ARCH392

RESEARCH WORK 01
LOCAL GOVERNMENT UNIT LAWS AND ORDINANCES
CLIFFORD C. MORANO BSARCH-3RD YEAR

1. What law that mandates land developer to allocate a portion of its land to local
government unit (LGU) for socialized housing?
-Name of the law
- Contents of the law
- Penalties and fees.

REPUBLIC ACT NO. 7 2 7 9

AN ACT TO PROVIDE FOR A COMPREHENSIVE AND CONTINUING URBAN DEVELOPMENT AND
HOUSING PROGRAM, ESTABLISH THE MECHANISM FOR ITS IMPLEMENTATION, AND FOR OTHER
PURPOSES.

ARTICLE I

TITLE, POLICY, PROGRAM AND DEFINITION OF TERMS

Section 1 . Title. — This Act shall be kn ow n a s th e " Urb an Development a n d

Housing Act of 1992."

Sec. 2 . Declaration of State Policy a n d Program Objectives. — It shall be th e

policy of t h e State to u n d e r t a k e , in cooperation with th e private sector, a

comprehensive a n d continuing Ur b a n Development a n d Housing Program,

hereinaf ter referred to a s th e Progra m, which shall:

(a) Uplift t h e conditions of t h e underprivileged a n d ho meles s citizens in

u r b a n a r e a s a n d in rese ttlement a r e a s by m a k i n g available to t h e m

decent ho u s in g a t affordable cost, basic services, a n d employment

opportunities;

(b) Provide for th e rational u s e a n d development of u r b a n l a n d in order to

bring a b o u t the following:

(1) Equitable utilization of residenti al l a n d s in u r b a n a n d

urbaniz abl e a r e a s with pa rti c ul ar a tt en tion to t h e n e eds a n d

requi rements of th e underprivileged a n d homel es s citizens a n d no t

merely on th e b a s i s of m a r k e t for (2) Optimization of t h e u s e a n d productivity of l a n d a n d

urban

resources;

(3) Development of u r b a n a r e a s conducive to commercial a n d

i nd us tr i al activities which c a n generate more economic

opportunities for th e people;

(4) Reduction in u r b a n dys functions, particularly thos e t h a t

adversely affect public he al th, safety a n d ecology; a n d

(5) Access to l a n d a n d ho usi ng by the underprivileged a n d

homeless citizens;

(c) Adopt workable policies to regulate a n d direct u r b a n growth a n d

expans i on towa rds a di s persed u r b a n n e t a n d more b al an c ed u r b a n -

r u r a l interdependence;

(d) Provide for a n equitable l a n d te n u r e sys t e m t h a t shall g u a r a n t e e

security of t e n u r e to Pr ogram beneficiaries b u t shall respect th e rights of

small property owners a n d e n s u r e t he p a y m e n t of j u s t compensation;

(e) Encourage more effective people's participation in th e u r b a n

development process; a n d

(f) Improve t h e capability of local government u n i t s in u n d e r t a k i n g u r b a n

development a n d ho u s ing p r o g r a ms a n d projects.

Sec. 3 . Definition of Terms. — For p u r p o s e s of t h i s Act:

(a) "Affordable cost" refers to th e m o s t r easonable price of l a n d a n d

shelt er b a s e d on th e n e eds a n d financial capability of Pr ogram

beneficiaries a n d appr op ri a t e financing schem es;

(b) "Areas for priority development" refers to those a r e a s declared a s s u c h

u n d e r existing s t a t u t e s a n d pe rtin e nt executive i ss u a n c e s .

(c) "Blighted la n ds " refers to th e a r e a s where t h e s t r u c t u r e s ar e

dilapidated, obsolete a n d u n s a n i t a r y , tending to depreciate th e value of

th e l a n d a n d prevent n o r m a l development a n d u s e of th e ar e a .

(d) "C onsultation" refers to th e constitutionally m a n d a t e d process

whereby th e public, on their own or t h r o u g h people's organizations, is

provided a n opportunity to be h e a r d a n d to participate in th e decision-

m a k i ng process on m a tt e r s involving th e protection a n d promotion of its

legitimate collective interest, which shall include appr op ria t e

do cum e n ta tion a n d feedback m e c h a n is ms ;

(e) "Idle l a n d s " refers to non-ag ri cult ural l a n d s u r b a n a n d u r b aniz e d

a r e a s on which no improvements, a s her ein defined, have been m a d e by

th e owner, a s certified by t h e city, m unicipal or provincial ass es sor;

(f) "Improvements" refers to all types of buildings a n d residential u n i t s ,

walls, fences, s t r u c tu r e s or constru c tions of all k i n d s of a fixed ch ara c t er

or which ar e a d h e r e d to th e soil b u t shall no t include trees, p l a n t s a n d

growing f ruits, a n d other fixtures t h a t are mere superimp ositions on th e

l a n d, a n d th e value of i mprovements shall n ot be less t h a n fifty percent

