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SBN 37

SBN 232

SBN 328

Sen. Loren Legarda

Sen. Franklin Drilon

Sen. Joseph Victor Ejercito

An Act Creating the


Department of Housing
and Urban Development
(DHUD), Defining its
Mandates, Powers and
Functions, Providing Funds
Therefor and For Other
Purposes

An Act Creating the


Department of Housing
and Urban Development

An Act Creating the


Department of Human
Settlement and Urban
Development, Defining its
Mandates, Powers and
Functions, Providing Funds
Therefor and For Other
Purposes

Sec. 1. Title. This Act


shall be known as the
Department of Housing
and Urban Development
Act.

SECTION 1. Short Title.


This Act shall be known
as the "Department of
Housing and Urban
Development Act".

SEC 1. Title. - This act


shall be known as the
Department of Human
Settlement and Urban
Development Act of 2016".

Sec. 2. Declaration of
Policies. The State shall
undertake, in accordance
with the private sector, a
continuing program of
urban development and
housing which will make
available at affordable

SEC. 2. Declaration of
Policy. The State shall
pursue the realization of a
modern, humane,
economically viable and
environmentally
sustainable society where
the urbanization process is

SEC 2. Declaration of
Policies- The state shall,
by law and for the
common good undertake,
in cooperation with the
private, a continuing
program of housing and
urban development which

REMARKS

The provisions of this


section are clearly
favorable to small property
owners and to urban and
rural poor dwellers.
However, in highlighting
the small property

cost, decent housing and


related basic services. In
the implementation of
such program, the State
shall respect the rights of
small property owners.
The State shall pursue the
realization of a modern,
humane, economically
viable and environmentally
sustainable society where
the urbanization process
is manifest in towns and
cities being centers of
productive economic
activity, through
partnerships with multistakeholders; where urban
areas have affordable
housing, sustainable
physical and social
infrastructure and services
facilitated under a
democratic and
decentralized system of
governance; and where
urban areas provide the
opportunities for an
improved quality of life
and the eradication of

manifest in towns and


cities being centers of
productive economic
activity, led by market
forces; where urban areas
have affordable housing,
sustainable physical and
social infrastructure and
services facilitated under a
democratic and
decentralized system of
governance; where urban
areas provide the
opportunities for an
improved quality of life
and the eradication of
poverty; and where there
is a high degree of
complementarity between
urban and rural
communities.
The State shall ensure that
poor dwellers in urban and
rural areas shall not be
evicted nor their dwelling
demolished, except in
accordance law.
In addition, the State shall
encourage on-site

shall make available at


affordable cost, decent
housing and basic services
to underprivileged and
homeless citizens in urban
centers and resettlement
areas. It shall also promote
adequate employment
opportunities to such
citizens. In the
implementation of such
program, the state shall
respect the rights of small
property owners.
The state shall pursue the
realization of a modem,
humane, economically
viable and,
environmentallysustainable society where
the urbanization process is
manifest in towns and
cities being centers of
productive economic
activity and is led by
market
forces; where urban areas
have affordable housing,
sustainable physical and
social infrastructure and

owners and specifically


pertaining to urban and
rural poor dwellers, the
provisions seemingly taken
out the middle class out of
the picture.
Adequate housing and
sustainable urban
development must be for
all and not just in favor of
a particular class of the
populace.

poverty.
Urban or rural poor
dwellers shall not be
evicted nor their dwelling
demolished, except in
accordance with law.

development in the
implementation of housing
programs and shall
promote the creation of
new settlements and
development of
sustainable urban renewal
programs.

services facilitated under


the democratic and
decentralized system of
governance; and where
urban areas provide the
opportunities for an
improved quality of life
and eradication of poverty.
Poor dwellers in urban or
rural areas shall not be
evicted nor their dwelling
demolished, except in
accordance with law.

Sec. 3. Definitions. As
used in this Act, the
following terms shall
mean:
3.1. Attachment. refers
to the relationship
between the department
and the attached agency
or corporation for purposes
of policy and program
coordination and as further
defined under the
Administrative Code of
1987.

SEC. 3. Definition of
Terms. As used in this
Act:
a. Attachment refers to the
lateral relationship
between the department
and the attached agency*
or corporation for purposes
of policy and program
coordination and as further
defined under the
Administrative Code.
b. Land Use Plan refers to

sec. 3. Definition of
Terms- As used in this Act,
the following tens shall
mean:
a) Attachment refers to
lateral relationship
between a department and
the attached agency or
corporation for purposes of
policy and program
coordination and as further
defined in the
Administrative Code.

3.2. Housing. refers to


the system and its
components which
establish the residential
quality of life, including
housing, utilities, access to
social services and
community facilities,
security, transportation
facilities, employment and
other aspects related to an
individuals residence and
well-being.
3.3. Informal Settler
Families (ISFs) refers to
household/s living in: (a) a
lot or lots without the
consent of the property
owner; (b) danger areas;
(c) areas for government
infrastructure projects; (d)
protected/forest areas
(except for indigenous
people; (e) Areas for
Priority Development
(APDs), if applicable;
and/or (f) other
government/ public lands
or facilities not intended

the document, formulated


by the loci government in
consultation with its
stakeholders, that defines
or provides guidelines on
the allocation, utilization,
development and
management of all lands
within a given territory or
jurisdiction according to
the inherent qualities of
the land itself and
supportive of economic,
demographic, sociocultural and environmental
objectives.
c. Housing refers to a
multidimensional concept
relating to the process of
Il residing and the objects
of dwelling whose main
attributes are location
relative to access to
livelihood, tenure
arrangements, cost and
physical structure, as well
as their environment.
Housing is likewise a
physical structure as well
as a social structure,

b) Housing refers to the


system and its
components which
establish the residential
quality of life, including
housing, utilities, access to
social services and other
community facilities,
security and other aspects
related to an individual's
residence.
c) c) Informal Settler
Famllles (ISFs) refer to
household living in:
1) Lot without consent of
the property owner; 2)
Dangerous areas;
3) Areas for government
infrastructure projects;
4) Protected/ forest areas
(except for indigenous
people);
5) Areas for Priority
Development (APDs, if
applicable); and
6) Other government/
public land or facilities not
intended for habitaon.

for habitation.
3.4. Urban
Development. pertains
to the process of
occupation and use of land
or space for such activities
as residential, industrial,
commercial and the like or
their combinations,
necessary to carry out the
functions of urban living. It
entails the 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
a built environment.

functioning at different
spatial scales from homes,
neighborhoods,
communities,
municipalities, cities,
provinces, and regions. It
is also a sector of the
economy, an important
category of land use in
both urban and rural
areas, especially in cities,
and is an important factor
in the overall dynamics of
the urban system;
d. Urban Development
refers to the process of
occupation and use of land
or space for such activities
as residential, industrial,
commercial, and the like or
their combinations,
necessary to carry out the
functions of urban living. It
entails the 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

d) Urban Development
refers to the process of
occupation and use of land
or space for such activities
as residential, industrial,
commercial and the like or
their combinations,
necessary to carry out the
functions of urban living. It
entails the 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
a built environment.
e) Human Settlement comprise of (a) physical
components of shelter and
infrastructure; and (b)
services to which the
physical elements provide
support, such as
community services which
includes education, health,
culture, welfare, recreation
and nutrition

a built environment.
e. Urban Development
Planning refers to city
planning or town planning,
is a process that involves
the planning of diverse
elements that comprise an
urbanized area, including
its physical infrastructure,
environment, housing,
transportation, and
management of land use
and urban growth.

SEC. 4. Creation and


Mandate of the
Department of Housing
and Urban
Development. There is
hereby created the
Department of Housing
and Urban Development
(DHUD), hereinafter
referred to as the
Department, by
consolidating
the functions of the
Housing and Urban
Development Coordinating

SEC. 4. Creation and


Mandate of the
Department of Housing
and Urban
Development. There is
hereby created the
Department of Housing
and Urban Development,
hereinafter referred to as
the Department, through
the consolidation of the
Housing and Urban
Development Coordinating
Council (HUDCC) and the
Housing and Land Use

Sec. 4. Creation and


Mandates of the
Department of Human
Settlement and Urban
Development. There is
hereby created the
Department of the Human
Settlement and Urban
Development, hereinafter
referred to as the
Department, through the
consolidation of the
Housing and Development
Coordinating Council
(HUDCC) and the Housing

Council
(HUDCC) and the planning
and regulatory functions of
the Housing and Land Use
Regulatory Board (HLURB),
which shall act as the
primary national
government entity
responsible for the
management of housing
and urban development. It
shall be the sole and main
planning and policymaking, regulatory,
program coordination, and
performance monitoring
entity for all housing and
urban development
concerns, primarily
focusing on the access to
and affordability of
housing and related basic
services vital to human
needs.

Regulatory Board (HLURB).


The Department shall act
as the primary national
government entity
responsible for the
management of housing
and urban development. It
shall' be the sole and main
planning and policymaking, regulatory,
program coordination, and
performance monitoring
entity for all housing and
urban development
concerns, primarily
focusing on the access to
and the affordability of
basic human needs.

and Land Use Regulatory


Board (HLURB). The
Department shall act as
primary national
government entity
responsible for the
management of housing,
human settlement and
urban development.

SEC. 5. Powers and


Functions. The
planning and regulatory
function of the Housing
and Land Use Regulatory

SEC. 5. Powers and


Functions. The
Department shall:

Sec. 5.Powers and


Functions- the
Department shall perform
the following:

a. Formulate a national

It shall be the sole and


main planning and policymaking regulatory,
program coordination, and
performance monitoring
entity for all housing,
human settlement and
urban development
concerns, primary focusing
on the access to and
affordability of the basic
human needs.

