. 
, 
SIXTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
Fir;;t Regular Session 
SENATE 
Senate Bill No. 
"13 
JUL -3 P 6 :50 
INTRODUCED BY SENATOR FERDINAND R. MARCOS, JR. 
EXPLANATORY NOTE 
By 2015, our country's population shall enter the lOO-million threshold. 
With the escalating populace, it is vital that there is a full-fledge department to 
meet the challenge in housing and urban development to address the 
projected mass housing backlog of 5.8 million housing units in 2016, according to 
the Philippine Development Plan, 2011-2016. 
This legislative measure proposes the creation of the Department of 
Housing and Urban Development (DHUD) that will consolidates the functions of 
the Housing and Urban Development Coordinating Council (HUDCC) and the 
planning and regulatory functions of the Housing and Land Use Regulatory 
Board (HLURB). 
This Department is tasked to act as the primary national 
government entity responsible for the management of housing and urban 
development. It shall be the sole and main planning and policy-making, 
regulatory, program coordination, and performance monitoring entity for all 
housing and urban developrnenl concerns, primarily focusing on the access to 
and affordability of the basic human needs. 
Under this proposal, the HLURB is hereby reconstituted and shall 
henceforth be known as the Adjudication Commission for Housing, Land Use 
and Urban Development which shall exercise the adjudication function of the 
HLURB. 
The existing key shelter agencies and corporations such as the National 
Housing Authority, Home Guaranty Corporation, National Home Mortgage 
Finance Corporation, Home Development Mutual Fund, Social Housing Finance 
Corporation, are attached to the Department of Housing and Urban 
Development for policy and program coordination, monitoring and evaluation. 
All these Agencies shall continue to function according to existing laws and their 
respective Charters. 
Furthermore, under this bill. the Department may establish Social 
Housing One-Stop Processing Center (SHOPCs) in the Regions, which shall 
centralize the processing and issuance of all required housing-related 
permits, clearances, and licenses. 


.:' 
Through this legislative initiative, it is with great anticipation that the 
crucial housing needs of our country, including the growing housing 
backlog, and the institutional weaknesses of housing agencies, will be 
effectively addressed and resolved. 
The early passage of this bill is earnestly requested. 
"\ 
. MARCOS, JR. 


:'"' 
'. 
SIXTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
) 
First Regular Session 
) 
'13 
JUL -3 P6 :5(} 
1"'V'f-' . 
,.>1' 1 ~ 
, 
" 
" 
SENATE 
Senate Bill No. 
INTRODUCED BY SENATOR FERDINAND R. MARCOS, JR. 
AN ACT 
CREATING THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (DHUD), 
DEFINING THE MANDATES, 
POWERS, 
AND FUNCTIONS, 
PROVIDING FUNDS 
THEREFOR AND FOR OTHER PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
1 
CHAPTER 1 
2 
TITLE AND POLICIES 
3 
Section 1. Title. - This Act shall be known as the "Department of Housing 
4 
and Urban Development Act of 20 13. " 
5 
Section 2. Declaration of Policies. - The State shall, by law. and for the 
6 
common good. undertake. in cooperation with the private sector. a continuing 
7 
program of urban development and housing which will make available at 
8 
affordable cost. decent housing and basic services to underprivileged and 
9 
homeless citizens. It shall also promote adequate employment opportunities to 
10 
such citizens. In the implementation of such program the State shall respect the 
11 
rights of small property owners. 
12 
The state shall pursue the realization of a modern. humane. economically 
13 
viable and environmentally sustainable society where the urbanization process is 
14 
manifest in towns and cities being centers of productive economic activity. 
15 
through partnerships with multi-stakeholders; where urban areas have 
..
----
if':' 


,1 
affordable housing, sustainable physical and social infrastructure and services 
2 
facilitated under a democratic and decentralized system of governance; and 
3 
where urban areas provide the opportunities for an improved quality of life and 
4 
the eradication of poverty. 
S 
Urban or rural poor dwellers shall not be evicted nor their dwelling 
6 
demolished, except" in accordance with law. 
7 
CHAPTER II 
8 
DEFINITION OF TERMS 
9 
Section 3. Definitions. - As used in this Act, the following terms shall mean: 
10 
3.1 Attachment - refers to the relationship between the department and 
11 
the attached agency or corporation for purposes of policy and program 
12 
coordination and as further defined under the Administrative Code of 1987. 
13 
3.2 Housing - refers to the system and its components which establish the 
14 
residential quality of life, including housing, utilities, access to social services and 
15 
other community facilities, security, and other aspects related to an individual's 
16 
residence. 
17 
3.3 Informal Settler Families (lSFs) refer to household/s living in: (a) lot 
18 
without consent of the property owner; 
(b) danger areas; (c) areas for 
19 
government infrastructure projects; (d) protected/forest areas (except for 
20 
indigenous people); (e) Areas for Priority Development (APDs), if applicable; 
21 
and/or (f) other government/public lands or facilities n0t intended for 
22 
habitation. 
23 
3.4 Urban Development - pertoins to the process of occupation and use 
24 
of land or space for such activities as residential, industrial, commercial and the 
25 
like or their combinations, necessary to carry out the functions of urban living. It 
26 
entails the building or rebuilding of more or less permanent structures over land 
27 
that is often withdrawn or converted from its original use, resulting in the creation 
28 
of a built environment. 
29 