(50%) of th e a s s e s s e d value of th e property (g) "Joint venture" refers to th e c ommi tm en t or

agreement by two (2) or

more p e r s o n s to carry o u t a specific or single b u s i n e s s ent erprise for

their m u t u a l benefit, for which p u r po s e they combine their f u n d s , l a n d

resources, facilities a n d services;

(h) " Land ass embly or consolidation" refers to t h e acquisition of lots of

varying ownership th r o u g h p u r c h a s e or expropriation of th e p u r p os e of

p l a n n e d a n d rational development a n d socialized ho us ing p r o g r a ms

without individual property b o u n d a r y restrictions;

(i) "L and b ankin g" refers to th e acquisition of l a n d a t val ues b a s e d on

existing u s e in advance of a c tu a l nee d to promote p l a n n e d development

a n d socialized ho u s in g programs ;

(j) " Land swapping" refers to th e process of l a n d acquisition by

exchanging l a n d for a n o t h e r piece of l a n d of equal value, or for s h a r e s of

stock in a government or quas i-government corporation whose book

value is of equal value to t h e l a n d being exchanged, for th e p u r p o s e of

p l a n n e d a n d rational development a n d provision for socialized ho us i ng

where l a n d values are det ermined b a s e d on l a n d classification, m a r k e t

value a n d a s s e s s e d value ta k e n from existing tax declarations: Provided,

Th a t more valuable l a n d s owned by private p e r s o n s m a y be exchanged

with less valuable l a n d s to carry o u t th e objectives of t h i s Act;

(k) " Land u s e plan " refers to th e ratio nal a p p r o a c h of allocating available

resources a s equitably a s possible a m o ng competing u s e r gro ups a n d for

different fun ctions cons is tent with t he development p l a n of th e a r e a a n d

th e Program u n d e r t h i s Act.

(l) "On-site development" refers to th e process of upg r a d in g a n d

rehabili tation of blighted s l u m u r b a n a r e a s with a view of minimizing

displacement of dwellers in s a id a r e a s , a n d with provisions for bas i c

services a s provided for i n Section 2 1 hereof;

(m) "Professional s qu a tt er s " refers to individuals or gro ups who occupy

l a n d s wi thout th e express cons ent of t h e landowner a n d who have

sufficient income for legitimate h ous ing. The t e r m shall also apply to

p e r s ons who have previously been a wa r d ed homelots or ho u s ing u n i t s by

th e Government b u t who sold, leased or t rans f er r ed t h e s a m e to settle

illegally in th e s a m e place or in a n o t h e r u r b a n ar e a , a n d n o n - b o n a fide

o c c u p a n ts a n d i n tr u d e r s of l a n d s reserved for socialized h ous ing. The

t e r m shall no t apply to individuals or gro u ps who simply r e n t l a n d a n d

ho usi ng from professional s q u a tt e r s or sq ua t ti n g syndicates;

(n) "Resettlement ar e as " refers to a r e a s identified by t h e appr opria t e

nation al agency or by th e local government u n i t with respect to a r e a s

within its jurisdiction, which shall be u s e d for t h e relocation of t h e

underprivileged a n d homel es s citizens;

(o) "Security of t enure" refers to th e degree of protection afforded to

qualified Program beneficiaries a g a i ns t infring ement or u n j u s t ,

reasonable a n d arbi tr a r y eviction or disposition, by virtue of th e right of

ownership, lease agreem ent, u s u f r u c t a n d other c ontr a ctu al

a r r an g e m e n ts ;

(p) "Slum Improvement a n d Resettlement Program or SIR" refers to th e

pro g ram of th e National Housing Authority of upg r a di ng a n d improving

blighted s q u a tt e r a r e a s outsi de of Metro Manila p u r s u a n t to existing

s t a tu t e s a n d p er tinent executive issuan c es ;

(q) "Small property owners" refers to those whose only real property

consists of residential l a n d s not exceeding thre e h u n d r e d s q u a r e me t ers

(300 sq.m.) in highly u r b a niz e d cities a n d eight h u n d r e d s q u a r e met ers

(800 sq.m.) in other u r b a n ar eas ;

(r) "Socialized housing" refers to ho us i ng p r o g r a ms a n d projects covering

h o u s e s a n d lots or homelots only u n d e r t a k e n by th e Government or th e

private sector for th e underprivileged a n d homeles s citizens which shall

include sites a n d services development, long-term financing, liberalized

t e r m s on interes t p a y m e n ts , a n d s u c h other benefits in accordance with

th e provisions of t h i s Act;

(s) "Squatting syndicates" refers to g r o ups of p e r s o ns engaged in the

b u s i n e s s of s q u a tt e r ho u s in g for profit or gain;

