Laws Passed Before Eo648

REPUBLIC ACT NO.
4726 June 18, 1966 AN ACT TO DEFINE CONDOMINIUM, ESTABLISH REQUIREMENTS FOR ITS CREATION, AND GOVERN ITS INCIDENTS. Section 1. The short title of this Act shall be "The Condominium Act". Sec. 2. A condominium is an interest in real property consisting of separate interest in a unit in a residential, industrial or commercial building and an undivided interest in common, directly or indirectly, in the land on which it is located and in other common areas of the building. A condominium may include, in addition, a separate interest in other portions of such real property. Title to the common areas, including the land, or the appurtenant interests in such areas, may be held by a corporation specially formed for the purpose (hereinafter known as the "condominium corporation") in which the holders of separate interest shall automatically be members or shareholders, to the exclusion of others, in proportion to the appurtenant interest of their respective units in the common areas. The real right in condominium may be ownership or any other interest in real property recognized by law, on property in the Civil Code and other pertinent laws. Section 3. As used in this Act, unless the context otherwise requires: (a) "Condominium" means a condominium as defined in the next preceding section. (b) "Unit" means a part of the condominium project intended for any type of independent use or ownership, including one or more rooms or spaces located in one or more floors (or part or parts of floors) in a building or buildings and such accessories as may be appended thereto. (c) "Project" means the entire parcel of real property divided or to be divided in condominiums, including all structures thereon, (d) "Common areas" means the entire project excepting all units separately granted or held or reserved. (e) "To divide" real property means to divide the ownership thereof or other interest therein by conveying one or more condominiums therein but less than the whole thereof. Sec. 4. The provisions of this Act shall apply to property divided or to be divided into condominiums only if there shall be recorded in the Register of Deeds of the province or city in which the property lies and duly annotated in the corresponding certificate of title of the land, if the latter had been patented or registered under either the Land Registration or Cadastral Acts,
RA 4726 -Defines condominium as an interest in real property consisting of separate interest in a unit in a residential, industrial or commercial building and an undivided interest in common in the land on which it is located and in other common areas of the building. The Law applies to property divided or to be divided into condominiums if there shall be recorded in the Register of Deeds an enabling or master deed which contains the following: (a) Description of the land on which the buildings and improvements are to be located; (b) Description of the building; (c) Description of the common areas and facilities; (d) A statement of the exact nature of the interest acquired or to be acquired by the purchaser (e) Statement of the purposes for which the building or buildings and each of the units are intended or restricted as to use; (f) A certificate of the registered owner of the property, if he is other than those executing the master deed, as well as of all registered holders of any lien or encumbrance on the property, that they consent to the registration of the deed Requisites for Amendment/Revocation of enabling or master deed: 1. Registration of an instrument executed by the registered owners of the property 2. Consent of all registered holders of any lien or encumbrance on the land or building Any transfer or conveyance of a unit shall include the transfer or conveyance of the undivided interests in the common areas or shareholdings in the condominium corporation. No condominium unit can be conveyed to aliens or foreign corporations
Laws passed before EO 648. Page | 1
an enabling or master deed which shall contain, among others, the following: (a) Description of the land on which the building or buildings and improvements are or are to be located; (b) Description of the building or buildings, stating the number of stories and basements, the number of units and their accessories, if any; (c) Description of the common areas and facilities; (d) A statement of the exact nature of the interest acquired or to be acquired by the purchaser in the separate units and in the common areas of the condominium project. Where title to or the appurtenant interests in the common areas is or is to be held by a condominium corporation, a statement to this effect shall be included; (e) Statement of the purposes for which the building or buildings and each of the units are intended or restricted as to use; (f) A certificate of the registered owner of the property, if he is other than those executing the master deed, as well as of all registered holders of any lien or encumbrance on the property, that they consent to the registration of the deed; (g) The following plans shall be appended to the deed as integral parts thereof: (1) A survey plan of the land included in the project, unless a survey plan of the same property had previously been filed in said office; (2) A diagrammatic floor plan of the building or buildings in the project, in sufficient detail to identify each unit, its relative location and approximate dimensions; (h) Any reasonable restriction not contrary to law, morals or public policy regarding the right of any condominium owner to alienate or dispose of his condominium. The enabling or master deed may be amended or revoked upon registration of an instrument executed by the registered owner or owners of the property and consented to by all registered holders of any lien or encumbrance on the land or building or portion thereof. The term "registered owner" shall include the registered owners of condominiums in the project. Until registration of a revocation, the provisions of this Act shall continue to apply to such property. Sec. 5. Any transfer or conveyance of a unit or an apartment, office or store or other space therein, shall include the transfer or conveyance of the undivided interests in the common areas or, in a proper case, the membership or shareholdings in the condominium
except in cases of hereditary succession. Incidents of a condominium grants:
1. The boundary of the unit are the interior surfaces of the walls,
floors, ceilings, windows and doors. 2. There shall be an exclusive easement for the use of the air space encompassed by the boundaries of the unit. 3. The common areas are held in common by the holders of units in equal shares unless otherwise provided 4. There shall be a non-exclusive easement for ingress and egress in the common areas 5. The owner shall have the right to paint, tile, wax, paper and decorate the inner surfaces of the walls, ceilings, floors and doors of his unit. 6. The owner shall have the right to mortgage, pledge or encumber his unit. 7. The owner has the right to sell or dispose his unit unless the master deed requires that the property be first offered to the condominium owners within a reasonable period of time before the same is offered to outside parties. For purposes of real property taxation and other tax purposes, each condominium shall be separately assessed. Instances when Partition by sale may be made:
1. The project has not been rebuilt or repaired three years after 2. The damage or destruction has rendered one half or more of the
units untentatabe and the condonminium owners holding in aggregate more than fifty percent interest in common areas are opposed to repair of the project 3. The project has been in existence in excess of fifty years and the condominium owners holding in aggregate more than 50% interest in are opposed to repair of the project damage or destruction
corporation: Provided, however, That where the common areas in the condominium project are owned by the owners of separate units as co-owners thereof, no condominium unit therein shall be conveyed or transferred to persons other than Filipino citizens, or corporations at least sixty percent of the capital stock of which belong to Filipino citizens, except in cases of hereditary succession. Where the common areas in a condominium project are held by a corporation, no transfer or conveyance of a unit shall be valid if the concomitant transfer of the appurtenant membership or stockholding in the corporation will cause the alien interest in such corporation to exceed the limits imposed by existing laws. Sec. 6. Unless otherwise expressly provided in the enabling or master deed or the declaration of restrictions, the incidents of a condominium grant are as follows: (a) The boundary of the unit granted are the interior surfaces of the perimeter walls, floors, ceilings, windows and doors thereof. The following are not part of the unit bearing walls, columns, floors, roofs, foundations and other common structural elements of the building; lobbies, stairways, hallways, and other areas of common use, elevator equipment and shafts, central heating, central refrigeration and central air-conditioning equipment, reservoirs, tanks, pumps and other central services and facilities, pipes, ducts, flues, chutes, conduits, wires and other utility installations, wherever located, except the outlets thereof when located within the unit. (b) There shall pass with the unit, as an appurtenance thereof, an exclusive easement for the use of the air space encompassed by the boundaries of the unit as it exists at any particular time and as the unit may lawfully be altered or reconstructed from time to time. Such easement shall be automatically terminated in any air space upon destruction of the unit as to render it untenantable. (c) Unless otherwise, provided, the common areas are held in common by the holders of units, in equal shares, one for each unit. (d) A non-exclusive easement for ingress, egress and support through the common areas is appurtenant to each unit and the common areas are subject to such easements. (e) Each condominium owner shall have the exclusive right to paint, repaint, tile, wax, paper or otherwise refinish and decorate the inner surfaces of the walls, ceilings, floors, windows and doors bounding his own unit. (f) Each condominium owner shall have the exclusive right to mortgage,
4. Expropriation of the project or material part thereof 5. The conditions for partition by sale set forth in the declaration of
restrictions have been met The owner of the project prior to the conveyance shall register a declaration of restrictions which shall provide for: 1. Management body (condominium corporation, association of the condominium owners, Board of Governors, Management agent) 2. Procedure for amending such restrictions 3. Independent audit of the accounts of the management body 4. Reasonable fees to meet authorized expenditures Condominium Corporation Purposes: Limited to the holding of the common areas, to the management of project and to such other purposes as may be incidental to the accomplishment of said purposes Term: Co-terminous with the duration of the condominium project Effect of Dissolution: The common areas owned or held by the corporation shall be transferred pro-indiviso to the members or stockholders subject to the rights of the corporation creditor Limitation: It cannot sell, exchange, lease or dispose of the common areas unless authorized by the affirmative vote of all the stockholders or members Dissolution: It may only be dissolved through revocation of the enabling or master deed; affirmative vote of all the stockholders or members, or the happening of the instances when partition by sale may be made. Appraisal right: The by-laws of a condominium corporation shall provide that a stockholder or member shall not be entitled to demand appraisal right. He can only sell his interest to the corporation or to any purchaser of the
pledge or encumber his condominium and to have the same appraised independently of the other condominiums but any obligation incurred by such condominium owner is personal to him. (g) Each condominium owner has also the absolute right to sell or dispose of his condominium unless the master deed contains a requirement that the property be first offered to the condominium owners within a reasonable period of time before the same is offered to outside parties; Sec. 7. Except as provided in the following section, the common areas shall remain undivided, and there shall be no judicial partition thereof. Sec. 8. Where several persons own condominiums in a condominium project, an action may be brought by one or more such persons for partition thereof by sale of the entire project, as if the owners of all of the condominiums in such project were co-owners of the entire project in the same proportion as their interests in the common areas: Provided, however, That a partition shall be made only upon a showing: (a) That three years after damage or destruction to the project which renders material part thereof unit for its use prior thereto, the project has not been rebuilt or repaired substantially to its state prior to its damage or destruction, or (b) That damage or destruction to the project has rendered one-half or more of the units therein untenantable and that condominium owners holding in aggregate more than thirty percent interest in the common areas are opposed to repair or restoration of the project; or (c) That the project has been in existence in excess of fifty years, that it is obsolete and uneconomic, and that condominium owners holding in aggregate more than fifty percent interest in the common areas are opposed to repair or restoration or remodeling or modernizing of the project; or (d) That the project or a material part thereof has been condemned or expropriated and that the project is no longer viable, or that the condominium owners holding in aggregate more than seventy percent interest in the common areas are opposed to continuation of the condominium regime after expropriation or condemnation of a material portion thereof; or (e) That the conditions for such partition by sale set forth in the declaration of restrictions, duly registered in accordance with the terms of this Act, have been met. Section 9. The owner of a project shall, prior to the conveyance of any condominium therein, register a declaration of restrictions relating to such
corporations choice.
project, which restrictions shall constitute a lien upon each condominium in the project, and shall insure to and bind all condominium owners in the project. Such liens, unless otherwise provided, may be enforced by any condominium owner in the project or by the management body of such project. The Register of Deeds shall enter and annotate the declaration of restrictions upon the certificate of title covering the land included within the project, if the land is patented or registered under the Land Registration or Cadastral Acts. The declaration of restrictions shall provide for the management of the project by anyone of the following management bodies: a condominium corporation, an association of the condominium owners, a board of governors elected by condominium owners, or a management agent elected by the owners or by the board named in the declaration. It shall also provide for voting majorities quorums, notices, meeting date, and other rules governing such body or bodies. Such declaration of restrictions, among other things, may also provide: (a) As to any such management body; (1) For the powers thereof, including power to enforce the provisions of the declarations of restrictions; (2) For maintenance of insurance policies, insuring condominium owners against loss by fire, casualty, liability, workmen's compensation and other insurable risks, and for bonding of the members of any management body; (3) Provisions for maintenance, utility, gardening and other services benefiting the common areas, for the employment of personnel necessary for the operation of the building, and legal, accounting and other professional and technical services; (4) For purchase of materials, supplies and the like needed by the common areas; (5) For payment of taxes and special assessments which would be a lien upon the entire project or common areas, and for discharge of any lien or encumbrance levied against the entire project or the common areas; (6) For reconstruction of any portion or portions of any damage to or destruction of the project; (7) The manner for delegation of its powers; (8) For entry by its officers and agents into any unit when necessary in connection with the maintenance or construction for which such body is responsible;
(9) For a power of attorney to the management body to sell the entire project for the benefit of all of the owners thereof when partition of the project may be authorized under Sec. 8 of this Act, which said power shall be binding upon all of the condominium owners regardless of whether they assume the obligations of the restrictions or not. (b) The manner and procedure for amending such restrictions: Provided, That the vote of not less than a majority in interest of the owners is obtained. (c) For independent audit of the accounts of the management body; (d) For reasonable assessments to meet authorized expenditures, each condominium unit to be assessed separately for its share of such expenses in proportion (unless otherwise provided) to its owners fractional interest in any common areas; (e) For the subordination of the liens securing such assessments to other liens either generally or specifically described; (f) For conditions, other than those provided for in Sections eight and thirteen of this Act, upon which partition of the project and dissolution of the condominium corporation may be made. Such right to partition or dissolution may be conditioned upon failure of the condominium owners to rebuild within a certain period or upon specified inadequacy of insurance proceeds, or upon specified percentage of damage to the building, or upon a decision of an arbitrator, or upon any other reasonable condition. Sec. 10. Whenever the common areas in a condominium project are held by a condominium corporation, such corporation shall constitute the management body of the project. The corporate purposes of such a corporation shall be limited to the holding of the common areas, either in ownership or any other interest in real property recognized by law, to the management of the project, and to such other purposes as may be necessary, incidental or convenient to the accomplishment of said purposes. The articles of incorporation or by-laws of the corporation shall not contain any provision contrary to or inconsistent with the provisions of this Act, the enabling or master deed, or the declaration of restrictions of the project. Membership in a condominium corporation, regardless of whether it is a stock or non-stock corporation, shall not be transferable separately from the condominium unit of which it is an appurtenance. When a member or stockholder ceases to own a unit in the project in which the condominium corporation owns or holds the common areas, he shall automatically cease to be a member or stockholder of the condominium corporation.