" 1 
CHAPTER III 
2 
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT 
3 
Section 4. Creation and Mandate of the Department of Housing and Urban 
4 
Development. - There is hereby created the Department of Housing and Urban 
5 
Development 
(DHUDJ, 
hereinafter referred to as 
the 
Department. by 
6 
consolidating 
the 
functions of the Housing 
and 
Urban 
Development 
7 
Coordinating Council (HUDCC) and the planning and regulatory functions of 
8 
the Housing and Land Use Regulatory Board (HLURB), which shall act as the 
9 
primary national govemment entity responsible for the management of 
10 
housing and urban development. It shall be the sole and main planning and 
11 
policy-making, 
regulatory. 
program 
coordination, 
and 
performance 
12 
monitoring entity for all housing and urban development concerns. primarily 
13 
focusing on the access to and affordability of the basic human needs. 
! 
I 
14 
Section 5. Powers and Functions. - The planning and regulatory function 
15 
of the Housing and Land Use Regulatory Board (HLURB) is hereby transferred to 
16 
the Department. 
17 
In addition thereto. the Department shall perform the following: 
18 
5.1. Formulate the national and urban development and housing policy 
19 
and strategy, in coordination and in consultation with the stakeholders. which 
20 
ensures consistency with the Philippine Development Plan (PDP) and the 
21 
National Physical Framework Plan (NPFP) to promote social and economic 
22 
welfare; 
23 
5.2. Exercise initiative and assume a lead role in coordinating. 
24 
supervising and integrating all government activities relative to housing and 
25 
urban development; 
26 
5.3. Formulate effective and efficient housing finance policies and 
27 
programs to promote the establishment of a self-sustaining. private sector-led 
28 
housing finance system; 


~ . 
1 
5.4. Manage and oversee the development of proclaimed housing sites, 
2 
including the use of land assets as resource mobilization strategy to raise 
3 
alternative funds in, developing new town housing projects which will serve as 
4 
central relocation sites for the affected Informal Settlers; 
5 
5.5. Utilize income generated from fees, fines, charges, and other 
6 
collections in the performance of its functions, to defray operating expenses; 
7 
5.6. Enter into contracts, joint venture agreements, public-private 
8 
partnerships, and such other memorandum of agreements/understanding, 
9 
either domestic or foreign, under such terms and conditions as it may deem 
10 
proper and reasonable subject to existing laws; 
11 
5.7. Discharge all responsibilities of government as may arise from treaties, 
12 
agreements and other commitments on housing, land use and urban 
13 
development to which it is a signatory, including the determination of forms of 
14 
assistance for housing, land use and urban development to be extended 
15 
through bilateral or multilateral loans and/or assistance program; 
16 
5.8. Receive, take and hold by bequest, device, gift, purchase or lease, 
17 
either absolutely or in trust for any of its purposes from foreign and domestic 
18 
sources, any asset, grant or property, real or personal, subject to such limitations 
19 
provided under existing laws and regulations; 
20 
5.9. Exercise oversight function, coordinate, monitor and evaluate the 
21 
policies and programs of all attached agencies; 
22 
5.10. Conduct comprehensive studies and researches, and' build and 
23 
maintain a database necessary for housing and urban development; 
24 
5.11. Provide assistance to build the capability of local government units 
25 
in housing and urban development and management to strengthen the role 
26 
of provinces, cities and municipalities as the primary entities for urban 
27 
development/renewal planning and management; 


, ' 
" 1 
5,12, Promulgate zoning and other land use control standards and 
2 
guidelines which shall govern land use plans and zoning ordinances of local 
3 
governments, subdivision or estate development projects; 
4 
5,13. Monitor local government compliance with housing and urban 
5 
development laws, standards and guidelines and Republic Act No. 9485, 
6 
otherwise known as the Anti-Red Tape Act of 2007 with respect to housing and 
7 
urban development projects, as well as their judicious and fair application of 
8 
local housing and urban development ordinances; 
9 
5.14. Support local government partnerships with communities, civil 
10 
society organizations, non-government organizations, and private groups in 
11 
the implementation of urban development/renewal projects; 
12 
5.15. Develop and establish a sector performance monitoring and 
13 
assessment mechanism, and monitor the performance of national government 
14 
agencies, local government units, as well as other entities involved in housing 
15 
and urban development; 
16 
5.16. Lead in the disposition of lands intended for housing owned by the 
17 
Government or any of its subdivisions, instrumentalities, agencies or government-
18 
owned or controlled corporations such as but not limited to military reservations, 
19 
lands reserved for government offices, facilities and other installations, and other 
20 
land assets including friar lands which have not been used for the purposes for 
21 
which they have been reserved or set aside for the past ten (10) years from 
22 
effectivity of Republic Act No. 7279, otherwise known as the Urban 
23 
Development and Housing Act (UDHA); 
24 
5.17. Declare areas as Urban Development/Renewal site(s) including the 
25 
development and implementation of sub-projects jointly with the concerned 
26 
local government units under a Public Private Partnership (PPP) arrangement; 
27 
5.18. Advocate and assist the local government units (LGUs) in the 
28 
establishment of Special Housing Fund (SHF) to be sourced from the proceeds of 
29 
Real Property Tax (RPT) as provided for under Section 43 of Republic Act No. 


