Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

THIRTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. 69

Introduced by : REP. RAUL V. DEL MAR,

EXPLANATORY NOTE

The Constitution, in tasking the State to promote the quality of life of the citizens,
mandates a program of housing “which will make available at affordable cost decent
housing and basic services to underprivileged and homeless citizens in yrban centers and
resettlement areas”, and directs a system of resettlement for urban and rural dwellers.

It is precisely in this light, and to give specific attention to this constitutional
policy, that the attached bill seeking the creation of a Department of Housing and
Resettlement is being submitted.

In essence, the attached bill directly focuses on the housing needs of the poor and
the homeless and the low income eamers of both the public and private sectors. It
likewise focuses on resettlement and relocation of the less unfortunate, particularly those
occupying hazardous areas. The proposed Department, therefore, will be concentrating
its efforts, time and resources on this specific mandate, all for the benefit of the greater
majority of the citizens - the poor and the low-salaried. The housing needs and
requirements of those who are neither poor nor low-salaried shall not be the concern of
the department.

This proposed legislation recognizes that one of the minimum standards of
decency is the right to shelter, the right to decent living conditions and that this right can
only be given substance if the government now takes the side of the poor, if the
government directly comes in to make things happen for them. The Department of
Housing and Resettlement is one big step towards enabling the government to directly
and significantly meet this challenge. Anything less would make it no different from
what is happening now to the government’s effort in housing which does not give the
poor the priority they deserve.

Needless to say, it is only when the government ensures the minimum standards
of decency” can the poor and the low income earners be inspired and enabled to strive
harder to realize their full potentials.

In this light, approval of the Bill is strongly requested.

hf DEL MAR



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

THIRTEENTH CONGRESS
First Regular Session

69

HOUSE BILL Ni

Introduced by : REP. RAUL V. DEL MAR

AN ACT
CREATING THE DEPARTMENT OF HOUSING AND RESETTLEMENT,
ABOLISHING THE EXISTING HOUSING AGENCIES, DEFINING ITS POWERS AND
FUNCTIONS, PROVIDING FUNDS THEREFOR AND FOR OTHER PURPOSES

Be it enacted by the Senate and the House of Representatives of the Philippines in. Congress
assembled:

CHAPTERI
GENERAL PROVISIONS
SECTION 1. Title, ~ This Act shall be known and cited as the “Omnibus Housing and
Urban Development Act of 2004”.
SEC. 2. Declaration of Policy. —It is hereby declared a 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;

(©) 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;

(© Develop a sustainable and viable housing finance system that shall tap alternative,
including non-traditional sources of funds, for the government's housing program;

(4) Rationalize and strengthen the urban development and shelter delivery system of the
government by enhancing local autonomy and decentralization and provide local government
units more power, authority, responsibility, and resources; and

(e) Encourage more effective peoples’ participation by institutionalizing their
involvement at all levels of the urban planning and development 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) “Abot-Kaya Pabahay Fund” refers to the fund established under Republic Act No.
6846, otherwise known as “The Social Housing Support Fund Act”, as amended by Republic Act
No. 7835, otherwise known as “The Comprehensive and Integrated Shelter Financing Act of
1994”, The Fund shall be used exclusively to enhance the affordability of low-cost hdusing by
low-income families through its four (4) components, namely: amortization support,
development financing, cash flow guaranty, interest subsidy and liquidity support.

(b) Agricultural Land Conversion refers to the undertaking of any activity that modify or
alter the physical characteristics of agricultural lands to render them suitable for non-agricultural
purposes with an approved order of conversion from the secretary of the Department of Agrarian
Reform (DAR).

(c) CISFA — refers to Republic Act No. 7835.

(@) “Community mortgage program” refers to the mortgage financing program of the
National Home Mortgage Finance Corporation (NHMFC) which assists legally-organized
associations of underprivileged and homeless citizens to purchase and develop a tract of land
under the concept of community ownership.

(e) “Formal sector” refers to members of the Government Service Insurance System
(GSIS), Home Development Mutual Fund (HDMF), and the Social Security Systein (SSS).

( “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 enjoy
security of tenure;

(g) “Informal sector” refers to non-members of the GSIS, HDMF, and the SSS.

(h) “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.

(@ “Secondary mortgage market” — refers to the system which entails purchase,
acquisition, discounting or refinancing of loan and mortgage packages or participations therein.
These instruments, in turn, are traded in the financial market through issuance and/or sale of
bonds, promissory notes, debentures, conveyances and other finangial instruments or
participation therein, backed by the same pool or mortgages, securitizations, and ather agsets.

() “Socialized housing” refers to housing program and projects covering houses and lots
or homelots only undertaken by the government or the 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,

(k) “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.

(@ “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; and

(m) “Urban renewal” refers to the idea of consciously renewing the outwom areas of
towns and cities, through redevelopment and rehabilitation.

SEC. 4. Statement of Objectives. - Toward this end, the State shall:

(@) 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 a continuing comprehensive,
affordable and sustainable housing program;

(©) Establish a sustainable housing finance system that ensures affordable housing
through low down payment, long-term financing and low interest rate;

(@) Improve coordination of national government housing and urban development
policies and programs and extend adequate technical and material assistance to local government
units;

(©) Encourage participation of all stakeholders in housing and urban development, such
as local government units (LGUs), non-government organizations (NGOs), people’s organization
(POs) and the private sector;

(£) 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 of
habitability of housing.