Sec. 11. The term of a condominium corporation shall be co-terminus with the duration of the condominium project, the provisions of the Corporation Law to the contrary notwithstanding. Sec. 12. In case of involuntary dissolution of a condominium corporation for any of the causes provided by law, the common areas owned or held by the corporation shall, by way of liquidation, be transferred pro-indiviso and in proportion to their interest in the corporation to the members or stockholders thereof, subject to the superior rights of the corporation creditors. Such transfer or conveyance shall be deemed to be a full liquidation of the interest of such members or stockholders in the corporation. After such transfer or conveyance, the provisions of this Act governing undivided co-ownership of, or undivided interest in, the common areas in condominium projects shall fully apply. Sec. 13. Until the enabling or the master deed of the project in which the condominium corporation owns or holds the common area is revoked, the corporation shall not be voluntarily dissolved through an action for dissolution under Rule 104 of the Rules of Court except upon a showing: (a) That three years after damage or destruction to the project in which the corporation owns or holds the common areas, which damage or destruction renders a material part thereof unfit for its use prior thereto, the project has not been rebuilt or repaired substantially to its state prior to its damage or destruction; or (b) That damage or destruction to the project has rendered one-half or more of the units therein untenantable and that more than thirty percent of the members of the corporation, if non-stock, or the shareholders representing more than thirty percent of the capital stock entitled to vote, if a stock corporation, are opposed to the repair or reconstruction of the project, or (c) That the project has been in existence in excess of fifty years, that it is obsolete and uneconomical, and that more than fifty percent of the members of the corporation, if non-stock, or the stockholders representing more than fifty percent of the capital stock entitled to vote, if a stock corporation, are opposed to the repair or restoration or remodeling or modernizing of the project; or (d) That the project or a material part thereof has been condemned or expropriated and that the project is no longer viable, or that the members holding in aggregate more than seventy percent interest in the corporation, if non-stock, or the stockholders representing more than seventy percent of the
capital stock entitled to vote, if a stock corporation, are opposed to the continuation of the condominium regime after expropriation or condemnation of a material portion thereof; or (e) That the conditions for such a dissolution set forth in the declaration of restrictions of the project in which the corporation owns of holds the common areas, have been met. Sec. 14. The condominium corporation may also be dissolved by the affirmative vote of all the stockholders or members thereof at a general or special meeting duly called for the purpose: Provided, That all the requirements of Sec. sixty-two of the Corporation Law are complied with. Sec. 15. Unless otherwise provided for in the declaration of restrictions upon voluntary dissolution of a condominium corporation in accordance with the provisions of Sections thirteen and fourteen of this Act, the corporation shall be deemed to hold a power of attorney from all the members or stockholders to sell and dispose of their separate interests in the project and liquidation of the corporation shall be effected by a sale of the entire project as if the corporation owned the whole thereof, subject to the rights of the corporate and of individual condominium creditors. Sec. 16. A condominium corporation shall not, during its existence, sell, exchange, lease or otherwise dispose of the common areas owned or held by it in the condominium project unless authorized by the affirmative vote of all the stockholders or members. Sec. 17. Any provision of the Corporation Law to the contrary notwithstanding, the by-laws of a condominium corporation shall provide that a stockholder or member shall not be entitled to demand payment of his shares or interest in those cases where such right is granted under the Corporation Law unless he consents to sell his separate interest in the project to the corporation or to any purchaser of the corporation's choice who shall also buy from the corporation the dissenting member or stockholder's interest. In case of disagreement as to price, the procedure set forth in the appropriate provision of the Corporation Law for valuation of shares shall be followed. The corporation shall have two years within which to pay for the shares or furnish a purchaser of its choice from the time of award. All expenses incurred in the liquidation of the interest of the dissenting member or stockholder shall be borne by him. Sec. 18. Upon registration of an instrument conveying a condominium, the Register of Deeds shall, upon payment of the proper fees, enter and annotate
the conveyance on the certificate of title covering the land included within the project and the transferee shall be entitled to the issuance of a "condominium owner's" copy of the pertinent portion of such certificate of title. Said "condominium owner's" copy need not reproduce the ownership status or series of transactions in force or annotated with respect to other condominiums in the project. A copy of the description of the land, a brief description of the condominium conveyed, name and personal circumstances of the condominium owner would be sufficient for purposes of the "condominium owner's" copy of the certificate of title. No conveyance of condominiums or part thereof, subsequent to the original conveyance thereof from the owner of the project, shall be registered unless accompanied by a certificate of the management body of the project that such conveyance is in accordance with the provisions of the declaration of restrictions of such project. In cases of condominium projects registered under the provisions of the Spanish Mortgage Law or Act 3344, as amended, the registration of the deed of conveyance of a condominium shall be sufficient if the Register of Deeds shall keep the original or signed copy thereof, together with the certificate of the management body of the project, and return a copy of the deed of conveyance to the condominium owner duly acknowledge and stamped by the Register of Deeds in the same manner as in the case of registration of conveyances of real property under said laws. Sec. 19. Where the enabling or master deed provides that the land included within a condominium project are to be owned in common by the condominium owners therein, the Register of Deeds may, at the request of all the condominium owners and upon surrender of all their "condominium owner's" copies, cancel the certificates of title of the property and issue a new one in the name of said condominium owners as pro-indiviso co-owners thereof. Sec. 20. An assessment upon any condominium made in accordance with a duly registered declaration of restrictions shall be an obligation of the owner thereof at the time the assessment is made. The amount of any such assessment plus any other charges thereon, such as interest, costs (including attorney's fees) and penalties, as such may be provided for in the declaration of restrictions, shall be and become a lien upon the condominium assessed when the management body causes a notice of assessment to be registered with the Register of Deeds of the city or province where such condominium
project is located. The notice shall state the amount of such assessment and such other charges thereon a may be authorized by the declaration of restrictions, a description of the condominium, unit against which same has been assessed, and the name of the registered owner thereof. Such notice shall be signed by an authorized representative of the management body or as otherwise provided in the declaration of restrictions. Upon payment of said assessment and charges or other satisfaction thereof, the management body shall cause to be registered a release of the lien. Such lien shall be superior to all other liens registered subsequent to the registration of said notice of assessment except real property tax liens and except that the declaration of restrictions may provide for the subordination thereof to any other liens and encumbrances. Such liens may be enforced in the same manner provided for by law for the judicial or extra-judicial foreclosure of mortgages of real property. Unless otherwise provided for in the declaration of restrictions, the management body shall have power to bid at foreclosure sale. The condominium owner shall have the same right of redemption as in cases of judicial or extra-judicial foreclosure of mortgages. Sec. 21. No labor performed or services or materials furnished with the consent of or at the request of a condominium owner or his agent or his contractor or subcontractor, shall be the basis of a lien against the condominium of any other condominium owner, unless such other owners have expressly consented to or requested the performance of such labor or furnishing of such materials or services. Such express consent shall be deemed to have been given by the owner of any condominium in the case of emergency repairs of his condominium unit. Labor performed or services or materials furnished for the common areas, if duly authorized by the management body provided for in a declaration of restrictions governing the property, shall be deemed to be performed or furnished with the express consent of each condominium owner. The owner of any condominium may remove his condominium from a lien against two or more condominiums or any part thereof by payment to the holder of the lien of the fraction of the total sum secured by such lien which is attributable to his condominium unit. Sec. 22. Unless otherwise provided for by the declaration of restrictions, the management body, provided for herein, may acquire and hold, for the benefit of the condominium owners, tangible and intangible personal property and may dispose of the same by sale or otherwise; and the beneficial interest in
such personal property shall be owned by the condominium owners in the same proportion as their respective interests in the common areas. A transfer of a condominium shall transfer to the transferee ownership of the transferor's beneficial interest in such personal property. Sec. 23. Where, in an action for partition of a condominium project or for the dissolution of condominium corporation on the ground that the project or a material part thereof has been condemned or expropriated, the Court finds that the conditions provided for in this Act or in the declaration of restrictions have not been met, the Court may decree a reorganization of the project, declaring which portion or portions of the project shall continue as a condominium project, the owners thereof, and the respective rights of said remaining owners and the just compensation, if any, that a condominium owner may be entitled to due to deprivation of his property. Upon receipt of a copy of the decree, the Register of Deeds shall enter and annotate the same on the pertinent certificate of title. Sec. 24. Any deed, declaration or plan for a condominium project shall be liberally construed to facilitate the operation of the project, and its provisions shall be presumed to be independent and severable. Section 25. Whenever real property has been divided into condominiums, each condominium separately owned shall be separately assessed, for purposes of real property taxation and other tax purposes to the owners thereof and the tax on each such condominium shall constitute a lien solely thereon. Sec. 26. All Acts or parts of Acts in conflict or inconsistent with this Act are hereby amended insofar as condominium and its incidents are concerned. Sec. 27. This Act shall take effect upon its approval. Approved: June 18, 1966
PRESIDENTIAL DECREE No. 815 October 21, 1975 AMENDING SECTION 4 OF P.D. NO. 583, DATED NOVEMBER 16, 1975, "PRESCRIBING PENALTIES FOR THE UNLAWFUL EJECTMENT, EXCLUSION, REMOVAL, OR OUSTER OF TENANT-FARMERS FROM THEIR FARMHOLDINGS" WHEREAS, there is an urgent need to further strengthen the security of tenure of the tenantfarmers/agricultural lessees in the cultivation of the landholding planted to rice and corn;
PD 815 Prohibited Acts: - conversion of tenanted land primarily devoted to rice and corn into any non-agricultural use or into the production of any other crop as a means to avoid the application of the land reform laws or decrees to his
WHEREAS, despite various Decrees, Letter of Instructions and other Orders as well as speeches and other pronouncements by me that tenant farmers and agricultural lessees should be ejected or dispossessed of the lands being cultivated by them, some landowners, landholders, and/or agricultural lessors have resorted to various schemes and devices with which to circumvent the aforementioned pronouncements. WHEREAS, in view of the numerous disturbing reports that many landowners have subleased their tenanted landholding planted to rice and corn to other persons so that the latter appears in their behalf as the legal possessor thereof without binding the landowner in the event of a violation of the aforementioned Presidential Decrees Nos. 316 and 583, the government must act with dispatch to protect the security of tenure of our tenant/farmers/agricultural lessees; WHEREAS, this scheme is patently directed against a vital program of the New Society and cannot be tolerated, much less sanctioned, by the government; NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers in me vested by the Constitution do hereby decree and order: Section 1. Section 4 of P.D. No. 583 is hereby amended as follows: "Subject to the studies on zoning of the Human Settlements Commission and unless previously authorized by the Secretary of Agrarian Reform, any landowner, landholder, agricultural-lessor or anybody acting for and in their behalf, who converts his tenanted land primarily devoted to rice and corn into any non-agricultural use or into the production of any other crop as a means to avoid the application of the land reform laws or decrees to his landholdings and to dispossess his tenantfarmers of the land tilled by them shall, upon conviction, suffer the penalty of prision mayor or a fine ranging from P5,000.00 to P10,000.00 or both, at the discretion of the Court. "The same penalty shall be imposed on a landowner, landholder, agricultural-lessor, or anybody acting for and in their behalf, who by any other act, scheme or strategy shall eject, exclude, remove or oust and/or cause the ouster, exclusion, removal or ejectment of a tenant-farmer from his farmholdings in contravention of decrees, laws, and other orders on land reform." Section 2. All provisions of existing laws, orders, decrees, rules and regulations inconsistent herewith are hereby repealed of modified accordingly. Section 3. This decree shall take effect immediately. Done in the City of Manila, this 21st day of October, in the year of Our Lord, nineteen hundred and
landholdings and to dispossess his tenant-farmers of the land tilled by them - ejectment, exclusion, removal or ouster and/or cause the ouster, exclusion, removal or ejectment of a tenant-farmer from his farmholdings in contravention of decrees, laws, and other orders on land reform.
seventy-five.
PRESIDENTIAL DECREE No. 933 May 13, 1976 CREATING THE HUMAN SETTLEMENTS COMMISSION WHEREAS, it is a declared objective of the New Society to effect social, economic and political reforms attuned to the establishment of a secure national community and to an improved quality of life for all citizens and for all others who may sojourn upon our shores; WHEREAS, human settlement is an integrative concept embracing the interdependence of man's environment, human shelters and structures, and the design and organization of human communities consistently with a national framework plan, all for the people's security and well-being. WHEREAS, the quality of human life in our times is inescapably determined by the relationship amongst human populations, resources, the environment, and intelligent policies; WHEREAS, our programs or reform now call for the organization of a body that is adequate and responsive to the manifold tasks of formulating human settlements perspectives and policies, designing operational programs for the control of all forms of environmental blight or deterioration, and adopting and implementing measures for ensuring the safety and wholesomeness of life in our communities with due regard to consideration of space, efficient land use, equity in resources distribution, and rational relationship amongst our communities. NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution, do hereby order and decree and make as part of the laws of the land the following: Section 1. Declaration of Policies. It is hereby declared to be the policy of the Government (a) to liberate our human communities from blight, congestion, and hazard, and to promote their development and modernization; (b) to bring about the optimum use of land as a national resource for public welfare rather than as a commodity of trade subject to price speculation and indiscriminate use; (c) to effect rational interdependence of communities both within as well as amongst the various regions; (d) to preserve and promote a dynamic balance between the physical beauty of our land and waters on the one hand, and the handiwork of human technology on the other; and finally, (e) to realize those policies through the human settlements approach; engaging in these activities the best efforts of the private and public sectors.