Board (HLURB) is hereby


transferred to the
Department.
In addition thereto, the
Department shall perform
the following:
5.1. Formulate a national
urban development and
housing policy and
strategy, in coordination
and in consultation with
national and local
stakeholders, toward
ensuring consistency with
the Philippine
Development Plan (PDP)
and the National Physical
Framework Plan (NPFP) to
promote social and
economic welfare;
5.2. Ensure comprehensive
and well-coordinated
planning by the national
government and local
government units toward
ensuring well-coordinated
national and local urban
and community

urban development and


shelter framework, policy
and strategy consistent
with Philippine
Development Plan, in
coordination and
consultation with the
stakeholders, and ensuring
its consistency;
b. Establish and operate a
national urban
development and shelter
planning system, and
develop the necessary
planning guidelines,
procedures and urban
development standards
that will define and
delineate the roles of all
stakeholders, and guide
the planning, standards
localization, promulgation
and enforcement of rules,
and service delivery
programs of national
government and local
governments, and
facilitate private sector
investment;

a) Formulate the national


and urban development
and housing policy and
strategy that ensure
consistency with the
Philippine Development
Plan (PDP) and the
National Physical
Framework Plan (NPFP) to
promote social and
economic welfare;
b) Exercise initiative and
assume a lead role in
coordinating, supervising,
and integrating all
government activities
relative to the human
settlement and urban
development;
c) Formulate housing
finance policies to promote
the establishment of self
sustaining, private sectorled housing financing
system;
d) Develop and maintain
housing database that
shall include a shelter and

development programs
and activities;
5.3. Exercise lead role in
coordinating, supervising
and ensuring
harmonization and
complementation between
and among all government
programs and activities
relative to housing and
urban development;
5.4. Coordinate with
relevant agencies of the
government and local
government 49 units with
respect to the
implementation of
programs and services
that have a major impact
on housing and urban
development;
5.5. Formulate effective
and efficient housing
finance policies and
programs, in coordination
with the Bangko Sentral ng
Pilipinas, toward the
establishment of a self-

c. Formulate and enforce


general and specific
policies for housing
development and
resettlement;
d. Implement a single
regulatory system that
shall govern all activities
relative to the planning,
production, marketing, and
management of housing
and urban development
projects;
e. Formulate housing
finance policies, and
recommend and facilitate
the development of
mechanisms that promote
the establishment of a selfsustaining housing finance
system;
f. Formulate and
implement a shelter
program for urban poor
communities/informal
settler families that will
promote their social and
economic welfare, and

urban development
management information
system;
e) Manage and oversee
the fast-tracked
development of
proclaimed housing sites,
including the use of these
land as resource
mobilization strategy to
raise alternative funds in
developing new town
housing projects which will
serves as central
relocation sites for the
affected informal settlers;
f) Develop effective and
efficient financing
programs for housing
beneficiaries and
developers;
g) Ensure the
Department's participation
in sustainable
development, climate
change adaption, and
disaster risk reduction;

sustaining, private sectorled housing finance


system that will ensure
housing finance
accessibility and
affordability among those
in great need;
5.6. Manage and oversee
the development of
proclaimed housing sites,
including the use of land
assets as resource
mobilization stratew to
raise alternative funds in
developing new housing
projects which will serve
as central relocation sites
for the affected informal
settlers, while at the same
time ensuring that these
housing projects shall have
access to jobs,
transportation systems,
basic services, and
affordable sustainable
sources of to meet the
community's power needs;
5.7. Exercise oversight
function, coordinate,

mobilize resources and


encourage stakeholder
participation in the
provision of urban services
for the poor;
g. Delineate areas for
priority development as
housing and urban renewal
areas and prepare
programs for their
regeneration;
h. Declare an identified
area as either Urban
Development, New
Settlement Site or Renewal
Site, and together with the
concerned LGU, develop
and implement projects
under PPP arrangement;
i. Develop and undertake
housing development
and/or resettlement
projects, including
prototype projects,
through joint ventures or
other arrangements with
public and private entities,
either domestic or foreign;

h) Enter into contracts,


joint venture agreements
or understanding, either
domestic or foreign, under
such terms and conditions
as the Department may
deem proper and
reasonable and the subject
to existing laws;
i) Discharge all
responsibilities of
government that may arise
from treaties, agreements
and other commitments on
human settlement and
urban development to be
extended through bilateral
or multilateral loans and/or
assistance programs;
j) Receive, take and hold
by bequest, device, gift,
purchase or lease, either
absolutely or in trust for
any of its purposes from
foreign and domestic
sources, any asset, grant
or property, real or
personal, subject to such
limitations as are provided

monitor and evaluate the


policies and programs of
all attached agencies as
provided for in Sec. 27 of
this Act;
5.8. Conduct
comprehensive studies
and researches on housing
and urban development,
and its related issues, and
to submit
recommendations to the
President relative thereto,
including on matters
related to the
administration of national
programs affecting such
issues;
5.9. Minimize the
paperwork burden among
homeowners and home
buyers, and 15 those
covered by the
government's housing
programs by eliminating
unnecessary 16 and
duplicative information
requirements;

j. Conduct the pre- and


post-proclamation
activities as orchestrator
and facilitator of the entire
disposition process,
including the stewardship
of the Local Inter-Agency
Committees;
k. Oversee the fast-tracked
development and
management of
proclaimed housing sites;
including the use of these
land assets as resource
mobilization strategy to
raise alternative funds in
developing new town
housing projects;
l. Develop and establish a
sector performance
monitoring and
assessment mechanism;
m. Discharge all
responsibilities of the
government, as may arise
from treaties, agreements,
and other commitments on

under existing laws and


regulations;
k) Exercise oversight
function, coordinate,
monitor and evaluate the
policies and programs of
all its attached agencies;
I) Conduct continuing and
comprehensive studies
and research necessary for
human settlement and
urban development;
m) Provide assistance to
build the capacity of LGUs
in urban development and
management to
strengthen the role of
provinces, cities and
municipalities as the
primary entries for the
urban development,
renewal planning and
management;
n) Monitor local and
government compliance
with housing and urban
development laws,

5.10. Build and maintain a


Housing database that will
contain a housing project
inventory, both at the
national and local levels,
the status of these
projects, and their key
features. The database will
also contain relevant
information required by
the various housing
agencies as part of efforts
to minimize paperwork
burden;
5.11. Utilize income
generated from fees, fines,
charges, and other
collections in the
performance of its
functions and to defray
operating expenses;
5.12. Enter into contracts,
joint venture agreements,
public-private
partnerships, and such
other agreements, either
domestic or foreign, under
such terms and conditions
as it may deem proper and

housing and resettlement


to which it is a Signatory,
including the
determination of forms of
assistance for housing
development to be
extended through
multilateral or bilateral
assistance programs;
n. Own, lease, purchase or
otherwise acquire, sell or
otherwise dispose of
property, real or personal,
as may be necessary and
appropriate for the
discharge of its functions;
o. Purchase, acquire, sell,
discount, refinance, or
otherwise deal in home
mortgages or
participations therein;
p. Enter into and perform
such contracts with any
person or entity, public or
private, as may be
necessary, proper or
conducive to the
attainment or furtherance

standards and guidelines,


as well with their judicious
and fair application of local
housing and urban
development ordinances;
o) Support local
government partnerships
with communities, civil
society organizations, nongovernment organizations,
and private groups in the
implementation of urban
development and renewal
p) Develop and establish a
sector performance
monitoring and
assessment mechanism,
monitor and independently
report on the performance
of national government
agencies and LGUs in the
human settlement and
urban development sector
to enable continuing
improvements in sector
policy and strategy
formulation;
q) Lead in the deposition

reasonable subject to
existing laws;

of the objectives and


purposes of this act;

5.13. Discharge all


responsibilities of
government as may arise
from treaties, 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 bilateral
or multilateral loans and/or
development assistance
programs, subject to
existing laws 35 and
regulations;

q. Receive donations,
grants, and bequests and
utilize the same for the
attainment of its
objectives. Such
donations, grants and
bequests shall be exempt
from the payment of
transfer taxes and be fully
deductible from the gross
income of the donor or
grantor for income tax
purposes;

5.14. Receive, take and


hold by bequest, device,
gift, purchase or lease,
either
absolutely or in trust for
any of its purposes from
foreign and domestic
sources, any asset, grant

r. Exercise the right of


eminent domain or acquire
by purchase privately
owned lands for purposes
of housing development,
resettlement and related
services and facilities;
s. Promote housing
development by providing
technical assistance;
t. Provide assistance to the
local governments in the

of lands intended for


housing and owned by the
Government or any of its
subdivisions,
instrumentalities, agencies
or corporations (GOCCs)
such as but not limited 18
to military reservations,
lands reserved for
government offices,
facilities and
other installations, and
other land assets including
friar lands which have not
been used for the
purposes for which have
been reserved or set aside
for the past ten (10) years
from the effectivity of
Republic Act No. 7279,
otherwise known as the
Urban Development and
Housing Act of 1992.
r) Declare an area as
Urban Development
Renewal site including the
development and
implementation of subprojects jointly with the
concerned LGUs under a

or property, real or
personal, subject to such
limitations provided under
existing laws and
regulations;
5.15. Provide assistance to
local government units
toward building their
capacities in housing and
urban development and
management and to
strengthen the role of
provinces, cities and
municipalities as the
primary entities for urban
development/ renewal
planning and
management;
5.16. Promulgate zoning
and other land use control
standards and guidelines
which shall govern land
use plans and zoning
ordinances of local
governments, subdivision
or estate development
projects, subject to the
provisions of law;

discharge of its roles in


urban development and
urban management;
u. Assist the LGUs in the
establishment of a Special
Housing Fund (SHF) to be
sourced from the proceeds
of Real Property Tax (RPT)
pegged at one percent
(1%) of the assessed value
of real property;
v. Declare, upon petition of
the homeowners
association and after due
notice and hearing, a
subdivision or
condominium project as
abandoned and grant the
petitioner the authority to
take over, cause, or
initiate the development
and completion of the
project at the expense of
the owner or developer,
jointly and severally;
w. Determine, fix and
collect reasonable fees
and charges necessary for

Public-Private Partnership
(PPP) arrangement;
s) Advocate and assist the
LGUs in the establishment
of Special Housing Fund
(SHF) to be sourced from
the proceeds of Real
Property Tax (RPI) pegged
at one half per centum
(.5%) of the assessed
value of real property
which will be exclusively
used for identification of
sites for socialized housing
and low-cost housing, data
gathering, inventory of
lands; mobilization and
implementation of
socialized and low-cost
housing programs of the
LGUs;
t) Take the lead in the
conduct of Pre- and PostProclamation activities as
orchestrator and facilitator
of the entire disposition
process, including the
stewardship of the Local
Inter-Agency Communities

5.17. Monitor local


government compliance
with housing and urban
development laws,
standards and guidelines
and Republic Act No. 9485,
otherwise known as the
Anti-Red Tape Act of 2007
with respect to housing
and urban development
projects, as well as their
judicious and fair
application of local housing
and urban development
ordinances;
5.18. Encourage and
support local government
partnerships with
communities, civil society
organizations, nongovernment organizations,
and private groups in the
implementation of urban
development/ renewal
projects;
5.19. Develop and
establish a sector
performance monitoring
and assessment

the effective
implementation of all laws,
rules and regulations
enforced by the
Department and impose
reasonable fines and
penalties for violation
thereof;
x. Register and regulate
Homeowners Associations
(HOAs), Condominium 17
Units Owners
Association/Corporation
(CUOA/C) and other
housing development
associations;
y. Promulgate such rules
and regulations and to do
and perform any and all 20
things as may be
necessary and proper to
carry out its
responsibilities, powers
and functions under this
Act; and
z. Perform such other
related functions as may
be mandated by law.

