,,' 
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SIXTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
Sfl1Zltr 
li)U,;, ,,( ill- ,'i:q'rut"'~ 
First Regular Session 
) 
) 
) 
'14 
MAY 29 P 1 :29 
SENATE 
S.No. 
?2G3 
Introduced by Senator Miriam Defensor Santiago 
EXPLANATORY NOTE 
This bill is meant to respond to the high number of unresolved housing backlogs 
that continues to increase each year. 
Many current studiesl point to the considerable lack of adequate housing in the 
Philippines which has resulted from rapid urbanization and population growth. In recent 
years, land prices have been pushed up considerably. In combination with a deficit in 
housing stock, affordable housing has become sc,arce, and the poor have confined 
themselves to slum areas. Here, a family of four to five people, typically have to share a 
one-room area where they prepare food, eat, socialize and sleep. However, as a result of 
the increasing gap in the house-price-to-income-ratio, low and middle income families 
have also started to move into houses in the informal sector, and some are unable to move 
out despite risen income. 
The Constitution, Article 13, Section 9 provides: 
Sec. 9. The State shall, by law, and for the common good, 
undertake, in cooperation with the private sector, a continuing 
program of urban land reform and housing which will make 
available at affordable cost decent housing and basic services to 
underprivileged and homeless citizens in urban centers and 
resettlement areas ... 
1 http://www.habitationfortheplanet.orglblog12012/11/bottom-of-the-pyramid-housing-in-metro-
manila-challenges-and-potentialsl 
1 


A key initiative in promoting private sector participation in this Constitutionally-
mandated housing program is Section 18 of Republic Act No. 7279, or the "Urban 
Development and Housing Act" (UDHA), which, in turn, provides that "developers of 
proposed subdivision projects shall be required to develop an area for socialized housing 
equivalent to at least twenty percent (20%) of the total subdivision area or total 
subdivision project cost, at the option of the developer, within the same city or 
municipality, whenever feasible." 
This "balanced housing" requirement under Section 18 ofRA 7279 is intended to 
ensure that every government approved housing project, whether specifically for 
socialized housing or not, contributes to addressing the nation's massive problem of 
homelessness. It is an assurance that every time the government grants permission for 
houses to be built, there will be houses that will be built for the poor. 
The impact of the balanced housing provision of RA 7279 has, however, been 
seriously weakened by numerous executive issuances that provide for "alternative" 
modes of compliance. Under various issuances, for instance, developers may comply by 
purchasing Pag-IBIG Housing bonds. These are bonds issued by the Home Development 
Mutual Fund (HDMF) to finance its housing loan program. Purchase of these bonds is 
deemed sufficient compliance with Section 18 ofRA 7279. A developer who purchases 
these bonds will be paid on a semi-annual basis a fixed interest rate which is tax-exempt 
by virtue of the Home Guaranty Corporation (HGC) guarantee on the Bonds. The HGC 
provides a cash guaranty on the entire amount of the principal and interest of up to 
10.50%. The Guaranty of the HOC carries the unconditional guaranty of the Republic of 
the Philippines. 
With bonds as substitute, not only are private developers excused from investing 
in housing but this also imposes financial obligations on the government, owed to all 
buyers of the bonds. 
2 


More significantly, these alternative modes of compliance have actually 
discouraged actual houses for the poor from being built, thus seriously undermining a 
crucial pillar of the government housing program. 
This bill aims to tighten compliance among developers to allot a portion of 
socialized housing from each of their housing projects currently provided for in Section 
18 ofRA 7279. It strikes the right balance between the fiscal incentive grants given by 
government to mass housing developers and the developer's socialized housing 
responsibility. 
In so doing, it is envisioned that the program to provide more underprivileged and 
homeless Filipinos with the opportunity to have their own homes will be strengthened, 
and that ultimately, greater headway will be made in the continuing effort to uphold the 
rights and dignity of every Filipino? 
~ 
~ .o.J:JU 
. MIRIAM DEF~SC;;ANTI~b 
!fK 
. 
2 This bill was originally filed in the House of Representatives, by Rep. Ibarra M. Gutierrez III and Rep. Walden F. 
Bello; it was filed during the Sixteenth Congress as House Bill No. 2576. 
3 


SIXTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
SENATE 
) 
) 
) 
'14 
MAY 29 P 1 :29 
S. No. 
:~?'63 
HEi'EI\,ED BV. --f 
Introduced by Senator Miriam Defensor Santiago 
1 
AN ACT STRENGTHENING 
2 
THE BALANCED HOUSING DEVELOPMENT PROGRAM, 
3 
AMENDING FOR THAT PURPOSE REPUBLIC ACT NO. 7279, AS AMENDED BY 
4 
REPUBLIC ACT NO. 9397, OTHERWISE KNOWN AS THE 
5 
URBAN DEVELOPMENT AND HOUSING ACT OF 1992 
6 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
7 
SECTION 1. Short Title_ - This Act shall be known as the "Balanced Housing 
8 
Development Program Amendments." 
9 
SECTION 2. Amendatory Provisions. - The following provisions of Republic Act 
10 
no. 7279, entitled, "An Act to Provide for a Comprehensive and Continuing Urban 
11 
Development and Housing Program, Establish the Mechanism for its Implementation, 
12 
and for other Purposes," are hereby amended: 
13 
(A) Section 3 of Republic Act no. 7279 IS hereby amended by redefining 
14 
paragraph (r) to read as follows: 
15 
"(r) 'Socialized housing' refers to housing programs and 
16 
projects covering houses and lots or homelots only, OR 
17 
RESIDENTIAL CONDOMINIUM UNITS undertaken by the 
18 
government or the private sector for the underprivileged and 
19 
homeless citizens which shall include sites and services 
20 
development, long-term financing, liberalized terms on interest 
1 


f 
payments, and such other benefits m accordance with the 
2 
provisions of this Act." 
3 
(B) Section 18 of Republic Act no. 7279 is hereby amended to read as follows: 
4 
"Sec. 18 Balanced Housing Development. ~ The Program shall 
5 
include a system to be specified in the Framework plan whereby 
6 
OWNERS AND/OR developers of proposed subdivision AND 
7 
CONDOMINIlUM projects shall be required to develop an area for 
8 
socialized housing equivalent to at least [twenty percent (20%)] 
9 
FIFTEEN PERCENT (15%) of the total subdivision area or total 
10 
subdivision project cost AND AT LEAST FIVE PERCENT 
11 
(5%) OF CONDOMINIUM AREA OR PROJECT COST, at 
12 
the option of the developer, within the same city or municipality, 
13 
whenever feasible, and in accordance with the standard set by the 
14 
Housing and Land Use Regulatory Board and other existing laws 
15 
[.] PROVIDED, THAT OWNERS AND/OR DEVELOPERS 
16 
. OF PROPOSED SOCIALIZED SUBDIVISION PROJECTS 
17 
AND OWNERS AND/OR DEVELOPERS OF PROPOSED 
18 
SOCIALIZED CONDOMINIUM PROJECTS SHALL BE 
19 
EXEMPT FROM THIS REQUIREMENT. 
20 
"FOR THIS PURPOSE, THE HOUSING AND URBAN 
21 
DEVELOPMENT COORDINATING COUNCIL AND THE 
22 
NATIONAL 
ECONOMIC 
AND 
DEVELOPMENT 
23 
AUTHORITY SHALL JOINTLY DETERMINE AND SET 
24 
SEPARATE SOCIALIZED HOUSING PRICE CEILINGS 
25 
FOR SOCIALIZED SUBDIVISION AND SOCIALIZED 
26 
CONDOMINIUM 
PROJECT 
WHICH 
SHALL 
BE 
2 