P.D. 933
P.D. 933 was premised on the need to cope up with the contemporary times; in view of modernization, industrialization, and rural migration, there was a need to come up with a national framework plan which would integrate the environment, human shelters and structures, and the design and organization of human communities to avoid urban congestion, environmental degradation, and to promote efficient land use and equity in resource s distribution. P.D. 933 created the Human Settlements Commission (HSC) as a planning, regulatory, implementing and coordinating body for physical and human settlement plans and programs. P.D. 933 was the first Act to contemplate the concepts of: - a National Land Use program (under par. (e), Sec. 2: Land Resource Management); - Human Settlements / Human Settlements Approach / Human Settlement Plan (phasing, priorities, financing); and - a Development Plan which would integrate Regional and National Development plans (socio-economic growth and development of areas) P.D. 933 created the HSC to coordinate with NEDA regarding multiyear and annual Human Settlement Plans and Programs for the approval of the President (inter-agency cooperation), to help private entities and government agencies plan, develop, and coordinate such Laws passed before EO 648. Page | 13
Section 2. Definitions. As used in this Decree, the following words or phrases shall have the following meanings or definitions: (a) "Development Plan" refers to the document/documents, including maps, charts and other materials embodying goals and proposals for the overall socio-economic growth and development of an area. The term covers both national and regional development plans. (b) "Human Settlements" means the habitat or built environment of human beings encompassing both rural and urban areas where man settles himself to live." (c) "Human Settlements Approach" means the physical planning, improvement, and management of human settlements. This includes consideration of shelter and related facilities which affect habitability and efficiency from the viewpoints of quality of life and economic and social opportunity. (d) "Human Settlements Plan" refers to the major goals, objectives, and policies for the planning of human settlements, translated into a broad program of physical planning activities, programs and projects, including its phasing, priorities, and financing. (e) "Land Resource Management" means the formulation of policies and programs relating to the general use of land, the preparation of land use, plans, reflecting these policies and programs; the coordination of efforts relating to land resources among government agencies and between various levels of government, and the administration of programs and implementation of mechanisms in support of these policies. (f) "Local Planning Bodies" refer to the existing offices or agencies or those which may be created in the future which are lawfully entrusted with physical planning functions in the local governments. (g) "Physical Planning" means the art and science of ordering and managing the use of land and its environment and the character and siting of buildings and communication routes so as to secure the maximum practicable degree of economy, convenience and beauty. (h) "Pilot or Experimental Projects" refers to any undertaking, activity, or operation, of more or less limited duration, involving investments carried out with the end in view of trying out alternative and innovative approaches to managing and planning human settlements. (i) "Planned Area for New Development" refers to any areas/area identified and segregated for overall and integrated planning and development as a single unit or physical area.
programs, as well as monitor the implementation of the same.
(j) "Regional Planning Bodies" refer to the existing offices or agencies such as the Regional Development Councils (RDCs) or those which may be created in the future which are lawfully entrusted with physical planning functions in the region. Section 3. Creation of the Human Settlements Commission. For the purpose of carrying out the above declared policy, there is hereby created a Human Settlements Commission, hereinafter referred to as the Commission, which shall be under the Office of the President of the Philippines. The Commission shall be composed of the following members: (1) the Deputy Director-General, National Economic and Development Authority; (2) the Undersecretary, Department of Public Works, Transportation and Communications; (3) the Undersecretary of Public Highways; (4) the Undersecretary, Department of Natural Resources; (5) the Undersecretary, Department of Justice; (6) the Undersecretary, Department of Local Government and Community Development; (7) the General Manager, National Housing Authority; (8) the full-time Commissioner of the National Pollution Control Commission; (9) Undersecretary of Agriculture; (10) Deputy Commissioner of the Budget and (11) a Chairman appointed by the President who shall be a member of the National Economic and Development Authority. The Chairman and members of the Commission may be allowed to receive per diems and allowances as may be necessary for the performance of their duties. The Commission is authorized to create such working sub-committees as may be needed for carrying out the functions of the Commission. The Commission shall appoint and maintain an adequate technical and administrative staff, which will be headed by an Executive Director. The Task Force on Human Settlements created and organized pursuant to Executive Order No. 419 and Presidential Decree NO. 297, both dated September 19, 1973, shall be abolished upon the organization of the Commission herein created and its pertinent functions together with the applicable personnel, balance of appropriation, records, equipment and property shall be transferred to the Commission. The pertinent physical planning functions of the Planning and Project Development Office (PPDO) created by Department Order No. 40 dated June 27, 1972 of the Department of Public Works, Transportation and Communications (DPWTC) are hereby transferred to the Commission, together with such applicable personnel, appropriations, records, equipment, and property as may be mutually determined by the DPWTC and the Commission. However, the DPWTC shall retain such physical planning functions as are essential to and supportive of the infrastructure program and operations of the DPWTC and of the corporations attached to the Department.
The regular professional and technical personnel of the Commission shall be exempt form WAPCO rules and regulations. Section 4. Functions. The Commission shall have the following functions: 1. Formulate a multi-year integrated national plan on human settlements and identify and develop the spatial implications and components of national and regional development plans, policies and programs. 2. Undertake, promote, commission and/or contract the gathering of data, the conduct of studies, and the development and applications of technology pertaining to human settlements necessary for the formulation of human settlements policies, plans and programs; and monitor the implementation of such policies, plans and programs for the different levels of government and for the public and private sectors. 3. Conduct public hearings on all human settlements plans before their submission to the NEDA. The Commission may likewise conduct public hearing on all other plans prepared by it as it may deem necessary. 4. Promulgate rules and regulations to ensure compliance with policies, plans, standards and guidelines of human settlements formulated under Paragraph 2 of this Section which shall be enforced by the appropriate implementing agencies of the government such as those concerned with land resources management, ecological conservation and development and control of urban/industrial pollution and hazards. 5. Act as appellate body in case of conflicting decisions and actions arising from the exercise of the physical planning functions of the regional and/or local planning agencies. 6. With the concurrence of the NEDA, recommend for the approval of the President selected human settlements as Planned Areas for New Development, in accordance with modern comprehensive physical planning techniques, indicating the preferred implementing entity. If deemed necessary, an implementing legislation shall be enacted for this purpose which may include the grant of eminent domain to the implementing entity. Under such terms and conditions as the President may further prescribe, the Commission may be authorized to directly develop and implement a Planned Area for New Development, either by itself or as part of an inter-agency group and/or by contract with such appropriate public and/or private entities as it may be deem proper. 7. Promote, encourage, coordinate, and assist private enterprises and government agencies and instrumentalities in planning, developing and coordinating humans settlements programs and to
furnish, to the extent possible, technical and professional assistance and guidance. 8. Promulgate guidelines, standards and reporting system for monitoring of physical planning activities in the national, regional and local levels. 9. Call on any department, bureau, office, agency or instrumentality of the government, and on private entities and organizations for cooperation and assistance in the performance of its functions. 10. Adopt rules and procedures for the transaction of its business. 11. Perform such other activities which are necessary for the effective performance of the abovementioned functions and objectives. Section 5. National Planning Functions. The Commission shall submit the integrated national multi-year and annual Human Settlements Plans to the NEDA Board for coordination and integration with the national development plan. It shall also submit the proposed draft legislation, if necessary, for the implementation of such plans. Once the Human Settlements Plan has been approved and the implementing legislation promulgated, all plans, programs and projects of the government and the private sectors related to humans settlements shall conform to the guidelines and standard set forth therein. The Commission shall also submit to the NEDA an Annual Human Settlements Plan consistent with the annual development budget and such annual plans which NEDA may prepare, for integration into the national development plan. Said Annual Plan shall be submitted in time for consideration in the preparation of the development budget and national development plan. Section 6. Regional Planning Functions. For the effective integration of economic planning with the physical planning of human settlements, the NEDA and the Commission shall be in constant and regular consultation with each other and shall effect a mutual reporting system. At the request of a Regional Development Council (RDC), the Commission may prepare the regional plan for that region and/or may provide such necessary technical and planning assistance as may be necessary. The Commission may help the RDCs to establish their respective physical planning units. Section 7. Project Implementation. Except as otherwise provided herein, the Commission may not undertake project implementation involving specific sites except in the case of pilot or experimental projects which may or may not form part of the Planned Development Units. For this purpose, with the prior concurrence of the NEDA, it may undertake the project itself or designate any suitable government agency or agencies, any qualified private organization, or any other qualified group of
persons to undertake said pilot or experimental projects. In the latter case, it shall issue a designating order with the approval of and through the President which shall embody the powers and functions of said organizations including the nature, extent and duration of its special authority, consistent with existing laws. Section 8. Regulatory Functions. (a) The Commission shall assist and coordinate with the National Pollution Control Commission (NPCC) in the performance of its functions such as the setting of performance standards for emitants, industrial wastes, fire hazards and the like to ensure that factories, plants, industries and the like shall provide adequate and effective devices for the healthy and safe disposal of industrial wastes and shall install anti-pollution devices, safety devices and the like and otherwise use their property in accordance with prescribed policies, rules and regulations promulgated by the Commission. (b) The Commission shall formulate 1. National standards, rules and regulations to be followed and observed by the regional and local planning authorities in the preparation and implementation of human settlements policies, plans and programs. 2. Regional standards and guidelines on land use, classification, and readjustment schemes in coordination with the appropriate government entities and with the concurrence of the Regional Development Councils concerned. 3. Model ordinances and development regulations such as zoning, subdivision and building regulations, and housing and rental codes for the guidance of and possible consideration, by regional and local planning authorities, including local governments. (c) Within the context of the national and regional standards and guidelines, the preparation of local physical or zoning plans shall be undertaken by the appropriate local governments, to be embodied in local ordinances: Provided, however, That the concurrence of the Commission shall be obtained beforehand and: Provided, further, That such concurrence shall be limited to the consistency of the local ordinance to the national and regional standards and guidelines and shall not extend to the utilization and/or classification of specific individual plots of land. Section 9. General Powers of the Commission. In order to perform its various functions, the Commission shall have the following general powers, subjects to existing laws: (a) Enter into contracts, either domestic or foreign, whenever necessary under such terms and
conditions as it may deem proper and reasonable. (b) Receive, take and hold by bequest, device, gift, purchase or lease, either absolutely or in trust for any asset, grant or property, real or personal, subject to such limitations as are provided in existing laws and regulations; to convey such asset, grant or property, invest and reinvest the same under this provision and deal with and expand its assets and income in such manner as will best promote its public welfare objectives. (c) Develop and maintain in conjunction with cooperating agencies a responsive information system through the establishment of a data bank to support the Commission at various specific levels in the planning, monitoring, execution, coordination and control of its various activities, programs and/or projects. (d) To do and perform any and all such acts as may be necessary and proper to carry out the objectives of this Decree. Section 10. Powers of the Commission Upon Notice and Hearing. The Commission shall have the following powers, upon proper notice and hearing: (a) Formulate the national and regional human settlements plans. (b) Formulate national or regional plans showing the area or areas for the location of factories, plants, industries, which shall be subject to regulations. Section 11. Powers of the Commission Without Hearing. The Commission shall have the power to do the following without hearing: (a) Require all persons, corporations or other entities to furnish it with such physical and operational plans, maps and other relevant information as it may need to discharge its duties under this Decree. (b) Issue subpoena and subpoena duces tecum on any inquiry, study, hearing, investigation or proceeding which it may decide to undertake in the excess of its functions, powers and duties under this Decree. (c) Call on any department, bureau, office, agency, or instrumentality of the government or any of its political subdivisions for cooperation and assistance in the performance of its duties and functions. (d) Promulgate rules and regulations relevant to procedures governing hearings before the
Commission and enforce compliance with any rule, regulation, order or other requirements of this Decree or of the Commission: Provided, That the said rules and regulations shall take effect fifteen (15) days after publications in a newspaper of general circulation. (e) Issue and promulgate such rules and regulations as it may deem necessary in the attainment of its objectives. (f) Perform such other acts as may be necessary or conducive to the exercise of its function and powers and the discharge of its duties under this Decree. Section 12. Submission of Annual Reports. The Commission shall render an Annual Report and such other reports as may be necessary to the Office of the President. Section 13. Commission Procedure. All inquiries, studies, hearings, investigations and proceedings conducted by the Commission shall be governed by rules adopted by the Commission, and in the conduct thereof the Commission shall not be bound by technical rules and evidence: Provided, That the Commission may summarily punish for contempt, by a fine not exceeding five hundred pesos (P500.00) or upon application of the Commission in the appropriate contempt proceedings, by imprisonment of not exceeding thirty (30) days or both, any person guilty of such misconduct in the presence of the Commission or so near thereto as to seriously interrupt any hearing or session or any proceeding before it, including cases wherein a person willfully fails or refuses, without just cause, to comply with a summons, subpoena, or subpoena duces tecum legally issued by the Commission, or, being present at a hearing session or investigation, refuses to be sworn as a witness or to answer questions when lawfully required to do so, or to furnish information required by the Commission under this Decree. The sheriff or other police agencies of the place where the hearing or investigation is conducted shall, upon the request of the Commission, assist it to enforce the provisions of this Section. Section 14. Review of Commission's Decision or Order. a party adversely affected by any decision or order of the Commission in the exercise of its powers subject to hearing, may within a period of thirty (30) days from receipt of said decision or order, appeal to the Office of the President in accordance with the provisions of the Executive Order No. 19, series of 1966. A motion for reconsideration filed with the Commission within the period for appeal shall stop or suspend the running of the period for appeal to the Office of the President and the period for appeal shall continue to run again from the date of receipt by the party concerned of the denial of his motion for reconsideration by the Commission. Section 15. Penalties. (a) Any person who shall give false or misleading data or information of willfully or through gross negligence, conceals or falsifies a material fact, in any investigation, inquiry, study or other
proceedings held pursuant to this Decree, shall be punished with imprisonment of not less than four nor more than six months with a fine of not less than five hundred pesos nor more than one thousand pesos: Provided, That if the false or misleading data or information shall have been given under oath, the maximum penalty for giving false testimony or perjury shall be imposed. (b) Any person or establishment who violates any provision of this Decree or any order, decision, ruling or regulation of the Commission shall, upon conviction for the first time, be warned and placed on probation under such terms and conditions as the proper Court may impose. On second conviction, the penalty to be imposed shall be the removal, withdrawal, cessation or refusal of infrastructure support namely; highways, sewage, water, electric power and the like. On the third and subsequent convictions, the offender shall, in addition to the penalty imposed on second conviction, be sentenced to imprisonment for a period of not less than six months nor more than five years and a fine of not less than five thousand pesos: Provided, That if the offender is a corporation, partnership or juridical person, the penalty of imprisonment shall be imposed on the officer or officers responsible for permitting or causing the violation. Section 16. Domicile. The principal office of the Commission shall be established in Metropolitan Manila. The Commission may also have branches or offices at such other place or places in the Philippines, as the operations and activities of the Commission may require. Section 17. Appropriation. The budget of the Commission shall be twenty-nine million pesos (P29,000,000.00) for calendar year 1976 which is hereby appropriated out of any funds in the National Treasury. Thereafter, such amount as necessary to carry out the provisions of this Decree shall be included in the Annual Appropriations Act. Section 18. Separability Clause. If any provision of this Decree shall be held invalid, the remainder shall not be affected thereby. Section 19. Repealing Clause. Any provision of law, executive order, rule or regulation inconsistent with this Decree are hereby repealed or modified accordingly. Section 20. Effectivity. This Decree shall take effect immediately. Done in the City of Manila, this 13th day of May in the year of Our Lord, nineteen hundred and seventy-six.