(LIACs) which are the


primary tasked to oversee
the implementation of
housing proclamation
projects
u) Effect and oversee a
single regulatory system
that shall govern all
activities relative to the
planning, development,
production, marketing, and
management of housing
and urban development
projects;
v) Take over unfinished,
incomplete or abandoned
licensed real estate
development
projects under Presidential
Decree No. 957, in
coordination with the
appropriate government
agencies and
instrumentalities under
such guidelines as may be
formulated;
w) Encourage the private
sector to address and

mechanism, and monitor


the performance of
national government
agencies, local
government units, as well
as other entities involved
in housing and urban
development;

serve a large part of the


country's housing needs;

5.20. Lead in the


disposition of governmentowned lands, including
those owned by
government-owned and
controlled corporations
and those which have not
been used for the purpose
for which they have been
reserved or set aside for
the past ten (10) years
from the effectivity of
Republic Act No. 7279,
otherwise known as the
Urban Development and
Housing Act of 1992,
provided that these lands
for disposition, as
approved by the President
or by the local government
unit concerned, will be
intended for socialized

y) Implement prototype
projects, including the
power of eminent domain,
in housing and urban
development
undertakings;

x) Promote, accredit and


regulate the use of
indigenous material and
technologies in the
housing construction;

z) Determine, fix and


collect reasonable
amounts to be charged as
fees and charges
necessary for the effective
implementation of all laws,
rules and enforced by the
Department and impose
reasonable fines and
penalties for violation
thereof, provided, that
income generated from
fees, fines, charges and
other collections in the
performance of its

housing.
5.21. Ensure that in
leading or coordinating the
development of social
housing and resettlement
areas for the homeless and
underprivileged, the
availability of basic
services and facilities,
their accessibility and
proximity to job sites and
other economic
opportunities shall not be
compromised.
5.22. Declare areas as
Urban Development/
Renewal site(s) and
develop and 24 implement
sub-projects related
thereto, jointly with the
concerned local
government
units under a Public
Private Partnership (PPP)
arrangement;
5.23. Assist local
government units (LGUs)
in the establishment of

functions may be utilized


to defray operating
expenses;
aa) Register, regulate and
provide community
development programs for
Homeowners Association
(HOAs) and Condominium
Owners
Associations/Corporations
(CUONCs);
bb)Formulate and ensure
the implementation of
housing policies and
programs for urban poor
communities and informal
settler families (ISFs) that
will promote the social and
economic welfare of
homeless families,
particularly the poor and
unprivileged;
cc) Initiate and encourage
deeper and active
involvement and
participation of a broader
spectrum of citizenry
through housing

Special Housing Fund


(SHF) to be sourced from
the proceeds of Real
Property Tax (RPT) as
provided for under Section
43 of Republic Act No.
7279 pegged at one half
percent (.5%) of the
assessed value of real
property which will be
exclusively used for the
identification of sites for
socialized housing and
low-cost housing, data
gathering, inventory of
lands; and mobilization
and implementation of
socialized and low-cost
housing programs of the
LGUs.
5.24. Take the lead in the
conduct of Pre- and PostProclamation activities as
orchestrator and facilitator
of the entire disposition
process including the
stewardship of the Local
Inter-Agency Committees
(LIACs) which are primarily
tasked to oversee the

cooperatives and civil


society organizations
which shall be used as an
avenue through which
housing needs are
assessed and recognized
and, together with the
local government units,
serve as the implementing
agencies for housing and
urban development
programs; and
dd) Perform such other
related functions as may
be mandated by law.

implementation of housing
proclamation projects;
5.25. Effect and oversee a
single regulatory system
that shall govern all
activities relative to the
planning, production,
marketing, and
management of housing
and urban development
projects;
5.26. Take over unfinished,
incomplete or abandoned
licensed real estate
development projects
under Presidential Decree
No. 957;
5.27. Encourage the
private sector to address
and serve a large part of
the country's housing
needs;
5.28. Promote and accredit
the use of indigenous
materials and technologies
in housing construction
and housing solutions,

including those that


address water and power
needs, as well as
sanitation;
5.29. Implement prototype
projects in housing and
urban development
undertakings, with the
right to exercise the power
of eminent domain, when
necessary;
5.30. Determine, fix and
collect reasonable
amounts to be charged as
fees and charges
necessary for the effective
implementation of all laws,
rules and regulations
enforced by the
Department and impose
reasonable fines and
penalties for violation
thereof;
5.31. Register and regulate
Homeowners,
Homeowners Associations
(HOAs) and 7
Condominium Units

Owners' Association/
Corporation (CUOA/Cs),
and provide assistance in
the formulation of
community development
programs;
5.32. Formulate and
ensure the implementation
of housing policies and
programs for urban poor
communities and informal
settler families (ISFs) that
will promote the social and
economic well-being of
homeless families,
particularly the poor and
underprivileged;
5.33. Initiate and
encourage deeper and
active involvement and
participation of civil
society organizations,
developers associations,
urban planners and other
stakeholders which shall
be used as a venue
through which housing
needs are assessed and
recognized and, in

coordination with the local


government units, serve as
the lead agency for
housing and urban
development concerns;
5.34. Assist communities
in developing community
and urban development
solutions to address their
housing and housingrelated needs; and,
5.35. Perform such other
related functions as may
be mandated by law.

SEC. 6. Composition.
The Department shall be
composed of the Office of
the Secretary, his/her
immediate staff, and the
Offices of the
Undersecretaries and their
respective staff, and the
other Offices directly
supportive of the Office of
the Secretary.

SEC. 6. 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 the
assistant secretaries.

Sec.6. Composition. The


Department shall be
composed of the Office of
the Secretary, its
immediate staff, the
Offices of the
Undersecretaries and
Assistant Secretaries with
respect to their areas of
responsibilities and their
respective staff, and the
Offices directly supporting
the Office of the Secretary.

While the composition or


organizational structure of
the Department has been
clearly enumerated,
provisions with regard to
the appointing authority
are lacking. The provision
only states that the
Secretary shall be
appointed by the
President.
There are grey areas as to

who gets to nominate a


particular officer of the
Department. The
appointment by the
president must come from
a list of nominees either
pre-selected by the HUDCC
or HLURB so as to ensure
the prospective officers
qualifications.

SEC. 7. The Secretary.


The Secretary shall:
7.1. Advise the President
on matters related to
housing and urban
development;
7.2. Promulgate rules,
regulations and other
issuances necessary in
carrying out the
Department's mandate,
objectives, policies, plans,
programs and projects;
7.3. Establish policies and
standards for the efficient

SEC. 7. The Secretary.


The Secretary shall have
the following functions:
a. Provide executive
direction and supervision
over the entire operations
of the Department and its
attached agencies;
b. Establish policies and
standards for the effective,
efficient and economical
operation of the
Department;
c. Promulgate rules,
regulations, and other

Sec.7. The Secretary The Secretary shall:


a) Advise the president of
the promulgation of rules,
regulations and other
issuances relative to
matters under the
jurisdiction of the
Department;
b) Establish policies and
standards for the efficient
and effective operations of
the Department in
accordance with programs
of the government;
c) Promulgate rules,

and effective operations of


the Department in
accordance with the
programs of the
government;

issuances necessary in
carrying out the
Department's mandate,
objectives, policies, plans,
programs, and projects;

7.4. Report to the


President on the
promulgation of rules,
regulations and other
issuances relative to
matters under the
jurisdiction of the
Department;

d. Review and approve


requests for financial and
manpower resources of all
operating offices of the
Department:

7.5. Identify housing and


urban development, and
community development
issues, which require interagency or intergovernment coordination
and solutions;
7.6. Convene meetings of
heads of agencies that
undertake programs or
projects that impact upon
housing and urban
development with the view
to harmonizing policies,
plans, programs, and

e. Appoint all officers and


employees of the
department except those 3
whose appointments are
vested in the president or
in some other appointing
authority;
f. Exercise disciplinary
powers over officers and
employees of the
Department in accordance
with law, including their
investigation and the
designation of a
committee or officer to
conduct such
investigation;

regulations and other


issuances necessary in
carrying out the
Department's mandate,
objectives, policies, plans,
programs and projects;
d) Exercise control and
supervision over all
personnel and functions of
the Department;
e) Delegate authority for
the performance of any
administrative or
substantive function to the
subordinate officials of the
Department;
f) Call on other agencies
and Instrumentalities of
the government and
private entities for
cooperation and
assistance in the
performance of its
functions; and
g) Perform such other
function as may be
provided by law or

projects, and
synchronizing related
activities, as well as
avoiding duplication in
such programs or projects;
7.7. Call on any agency or
instrumentality of the
government to ensure the
effective and efficient
implementation of housing
and urban development
programs;
7.8. Ensure cooperation
among government
agencies toward the
effective and efficient
administration of housing,
urban development, and
related programs and
services;
7.9. Review and approve,
in consultation with a
panel of experts consisting
of urban development
planners, builders, and
housing experts, the
physical framework plans
of the provinces and the

g. Advise the President on


the promulgation of
executive and
administrative orders and
formulation of regulatory
and legislative proposals
on matters pertaining to
housing and urban renewal
programs; and
h. Perform such other
functions as may be
provided by law or
assigned by the President.
The Secretary shall be a
voting member of the
National Economic and
Development Authority
(NEDA) Board and the
governing Boards of the
Social Security System
(SSS), the Government
Service Insurance System
(GSIS), the Climate Change
Commission (CCC), the
National Disaster Risk
Reduction and
Management Council
(NDRRMC), and the
Philippine Reclamation

assigned by the President,


The Secretary shall also
serve as a voting member
of the National Economic
and Development
Authority (NEDA) Board,
the governing Boards of
the Climate Change
Commission (CCC), the
National Disaster Risk
Reduction Management
Council (NDRRMC), and
the National Land Use
Committee (NLUC). The
Secretary shall be a
member of NEDA
Committee on
Infrastructure (INFRACOM),
Investment Coordinating
Committee (ICC) and
Social Development
Committee (SDC). The
Secretary shall also be a
member of the body
authorized to formulate,
prescribe, or amend
guidelines under Republic
Act No. 6957 as amended,
otherwise known as the
Build-Operate-Transfer

comprehensive land use


plans of cities, as well as
the 4 municipalities within
Metro Manila;
7.10. Exercise control and
supervision over all
personnel of the
Department;
7.11. Appoint all officers
and employees of the
Department, except those
whose appointments are
vested with the President,
subject to the provisions of
Civil Service Law, rules
and regulations;
7.12. To impose
administrative fines and/or
penalties of not more than
One hundred thousand
pesos (P 100,000.00) for
violation of this Act,
Republic Act No. 7279 and
other laws implemented
by the Commission per
Section of this Act,
including pertinent rules
and regulations, orders,

Authority (PRA).
The Secretary shall be a
member of the NEDA's
Committee on
Infrastructure (INFRACOM),
Investment Coordination
Committee (ICC) and
Social Development
Committee (SDC). The
Secretary shall also be a
member of the body
authorized to formulate,
prescribe, or amend
guidelines pursuant to
Republic Act No. 6957, as
amended, otherwise
known as the "BuildOperate-Transfer (BOT)
Law".

(BOT) Law.

decisions, and/or rulings:


Provided, That the
Secretary may adjust such
fines not more than once
17 every three (3) years;
and
7.13. Perform such other
functions as may be
provided by law or
assigned by the President.
The Secretary shall also
serve as a voting member
of the National Economic
and
Development Authority
(NEDA) Board, the
governing/ advisory Boards
of the Climate Change
Commission (CCC), the
National Disaster Risk
Reduction Management
Council (NDRRMC), the
National Land Use
Committee (NLUC), and
the People's Survival Fund
under RA 10174. The
Secretary shall be a
member of NEDA's
Committee on

Infrastructure (INFRACOM),
Investment Coordinating
Committee (ICC) and
Social Development
Committee (SDC). The
Secretary shall also be a
member of the body
authorized to formulate,
prescribe, or amend
guidelines under Republic
Act No. 6957 as amended,
otherwise known as the
Build-Operate-Transfer
(BOT) Law.