(t) "Underprivileged a n d homel es s citizens" refers to t h e beneficiaries of

t h i s Act a n d to individuals or families residing in u r b a n a n d urb aniz abl e

a r e a s whose income or combined h o us ehold income falls within th e

poverty thr es hold a s defined by the National Economic a n d Development

Autho ri ty a n d who do n o t own ho u s in g facilities. This shall include those

who live in mak e s hi ft dwelling u n i t s a n d do n o t enjoy security of t enure;

(u) "Unregistered or a b a n d o n e d la n ds " refers to l a n d s in u r b a n a n d

urbaniz abl e a r e a s which ar e n ot registered with th e Register of Deeds, or

with th e city or muni cipal a s s es s o r 's office concerned, or which are

u n i n h a b i t e d by t h e owner a n d have no t been developed or devoted for

a n y usef ul purpo s e , or a p p e a r s unutiliz ed for a period of thre e (3)

consecutive years immediately prior to th e i ssu an c e a n d receipt of

publi cati on of notice of acquisition by t h e G overnment a s provided u n d e r

t h i s Act. It does n o t include l a n d whi ch h a s been a b a n d o n e d by re aso n of

force maj eu r e or a n y other fortuitou s event: Provided, T h a t prior to s u c h event, s u c h l a n d

wa s previously u s e d for som e us eful or economic

purpose;

(v) " Urb an ar eas " refers to all cities re gardless of thei r population density

a n d to muni cipalities with a p opulati on density of a t least five h u n d r e d

(500) p e r s o ns per s qu a r e kilometers;

(w) "Urbanizable ar eas " refers to site s a n d l a n d s which, considering

pr ese n t characteris tics a n d prevailing conditions, display m a r k e d a n d

great potential of becoming u r b a n a r e a s within th e period of five (5)

years; a n d

(x) "Zonal Improvement Program or ZIP" refers to th e p ro g ra m of th e

National Housing Authority of u p g ra di ng a n d improving blighted

s q u a tt e r s a r e a s within th e cities a n d municipalities of Metro Manila

p u r s u a n t to existing s t a t u t e s a n d per tinen t executive i ss u a n c e s .

ARTICLE II

COVERAGE AND EXEMPTIONS

Sec. 4 . Coverage. — The Program shall cover all l a n d s in u r b a n a n d

urbaniz abl e a r e a s , including existing a r e a s for priority development sites , a n d

in other a r e a s t h a t m a y be identified by th e local government u n i t s a s s uitabl e

for socialized housing .

Sec. 5 . Exemptions. — The following l a n d s shall be exempt from th e coverage

of t h i s Act:

(a) Those included in th e coverage of Republic Act No. 6 6 5 7 , otherwise

kno wn a s th e Comprehensive Agrari an Reform Law; (b) Those actually u s e d for na ti onal
defense a n d security of th e State;

(c) Those u s e d , reserved or otherwise set aside for government offices,

facilities a n d other install ations, whether owned by th e National

Government, its agencies a n d ins tru m en tali ties , including government-

owned or-controlled corpo rations, or by th e local government u n i ts :

Provided, however, T h a t th e l a n d s herein mentioned, or portions thereof,

which have n o t been u s e d for th e p u r p o s e for which they have been

reserved or set aside for th e p a s t t e n (10) years from th e effectivity of t h i s

Act, shall be covered by t h i s Act;

(d) Those u s e d or se t as ide for p a r k s , reserves for flora a n d f a u n a , forests

a n d wa t ersh e ds, a n d other a r e a s ne cessary to m a i n t a i n ecological

balance or environmental protection, a s det ermined a n d certified to by

th e proper government agency; a n d

(e) Those actually a n d primarily u s e d for religious, charitabl e, or

educational p u r p os e s , cultur al a n d historical sites, hos pi tal s a n d h e a l t h

centers, a n d cemeteries or memorial p a r k s .

The exemptions herein provided shall no t apply when th e u s e or p u rp o s e of th e

abovementioned l a n d s h a s ceased to exist.

ARTICLE III

NATIONAL URBAN DEVELOPMENT AND HOUSING FRAMEWORK

Sec. 6 . Framework for Rational Development. — There shall be a National

U r b a n Development a n d Housing Framew ork to be formulat ed by th e Housing

a n d L a n d Use Regulatory Bo ard u n d e r th e direction of th e Housing a n d U r b a n

Development Coordinating Council i n coordination with all local government u n i t s a n d

other concerned public a n d private sectors within one (1) year from

th e effectivity of t h i s Act.

The framework shall refer to th e comprehensive p l a n for u r b a n a n d

urbaniz abl e a r e a s aim ed a t achieving th e objectives of th e Program. In th e

formulation of th e Framework, a review a n d rationalization of tes ting town a n d

l a n d u s e p l a n s , ho usi ng p r o g ra ms, a n d all other objectives a n d activities of

government agencies a n d th e private sectors which m a y s ubs t a nt i a lly affect

u r b a n l a n d u s e p a t t e r n s , tr a n s p o r t a t i o n a n d public utilities, i n f r as tr u c tu r e ,

environment a n d popul ation mov ement shall be u n d e r t a k e n with th e

concurrence of th e local government u n i t s concerned.

