Republic of the Philippines

Bouse of Representatives
Quezon City

45" Congress

41° Regular Session

House win__1234

Introduced By Winston Castelo

Explanatory Note

Decent, affordable housing — one of the people's most basic of needs but unfortunately,
rarely cheap and mostly unavailable. The combined efforts of government housing
agencies as well as the private sector seem to be futile in meeting the demands for
housing units. The proliferation of colonies of informal settlers in urban areas is a proof
of that the law of supply and demand is not in the balance. Such is the lack of housing
that even railroad tracks, riverbanks and floodways and the dangers that they entail do
not pose a hindrance to our poor countrymen from building their houses there.

The Constitution, Article 13, Section 9 reads:

“Sec. 9. The State shall, by law, and or the common good, undertake in cooperation
with the private sector, a continuing program, of urban land reform and housing which
will make available at affordable cost decent housing and basic services to
underprivileged and homeless citizens in urban centers and resettlement areas. It shall
also promote adequate employment opportunities to such citizens. In the
implementation of such program the State shall respect the rights of small property
owners.”

While the national government and its housing instrumentalities have not neglected their
duties, the country needs to develop a holistic approach to the housing sector. It should
have a department that is focused on the housing sector alone and that would
Coordinate and integrate all housing and development policies, programs, plans and
projects of thefational government and ultimately, the delivery of decent and affordable
housing apd urban development projects. This bill seeks to answer such need.

It is in this light that approval of this bill is earnestly sought.

ND

Disttict, Quezon City



Republic of the Philippines
Bouse of Representatives
Quezon City

15" Congress

1* Regular Session

ar 1231
House Bill.

Introduced By Winston Castelo

OMNIBUS HOUSING AND URBAN DEVELOPMENT ACT

Be it enacted by the Senate and 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 2010”.

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 and resources in order to meet the spatial and physical
requirements of housing and urban development and create a more balanced
urban-rural interdependence;
(c) Develop a sustainable and viable housing finance system that shall tap
alternative, including nontraditional 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 (LGUs) more power, authority, responsibility and
Tesources; and
(e) Encourage greater government-private sector partnership and more effective
peoples’ participation in shelter delivery and urban development by
institutionalizing their involvement in the planning and implementation process.

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) “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 nonagricultural purposes with an approved order of conversion from
the Secretary of the Department of Agrarian Reform (DAR). _ ;
(b) “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. ae
(c) “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.
(d) “Secondary mortgage market’ refers to the system which entails purchase,
acquisition, discounting or refinancing of loan and mortgage packages or
TI ments, in ‘ tie finance’

conveyances and other financial instruments or participation therein, backed by
the same pool of mortgages, securities and other assets.

(e) “Socialized housing’ refers to housing programs and projects covering
houses and lots or home lots only undertaken by the government or 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
and to housing packages that are priced up to the loan ceiling as may be set or
prescribed by the Department of Housing and Urban Development (DHUD)
created hereunder.

(f) “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.

(g) “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.

(h) “Urban renewaf' 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, which shall include the
business sector as well as people’s organizations (POs), nongovernment
organizations (NGOs) and cooperatives, 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
pores and programs and extend adequate technical and material assistance to
LGUs;
(e) Encourage participation of all stakeholders in housing and urban
development, such as LGUs, NGOs, POs, cooperatives and the business 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 programs and projects; and
(g) Promote the application of technologies that reduce costs and improve the
quality and habitability of housing.