SEC. 8. The
Undersecretaries. The
Secretary shall be assisted
by
8.1. One (1)
Undersecretary for
Policies, Plans and
Programs;
8.2. One (1)
Undersecretary for
Environmental, Land Use
and Urban Planning and
Development;

SEC. 8. The
Undersecretaries.
Taking into account the
requirements of the
Department and subject to
the approval of the
President, the Secretary
shall be assisted by:
a. One (1) Undersecretary
for the Bureau of Policy
Development and Program
Coordination, Monitoring,
and Evaluation;

Sec. 8. The
Undersecretaries- The
Secretary shall be assisted
by:
a) One (I) Undersecretary
for the Bureau of Policies,
Coordination, Monitoring,
Evaluation and Programs;
b) One (I) Undersecretary
for the Bureau of
Environmental, Land Use
and Urban Planning and
Development;

8.3. One (1)


Undersecretary for
Regulation of Housing and
Real Estate Development;
and,
8.4. One (1)
Undersecretary for
Homeowners,
Homeowners Associations
and 44 Community
Development.
They shall have the
powers and functions as
provided for in Section 10,
Chapter 2, Book IV of the
Administrative Code of
1987.

b. One (1) Undersecretary


for the Bureau of
Environmental, Land Use
and Urban Planning and
Development;
c. One (1) Undersecretary
for the Bureau of
Regulation of Housing and
Real Estate Development;
and
d. One (1) Undersecretary
for the Bureau of
Homeowners,
Homeowners' 33
Associations, and
Community Development.
They shall have the
powers and functions as
provided for in Section 10,
Chapter 2, Book IV of the
Administrative Code of
1987. The Secretary is
further authorized to
delineate and assign the
other functional areas of
responsibility of the
Undersecretaries.

c) One (I) Undersecretary


for the Bureau of
Regulation of Housing and
Real Estate Development;
and
d) One (I) Undersecretary
for the Bureau of
Homeowners,
Homeowners Associations
and Community
Development.
They shall have the
powers and functions as
provided for in Section 10,
Chapter 2, Book
IV of the Administrative
Code of 1987. The
Secretary is further
authorized to delineate
and assign the other
functional areas of
responsibility of the
Undersecretaries.

SEC. 9. Departmental
Offices and Regional
Offices. The
Department shall
establish, operate, and
maintain Departmental
Offices under them such
as, but not limited to:
(1) Policies, Plans and
Programs, Coordination,
Monitoring and Evaluation;
(2) Environmental, Land
Use and Urban Planning
and Development;
(3) Regulation of Real
Estate Development; and
(4) Homeowners,
Homeowners Associations
and Community
Development.
There shall be Regional
Offices in all of the
country's regions. Each
Regional Office shall be
headed by a Regional

SEC. 9. Qualifications
and Appointment. The
Secretary and
Undersecretaries shall be
citizens and residents of
the Philippines, of good
moral character, and of
proven competence and
integrity. They shall all be
appointed by the
President. The
Undersecretaries shall be
career officers.

Sec. 9. Qualifications
and Appointment. The
Secretary and
Undersecretaries shall be
citizens and residents of
the Philippines, of good
moral character, and of
proven competence and
integrity. They shall be
appointed by the
President. The
Undersecretaries shall be
career officers.

Director.

SEC. 10. Staffing


Pattern. The Secretary
shall cause the preparation
and implementation of a
staffing pattern for the
Department. The
development of the
staffing pattern shall be
based on an assessment of
the personnel
requirements of the entire
Department. The
remuneration structure of
the positions in the staffing
pattern shall conform to
the provisions of Republic
Act No. 6758, otherwise
known as the Salary
Standardization Law, as
amended. The Department
of Budget and
Management (DBM) shall,
upon its approval, fund in
full the staffing pattern of
the Department.

SEC. 10. Departmental


Bureaus and Regional
Offices. The
Department shall
establish, operate, and
maintain the following
bureaus and other support
offices:
a. Policy Development and
Program Coordination,
Monitoring, and Evaluation
Bureau;
b. Environmental, Land
Use and Urban Planning
and Development Bureau;
c. Housing and Real Estate
Development Bureau;
d. Homeowners,
Homeowners' Associations,
and Community
Development Bureau; and
e. Legal and Support
Services.

Sec. 10. Department


Bureaus and Regional
Offices - The Department
shall establish, operate,
and maintain Bureaus
under it such as but not
limited to:
a) Environmental, Land
Use and Urban Planning
and Development;
b) Community
Development
c) Plans, Policies, Programs
and Monitoring Group; and
d) Legal and Support and
Services Group.
There shall be Regional
Offices in all the countrys
administrative regions
which shall be headed by a
Regional Director.

There shall be a Regional


Office in all administrative
regions, headed by a
Regional Director. In
addition to the existing
functions of the regional
offices of the HUDCC and
the HLURB, the Regional
Office shall perform such
other functions as may be
delegated by the
Secretary.

SEC. 11. Advisory


Council. The Secretary
shall have the power to
establish advisory councils
consisting of the
Secretaries and other
heads from national
government agencies and
local government units,
representatives from the
private sector including
private developers
associations, urban poor
communities, academe,
and other marginalized
groups, to provide a forum

SEC. 11. Staffing


Pattern. The
development of the
Department's staffing
pattern shall be based on
an assessment of the
personnel requirements of
the entire Department by
the Secretary and as
approved by the
Department of Budget and
Management (DBM). The
remuneration structure' of
the positions and the
staffing pattern shall
strictly conform to the

Sec. 11. Staffing


Pattern - The Secretary
shall cause the preparation
and implementation of a
staffing pattern for the
Department. The
development of the
staffing pattern shall be
based on an assessment of
the personnel
requirements of the entire
Department. The
remuneration structure of
the positions in the staffing
pattern shall conform to
the provisions of Republic

for stakeholder
participation and dialogue
on key housing and urban
development policies,
issues and concerns. Such
councils shall be convened
and chaired by the
Secretary of the
Department of Housing
and Urban Development.

Salary Standardization
Law, as amended.

Act 24 No. 6758, otherwise


known as the Salary
Standardization Law, as
amended. The Department
of Budget and
Management (DBM) shall,
upon its approval, fund in
full the staffing pattern of
the Department.

SEC. 12. Reconstitution


of the HLURB as the
Adjudication
Commission for
Housing, Land Use and
Urban Development
(Commission). The
HLURB is hereby
reconstituted and shall
henceforth be known as
the Adjudication
Commission for Housing,
Land Use and Urban
Development, hereinafter
referred to "Commission",
which shall be attached
with the Department for
policy, plan and program
coordination only.

SEC. 12. Reorganization


of the HLURB as the
Human Settlements
Adjudicatory
Commission (HSAC).
The HLURB is hereby
reorganized and shall
henceforth be known as
the Human Settlements
Adjudicatory Commission
("HSAC"), which shall
operate as an independent
Commission within the
Department.

Sec. 12. Reconstitution


of the HLURB as tile
Human Settlements
Adjucatory Commission
(HSAC) - The HLURB is
hereby reconstituted and
shall henceforth be known
as the Human Settlements
Adjudicatory Commission,
hereinafter referred to as
the "Commission" which
shall be attached with the
Department for policy,
plan and program
coordination only.

The HSAC shall be a quasijudicial body with original


and exclusive jurisdiction
over all issues and

controversies arising from


the interpretation and
implementation of
Republic Act No. 7279,
otherwise known as the
"Urban Development and
Housing Act of 1992"
(UDHA), all amendments
thereto, and its
implementing rules and
regulations (IRR).

SEC. 13. Assumption


and Exercise of
Adjudication Function
of the Housing
and Land Use
Regulatory Board
(HLURB) to the
Commission. The
adjudication function of
the HLURB shall be
assumed and exercised by
the Commission.

SEC. 13. Transfer of


Adjudicatory Function
of the HLURB to the
HSAC. The adjudicatory
function of the HLURB is
hereby transferred to the
HSAC.

Sec. 13. Transfer


ofAdjucatory Function
of the HLURB to the
HSAC- The adjudication
function of the HLURB shall
be assumed and exercised
by the Commission.

SEC. 14. Composition of


the Commission and
qualification of
Commissioners. The
Commission shall be

SEC. 14. Composition


and Qualification of
Members. The HSAC
shall be
composed of the Secretary

Sec. 14. Composition


and Qualifications of
Members- The
Commission shall be
composed of nine (9) full-

composed of nine (9) fulltime commissioners:


Provided, That the term of
incumbent Commissioners
shall be respected:
Provided further, That the
subsequent appointees of
the President shall be
members of the Philippine
Bar of good standing and
has been engaged in the
practice of law for at 42
least ten (10) years with
experience and/or
exposure in housing and/or
urban development.
The Commissioners shall
hold office for a period of
six (6) years, unless earlier
46 removed for cause.
The Department Secretary
shall be the Ex-Officio
Chairman of the
Commission.

and nine (9) full time


Commissioners: Provided,
That the term of the
incumbent Commissioners
shall be respected:
Provided, further, That the
subsequent appointees of
the President shall be
members of the Philippine
Bar, of which three (3)
Commissioners shall have
experience in urban
development planning,
sustainable development,
climate change
adaptation, and disaster
risk reduction; three (3)
shall be nominees of the
urban poor and
homeowners' associations;
and three (3) shall come
from the private sector.
The Commissioners must
have been engaged in the
practice of law for a period
of at least five (5) years
prior to their appointment.
The Commissioners shall
hold office for six (6) years

time commissioners;
Provided, that the term of
incumbent
Commissioners shall be
respected; Provided
further, that the
subsequent appointees of
the President shall be
members of the Philippine
Bar of good standing and
has been engaged in the
practice of law for at least
ten (10) years with
experience and/or
exposure in housing and/or
urban development. The
Commissioners shall hold
office for a period of six (6)
years, unless earlier
removed for cause. The
Department Secretary
shall be the Ex-Officio
Chairman of the
Commission.

or until they become


incapacitated to discharge
the duties of their office,
whichever comes earlier.
No person who has been
convicted of a crime
involving moral turpitude
shall be appointed at any
time as a Member of the
HSAC.
The most senior
Commissioner shall be the
Presiding Commissioner of
the First Division and the
two (2) next senior
Members shall be the
Presiding Commissioners
of the Second and Third
Divisions, respectively:
Provided, That each
Division that shall be
composed of three (3)
members shall have one
(1) member representing
the urban poor
communities or
homeowners' associations.
For purposes of this Act,

precedence in seniority
shall be determined in
theorder in which the
appointments were issued
by the President.

SEC. 15. Collegiality,


Divisions, and Sessions.
The Commission shall
exercise 51 its
adjudicatory and all other
powers, functions, and
duties through its
Divisions.
The Commission, sitting en
banc, shall be presided
over by the Secretary and
shall decide only on the
promulgation of rules and
regulations governing the
hearing and disposition of
cases before any of its
Divisions and its Arbiters in
its Regional Offices, and on
the formulation of policies
affecting its administration
and operations.