ARTICLE IV

LAND USE, INVENTORY, ACQUISITION AND DISPOSITION

Sec. 7 . Inventory of L a n d s . — Within one (1) year from th e effectivity of t h i s

Act, all city a n d muni cipal governments shall condu ct a n inventory of all k i n d s

a n d improvements thereon within their respective localities. The inventory shall

include th e following:

(a) Residential la n ds ;

(b) Government-owned l a n d s , wheth er owned by th e N ational

Government or a n y of i ts subdivisi ons, instrum ent ali ti es , or agencies,

including government-owned or-controlled corporati ons a n d thei r

subsidi aries;

(c) Unregistered or a b a n d o n e d a n d idle la n ds ; a n d

(d)Other l a n d s .

In conduc ting th e inventory, th e local government u n i t s concerned, in

coordination with th e Housing a n d L a n d Use Regulatory Board a n d with t he

a ss is ta n c e of th e appr op ri at e government agencies, shall indicate th e type of

l a n d u s e a n d th e degree of l a n d utilization, a n d other d a t a or information

necessary to carry o u t th e p u r p o s e s of t h i s Act.

For p l an nin g pu rp o s e s , th e Housing a n d Ur b a n Development Coordinating

Council shall be f u r n i s h e d by each local government u n i t a copy of its

inventory which shall be u p d a t e d every three (3) years.

Sec. 8 . Identification of Sites for Socialized Housing. — After th e inventory th e

local government u n i t s , i n coordination with th e National Housing Authority,

th e Housing a n d L a n d Use Regulatory Bo ard, th e National Mapping Resource

Information Authority, a n d th e L a n d M an ag em e nt B u r e a u , shall identify l a n d s

for socialized ho usi ng a n d resettlement a r e a s for th e immediate a n d f u t u r e

ne eds of th e underprivileged a n d ho meles s in th e u r b a n a r e a s , taking into

consideration a n d degree of availability of basic services a n d facilities, their

accessibility a n d proximity of jobs si tes a n d other economic opportunities , a n d

th e a c tu a l n u m b e r of registered beneficiaries.

Government-owned l a n d s u n d e r p a r a g r a p h (b) of t h e preceding section which

have n o t been u s e d for th e p u r p os e for which they have been reserved or set

aside for th e p a s t t e n (10) years from th e effectivity of t h i s Act a n d identified a s

suitabl e for socialized housing, shall i mmediately be t ra ns fe rr ed to th e National

Housing Authority subject to th e approval of th e President of th e Philippines or

by th e local government u n i t concerned, a s th e case m a y be, for proper

disposition in accordance with t h i s Act.

Sec. 9 . Priorities in th e Acquisition of L a n d . — L a n d s for socialized hou s in g

shall be acquired in th e following order: (a) Those owned by t h e G overnment or a n y of its
subdivisi ons,

instrum en tali ti es , or agencies, including government-owned or -

controlled corporations a n d their subs idiaries;

(b) Alienable l a n d s of th e public dom a i n;

(c) Unregistered or a b a n d o n e d a n d idle la n ds ;

(d) Those within th e declared Areas for Priority Development, Zonal

Improvement Pro gram sites, a n d Slu m Improvement a n d Resettlement

Pro gram sites which have n o t yet been acquired;

(e) Bagong L i p u n a n Improvement of Sites a n d Services or BLISS sites

which have n o t yet been acquired; a n d

(f) Privately-owned l a n d s .

Where open-site development is f o un d more practicable a n d a d v a n t ag e o us to

th e beneficiaries, th e priorities menti oned in t h i s section shall n ot apply. The

local government u n i t s shall give bud ge tary priority to on-site development of

government l a n d s .

Sec. 1 0 . Modes of L a n d Acquisition. — The mod es of acquiring l a n d s for

p u r p o s e s of t h i s Act shall include, a m o ng others, c ommunity mortgage, l a n d

swappi ng, l a n d ass embly or consolidation, l a n d b a n k i ng , donati on to t h e

Government, joint-venture agreeme nt, negotiated p u r c h a s e , a n d expropriation:

Provided, however, T h a t expropriation shall be resorted to only when oth er

models of acquisition have been e xh austed: Provided, fu r t h e r , Th a t where

expropriation is reso rted to, parcels of l a n d owned by small property owners

shall be exempted for p u r p o s e s of t h i s Act: Provided, finally, T h a t a b a n d o n e d

property, a s her ein defined, shall be reverted a n d es cheat ed to t h e State in a proceeding

analogous to t h e procedure laid down in Rule 9 1 of th e Rules of

Court.