CHAPTER Il
THE DEPARTMENT PROPER

SEC. 5. Creation of the DHUD. — To carry out the above-declared policy, there is
hereby created a DHUD, hereinafter referred to as the Department. The Department
shall be the primary agency of 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 mechanisms in order to promote a sustainable,
ecologically-sound and well-governed housing and urban development;
(0) Provide for the development of: (1) a sustainable social 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;
(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,
and in a just and humane manner;
(e) Supervise all corporations and agencies attached to the Department namely:
the Home Guaranty Corporation (HGC), the National Housing Authority (NHA),
the National Home Mortgage Finance Corporation (NHMFC), the Home
Development Mutual Fund (HDMF), the Public Estates Authority (PEA), the
Housing and Land Use Regulatory Board (HLURB), and the Presidential
Commission for the Urban Poor (PCUP) to: (1) ensure adherence, consistency
and integration with Department policies, plans and programs; and (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;
(g) 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, assessment and
reporting mechanism to enable continuing improvements in.sector policy and
strategy formulation;
(i) Provide technical assistance and information to assist LGUs in developing
solutions to problems on housing, community, and urban development and/or
renewal;
(i) 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;
(k) 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;
()) Call on other agencies or instrumentalities of the government and private
entities for cooperation and assistance in the performance of its functions;
(m) Undertake a rational, balanced, orderly and efficient development 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; . . a

(n) Conduct continuing research and development of innovative and indigenous
technologies that will enhance housing affordability; = :

(0) 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; ;

(p) Establish a mechanism to identify, update, 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;

(q) 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 urban development to be extended through multilateral or bilateral
assistance programs;

(9) Determine, fix and collect reasonable amounts to be charged as
administrative fees, fines and penalties on any natural or juridical person who
practice real estate services without any license; and

(s) Perform such other acts not inconsistent 1 with this Act as are necessary to
achieve its purposes.

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, the 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 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, POs and cooperatives 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/or corporations;
(g) Review existing rules and regulations governing financing schemes,
homeowners’ associations and other issues attendant to the different shelter
programs and projects, with the end in 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
undersecretaries, who shall be appointed by the President upon the recommendation of
the Secretary: Provided, That one of the undersecretaries shall be a career officer
coming from the ranks of the existing government housing agencies and offices. They
shall have the powers and functions as provided for in Section 10, 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 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 shal! have the following bureaus: (a) Financial
and Institutional Development Bureau; (b) Urban Development Bureau; (c) Housing
Technology Bureau; and (d) Settlements and Social Housing Bureau. The bureaus shall
each have a research and development unit. The bureaus shall coordinate with the
concerned corporations, which shall be attached to the Department for policy and
program coordination as provided for in Section 17 of this Act, in the performance of the
following functions:
(A) Financial and Institutional Development Bureau
(1) Provide fiscal and financial incentives to LGUs, the business sector,
cooperatives, 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 social 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 development and renewal programs, housing and
resettlement, including the restoration of neighborhoods, the investment in
or improvement of public facilities, and the 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) Monitor the implementation of projects and programs under its
jurisdiction; and
(8) Perform such other related functions as may be assigned to it by the
Secretary.
(B) Urban Development Bureau
(1) Coordinate with the PEA and the concerned LGUs 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;
(2) Assist the LGU in undertaking a rational, well-balanced, orderly and
efficient redevelopment or renewal of existing urban communities;
(3) Assist in the formulation and updating of national objectives for
housing and urban development, specifically the National Urban
Development Framework:
(4) Monitor the implementation of projects and programs under its
jurisdiction; and
(5) Perform such other related functions as may be assigned to it by the
Secretary.
(C) Housing Technology Bureau


(1) Study and promulgate appropriate standards on all types of housing
construction;
(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 to
make it within the reach of the poor without sacrificing safety
Tequirements, and provide for the prototyping/piloting 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) Settlements and Social Housing Bureau
(1) 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 provisions, slum upgrading and
provision of security 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 relocation/eviction compliance clearances for national and
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 its implementing rules and regulations
(IRR);
(4) Develop social housing programs for adoption by government housing
agencies and/or LGUs;
(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 implementation of government socialized housing policies
and programs;
(6) Monitor compliance with the balanced housing requirement under
Republic Act No. 7279 (UDHA) and its 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
advances/grants to LGUs, NGOs, cooperatives 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) 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;
(10) Monitor the implementation of projects and programs under its
jurisdiction; and
(11) 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 ; :
(1) 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; 7
(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 social housing finance system
to ensure the adequate flow of private funds into the primary and
secondary mortgage markets; . 7
(4) Develop clearly defined, transparent and well-targeted housing subsidy
mechanisms to enhance its accessibility to low-income housing
beneficiaries;