SEC. 15. Exercise


ofAdjudicatory Function
and Other Powers.
The HSAC, sitting en banc
and presided over by the
Secretary, shall
promulgate the rules and
regulations governing the
hearing and disposition of
cases before any of its
Divisions and its arbiters in
its Regional Offices, and
shall formulate policies
effecting its administration
and operations.
The Divisions of the HSAC
shall have exclusive
appellate jurisdiction over
cases decided by its
Arbiters.
The HSAC sitting en banc
may, on temporary or

Sec. 15. Collegiality,


Divisions, and Sessions
-The Commission shall
exercise its adjudicatory
and all other powers,
functions, and duties
through its Divisions. The
Divisions of the
Commission shall have
exclusive appellate
jurisdiction over cases
decided by its Arbiters.
The Commission, sitting en
banc, shall be presided
over by the Secretary and
shall decide only on the
promulgation of rules and
regulations governing the
hearing and disposition of
cases before any of its
Divisions and its Arbiters in
its Regional Offices, and on
the formulation of policies
affecting its administration

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:
Provided, That the transfer
shall not expose litigants
to unnecessary additional
expense.

and operations.

The HSAC sitting en banc


may designate any
Commissioner who shall
exercise administrative
supervision over the HSAC
and its Regional branches
and all their personnel,
including the Arbiters.
The HSAC shall be assisted
by the Board Secretary,
which shall perform such
similar or equivalent
functions of the Board
Secretary of the HLURB.

SEC. 16. Precedence


and Supervision. The

SEC. 16. Decisions and


Resolutions.
The

Sec. 16. Decisions and


Resolutions - The

most senior Commissioner


shall be the presiding
Commissioner of the first
Division and the two (2)
next most senior
Commissioners shall be
the presiding
Commissioners of the
second and third Divisions,
respectively.
The Commission en banc
shall have administrative
supervision over the
Commission and its
Regional Offices and all
their personnel, including
the Arbiters.

concurrence of two (2)


Commissioners of a
Division shall be necessary
for the pronouncement of
a judgment or resolution.
Whenever the required
membership in a Division
is not complete and the
concurrence of two (2)
Commissioners to arrive at
a judgment or resolution
cannot be obtained, the
most senior Commissioner
shall designate into the
Division such number of
additional Commissioners
from the other Divisions as
may be necessary.

concurrence of two [2)


Commissioners of a
division shall be necessary
for the pronouncement of
a judgment or resolution.
Whenever the required
membership in a Division
is not complete and the
concurrence of two [2]
Commissioners to arrive at
a judgment or resolution
cannot be obtained, the
most senior Commissioner
shall designate into the
division 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 through
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

The conclusion of a
Division on any cases
submitted to it for decision
shall be reached in
consultation before the
case is assigned to a
Member for writing of the
decision. It shall be
mandatory for the Division
to meet the purposes of
the consultation ordained
herein. A certification to

SEC. 17. Decisions and


Resolutions. The
concurrence of two (2)
Commissioners 11 of a
Division shall be necessary
for the promulgation of a
judgment or resolution.
Whenever the required
membership in a Division
is not complete and the
concurrence of two (2)
Commissioners to arrive at
a judgment or resolution
cannot be obtained, the
Executive Commissioner
shall designate into the
Division such number of
additional Commissioners
from the other Divisions,
as may be necessary.

this effect, signed by the


Presiding Commissioner of
the Division, shall be
issued and a copy shall be
attached to the record of
the case and served upon
the parties.

this effect by the presiding


Commissioner of the
division shall be issued
and a copy thereof
attached to the record of
the case and served upon
the parties.

SEC. 17. Compensation.


A Commissioner shall
receive an annual salary of
at least equivalent to an
Undersecretary.

See. 17. Precedence


and Supervision - The
most senior Commissioner
shall be the Presiding
Commissioner of the first
Division and the two (2)
next senior Members shall
be the Presiding
Commissioners of the
second and third Divisions,
respectively.

The incumbent full time


Commissioners of the
present HLURB pursuant to
Executive Order No. 648,
Series of 1981
"Reorganizing the Human
Settlements Regulatory
Commission" shall remain
in office unless they opt to
avail of the retirement and
separation benefits as
provided for in Section 33
of this Act, or are sooner
removed for cause.

The Commission sitting en


banc may designate any
Commissioner who shall
have administrative
supervision over the
Commission and its
Regional branches and all
their personnel, including
the Arbiters.

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
Commissioner 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
the parties.

SEC. 18. Jurisdiction of


Arbiters. The Arbiters
shall exercise exclusive
jurisdiction to hear and
decide cases involving the
following:
a. Claims for refund,
complaints against

The Commission shall be


assisted by the Board
Secretariat which shall
perform such similar or
equivalent functions of the
Board Secretary of the
HLURB.

SEC. 18. Jurisdiction.


In addition to the existing
jurisdiction of the HLURB,
the Arbiters shall exercise
original and exclusive
jurisdiction over cases
involving the following
matters:

Sec. 18. Compensation A Commissioner shall


receive an annual salary at
least equivalent to an
Undersecretary.
The incumbent full time
Commissioners of the
present HLURB shall

unsound real estate


business practices and
other actions for specific
performance of contractual
and statutory obligations
filed by subdivision lot or
condominium unit buyer
against the project owner,
developer, dealer, broker
or salesman; and other
complaints for violation of
Presidential Decree No.
957 and other related
laws;

a. Violation of the
mandatory requirements in
the execution of eviction
or demolition involving
underprivileged and
homeless citizens under
Section 2B on Eviction and
Demolition under UDHA;

b. Intra-association
disputes or controversies
arising out of the relations
between and among
members of homeowners
associations or
condominium
corporations; between any
or all of them and the
homeowners association
or condominium
corporation of which they
are members, including
federations of
homeowners associations;

c. Intra-corporate disputes
involving condominium
corporations; and

b. Disputes involving buyer


financing agreements with
any financing institution
'for condominium Or
subdivision projects;

d. Disputes involving the


enforcement of
Comprehensive Land Use
Plans (CLUPs)
e. Violations Section 7, 8
and 18 of UDHA and its
rules and regulations;
f. Unsound and fraudulent
real estate business
practices;

remain in office unless


they opt to avail of the
retirement and separation
benefits as provided for in
Sec. 34 of its Act or are
sooner removed for cause.

c. Inter-association
disputes or controversies
arising out of the
corporate relations
between and among two
or more homeowners
associations or
condominium corporations
or federations;
d. Disputes between such
homeowners association
or condominium
corporation and the State,
insofar as it concerns their
individual franchise or
right to exist and those
which are intrinsically
connected with the 46
regulation of homeowners
associations and
condominium corporations
or dealing with the internal
affairs of such entity;
e. Suits filed in opposition
to an application for
certificate of registration
and license to sell,
development permit for
condominium projects,

g. Refund actions against


project owners,
developers, dealers,
brokers, or salespersons;
h. Specific performance of
contractual and statutory
obligations filed by buyers
of subdivision lots, or
house and lots, or of
condominium units against
the project owner,
developer, dealer, broker
or salesperson;
i. Nullity of mortgage filed
by the unit buyer against
the developer as
mortgagor and the
financial institution as
mortgagee;
j. Other related cases
arising from contractual or
statutory obligations of
owners, dealers, brokers,
or salespersons toward a
lot or house and lot or unit
buyers; and

clearance to mortgage, or
the revocation or
cancellation thereof, and
locational clearances,
certifications or permits,
when issued by the
HLURB/the Department;
f. Suits filed by the project
owner/ developer against a
buyer for the collection 54
of unpaid
amortization, cancellation
of contract and/or
ejectment.
g. Eviction of informal
settlers in open spaces or
common areas of
subdivisions and
condominiums filed by the
project owner or developer
or the duly registered
homeowners association
or condominium
corporation 58 of the
project;
h. Disputes involving buyer
financing agreements with
any financing 2 institution

k. Intra and intercorporate


disputes between and
among homeowners'
associations.

for the purchase of


condominium units or
subdivision lots;
i. Disputes involving
easements within or
among subdivisions
projects.
j. Violations of
administrative rules and
regulations implementing
Sections 5 7, 8 and of
Republic Act No. 7279.
k. Disputes between
landowners and
developers, and between
banks/ financing
institutions and developers
whenever the interest of
the buyers is involved; and
l. Disputes involving the
enforcement of
comprehensive land use
plans 10 (CLUPs) and/or
their accompanying zoning
ordinances.

SEC. 19. Jurisdiction of


the Commission and the
Secretary. The
Commission shall have the
exclusive appellate
jurisdiction over all cases
decided by the Arbiters.
The decision of the
Commission shall be final
and executory after fifteen
(15) 16 calendar days from
receipt thereof by the
parties.
The Secretary may assume
jurisdiction over any
complaint or case and
decide the same or certify
such case for decision to
the Commission if the
controversy involves
massive real estate fraud
or unsound business
practices of critical socioeconomic or
environmental
considerations that may
have serious potential
impact on the interests of
the sector or the general

SEC. 19. Powers and


Authorities of the
HSAC. In addition to the
22 adjudicatory powers
given to the HLURB, the
HSAC shall:

Sec. 19. Jurisdiction of


Arbiters - The Arbiters
shall exercise exclusive
jurisdiction to hear and
decide cases involving the
following:

a. Issue writs and orders


prohibiting demolitions,
seizures, or closures of
property including
temporary writs or orders
restraining demolitions,
seizures, and closures of
property;

a. Claims for refund,


complaints against
unsound real estate
business practices and
other actions for specific
performance of contractual
and statutory obligations
filed by subdivision lot or
condominium unit buyer
against the project owner,
developer, dealer, broker
or salesman; and other
complaints for violation of
Presidential Decree 8 No.
957 and other related
laws;

b. Issue writs and orders to


execute demolitions,
seizures, or closures of
property in accordance
with its decision or
judgment;
c. Impose administrative
fines or penalties, for
violation of UDHA and
other laws implemented by
the HSAC, including
pertinent rules and
regulations, orders,
decisions, or rulings;

b. Intra-association
disputes or controversies
arising out of the relations
between and among
members of homeowners
associations or
condominium

welfare.
d. Exercise such other
powers as are implied,
necessary, or incidental to
carry out the express
powers granted to the
HSAC or to achieve the
objectives and purposes of
this Act, and other laws
implemented by the HSAC.

corporations; between any


or all of them and the
homeowners or
condominium corporation
of which they are
members, including
federations of
homeowners associations;
c. Inter-association
disputes or controversies
among out of the
corporate relations
between and among two
or more homeowners
associations or
condominium corporations
or federations;
d. Disputes between such
homeowners association
or condominium
corporation 7 and the
State, insofar as it
concerns their individual
franchise or right to exist
and those which are
intrinsically connected
with the regulation of
homeowners associaons
and condominium

corporations or dealing
with the internal affairs of
such entity;
e. Suits filed in opposition
to an application for
certificate of registration
and license to sell,
development permit for
condominium projects,
clearance to mortgage, or
the revocation or
cancellation thereof, and
locational clearances,
certifications or permits,
when issued by the
HLURB/the Department;
f. Suits filed by the project
owner/developer against a
buyer for the collection of
unpaid amortization,
cancellation of contract
and/or ejectment.
g. Eviction of informal
settlers in open spaces or
common areas of
subdivisions and
condominiums filed by the
project owner or developer

or the duly registered


homeowners association
or condominium
corporation of the project;
h. Disputes involving buyer
financing agreements with
any financing institution 21
for the purchase of
condominium units or
subdivision lots; and
i. Disputes involving
easements within or
among subdivision
projects.
j. Violations of rules and
regulations implementing
Sections 7, 8 and 18 of
Republic Act No. 7279.
k. Disputes between
landowners and
developers; and between
banks/ financing
institutions and developers
whenever the interest of
the buyers is involved;
I. Disputes involving the

enforcement of
comprehensive land use
plans (CLUPs) and/ or their
accompanying zoning
ordinances.
m. Such other actions as
may be provided by law.