CHAPTER IL
THE DEPARTMENT PROPER

SEC. 5. Creation of the Department of Housing and Urban Development. - To carry
out the above-declared policy, there is hereby created a Department of Housing and Urban
Development, 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;

(b) Provide for the development of: (1) a sustainable market-oriented 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, in a just and humane
manner;

(€) Supervise all corporations and agencies attached to the Department namely: Home
Guaranty Corporation (HGC), National Housing Authority(NHA), National Home Mortgage
Finance Corporation (NHMFC), Home Development Mutual Fund (HDMF), and Housing and
Urban Development Adjudication Commission (HUDAC), 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;


() Promulgate, amend or repeal such rules and regulations as may be necessary to
complement the intent and purposes of this Act, which, upon approval by the President and after
due publication thereof, shall have the force of law;

(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 and monitoring and assessment
mechanism and monitor and report on the performance of the sector, national government
agencies and LGUs in urban development and housing to enable continuing improvements in
sector policy and strategy formulation;

(i) Adopt and promulgate development standards and guidelines that shall govern the
preparation and implementation of land use plans and zoning ordinances of LGUs and property
development of the public and private sector;

(j) Provide technical assistance and information to assist LGUs in developing solutions to
problems on housing, community, and urban development and/or renewal;

(&) 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;

(1) 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;

(m) Call on other agencies or instrumentalities of the government and private entities for
cooperation and assistance in the performance of its functions;

(n) Monitor compliance and provide policy directions, standards and technical assistance
to LGUs in the preparation of their respective land use plans and zoning ordinances, subject to
the over-all land use plan of the regional development councils and the NEDA;

(0) 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;

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


(q) 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 which shall include a master list of beneficiaries;

(®) 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;

(8) 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 use and urban development to be
extended through multilateral or bilateral assistance program;

(® Determine, fix and collect reasonable amounts to be charged as administrative fees,
fines and penalties; as well as issue motu propio, after the conduct of appropriate investigation,
notices of violation, cease and desist and/or closure and demolition orders, ejectment and
summary abatement orders, necessary for the effective implementation of all laws, rules and
regulations, and other legal issuances enforced by the Department;

(u) 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

(¥) Perform such other acts not inconsistent 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, 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 system 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;


(©) Call on other government and private entities for cooperation and assistance in the
performance and discharge of the Department's functions;

(@) Coordinate with LGUs, other agencies, and public and private interest groups,
including NGOs and POs on Department policies and initiatives;

(©) Restructure the intemal organization of the Department, subject to the approval of the
President;

( Recommend to the President on the restructuring of the structures of its attached
agencies and 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 (2)
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
(3) Assistant Secretaries who shall be career offices 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 shall have the following Bureaus: (a) Financial
and Institutional Development Bureau, (b) Urban Development Bureau, (c) Housing Technology
Bureau, and (d) Realty Regulation and Consumer Protection Bureau, and (e) Settlements and
Social Housing Bureau.

‘The Bureaus shall perform the following functions:


(a) Financial and Institutional Development Bureau
(1) Provide fiscal and financial incentives to LGUs, the private sector, NGOs and POs to
encourage their full participation in ensuring adequate housing stock especially for low-income

familie

(2) Institute a mechanism to ensure 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 market-oriented 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/renewal
programs, housing and resettlement, including the restoration of neighborhoods, the investment
in or improvement of public facilities, and the rehabilitation of housing;

(©) 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) Accredit, train, and extend assistance to homeowners’ associations or cooperatives of
targeted beneficiaries for purposes related to housing, and evaluate and recommend the same for
possible availment of a housing program or project;

(8) Monitor the implementation of projects and programs under its jurisdiction; and

(9) Perform such other related functions as may be assigned to it by the Secretary.

(b) Urban Development Bureau

(1) Promulgate appropriate rules and regulations for the proper implementation and
enforcement of predetermined national standards and guidelines on land use, urban planning and
development;

(2) Install new and appropriate mechanisms for the extension of technical and other
forms of assistance to LGUs to ensure that their land use plans and zoning ordinances are
consistent with prescribed standards and guidelines and national policies and other issuances of
the Department and the NEDA;

(3) Coordinate with the Public Estate Authority (PEA) 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;


(4) Assist the LGU in undertaking a rational, well-balanced, orderly and efficient
redevelopment/renewal of existing urban communities;

(5) Assist in the formulation and updating of national objectives for housing and urban
development, specifically the National Urban Development Framework;

(6) Monitor the implementation of projects and programs under its jurisdiction; and

(7) Perform such other related functions as may be assigned to it by the Secretary.

(©) 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 and within the reach of the poor without
sacrificing safety requirements, 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 (BOD);

(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.

