nepuaiic oF THE PHILiPe: © Departitént of Human Settlements and Urban Development Kogaworan ng Pananahi nang Pantao at Pagpapauniad ng Kalu DEPARTMENT ORDER NO. 2°72" 008 Series of 2020 SUBJECT: PARTITION AND TRANSFER OF THE ASSETS OF THE HOUSING AND URBAN DEVELOPMENT COORDINATING COUNCIL (HUDCC) AND HOUSING AND LAND USE REGULATORY BOARD (HLURB) TO THE DEPARTMENT OF HUMAN SETTLEMENTS AND URBAN DEVELOPMENT (DHSUD) AND THE HUMAN SETTLEMENTS ADJUDICATION COMMISSION (HSAC) |. BACKGROUND AND OBJECTIVES Republic Act No. 11201 created the Department through the consolidation of the Housing and Urban Development Coordinating Council (HUDCC) and the Housing and Land Use Regulatory Board (HLURB) and mandated it broadly as the primary national government entity responsible for the management of housing, human ‘settlement and urban development. Corollarily, the law consolidated the functions of the HUDCC and the land use planning and regulatory functions of the HLURB to the Department and reconstituted the HLURB's adjudication functions into the Human Settlements Adjudication Commission (Commission), an attached agency of the Department. It likewise subrogated and transferred to the Department (as the successor of the dissolved entities) all the rights and liabilities of the said entities, except those that may be transferred to or absorbed by the Commission. In line with the creation of the consolidated Department, the consolidation of all functions thereto of the previous agencies (other than adjudicatory), and its subrogation to all their rights and liabilities, the law directed the appropriate transfer of the assets of the dissolved entities to the successor Department and the Commission. During the transition period, the Asset Management Sub-Committee (Committee), composed of members from the Department and Commission, made an inventory of all the assets and liabilities/obligations of both dissolved agencies (Inventory) for purposes of the consolidation and transfer of assets and assumption/subrogation of rights and obligations to or by the Department, and to identify such pertinent portion to be transferred to or absorbed by the Commission. In the meantime, the Placement of Personnel under the approved Organizational Structure and Staffing Patter of the Department and the Commission have already been approved and become final. Thus, allowing the proportionate allocation of HLURB assets based on the number of HLURB personnel absorbed by, and in the anticipation of the full complementation of, the Department and the Commission, respectively. “mr Bal nS ug ayan Aare Maman Set ian. GoernhY mak feet Lah OW GOXSLOFEEPursuant to the power of the Secretary to perform such powers as may be required to interpret and implement the objectives of RA 11201 and its IRR, this Order is issued to facilitate, expedite and ensure the orderly collation, formal consolidation and actual transfer of the assets, liabilities, rights, obligations and transactions of the dissolved agencies (collectively referred to as, “Assets") to the Department, and thereafter the identification of the pertinent Assets to be transferred to or absorbed by the Commission Il. LEGAL BASES 1. Sec. 4, RA 11201 SEC. 4. Creation and Mandate of the Department of Human Settlements and Urban Development. —There is hereby created the Department of Human Settlements and Urban Development through the consolidation of the Housing and Urban Development Coordinating Council (HUDCC) and the Housing and Land Use Regulatory Board (HLURB). xxx 2. Section 4, IRR of RA 11201 SECTION 4. Creation and Mandates of the Department. — The Department is created by the Act through the consolidation of the Housing and Urban Development Coordinating Council (HUDCC) and the HLURB, simultaneously with the reconstitution of HLURB into the Commission pursuant to Section 12 of the Act. The functions of the HUDCC and the planning and regulatory functions of HLURB shall be transferred to and consolidated in the Department, while the Commission shall assume and continue to perform the adjudication functions of HLURB pursuant to Section 25 of the Act. The Department shall 70K 4.2 Be the sole and main planning and policy-making, regulatory, program coordination, and performance monitoring entity for all housing, human settlement and urban development concerns x«x. For this purpose, »« the following functions of HLURB are hereby transferred to the Department: (a) The land use planning and monitoring function 200%, (b) The regulatory function, including the formulation, promulgation, and enforcement of rules, standards and guidelines over subdivisions, condominiums and similar real estate developments 0x (c) The registration, regulation and supervision