-------
, ' 
" . 1 
7279 pegged at one half percent (.5%) of the assessed value of real property 
2 
which will be exclusively used for the identification of sites for socialized housing 
3 
and low-cost housing, data gathering, inventory of lands; mobilization and 
4 
implementation of socialized and low-cost housing programs of the LGUs. 
5 
5.19. Take the lead in the conduct of Pre- and Post-Proclamation activities 
6 
as orchestrator and facilitator of the entire disposition process including the 
7 
stewardship of the Local Inter-Agency Committee (LiACs) which are primarily 
8 
tasked to oversee the implementation of housing proclamation projects; 
9 
5.20. Effect and oversee a single regulatory system that shall govem all 
10 
activities relative to the planning, production, marketing, and management of 
11 
housing and urban development projects; 
12 
5.21. Take over unfinished, incomplete or abandoned licensed real estate 
13 
development projects under Presidential Decree No. 957; 
14 
5.22. Encourage the private sector to address and serve a large part of 
15 
the country's housing needs; 
16 
5.23. Promote, accredit and regulate the use of indigenous materials 
17 
and technologies in housing construction; 
18 
5.24. Implement prototype projects in housing and urban development 
19 
undertakings, with the right to exercise the power of eminent domain, when 
20 
necessary; 
21 
5.25. Determine, fix and collect reasonable amounts to be charged as 
22 
fees and charges necessary for the effective implementation of all laws, rules 
23 
and regUlations enforced by the Department and impose reasonable fines and 
24 
penalties for violation thereof; 
25 
5.26. Register and regulate Homeowners and Homeowners Associations 
26 
(HOAs) and Condominium Units Owners' Association/Corporation (CUOA/Cs) 
27 
and provide assistance in the formulation of community development 
28 
programs; 


1 
5.27. Formulate and ensure the implementation of housing policies and 
2 
programs for urban poor communities and informal settler families (ISFs) that will 
3 
promote the social and economic welfare of homeless families particularly the 
4 
poor and underprivileged; 
5 
5.28. Initiate and encourage deeper and active involvement and 
6 
participation of civil society organizations, developers associations, urban 
7 
planners and other stakeholders which shall be used as a venue through 
8 
which housing needs are assessed and recognized and, in coordination with 
9 
the local government units, serve as the lead agency for housing and urban 
10 
development concerns; and, 
11 
5.29. Perform such other related functions as may be mandated by law. 
12 
Section 6. Composition. . The Department shall be composed of the 
13 
Office of the Secretary, his/her immediate staff, and the Offices of the 
14 
Undersecretaries and their respective staff, and the other Offices directly 
15 
supportive of the Office of the Secretary. 
16 
Section 7. The Secretary . . The Secretary shall: 
17 
7.1. Report to the President on the promulgation of rules, regulations and 
18 
other issuances relative to matters under the jurisdiction of the Department; 
19 
7.2. Establish policies and standards for the efficient and effective 
20 
operations of the Department in accordance with the programs of the 
21 
government; 
22 
7.3. PromUlgate rules, regulations and other issuances necessary in 
23 
carrying out the Department's mandate, objectives, policies, plans, programs 
24 
and projects; 
25 
7.4. Review and approve, with a panel of planners and builders, the 
26 
physical framework plans of the provinces and the comprehensive land use 
27 
plans of cities, as well as the municipalities within Metro Manila; 
28 
7.5. Exercise control and supervision over all personnel of the Department; 


, 
1 
7.6. Have the power to delegate authority for the performance of any 
2 
administrative or substantive function to subordinate officials of the Department: 
3 
7.7. Appoint all officers and employees of the department, except those 
4 
whose appointments are vested with the President subject to the provisions of 
5 
Civil Service Law, rules and regulations. 
6 
7.8. Have the power to call on other agencies and instrumentalities of the 
7 
govemment and private entities for cooperation and assistance in the 
8 
performance of its functions; 
9 
7.9. To impose administrative fines and/or penalties of not more than 
10 
one hundred thousand pesos (P 100,000.00) for violation of this Act, Republic 
11 
Act No. 7279 and other laws implemented by the Commission, including 
12 
pertinent rules and regulations, orders, decisions, and/or rulings; Provided, that 
13 
the Secretary may adjust such fines not more than once every three (3) years; 
14 
and, 
15 
7.10. Perform such other functions as may be provided by law or assigned 
16 
by the President. 
17 
The Secretary shall also serve as a voting member of the National 
18 
Economic and Development Authority (NEDA) Board, the goveming Boards of 
19 
the Climate Change Commission (CCC), the National Disaster Risk Reduction 
20 
Management Council (NDRRMC), and the National Land Use Committee 
21 
(NLUC). The Secretary shall be a member of NEDA's Committee on Infrastructure 
22 
(INFRACOM), 
Investment 
Coordinating 
Committee 
(ICC) 
and 
Social 
23 
Development Committee (SDC). The Secretary shall also be a member of the 
24 
body authorized to formulate, prescribe, or amend guidelines under Republic 
25 
Act No. 6957 as amended, otherwise known as the Build-Operate-Transfer (BOT) 
26 
Law. 
27 
Section 8. The Undersecretaries. - The Secretary shall be assisted by 
28 
8.1. One (1) Undersecretary for Policies, Plans and Programs, Coordination, 
29 
Monitoring and Evaluation; 