(@ Realty Regulation and Consumer Protection Bureau

(1) Oversee the enforcement of the approved rules, regulations and standards on all types
of housing developments such as subdivision, condominium, townhouse, single-detached or
multi-unit housing, industrial subdivisions, industrial condominiums, farm subdivisions, resort
and leisure estates, memorial parks, office/commercial condominiums, condominium-hotels
(condotels) and commercial centers;

(2) Oversee the issuance by the regional offices of certificates of registration and licenses
to sell for all real estate development projects, and the collection of the necessary penalties, fines
and fees, and monitor, assess and investigate compliance with approved subdivision and
condominium plans;

(3) Continually streamline the implementation and enforcement of regulations, including
the regulatory aspect of the urban land reform program, the Subdivision and Condominium


Buyer’s Protective Decree, land value and building rental regulations, Rent Control Law and
other related laws;

(4) Undertake the acceptance and initial processing of complaints of housing related
cases mentioned in Sec. 23 of this Act and the referral of the same to the housing arbiters;

(5) Accredit duly-licensed brokers, through their organizations, to source lands for
project development and to market certain housing inventories or to solicit qualified
beneficiaries;

(6) Accredit developers to undertake the development of certain urban lands;

(7) Register, issue certificates of incorporation to, and regulate homeowners’ associations
and condominium corporations organized pursuant to Presidential Decree No. 957, Republic Act
No. 4726, Presidential Decree No. 902-A and other related laws;

(8) License real estate brokers, real estate appraisers and real estate consultants;

(9) Develop and implement real estate consumer education and protection programs;

(10) Promote public trust and consumer education through the implementation of a
strategic communications plan that will offer timely dissemination of accurate and updated
information on the department's policies, plans, programs and projects;

(11) Monitor the implementation of projects and programs under its jurisdiction; and

(12) Perform such other related functions as may be assigned to it by the Secretary.

(© 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 provision, upgrading provision 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 and
demolition activities and for this purpose, issue relocation/eviction compliance clearances for
national or local government projects which will involve the eviction or demolition of structures
or homeless and underprivileged citizens in accordance with Republic Act No. 7279 (UDHA)
and implementing rules and regulations (IRR);

(4) Implement the conduct of pre-election and post-relocation activities for national
government programs and projects in accordance with Section 28 of Republic Act No. 7279
(UDHA) and IRR;


(5) Coordinate with the local housing board or any special body on housing or urban poor
concems within the LGUs and other concerned agencies on the pre-relocation and post election
activities in accordance with Section 28 of Republic Act No. 7279 (UDHA) and IRR;

(6) Monitor compliance with the balanced housing requirement under Republic Act No.
7279 (UDHA) and 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 and NGOs 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) Administer the amortization support component of the Abot-Kaya Pabahay Fund, and
other similar funds;

(10) 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-rural-urban migration;

(11) Monitor the implementation of projects and programs under its jurisdiction; and

(12) Perform such other related functions as may be assigned to it by the Secretary.

SEC. 13. Services. - The Department shall have the following Services: (2) 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;

(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 market-oriented housing finance system to ensure the adequate
flow of private funds into the primary and secondary mortgage markets;

(4) Develop clearly-defined, transparent and well-targeted housing subsidy mechanisms
to enhance access by low-income housing beneficiaries;



(5) Establish and maintain a management information system and sub-systems for
monitoring and evaluating Development-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 goverament agencies

and instrumental
(b) Administrative and Financial Service
(1) Provide the Department with economical, efficient and effective services relating to

ies.

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.

(©) 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;

(3) Draft, recommend and review proposed legislative measures;

(4) Prepare and maintain and 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;

(© 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 inter-agency 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) Provide/extend legal advice assistance to other offices of the Department.

SEC. 14. Regional and Field Offices. - Consistent with the requirements of economy
and efficiency, there shall be established a Regional Office, which shall be headed by a Regional
Director, in every administrative region and in as many field offices as are necessary: Provided,
That they are established in accordance with the regional 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 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;

(@) Direct and evaluate the performance of field offices in the region;

(©) Monitor, investigate and assess compliance with approved subdivision and
condominium plans, endorse and recommend the filing of appropriate charges for violations
thereof,

(© Coordinate with the LGUs with regard to their local urban development, land use and
shelter plans, 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;

(g) Administer the registration of homeowners’ associations and condominium
corporations;

(h) Undertake the issuance of certificates of registration and licenses to sell for
condominium and subdivision projects, and collect fees for the purpose;

(@ Advise and coordinate the plans and programs of the Regional and Field Offices of the
attached agencies and corporations; and


(® Perform such other functions as may be provided for by law and by the Secretary.

SEC. 16. Functions of Field Directors and Offices. - A Field Director shall head a
Field Office and shall be accountable to the Regional Director. The Field Officer shall directly
administer Department programs in his/her jurisdictional area and shall ensure their proper
implementation.

The field director shall maximize his/her detail in the areas under jurisdiction by closely
coordinating with the local planning officer, the pertinent sanggunian committee, the Urban Poor
Affairs Office (UPAO), and the local housing boards, if any, for program monitoring,
implementation and enforcement.

SEC. 17. Relationship Among the Regional and Field Offices of the Department, its
Attached Agencies and Corporations, and the LGUs. ~ The relationship among the Regional
and Field Offices of the Department, its attached agencies and corporations, and the LGUs, shall
be purely coordinative.