PRESIDENTIAL DECREE No. 957 July 12, 1976
P.D. 957 was enacted in order to protect the rights of the subdivision and condominium unit buyers from developers who renege on their Laws passed before EO 648. Page | 21
REGULATING THE SALE OF SUBDIVISION LOTS AND CONDOMINIUMS, PROVIDING PENALTIES FOR VIOLATIONS THEREOF WHEREAS, it is the policy of the State to afford its inhabitants the requirements of decent human settlement and to provide them with ample opportunities for improving their quality of life; WHEREAS, numerous reports reveal that many real estate subdivision owners, developers, operators, and/or sellers have reneged on their representations and obligations to provide and maintain properly subdivision roads, drainage, sewerage, water systems, lighting systems, and other similar basic requirements, thus endangering the health and safety of home and lot buyers; WHEREAS, reports of alarming magnitude also show cases of swindling and fraudulent manipulations perpetrated by unscrupulous subdivision and condominium sellers and operators, such as failure to deliver titles to the buyers or titles free from liens and encumbrances, and to pay real estate taxes, and fraudulent sales of the same subdivision lots to different innocent purchasers for value; WHEREAS, these acts not only undermine the land and housing program of the government but also defeat the objectives of the New Society, particularly the promotion of peace and order and the enhancement of the economic, social and moral condition of the Filipino people; WHEREAS, this state of affairs has rendered it imperative that the real estate subdivision and condominium businesses be closely supervised and regulated, and that penalties be imposed on fraudulent practices and manipulations committed in connection therewith. NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution, do hereby decree and order: Title ITITLE AND DEFINITIONS Section 1. Title. This Decree shall be known as THE SUBDIVISION AND CONDOMINIUM BUYERS' PROTECTIVE DECREE. Section 2. Definition of Terms When used in this Decree, the following terms shall, unless the context otherwise indicates, have the following respective meanings: (a) Person. "Person" shall mean a natural or a juridical person. A juridical person refers to a business firm whether a corporation, partnership, cooperative or associations or a single proprietorship.
obligations to deliver quality units and facilities, and from brokers/ sellers who fail to deliver titles free from liens and encumbrances. P.D. 957 imposes penalties and administrative sanctions upon erring developers. P.D. 957 vested upon the NHA the exclusive jurisdiction to regulate the real-estate trade and business; however, E. O. 648 of February 7, 1981 devolved that power to Human Settlements Regulatory Commission (HSRC- formerly HSC, renamed as such by P.D. 1396 of June 2, 1978); - further, HSRC was renamed HLURB by E. O. 90 of December 17, 1986 P.D. 957 regulates the relationship between subdivision/ condominium unit developers and subdivision/ condominium unit buyers before, during and after the sale/ transaction. BEFORE TRANSACTION: Registration of Subdivision/ Condominium Project Issuance of License to Sell Registration of Dealers, Brokers, and Salesmen
DURING TRANSACTION: - Proof of adherence to the Subdivision Standards and Regulations for subdivision projects; and - Compliance with the National Building Code for condominium projects
(b) Sale or sell. "Sale" or "sell" shall include every disposition, or attempt to dispose, for a valuable consideration, of a subdivision lot, including the building and other improvements thereof, if any, in a subdivision project or a condominium unit in a condominium project. "Sale" and "sell" shall also include a contract to sell, a contract of purchase and sale, an exchange, an attempt to sell, an option of sale or purchase, a solicitation of a sale, or an offer to sell, directly or by an agent, or by a circular, letter, advertisement or otherwise. A privilege given to a member of a cooperative, corporation, partnership, or any association and/or the issuance of a certificate or receipt evidencing or giving the right of participation in, or right to, any land in consideration of payment of the membership fee or dues, shall be deemed a sale within the meaning of this definition. (c) Buy and purchase. The "buy" and "purchase" shall include any contract to buy, purchase, or otherwise acquire for a valuable consideration a subdivision lot, including the building and other improvements, if any, in a subdivision project or a condominium unit in a condominium project. (d) Subdivision project. "Subdivision project" shall mean a tract or a parcel of land registered under Act No. 496 which is partitioned primarily for residential purposes into individual lots with or without improvements thereon, and offered to the public for sale, in cash or in installment terms. It shall include all residential, commercial, industrial and recreational areas as well as open spaces and other community and public areas in the project. (e) Subdivision lot. "Subdivision lot" shall mean any of the lots, whether residential, commercial, industrial, or recreational, in a subdivision project. (f) Complex subdivision plan. "Complex subdivision plan" shall mean a subdivision plan of a registered land wherein a street, passageway or open space is delineated on the plan. (g) Condominium project. "Condominium project" shall mean the entire parcel of real property divided or to be divided primarily for residential purposes into condominium units, including all structures thereon. (h) Condominium unit. "Condominium unit" shall mean a part of the condominium project intended for any type of independent use or ownership, including one or more rooms or spaces located in one or more floors (or part of parts of floors) in a building or buildings and such accessories as may be appended thereto. (i) Owner. "Owner" shall refer to the registered owner of the land subject of a subdivision or a condominium project.
AFTER TRANSACTION: - Monitoring of quality of facilities and completion of projects (application for ETDs) - Revocation of Certificate of Registration of Developers, and the appropriate administrative sanctions - Suspension of License to Sell - Revocation of Registration of Brokers, Dealers and Salesmen and the appropriate administrative sanctions P.D. 957 recognizes the power and participation of the homeowners associations or the majority of the lot buyers in the alteration of the subdivision plans. P.D. 957 provides for Take-over Development, where, upon the failure of the subdivision/ condominium project developer to completely develop the project, the Authority (NHA to HLURB) may continue to develop the said project at the expense of the developer, and may also collect from the unit buyers the installment payments due on the lots, such funds to be utilized for the development of the project. P.D. 957 empowers the Authority to deputize law enforcement agencies in the execution of its final orders, rulings, or decisions.
(j) Developer. "Developer" shall mean the person who develops or improves the subdivision project or condominium project for and in behalf of the owner thereof. (k) Dealer. "Dealer" shall mean any person directly engaged as principal in the business of buying, selling or exchanging real estate whether on a full-time or part-time basis. (l) Broker. "Broker" shall mean any person who, for commission or other compensation, undertakes to sell or negotiate the sale of a real estate belonging to another. (m) Salesman. "Salesman" shall refer to the person regularly employed by a broker to perform, for and in his behalf, any or all functions of a real estate broker. (n) Authority. "Authority" shall mean the National Housing Authority. Title IIREGISTRATION AND LICENSE TO SELL Section 3. National Housing Authority The National Housing Authority shall have exclusive jurisdiction to regulate the real estate trade and business in accordance with the provisions of this Decree. Section 4. Registration of Projects The registered owner of a parcel of land who wishes to convert the same into a subdivision project shall submit his subdivision plan to the Authority which shall act upon and approve the same, upon a finding that the plan complies with the Subdivision Standards' and Regulations enforceable at the time the plan is submitted. The same procedure shall be followed in the case of a plan for a condominium project except that, in addition, said Authority shall act upon and approve the plan with respect to the building or buildings included in the condominium project in accordance with the National Building Code (R.A. No. 6541). The subdivision plan, as so approved, shall then be submitted to the Director of Lands for approval in accordance with the procedure prescribed in Section 44 of the Land Registration Act (Act No. 496, as amended by R.A. No. 440): Provided, that it case of complex subdivision plans, court approval shall no longer be required. The condominium plan as likewise so approved, shall be submitted to the Register of Deeds of the province or city in which the property lies and the same shall be acted upon subject to the conditions and in accordance with the procedure prescribed in Section 4 of the Condominium Act (R.A. No. 4726). The owner or the real estate dealer interested in the sale of lots or units, respectively, in such subdivision project or condominium project shall register the project with the Authority by filing therewith a sworn registration statement containing the following information:
(a) Name of the owner; (b) The location of the owner's principal business office, and if the owner is a non-resident Filipino, the name and address of his agent or representative in the Philippines is authorized to receive notice; (c) The names and addresses of all the directors and officers of the business firm, if the owner be a corporation, association, trust, or other entity, and of all the partners, if it be a partnership; (d) The general character of the business actually transacted or to be transacted by the owner; and (e) A statement of the capitalization of the owner, including the authorized and outstanding amounts of its capital stock and the proportion thereof which is paid-up. The following documents shall be attached to the registration statement: (a) A copy of the subdivision plan or condominium plan as approved in accordance with the first and second paragraphs of this section. (b) A copy of any circular, prospectus, brochure, advertisement, letter, or communication to be used for the public offering of the subdivision lots or condominium units; (c) In case of a business firm, a balance sheet showing the amount and general character of its assets and liabilities and a copy of its articles of incorporation or articles of partnership or association, as the case may be, with all the amendments thereof and existing by-laws or instruments corresponding thereto. (d) A title to the property which is free from all liens and encumbrances: Provided, however, that in case any subdivision lot or condominium unit is mortgaged, it is sufficient if the instrument of mortgage contains a stipulation that the mortgagee shall release the mortgage on any subdivision lot or condominium unit as soon as the full purchase price for the same is paid by the buyer. The person filing the registration statement shall pay the registration fees prescribed therefor by the Authority. Thereupon, the Authority shall immediately cause to be published a notice of the filing of the registration statement at the expense of the applicant-owner or dealer, in two newspapers general circulation, one published in English and another in Pilipino, once a week for two consecutive weeks, reciting that a registration statement for the sale of subdivision lots or condominium units
has been filed in the National Housing Authority; that the aforesaid registration statement, as well as the papers attached thereto, are open to inspection during business hours by interested parties, under such regulations as the Authority may impose; and that copies thereof shall be furnished to any party upon payment of the proper fees. The subdivision project of the condominium project shall be deemed registered upon completion of the above publication requirement. The fact of such registration shall be evidenced by a registration certificate to be issued to the applicant-owner or dealer. Section 5. License to sell. Such owner or dealer to whom has been issued a registration certificate shall not, however, be authorized to sell any subdivision lot or condominium unit in the registered project unless he shall have first obtained a license to sell the project within two weeks from the registration of such project. The Authority, upon proper application therefor, shall issue to such owner or dealer of a registered project a license to sell the project if, after an examination of the registration statement filed by said owner or dealer and all the pertinent documents attached thereto, he is convinced that the owner or dealer is of good repute, that his business is financially stable, and that the proposed sale of the subdivision lots or condominium units to the public would not be fraudulent. Section 6. Performance Bond. No license to sell subdivision lots or condominium units shall be issued by the Authority under Section 5 of this Decree unless the owner or dealer shall have filed an adequate performance bond approved by said Authority to guarantee the construction and maintenance of the roads, gutters, drainage, sewerage, water system, lighting systems, and full development of the subdivision project or the condominium project and the compliance by the owner or dealer with the applicable laws and rules and regulations. The performance bond shall be executed in favor of the Republic of the Philippines and shall authorize the Authority to use the proceeds thereof for the purposes of its undertaking in case of forfeiture as provided in this Decree. Section 7. Exempt transactions. A license to sell and performance bond shall not be required in any of the following transactions: (a) Sale of a subdivision lot resulting from the partition of land among co-owners and co-heirs. (b) Sale or transfer of a subdivision lot by the original purchaser thereof and any subsequent sale of the same lot. (c) Sale of a subdivision lot or a condominium unit by or for the account of a mortgagee in the
ordinary course of business when necessary to liquidate a bona fide debt. Section 8. Suspension of license to sell. Upon verified complaint by a buyer of a subdivision lot or a condominium unit in any interested party, the Authority may, in its discretion, immediately suspend the owner's or dealer's license to sell pending investigation and hearing of the case as provided in Section 13 hereof. The Authority may motu proprio suspend the license to sell if, in its opinion, any information in the registration statement filed by the owner or dealer is or has become misleading, incorrect, inadequate or incomplete or the sale or offering for a sale of the subdivision or condominium project may work or tend to work a fraud upon prospective buyers. The suspension order may be lifted if, after notice and hearing, the Authority is convinced that the registration statement is accurate or that any deficiency therein has been corrected or supplemented or that the sale to the public of the subdivision or condominium project will neither be fraudulent not result in fraud. It shall also be lifted upon dismissal of the complaint for lack of legal basis. Until the final entry of an order of suspension, the suspension of the right to sell the project, though binding upon all persons notified thereof, shall be deemed confidential unless it shall appear that the order of suspension has in the meantime been violated. Section 9. Revocation of registration certificate and license to sell. The Authority may, motu proprio or upon verified complaint filed by a buyer of a subdivision lot or condominium unit, revoke the registration of any subdivision project or condominium project and the license to sell any subdivision lot or condominium unit in said project by issuing an order to this effect, with his findings in respect thereto, if upon examination into the affairs of the owner or dealer during a hearing as provided for in Section 14 hereof, if shall appear there is satisfactory evidence that the said owner or dealer: (a) Is insolvent; or (b) has violated any of the provisions of this Decree or any applicable rule or regulation of the Authority, or any undertaking of his/its performance bond; or (c) Has been or is engaged or is about to engage in fraudulent transactions; or (d) Has made any misrepresentation in any prospectus, brochure, circular or other literature about the subdivision project or condominium project that has been distributed to prospective buyers; or
(e) Is of bad business repute; or (f) Does not conduct his business in accordance with law or sound business principles. Where the owner or dealer is a partnership or corporation or an unincorporated association, it shall be sufficient cause for cancellation of its registration certificate and its license to sell, if any member of such partnership or any officer or director of such corporation or association has been guilty of any act or omission which would be cause for refusing or revoking the registration of an individual dealer, broker or salesman as provided in Section 11 hereof. Section 10. Registers of subdivision lots and condominium units. A record of subdivision lots and condominium units shall be kept in the Authority wherein shall be entered all orders of the Authority affecting the condition or status thereof. The registers of subdivision lots and condominium units shall be open to public inspection subject to such reasonable rules as the Authority may prescribe. Title IIIDEALERS, BROKERS AND SALESMEN Section 11. Registration of dealers, brokers and salesmen. No real estate dealer, broker or salesman shall engage in the business of selling subdivision lots or condominium units unless he has registered himself with the Authority in accordance with the provisions of this section. If the Authority shall find that the applicant is of good repute and has complied with the applicable rules of the Authority, including the payment of the prescribed fee, he shall register such applicant as a dealer, broker or salesman upon filing a bond, or other security in lieu thereof, in such sum as may be fixed by the Authority conditioned upon his faithful compliance with the provisions of this Decree: Provided, that the registration of a salesman shall cease upon the termination of his employment with a dealer or broker. Every registration under this section shall expire on the thirty-first day of December of each year. Renewal of registration for the succeeding year shall be granted upon written application therefor made not less than thirty nor more than sixty days before the first day of the ensuing year and upon payment of the prescribed fee, without the necessity of filing further statements or information, unless specifically required by the Authority. All applications filed beyond said period shall be treated as original applications. The names and addresses of all persons registered as dealers, brokers, or salesmen shall be recorded in a Register of Brokers, Dealers and Salesmen kept in the Authority which shall be open to public inspection.