For th e p u r p o s e of socialized housi ng , government-owned a n d foreclosed

properties shall be acquired by th e local government u n i t s , or by th e National

Housing Authority p ri m a r y th r o u g h negotiated p u r c h a s e : Provided, Th a t

qualified beneficiaries who ar e a c t u a l o c c u p a n ts of t h e l a n d shall be given th e

right of first r efusal.

Sec. 1 1 . Expropriation of Idle L a n d s . — All idle l a n d s in u r b a n a n d

urbaniz abl e a r e a s , a s defined a n d identified in accordance with t h i s Act, shall

be expropriated a n d shall form p a r t of th e public d o m a i n. These l a n d s shall be

disposed of or utilized by th e Government for s u c h p u r p o s e s t h a t conform with

their l a n d u s e p l a n s . Expropriation proceedings shall be ins t i tute d if, after th e

laps e of one (1) year following receipt of notice of acquisition, th e owner fails to

introduce improvements a s defined in Section 3(f) hereof, except in th e case of

force maj e ur e a n d other for tui tous events. Exempted from t h i s provision,

however, are residential l a n d s owned by small property owners or those th e

ownership of which is subject of a p e nding litigation.

Sec. 1 2 . Disposition of L a n d s for Socialized Housing. — The National Housing

Authority , with respect to l a n d s belonging to th e National Government, a n d th e

local government u n i t s with respect to other l a n d s within their respective

localities, shall coordinate with each other to formul ate a n d m a k e available

various alternative sch em es for th e disposition of l a n d s to th e beneficiaries of

th e Program. These sch em es shall n ot be limited to those involving t r a n s f e r of

ownership in fee simple b u t shall include lease, with option to p u r c h a s e ,

u s u f r u c t or s u c h other variations a s t h e local government u n i t s or th e National

Housing Authority m a y deem m o s t expedient in carrying o u t th e p u r p o s e s of

t h i s Act. Consis tent with t h i s provision, a scheme for public r ental ho usi ng m a y be

adopt ed.

Sec. 1 3 . Valuation of L a n d s for Socialized Housing. — Equitable l a n d valuation

guidelines for socialized ho usi ng shall be set by th e D ep a r t m en t of Finance on

th e b a s i s of th e m a r k e t value reflected in t h e Zonal val uation, or in its abs ence,

on th e lat es t real property ta x declaration.

For site already occupied by qualified Program beneficiaries, th e D ep a r t m en t of

Finance shall factor into th e valuation th e blighted s t a t u s of t h e l a n d s a s

certified by th e local government u n i t or th e National Housing Autho rity.

Sec. 1 4 . Limitations on t h e Disposition of L a n d s for Socialized Housing. — No

l a n d for socialized h ous ing, including i mprovements or rights thereon, shall be

sold, ali enated, conveyed, e n cumb e r ed or leased by a n y beneficiaries a s

determined by th e government agency concerned.

Should th e beneficiary unlawfully sell, tr ans f e r , or otherwise dispos e of h i s lot

or a n y right thereon, the tr a n sa c t i o n shall be null a n d void. He shall also lose

h i s right to t h e l a n d , forfeit th e total amortiz ation p ai d thereon, a n d shall be

b a r r e d from th e benefits u n d e r t h i s Act for a period of t e n (10) years from t h e

dat e of violation.
In t h e event th e beneficiary dies before full ownership of th e l a n d is vested on

h i m , tr ans f e r to h i s hei rs shall tak e place only u p o n their a s s u m p t i o n of h i s

o u ts ta n d i n g obligations. In cas e of failure by th e h ei rs to a s s u m e s u c h

obligations, th e l a n d shall revert to t he Government for disposi tion in

accordance with t h i s Act.

ARTICLE V

SOCIALIZED HOUSING

Sec. 1 5 . Policy. — Socialized housing, a s defined in Section 3 hereof, shall be

th e pri m a r y strategy in providing shelter for th e underprivileged a n d homeless.

However, if th e t e nuri al a r r a n g e m e n t in a p ar tic ula r socialized ho u s ing

pro g ram is in th e n a t u r e of leasehold or u s u f r u c t , th e s a m e shall be tran s itory

a n d th e beneficiaries m u s t be enc ouraged to become ind ep end e nt from th e Program

within a given period of time, to be determined by th e impl em enting agency concerned.

Sec. 1 6 . Eligibility Criteria for Socialized Housing Program Beneficiaries. — To

qualify for t h e socialized ho usi ng pr o gram, a beneficiary:

(a) M u s t be a Filipino citizen;

(b) M u s t be a n underprivileged a n d homeless citizen, a s defined i n

Section 3 of t h i s Act;

(c) M u s t n ot own a n y real property w hether in th e u r b a n or r u r a l ar e as;

and

(d) M u s t n o t be a professional s qu a t t e r or a m e m b e r of sq ua t ti n g

syndicates.
Sec. 1 7 . Registration of Socializing Housing Beneficiaries. — The Housing a n d

U r b a n Development Coordinating Council, in coordination with th e local

government u n i t s , shall designed a s ys t em for th e registrati on of qualified

Pro gram beneficiaries i n accordance with th e Framework. The local government

u n i ts , wi thin one (1) year from th e effectivity of t h i s Act, shall identify a n d

register all beneficiaries within their respective localities.

