Republic of the Philippines
HOUSE OF THE REPRESENTATIVES
Quezon City, Metro Manila

EIGHTEENTH CONGRESS
First Regular Session

1044

HOUSE BILL NO.

Introduced by: HON. KRISTINE SINGSON-MEEHAN

AN ACT
PRESCRIBING THE MECHANISMS TO FACILITATE THE DISPOSITION OF
IDLE GOVERNMENT-OWNED LANDS FOR SOCIALIZED HOUSING

EXPLANATORY NOTE

With our country’s fast growing population comes the immediate problem of a need for more
housing and housing space. The acute housing problem compounded by indiscriminate
squatting in the urban areas necessitates a forward-looking approach to answer this basic
need of the people. There is a need to improve the government's housing program in order to
make available, affordable and decent housing and basic services for the people especially to
poor and homeless families all over the country.

Section 9, Article XIII of the Constitution states that “the State shall, by law, and for the
common good, undertake, in cooperation with the private sector, a continuing program of
urban land reform and house which will make available at affordable cost decent housing and
basic services to underprivileged and homeless citizens in urban centers and resettlement
areas Xxx.”

This measure, through the National Housing Authority in coordination with the Land
Management Bureau, seeks the identification of all public lands that have remained idle, that
are suitable for residential purposes so that they may be developed for socialized housing, for
low-salaried government and private employees and informal settlers.

In view of the foregoing, the approval of this bill is earnestly sought.

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Republic of the Philippines
HOUSE OF THE REPRESENTATIVES
Quezon City, Metro Manila

EIGHTEENTH CONGRESS
First Regular Session

nouse pitNo, 2044

Introduced by: HON. KRISTINE SINGSON-MEEHAN

AN ACT
PRESCRIBING THE MECHANISMS TO FACILITATE THE DISPOSITION OF
IDLE GOVERNMENT-OWNED LANDS FOR SOCIALIZED HOUSING

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

SECTION 1. Short Title. — This Act shall be known as the “Idle Government-
owned Lands Disposition Act”.

SEC. 2. Declaration of Policy. — It is hereby declared the policy of the State to
ensure the availability of sufficient lands for socialized housing purposes and improve the
capability of local government units (LGUs) in undertaking housing and urban development
programs and projects.

SEC. 3. Inventory of Lands. — To carry out the provisions of this Act, an inventory
of all idle government-owned lands shall be conducted within one (1) year from the
effectivity of this Act. The Housing and Urban Development Coordinating Council
(HUDCC) through the National Housing Authority (NHA), in coordination with the
Department of Environment and Natural Resources (DENR) through the Land Management
Bureau (LMB), shall conduct an inventory of all lands owned by the national government or
any of its subdivisions, instrumentalities or agencies, including government-owned or -
controlled corporations (GOCCs) and their subsidiaries which have not been used for the
purpose for which they have been reserved for the past ten (10) years.

‘The Department of the Interior and Local Government (DILG) through the LGUs shall
conduct an inventory of all local government-owned lands within their respective localities
which have remained idle. For monitoring purposes, the DILG shall furnish the HUDCC a
copy of its inventory.


‘The inventories stated in the preceding paragraphs shall be updated every three (3)
years.

SEC. 4. Identification and Setting Aside of Lands for Socialized Housing. — After
the conduct of the inventory:

(a)All LGUs are hereby directed to identify and set aside idle local government-owned
lands which are suitable for socialized housing: Provided, That the Housing and Land Use
Regulatory Board shall provide technical assistance to the LGUs in the identification thereof
and their eventual setting aside for and disposition as socialized housing sites: Provided,
further, That identified lands for socialized housing shall be integrated in the Comprehensive
Land Use Plan of LGUs; and

(b)The NHA, in coordination with the LMB, is likewise directed to identify idle lands
owned by the national government or any of its subdivisions, instrumentalities or agencies,
including GOCCs and their subsidiaries, which have not been used for the purpose for which
they have been reserved for the past ten (10) years to be set aside for socialized housing
Provided, That such lands have been declared open for disposition whether through an act of
Congress or other related laws.