of HOAs xx3. Sections 25 (last paragraph) and 27 (a), RA 11201 SEC. 25. Transfer of Functions and Assets. xxx The Department shall, by virtue of this Act, be subrogated to all rights and assume all liabilities of the HUDCC and HLURB, except those that may hereafter be transferred to or absorbed by the Commission. SEC. 27. Transfer of Assets and Obligations. xox (@) The assets, equipment, funds, records, and pertinent transactions of the HUDCC and HLURB shall be transferred to the Department and the Commission; x S Section 43, IRR of RA 11201 SECTION 43. Transfer of Functions, Assets and Obligations. — All transfer of functions, assets, funds, personnel, equipment, properties, transactions, and personnel in the affected national government agencies »« shall be completed within six (6) months from the effectivity of the Act x00 Accordingly, the following dispositive actions shall be implemented x0: 43.1 Land and other real property of the HUDCC and HLURB shail be transferred to the Department and the Commission, respectively; 43.2 The allocation of existing equipment, funds, and other assets of the HUDCC and HLURB shall be subject to the distribution of personnel to the Department and the Commission; 43.3 The records and pertinent transactions of the HUDCC and HLURB shall be distributed to the Department and the Commission, according to their respective mandates; »« The Department shall, by virtue of the Act, be subrogated to all rights and assume all the liabilities of the HUDCC and HLURB, except those that may hereafter be transferred to or absorbed by the Commission a Section 7 (h), RA 11201 SEC. 7. -- The Secretary. x0% The Secretary shall have the following functions: 20x (h) Formulate such rules and regulations and perform such other powers as may be required to implement the objectives of this Act; xxx6. Section 13, IRR of RA 11201 SECTION 13. The Secretary. xxx The Secretary shall have the following functions: 20K 13.3 Promulgate rules, regulations and other issuances such as orders circulars, guidelines, and memoranda which are necessary in carrying out the Department's mandates, objectives, policies, plans, programs and projects, or implementing or interpreting the provisions of the Act and of this Rules; YOK lll. CONSOLIDATION AND TRANSFER OF HUDCC AND HLURB ASSETS Pursuant to the provisions of RA 11201 and its IRR, all Assets (including financial assets, intangible assets, real properties and related rights) of the dissolved agencies as of December 31, 2019, are hereby declared consolidated and transferred to the Department, without prejudice to the identification and allocation of HLURB Assets to be transferred (together with the related contracts, rights and obligations) to the Commission upon the favorable recommendation of the Committee and the approval of the Secretary ‘Such Assets shall encompass all accessories thereof, as well as, all administrative, financial, operational, planning, policy, legal files, documents and records (of whatever nature, in whatever form or media, and however/wherever stored), including (but not limited to): 1. all documents, documentations, certificates, deeds, contracts, instruments records relating to all Assets (such as documents evidencing rights, ownership, title, possession or purchase/acquisition, warranties, maintenance/service records, insurance records, etc., as may be applicable); 2. alll files, records, orders, resolutions and other issuances, legal opinions and rulings involving planning, land use/urban planning, housing/real estate development and homeowners association regulatory and policy matters that are part of the functions of the Department (without prejudice to the identification and transfer to the Commission of the case files and records relative to the exercise of its adjudication functions); and, 3. all used/un-used accountable forms to include, but not limited to, the following: Certificates of Registration Licenses to Sell Certificates of Registration/Incorporation Certificates of Filing of Amended Articles of Incorporation Certificates of Filing of Amended By-laws @a9cDFor operational exigencies and unity of direction/objectives, all real properties of the dissolved agencies shall be transferred and registered in the name of the mother Department in the pertinent Registry of Deeds, but subject to such office sharing arrangements with the Commission, as may be approved by the Secretary, that shall specifically designate the parts and spaces thereof to be allocated for the Commission's use/occupation. All vehicles already transferred to the Department or in the possession of the Commission shall be formally transferred and registered in their respective names in the pertinent