENTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
n f  i ! u ’ w ' i ' f v e t n r p
•17 
MAR 14 
P 6  '*42
I aSV
RECtlVLDliV. 
/  l/
SENATE
SENATE BILL NO. 
1 RSIR 
(In substitution of Senate Bill Nos. 331, 936 and 1216)
Prepared and submitted jointly by the Committees on Urban 
Planning, Housing and Resettlement; and Local Government with 
Senators Ejercito, Hontiveros, Poe and Angara as authors thereof
' AN ACT
ESTABLISHING ON-SITE, IN-CITY, OR NEAR-CITY STRATEGY FOR 
INFORMAL SETTLER FAMILIES IN CONSIDERATION WITH A 
PEOPLE'S PLAN AND MANDATING LOCAL GOVERNMENT UNITS TO 
PROVIDE OTHER BASIC SERVICES AND LIVELIHOOD COMPONENTS 
IN RESETTLEMENT SITES, AMENDING FOR THE PURPOSE REPUBLIC 
ACT NO. 7279, AS AMENDED, OTHERWISE KNOWN AS THE "URBAN 
DEVELOPMENT AND HOUSING ACT OF 1992''
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled:
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SECTION 1. Short Title. - This Act shall be known as the "On-site, In-
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City or Near-City Resettlement Program Act".
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SEC. 2. Amendatory Provisions. - For purposes of this Act, the
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following provisions of Republic Act No. 7279, otherwise known as the "Urban
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Development and Housing Act of 1992", are hereby amended as follows:
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(a) 
Section 3 of Republic Act No. 7279 is hereby amended to read as
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follows:
SEC. 3. Definition of Terms. - For purposes of this Act:
X X X
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"(w) X X x; [and]
"(x) 'Zonal Improvement Program or ZIP' refers to the program of 
the National Housing Authority of upgrading and improving 
INFORMAL SETTLEMENTS within the cities and municipahties of 
Metro Manila pursuant to existing statutes and pertinent executive 
issuances[.];
"(Y) 'ADEQUATE AND GENUINE CONSULTATION' REFERS 
TO THE STANDARD OF CONSULTATION WITH THE AFFECTED 
INFORMAL SETTLER FAMILIES (ISFs) WHICH SHALL REQUIRE 
THE FOLLOWING:
"(1) EFFECTIVE DISSEMINATION AND FULL ACCESS TO 
RELEVANT INFORMATION AND DOCUMENTS INCLUDING BUT 
NOT LIMITED TO LAND RECORDS, HOUSING BUDGETS, THE 
PROPOSED PLAN OR PROJECT, ALTERNATIVE HOUSING 
OPTIONS, AND COMPREHENSIVE RESETTLEMENT PLANS;
"(2) REASONABLE TIME FOR THE PUBLIC TO REVIEW, 
COMMENT AND OBJECT TO THE PROPOSED PLAN OR 
PROJECT;
"(3) PROVISION BY THE GOVERNMENT OR NON­
GOVERNMENT ORGANIZATIONS OF LEGAL, TECHNICAL, AND 
OTHER ADVICE TO AFFECTED PERSONS ON THEIR RIGHTS 
AND OPTIONS;
"(4) PUBLIC HEARINGS THAT PROVIDE AFFECTED ISFs 
AND 
THEIR 
ADVOCATES 
WITH 
OPPORTUNITIES 
TO