1 
2 
3 
4 
5 
6 
,7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
REVIEWED OR REVISED EVERY THREE (3) YEARS TO 
CONFORM TO PREVAILING ECONOMIC CONDITIONS. 
THE 
HOUSING 
AND 
URBAN 
DEVELOPMENT 
COORDINATING 
COUNCIL 
AND 
THE 
NATIONAL 
ECONOMIC AND DEVELOPMENT AUTHORITY ARE 
LIKEWISE HEREBY MANDATED TO REVIEW AND 
ADJUST 
THE 
REQUIRED 
PERCENTAGE 
OF 
COMPLIANCE 
FOR 
BOTH 
SUBDIVISION 
AND 
CONDOMINIUM PROJECT NOT LATER THAN THE END 
OF THE FIFTH (5TH) YEAR FROM THE EFFECTIVITY OF 
THIS ACT AND EVERY FIVE (5) YEARS THEREAFTER: 
PROVIDED, THAT LEGISLATION BY AN ACT OF 
CONGRESS 
SHALL 
BE 
RESORTED 
TO 
IF 
THE 
ADJUSTMENT SOUGHT IS LESS THAT THE MINIMUM 
PERCENTAGE OF COMPLIANCE SET FOR THE HEREIN. 
"The balanc(~d housing development as herein required may also 
be complied with by the developers concerned in any of the 
following manner: 
"a) Development. of SOCIALIZED HOUSING IN A new 
settlement; 
"[b) Slum upgrading or renewal of areas for priority 
development either through zonal improvement programs or slum 
improvement and resettlement programs;] 
"[c) Joint-venture projects with either the local government units 
or any of the housing agencies[;] or WITH ANOTHER 
3 


~ 
PRIVATE 
DEVELOPER, 
OR 
WITH 
A 
2 
NONGOVERNMENTAL ORGANIZATION ENGAGED IN 
3 
THE PROVISION OF SOCIALIZED HOUSING AND DULY 
4 
ACCREDITED BY THE HOUSING AND LAND USE 
5 
REGULATORY BOARD: PROVIDED, THAT THE OWNER 
6 
AND/OR DEVELOPER OF THE MAIN SUBDIVISION OR 
7 
CONDOMINIUM PROJECT SHALL BE SOLIDARIL Y 
8 
. LIABLE WITH THE OWNER AND/OR DEVELOPER OF 
9 
THE SOCIALIZED HOUSING PROJECT FOR THE 
10 
DEVLOPMENT OF THE LATTER, IRRESPECTIVE OF 
11 
THE 
PROVISIONS 
OF 
THEIR 
JOINT 
VENTURE 
12 
AGREEMENT; OR 
13 
"[d) Participation in the community mortgage program.] 
14 
"(C) DEVELOPMENT OF EDUCATION FACILITIES IN 
15 
AN EXISTING SOCIALIZED HOUSING AREA. 
16 
"NO OTHER FORM OF COMPLIANCE TO THIS 
17 
SECTION MAYBE PRESCRIBED EXCEPT THROUGH 
18 
THE ENACTMENT OF A SUBSEQUENT LAW. 
19 
"FURTHERMORE, 
NO 
SUBDIVISION 
PLAN 
OR 
20 
CONDOMINIUM PLAN SHALL BE APPROVED BY ANY 
21 
LOCAL 
GOVERNMENT 
UNIT 
OR 
GOVERNMENT 
22 
AGENCY UNLESS THE SAME IS ACCOMPANIED BY A 
23 
WRITTEN UNDERTAKING, MADE UNDER OATH, BY 
24 
THE OWNER AND/OR DEVELOPER, SETTING FORTH IN 
4 