CHAPTER III
ATTACHED AGENCIES AND CORPORATIONS

SEC. 18. Attached Corporations and Agencies and their Functions, — Any provision of
Jaw or their respective charters to the contrary notwithstanding, the following corporations and
agencies are hereby attached to the Department for general supervision, and policy and program
coordination. 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:

(a) Home Guaranty Corporation (HGC);

(b) National Housing Authority (NHA);

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

(d) Home Development Mutual Fund (HDMF);

(©) Housing and Land Use Regulatory Board (HLURB), hereby renamed the Housing and
Urban Development Adjudication Commission (HUDAC).

Any and all exemptions from the compensation and position classification provided for
under Republic Act No. 6758, otherwise known as the “Compensation and Position
Classification Act of 1989" which were previously granted to any and all of the abovementioned
attached agencies and corporations, are hereby withdrawn.

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 HGCC, NHA, NHMFC and HDMF.


SEC. 19. Reconstitution of the Governing Bodies of Attached Corporations and
Agencies. — The governing bodies of the corporations and agency attached to the Department are
hereby reconstituted as follows, any provision of law or their respective charters to the contrary
notwithstanding:

(a) Home Guaranty Corporation (HGC). The Board of Directors of the HGC shall be
composed of the Secretary as ex officio chairman, the Secretary of Finance as vice chairman, and
the following as members: the President of the HGC, the Director-General of the NEDA, and
three (3) others to be appointed by the President of the Philippines, who shall serve for a term of
five (5) years: Provided, That the person appointed shall be of good moral character, of
unquestionable integrity, of known probity and patriotism, and with expertise and experience of
at least ten (10) years in business, finance, and in their professions: Provided, further, That in
the event of a vacancy, the successor appointed to fill the said vacancy shall serve only the
unexpired portion of the term of the member he succeeds.

(b) National Housing Authority (NHA). The Board of Directors of the NHA shall be
composed of the Secretary as chairman, the General Manager of the Authority as vice chairman,
and the following as members; the Secretary of the Department of Interior and Local
Government (DILG), the Chairman of the National Anti-Poverty Commission, the Chief
Executive Officer of the NHMFC and two (2) others to be appointed by the President of the
Philippines, one of whom shall represent the real estate and housing industry and the other shall
represent of NGOs or POs.

(©) National Home Mortgage Finance Corporation (NHMFC). The Board of Directors
of the NHMFC shall be composed of the Secretary as chairman, the Chief Executive Officer of
the NHFMC as vice-chairman, and the following as members: the Administrator of the SSS, the
General Manager of the GSIS, the Chief Executive Officer of the HDMF, and two (2) others to
be appointed by the President of the Philippines, one of whom shall represent the real estate and
housing industry and the other shall represent the NGOs or POs.

(a) Home Development Mutual Fund (HDMF). The Board of Trustees of the HDMF
shall be composed of the Secretary as chairman, the Secretary of the Department of Finance
(DOF) as vice chairman, and the following as members: the Secretary of Department of Budget
and Management (DBM), the Secretary of the Department of Labor and Employment (DOLE),
the Chief Executive Officer of the HDMF, two (2) representatives of private employees, two (2)
representatives of private employers, one (1) representative of government employees, and one
(1) representative of the real estate and housing industry.


The representatives of the private employers and employees shall each be appointed by
the President for a term of a term of two (2) years: Provided, however, That of the first set to be
appointed, one (1) representative of the employees and one (1) representative of the employers
shall have a term of only one (1) year. The representatives of the government employees and the
real estate and housing industry shall be appointed by the President for a term of two (2) years.
CHAPTER IV
REAL ESTATE ADJUDICATION COMMISSION

SEC. 20. Renaming Housing and Land Use Regulatory Board (HLURB). ~The
HLURB hereby renamed and reconstituted as the Housing and Urban Development Commission
(HUDAC), which shall be attached to the Department for program and policy coordination and
administrative supervision.

The regulatory functions of the former HLURB shall be performed by the Department
with the HUDAC retaining the quasi-judicial functions thereof.

The Commission shall be composed of a chairman and eight (8) full-time members to be
appointed by the President, majority of whom shall be members of the Philippine Bar while the
others shall have a background or experience in urban development planning, management,
architecture, civil engineering or other related fields. The chairman shall have the rank of a
Commission Chairman IV while the commissioners shall each have the rank of a Commission
Member IV. They must have been engaged in the practice of their respective professions or
specialization or employed in an appropriate officer for a period of at least five (5) years. In
addition, no person who has been convicted of a crime involving moral turpitude shall be
appointed as a chairman or a member of the Commission.

The incumbent full-time commissioners of the present HLURB shall remain in office
unless they opt to avail of the retirement and separation benefits provided in Section 38 of this
Act or are sooner removed for cause.

Upon expiration of their terms, they shall be entitled to retire under existing laws, if they
are so qualified to retire thereunder, or to receive a compulsory retirement gratuity equivalent to
the total of two (2) times their basic salary as commissioner, for every year of service, whichever
is higher.

The Commission may set en banc or in three (3) divisions, each composed of three (3)
members. The Commission shall sit en banc only for purposes of promulgating rules and
regulations governing the hearing and disposition of cases before any of its divisions and
regional branches, hearing and disposition of motions for reconsideration and formulating
policies affecting its administration and operations. The Commission shall exercise its


adjudicatory and all other powers, functions and duties through its divisions: Provided, That the
commission sitting en banc may, on temporary or emergency basis, allow cases within the
jurisdiction of any division to be heard and decided by any other division whose docket allows
the additional workload and such transfer will not expose litigants to unnecessary additional
expense.