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CHALLENGE 
THE 
EVICTION 
DECISION 
OR 
PRESENT 
ALTERNATIVE PROPOSALS AND TO ARTICULATE THEIR 
DEMANDS AND DEVELOPMENT PRIORITIES; AND
"(Z) 'CIVIL SOCIETY ORGANIZATIONS OR CSOs' REFERS 
TO NON-GOVERNMENTAL ORGANIZATIONS (NGOs), PEOPLE'S 
ORGANIZATIONS (POs), COOPERATIVES, TRADE UNIONS, 
PROFESSIONAL 
ASSOCIATIONS, 
FAITH-BASED
ORGANIZATIONS, MEDIA GROUPS, INDIGENOUS PEOPLES 
MOVEMENTS, FOUNDATIONS AND OTHER CITIZEN'S GROUPS 
FORMED 
PRIMARILY 
FOR 
SOCIAL 
AND 
ECONOMIC 
DEVELOPMENT TO PLAN AND MONITOR GOVERNMENT 
PROGRAMS 
AND 
PROJECTS, 
ENGAGE 
IN 
POLICY 
DISCUSSIONS, 
AND 
ACTIVELY 
PARTICIPATE 
IN 
COLLABORATIVE ACTIVITIES WITH THE GOVERNMENT;
"(AA) 
'IN-CITY 
RESETTLEMENT' 
REFERS 
TO 
A 
RELOCATION SITE WITHIN THE JURISDICTION OF THE LOCAL 
GOVERNMENT UNIT (LGU) WHERE THE AFFECTED ISFs ARE 
LIVING;
"(BB) 'INFORMAL SETTLEMENTS' REFERS TO:
"(1) RESIDENTIAL AREAS WHERE HOUSING UNITS 
HAVE BEEN CONSTRUCTED BY SETTLERS ON LAND 
WHICH THEY OCCUPY ILLEGALLY; OR
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"(2) UNPLANNED SETTLEMENTS AND AREAS WHERE 
HOUSING IS NOT IN COMPLIANCE WITH EXISTING 
PLANNING AND BUILDING REGULATIONS;
"(CC) 
INFORMAL 
SETTLER 
FAMILIES 
(ISFs) 
INDIVIDUALS OR HOUSEHOLDS LIVING UNDER ANY OF THE 
FOLLOWING CONDITIONS:
1. A LOT/DWELLING UNIT WITHOUT CONSENT OF THE 
PROPERTY OWNER;
2. DANGER AREAS;
3. AREAS 
FOR 
GOVERNMENT 
INFRASTRUCTURE 
PROJECTS;
4. PROTECTED/FOREST 
AREAS 
(EXCEPT 
FOR 
INDIGENOUS PEOPLES);
5. AREAS FOR PRIORITY DEVELOPMENT AS DECLARED 
UNDER PROCLAMATION NO. 1967, SERIES OF 1980, IF 
APPLICABLE; AND
6. OTHER GOVERNMENT/PUBLIC LANDS OR FACILITIES 
NOT INTENDED FOR HUMAN HABITATION.
"(DD) 
'NEAR-CITY 
RESETTLEMENT' 
REFERS 
TO 
A 
RELOCATION SITE WITHIN THE JURISDICTION OF A LOCAL 
GOVERNMENT UNIT ADJACENT TO THE LOCAL GOVERNMENT 
UNIT 
HAVING 
JURISDICTION 
OVER 
THE 
PRESENT 
SETTLEMENTS OF THE INFORMAL SETTLER FAMILIES.
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"(EE) 'NON-GOVERNMENT ORGANIZATION OR NGO 
REFERS TO A DULY REGISTERED NON-STOCK, NON-PROFIT 
ORGANIZATION FOCUSING ON THE UPLIFTMENT OF THE 
BASIC OR DISADVANTAGED SECTORS OF SOCIETY BY 
PROVIDING 
ADVOCACY, 
TRAINING, 
COMMUNITY 
ORGANIZING, RESEARCH, ACCESS TO RESOURCES, AND 
OTHER SIMILAR ACTIVITIES, AS DEFINED UNDER REPUBLIC 
ACT NO. 8425, OTHERWISE KNOWN AS THE 'SOCIAL REFORM 
AND POVERTY ALLEVIATION ACT' AND ORGANIZED AND 
OPERATED 
EXCLUSIVELY 
FOR 
SCIENTIFIC, 
RESEARCH, 
EDUCATIONAL, CHARACTER-BUILDING AND YOUTH AND 
SPORTS 
DEVELOPMENT, 
HEALTH, 
SOCIAL 
WELFARE, 
CULTURAL OR CHARITABLE PURPOSES, OR A COMBINATION 
THEREOF, AND NO PART OF THE NET INCOME OF WHICH 
INURES TO THE BENEFIT OF ANY PRIVATE INDIVIDUAL 
PURSUANT TO SECTION 34 (H) (2) (C) (1) OF REPUBLIC ACT NO. 