Section 12. Revocation of registration as dealers, brokers or salesmen. Registration under the preceding section may be refused or any registration granted thereunder, revoked by the Authority if, after reasonable notice and hearing, it shall determine that such applicant or registrant: 1. Has violated any provision of this Decree or any rule or regulation made hereunder; or 2. Has made a material false statement in his application for registration; or 3. Has been guilty of a fraudulent act in connection with any sale of a subdivision lot or condominium unit; or 4. Has demonstrated his unworthiness to transact the business of dealer, broker, or salesman, as the case may be. In case of charges against a salesman, notice thereof shall also be given the broker or dealer employing such salesman. Pending hearing of the case, the Authority shall have the power to order the suspension of the dealer's, broker's, of salesman's registration; provided, that such order shall state the cause for the suspension. The suspension or revocation of the registration of a dealer or broker shall carry with it all the suspension or revocation of the registrations of all his salesmen. Title IVPROCEDURE FOR REVOCATION OF REGISTRATION CERTIFICATE Section 13. Hearing. In the hearing for determining the existence of any ground or grounds for the suspension and/or revocation of registration certificate and license to sell as provided in Section 8 and 9 hereof, the following shall be complied with: (a) Notice. No such hearing shall proceed unless the respondent is furnished with a copy of the complaint against him or is notified in writing of the purpose of such hearing. (b) Venue. The hearing may be held before the officer or officers designated by the Authority on the date and place specified in the notice. (c) Nature of proceeding. The proceedings shall be non-litigious and summary in nature without regard to legal technicalities obtaining in courts of law. The Rules of court shall not apply in said
hearing except by analogy or in a suppletory character and whenever practicable and convenient. (d) Power incidental to the hearing. For the purpose of the hearing or other proceeding under this Decree, the officer or officers designated to hear the complaint shall have the power to administer oaths, subpoena witnesses, conduct ocular inspections, take depositions, and require the production of any book, paper, correspondence, memorandum, or other record which are deemed relevant or material to the inquiry. Section 14. Contempt. (a) Direct contempt. The officer or officers designated by the Authority to hear the complaint may summarily adjudge in direct contempt any person guilty of misbehavior in the presence of or so near the said hearing officials as to obstruct or interrupt the proceedings before the same or of refusal to be sworn or to answer as a witness or to subscribe an affidavit or deposition when lawfully required to do so. The person found guilty of direct contempt under this section shall be punished by a fine not exceeding Fifty (P50.00) Pesos or imprisonment not exceeding five (5) days, or both. (b) Indirect contempt. The officer or officers designated to hear the complaint may also adjudge any person in indirect contempt on grounds and in the manner prescribed in Rule 71 of the Revised Rules of Court. Section 15. Decision. The case shall be decided within thirty (30) days from the time the same is submitted for decision. The Decision may order the revocation of the registration of the subdivision or condominium project, the suspension, cancellation, or revocation of the license to sell and/or forfeiture, in whole or in part, of the performance bond mentioned in Section 6 hereof. In case forfeiture of the bond is ordered, the Decision may direct the provincial or city engineer to undertake or cause the construction of roads and of other requirements for the subdivision or condominium as stipulated in the bond, chargeable to the amount forfeited. Such decision shall be immediately executory and shall become final after the lapse of 15 days from the date of receipt of the Decision. Section 16. Cease and Desist Order. Whenever it shall appear to the Authority that any person is engaged or about to engage in any act or practice which constitutes or will constitute a violation of the provisions of this Decree, or of any rule or regulation thereunder, it may, upon due notice and hearing as provided in Section 13 hereof, issue a cease and desist order to enjoin such act or practices. Section 17. Registration. All contracts to sell, deeds of sale and other similar instruments relative to the sale or conveyance of the subdivision lots and condominium units, whether or not the purchase price is paid in full, shall be registered by the seller in the Office of the Register of Deeds of the
province or city where the property is situated. Whenever a subdivision plan duly approved in accordance with Section 4 hereof, together with the corresponding owner's duplicate certificate of title, is presented to the Register of Deeds for registration, the Register of Deeds shall register the same in accordance with the provisions of the Land Registration Act, as amended: Provided, however, that it there is a street, passageway or required open space delineated on a complex subdivision plan hereafter approved and as defined in this Decree, the Register of Deeds shall annotate on the new certificate of title covering the street, passageway or open space, a memorandum to the effect that except by way of donation in favor of a city or municipality, no portion of any street, passageway, or open space so delineated on the plan shall be closed or otherwise disposed of by the registered owner without the requisite approval as provided under Section 22 of this Decree. Section 18. Mortgages. No mortgage on any unit or lot shall be made by the owner or developer without prior written approval of the Authority. Such approval shall not be granted unless it is shown that the proceeds of the mortgage loan shall be used for the development of the condominium or subdivision project and effective measures have been provided to ensure such utilization. The loan value of each lot or unit covered by the mortgage shall be determined and the buyer thereof, if any, shall be notified before the release of the loan. The buyer may, at his option, pay his installment for the lot or unit directly to the mortgagee who shall apply the payments to the corresponding mortgage indebtedness secured by the particular lot or unit being paid for, with a view to enabling said buyer to obtain title over the lot or unit promptly after full payment thereto; Section 19. Advertisements. Advertisements that may be made by the owner or developer through newspaper, radio, television, leaflets, circulars or any other form about the subdivision or the condominium or its operations or activities must reflect the real facts and must be presented in such manner that will not tend to mislead or deceive the public. The owner or developer shall answerable and liable for the facilities, improvements, infrastructures or other forms of development represented or promised in brochures, advertisements and other sales propaganda disseminated by the owner or developer or his agents and the same shall form part of the sales warranties enforceable against said owner or developer, jointly and severally. Failure to comply with these warranties shall also be punishable in accordance with the penalties provided for in this Decree. Section 20. Time of Completion. Every owner or developer shall construct and provide the facilities, improvements, infrastructures and other forms of development, including water supply and lighting facilities, which are offered and indicated in the approved subdivision or condominium plans, brochures, prospectus, printed matters, letters or in any form of advertisement, within one year from the date of the issuance of the license for the subdivision or condominium project or such
other period of time as may be fixed by the Authority. Section 21. Sales Prior to Decree. In cases of subdivision lots or condominium units sold or disposed of prior to the effectivity of this Decree, it shall be incumbent upon the owner or developer of the subdivision or condominium project to complete compliance with his or its obligations as provided in the preceding section within two years from the date of this Decree unless otherwise extended by the Authority or unless an adequate performance bond is filed in accordance with Section 6 hereof. Failure of the owner or developer to comply with the obligations under this and the preceding provisions shall constitute a violation punishable under Sections 38 and 39 of this Decree. Section 22. Alteration of Plans. No owner or developer shall change or alter the roads, open spaces, infrastructures, facilities for public use and/or other form of subdivision development as contained in the approved subdivision plan and/or represented in its advertisements, without the permission of the Authority and the written conformity or consent of the duly organized homeowners association, or in the absence of the latter, by the majority of the lot buyers in the subdivision. Section 23. Non-Forfeiture of Payments. No installment payment made by a buyer in a subdivision or condominium project for the lot or unit he contracted to buy shall be forfeited in favor of the owner or developer when the buyer, after due notice to the owner or developer, desists from further payment due to the failure of the owner or developer to develop the subdivision or condominium project according to the approved plans and within the time limit for complying with the same. Such buyer may, at his option, be reimbursed the total amount paid including amortization interests but excluding delinquency interests, with interest thereon at the legal rate. Section 24. Failure to pay installments. The rights of the buyer in the event of this failure to pay the installments due for reasons other than the failure of the owner or developer to develop the project shall be governed by Republic Act No. 6552. Where the transaction or contract was entered into prior to the effectivity of Republic Act No. 6552 on August 26, 1972, the defaulting buyer shall be entitled to the corresponding refund based on the installments paid after the effectivity of the law in the absence of any provision in the contract to the contrary. Section 25. Issuance of Title. The owner or developer shall deliver the title of the lot or unit to the buyer upon full payment of the lot or unit. No fee, except those required for the registration of the deed of sale in the Registry of Deeds, shall be collected for the issuance of such title. In the event a mortgage over the lot or unit is outstanding at the time of the issuance of the title to the buyer, the owner or developer shall redeem the mortgage or the corresponding portion thereof within six months from such issuance in order that the title over any fully paid lot or unit may be secured and
delivered to the buyer in accordance herewith. Section 26. Realty Tax. Real estate tax and assessment on a lot or unit shall de paid by the owner or developer without recourse to the buyer for as long as the title has not passed the buyer; Provided, however, that if the buyer has actually taken possession of and occupied the lot or unit, he shall be liable to the owner or developer for such tax and assessment effective the year following such taking of possession and occupancy. Section 27. Other Charges. No owner or developer shall levy upon any lot or buyer a fee for an alleged community benefit. Fees to finance services for common comfort, security and sanitation may be collected only by a properly organized homeowners association and only with the consent of a majority of the lot or unit buyers actually residing in the subdivision or condominium project. Section 28. Access to Public Offices in the Subdivisions. No owner or developer shall deny any person free access to any government office or public establishment located within the subdivision or which may be reached only by passing through the subdivision. Section 29. Right of Way to Public Road. The owner or developer of a subdivision without access to any existing public road or street must secure a right of way to a public road or street and such right of way must be developed and maintained according to the requirement of the government and authorities concerned. Section 30. Organization of Homeowners Association. The owner or developer of a subdivision project or condominium project shall initiate the organization of a homeowners association among the buyers and residents of the projects for the purpose of promoting and protecting their mutual interest and assist in their community development. Section 31. Donations of roads and open spaces to local government. The registered owner or developer of the subdivision or condominium project, upon completion of the development of said project may, at his option, convey by way of donation the roads and open spaces found within the project to the city or municipality wherein the project is located. Upon acceptance of the donation by the city or municipality concerned, no portion of the area donated shall thereafter be converted to any other purpose or purposes unless after hearing, the proposed conversion is approved by the Authority. Section 32. Phases of Subdivision. For purposes of complying with the provisions of this Decree, the owner or developer may divide the development and sale of the subdivision into phases, each phase to cover not less than ten hectares. The requirement imposed by this Decree on the subdivision as a whole shall be deemed imposed on each phase.