SEC. 20. Powers of the


Commission. The
Commission shall have the
power and 25 authority:
20.1. To promulgate rules
and regulations governing
the hearing and disposition
of cases before it and its
Arbiters, as well as those
necessary to carry out its
functions;
20.2. To administer oaths,
summon the parties to a
controversy, issue
subpoenas requiring the
attendance and testimony
of witnesses or the
production of such books,
papers, contracts, records,

SEC. 20. Institution


Criminal Prosecution.
The criminal prosecution of
violations of housing laws
and regulations shall be
instituted before the
appropriate criminal
courts.

Sec. 20. Jurisdiction of


the Commission and the
Secretary. The
Commission shall have the
exclusive appellate
jurisdiction over all cases
decided by the Arbiters.
The decision of the
Commission shall be final
and executory after fifteen
(IS) calendar days from
receipt thereof by the
parties. The Secretary may
assume jurisdiction over
any complaint or case and
decide the same or certify
such case for decision to
the Commission if the
controversy involves
massive real estate fraud
or unsound business

statement of accounts,
agreements, and others as
may be material to a just
determination of the case;
20.3. To hold any person in
contempt directly or
indirectly and impose
appropriate penalties
therefor in accordance
with law.A person guilty of
misbehavior in the
presence of or so near any
member of the
Commission or any Arbiter
as to obstruct or interrupt
the proceedings before the
same, including disrespect
toward said officials,
offensive personalities
toward others, or refusal to
be sworn, or to answer as
a witness or to subscribe
an affidavit or deposition
when lawfully required to
do so, may be summarily
adjudged in direct
contempt by said officials
and punished by fine not
exceeding Five thousand
pesos (P5,OOO.OO) or

practices of critical socioeconomic or


environmental
considerations that may
have serious potential
impact on the of the sector
or the general welfare.

imprisonment not
exceeding five (5) days, or
both, if it be the
Commission, or a member
thereof, or by a fine not
exceeding One thousand
pesos (PI ,OOO.OO) or
imprisonment not
exceeding one (1) day, or
both, if it be an Arbiter.
The person adjudged in
direct contempt by an
Arbiter may appeal to the
Commission and the
execution of the judgment
shall be suspended
pending the resolution of
the appeal upon the filing
by such person of a bond
on condition that he/she
will abide by and perform
the judgment of the
Commission should the
appeal be decided against
him/her. Judgment of the
Commission on direct
contempt is immediately
executory and
unappealable. Indirect
contempt shall be dealt

with by the Commission or


Arbiter in the manner
prescribed under Rule 71
ofthe Revised Rules of
Court (ROC); and
20.4. To enjoin or restrain,
after due notice and
hearing, any actual or
threatened commission of
any or all prohibited or
unlawful acts or to require
the performance of a
particular act in any
dispute within its
jurisdiction which, if not
restrained or performed
forthwith, may cause
grave or irreparable
damage to any party or
render ineffectual any
decision in favor of such
party. In no case shall a
temporary or permanent
injunction be issued except
after a finding of fact by
the Commission, to the
effect that:
a. Prohibited or unlawful
acts have been threatened

and will be committed and


will be continued unless
restrained, but no
injunction or temporary
restraining order shall be
issued on account of any
threat, prohibited or
unlawful act, except
against the person or
persons, association or
organization making the
threat or committing the
prohibited or unlawful act
or actually authorizing or
ratifying the same after
actual knowledge thereof;
b. Substantial and
irreparable injury to
complainant's property will
follow;
c. As to each item of relief
to be granted, greater
injury will be inflicted upon
complainant by the denial
of relief than will be
inflicted upon defendants
by the granting of relief;
d. Complainant has no

adequate remedy at law;


and,
e. Public officers charged
with the duty to protect
complainant's property are
unable or unwilling to
furnish adequate
protection.
Such hearing shall be held
after due and personal
notice thereof has been
served, in such manner as
the Commission shall
direct, to all known
persons against whom
relief is sought, and also to
the Chief Executive and
other public officials of the
province or city within
which the unlawful acts
have been threatened or
committed, charged with
the duty to protect
complainant's property:
Provided, however, That if
a complainant shall also
allege that, unless a
temporary restraining

order shall be issued


without notice, a
substantial and irreparable
injury to complainant's
property will be
unavoidable, such a
temporary restraining
order may be issued upon
testimony under oath,
sufficient, if sustained, to
justify the Commission in
issuing a temporary
injunction. Such a
temporary restraining
order shall be effective for
no longer than twenty (20)
days and shall become
void at the expiration of
said twenty (20) days.
No such temporary
restraining order or
temporary injunction shall
be issued except
on condition that
complainant shall first file
an undertaking with
adequate security in an
amount to be fixed by the
Commission sufficient to
recompense those

enjoined for any loss,


expense or damage
caused by the improvident
or erroneous issuance of
such order or injunction,
including all reasonable
costs, together with a
reasonable attorney's fee,
and expense of defense
against the order or
against the granting of any
injunctive relief sought in
the same proceeding and
subsequently denied by
the Commission.
The undertaking herein
mentioned shall be
understood to constitute
an agreement entered into
by the complainant and
the surety upon which an
order may be rendered in
the same suit or
proceeding against said
complainant and surety,
upon a hearing to assess
damages, of which
hearing, complainant and
surety shall have
reasonable notice, the said

complainant and surety


submitting themselves to
the jurisdiction of the
Commission for that
purpose. But nothing
herein contained shall
deprive any party having a
claim or cause of action
under or upon such
undertaking from electing
to pursue his/her ordinary
remedy by suit at law or in
equity:
Provided further, That the
reception of evidence for
the application of a writ of
injunction may be
delegated by the
Commission to any of its
Arbiters who shall conduct
such hearings in such
places as he/ she may
determine to be accessible
to the parties and their
witnesses and shall submit
thereafter his/her
recommendation to the
Commission.
20.5. To exercise such

other powers as are


implied, necessary, or
incidental to 58 carry out
the express powers
granted to the
Commission.
Authority is hereby vested
in the Commission to
directly utilize the income
generated from fees, fines,
charges, and other
collections in the
performance of its
functions, to defray
operating expenses.

SEC. 21. Compensation.


A Commissioner shall
receive a minimum
monthly compensation
corresponding to Salary
Grade 30 as prescribed
under Republic Act 8 No.
6758, as amended.
The incumbent full time
Commissioners of the
present HLURB shall
remain in office unless

SEC. 21. The Arbiters:


Qualifications and
Appointment. Arbiters
shall be member of the
Philippine Bar for at least
three (3) years.

Sec. 21. Powers and


Authorities of the
Commission - The
Commission shall have the
power and authority:
a) To issue writs, and
orders prohibiting
demolitions, seizures or
closures of property
including temporary writs
or orders demolitions,
seizures or 15 closures of

they opt to avail of the


retirement and separation
benefits as provided for in
Section 34 of this Act or
are earlier removed for
cause.

property;
b) To issue writs and
orders to execute
demolitions or seizures or
property in accordance
with its decision or
judgment.
c) To impose
administrative fines and/or
penalties for violation of
R.A. No. 19 7279, as
amended, and other laws
implemented by the
Commission, including
pertinent rules and
regulations, orders,
decisions and/or rulings:
Provided, That the
Commission may adjust
such fines not more than
once every three (3) years;
and
d) To exercise powers
granted to the Commission
or to achieve the
objectives and purposes of
this Act, and other laws
implemented by the

Commission.

SEC. 22. The Arbiters,


Qualifications and
Compensation. The
existing HLURB Arbiters
shall be deemed qualified.
Additional Arbiters shall
have the following
qualifications:
22.1 No person shall be
appointed as Arbiter
unless he or she is a
member of the Philippine
Bar of good standing and
has been engaged in the
practice of law for at least
seven (7) years with at
least three (3) years of
experience or exposure in
the field of real estate and
land use development
cases, and,
22.2 The Arbiters shall
receive a minimum
monthly compensation
corresponding to Salary
Grade 28 as prescribed

SEC. 22. The Sheriff.


The Secretary shall
appoint a Sheriff or such
number of Sheriffs in its
Central and Regional
branches. To be appointed
as Sheriff, one must be a
second grade Civil Service
eligible and must have
completed at least two (2)
years of college.
The Sheriff shall be
responsible for the service
and execution of all writs,
summons, orders, and
other processes of the
HSAC.

Sec. 22. Criminal


Prosecution - The
criminal prosecution for
violation of housing laws
26 and regulations shall be
instituted before criminal
Courts having appropriate
jurisdiction.

under Republic Act No.


6758, as amended. The
President shall appoint
Arbiters, as may be
necessary, upon the
recommendation of the
Commission.

SEC. 23. The Sheriff.


The Commission shall
appoint a Sheriff or such
number of Sheriffs in its
Central and Regional
Offices in accordance with
the provisions of the Civil
Service Law, rules and
regulations. The Sheriff
shall be responsible for the
service and execution of
all writs, summonses, and
orders and other processes
of the Commission.

SEC. 23. Appeals.


Decisions, awards, or
orders of the Arbiters shall
be final and executory
unless appealed to the
HSAC within fifteen (15)
calendar days from receipt
of the decision, award, or
order. The appeal may be
entertained only on any of
the following grounds:
a. There is prima facie
evidence of abuse of
discretion on the part of
the Arbiters in rendering
the questioned decision,
award, or order;
b. The decision, order, or
award was secured
through fraud or coercion,

Sec. 23. The Arbiters Qualifications and


Appointment. The existing
BLURB Arbiters shall be
deemed qualified.
Additional Arbiters should
be a member of the
Philippine Bar for at least
seven (7) years, with at
least three (3) years of
experience or exposure in
the field of real and land
use development cases.
The Arbiters shall receive a
minimum monthly
compensation
corresponding to Salary
Grade 28 as prescribed
under Republic Act No.
6758, as amended. The
President, upon the

including graft and


corruption;
c. Purely on questions of
law; and
d. Serious errors in the
findings of facts, which
errors would cause grave
or irreparable damage or
injury to the appellant. The
decision of the HSAC upon
any disputed matter may
be brought to the Court of
Appeals by way of a
petition for review. An
appeal from a decision of
the HSAC must be filed
within fifteen (15) calendar
days from notice of
judgment, award, or order,
pursuant to Rule 43 of the
Rules of Court. No appeal
bond shall be required. No
appeal shall act as a
supersedeas or a stay of
the order of the HSAC.

SEC. 24. Appeals.


Decisions, awards, or

SEC. 24. Prohibition


Against Restraining

recommendation of the
Secretary, shall appoint
Arbiters and as may be
necessary, for each
administrative region,
upon the recommendation
of the Commission en
banc.