8424, AS AMENDED, OTHERWISE KNOWN AS THE TAX REFORM 
ACT OF 1997';
"(FF) 
OFF-CITY 
RESETTLEMENT 
REFERS 
TO 
A 
RELOCATION SITE DEVELOPED OUTSIDE AND NOT ADJACENT 
TO THE LOCAL GOVERNMENT UNIT WHERE THE AFFECTED 
INFORMAL SETTLER FAMILIES HAVE THEIR SETTLEMENTS.
"(GG) 'PEOPLE'S PLAN' REFERS THE PLAN FORMULATED
AND INITIATED BY THE BENEFICIARY-ASSOCIATION, WITH 
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THE ASSISTANCE OF CONCERNED GOVERNMENT AGENCIES; 
AND
"(HH) 'SOCIAL PREPARATION' REFERS TO THE PROCESS 
OF 
ESTABLISHING 
SOCIAL, 
ORGANIZATIONAL, 
AND 
INSTITUTIONAL NORMS AND MECHANISMS. SUCH NORMS 
AND MECHANISMS WILL: (1) ENABLE THE SETTLERS TO COPE 
WITH CHANGES; AND (2) IN PARTNERSHIP WITH CONCERNED 
INSTITUTIONS 
AND 
STAKEHOLDERS, 
ENCOURAGE 
THE 
SETTLERS NOT ONLY TO WORK AMONG THEMSELVES FOR 
THE PURPOSE OF DRAWING UP AND UNDERTAKING THEIR 
HOUSING 
RESETTLEMENT 
PROPOSALS 
BUT 
ALSO 
TO 
ACTIVELY AND MEANINGFULLY PARTICIPATE IN HOUSING 
RESETTLEMENT PROJECTS UNDERTAKEN IN THEIR BEHALF, 
THUS RESOLVING COLLECTIVE ACTION PROBLEMS AMONG 
COMMUNITY MEMBERS AND COORDINATION PROBLEMS 
WITH GOVERNMENT AND OTHER ENTITIES.";
(b) Section 21 of the same Act is hereby amended to read as follows: 
"SEC. 21. Basis Services - Socialized housing or resettlement areas 
shall 
be 
provided 
by 
the 
local 
government 
unit, 
IN 
COORDINATION WITH [or] the [National Housing Authority] 
HOUSING AND URBAN DEVELOPMENT COORDINATING 
COUNCIL (HUDCC) AND ITS ATTACHED AGENCIES, OTHER 
RELEVANT GOVERNMENT AGENCIES, AND [in cooperation
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with the] private developers [and concerned agencies] with the 
following basic services and facilities:
a) Potable AND TREATED water SUPPLY;
b) Power and electricity and an adequate power distribution system;
c) SANITATION 
FACILITIES 
INCLUDING 
[S]sewerage 
[facilities], MATERIAL RECOVERY FACILITEIS, GARBAGE 
COLLECTION and cin efficient and adequate soHd waste disposal 
system;
d) Access to primary roads and transportation facihties.
"The provision of other basic services and facihties such as health, 
education, communications, security, recreation, relief welfare, AND 
LIVELIHOOD COMPONENTS shall be planned and shall be given 
priority for implementation by the local government unit and 
concerned agencies in cooperation with the private sector and the 
beneficiaries 
themselves. 
THE 
CONCERNED 
LOCAL 
GOVERNMENT UNITS AND NATIONAL GOVERNMENT 
AGENCIES SHALL SIGN A MEMORANDUM OF AGREEMENT 
(MOA) 
WHICH 
SHALL 
SPECIFY 
THEIR 
DUTIES, 
RESPONSIBILITIES, 
AND 
TIMETABLES 
FOR 
THEIR 
COMPLETION. COPIES OF THE MOA SHALL BE PUBLISHED 
IN THE WEBSITE OF THE LEAD LOCAL GOVERNMENT UNIT 
AND GIVEN TO THE AFFECTED ISFS AT LEAST THIRTY (30) 
DAYS PRIOR TO THE START OF THE RESETTLEMENT 
PROCESS; 
PRVIDED, 
THAT 
THE 
RECIPIENT 
LOCAL
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GOVERNMENT UNITS IN CASES OF NEAR CITY OR OFF-CITY 
RESETTLEMENT SHALL ALSO BE CONSULTED AND SHALL 
PARTICIPATE IN THE PROVISION OF BASIC SERVICES AS 
REQUIRED UNDER THIS PROVISION."