------- - - -----
, . 
- 1 
8.2. One (1) Undersecretary for Environmental, Land Use and Urban 
2 
Planning and Development; 
3 
8.3. One (1) Undersecretary for Regulation of Housing and Real Estate 
4 
Development; and. 
5 
8.4. One (1) Undersecretary for Homeowners, Homeowners Associations 
6 
and Community Development. 
7 
They shall have the powers and functions as provided for in Section 10, 
8 
Chapter 2, Book IV of the Administrative Code of 1987. The Secretary is further 
9 
authorized to delineate and assign the other functional areas of responsibility of 
10 
the Undersecretaries. 
11 
Section 9. Departmental Offices and Regional Offices. - The Department 
12 
shall establish, operate, and maintain Departmental Offices under them such as, 
13 
but not limited to: (1) Policies, Plans and Programs, Coordination, Monitoring and 
14 
Evaluation; (2) Environmental, Land Use and Urban Planning and Development; 
15 
(3) Regulation of Real Estate Development; and (4) Homeowners, Homeowners 
16 
Associations and Community Development. 
17 
There shall be Regional Offices in all of the country's regions. Each 
18 
Regional Office shall be headed by a Regional Director. 
19 
Section 10. Staffing Pattern. - The Secretary shall cause the preparation 
20 
and implementation of a staffing pattem for the Department. The development 
21 
of the staffing pattem shall be based on an assessment of the personnel 
22 
requirements of the entire Department. The remuneration structure of the 
23 
positions in the staffing pattem shall conform to the provisions of Republic Act 
24 
No. 6758, otherwise- known as the Salary Standardization Law, as amended. The 
25 
Department of Budget and Management (DBM) shall, upon its approval, fund in 
26 
full the staffing pattem of the Department. 
27 
Section 11. AdVisory Council. - The Secretary shall have the power to 
28 
establish advisory councils consisting of the Secretaries and other heads from 
29 
national govemment agencies and local govemment units, representatives 


1 
from the private sector including private developers associations, urban poor 
2 
communities, academe, and other marginalized groups, to provide a forum for 
3 
stakeholder participation and dialogue on key housing and urban development 
4 
policies, issues and concerns. Such councils shall be convened and chaired by 
5 
the Secretary of the Department of Housing and Urban Development. 
6 
CHAPTER IV 
7 
ADJUDICATION COMMISSION FOR HOUSING, LAND USE 
8 
AND URBAN DEVELOPMENT 
9 
Section 12. 
Reconstitution of the HLURB 
as the Adjudication 
10 
Commission for Housing, Land Use and Urban Development (Commission). 
11 
The HLURB is hereby reconstituted and shall henceforth be known as the 
12 
Adjudication Commission for Housing, Land Use and Urban Development, 
13 
hereinafter referred to "Commission", which shall be attached with the 
14 
Department for policy, plan and program coordination only. 
15 
Section 13. Assumption and Exercise of Adjudication Function of the 
16 
Housing and Land Use Regulatory Board (HLURB) to the Commission. The 
17 
adjudication function of the HLURB shall be assumed and exercised by the 
18 
Commission. 
19 
Section 14. 
Composition of the Commission and Qualification of 
20 
Commissioners. 
The Commission shall be composed of nine (9) full-time 
21 
commissioners; Provided, that the term of incumbent Commissioners shall be 
22 
respected; Provided further, that the subsequent appointees of the President 
23 
shall be members of the Philippine Bar of good standing and has been 
24 
engaged in the practice of law for at least ten (10) years with experience 
25 
and/or exposure in housing and/or urban development. 
26 
The Commissioners shall hold office for a period of six (6) years, unless 
27 
earlier removed for cause. 
28 
The Department Secretary shall be the Ex-Officio Chairman of the 
29 
Commission. 
-----------------
:


1 
Section 15. 
Collegiality, Divisions, and Sessions. 
The Commission shall 
2 
exercise its adjudicatory and all other powers, functions, and duties through its 
3 
Divisions. 
4 
The Commission, sitting en bane, shall be presided over by the Secretary 
5 
and shall decide only on the promulgation of rules and regulations 
6 
governing the hearing and disposition of cases before any of its Divisions 
7 
and its Arbiters in its Regional Offices, and on the formulation of policies 
8 
affecting its administration and operations. 
9 
Section 16. Precedence and SupeNision. The most senior Commissioner 
10 
shall be the presiding Commissioner of the first Division and the two (2) next most 
11 
senior Commissioners shall be the presiding Commissioners of the second and 
12 
third Divisions, respectively. 
13 
The Commission en banc shall have administrative supervision over the 
14 
Commission and its Regional Offices and all their personnel, including the 
15 
Arbiters, 
16 
Section 17, 
Decisions and Resolutions. The concurrence of two (2) 
17 
Commissioners of a Division shall be necessary for the promulgation of a 
18 
judgment or resolution. 
19 
Whenever the required membership in a Division is not complete and 
20 
the concurrence of two (2) Commissioners to arrive at a judgment or resolution 
21 
cannot be obtained, the Executive Commissioner shall designati3 into the 
22 
Division such number of additional Commissioners from the other Divisions, as 
23 
may be necessary. 
24 
The conclusions of a Division on any case submitted to it for decision shall 
25 
be reached in consultation before the case is assigned to a Commissioner for 
26 
the writing of the decision. It shall be mandatory for the Division to meet for 
27 
purposes of the consultation ordained herein. A certification to this effect 
28 
signed by the presiding Commissioner of the Division shall be issued and a 
29 
copy thereof attached to the record of the case and served upon the parties. 


