THIRTEENTH CONGRESS OF THE REPUBLIC 
First Regular Session 
OF THE PHILIPPINES 
S E N A T E  
S. B. No. 
Introduced by Senator Biazon 
EXPLANATORY NOTE 
The 1987 Constitution, Article 13, Section 9 partly reads, “The State shall, 
by law, and for the common good, undertake, in cooperation with the private 
secfor, a continuing program of urban land reform and housing which will make 
available at affordable cost decent housing and basic services to underprivileged 
and homeless citizens in urban centers and resefflement areas.” This 
constitutional mandate seeks to address the housing problem of the 
underprivileged and homeless who cannot afford even low cost housing and 
therefore need some form of subsidy. 
On the other hand, the State, in its desire to pursue the development of 
our country, has embarked on an unprecedented program of developing 
identified areas for priority development. This involves the identification of certain 
areas as “growth centers” for industrial, commercial and similar forms of 
development. The program includes the alienation of government-owned lands in 
favor of private individuals and entities for purposes of developing such lands into 
industrial or commercial centers. 
Our country is fast running out of available residential land for its huge and 
ever-increasing population. The government has to pursue a rational land use 
plan, This would entail the rational allocation of the government’s scarce land 
resources. 
This bill seeks to require the setting aside of a portion of government- 
owned lands that are to be disposed for purposes of developing “growth centers” 
in the country. The lands that are set aside shall be devoted for the development 
of socialized housing projects for the benefit of the underprivileged and homeless 
Filipinos. 
In view of the foregoing, early passage of this bill is earnestly requested 
RODOLFO G. BIAZON 
Senator 


THIRTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
1 
-2 A 
n 
First Regular Session 
) 
S E N A T  
S. 6. 
No. 
Introduced by Senator Biazon 
AN ACT 
MANDATING 
THAT 
AT 
LEAST 
TEN 
PERCENT 
(10%) OF THE 
ENCUMBERED FOR DEVELOPMENT PURPOSES, BE SEGREGATED FOR 
SOCIALIZED HOUSING PROJECTS 
GOVERNMENT-OWNED LAND TO BE SOLD, ALIENATED OR OTHERWISE 
Be it enacted by the Senate and the House of Representatives in 
Congress assembled: 
Section 1. Declaration of Policy. It is hereby declared the policy of the 
State to ensure that sufficient land for housing purposes are maintained and to 
improve the capability of local government units in undertaking urban 
development and housing programs and projects. 
Sec. 2. Sale, Alienation or Encumbrance of Government-Owned Land. 
Whenever government-owned land, whether owned by the National Government 
or any of its instrumentalities, agencies, including government-owned or 
controlled corporations and local government units, is sold, alienated or 
otherwise encumbered in favor of private individuals or entities for its 
development into industrial, commercial or other similar estates, there shall be 
set aside at least ten percent (10%) of suco land or at least ten percent (10%) of 
the proceeds thereof for the development of socialized housing projects in the 
affected area or locality. 
Sec. 3. Delivery/Remittance of Segregated Lands or Funds. 
The 
segregated 
land or fund mentioned in Section 2 
hereof shall be 
deliveredkemitted according to the following: 
A. For lands owned by the National Government or any of its 
instrumentalities, agencies, including government-owned 
or 
controlled corporations - the segregated land or fund shall be 
deliveredlremitted to the National Housing Authority who shall be 
directly responsible for the development of socialized housing 
projects in the affected area or locality. 
B. For lands owned by local government units -the segregated land 
or fund shall be retained by the local government unit concerned to 
be utilized exclusively for its socialized housing projects. 
Sec. 4. Utilization of Segregated Lands or funds. The National Housing 
Authority (NHA), being the primary government agency in charge of providing 
housing for the underprivileged and homeless, or in case of land owned by local 
government units, the local government unit concerned, shall undertake the 
development of socialized housing projects within or adjacent to the affected 
areas in accordance with the local development plan of the affected area or 


locality. For this purpose, the NHA and local government unit concerned are 
hereby authorized to enter into joint venture agreements or other similar 
arrangements with private developers. 
In both cases, the NHA and the local government unit concerned shall 
coordinate with each other in the development of socialized housing projects in 
the affected area or locality. 
Sec. 5. Incentives for Privafe Developers. To encourage private sector 
participation in the socialized housing projects described in Section hereof, the 
incentives provided in Section 20 of Republic Act No. 7279 shall likewise be 
extended to participating private developers. 
Sec. 6. Implementing Rules and Regulations. Within six (6) months after 
the effectivity of this Act, the Housing and Urban Development Coordinating 
Council (HUDCC) is hereby directed to promulgate the necessary rules and 
regulations to effectively implement the provisions of this Act. In drafting the 
implementing rules and regulations, the HUDCC shall take into consideration the 
National Urban Development and Housing Framework described in R.A. 7279. 
Sec. 7. Separability Clause. If any part or provision of this Act is declared 
invalid for any reason, the remainder of this Act not affected thereby shall remain 
valid and effective. 
Sec. 8. Repealing Clause. All laws, decrees, Executive Orders, Letters of 
Instruction, Rules and Regulations or parts thereof inconsistent with any 
provisions of this Act are hereby repealed, modified, superceded or amended 
accordingly. 
Sec. 9. Effectivity. This Act shall take effect fifteen (15) days after its 
complete publication in the Official Gazette or in at least two (2) newspapers of 
general circulation. 
Approved.