The local government unit, in coordination with the concerned 
national agencies, shall ensure that these basic services are provided 
at the most cost efficient rates, and shall set as mechanism to 
coordinate operationally the thrusts, objectives and activities of other 
government agencies concerned with providing basic services to 
housing projects. THE HUDCC AND THE BUREAU OF LOCAL 
GOVERNMENT 
FINANCE 
OF 
THE 
DEPARTMENT 
OF 
FINANCE SHALL JOINTLY WORK ON THE COST-SHARING 
MECHANISM NECESSARY TO FULLY IMPLEMENT THE 
PROVISION OF SUCH OTHER BASIC SERVICES AND 
FACILITIES."
(c) Section 23 of the same Act is hereby amended to read as follows; 
"SEC. 23. Participation of PROGRAM Beneficiaries OR AFFECTED 
ISFs, FORMATION OF BENEFICIARY-ASSOCIATION, AND 
FORMULATION AND IMPLEMENTATION OF A PEOPLE'S 
PLAN. - The LGUs, in coordination with the PCUP and concerned 
government agencies, shall afford Program beneficiaries OR 
AFFECTED ISFs or their duly designated representatives an 
opportunity to be heard and to participate in the decision-making 
process over matters involving the protection and promotion of their
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legitimate collective interests which shall include appropriate 
documentation and feedback mechanisms. They shall also be 
encouraged to organize themselves [and imdertake self-help 
cooperative housing and other livelihood activities] INTO AN 
ASSOCIATION FOR ACCREDITATION AS BENEFICIARIES OR 
AWARDEES 
OF 
OWNERSHIP 
RIGHTS 
UNDER 
THE 
RESETTLEMENT 
PROGRAM, 
COMMUNITY 
MORTGAGE 
PROGRAM, LAND TENURE ASSISTANCE PROGRAM, AND 
OTHER 
SIMILAR 
PROGRAMS 
IN 
RELATION 
TO 
A 
SOCIALIZED 
HOUSING 
PROJECT 
ACTUALLY 
BEING 
IMPLEMENTED BY THE NATIONAL GOVERNMENT OR BY 
THE LOCAL GOVERNMENT UNITS. They shall assist the 
government in preventing the incursions of professional squatters 
and members of squatting syndicates into their communities.
"In instances when the affected beneficiaries have failed to 
organize themselves or form an [alhance] ASSOCIATION within a 
reasonable period prior to the implementation of the program or 
projects affecting them, consultation betv\een the implementing 
agency and the affected beneficiaries shall be conducted with the 
assistance of the PGUP and the concerned NGO UNTIL AN 
ASSOCIATION IS FORMED IN PLACE.
'THE ASSOCIATION, IN COORDINATION WITH THE 
PCUP WITH OR WITHOUT THE SUPPORT OF CSOs, SHALL 
FORMULATE A 'PEOPLE'S PLAN' THROUGH A PROCESS OF
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CONSULTATION 
WHICH 
SHALL 
CONTAIN 
A 
SITE 
DEVELOPMENT 
PLAN, 
INCLUDING 
NON-PHYSICAL 
DEVELOPMENT 
COMPONENTS 
SUCH 
AS 
SELF-HELP 
HOUSING 
COOPERATIVE, 
LIVELIHOOD, 
SELF-HELP 
DEVELOPMENT, AND CAPABILITY-BUILDING TRAININGS.