1 
Section 18. Jurisdiction of Arbifers. The Arbiters shall exercise exclusive 
2 
jurisdiction to hear and decide cases involving the following: 
3 
a. Claims for refund, complaints against unsound real estate business 
4 
practices and other actions for specific performance of contractual 
5 
and statutory obligations filed by subdivision lot or condominium unit 
6 
buyer against the project owner, developer, dealer, broker or 
7 
salesman; and other complaints for violation of Presidential Decree 
8 
No. 957 and other related laws; 
9 
b. Intra-association disputes or controversies arising out of the relations 
10 
between and among members of homeowners associations or 
11 
condominium corporations; between any or all of them and the 
12 
homeowners association or condominium corporation of which they 
13 
are members, including federations of homeowners associations; 
14 
c. Inter-association disputes or controversies arising out of the corporate 
15 
relations between and among two or more homeowners associations 
16 
or condominium corporations or federations; 
17 
d. Disputes between such homeowners association or condominium 
18 
corporation and the State, insofar as it concerns their individual 
19 
franchise or right to exist and those which are intrinsically connected 
20 
with the regulation of homeowners associations and condominium 
21 
corporations or dealing with the internal affairs of such entity; 
22 
e. Suits filed in opposition to an application for certificate of registration 
23 
and license to sell, development permit for condominium projects, 
24 
clearance to mortgage, or the revocation or cancellation thereof, and 
25 
locational clearances, certifications or permits, when issued by the 
26 
HLURB/the Department; 
27 
f. Suits filed by the project owner/developer against a buyer for the 
28 
collection of unpaid amortization, cancellation of contract and/or 
29 
ejectment. 


1 
g. Eviction of informal settlers in open spaces or common areas of 
2 
subdivisions and condominiums filed by the project owner or 
3 
developer or the duly registered 
homeowners association or 
4 
condominium corporation of the project; 
5 
h. Disputes involving buyer financing agreements with any financing 
6 
institution for the purchase of condominium units or subdivision lots; 
7 
and, 
8 
i. 
Disputes involving easements within or among subdivisions projects. 
9 
j. Violations of administrative rules and regulations implementing 
10 
Sections 7, 8 and 18 of Republic Act No. 7279. 
11 
k. Disputes between landowners and developers, and between 
12 
banks/financing institutions and developers whenever the interest of 
13 
the buyers is involved; 
14 
I. 
Disputes involving the enforcement of comprehensive land use plans 
15 
(CLUPs) and/or their accompanying zoning ordinances. 
16 
Section 19. Jurisdiction of the Commission and the Secretary. The 
17 
Commission shall have the exclusive appellate jurisdiction over all cases 
18 
decided by the Arbiters. 
19 
The decision of the Commission shall be final and executory qfter fifteen 
20 
(15) calendar days from receipt thereof by the parties. 
21 
The Secretary may assume jurisdiction over any complaint or case and 
22 
decide the same or certify such case for decision to the Commission if the 
23 
controversy involves massive real estate fraud or unsound business practices of 
24 
critical socio-economic or environmental considerations that may have serious 
25 
potential impact on the interests of the sector or the general welfare. 
26 
Section 20. Powers of the Commission. - The Commission shall have the 
27 
power and authority: 


'1' 
20.1. To promulgate rules and regulations goveming the hearing and 
2 
disposition of cases before it and its Arbiters, as well as those necessary to carry 
3 
out its functions; 
4 
20.2. To administer oaths, summon the parties to a controversy, issue 
5 
subpoenas requiring the attendance and testimony of witnesses or the 
6 
production of such books, papers, contracts, records, statement of accounts, 
7 
agreements, and others as may be material to a just determination of the case; 
8 
20.3. To hold, any person in contempt directly or indirectly and impose 
9 
appropriate penalties therefor in accordance with law. 
10 
A person guilty of misbehavior in the presence of or so near any member 
11 
of the Commission or any Arbiter as to obstruct or interrupt the proceedings 
12 
before the same, including disrespect toward said 
officials, offensive 
13 
personalities toward others, or refusal to be swom, or to answer as a witness or to 
14 
subscribe an affidavit or deposition when lawfully required to do so, may be 
15 
summarily adjudged in direct contempt by said officials and punished by fine 
16 
not exceeding five thousand pesos (P5,000.00) or imprisonment not exceeding 
17 
five (5) days, or both, if it be the Commission, or a member thereof. or by a fine 
18 
not exceeding one thousand pesos (Pl,OOO.OO) or imprisonment not exceeding 
19 
one (1) day, or both, if it be an Arbiter. 
20 
The person adjudged in direct contempt by an Arbiter may appeal to the 
21 
Commission and the execution of the judgment shall be suspended pending the 
22 
resolution of the appeal upon the filing by such person of a bond on condition 
23 
that he/she will abide by and perform the judgment of the Commission should 
24 
the appeal be decided against him/her. Judgment of the Commission on direct 
25 
contempt is immediately executory and unappealable. Indirect contempt shall 
26 
be dealt with by the Commission or Arbiter in the manner prescribed ,under Rule 
27 
71 of the Revised Rules of Court (ROC); and 
28 
20.4. To enjoin or restrain, after due notice and hearing, any actual or 
29 
threatened commission of any or all prohibited or unlawful acts or to require the 