Sec. 1 8 . Balanced Housing Development. — The Pr ogram sh all include a

syst em to be specified i n th e Framework p l a n whereby developers of proposed

subdivisi on projects shall be required to develop a n a r e a for socialized ho usi ng

equivalent to a t least twenty percent (20%) of t h e total subdivision a r e a or total

subdivisi on project cost, a t th e option of th e developer, within t h e s a m e city or

munici pality, whenever feasible, a n d i n accordance with th e s t a n d a r d s set by

th e Housing a n d L a n d Use Regulatory Bo ard a n d other existing laws. The

balanc ed ho usi ng development a s her ein required m a y also be complied with

by th e developers concerned in a n y of th e following m a n n e r :

(a) Development of new settlement;

(b) Slum upg r a d in g or renewal of a r e a s for priority development either

th r o u g h zonal improvement p r o g r am s or s l u m improvement a n d

rese ttlem ent prog rams ;

(c) Joint-v entur e projects with either t h e local government u n i t s or a n y of

th e ho us i ng agencies; or

(d) Parti cipation in th e c ommunity mortgage p ro gr am.

Sec. 1 9 . Incentives for th e National Housing Authority. — The National

Housing Authority, being th e pri m a r y government agency in charge of

providing ho using for t h e underprivileged a n d homeless, shall be exempted

from th e p a y m e n t of all fees a n d cha rges of a n y k i n d s , whether local or

national , s u c h a s income a n d real taxes. All d o c u m e n t s or c ontr a cts executed

by a n d in favor of th e N ational Housing Authority shall also be exempt from th e

p a y m e n t of d o cu m entar y s t a m p tax a n d registration fees, including fees

required for th e i s su an c e of tr a n s f e r certificates of titles.

Sec. 2 0 . Incentives for Private Sector Participating in Socialized Housing. — To

encourage greater private sector participation in socialized ho usi ng a n d f u r t h e r

reduce th e cost of ho us i ng u n i t s for th e benefit of t h e underprivileged a n d

homeless, th e following incentives shall be extended to th e private sectors:

(a) Reduction a n d simplification of qualification a n d accreditation

requi rements for participating private developers;

(b) Creation of one-s top offices in t h e different regions of th e c ountry for

th e processing, approval a n d i ssu a nc e of clearances, p e rmi ts a n d

licenses: Provided, T h a t clearances, p er m it s a n d licenses shall be i ss u e d

within ninety (90) d a y s from t h e da te of s u b m i s s i o n of all requi rements

by th e participating private developers;

(c) Simplification of financing procedures; a n d

(d) Exemption from t h e p a y m e n t of t he following:

(1) Project-related income taxes;

(2) Capital gains t ax on ra w l a n d s u s e d for th e project;

(3) Value-added tax for th e project c ontract or concerned;

(4) Trans fer ta x for b o t h raw completed projects; a n d

(5) Donor's tax for l a n d s certified by t he local government u n i t s to

have been d o n a t e d to socialized ho u s i ng p u rp o s e s .

Provided, T h a t u p o n application for exemption, a lien on th e title of th e l a n d

shall be a n n o ta t e d by t h e Register of Deeds: Provided, fu r t h e r, Th a t th e socialized ho u s ing

development p l a n h a s alre ady been approved by th e

approp ri a t e government agencies concerned: Provided, finally, T h a t all the

savings acquired by virtue of t h i s provision shall accrue in favor of th e

beneficiaries subject to th e implementing guidelines to be i s su e d by the

Housing a n d U r b a n Development Coordinating Council.

Appropri ate implementing guidelines shall be pr ep a r ed by th e D ep a r t m e n t of

Finance, in consultation with th e Housing a n d U r b a n Development

Coordinating Council, for th e proper implementation of th e tax exemption

mentioned in t h i s section within one (1) year after th e approval of t h i s Act.

Property owners who voluntarily provide resettle ment sites to illegal o c c u p a n ts

of their l a n d s shall entitled to a ta x credit equivalent to t h e a c t u a l n o n -

recoverable expenses in curr ed i n th e rese ttlem ent, subject to th e implementing

guidelines jointly i ss u e d by the Housing a n d U r b a n Development Coordinating

Council a n d th e D ep a r tm en t of Finance.