The concurrence of two (2) commissioners of a division shall be necessary for the
pronouncement of judgment or resolution. Whenever the required members in a division is not
complete and the concurrence of two (2) commissioners to arrive at a judgment or resolution
cannot be obtained, the chairman shall designate such number of additional commissioners from
the other divisions as may be necessary.

The conclusions of a division on any case submitted to it for decision shall be reached in
consultation before the case is assigned to a member for the writing of the decision. It shall be
mandatory for the division to meet for purposes of the consultation ordained herein. A
certification to this effect signed by the presiding commissioner of the division shall be issued
and a copy thereof attached to the record of the case and served upon parties.

The Commission, when sitting en banc shall be assisted by the executive clerk and, when
acting through its divisions, by the division executive clerks in the performance of such similar
or equivalent functions and duties as are discharged by the Clerk of Court and Deputy Clerks of
Court of the Court of Appeals.

SEC. 21. Term and Compensation. - The members of the HUDAC shall be appointed
for a term of six (6) years and without reappointment. Appointment to any vacancy shall be only
for the unexpired term of the predecessor and shall receive the same salaries and emoluments of
a Commissioner of the National Labor Relations Commission (NLRC).

SEC. 22. Power and Authority of the Commission, - In the exercise of its judicial
functions, the HUDAC shall be governed by the principles of justice, equity and fairness. It shall
act as an impartial and independent tribunal and shall render judgment in accordance with law,
evidence and merit of the case. In particular, the HUDAC shall have the following powers and
authorities:

(a) Promulgate rules and regulations governing the hearing and disposition of cases filed
before it and those pertaining to its internal functions and such other regulations as may be
necessary to carry out the purposes of this Act: Provided, That it shall not be bound by technical
rules of procedures but shall proceed to hear and decide all cases, disputes or controversies in a
most expeditious manner, employing all reasonable means to ascertain the facts of every case


including conducting clarificatory hearing, if necessary, in accordance with justice, equity and
merit;

(6) Exercise exclusive appellate jurisdiction over all cases decided by the housing and
urban development arbiters. However, the Secretary may assume jurisdiction over any
complaint or case and decide the same or certify such case for decision by the Commission if, in
his opinion, he believes that the controversy involves massive fraud or unsound business
practices or critical socioeconomic or environmental considerations that has serious potential
impact on the interests of the sector of the general welfare;

(c) Administer oaths, summon the parties to a controversy, issue subpoenas requiring
attendance and testimony of witnesses or the production of such books, papers, contracts,
records, agreements, and other documents of similar nature as may be material to a just
determination of the matter under investigation or hearing conducted in pursuance under this
Act;

(d) Issue cease and desist orders, preliminary or permanent injunctions, whether
prohibitory or mandatory, in all cases in which it has jurisdiction, and in which the pertinent
provisions of the rules of civil procedures shall apply;

(©) Hold any person in contempt, directly of indirectly, and impose appropriate penalties
therefore;

(f) Impose administrative fines and/or penalties for violation of this Act, Republic Act
No. 7279, and other laws implemented by the HUDAC, including pertinent rules and regulations,
orders, decisions and rulings: Provided, That the maximum imposable fined or penalties shall
not exceed Five hundred thousand pesos (P500,000.00);

(g) To establish offices to cover as many provinces and cities, whenever and wherever it
may b expedient, necessary and feasible;

(h) Deputize any law enforcement agency in the execution of its final orders, rulings or
decisions;

(i) Directly utilize income generated from fees, fines, charges and other collections in the
performance of its functions to defray operating expenses and provide allowances for its
personnel;

@) Issue writs, orders to execute demolition, or seizure or closure of property in
accordance with its decision; and

(k) Exercise such other powers as implied, necessary or incidental to the carrying out the
express powers granted to the HUDEC or to achieve the objectives and purposes of this Act, and
other laws implemented by the Commission,


The Chairman, aided by the Executive Clerk Court IV shall have administrative
supervision over the Commission and its regional branches and all its personnel including the
Housing and Urban Development Arbiters.

SEC. 23. Jurisdiction of the Housing and Urban Development Arbiters. - The Housing
and Urban Development Arbiters shall exercise have original and exclusive jurisdiction to hear
and decide cases of the following:

(@) On Real Estate

(1) Unsound and fraudulent real estate business practices;

(2) Claims for refund against project owners, developers, dealers, brokers or
salespersons;

(3) Specific performance of contractual and statutory obligations filed by buyers of

subdivision lots or condominium units against the owner, developer, dealer, broker or
salesperson;

(4) Squatting on subdivision lots;

(5) Disputes involving buyer-financing agreements with any financing institution for
condominium/subdivision projects;

(6) Easements or rights of way affecting or involving subdivision and condominium
projects;

(7) Disputes between: (i) landowners and developers, and (ii) banks and developers,
whenever the interest of buyers of subdivision lots, or house and lots, or condominium units are
involved;

(8) Partial redemption and release of mortgage titles of subdivision lots and condominium
units;

(9) Disputes involving easements of waterways, drainage, connections to public utilities,
and light and view affecting subdi

(10) Disputes involving homeowners’ associations and condominium corporations,

sion and condominium projects;

whether intra-corporate or inter-corporate;

(11) Claims of brokers and/or salespersons for unpaid commissions for sales of
condominium and/or subdivision projects and all other real estate brokerage transactions;

(12) Disputes between lessors and lessees affecting subdivision and condominium units;

(13) Cases filed by the subdivision or condominium owners or developers and mortgage
financing institutions against lot or unit buyers for collections of unpaid amortizations; and

(14) Other related cases arising ftom contractual or statutory obligations of owners,
dealers, brokers or salespersons towards lot or unit buyers.