(5) Establish and maintain a management information system and
subsystems 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

(10) 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; ‘:

(8) 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;

(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 interagency
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) Providelextend legal advice/assistance to other offices of the
Department

SEC. 14, Regional Offices. - Consistent with the requirements of economy and
efficiency, there shall be established, on a need basis, regional offices, which shall be
headed by regional directors: Provided, That they are established in accordance with
the regional 1 staffing 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 the 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) Monitor, investigate and assess compliance with approved subdivision and
condominium plans, endorse and recommend the filing of appropriate charges
for violations thereof;
(e) Coordinate with the LGUs with regard to their local urban development, land
use and shelter plan, 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;
(f) Coordinate the plans and programs of the regional offices of the attached
agencies and corporations; and
(g) Perform such other functions as may be provided for by law and by the
Secretary.

SEC. 16. Relationship of the Regional Offices with the Attached Corporations
and/or Agencies and the LGUs. — The relationship of the regional offices of the
Department with its attached corporations, the HLURB and the LGUs, shall be purely
coordinative.

CHAPTER Ill
ATTACHED CORPORATIONS AND/OR AGENCIES

SEC. 17. Attached Corporations and/or Agencies and their Functions. — Any
provision of law or their respective charters to the contrary notwithstanding, the
following are hereby attached to the Department for policy and program coordination:

(a) Home Guaranty Corporation (HGC);

(b) National Housing Authority (NHA);

(c) National Home Mortgage Finance Corporation (NHMFC);

(d) Home Development Mutual Fund (HDMF);

(e) Public Estates Authority (PEA); and

(f) Presidential Commission for the Urban Poor (PCUP).

The HLURB is likewise attached to the Department for administrative supervision.

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. Any
provision to the contrary notwithstanding, the integrity and character of PAG-IBIG funds
for the benefit of its members shall not be prejudiced. 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 the HGC, the NHA, the NHMFC, the HDMF, the PEA, the
HLURB and the PCUP.

CHAPTER IV
PUBLIC ESTATES AUTHORITY

SEC. 18. 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 he national urban development and housing framework. In coordination with
the Department and the local government concerned, 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. All succeeding
issuances after the ratification of the Freedom Constitution in 1987 are hereby
automatically rescinded. All reclaimed lands except those to be specifically devoted for
public use and public purpose shall henceforth be considered patrimonial lands.

CHAPTER V
TRANSITORY PROVISIONS

SEC. 19. Abolition of the HUDCC and Transfer of its Powers and Functions. - The
HUDCC is hereby abolished. Within six months after the approval of this Act, the
powers and functions of the 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. All
ex officio functions of the chairman of the HUDCC are likewise transferred to the
Secretary.

SEC. 20. Transfer of Rights, Assets and Liabilities. - The Department shall, by virtue
of this Act, be subrogated to all rights and assume all the liabilities of the HUDCC, in
accordance with the Auditing Code and other pertinent laws, rules and regulations.

SEC. 21. Separation Incentive Package (SIP). - Permanent officials and employees
of the HUDCC and all attached agencies and corporations who elect to leave
government service, or who prefer to retire, shall be entitled to a SIP equivalent to the
following:

(a) One and a half months of the basic salary for every year of government
service and a fraction thereof for those who have rendered fifteen (15) years and
below;

(b) Two months of the basic salary for every year of government service and a
fraction thereof for those who have rendered sixteen (16) years to thirty (30)
years of service; and

(c) Three months of the basic salary for every year of government service and a
fraction thereof, for those who have rendered thirty-one (31) years of service and
more. In computing the number of years of service rendered, a fraction of more
than six months shall be considered equivalent to one year of service. The
existing number of officials and employees of the HUDCC and the attached
corporations and agencies shall not be increased and no new hiring shall be
allowed until all of them have been properly placed. Those ho opt to stay shall
retain their remuneration and seniority. No official or personnel shall be
dislocated and involuntarily separated. For the purpose of the SIP, there is
hereby appropriated the necessary amount from any funds or resources of the
HUDCC and the attached corporations and agencies. Any deficiency shall be
automatically appropriated in the succeeding year’s General Appropriations Act.
If for any reason the fund for the SIP is inadequate, officials and employees who
have opted to be separated but have not received their benefits may choose to
stay or be reinstated and retain their previous remuneration and rank: Provided,
That the option shall be exercised within three (3) years.