'THE ASSOCIATION, WITH THE ASSISTANCE OF CSOs 
AND GOVERNMENT AGENCIES INCLUDING THE NATIONAL 
ANTI-POVERTY COMMISSION (NAPC), PCUP, NATIONAL 
HOUSING AUTHORITY (NHA), CITY OR MUNICIPAL SOCIAL 
WELFARE AND DEVELOPMENT OFFICE, SOCIAL HOUSING 
FINANCE CORPORATION (SHFC), AND OTHER RELEVANT 
GOVERNMENT AGENCIES, SHALL AGREE ON, DEVELOP, 
AND IMPLEMENT THE PEOPLE'S PLAN.
"IN ACCORDANCE WITH THE PROTECTION GUIDELINES 
PROVIDED 
UNDER 
SECTION 
28 
OF 
THIS 
ACT, 
A 
RELOCATION ACTION PLAN SHALL BE AN INDISPENSABLE 
COMPONENT OF THE PEOPLE'S PLAN. THE RELOCATION 
ACTION 
PLAN 
SHALL 
INCLUDE 
THE 
FOLLOWING 
OBJECTIVES:
"(A) 
ENSURE 
SAFE, 
AFFORDABLE, 
DECENT, 
AND 
HUMANE CONDITION OF RELOCATION, INCORPORATING 
THEREIN 
APPROPRIATE 
DISASTER 
RISK 
REDUCTION 
MANAGEMENT AND CLIMATE CHANGE ADAPTATION 
STANDARDS;
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"(B) PROVIDE ADEQUATE SOCIAL PREPARATION; AND
"(C) PREVENT FORCED EVICTION: PROVIDED, 
THAT PRIMARY CONSIDERATION SHALL BE GIVEN TO THE 
HOUSING 
FINANCIAL 
SCHEME 
SUGGESTED 
IN 
THE 
PEOPLE'S PLAN.";
(d) Section 26 of the same Act is hereby amended to read as follows: 
"SEC 26. Urban Renewal and Resettlement. - [This] URBAN 
RENEWAL AND RESETTLEMENT shall include the rehabihtation 
and development of informal settlements and the resettlement of 
Program beneficiaries in accordance with the provisions of this Act 
On-site development shall be implemented [whenever possible] 
AFTER ADEQUATE AND GENUINE CONSULTATION WITH 
THE AFFECTED ISFs, AND IN ACCORDANCE WITH THE 
PEOPLE'S PLAN FORMULATED PURSUANT TO SECTION 23 
OF THIS ACT, in order to ensure minimum movement of informal 
settler famihes.
"[The] WHERE DEMOLITION OR EVICTION IS ALLOWED 
IN THE AREA OCCUPIED BY THE PROGRAM BENEFICIARIES 
PURSUANT TO SECTION 28 OF THIS ACT, AND ON-SITE 
RESETTLEMENT CANNOT BE UNDERTAKEN BY REASON 
THEREOF, THE IN-CITY resettlement of the beneficiaries of the 
Program from their existing places of occupancy shall be undertaken 
only [when on-site development is not feasible and] after comphance
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with the procedures laid down in [Section 28 of this Act] THE SAME 
SECTION OF THIS ACT AND IN CONSIDERATION WITH THE 
PREFERENCE OF THE AFFECTED ISFs AS CONTAINED IN THE 
PEOPLE'S PLAN.
"SHOULD IN-CITY RESETTLEMENT NOT BE FEASIBLE, 
NEAR-CITY RESETTLEMENT SHALL BE CONSIDERED. OFF- 
CITY RESETTLEMENT SHALL BE THE LAST RESORT AND 
MUST SATISFY THE REQUIREMENTS OF ADEQUATE AND 
GENUINE CONSULTATION PRIOR TO RELOCATION."
"ACQUISITION 
OF 
LANDS 
TO 
BE 
USED 
FOR 
RESETTLEMENT PROGRAMS SHALL COMPLY WITH THE 
PROVISION OF SEC. 9 OF THIS ACT"; and
(e) Section 29 of the same Act is hereby amended to read as follows:
"SEC. 29. Resettlement. - Within two (2) years from the effectivity 
of this Act, the local government units, in coordination with the 
NHA, shall implement the relocation and resettlement of persons 
living in danger areas such as esteros, railroad tracks, garbage 
dtunps, riverbanks, shorelines, waterwrays, and in other public places 
such as sidewalks, roads, parks, playgrounds AND THOSE 
AFFECTED BY GOVERNMENT INFRASTRUCTURE PROJECTS. 