(b) On Housing and Land Use Planning and Regulation

Complaints in areas without local zoning administrators and/or local zoning boards of
appeals involving: (i) opposition to any land use or development project; and (ji( petitions for
recall or revocation of the grant by a local government official of any zoning or locational
clearance permit, both on the ground that the same is violative of land use planning laws and/or
zoning ordinances.”

(©) On Shelter Rights

(@) Violations of the provisions of the Urban Development and Housing Act (Republic
‘Act No. 7279), including but not limited to the following:

(1.1) Just and humane eviction/demolition procedure under Section 28 and pertinent
implementing rules and regulations,

(1.2) Prohibition against professional squatters and squatting syndicates under Section 27
and pertinent implementing rules and regulations;

(1.3) Inventory of lands under Section 7 and pertinent implementing rules and
regulations;

(1.4) Identification of sites for socialized housing under Section 8 and pertinent
implementing rules and regulations;

(1.5) Limitations on the disposition of land for socialized housing under Section 14 and
pertinent implementing rules and regulations;

(1.6) Registration of socialized housing beneficiaries under Section 17 and pertinent
implementing rules and regulations; and

(1.7) Balanced housing development under Section 18 and pertinent rules and
regulations.

(2) All ejectment cases where the party defendants are underprivileged and homeless
citizens as defined by the UDHA (Republic Act No. 7279) or a duly registered association whose
members are underprivileged and homeless citizens as defined by the UDHA (Republic Act No.
7279).

SEC. 24. Criminal Prosecution. — Criminal prosecution for violation of housing laws
and regulations shall be instituted before regular courts with appropriate jurisdiction.

SEC. 25. Housing and Urban Development Arbiters, Qualifications and
Compensation, — The Secretary, upon recommendation of the chairman of the Commission,
shall appoint housing and urban development arbiter as the needs of the service may require for
cach administrative region. No person shall be appointed housing and urban development
arbiters unless he has been a member of the Philippine Bar at least five (5) years with at least two

20


(2) years experience or exposure in the field of housing, real estate and/or land use planning and
zoning.

‘The Housing and Urban Development Arbiters shall receive an annual salary and be
entitled to the allowances and benefits equivalent to the salaries, allowed and benefits of labor
arbiters of the National Labor Relations Commission.

SEC. 26. Sheriff. The Commission shall appoint a sheriff or such number of sheriffs in
its central and regional branches. No person shall be appointed to the position of sheriff unless
he is a second grade civil service cligible and has finished at least two (2) years of college. The
sheriff shall be responsible for the service or execution of all writs, summons and orders and
other process of the Commission.

SEC. 27. Appearances. - A lawyer appearing for a party is presumed to be properly
authorized for that purpose. A non-lawyer may appear before the HUDAC or the Housing Urban
Development Arbiter only if: (a) he/she represents himself/herself as party to the case; or (b)
he/she represents an organization: Provided, That he/she shall be made to present written proof
that he/she is properly authorized.

SEC. 28, Appeals, - Decisions, awards or orders of the Housing Urban Development
Arbiter shall be final and executory unless appealed to the HUDAC wit
from receipt of such decisions, awards or orders.

Decisions of the Commission shall be appealable only to the Court of Appeals by way of
a petition for review within fiftecn (15) days from notice of judgment, award or order, pursuant
to Rule 43 of the 1997 Rules of Civil Procedure.

SEC. 29. Prohibition Against Restraining Order or Injunction. - No court of the
Philippines except the Supreme Court and Court of Appeals shall have jurisdiction to issue any

in ten (10) calendar days

restraining order or writ of preliminary or permanent injunction against the HUDAC or its
regional offices in any case, dispute or controversy arising from, necessary to, or in connection
with the application, implementation, enforcement or interpretation of this Act and other
pertinent laws on housing and eviction/demolition procedures.

SEC. 30. Pending Cases, — All cases pending in court not within the original and
exclusive jurisdiction of the former HLURB as defined under Presidential Decree No. 957 as
amended by Executive Order No. 648 shall continue to be heard, tried and decided into their
finality: Provided, That enforcement of decisions in pending ejectment cases which eventually
violate Section 28 of Republic Act No. 7279 may be subjected to the original and exclusive
jurisdiction of the HUDAC.

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CHAPTER V
PUBLIC ESTATES AUTHORITY

SEC. 31. 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 the national
urban development and housing framework. In coordination with the Department, 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.