Sec. 24. The Sheriff. The


Commission shall appoint

orders of the Arbiters shall


be final and executory
unless appealed to the
Commission within fifteen
(15) calendar days from
receipt of such decisions,
awards, or orders. The
appeal may be entertained
only on any of the
following grounds:
24.1 There is prima facie
evidence of abuse of
discretion on the part of
the Arbiter in rendering
the questioned decision,
award, or order;
24.2 The decision, order,
or award was secured
through fraud or coercion,
including graft and
corruption;
24.3 The appeal is made
purely on questions of law;
and,
24.4 Serious errors in the
findings of facts are raised,
which errors would cause

Order or Injunction.
No lower court of the
Philippines shall issue any
restraining order, or writ of
preliminary injunction, or
permanent injunction
against the HSAC or its
Arbiters 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 on just and
humane eviction or
demolition procedures.

a Sheriff or such member


of Sheriffs in its Central
and Regional branches, in
accordance with the
provisions of the Civil
Service Law, rules and
regulations. The Sheriff
shall be responsible for the
service and execution of
all writs, summonses, and
orders and other processes
of the Commission.

grave or irreparable
damage or injury to the
appellant.

SEC. 25. Criminal


Prosecution. The
criminal prosecution for
violation of housing laws
and regulations shall be
instituted before criminal
Courts having appropriate
jurisdiction.

SEC. 25. Pending Cases.


All cases pending in
regular courts arising from
or in connection with the
implementation of
pertinent laws on housing
and on just and humane
eviction and demolition
procedures, shall continue
to be heard, tried, and
decided to their finality by
such courts.

Sec. 25. Appeals Decisions, awards, or


orders of the Arbiters shall
be final and executor
unless appealed to the
BSAC within fifteen (15)
calendar days from receipt
of such decisions, awards,
or orders. The appeal may
be entertained only on any
of the following grounds:
a) If there is prima facie
evidence of abuse of
discretion on the part of
the Arbiters in rendering
the questioned decision,
award, or order;
b) If the decision, order or
award was secured
through fraud or coercion,
including graft and
corruption;
c) If the appeal is made

purely on questions of law;


and
d) If serious errors in the
finding of facts are raised,
which errors would cause
grave or irreparable
damage or injury to the
appellant. Decision of
HSAC can be appealed to
the Court of Appeals by
way of a Petition for
Review within fifteen (15)
calendar days from notice
of judgment, award, or
order sought to be
appealed, pursuant to Rule
43 of the Rules of Court.

SEC. 26. Pending Cases.


All cases pending in
regular Courts arising from
or in connection with the
implementation of
pertinent laws on housing
shall continue to be heard,
tried, and decided to their
finality by such Courts.

SEC. 26. Attached


Agencies and
Corporations. The
following agencies and
corporations are hereby
attached to the
Department for policy and
program coordination,
monitoring and evaluation:
a. National Housing

Sec. 26. Prohibition


Against Restraining
Order of Injunction - No
lower Court of the
Philippines shall have
jurisdiction to issue any
restraining order or writ of
preliminary injunction or
permanent injunctionagainst Commission or its
Arbiters in any application,

SEC. 27. Attached


Agencies and
Corporations. The
following agencies and
corporations are hereby
attached to the
Department for policy and
program coordination,
monitoring and evaluation:
27.1 National Housing
Authority (NHA);
27.2 Home Guaranty
Corporation (HGC);
27.3 National Home
Mortgage Finance
Corporation (NHMFC);

Authority (NHA);
b. Home Guaranty
Corporation (HGC);
c. National Home Mortgage
Finance Corporation
(NHMFC);
d. Home Development
Mutual Fund (HDMF); and
e. Social Housing Finance
Corporation (SHFC)

implementation,
enforcement, or
interpretation of the Act
and other pertinent laws
on housing and on just and
humane eviction or
demolition procedures.

SEC. 27. Nature of


Attachment. 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 Chairperson
of the respective boards of
the NHA, HGC, NHMFC,
HDMF, and SHFC. The
agencies shall continue to
function according to
existing laws and their
respective charters.

Sec. 27. Pending Cases


- All cases pending in
regular Courts arising from
in connection with the
implementation of
pertinent laws on housing
and on just and humane
eviction and demolition
procedures, shall continue
to be heard, tried and
decided to their finality by
such Courts.

27.4 Home Development


Mutual Fund (HDMF);
27.5 Social Housing
Finance Corporation
(SHFC); and,
27.6 Adjudication
Commission for Housing,
Land Use and Urban
Development
(Commission).
All these Agencies shall
continue to function
according to existing laws
and their respective
Charters. However, each of
the heads of the attached
agencies shall enter into a
performance contract
annually with the
Department Secretary.
Such contracts shall
embody the national
targets on housing and
urban development and
shall include the over-all
administration of the
agency and the

The reorganization,
.merger, streamlining of
functions, abolition, or
privatization of any
attached governmentowned and/or -controlled
corporation (GOCC) shall
be implemented with the
concurrence of the
Secretary pursuant to
Republic Act No. 6656,
entitled "An Act to Protect
the Security of Tenure of
Civil Service Officers and
Employees in the
Implementation of
Government
Reorganization". The
appointment of the Board
of Directors or Trustees of
the attached GOCCs shall
be in accordance with
Republic Act No. 10149,
otherwise known as the
"GOCC Governance Act of
2011".

streamlining of personnel
for effective and efficient
service.
Any recommendation by
the Governance
Commission on GOCCs to
reorganize, merge,
streamline, abolish, or
privatize any of the
government owned and
controlled corporation
(GOCC) attached to the
Department, per Republic
Act No. 10149, otherwise
known as the GOCC
Governance Act of 2011,
shall require the
concurrence of the
Secretary.

SEC. 28. Nature of


Attachment. The
Secretary shall be elected
as Chairperson of the
governing Boards of the
National Housing Authority
(NHA), Home Development
Mutual Fund (HDMF),
National Home Mortgage

SEC. 28. Transfer of


Functions. The following
agencies are hereby
abolished, and their
powers and functions,
applicable funds and
appropriations records,
equipment, property, and
personnel transferred to

Sec. 28. Attached


Agencies and
Corporations - The
following agencies and
corporations are
hereby attached to the
Department for policy and
program coordination
monitoring and evaluation:

Finance Corporation
(NHMFC), Social Housing
Finance Corporation
(SHFC), and Home
Guaranty Corporation
(HGC).

the Department:
a. HUDCC, and
b. HLURB.
SEC. 28. Transfer
Assets. The following
actions shall be
implemented within six (6)
months from the effectivity
of this Act:
c. The transfer to the
Department of the assets,
equipment, funds, records,
and pertinent transactions
of the HUDCC and the
HLURB; and
d. The submission of the
Department and the HSAC
of a request to the DBM for
the creation of additional
positions and the
augmentation of their
budget appropriations as
may be needed.

a) National housing
Authority (NHA)
b) Home Guaranty (HGC)
c) National Home
Mortgage Finance
Corporation (NHMFC)
d) Home Development
Mutual Fund (HDMF)
e) Social Housing Finance
Corporation (SHFC)
f) Human Settlement
Adjudicatory Commission
(HSAC)
All these agencies shall
continue to function
according to existing laws
and their respective
Charters. However, each of
the heads of the attached
agencies shall enter into a
performance contract
annually with the
secretary. Such contracts
shall embody the national
targets on housing and
urban development and
shall include the over-all
administration of the
agency and the streaming

of personnel for effective


and efficient service.
The reorganization,
merger, streamlining,
abolition or privatization of
any attached GOCCs shall
be in consultation with the
department and the GOCC
concerned. The
appointment of the Board
of Directors of Trustees of
the attached GOCCs shall
be in accordance with R.A.
No. 10149, otherwise
known as the GOCC
Governance Act of 2011.

SEC. 29. Social Housing


One-Stop Processing
Centers (SHOPCs). The
Department may establish
SHOPCs in the Regions,
which shall centralize the
processing and issuance of
all required housingrelated permits,
clearances, and licenses in
accordance with Executive
Order No. 45, series of

SEC. 29. Absorption of


Employees of the
Consolidated Agencies.
The present career
employees of the HUDCC
and the HLURB shall enjoy
security of tenure and shall
be absorbed by the
Department, in accordance
with its staffing pattern
and selection process as
prescribed under Republic

Sec. 29. Nature of


Attachment. The
Secretary shall be elected
as Chairperson of the
governing Boards of the
NHA, HDMF, NHMFC, SHFC,
and HGC.

2001 entitled "Prescribing


time periods for issuance
of housing related
certifications, clearances
and permits, and imposing
sanctions for failure to
observe the same":
Provided, That for the
foregoing purpose, the
respective ceilings for
socialized, low cost/
economic and middleincome housing shall be
jointly determined by the
Department and the NEDA:
Provided, further, That at
any time, but not more
than once every two 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

Act No. 6656, unless they


are separated from the
service by virtue of the
reorganization resulting
from this Act, or opt and
are qualified to retire from
service.

who shall be sufficiently


authorized to process and
issue the same.

SEC. 30. Identification


and Designation of
Lands for Housing and
Urban and Rural
Development. For the
purpose of designating
lands for housing and
urban and rural
development, the
Department of Housing
and Urban Development
(DHUD), the Department
of Environment and
Natural Resources (DENR),
the Department of
Agrarian Reform (DAR)
Department of Agriculture
(DA), and the Land
Registration Authority
(LRA) shall, within one
hundred eighty (180) days
from the effectivity of this
Act, jointly identify
agricultural lands which,
under Republic Act No.
6657, as amended,

SEC. 30. Separation


from the Service.
Unless absolutely required,
no employee shall be
separated from the service
as a result of any
reorganization or
consolidation under the
provisions of this Act.
In addition, those who
desire and are qualified to
retire shall be entitled to
all benefits provided under
the existing retirement
laws.

Sec. 30. Social Housing


One- Stop Processing
Centers (SHOPCs) - The
Department shall establish
SHOPCs in the regions,
which shall centralize the
processing and issuance of
all required housingrelated permits,
clearances, and licenses in
accordance with Executive
Order No. 45, series of
2001 entitled "Prescribing
time periods for issuance
of housing related
certifications, clearances
and permits, and imposing
sanctions for failure to
observe the same"
Provided, That for the
foregoing purpose, the
respective ceilings for
socialized, low cost/
economic and middleincome housing shall be
jointly determined by the

otherwise known as the


Comprehensive Agrarian
Reform Law, and other
existing laws, rules and
regulations are already
exempted from conversion
requirements:
Provided, That the list shall
exclude lands that are
declared as non-negotiable
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 and
rural 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 Agricultural and

Department and NEDA;


Provided further, That at
any time, but not more
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.

Fisheries Modernization Act


(AFMA) of 1997 and other
existing laws:
Provided, furthermore,
That in the case of lands
exempted from
conversion, though these
have been approved by
the DAR, if these are
contested by affected
individual or community
beneficiaries, it shall not
be allowed to proceed with
any horizontal or vertical
development without need
for any prior clearance or
approval from the DAR or
the DA consistent with the
terms of the approved
order or conversion:
Provided, finally, That all
idle government lands in
highly urbanized cities are
hereby prioritized for
housing and urban
development purposes.

SEC. 31. Absorption of


Employees of the

SEC. 31. Transfer of


Rights and Obligations.