Section 33. Nullity of waivers. Any condition, stipulation, or provision in contract of sale whereby any person waives compliance with any provision of this Decree or of any rule or regulation issued thereunder shall be void. Section 34. Visitorial powers. This Authority, through its duly authorized representative may, at any time, make an examination into the business affairs, administration, and condition of any person, corporation, partnership, cooperative, or association engaged in the business of selling subdivision lots and condominium units. For this purpose, the official authorized so to do shall have the authority to examine under oath the directors, officers, stockholders or members of any corporation, partnership, association, cooperative or other persons associated or connected with the business and to issue subpoena or subpoena duces tecum in relation to any investigation that may arise therefrom. The Authority may also authorize the Provincial, City or Municipal Engineer, as the case may be, to conduct an ocular inspection of the project to determine whether the development of said project conforms to the standards and specifications prescribed by the government. The books, papers, letters, and other documents belonging to the person or entities herein mentioned shall be open to inspection by the Authority or its duly authorized representative. Section 35. Take-over Development. The Authority, may take over or cause the development and completion of the subdivision or condominium project at the expenses of the owner or developer, jointly and severally, in cases where the owner or developer has refused or failed to develop or complete the development of the project as provided for in this Decree. The Authority may, after such take-over, demand, collect and receive from the buyers the installment payments due on the lots, which shall be utilized for the development of the subdivision. Section 36. Rules and Regulations. The Authority shall issue the necessary standards, rules and regulations for the effective implementation of the provisions of this Decree. Such standards, rules and regulations shall take effect immediately after their publication three times a week for two consecutive weeks in any newspaper of general circulation. Section 37. Deputization of law enforcement agencies. The Authority may deputize the Philippine Constabulary or any law enforcement agency in the execution of its final orders, rulings or decisions. Section 38. Administrative Fines. The Authority may prescribe and impose fines not exceeding ten thousand pesos for violations of the provisions of this Decree or of any rule or regulation thereunder. Fines shall be payable to the Authority and enforceable through writs of execution in
accordance with the provisions of the Rules of Court. Section 39. Penalties. Any person who shall violate any of the provisions of this Decree and/or any rule or regulation that may be issued pursuant to this Decree shall, upon conviction, be punished by a fine of not more than twenty thousand (P20,000.00) pesos and/or imprisonment of not more than ten years: Provided, That in the case of corporations, partnership, cooperatives, or associations, the President, Manager or Administrator or the person who has charge of the administration of the business shall be criminally responsible for any violation of this Decree and/or the rules and regulations promulgated pursuant thereto. Section 40. Liability of controlling persons. Every person who directly or indirectly controls any person liable under any provision of this Decree or of any rule or regulation issued thereunder shall be liable jointly and severally with and to the same extent as such controlled person unless the controlling person acted in good faith and did not directly or indirectly induce the act or acts constituting the violation or cause of action. Section 41. Other remedies. The rights and remedies provided in this Decree shall be in addition to any and all other rights and remedies that may be available under existing laws. Section 42. Repealing clause. All laws, executive orders, rules and regulations or part thereof inconsistent with the provisions of this Decree are hereby repealed or modified accordingly. Section 43. Effectivity. This Decree shall take effect upon its approval. Done in the City of Manila, this 12th day of July, in the year of Our Lord, nineteen hundred and seventy-six. PRESIDENTIAL DECREE No. 1216 DEFINING "OPEN SPACE" IN RESIDENTIAL SUBDIVISIONS AND AMENDING SECTION 31 OF PRESIDENTIAL DECREE NO. 957 REQUIRING SUBDIVISION OWNERS TO PROVIDE ROADS, ALLEYS, SIDEWALKS AND RESERVE OPEN SPACE FOR PARKS OR RECREATIONAL USE WHEREAS, there is a compelling need to create and maintain a healthy environment in human settlements by providing open spaces, roads, alleys and sidewalks as may be deemed suitable to enhance the quality of life of the residents therein; WHEREAS, such open spaces, roads, alleys and sidewalks in residential subdivision are for public
PD 1216 Minimum allotment for open spaces: a. subdivision projects one (1) hectare or more, (30%) of the gross area allocated exclusively for parks, playgrounds and recreational use with the following standards: (a) 9% of gross area for high density or social housing (66 to 100 Laws passed before EO 648. Page | 35
use and are, therefore, beyond the commerce of men; WHEREAS, pursuant to Presidential Decree No. 953 at least thirty percent (30%) of the total area of a subdivision must be reserved, developed and maintained as open space for parks and recreational areas, the cost of which will ultimately be borne by the lot buyers which thereby increase the acquisition price of subdivision lots beyond the reach of the common mass; WHEREAS, thirty percent (30%) required open space can be reduced to a level that will make the subdivision industry viable and the price of residential lots within the means of the low income group and at the same time preserve the environmental and ecological balance through rational control of land use and proper design of space and facilities; WHEREAS, pursuant to Presidential Decree No. 757, government efforts in housing, including resources, functions and activities to maximize results have been concentrated into one single agency, namely, the National Housing Authority; NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution, do hereby order and decree: Section 1. For purposes of this Decree, the term "open space" shall mean an area reserved exclusively for parks, playgrounds, recreational uses, schools, roads, places of worship, hospitals, health centers, barangay centers and other similar facilities and amenities. Section 2. Section 31 of Presidential Decree No. 957 is hereby amended to read as follows: "Sec. 31. Roads, Alleys, Sidewalks and Open spaces. The owner as developer of a subdivision shall provide adequate roads, alleys and sidewalks. For subdivision projects one (1) hectare or more, the owner or developer shall reserve thirty percent (30%) of the gross area for open space. such open space shall have the following standards allocated exclusively for parks, playgrounds and recreational use: (a) 9% of gross area for high density or social housing (66 to 100 family lot per gross hectare). (b) 7% of gross area for medium-density or economic housing (21 to 65 family lot per gross hectare). (c) 3.5 % of gross area low-density or open market housing (20 family lots and below per gross hectare).
family lot per gross hectare). (b) 7% of gross area for medium-density or economic housing (21 to 65 family lot per gross hectare). (c) 3.5 % of gross area low-density or open market housing (20 family lots and below per gross hectare). Reserved areas shall be non-alienable public lands, and non-buildable. Tree planting shall be included in the plan. Upon completion as certified to by the Authority, these shall be donated to the city or municipality and it shall be mandatory for the local governments to accept provided Parks and playgrounds may be donated to the Homeowners Association of the project with the municipality or citys consent. No portion of the parks and playgrounds donated thereafter shall be converted to any other purpose or purposes.
These areas reserved for parks, playgrounds and recreational use shall be non-alienable public lands, and non-buildable. The plans of the subdivision project shall include tree planting on such parts of the subdivision as may be designated by the Authority. Upon their completion as certified to by the Authority, the roads, alleys, sidewalks and playgrounds shall be donated by the owner or developer to the city or municipality and it shall be mandatory for the local governments to accept provided, however, that the parks and playgrounds may be donated to the Homeowners Association of the project with the consent of the city or municipality concerned. No portion of the parks and playgrounds donated thereafter shall be converted to any other purpose or purposes. Section 3. Sections 2 and 5 of Presidential Decree No. 953 are hereby repealed and other laws, decrees, executive orders, institutions, rules and regulations or parts thereof inconsistent with these provisions are also repealed or amended accordingly. Section 4. This Decree shall take effect immediately. DONE in the City of Manila, this 14th day of October, in the year of Our Lord, nineteen hundred and seventy-seven.
PRESIDENTIAL DECREE No. 1396 CREATING THE DEPARTMENT OF HUMAN SETTLEMENTS AND THE HUMAN SETTLEMENT DEVELOPMENT CORPORATION, APPROPRIATION FUNDS THEREFOR, AND ACCORDINGLY AMENDING CERTAIN PRESIDENTIAL DECREES. WHEREAS, man and his community require the fulfillment of the following basic needs and requirements such as water, power, food, clothing, shelter, medical services, education, sports and recreation, economic base (livelihood), mobility and ecological balance embodied in a humanistic ideology for the realization of a New Society; WHEREAS, it is the national policy to attain the fruits of social and economic development in our communities within the integrative framework of human settlements; WHEREAS, it is imperative that our development activities promote and enhance a wholesome relationship between beings and their civic and physical environment; WHEREAS, while the government has already addressed the problems of rural poverty and
PD 1396 Creation of the Department of Human Settlements- headed by a Secretary who shall serve as ex-officio Chairman of each of the governing boards of the corporation, commissions, and authorities placed under the supervision of the Department. National Capital Region is established and to be administered by the Secretary of Human Settlements Functions of the Department (a) Promulgate national standards and guidelines for human Laws passed before EO 648. Page | 37
stagnation by adopting and implementing a massive countryside development program, a proper development perspective requires equal concern for the management of urban development; WHEREAS, it is necessary to organize the government's policies and programs along these new areas of concern by establishing an appropriate department and delineating its relationships with the various agencies involved with its functions; WHEREAS, it is also national policy to promote innovative land development and community development controls as a technology for building communities and estates in new areas, or renewing communities in depressed or blighted areas; and WHEREAS, the physical planning, development and management of new communities and estates, or of old communities and blighted areas can best be accomplished through the creation and operation of an adequate corporate arm for the new Department. NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution, do hereby order and decree the following as part of the law of the land. Section 1. Declaration of Policy. It is hereby declared to be the policy of the government to foster the growth, and renewal of our communities, both rural and urban, in an integrative manner that promotes optimum land use, adequate shelter, environment protection, utilization of appropriate technology and rational interdependence amongst self-reliant communities, all these towards the fullest development of man as a civic person and as a human being, involving in this process the coordinated contribution of the public and private sectors. Section 2. Creation of the Department of Human Settlements. In order to carry out the above stated policy, there is hereby established the Department of Human Settlements, hereinafter referred to as the Department. The Department shall be headed by a Secretary. For purposes of coordination, the Secretary shall serve ex-officio as Chairman of each of the governing boards of the corporation, commissions, and authorities which are placed under the supervision of the Department. The Secretary shall be assisted by one Undersecretary, unless otherwise determined by the President. Section 3. Establishment of the National Capital Region. In view of the critical importance of the Metropolitan Manila Region in human settlements development, it is hereby declared and established as the National Capital Region of the Republic of the Philippines, and its administration
settlements which shall govern land use plans and zoning ordinances of local governments, civil works and infrastructure programs (b) Promulgate national standards and guidelines for environmental management and develop an environmental impact assessment system for the operationalization of said standards and guidelines; (c) In coordination with appropriate agencies, effect a single regulatory system relative to subdivision, zoning (including architectural design), building, fire and related regulations; (d) Prepare and submit to the NEDA a Nntional multi-year Human Settlements Plan which shall translate the Philippine Development Plan into spatial and temporal terms, based on the locational distribution of national resource endowments (including energy), population, climate, and production capacity; (e) Formulate plans and programs and implement and regulate, projects for: i. Urban renewal and development ii. Estate or New Town development within Bagong Lipunan sites. iii. Land assembly and real property management iv. Development and installation on a community scale of waste management systems (g) Enter into necessary and reasonable contracts; (h) Receive, take and hold by bequest, devise, gift, purchase or lease, Laws passed before EO 648. Page | 38
as such is hereby vested in the Secretary of Human Settlements. The pertinent provisions of Presidential Decree No. 824, creating the Metropolitan Manila Commission, are hereby accordingly amended. Section 4. Powers and Functions of the Department. The Department shall have the following powers and functions which it shall undertake by itself or through the corporations, commissions and authorities which are placed under its supervision. (a) Promulgate national standards and guidelines for human settlements which shall govern land use plans and zoning ordinances of local governments, civil works and infrastructure programs and projects of the National Government, and subdivisions or estate development projects of both the public and private sectors; (b) Promulgate national standards and guidelines for environmental management relative to air quality, water quality, land use and waste management which shall govern development programs and projects and other activities in settled communities, urban or rural, as well as in those areas immediately contiguous thereto and develop an environmental impact assessment system for the operationalization of said standards and guidelines; (c) In coordination with appropriate agencies, effect a single regulatory system relative to subdivision, zoning (including architectural design), building, fire and related regulations; (d) Prepare and submit to the Board of the National Economic and Development Authority a National multi-year Human Settlements Plan which shall translate the Philippine Development Plan into spatial and temporal terms, based on the locational distribution of national resource endowments (including energy), population, climate, and production capacity; (e) Formulate plans and programs and implement, either on its own initiative and operational responsibility or through the agencies or corporations placed under its supervision, projects for; i. Urban renewal and development, including but not limited to the construction and management of social and economic housing ii. Estate or New Town development within sites designated by the Office of the President as Bagong Lipunan sites. iii. Land assembly and real property management
convey, invest and reinvest any asset, grant or property, real or personal, to best promote its public welfare objectives; (i) Develop and maintain in conjunction with cooperating agencies a responsive and effective information system for its various activities, programs and/or projects; (j) Determine, fix and collect reasonable amount for the effective implementation of all the laws and other legal issuances; (k) Supervise all corporations placed under the Department; (l) Call government and private entities and organizations for cooperation and assistance in the performance of its functions. (m) Adopt rules and regulations for the transaction of its business; and (n) Perform such other necessary functions (o) Exercise power of eminent domain Creation of the Human Settlements Development Corporation- a corporate arm of the Department for urban renewal, New Town and estate development in Bagong Lipunan sites and real property management. Shall be under the supervision of the Department
Purposes of the Corporation. The purposes of the Corporation shall be as follows: (a) The development of new economically viable and environmentally Laws passed before EO 648. Page | 39
iv. Development and installation on a community scale of waste management systems and so appropriate technologies. (f) Promulgate appropriate rules and regulations which shall have regulatory force for the enforcement of its standards and guidelines; (g) Enter into contracts, either domestic or foreign, under such terms and conditions as it may deem necessary and reasonable; (h) Receive, take and hold by bequest, devise, 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 in existing laws and regulations; and to convey such assets, grants or property; invest and reinvest the same under this provision and deal with an expand its assets and income in such manner as will best promote its public welfare objectives; (i) Develop and maintain in conjunction with cooperating agencies a responsive and effective information system through the establishment of a data bank to support the department at various levels in the planning, monitoring, execution, coordination and control of its various activities, programs and/or projects; (j) Determine, fix and collect reasonable amounts to be charged as filing fees, inspection fees and other administrative or service fees necessary for the effective implementation of all the laws, Presidential Decrees and other legal issuances enforced by the Department; (k) Supervise all corporations placed under the Department; (l) Call on any department, bureau, office, agency or instrumentality of the government and private entities and organizations for cooperation and assistance in the performance of its functions. (m) Adopt rules and regulations for the transaction of its business; and (n) Perform such other activities which are necessary for the effective performance of the abovementioned functions and objectives. Section 5. Creation of the Human Settlements Development Corporation. In order to provide an adequate corporate arm for the Department, especially in the discharge of its functions relative to urban renewal, New Town and estate development in Bagong Lipunan sites and real property management, there is hereby created the Human Settlements Development Corporation. The Corporation shall be subject to the supervision of the Department.