The governing board of the PEA is hereby reconstituted to include the Secretary of the
Department of Housing and Urban Development and the Secretary of the DILG as ex-officio
members,

CHAPTER VI
SHELTER FINANCE

SEC. 32. Housing Assistance for HDMF, SSS and GSIS Members. — As provided for
in their respective charters, the HDMF, SSS and GSIS shall allocate annually funds to implement
home lending and housing assistance programs which qualified members of these institutions
may avail of. For this purpose, the HDMF, SSS and GSIS shall provide annually the maximum
limit of their investible funds for their housing programs. Any provision to the contrary
notwithstanding, the integrity and character of the funds of the SSS, GSIS and HDMF for the
benefit of its members shall not be prejudiced.

‘The funds allocated shall be used exclusively for home financing and no part thereof shall
be used for administrative or operating expenses of these institutions.

New members of the HDMF shall be allowed to pay the required two (2)-year
membership contribution in lump sum to immediately quality for home lending and housing
assistance programs.

Within thirty (30) days from the effectivity of this Act, the HDMF, SSS and GSIS shall
jointly formulate the policies and specific terms that will govern implementation of their
respective facilities for Retail Loan and Development Loan Programs. The same guidelines shall
be adopted by goverment and private financial institutions implementing retail and
developmental home financing programs.

SEC. 33. Social Housing Fund. — There is hereby established a Social Housing Fund
(SHF) composed of the following fund sources:


(@) Amounts provided for socialized housing under the annual General Appropriations
Act;

(b) Fifty percent (50%) of the twelve percent (12%) of all proceeds of any sale, after
deducting all expenses related to the sale, portions of military camps as provided in Republic Act
No. 7227, as amended;

(c) Loans, grants, bequests and donations, whether form local or foreign sources;

(@) Proceeds form forfeited customs bonds; and

() Ten percent (10%) of the mandatory annual contributions of the Philippine Charity
Sweepstakes Office (PCSO) to the charity fund as provided for in Section 6 of Republic Act No.
1169 shall be channeled to this fund.

In addition, Sixty-Five billion pesos (P65,000,000,000.00) form the unused portion of the
Agri-Agra funds of banks to be accessed over a period of four (4) years from the effectivity of
this Act shall be invested in low-cost and socialized housing.

The SHF shall be administered by the Department and shall be allocated solely for
housing programs for the low-income group of the informal sector such as squatter relocation,
sites and services program, urban renewal, rental housing, land banking and livelihood assistance
programs in resettlement areas. The programs and projects that will be funded under said fund
and the implementing bureau or agency shall be determined by the Department,

CHAPTER VII
TRANSITORY PROVISIONS

SEC. 34. Transfer of Powers and Functions. — Within six (6) 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. The same shall apply to
agencies and government units which have not been abolished but whose functions have been
transferred to the Department except the assets, pertinent funds, records, property, equipment and
personnel of the housing and land use regulatory board needed for adjudicatory and related
support functions, All purely government functions being performed by the HULRB shall be
transferred to the Department. Likewise, all existing powers and functions of these agencies in
their charters which are inherent and incidental to their corporate mandates shall be retained with
the concerned agencies.

All ex-officio functions of the Chairman of the HUDCC are likewise transferred to the
Secretary.

23


SEC. 35. 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 and all other
agencies, or government units whose functions and powers have been transferred to the
Department, and all their funds, records, property, assets, equipment and such personnel, as may
be necessary, including unexpended appropriations and/or allocations except the assets, pertinent
funds, records, property, equipment and personnel of the Housing and Land use Regulatory
Board needed for adjudicatory and related support functions. All contracts and liabilities of the
said offices are hereby transferred to and assumed by the Department and shall be acted upon in
accordance with the Auditing Code and other pertinent laws, rules, and regulations: Provided,
That existing officers and employees of said agencies/corporations, shall continue to assume
their posts in holdover capacity until their new appointments are issued.

SEC. 36. Rationalization or Transfer of Functions of Attached or Related Agencies. —
The land use planning and enforcement functions including monitoring and issuance of licenses
and permits of the HLURB as provided for under Sections 5a, 5b, Sc, 5d, 5g and Sh of Executive
Order No. 648 and similar provisions in Executive Order No. 90; the implementation of the pre-
relocation, and post-relocation activities mentioned in Section 12 (e) 4 of this Act, as provided
for in Section 28 of R.A. No. 7279; and the powers, authorities and responsibilities vested in the
HLURB with respect to the registration of homeowners’ associations as provided for under
Section 26 of Republic Act No.8763 shall be transferred to the Department,

SEC. 37. Structure and Staffing Pattern, - Except for the position of Secretary,
Undersecretary, and Assistant Secretary, there shall be no hiring of new personnel for the
Department. Within ninety (90) days from the effectivity of this Act, the Secretary shall
formulate and submit to the Oversight Committee for its review and approval the Department's
proposed organizational structure and staffing pattern that shall ensure that there is no
duplication of functions between the Department and its attached agencies. After the Oversight’s
review and approval, the proposed organizational structure and staffing pattern of the
Department shall be submitted to the President for final approval through the DBM within ninety
(90) days.