" 
' 1 
performance of a particular act in any dispute within its jurisdiction which, if not 
2 
restrained or performed forthwith, may cause grave or irreparable damage to 
3 
any party or render ineffectual any decision in favor of such party. In no case 
4 
shall a temporary or permanent injunction be issued except after a finding of 
5 
fact by the Commission, to the effect that: 
6 
a. Prohibited or unlawful acts have been threatened and will be 
7 
committed and will be continued unless restrained, but no injunction 
8 
or temporary restraining order shall be issued on account of any 
9 
threat. prohibited or unlawful act. except against the person or 
10 
persons, association or organization making the threat or committing 
11 
the prohibited or unlawfUl act or actually authorizing or ratifying the 
12 
same after actual knowledge thereof; 
13 
b. Substantial and irreparable injury to complainant's property will follow; 
14 
c. As to each item of relief to be granted, greater injury will be inflicted 
15 
upon complainant by the denial of relief than will be inflicted upon 
16 
defendants by the granting of relief; 
17 
d. Complainant has no adequate remedy at law; and, 
18 
e. Public officers charged with the duty to protect complainant's 
19 
property are unable or unwilling to furnish adequate protection. 
20 
Such hearing shall be held after due and personal notice thereof has 
21 
been served, in such manner as the Commission shall direct. to all known 
22 
persons against whom relief is sought. and also to the Chief Executive and other 
23 
public officials of the province or city within which the unlawful acts have been 
24 
threatened or committed, charged with the duty to protect complainant's 
25 
property: Provided, however, that if a complainant shall also allege that, unless 
26 
a temporary restraining order shall be issued without notice, a substantial and 
27 
irreparable injury to complainant's property will be unavoidable, such a 
28 
temporary restraining order may be issued upon testimony under oat~, sufficient. 
29 
if sustained, to justify the Commission in issuing a temporary injunction. Such a 


1 
temporary restraining order shall be effective for no longer thanlwenty (20) days 
2 
and shall become void at the expiration of said twenty (20) days. 
3 
No such temporary restraining order or temporary injunction shall be 
4 
issued except on condition that complainant shall first file an undertaking with 
5 
adequate security in an amount to be fixed by the Commission sufficient to 
6 
recompense those enjoined for any loss, expense or damage caused by the 
7 
improvident or erroneous issuance of such order or injunction, including all 
8 
reasonable costs, together with a reasonable attorney's fee, and expense of 
9 
defense against the order or against the granting of any injunctive relief sought 
10 
in the same proceeding and subsequently denied by the Commission. 
11 
The undertaking herein mentioned shall be understood to constitute an 
12 
agreement entered into by the complainant and the surety upon which an 
13 
order may be rendered in the same suit or proceeding against said 
14 
complainant and surety, upon a hearing to assess damages, of which hearing, 
15 
complainant and surety shall have reasonable notice, the said complainant 
16 
and surety submitting themselves to the jurisdiction of the Commission for that 
17 
purpose. But nothing herein contained shall deprive any party having a claim or 
18 
cause of action under or upon such undertaking from electing to pursue his/her 
19 
ordinary remedy by suit at law or in equity: Provided further, that the reception 
20 
of evidence for the application of a writ of injunction may be delegated by the 
21 
Commission to any of its Arbiters who shall conduct such hearings in such places 
22 
as he/she may determine to be accessible to the parties and their witnesses and 
23 
shall submit thereafter his/her recommendation to the Commission. 
24 
20.5. To exercise such other powers as are implied, ne~essary, or 
25 
incidental to carry out the express powers granted to the Commission. 
26 
Authority is hereby vested in the Commission to directly utilize the income 
27 
generated from fees, fines, charges, and other collections in the performance of 
28 
its functions, to defray operating expenses. 


, . 
. "1' 
Section 21. 
Compensation. A Commissioner shall receive a minimum 
2 
monthly compensation corresponding to Salary Grade 30 as prescribed under 
3 
Republic Act No. 6758, as amended. 
4 
The incumbent full time Commissioners of the present HLURB shall 
5 
remain in office unless they opt to avail of the retirement and separation 
6 
benefits as provided for in Section 34 of this Act or are earlier removed for 
7 
cause. 
8 
Section 22. The Arbiters, Qualifications and Compensation. The existing 
9 
HLURB Arbiters shall be deemed qualified. Additional Arbiters shall have the 
10 
following qualifications: 
11 
22.1 No person shall be appointed as Arbiter unless he or she is a member 
12 
of the Philippine Bar of good standing and has been engaged in the practice of 
13 
law for at least seven (7) years with at least three (3) years experience or 
i 
14 
exposure in the field of real estate and land use development cases, and, 
15 
22.2 The Arbiters shall receive a minimum monthly compensation 
16 
corresponding to Salary Grade 28 as prescribed under Republic Act No. 6758, as 
17 
amended. 
18 
The President shall appoint Arbiters, as may be necessary, upon the 
19 
recommendation of the Commission. 
20 
Section 23. The Sheriff. 
The Commission shall appoint a Sheriff or such 
21 
number of Sheriffs in its Central and Regional Offices in accordance with the 
22 
provisions of the Civil Service Law, rules and regulations. The Sheriff shall be 
23 
responsible for the service and execution of all writs, summonses, and orders and 
24 
other processes of the Commission. 
25 
Section 24. Appeals. Decisions, awards, or orders of the Arbiters shall 
26 
be final and executory unless appealed to the Commission within fifteen 
27 
(15) calendar days from receipt of such decisions, awards, or orders. The 
28 
appeal may be entertained only on any of the following grounds: 