sound communities (b) The renewal of urban communities or parts thereof, through housing and other urban improvement projects. - Shall be undertaken or implemented generally, but not exclusively, on land parcels or tracts which have been designated as Bagong Lipunan sites Powers and Functions of the Corporation. The Corporation shall have the following powers and functions: (a) Prepare and implement project plans for Bagong Lipunan site -covering Antipolo, San Mateo and Montalban and Rizal Province (b) Administer, operate and/or manage estates or New Town projects on Bagong Lipunan sites (c) Provide or operate utilities services in Bagong Lipunan project sites (d) Exercise real property management; (e) Engage in the transfer of property rights of land within designated Bagong Lipunan project sites (f) Construct, or cause to be constructed, acquire, own, lease, operate and maintain infrastructure facilities, housing units, factory buildings, utilities and services necessary or useful in the development of pilot communities Laws passed before EO 648. Page | 40
Section 6. Purposes of the Corporation. The purposes of the Corporation shall be as follows: (a) The development of new communities that are economically viable and environmental sound, through innovative urban land mechanisms and self-financing arrangements; (b) The renewal of urban communities or parts thereof, through housing and other urban improvement projects. The abovementioned development and/or renewal activities of the Corporation shall be undertaken or implemented generally, but not exclusively, on land parcels or tracts which have designated as Bagong Lipunan sites by the Office of the President. Section 7. Powers and Functions of the Corporation. The Corporation shall have the following powers and functions: (a) Prepare and implement development and/or renewal project plans for Bagong Lipunan site. The Corporation shall have as its initial project the Lungsod Silangan Townsites consisting of 20,313 hectares in the Municipalities of Antipolo, San Mateo and Montalban, Province of Rizal and the parcel of land consisting of 160,410 hectares embraced and covered by Proclamation Nos. 1636 and 1637 with boundaries delineated in Proclamation No. 1637 which are hereby declared as Bagong Lipunan sites; (b) Administer, operate and/or manage estates or New Town projects on Bagong Lipunan sites either exclusively through subsidiary corporations or in associations with other government (including local governments) or private entities; (c) Provide or operate utilities services in Bagong Lipunan project sites, in accordance with law; (d) Acquire, purchase, clear, alter construct, enlarge, occupy, mortgage, manage and dispose by lease or sale or otherwise deal in lands and building of every kind and character, whether belonging to or to be acquired by the Corporation; exercise the right of pre-emption, either by agreement or by expropriation; and in general, engage in real property management; (e) Engage in the transfer of property rights of land within designated Bagong Lipunan project sites, when deemed necessary, such that the land is exchanged for one of similar value; Provided, that no land acquired by the Corporation through eminent domain as provided for in Section 13 of this Decree shall be said or the title thereof disposed. (f) Construct, or cause to be constructed, acquire, own, lease, operate and maintain infrastructure facilities, housing units, factory buildings, utilities and services necessary or useful in the
(g) Fix, assess and collect charges and fees for the issuance of permits and licenses and charge rentals on facilities owned and administered by the Corporation Develop equitable formula for sharing the proceeds thereof with the local governments or other government agencies concerned (h) Recommend to the President the transfer to the Corporation of all foreclosed properties held by government agencies located within Bagong Lipunan and prototype project areas; (i) Issue bonds or contract loans, credits or indebtedness, domestic or foreign, whenever necessary; - No part of the proceeds of domestic and/or foreign borrowings shall be used for operating expenses of the Corporation - Debt instruments are tax-free (j) Prescribe its by-laws; adopt, alter and use a corporate seal; perform any and all acts and things that may be necessary or proper to carry out the purposes of this Decree. Composition of Corporation 1. Secretary of the Department of Human Settlements as Chairman; 2. Chairman of the Development Bank of the Philippines 3. Governor of the Central Bank of the Philippines 4. Secretary of the Department of Local Government and Community Laws passed before EO 648. Page | 41
development of pilot communities; (g) Fix, assess and collect charges and fees, including rentals for the lease, use or occupancy of lands, buildings, structures, and all the facilities owned and administered by the Corporation; to fix and collect fees and charges for the issuance of permits, licenses and the rendering of services not enumerated herein, the provisions of law to the contrary notwithstanding, Provided, that an equitable formula for sharing the proceeds thereof with the local governments or other government agencies concerned shall be developed and shall be in effect upon approval by the President; (h) Recommend to the President the transfer to the Corporation of all foreclosed properties held by government agencies located within Bagong Lipunan and prototype project areas; (i) When essential to the proper administration of its corporate affairs or when necessary for the proper transaction of its business or for carrying out the purposes of this Decree, to issue bonds or contract loans, credits or indebtedness, domestic or foreign, the payment of which shall be guaranteed by the government through the President of the Philippines or his duly authorized representative; and (j) Prescribe its by-laws; adopt, alter and use a corporate seal which shall be judicially noticed; make contracts, lease, own or otherwise dispose of personal and real property; sue and be sued, and otherwise do and perform any and all acts and things that may be necessary or proper to carry out the purposes of this Decree. Section 8. Governing Body of the Corporations. The Corporation shall be governed by a Board of Directors, composed of seven (7) members, as follows: 1. Secretary of the Department of Human Settlements as Chairman; 2. Chairman of the Development Bank of the Philippines 3. Governor of the Central Bank of the Philippines 4. Secretary of the Department of Local Government and Community Development 5. Secretary of the Department of Public Works, Transportation and Communications 6. Secretary of the Department of Industry The Chief Executive of the Corporation shall be a General Manager which shall be appointed by the
Development 5. Secretary of the Department of Public Works, Transportation and Communications 6. Secretary of the Department of Industry The Chief Executive of the Corporation shall be a General Manager which shall be appointed by the Board. Sinking fund - for the payment of the Corporation's bonds and shall be under the custody of the Central Bank of the Philippines Corporations, Authorities and Agencies Under the Supervision of the Department-for policy and program coordination and integration (a) National Housing Authority (b) National Home Mortgage Finance Corporation (c) Home Financing Commission (d) National Housing Corporation (e) Technology Resource Center (f) National Environmental Protection Council (g) National Pollution Control Commission (h) Human Settlements Commission Laws passed before EO 648. Page | 42
Board. Section 9. Appointment, Control and Discipline of Personnel. The Board, upon recommendation of the General Manager of the Corporation, shall appoint the officers, and employees of the Corporation and its subsidiaries; fix their compensation, allowances and benefits, their working hours and such other conditions of employment as it may deem proper; grant them leaves of absence under such regulations as it may promulgate; discipline and/or remove them for cause; and establish and maintain a recruitment and merit system for the Corporation and its affiliates and subsidiaries. Section 10. Capitalization of the Corporation. The Corporation shall have an authorized capital stock of Five Hundred Million Pesos (P500,000,000) divided into 500,000 shares with a par value of One Thousand Pesos (P1,000.00) per share to be subscribed and paid for by the Government of the Republic of the Philippines. For this purpose, an initial release of One Hundred Million Pesos (P100,000,000) is hereby authorized for CY 1978 chargeable against the Special Activities Fund of P.D. 1250. Additional capitalization in the nature of (a) properties as may be contributed to the Corporation by the government through further Presidential Proclamation designating Bagong Lipunan sites and other prototype project sites (b) all capitalize surplus and (c) contributions by government financial institutions are also hereby authorized. Section 11. Borrowing Power. With the prior approval of the Secretary of Finance, the Monetary Board and the President of the Philippines, the Corporation may borrow from foreign public or private financial institutions such amounts as may from time to time be required for its operations, or issue bonds promissory notes, debentures, certificates of indebtedness, and other debt instruments in foreign currency. Notwithstanding the provisions of any law to the contrary, the Central Bank is hereby authorized to extend loans and advances to the Corporation under Section 38 of Republic Act No. 265, as amended, otherwise known as the Central Bank Charter, subject to such terms and conditions as may be prescribed by the Monetary Board. No part of the proceeds of domestic and/or foreign borrowings shall be used for operating expenses of the Corporation. The bonds, promissory notes, debentures, certificates of indebtedness and other debt instruments issued in local or foreign currency shall be at such interest rates, maturities and other terms and conditions as the Corporation may determine. The debt instruments may be secured by the assets of the Corporation and shall be fully exempt, both as the principal and interest, from any and all taxes imposed by the government of any of its subdivision. The debt instruments shall be fully negotiable and shall be unconditionally guaranteed both as to principal and interest by the Government of the
The president may appoint an additional member each to the said Boards in order to keep the odd number for all the members. The Human Settlements Commission established pursuant to Presidential Decree No. 933 is hereby renamed as the Human Settlements Regulatory Commission
Republic of the Philippines, which guaranty shall be indicated on the face thereof. A sinking fund is hereby created for the payment of the Corporation's bonds issued under the provisions hereof in such manner that the total contribution thereto accrued at such rate of interest as may be determined by the Secretary of Finance in consultation with the Monetary Board shall be sufficient to redeem the bonds at maturity. The said fund shall be under the custody of the Central Bank of the Philippines which shall invest the same in such manner as the Monetary Board may approve; shall charge all expenses of such investment to the sinking fund and shall credit the same with the interest on investment and other incomes belonging to it. A standing annual appropriation is hereby made out of any general funds in the National Treasury in such amount as may be necessary to provide for the sinking fund created herein and for the interest on bonds issued by the Corporation by virtue hereof. Section 12. Profits of the Corporation. Profits which may be realized from the operations of the Corporation shall accrue to and be automatically appropriated as part of the corporate earnings of the Corporation, any provision of law to the contrary notwithstanding. Section 13. Eminent Domain. The Corporation shall have the power to acquire any property required for the establishment and expansion of Bagong Lipunan sites and facilities by purchase by negotiation or by expropriation proceedings. To promote maximum development of these areas, the properties acquired may thereafter be resold, or leased by the Corporation to any enterprise, private or government, under such terms and conditions as it may be impose, except those acquired through expropriation proceedings which cannot be resold or the title thereof disposed. Section 14. Corporations, Authorities and Agencies Under the Supervision of the Department. The following corporations, authorities and agencies are hereby placed under the supervision of the Department and their respective charters are correspondingly amended to the extent that the pertinent provisions thereof are inconsistent with the provisions of this Decree. The specific amendments to be affected in the respective charters of the affected corporations and authorities shall be provided for in the Letters of Implementation to be issued by the President to implement this Decree, which legal issuance shall form part of this Decree. (a) National Housing Authority (b) National Home Mortgage Finance Corporation (c) Home Financing Commission
(d) National Housing Corporation (e) Technology Resource Center (f) National Environmental Protection Council (g) National Pollution Control Commission (h) Human Settlements Commission The president shall, in the light of the provision of Section 2 of this Decree and, whenever necessary in order to maintain the odd number in the membership of the governing boards of the above corporations and commissions, appoint an additional member each to the said Boards. In the case of the Human Settlements Commission, in addition to the Undersecretary of Energy who shall be made an ex-officio member, a Deputy Chairman shall be appointed by the President. Section 15. Relationship Between the Department and the Supervised Agencies. The supervision of the government corporations and authorities listed in Section 14 shall be for the purpose of policy and program coordination and integration. The formulation and implementation of the policies, plans and projects of the attached agencies shall conform to the overall policies and plans of the Department. To give effect to the foregoing, a centralized administrative and management office known as the Corporate Planning Office is hereby created in the Department. Section 16. Regional Offices. There shall be established as many regional offices as are necessary and consistent with the requirements of economy and efficiency; Provided, That they are established in accordance with the regional pattern as described in Paragraph 1, Article I, Chapter III, Part II of the Integrated Reorganization Plan, as amended. The regional office shall be headed by a Regional Director who may be assisted whenever necessary, by one or more Assistant Regional Directors. Section 17. Counterpart Units and Sub-Regional Offices. The regional office shall have such counterpart units as may be necessary, corresponding to the major functional areas and responsibilities of the different corporations and agencies attached under it. The Department shall, within each region, establish such sub-regional offices as may be necessary for the accomplishment of its declared objectives and policies. Section 18. Conversion of the Human Settlements Commission. The Human Settlements
Commission established pursuant to Presidential Decree No. 933 is hereby renamed as the Human Settlements Regulatory Commission and shall accordingly be the regulatory arm of the Department. Section 19. Appointment of Department Personnel. The Department shall have an adequate personnel complement. Its officers and employees shall be appointed by the Secretary, except those whose appointments are vested by law in the President of the Philippines. The Office of Compensation and Position Classification, Budget Commission, shall consider professional and technical qualifications and competence in fixing the salaries of the corresponding personnel. Section 20. Appropriations. To carry out the purpose of this Decree, there is hereby appropriated out of any funds in the National Treasury not otherwise appropriated the sum of FIFTY MILLION PESOS (P50,000,000) for the operation of the Department and its regional offices. This shall be in addition to whatever applicable appropriations may be transferred to it from among the government agencies reorganized under this Decree. Thereafter, the appropriations for the Department and its regional offices shall be included in the National General Appropriations Act. The regional offices may likewise utilize the Local and the Regional Development Funds as may be necessary in the implementation of projects at the regional level. Section 21. Repealing Clause. All laws, decrees, executive orders, rules and regulations inconsistent herewith are hereby repealed, amended or modified accordingly. Section 22. Separability Clause. If for any reason, any section or provision of this Decree is declared to be unconstitutional or invalid, the other provisions hereof not affected shall continue in full force and affect. Section 23. Effectivity. This Decree shall take effect immediately. Done in the City of Manila, this 2nd day of June, in the year of Our Lord, nineteen hundred and seventy-eight.