Sec. 2 1 . Basic Services. — Socialized ho usi ng or rese ttlement a r e a s shall be

provided by t he local government u n i t or th e National Housing Authority in

cooperation with th e private developers a n d concerned agencies with th e

following basic services a n d facilities:

(a) Potable water;

(b) Power a n d electricity a n d a n ad e q uat e power distributi on s ys tem;

(c) Sewerage facilities a n d a n efficient a n d ad e qua t e solid waste dis pos al

system; a n d

(d)Access to p ri m a r y r o a d s a n d t r a n s p o r t a t i o n facilities. The provisions of other bas ic

services a n d facilities s u c h a s h e al th , education,

c ommunic ati ons, security, recreation, relief a n d welfare shall be p l a n n e d a n d

shall be given priority for implementation by th e local government u n i t a n d

concerned agencies in cooperation with th e private sector a n d th e beneficiaries

themselves.

The local governmen t u n i t , in coordination with th e concerned na ti o nal

agencies, shall e n s u r e t h a t thes e basic services ar e provided a t th e m o s t cost-

efficient ra t e s , a n d shall s et a s m e c h a n i s m to coordinate operationally th e

t h r u s t s , objectives a n d activities of other government agencies concerned with

providing bas ic services to ho u s in g projects.

Sec. 2 2 . Livelihood Component. — To extent feasible, socialized ho us i ng a n d

rese ttlem ent projects shall be located n e a r a r e a s where employment

opportunities are accessible. The government agencies dealing with th e

development of livelihood p r o gr a ms a n d g r a n t of livelihood l oans shall give

priority to th e beneficiaries of th e Program.

Sec. 2 3 . Participation of Beneficiaries. — The local government u n i t s , in

coordination with th e Presidential Commission for t h e U r b a n Poor a n d

concerned government agencies, sha ll afford Program beneficiaries or the ir duly

designated repr esentatives a n opportunity to be h e a r d a n d to participate in th e

decision-making process over m a t t e r s involving th e protection a n d promotion

of their legitimate collective interes t which shall include appr opri at e

do cum e n ta tion a n d feedback m e c h a n i s m s . They shall also be encouraged to

organize themselves a n d u n d e r t a k e self-help cooperative ho u s in g a n d ot her

livelihood activities. They shall a s s i s t th e G overnment in preventing th e

incu rs ions of professional s q u a tt e r s a n d m e m b e r s of s q u a t ti ng syndicate s into

their communities .
In i ns tan c e s when t h e affected beneficiaries have failed to organized themselves

or form a n alliance within a r easonabl e period prior to th e implementation of

th e pro g r am of projects affecting t h e m , c onsultation between th e impl ementing

agency a n d th e affected beneficiaries shall be conducted with th e a s s is t an c e of

th e Presidential Commission for th e U r b a n Poor a n d th e concerned

nongovernment organization.

Sec. 2 4 . C onsultation with Private Sector. — Opportuniti es for ad e quat e

consul tation shall be accorded to th e private sector involved in socialized

ho usi ng project p u r s u a n t to t h i s Act.

ARTICLE VI

AREAS FOR PRIORITY DEVELOPMENT, ZONAL IMPROVEMENT PROGRAM

SITES AND SLUM IMPROVEMENT AND RESETTLEMENT PROGRAMS

SITES
Sec. 2 5 . Benefits. — In addition to th e benefits provided u n d e r existing laws

a n d other related i ssu a n c e to o c c u p a n ts of a r e a s for priority development,

zonal improvement pro g ram si tes a n d s l u m improvement a n d rese ttlem ent

pro g ram sites, s u c h o c c u p a n ts shall be entitled to priority in all government

projects initiated p u r s u a n t to t h i s Act. They shall also be entitled to th e

following s u p p o r t services:

(a) L a n d surveys a n d titling a t min ima l cost;

(b) Liberalized t e r m s on credit facilities a n d ho usi ng l oans a n d one

h u n d r e d percent (100%) deducti on from every h omebuy er's gros s income

tax of all interes t p a y m e n ts m a d e on d o c u m e n t s lo ans in cur r ed for th e

construction or p u r c h a s e of th e hom ebuyer's house

(c) Exemption from th e p a y m e n t of d o cu m en t ary s t a m p tax, registration

fees, a n d other fees for th e i ssu an c e of t r a n s f e r certificate of titles;

(d) Basic services a s provided for in Section 2 1 of t h i s Act; a n d

(e) Su ch other benefits t h a t m a y arise from th e impl ementation of t h i s

Act.

ARTICLE VII

URBAN RENEWAL AND RESETTLEMENT

Sec. 2 6 . U r b a n Renewal a n d Resettlement. — This shall incl ude th e

rehabili tation a n d development of blighted a n d s l u m a r e a s a n d th e

rese ttlem ent of Pro gram beneficiaries in accordance with th e provisions of t h i s

Act. On-site development shall be i mplemented whenever possible in order to

e n s u r e m i n i m u m rese ttlem ent of th e beneficiaries of t h e Pr ogram from their

existing places of occupancy shall be u n d e r t a k e n only when on-site

development is not feasible a n d after compliance wi th th e procedures laid down

in Section 2 8 of t h i s Act.