, .. 
'1 
24.1 There is prima facie evidence of abuse of discretion on the part 
2 
of the Arbiter in rendering the questioned decision, award, or order; 
3 
24.2 The decision, order, or award was secured through fraud or 
4 
coercion, including graft and corruption; 
5 
24.3 The appeal is made purely on questions of law; and, 
6 
24.4 Serious errors in the findings of facts are raised, which errors 
7 
would cause grave or irreparable damage or injury to the appellant. 
8 
Section 25. Criminal Prosecution. The criminal prosecution for violation 
9 
of housing laws and regulations shall be instituted before criminal Courts having 
10 
appropriate jurisdiction. 
11 
Section 26. Pending Cases. All cases pending in regular Courts arising 
12 
from or in connection with the implementation of pertinent laws on housing 
13 
shall continue to be heard, tried, and decided to their finality by such Courts. 
14 
CHAPTER V 
15 
ATTACHED AGENCIES 
16 
Section 27. Attached Agencies and Corporations. The following agencies 
17 
and corporations are hereby attached to the Department for policy and 
18 
program coordination, monitoring and evaluation: 
19 
27.1 National Housing Authority (NHA); 
20 
27.2 Home Guaranty Corporation (HGC); 
21 
27.3 National Home Mortgage Finance Corporation (NHMFC); 
22 
27.4 Home Development Mutual Fund (HDMF); 
23 
27.5 Social Housing Finance Corporation (SHFC); and, 
24 
27.6 Adjudication Commission for Housing, Land Use and Urban 
25 
Development (Commission). 
26 
All these Agencies shall continue to function according to existing laws 
27 
and their respective Charters. However, each of the heads of the attached 
28 
agencies shall enter into a performance contract annually with the Department 
29 
Secretary. Such contracts shall embody the national targets on housing and 


, , ' 
,1 
urban development and shall include the over-all administration of the agency 
2 
and the streamlining of personnel for effective and efficient service. 
3 
Any reorganization, merger, streamlining, abolition or privatization of any 
4 
attached government owned and controlled corporation (GOCC) initiated by 
5 
the Governance Commission on GOCCs under Republic Act 10149, otherwise 
6 
known as the GOCC Governance Act of 2011, shall require the concurrence of 
7 
the Secretary. 
8 
Section 28. Nature of Attachment. The Secretary shall be elected as 
9 
. Chairperson of the governing Boards of the National Housing Authority (NHA), 
10 
Home Development Mutual Fund (HDMF), National Home Mortgage Finance 
11 
Corporation (NHMFC), Social Housing Finance Corporation (SHFC), and Home 
12 
Guaranty Corporation (HGC). 
13 
CHAPTER VI 
14 
OTHER PROVISIONS 
15 
Section 29. Social Housing One-Stop Processing Centers (SHOPCs) -
16 
The Department may establish SHOPCs in the Regions, which shall 
17 
centralize the processing and issuance of all required housing-related 
18 
permits, clearances, and licenses in accordance with Executive Order No. 
19 
45, series of 2001 entitled "Prescribing time periods for issuance of housing 
20 
related certifications, clearances and perrnits, and imposing sanctions for 
21 
failure to observe the same": Provided, that for the foregoing purpose, the 
22 
respective ceilings for socialized, low cost/economic and middle-income 
23 
housing shall be jointly determined by the Department and the NEDA: 
24 
Provided further that at any time, but not more than once every two 
25 
years, such ceilings may be reviewed or revised to conform to prevailing 
26 
economic conditions. 
27 
All agencies involved in the issuance of said permits, clearances and 
28 
licenses shall be represented in the SHOPC and shall assign to SHOPC 


'1 
regional centers personnel who shall be sufficiently authorized to process 
2 
and issue the same. 
3 
Section 30. Identification and Designation of Lands for Housing and 
4 
Urban and Rural Development. - For the purpose of designating lands for 
5 
housing and urban and rural development, the Department of Housing 
6 
and Urban Development, the Department of Environment and Natural 
7 
Resources (DENR), the Department of Agrarian Reform (DAR) Department 
8 
of Agriculture (DA), and the Land Registration Authority (LRA) shall, within 
9 
one hundred eighty (180) days from the effectivity of this Act, jointly 
10 
identify agricultural lands which under Republic Act 
No. 6657, as 
11 
amended, otherwise known as the Comprehensive Agrarian Reform Law, 
12 
and other existing laws, rules and regulations are already exempted from 
13 
conversion requirements: Provided, that the list shall exclude lands that are 
14 
declared as non-negotiable or protected from conversion under existing 
15 
laws and issuances and those lands covered under Republic Act No. 6657: 
-
16 
Provided further, that the designation of lands for housing and urban and 
17 
rural development purposes shall neither prejudice the rights of qualified 
18 
beneficiaries under Republic Act No. 6657, nor undermine the protected 
19 
agricultural areas intended to ensure the attainment of foo,d security 
20 
under Republic Act No. 8435, otherwise known as Agricultural and Fisheries 
21 
Modernization Act (AFMA) of 1997 and other existing laws: Provided, also 
22 
that in the case of lands exempted from conversion though these have 
23 
been approved by the DAR, if these are contested by affected individual 
24 
or community beneficiaries, it shall not be allowed to proceed with any 
25 
horizontal or vertical development without need for any prior clearance or 
26 
approval from the DAR or the DA consistent with the terms of the 
27 
approved order or conversion: Provided, finally, that all idle government 
28 
lands in highly urbanized cities are hereby prioritized for housing and urban 
29 
development purposes, 