i 
DETAIL THE MANNER IN WHICH COMPLIANCE WITH 
2 
THIS SECTION IS PROPOSED. 
3 
"THE HOUSING AND LAND USE REGULATORY 
4 
BOARD IS HEREBY MANDATED TO SUBMIT TO 
5 
CONGRESS 
AN 
ANNUAL 
REPORT 
ON 
THE 
6 
COMPLIANCE HEREOF BY THE OWNERS AND/OR 
7 
DEVELOPERS OF SUBDIVISION AND CONDOMINIUM 
8 
PROJECTS. 
9 
"ANY PERSON VIOLATING ANY PROVISION OF THIS 
10 
SECTION SHALL BE IMPOSED A FINE OF NOT LESS 
11 
THAN FIVE HUNDRED THOUSAND PESOS (P500,OOO.OO) 
12 
BIT 
NOT 
MORE 
THAN 
TEN 
MILLION 
PESOS 
13 
(PIO,OOO,OOO.OO) 
FOR 
THE 
FIRST 
OFFENSE 
AND 
14 
CANCELLATION OF LICENSE TO DO BUSINESS FOR 
15 
THE SECOND OFFENSE." 
16 
(C) Section 21 of Republic Act No. 7279 is hereby amended to read as 
17 
follows: "SEC. 21. Basic Services. -
Socialized housing and 
18 
resettlement areas shall be provided by the local government unit 
19 
or the National Housing Authority in cooperation with the private 
20 
OWNERS AND/OR developers and concerned agencies with the 
21 
following basic services and facilities: 
22 
"(a) Potable water; 
23 
"(b) Power and electricity and an adequate power distribution 
24 
system; 
5 


r 
"(c) Sewerage facilities and an efficient and adequate solid 
2 
waste disposal system; and 
3 
"(d) Access to primary roads and transportation facilities. 
4 
"The provision of other basic services and facilities such as 
5 
health, education, communications, security, recreation, relief and 
6 
welfare shall be planned and shall be given priority for 
7 
implementation by the local government unit and concerned 
8 
agencies in cooperation with the private sector and the beneficiaries 
9 
themselves [.J PROVIDED, THAT THE PROVISION OF 
10 
EDUCATION FACILITES BY AN OWNER AND/OR A 
11 
DEVELOPER 
IN 
SOCIALIZED 
HOUSING 
AREAS 
12 
PURSUANT TO SECTION 18 (C) HEREOF SHALL BE 
13 
ACCORDED A HIGH PRIORITY. 
14 
"The local government unit, in coordination with the concerned 
15 
national agencies, shall ensure that these basic services are 
16 
provided at the most cost-efficient rates, and shall set a mechanism 
17 
to coordinate operationally the thrusts, objectives and activities of 
18 
other government agencies concerned with providing basic services 
19 
to housing projects." 
20 
SECTION 3. Implementing Rules and Regulations. - Within sixty (60) days from 
21 
the effectivity of this Act, the Housing and Land Use Regulatory Board shall promulgate 
22 
a new set of implementing rules and regulations for the amended Sections 3, 18, and 21 
23 
of Republic Act No. 7279, consistent with the parameters and standards set forth in said 
24 
sections. Nongovernment organizations and people's organizations involved in housing 
6 


.' 
1 
rights and urban poor advocacy, as well as the private sector, shall be consulted in the 
2 
process of drafting these implementing rules and regulations. 
3 
SECTION 4. Reporting to Congress. -
The Chief Executive Officer of the 
4 
Housing and Land Use Regulatory Board shall submit an evaluation report to Congress 
5 
every two (2) years after the effectivity of this Act. 
6 
SECTION 5. Separability Clause. - If any provision or part hereof, is held invalid 
7 
or unconstitutional, the remainder of the law of the provision not otherwise affected shall 
8 
remain valid and subsisting. 
9 
SECTION 6. Repealing Clause. - Any law, presidential decree or issuance, 
10 
executive order, letter of instruction, administrative order, rule or regulation contrary to, 
11 
or inconsistent with, the provisions of this Act is hereby repealed, modified or amended 
12 
accordingly. 
13 
SECTION 7. Effectivity Clause. - This Act shall take effect fifteen (15) days after 
14 
its publication in at least two (2) newspapers of general circulation. 
Approved, 
lacs 
7