Sec. 2 7 . Action Against Professional Squat t ers a n d Squatting Syndicates. —

The local governmen t u n i ts , in cooperation with th e Philippine National Police,

th e Presidential Commission for th e U r b a n Poor (PCUP), a n d th e PCUP-

accredited u r b a n poor organization i n th e ar e a , shall a d o p t m e a s u r e s to

identify a n d effectively curtail th e nef arious a n d illegal activities of professional

s q u a tt e r s a n d sq u atti n g syndicates , a s her ein defined.

Any p ers on or group identified a s s u c h shall be s u m m a r il y evicted a n d their

dwellings or s t r u c tu r e s demolished, a n d shall be disqualified to avail of t h e

benefits of th e Program. A public official who tolerates or a b e t s th e co mmission of th e

abovementioned a c t s shall be deal t with in accordance with existing

laws.

For p u r p o s e s of t h i s Act, professional s q u a t t e r s or m e m b e r s of sq ua t ti n g

syndicates shall be imposed th e penalty of six (6) years i mp ris o nm e n t of a fine

of n o t less t h a n Sixty t h o u s a n d pes os (P60,000.00 ) b u t not more t h a n One

h u n d r e d t h o u s a n d pes os (P100,000), or bo t h , a t th e discretion of th e co urt.

Sec. 2 8 . Eviction a n d Demolition. — Eviction or demolition a s a practice shall

be discouraged. Eviction or demolition, however, m a y be allowed u n d e r t h e

following situati ons:

(a) When p e r s o n s or entities occupy dang e r a r e a s s u c h a s esteros,

railroad tr a c k s , garbage d u m p s , rive rban ks, shorelines, waterways, a n d

other public places s u c h a s sidewalks, r o a d s, p a r k s , a n d playgrounds ;

(b) When government i n f r as tr u c tu r e projects with available fundi n g ar e

a b o u t to be implemented; or

(c) When there is a c ourt order for eviction a n d demolition.

In t h e execution of eviction or demolition orders involving underprivileged a n d

homeless citizens, t h e following shall be m a n d a t or y:

(1) Notice u p o n th e effected p e r s o ns or entities a t least thirty (30) d a y s

prior to th e da t e of eviction or demolition;

(2) Adequate c onsul ta ti ons on t h e m a t t e r of settlement with th e duly

designated repr esentatives of t h e families to be resettled a n d th e affected

communiti es in th e a r e a s where they ar e to be relocated;

2. Research on the significant of the HLURB in Housing and Urban Development.

A. What is HLURB

The HLURB, as the lead agency in the provision of technical assistance to local government units in
the preparation of comprehensive land use plans; regulation of housing, land development and
homeowners association; and adjudications of disputes related thereto, is committed to deliver its
services with competence and integrity in order to satisfy its stakeholder.

B. What are the mandates, contents?

MANDATES HLURB IN RETROSPECT

1. PLANNING : (EO 648; EO 72; RA 7279)

• Formulate guidelines for Comprehensive Land Use Plans (CLUPs)

• Render technical assistance to LGU’s in CLUP preparation and to members of Provincial Land Use Committee
(PLUC) and Regional Land Use Committee (RLUC) in CLUP Review.
• Review and ratify CLUPs of highly urbanized cities (HUCs) and independent component cities (ICCs) and review
CLUPs of Metro Manila
• Update and revise the National Urban Development and Housing Framework under the direction of HUDCC
• Train LGUs in subdivision plan approval and zoning enforcement

2. REGULATION: (EO 648; EO 90; EO 71; EO 72; PD 957, 1216, 1344; BP 220; RA 7899; RA 9904; RA8763 (Sec.26));

• Register and license subdivision and condominium projects, farm lots, memorial parks and columbaria.
• Monitor development and construction of registered/licensed projects.
• Update and revise rules, guidelines and standards on housing and real estate.
• Approve Master Deed and Declaration of Restrictions of condominium project, and any amendment or
revocation thereof decided upon by a simple majority of all registered owners (concurrently with City or
Municipal Engineer).
• Issue Locational Clearances for projects considered to be of vital and National or Regional Economic or
Environmental significance.
• Register and supervise HOAs.
• Register real estate brokers, dealers and salesmen engaged in selling projects under HLURB jurisdiction.

3. ADJUDICATION: (EO 648; RA 9904, 8763 (Sec. 26))

• Disputes between subdivision lot or condominium unit buyer and developer.

• Intra- and Inter-Homeowners associations disputes.
• Appeals from decisions of local zoning bodies.

C. Penalties and Fees if any.

Name of the law - contents of the law - penalties and fees.

2. Research on the significant of the HLURB in Housing and Urban Development. Guide
questions - What is HLURB - What is the mandate, contents. - Penalties and Fees if any.