The Oversight Committee shall be composed of the following:

(a) The Chairperson of the Senate Committee on Housing, Resettlement and Urban
Planning, and the House Committee on Government Reorganization, as co-Chairpersons; and

(b) The Chairpersons of the Senate Committee on Finance and the House Committee on
Housing and Urban Development, the House Committee on Government Enterprises and
Privatization, and the House Committee on Appropriations, as members.


The authorized positions created therein shall be filled by regular appointment by the
President or the Secretary, as the case may be: Provided, That in the filling of positions created,
the Secretary shall create an ad hoc committee composed of management and staff of the
concemed agencies to ensure that preference shall be given to the personnel of the corporations
or agencies affected by the restructuring provided in this Act: Provided, further, That such
individuals comply with the qualification standards set by the Civil Service Commission (CSC)
for the positions they shall be appointed to: Provided, finally, That if such individuals possess the
same qualifications, seniority shall be given priority.

SEC, 38. Separation from the Service. - Employees separate and/or phased-out form
the service as a result of the abolition and/or reorganization under the provisions of this Act shall
within six (6) months from their separation and/or phase-out from the service receive a
separation pay equivalent to two (2) times the monthly basic salary for every year of service in
the government and the refund of their personal contribution plus interest including the
government share to the GSIS. In addition, those who are qualified to retire shall be allowed to
retire and be entitled to all benefits provided, under any of the existing retirement laws. The
miscellaneous personnel benefits, the organization adjustment, and corporate funds maybe used
to fund the purpose.

CHAPTER VIII
FUNDING

SEC. 39. Appropriations. - The amount needed for the initial implementation of this
Act shall be charged against the current year’s appropriations of HUDCC and all corporations
herein attached to the Department. Thereafter, such sums as may be necessary for the continued
implementation of this Act shall be included in the annual General Appropriations Act.

SEC. 40, Additional Funding. — Subject to existing rule and regulations, the funds and
monies or which otherwise come into possession of the Department and its bureaus from fees,
surcharges, fines and penalties which the Department and its bureaus may impose and collect
under this Act, as well as an amount to be determined at the beginning of every calendar year
representing twenty percent (20%) of the outstanding balance of the funds and monies shall be
deposited as a special account in the General Fund and shall be disbursed for expenses necessary
for the effective discharge of the powers and functions of the Department under this Act, except
personal services requirements.

CHAPTER IX
MISCELLANEOUS AND FINAL PROVISIONS

25


SEC. 41. Social Housing One Stop Processing Centers, — For purposes of socialized,
low cost, economic and middle-income housing development, the Department shall establish
Social Housing One-Stop Processing Centers (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 (2) 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. 42. Identification and Designation of Lands for Housing and Urban
Development, - The Department of Housing and Urban Development (DHUD), the Department
of Agrarian Reform (DAR) and the Department of Agriculture (DA) shall, within ninety (90)
days from 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 and which can be
devoted for housing and urban development purposes: Provided, That the list shall exclude
lands that are declared as non-negotiable for 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, finally, That in the case of lands exempted from conversion and those
whose application for conversion has been approved by the DAR, the applicant shall be allowed
to proceed with any horizontal or vertical development without need for any prior clearance or
approval form the DAR or DA consistent with the terms of the approved order of conversion.

SEC. 43. Creation of an Advisory Committee, - The Department, within thirty (30) days
from the effectivity of this Act, an advisory committee consisting of key representatives from the
urban poor organizations and other marginalized groups, non-government organizations,
academe, private sector, local government, the Presidential Commission for the Urban Poor
(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

26


representatives of the urban poor and other marginalized groups shall be selected by their
respective National Anti-Poverty Commission (NAPC) sectoral councils.

SEC. 44, Disclosure and Divestment of Financial Interest, — Before assumption into
office, the Secretary, the Undersecretaries and the Assistant Secretaries shall submit to the CSC a
list all companies, partnerships or business enterprises, including non-profit 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, form 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 of 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. 45. Relationship with Other Government Departments. — The Department and its
priority projects shall enjoy preferential attention from the DENR, DAR, DA, Department of
Justice and the LGUs, relative to the issuance of necessary 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) working 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. 46. Mandatory Review Two (2) Years 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.

27


SEC. 47. Formulation of the Implementing Rules and Regulations. — Within three (3)
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 association to manage subdivision and condominium
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 DOF, DILG, DAR, and DENR;

(©) The heads of the GSIS, SSS, NHA, NHMFC, REAC, HDMF, and HGC;

(d) The Chairpersons of the Senate Committees on Finance and Housing, Resettlement
and Urban Planning; and House Committee on Government Reorganization, Housing and Urban
Development, Government Enterprises and Privatization and Appropriations;

(©) Two (2) representatives each from the dominant urban poor organization and NGOs,
to be appointed by the Chairpersons of Joint Congressional Committee, and

(£) Two (2) representatives each form the respective organizations of real estate brokers,
teal estate appraisers and real estate consultants.

SEC, 48. Penal Provision. - The Department shall impose an maximum imposable fine
for violations of its standards, rules and regulations should not exceed Five hundred thousand.
pesos (500,000.00): 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 (3) years,

SEC. 49, 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. 50. 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. 51, Effectivity. — This Act shall take effect fifteen (15) days following its complete
publication in at least two (2) national newspapers of general circulation.

Approved,

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