CHAPTER VI
FUNDING

SEC. 22. Appropriations. — The amount needed for the initial implementation of this
Act shall be charged against the current year’s appropriation of the HUDCC. Thereafter,
such sums as may be necessary for the continued implementation of this Act shall be
included in the annual General Appropriations Act.

CHAPTER Vil
MISCELLANEOUS AND FINAL PROVISIONS

SEC. 23. Social Housing One-Stop Processing Centers (SHOPCs). — For purposes
of socialized, low-cost, economic and middle-income housing development, as well as
housing development by housing cooperatives, the Department shall establish 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 cost/economic 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 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.

SEC. 24. Identification and Designation of Lands for Housing and Urban
Development. - For the purpose of designating lands for housing and urban
development, the DHUD, the DAR and the Department of Agriculture (DA) shall, within
one hundred eighty (180) days from the 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: Provided, That the list shall exclude lands that
are declared as nonnegotiable 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, also, That in the case of
lands exempted from conversion though these have been approved by the DAR, if
these are contested by affected individual or community beneficiaries, it shall not 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: Provided, finally, That all idle government lands in highly
urbanized cities are hereby prioritized for housing and urban development purposes.

SEC. 25. Creation of an Advisory Committee. - Within thirty (30) days from the
effectivity of this Act, an advisory committee consisting of key representatives from the
urban poor organizations, cooperatives and other marginalized groups, NGOs,
academic, business sector, local government, the 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, cooperatives and other marginalized groups shall be
selocted by their respective National Anti-Poverty Commission (NAPC) sectoral
councils.

SEC. 26. Disclosure and Divestment of Financial Interest. — Before assumption into
Office, the Secretary, the undersecretaries and the assistant secretaries shall submit to
the Civil Service Commission (CSC) a list of all companies, partnership or business
enterprises, including nonprofit 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. Within thirty
(30) days thereafter, complete divestment of financial interests in any institution, firm 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. 27. Relationship with Other Government Departments. — The Department and
its priority projects shall enjoy preferential attention from the DENR, the DAR, the DA,
the Department of Justice (DoJ) and the LGUs, relative to the issuance of 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 (10) 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. 28. Mandatory Review Six Months 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. 29. Formulation of the Implementing Rules and Regulations. — Within three
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 associations
to manage subdivision and condominium projects, ownership and/or management by
housing cooperatives of subdivision and housing projects and availment of loans on
terms easily affordable to all. The inter-agency committee shall be composed of the
following: .

(a) The Secretary of the DHUD, as chairman;

(b) The Secretaries of the DILG, the DAR and the DA;

(c) The heads of the NHA, the NHMFC, the HDMF, the HGC, the PEA, the

HLURB and the PCUP;

(d) The chairpersons of the Senate Committees on Finance and Urban Planning,

Housing and Resettlement; and the House Committees on Housing and Urban

Development, Government Reorganization and Appropriations;

(e) Six representatives for the urban poor sector three from accredited POs and

three from NGOs to be appointed by the chairpersons of the Joint Congressional

Committee; and

(f) Two representatives each from the respective organizations of real estate

brokers, real estate appraisers and real estate consultants.

SEC. 30. Penal Provision. - The Department shall impose a maximum imposable fine
for violations of its standards, rules and regulations which shall not exceed Five hundred
thousand pesos (P500,000.00): 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 years.


SEC. 31. Separability Clause. — If for any reason or reasons, any part or provision of
this Act shall be held to be unconstitutional or invalid, other parts or provisions hereof
which are not affected thereby shall continue to be in full force and effect.

SEC. 32. 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. 33. Effectivity. - This Act shall take effect fifteen (15) days following its complete
publication in at least two national newspapers of general circulation.

Approved,