FOR : Atty.

Melanie Valenciano
Officer-in-charge, Vice President for Legal Affairs Dept.

Through : JOEEN B. BUENSALIDO

Manager, Remedial Accounts Management

From : MANOLO A. DE GUZMAN

Project Development IV, Remedial Division

SUBJECT : Query on the possibility of Substitution to residents on a CMP

Project which was brought from an Original Member-
Beneficiary

Reference Number :

Date : July 16, 2021

This is in reference to Section 14 of Republic Act 7279 or the Urban Development and Housing
Act of 1992. To wit:

SEC. 14. Limitations on the Disposition of Lands for Socialized Housing. – No land for
socialized housing, including improvements or rights thereon, shall be sold, alienated,
conveyed, encumbered or leased by any beneficiary of this Program except to qualified
Program beneficiaries as determined by the government agency concerned.

Should the beneficiary unlawfully sell, transfer, or otherwise dispose of his lot or any
right thereon, the transaction shall be null and void. He shall also lose his right to the
land, forfeit the total amortization paid thereon, and shall be barred from the benefits
under this Act for a period of ten (10) years from the date of violation.

In the event the beneficiary dies before full ownership of the land is vested on him,
transfer to his heirs shall take place only upon their assumption of his outstanding
obligations. In case of failure by the heirs to assume such obligations, the land shall
revert to the government for disposition in accordance with this Act.
Prepared by:

Marc Alfred G. Garcia

Technical Staff IV