District Offices of the Land Transportation Office. The proper parties shall execute the necessary transfer documents/instruments as may be required by the Register of Deeds and Land Transportation Office. To accomplish the foregoing, the Committee as reconstituted shall immediately reconvene, to accomplish the following objectives within twenty (20) working days from the issuance of this Order: 1. ensure the complete collation, consolidation and transfer/assumption of all the Assets of the dissolved entities physically and/or in the records, books and accounts of the Department (without prejudice to those that shall be identified and transferred to the Commission pursuant hereto). a. For this purpose, the Committee shall use its Inventory wherein the Assets are classified, as follows: i. Land and Building/Structure ii, IT Equipment iii, Information Systems iv. Motor Vehicles v. Furniture, Fixtures and Books vi, Technical and Scientific Equipment vii. Office Equipment viii, Other Machinery and Equipment ix, Communication Equipment x. Other PPE (semi-expendable items) xi, Files, Documents and Records xi, Financial Assets xiii, Other Assets b. If necessary, the Committee shall correct, revise or add to its Inventory as of December 31, 2019 any and all items that may have been overlooked or omitted and not included therein. 2. cause the formal transfer to the Department andlor its possession, custody and control all: a. funds and accounts (including the HLURB Service Income Fund for its Office Building Construction Projects deposited with the Bureau of the Treasury); and,b. funds allocated/earmarked or lodged in the budget of the Commission Pertaining to or proportionate/commensurate with the HLURB functions, Assets, contracts, transactions, projects, and personnel consolidateditransferred to or absorbed by the Department. 3. identify or supervise the identification of HLURB Assets to be allocated for and transferred to the Commission, and facilitate the documented formal transfer thereof, subject to the following rules: a. The identification of HLURB Assets to be allocated for and transferred to the Commission shall be based on their nature, purpose and function, and should correspond with its adjudicatory functions, the operational requirements of its Central Office and its Regional Arbitration Branches (RABs), and the number of HLURB personnel absorbed and assigned thereto by it. b. The transfer of identified HLURB Assets to the Commission shall be implemented only upon the Committee's favorable recommendation and the Secretary's approval thereof. 4, ensure that all service providers, contractors and other contracting parties {including Local Government Units) under existing deeds, instruments, contracts and memoranda of agreement (including on existing or —_ proposed grants/donations/usufructs) pertaining to andior still in the name of the HLURB shall be informed of the succession and the subrogation/assumption of rights/obligations by the Department. However, all rights and obligations relative to the HLURB Assets that will be identified and officially transferred to the Commission shall be assumed by or transferred to it. The Committee shall coordinate with the Administrative and Finance Services of the Department and of the Commission, as well as with the Regional Offices (ROs)/RABs, to ensure the proper and expeditious implementation of this Order The Administrative Services of the Department shall ensure the prompt, appropriate and properly-documented transfer of the title, possession/custody and control of, and accountability for, the above Assets to the Department and its proper units, ROs, Officials and personnel. Its counterpart in the Commission shall ensure the same as to the approved list of identified HLURB Assets transferred to the latter. The foregoing consolidation and transfer of assets and subrogation/assumption of rights/obligations shall be implemented and documented in accordance with the pertinent accounting, budgeting, auditing and public documentirecord management rules and regulations of the COA, DBM and National Archives IV. RESOLUTION OF ISSUES AND DISPUTES Any issue or dispute arising relative to the identification, allocation or transfer of HLURB assets to the Commission or any of its RABs shall be elevated to the Committee, which shall promptly discuss and amicably settle or resolve the same within three (3) working days from the time it was raised. 6Any doubt, issue or dispute remaining unresolved by the Committee beyond the period given to resolve the same shall be submitted or may be deemed submitted to the Secretary, who shall decide on the matter with finality. This Order shail take effect immediately. EDUARDO D. DEL ROSARIO