Except for local__-—_government-owned lands, all_~—ilands_-— owned
by the national government or any of its subdivisions, instrumentalities or agencies, including
GOCCs and their subsidiaries identified for socialized housing, shall immediately be
transferred to the NHA to be set aside for the purpose subject to the approval of the President
of the Philippines: Provided, That lands comprising the acquired assets of GOCCs and
government financial institutions (GFIs) engaged in shelter financing that are taken
possession of in their ordinary conduct of business and lands they hold in trust for and on
behalf of their members are not covered under this Act.

SEC.5. Sale, Alienation or Encumbrance of Other Government-owned Lands Not
Set Aside for Socialized Housing. — Whenever a government-owned land not set aside for
socialized housing, whether owned by the LGUs or the national government or any of its
subdivisions, instrumentalities or agencies, including GOCCs and their subsidiaries, is sold,
alienated or otherwise encumbered in favor of private individuals or entities for its
development into industrial, commercial or other similar estates, there shall be set aside, as
may be necessary, at least ten percent (10%) of the proceeds thereof for the development of
socialized housing projects within, adjacent to the affected areas or in nearby areas within the
city or municipality in accordance with the local development land use plan: Provided, That


lands comprising the acquired assets of GOCCs and GFls engaged in shelter financing that
are taken possession of in their ordinary conduct of business and lands they hold in trust for
and on behalf of their members are not covered under this Act: Provided, further, That low-
salaried employees of the government agency that sold, alienated or otherwise encumbered
such idle land shall be given first priority as beneficiaries of the socialized housing projects to
be developed.

SEC. 6. Conveyance of Segregated Land or Fund. — For land owned by the national
government or any of its subdivisions, instrumentalities or agencies, including GOCCs and
their subsidiaries, the segregated land or fund shall be conveyed at no cost to the NHA which
shall be directly responsible for the development of socialized housing projects: Provided,
however, That for a land owned by an LGU, the segregated land or fund shall be retained by
the concerned LGU to be utilized exclusively for its socialized housing projects.

SEC. 7. Implementation of Socialized Housing Projects. — For purposes of
implementing socialized housing projects on lands set aside for socialized housing and
utilizing the funds set aside from the sale, alienation and encumbrance of other lands not set
aside for socialized housing, the concerned LGU and the NHA shall develop or cause the
development of projects pursuant to Sections 4, 5 and 6 of this Act.

Toward this end, the NHA and the concerned LGU are hereby authorized to enter into
joint venture agreements or other similar arrangements with private developers or
nongovernmental organizations (NGOs) engaged in housing production: Provided, That the
cost of housing unit, if constructed within the affected area or locality pursuant to Section 5
hereof, shall exclude the cost of land.

In all cases, the NHA and the concerned LGU shall coordinate with each other in the
development of socialized housing projects in the areas described in Section 5 of this Act.

SEC. 8. Incentives for Private Developers and NGOs. — To encourage private sector
and NGO participation in socialized housing projects described in Section 7 hereof, the
incentives provided in Section 20 of Republic Act No. 7279, otherwise known as the “Urban
Development and Housing Act of 1992”, on Incentives for Private Sector Participating in
Socialized Housing, shall apply.

SEC. 9. Implementing Rules and Regulations. — Within six (6) months afier the
effectivity of this Act, the HUDCC and the DENR are hereby directed to promulgate the
necessary rules and regulations, including the mechanisms and procedures on the conduct of
inventory and identification of lands suitable for socialized housing, to effectively implement
the provisions of this Act. In drafting the implementing rules and regulations, the National


Urban Development and Housing Framework described in Republic Act No. 7279 shall be
taken into consideration.

SEC. 10.Separability Clause. — If any part or provision of this Act is declared invalid
for any reason, the remainder of this Act not affected thereby shall remain valid and effective.

SEC. l1.Repealing Clause. — All laws, decrees, executive orders, letters of
instruction, rules and regulations or parts thereof inconsistent with any of the provisions of
this Act are hereby repealed, modified, superseded or amended accordingly

SEC. 12.Effectivity. 2 This ‘Act shall take effect
fifteen (15) days after its publication in the Official Gazette or in a newspaper of general
circulation.

Approved,