----------------------------------------------
.. 
'1 
CHAPTER VII 
2 
TRANSITORY PROVISIONS 
3 
Section 31. Absorption of Employees of the Consolidated Agencies. The 
4 
existing civil servants of HUDCC and HLURB shall enjoy security of tenure and be 
5 
absorbed by the Department or the Commission, in accordance with their 
6 
staffing pattems and the selection process as prescribed under Republic Act No. 
7 
6656 on the Rules on government reorganization, unless the civil servant wants to 
8 
avail of Section 34, hereof. 
9 
Section 32. Transfer of Assets and Obligations. The following dispositive 
10 
actions shall be implemented within six (6) months from the effectivity of this Act: 
11 
32.1 The assets, equipment, funds, choses in action, records, and pertinent 
12 
transactions of HUDCC and HLURB shall be transferred to the Department and 
13 
the Commission; and, 
14 
32.2 The Department and the Commission shall cause the creation of 
15 
additional positions and augment their budget appropriations, as may be 
16 
necessary. 
17 
Section 33. 
Transition Period. All transfer of functions, assets, funds, 
18 
personnel, equipment, properties, transactions, and personnel in the affected 
19 
national government agencies, and the formulation and implementation of the 
20 
internal organic structures, staffing patterns, operating systems, and revised 
21 
budgets of the Department and the Commission, shall be completed within six 
22 
(6) months from the effectivity of this Act, during which existing personnel shall 
23 
continue to assume their posts in holdover capacities until new appointments 
24 
are issued. 
25 
Section 34. Separation from the Service. Any employee of HUDCC and 
26 
HLURB who opts to avail of separation from service within six (6) months from the 
27 
effectivity of this Act as a result of the consolidation and/or reorganization under 
28 
the provisions of this Act shall, within one (1) month from their separation from 
29 
the service, receive a separation pay equivalent to two hundred fifty percent 


, ' 
, 
\ ". 
_ 1 
(250%) of the latest monthly basic salary for every year of service in the 
2 
govemment. Provided, that those who are qualified to retire under existing 
3 
retirement laws shall be allowed to retire under said laws and shall receive the 
4 
benefits within ninety (90) days from their separation from service. 
5 
The miscellaneous personnel benefits, the organization adjustment, and 
6 
corporate funds may be used to fund the purpose. 
7 
Section 35. Abolition of the Housing and Urban Development Coordinating 
8 
Council (HUDCC) and the Transfer of Rights and Assets. The Housing and Urban 
9 
Development Coordinating Council is hereby abolished. 
10 
The Department shall, by virtue of this Act, be subrogated to all rights and 
11 
assume all the liabilities of the HUDCC and HLURB, except those that may 
12 
hereafter be transferred to or absorbed by the Commission. 
13 
Section 36. 
Formulation of Implementing Rules and Regulations. 
The 
14 
HUDCC, HLURB, DBM and Civil Service Commission (CSC) shall prepare and issue 
15 
the implementing rules and regulations (IRR) within sixty (60) days upon the 
16 
effectivity of this Ad. 
17 
CHAPTER VIII 
18 
IMPLEMENTING AUTHORITY AND FUNDING 
19 
Section 37. Implementing Authority. The HUDCC Chairman is hereby 
20 
authorized to undertake the implementation of the provisions of this Act and 
21 
implement the necessary organizational changes within six (6) months or until a 
22 
Department Secretary has been appointed and has assumed office. 
23 
Section 38. Funding. The amount needed for the initial implementation of 
24 
this Act shall be charged against the current year's appropriations of HUDCC 
25 
and HLURB. Thereafter, such sums as may be necessary for the continued 
26 
implementation of this Act, shall be included in the General Appropriations Act 
27 
(GAA). 
28 
29 


1 
CHAPTER IX 
2 
MISCELLANEOUS PROVISIONS 
~ 
3 
Section 39. Mandatory Review of the Implementation of this Act. The 
4 
Congress shall undertake a mandatory review of the implementation of this Act 
5 
at the end of the third year from the date of its effectivity. 
6 
Section 40. Repealing Clause. All laws, executive orders, proclamations, 
7 
rules, regulations and other issuances or parts thereof which are inconsistent with 
8 
the provisions of this act are hereby repealed, amended or modified 
9 
accordingly. 
10 
Section 41. Separability Clause. If, for any reason or reasons, any portion 
11 
or provision of this Act shall be held unconstitutional or invalid, the remaining 
12 
provisions not affected thereby shall continue to be in full force and effect. 
13 
Section 42. Effectivity. This Act shall take effect fifteen (15) days after its 
14 
complete publication in at least two (2) national newspapers of general 
15 
circulation. 
Approved,