The LGU, in coordination with the CONCERNED GOVERNMENT 
AGENCIES AND AFFECTED LGUs IN CASES OF NEAR-CITY 
AND OFF-CITY RESETTLEMENT, shall provide relocation or 
resettlement sites with basic services and facilities and access to
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employment and livelihood opportunities sufficient to meet the basic 
needs of the affected famiUes.
"ALL LOCAL GOVERNMENT UNITS SHALL IDENTIFY 
POTENTIAL 
RESETTLEMENT 
AREAS 
IN 
THEIR 
COMPREHENSICE LAND USE PLANS (CLUPs)."
"IN ADDITION TO THE FUNDING SOURCES PROVIDED 
UNDER SECTION 42 OF THIS ACT, THE ALLOCATION FOR 
THE BASIC SERVICES AND FACILITIES MAY BE TAKEN BY 
THE 
LGU 
IMPLEMENTING 
THE 
RELOCATION 
OR 
RESETTLEMENT FROM THE TWENTY PERCENT (20%) OF THE 
INTERNAL REVENUE ALLOTMENT APPROPRIATED FOR 
DEVELOPMENT PROJECTS AS MANDATED UNDER SECTION 
287 OF REPUBLIC ACT NO. 7160, OTHERWISE KNOWN AS THE 
"LOCAL GOVERNMENT CODE OF 1991'."
SEC. 3. Implementing Rules and Regulations. - The principles, 
policies and provisions of this Act shall be incorporated in the 
National Shelter Program.
The HUDCC and the Department of the Interior and Local 
Government (DILG), in consultation and coordination with 
appropriate government agencies, CSOs, NGOs, representatives from 
the private sector, and ISFs, shall promulgate a new set of 
implementing rules and regulations within sixty (60) days from the 
effectivity of this Act. The implementing rules and regulations shall 
be consistent with the provisions of this Act, particularly with the
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amendments, parameters, and standards introduced to Sections 23, 
26, and 29 of the "Urban Development and Housing Act of 1992", 
and shall include the follomng:
(a) A People's Plan template to guide ISFs in the development of 
their own People's Plan: Provided, That such template shall be a 
complete pro forma People's Plan: Provided, however, That such a 
template shall be used to benchmark the minimum standards in a 
People's Plan; and
(b) A guide to effective implementation of the People's Plan, 
including details on the necessity of the issuance of internal 
memoranda by concerned agencies.
The implementing rules and regulations issued pursuant to this 
section shall take effect thirty (30) days after its pubhcation in two (2) 
national newspapers of general circulation.
SEC 4. CONGRESSIONAL OVERSIGHT COMMITTEE - 
There is hereby created a Congressional Oversight Committee to 
oversee, monitor, and evaluate the implementation of this Act.
The Oversight Committee shall be composed of five (5) members 
from the Senate which shall include the Chairpersons of the Senate 
Committee on Urban Planning, Housing and Resettlement, and five 
(5) members from the House of Representatives, which shall include 
the House of Representatives Committee on Housing and Urban 
Development. The four (4) other members from each Chamber shall 
be designated by the Senate President and the Speaker of the House
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of Representatives, respectively. The Minority shall have at least one 
(1) representative from both Chambers.
SEC. 5. Repealing Clause. - All laws, decrees, executive orders, 
proclamations, rules and regulations, and other issuances, or parts 
thereof which are inconsistent with the provisions of this Act are 
hereby repealed, amended or modified accordingly.
SEC. 6. Separability Clause. - If, for any reason, any part, section 
or provision of this Act is held invalid or imconstitutional, the 
remaining provisions not affected thereby shall continue to be in full 
force and effect.
SEC. 7. Effectivity. - This Act shall take effect fifteen (15) days 
after its publication in the Official Gazette or in a newspaper of general 
circulation.
Approved,
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