Sec. 31. Identification


and Designation of

Consolidated Agencies.
The existing employees
of HUDCC and HLURB shall
enjoy security of tenure
and shall be absorbed by
the Department or the
Commission, in
accordance with their
staffing patterns and the
selection process as
prescribed under Republic
Act No. 6656 on the Rules
on government
reorganization, unless the
employee wants to avail of
Section 33, hereof.

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 of
the government whose
functions and powers have
been transferred to it, and
all their pertinent funds,
records, property, assets,
equipment and such
personnel, including
unexpended portions of
their appropriations.

Lands for Housing and


Urban and Rural
Development- For the
purpose of designating
lands for housing and
urban and rural
development, the
Department, the DENR,
the DAR and the DA shall,
within one hundred eighty
(180) days from effectivity
of this Act, jointly identify
agricultural lands which
under R.A No. 6657,
otherwise known as the
Comprehensive Agrarian
Reform Law and other
existing rules and
regulations are already
exempted from conversion
requirements; Provided,
that the list shall exclude
lands that are declared as
non-negotiable or
protected from conversion
under existing laws and
issuances and those lands
covered under R.A. No.
6657; Provided further,
That the designation of
lands for Housing and

Urban and Rural


Development purposes
shall neither prejudice the
rights of qualified
beneficiaries under R.A No.
6657, nor undermine the
protected agricultural
areas intended to ensure
the attainment of food
security under R.A No.
8435, otherwise known as
the Agriculture and
Fisheries Modernization Act
of 1997 (AFMA) and other
existing laws; Provided
further, That in the case of
lands exempted from
conversion though these
have been approved by
the DAR, if these are
contested by the affected
individual or community
beneficiaries, it shall not
be allowed to proceed with
by horizontal or vertical
development without need
for any prior clearance or
approval from the DAR or
the DA consistent with the
terms of approved order or
conversion: Provided,

finally, that all idle


government lands in highly
urbanized cities are hereby
prioritized for housing and
urban development
purposes.

SEC. 32. Transfer of


Assets and Obligations.
The following dispositive
actions 37 shall be
implemented within six (6)
months from the effectivity
of this Act:
32.1 The assets,
equipment, funds, choses
in action, records, and
pertinent
40 transactions of HUDCC
and HLURB shall be
transferred to the
Department and the 41
Commission; and,
32.2 The Department and
the Commission shall
propose the creation of
additional 44 positions, as
may be necessary, subject

SEC. 32. Transition


Period. All transfer of
functions, assets, funds,
personnel, equipment,
properties, and
transactions in the
affected national
government agencies, and
the formulation and
implementation of the
internal organic structures,
staffing patterns,
operating systems, and
revised budgets of the
Department and the HSAC,
shall be completed within
six (6) months from the
effectivity of this Act,
during which existing
personnel shall continue to
assume their posts in
holdover capacities until
new appointments are

Sec 32. Absorption of


Employee of the
Consolidated Agencies The existing civil servants
HUDCC and HLURB shall
enjoy security of tenure
and shall be absorbed by
the Department in
accordance with their
staffing patterns and the
selection process as
prescribed under R.A. No.
6656 on the Rules on
Government
reorganization, unless the
civil servant wants to avail
of Section 35 hereof.

to the approval of DBM.

issued.

SEC. 33. Transition


Period. All transfer of
functions, assets, funds,
personnel, equipment,
properties, transactions,
and personnel in the
affected national
government agencies, and
the formulation and
implementation of the
internal organic structures,
staffing patterns,
operating systems, and
revised budgets of the
Department and the
Commission, shall be
completed within six (6)
months from the effectivity
of this Act, during which
existing personnel shall
continue to assume their
posts in holdover
capacities until new
appointments are issued.

SEC. 33. Implementing


Rules and Regulations.
The Secretary shall
prepare and issue the
implementing rules and
regulations (IRR) of the
Department within sixty
(60) days upon the
effectivity of this Act.

SEC. 34. Abolition of


the Housing and Urban
Development

SEC. 34. Funding. The


amount necessary for the
initial implementation of

Sec 33. Transfer of


Assets and Obligations The following dispositive
actions shall be 2
implemented within six (6)
months from the effectivity
of this Act:
a) The assets, equipment
funds, records, and
pertinent transactions of 4
HUDCC and HLURB shall
be to the Department
and the Commission, and;
b) The Department and
the Commission shall
cause the creation of
additional positions and
augment their budget
appropriations, as may be
necessary.

Sec 34. Transition


Period- All transfer of
functions, assets, funds,

Coordinating Council
(HUDCC) and the
Transfer of Rights and
Assets. The Housing
and Urban Development
Coordinating Council is
hereby abolished. The
Department shall, by
virtue of this 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.

the provisions of this Act


shall be charged against
the current year's
appropriations of the
HUDCC and the HLURB.
Thereafter, such sums as
may be necessary for the
continued implementation
of this Act shall be
included in the annual
General 6 Appropriations
Act.

personnel, equipment,
properties, transactions,
and personnel in the
affected national
government agencies and
the formulation and
implementation of the
internal organic structures,
staffing patterns,
operations systems, and
revised budgets of the
Department and the
Department and the
Commission, shall be
completed within six (6)
months from the effectivity
of this Act, during which
existing personnel shall
continue to assume their
in holdover capacities until
new appointments are
issued.

SEC. 35. Formulation of


Implementing Rules
and Regulations. The
HUDCC, HLURB, DBM and
Civil Service Commission
(CSC) shall prepare and
issue the implementing

SEC. 35. Creation of


Social Housing OneStop Processing
Centers (SHOPCs).
The Department shall
establish SHOPCs in all
administrative regions of

Sec 35. Separation from


the Service- Employees
separated and/ or phased
out from the service as a
result of the consolidation
and/or reorganization
under the provisions of this

rules and regulations (IRR)


within sixty (60) days upon
the effectivity of this Act.

the Il country. The SHOPCs


shall be responsible for the
centralized processing and
12 issuance of all required
housing-related permits,
clearances, and licenses in
accordance with Executive
Order No. 45, Series of
2001, entitled "Prescribing
Time Periods for Issuance
of Housing Related
Certifications, Clearances
and Permits, and Imposing
Sanctions for Failure to
Observe the Same":
Provided, That for the
foregoing purpose, the
respective ceilings for
socialized, low
cost/economic and middleincome housing shall be
jointly determined by the
Department and the NEDA:
Provided, further, That at
any time, but not more
than once every two (2)
years, such ceilings may
be reviewed or revised to
conform to prevailing

Act shall within one (1)


month from their
separation and/or phase
out from the service,
receive separation benefits
in accordance with existing
laws. 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.

economic conditions. All


agencies involved in the
issuance of said permits,
clearances, and licenses
shall be represented in the
SHOPC and shall assign
SHOPC personnel from
regional centers who shall
be sufficiently authorized
to process and issue the
same.

SEC. 36. Implementing


Authority. The HUDCC
Chairman is hereby
authorized to undertake
the implementation of the
provisions of this Act and
implement the necessary
organizational changes
within six (6) months or
until a Department
Secretary has been
appointed and has
assumed office.

SEC. 36. Separability


Clause. If, for any
reason or reasons any
portion or provision of this
Act shall be held
unconstitutional or invalid,
the remaining provisions
not affected thereby shall
continue to be in full force
and effect.

Sec. 36. Transfer of


Functions- The following
functions are hereby
transferred as stipulated
hereunder:
a) The regulatory function
of the HLURB, including
the formulation,
promulgation, and
enforcement of rules,
standards and guidelines
are hereby to the
Department;
b) The HLURB's monitoring
function, including the
imposition of penalties for

non-compliance to ensure
that LGUs will follow the
planning guidelines and
implement their
CLUPs/ZOs shall likewise
be transferred to the
Department; and
c) The registration of
incorporation of
homeowners associations
and condominium
corporations of the HLURB
are hereby transferred to
the Department.

SEC. 37. Funding. The


amount needed for the
initial implementation of
this Act shall be charged
against the current year's
appropriations of HUDCC
and HLURB. Thereafter,
such sums as may be
necessary for the
continued implementation
of this Act, shall be
included in the General
Appropriations Act (GAA).

SEC. 37. Repealing


Clause. All laws,
executive orders,
proclamations, rules,
regulations and other
issuances or parts thereof
which are inconsistent with
the provisions of this Act
are hereby repealed,
amended or modified
accordingly.

Sec 37. Abolition of the


Housing and Urban
Development
Coordinating Council
(HUDCC)
and the Transfer of
Rights and Assets. The
Housing and Urban
Development Coordinating
Council is hereby
abolished. The Department
shall, by virtue of this 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.

SEC. 38. Mandatory


Review of the
Implementation of this
Act. The Congress shall
undertake a mandatory
review of the
implementation of this Act
at the end of the third year
from the date of its
effectivity.

SEC. 39. Repealing


Clause. All laws,
executive orders,
proclamations, rules,
regulations and other
issuances or parts thereof
which are inconsistent with
the provisions of this act
are hereby repealed,
amended or modified
accordingly.

SEC. 41. Effectivity.


This Act shall take effect
after its publication in the
in two (2) newspapers
general circulation.

Sec 38. Formulation


ofImplementing Rules
and Regulations - The
Secretary shall prepare
and issue the
implementing rules and
regulations (IRR) of the
Department within sixty
(60) days upon the
effectivity of this Act.

Sec 39. Implementing


Authority - The Secretary
is hereby authorized to
undertake the
implementation of the
provisions of this ACT and
implement the necessary
organizational changes
within the specified six (6)
month transition period.

SEC. 40. Separability


Clause. If, for any
reason or reasons, any
portion or provision of this
Act shall be held
unconstitutional or invalid,
the remaining provisions
not affected thereby shall
continue to be in full force
and effect.

Sec 40. Funding - The


amount necessary for the
initial implementation of
the provisions of this Act
shall be charged against
the current year's
appropriations of the
HUDCC and HLURB.
Thereafter, such sums as
may be necessary for the
continued implementation
of this Act shall be
included in the annual
General Appropriations Act
(GAA).

SEC. 41. Effectivity.


This Act shall take effect
fifteen (15) days after its
complete publication in at
least two (2) national
newspapers of general
circulation.

Sec 41. Mandatory


Review of the
Implementation of this
Act - The Department shall
conduct and submit a
report to Congress a
review of the
implementation of this Act
at the end of the second
year from the date of its
effectivity.

Sec 42. Repealing


Clause - All laws,

executive orders,
proclamations, rules,
regulations, and other
issuances or parts thereof
which are inconsistent with
the provisions of this act
are hereby repealed,
amended or modified
accordingly.

Sec 43. Separability


Clause - If, for any
reasons, any portion or
provisions of this Act shall
be held unconstitutional or
invalid, the remaining
provisions not affected
thereby shall continue to
be in full force and effect.

Sec 44. Effectivity- This


Act shall take effect fifteen
(15) days after its
complete publication in at
least two (2) national
newspapers of general
circulation.

There is no provision
regarding the pending
cases as to whether or not
they would be governed by
the Act upon its effectivity.
This would create a
situation where there
would be confusion as to
what administrative
agency will assume

jurisdiction over such


pending cases.

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