PRESIDENTIAL DECREE No. 1517 PROCLAIMING URBAN LAND REFORM IN THE PHILIPPINES AND PROVIDING FOR THE IMPLEMENTING MACHINERY THEREOF WHEREAS, it is declared objective of the New Society to effect social, economic and political reforms attuned to the establishment of a secure national community and to an improved quality of life for all citizens and for all others who may sojourn our shores;
PD 1517 -Enacted to quell the rampant buying and selling of urban lands as commodities of trade subject to price speculation and indiscriminate use, and to manage/ administer said lands for public welfare. -Empowered the President to declare/ proclaim specific parcels of Laws passed before EO 648. Page | 46
WHEREAS, the quality of human life in our times is inescapably determined by the relationship among population, resources, the environment, and intelligent policies; WHEREAS, human settlement is an integrative concept embracing the interdependence of man's environment, human shelters and structures, and the design and organization of human communities consistent with a national framework plan, all for the people's security and well-being. WHEREAS, land is the ultimate platform of all man's activities, and the crucial factor in determining the shape of human settlements; WHEREAS, the basic law of the land explicitly provides for the regulation of the acquisition, ownership, use, enjoyment and disposition of private property and for the equitable diffusion of property ownership and profits which includes land and land resources; WHEREAS, the traditional concept of landownership has aggravated the problem arising from urbanization such as the proliferation of blighted areas and the worsening of the plight of the urban poor and has spawned valid and legitimate grievances in urban centers giving rise to social tension and violent conflicts; WHEREAS, a social reform objective of the New Society is to renew blighted areas, improve the conditions of the urban poor and resolve and redress legitimate grievances arising therefrom, while at the same providing incentives to progressive landowners and developers who wish to develop their lands in accordance with government plans and programs responsive to community welfare; NOW, THEREFORE, in the light of the above premises, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution, do hereby order and decree and make as part of the law of the land that: Section 1. Title. This Act shall be known as the Urban Land Reform Act. Section 2. Declaration of Policy. It is hereby declared to be the policy of the State a) to liberate our human communities from blight, congestion, and hazard and to promote their development and modernization; b) to bring out the optimum use of land as a national resource for public welfare rather than as a commodity of trade subject to price speculation and indiscriminate use; c) to provide equitable access and opportunity to the use and enjoyment of the fruits of the land; d) to acquire such lands as are necessary to prevent speculative buying of land for public welfare; and e) to maintain and support a vigorous private enterprise system responsive to community requirements in the use and development of urban lands. Section 3. Definitions. As used in this Decree, the following words and phrases shall have the
urban and urbanizable lands as Urban Land Reform Zones, and such ULRZs shall not be disposed of or constructed on unless such disposition of or construction thereon conforms with the development and zoning plans of the Ministry (Authority). -Defined the concept of Land Tenancy and established the rights of urban land tenants who had peaceful and undisturbed occupation on said urban lands. -Gives the Ministry (or Authority) pre-emptive rights over urban lands included in ULRZs, and the HSRC (now HLURB) shall govern the issuance of development permits pertaining to the use, alteration and construction thereon upon said urban lands. Criteria for classification as urban land: 1. In their entirety, all cities and municipalities which have the population density of at least 1,000 persons per square kilometer and where at least 50 percent of the economically active population are engaged in non-agricultural activities. 2. All barangays comprising the former poblacion or barangays including a part of the former poblacion of cities or municipalities which have a population density of greater than 500 but less than 1,000 persons per square kilometer; and where at least 50 percent of the economically active population engaged in non-agricultural activities. 3. All barangays not included in items 1 and 2 above which have a population size of at least 1,000 and where at least 50 percent of the economically active population are engaged in non-agricultural Laws passed before EO 648. Page | 47
following meanings and definitions: (a) Development Rights, also known as "new use rights", refers to the right to use and/or develop land and improvements thereon including putting them to a more intensive use, conversion to a more profitable use, increasing density and the like. (b) Land Assembly refers to the acquisition of lots varying ownership through, among others, expropriation or negotiated purchase, for the purpose of planning and development unrestricted by individual property boundaries. (c) Land Banking refers to the acquisition of land in advance of actual need for the purpose of acquiring lands at existing use value and disposing of them in a manner which would influence land price formation and promote planned development. (d) Land Exchange refers to the process of bartering land for another piece of land and/or shares of stock of equal value in a government or quasi-government corporation. (e) Joint Ventures refers to the commitment, for more than a limited duration, of funds, land resources, facilities and services by two or more legally separate interests, to an enterprise for their mutual benefit. (f) Tenant refers to the rightful occupant of land and its structures, but does not include those whose presence on the land is merely tolerated and without the benefit of contract, those who enter the land by force or deceit, or those whose possession is under litigation. (g) Urban lands refer to the lands which conform to any of the following criteria: 1. In their entirety, all cities and municipalities which have the population density of at least 1,000 persons per square kilometer and where at least 50 percent of the economically active population are engaged in non-agricultural activities. 2. All barangays comprising the former poblacion or barangays including a part of the former poblacion of cities or municipalities which have a population density of greater than 500 but less than 1,000 persons per square kilometer; and where at least 50 percent of the economically active population engaged in non-agricultural activities. 3. All barangays not included in items 1 and 2 above which have a population size of at least 1,000 and where at least 50 percent of the economically active population are engaged in non-agricultural
activities. Urbanizable lands - sites and land areas which, considering present characteristics and prevailing conditions, display a marked and high probability of becoming urban lands within the period of five to ten years. The law authorized the President to proclaim specific parcels of urban and urbanizable lands as Urban land Reform Zones. The Ministry of Human Settlements shall prepare the appropriate development and zoning plans, and formulate the enforcement and implementing guidelines No urban land can be disposed of or used or constructed on unless its disposition or use conforms with the development and zoning plans of the Ministry. Creation of an Urban Land Reform Coordinating Council composed of the Ministers of Human Settlements Agrarian Reform, Finance, Justice, Local Government and Community Development, Industry, National Resources, and the President of the Land Bank; with the Minister of Human Settlements as the Chairman.
activities. (h) Urbanizable lands refers to sites and land areas which, considering present characteristics and prevailing conditions, display a marked and high probability of becoming urban lands within the period of five to ten years. Section 4. Proclamation of Urban Land Reform Zones. The President shall proclaim specific parcels of urban and urbanizable lands as Urban land Reform Zones, otherwise known as Urban Zones for purposes of this Decree, which may include Bagong Lipunan Sites, as defined in P.D. 1396. Upon proclamation, the Ministry of Human Settlements, hereafter referred to as the Ministry, shall prepare the appropriate development and zoning plans, and formulate the enforcement and implementing guidelines which shall in force and effect upon approval by the President and shall be enforced by the Ministry or its attached agencies. No urban land can be disposed of or used or constructed on unless its disposition or use conforms with the development and zoning plans of the Ministry, and the approved enforcement and implementation guidelines in accordance with the Official Development Registry System and the Development Use Permit System provided for in Section 13 and 16 of this Decree. Section 5. Creation of an Urban Land Reform Coordinating Council. An interagency body, to be known as the Urban Land Reform Coordinating Council hereinafter referred to as the Coordinating Council, is hereby constituted. It shall be composed of the Ministers of Human Settlements Agrarian Reform, Finance, Justice, Local Government and Community Development, Industry, National Resources, and the President of the Land Bank; with the Minister of Human Settlements as the Chairman. The Ministry, in conjunction with the Coordinating Council, shall formulate the general policies and guidelines for the Urban Land Reform Program and its rules and regulations, which shall come into force and effect upon the approval of the President. Section 6. Land Tenancy in Urban Land Reform Areas. Within the Urban Zones legitimate tenants who have resided on the land for ten years or more who have built their homes on the land and residents who have legally occupied the lands by contract, continuously for the last ten years shall not be dispossessed of the land and shall be allowed the right of first refusal to purchase the same within a reasonable time and at reasonable prices, under terms and conditions to be determined by the Urban Zone Expropriation and Land Management Committee created by Section 8 of this Decree.
Section 7. Acquisition of Residential Lands for Existing Tenants and Residents. In cases where the tenants and residents, referred to in Section 6 of this Decree, are unable to purchase the said lands, the Government shall acquire the land and/or improvements thereon by expropriation or other land acquisition technique provided for under Section 11 of this Decree. In case of expropriation the Government shall acquire said lands in accordance with the policies of existing law especially Presidential Decree No. 76 as amended by paragraph 3 of Presidential Decree No. 1224 and Section 1 of Presidential Decree No. 1313 as herein amended. Upon the filing of the petition for expropriation and the deposit in the Philippine National Bank at its main office or any of its branches of the amount equivalent to ten per cent (10%) of the declared assessment value in 1975, the Government, or its authorized agency or entity shall immediately have possession, control and disposition of the real property and the improvements thereon with the power of demolition, if necessary, even pending resolution of the issues that may be raised whether before the Court of First Instance, Court of Agrarian Relations, or the higher Courts. Section 8. Creation of Urban Zone Expropriation and Land Management Committee. For the purpose of expropriating lands as provided under Section 7, the Ministry is hereby vested with the power of eminent domain. To assist the Ministry in the exercise of this power, an Urban Zone Expropriation and Land Management Committee, hereinafter referred to as the Committee, shall be created in the city, town or locality or within the Urban Zone, to be composed of members from the relevant government and private sectors designated by the Minister of Human Settlements, with the authorized representative of the Ministry serving as the Chairman. The Committee shall in addition to the above mentioned function, formulate programs and projects specific to the Urban Zones, specifying among others, the operative procedure for land acquisition and its phasing, and shall recommend to the Coordinating Council the appropriate made of disposition and other related aspects of land management. Section 9. Compulsory Declaration of Sale and Pre-emptive Rights. Upon the proclamation by the President of an area as an Urban Land Reform Zone, all landowners tenants and residents thereupon are required to declare to the Ministry any proposal to sell, lease or encumber lands and improvements thereon, including the proposed price, rent or value of encumbrances and secure approval of said proposed transaction. The Ministry shall have the pre-emptive right to acquire the above mentioned lands and improvements thereon which shall include, but shall not be limited to lands occupied by tenants as
provided for in Section 6 of this Decree. Section 10. Innovative Land Acquisition Techniques. The Ministry and/or its appropriate attached agency is hereby authorized to utilize any innovative land acquisition techniques as an alternative to land purchase and expropriation for the purpose of acquiring lands within the proclaimed ULRZS and/or Bagong Lipunan sites, including land assembly, land banking, land exchange land consolidation and readjustment and joint venture arrangements. Section 11. Land Valuation. The Ministry of Finance shall develop and utilize new valuation techniques and assessment classification levels appropriate to the innovative acquisition techniques and tax system provided for in this Decree. Section 12. Official Development Registry. To provide the basis for decisions of the Ministry with regard to land acquisition, exercise of pre-emptive rights under Section 9 of this Decree and disposition of lands, and to regulate transactions affecting land, the Ministry, through the Human Settlements Regulatory Commission, shall undertake on a continuing basis in every proclaimed Urban Zone, registration of existing land rights and interests, and development proposals of public and private entities through the establishment of an Official Development Registry. The Registry shall contain, among others, information on detailed boundaries, of lands, titles to said lands and intent to acquire and/or develop specific parcels of land, which information shall be furnished by the holders of land rights and interested developers. Section 13. Role of the Bureau of Lands and the Land Registration Commission. The Bureau of Lands and the Land Registration Commission shall provide the Ministry with the cadastral maps and other information entered into the Development Registry. The Land Registration Commission, shall prior to registration of any transactions affecting properties in the Urban Zones, first secure clearance from the Ministry. Section 14. Land Disposition. The Government shall adopt, as a general policy, a combination of land disposition techniques within the Urban Land Reform Zones. The Ministry is hereby authorized to utilize innovative land disposition techniques in Urban Zones and/or Bagong Lipunan sites, including neighborhood ownership, residential freeholds subject to improvement conditions and the reservation of development rights, and tenure in improvements separate from tenure in land. For this purpose, the Human Settlements Development Corporation create under P.D. 1396 as the corporate arm of the Ministry shall, notwithstanding the prohibition contained in Section 7(e) of P.D. 1396 be authorized to dispose of lands in any of them manner
provided for in this Section. The Ministry, in consultation with the Coordinating Council, shall determine the appropriate land disposition schemes for each Urban Zones. Section 15. Development Use Permit System for Urban Land Reform Areas. A comprehensive development use permit system is hereby established in proclaimed Urban Zones and/or Bagong Lipunan sites which shall govern the development of lands within said areas. Under this system, no development of lands, including its use, alteration and construction thereon shall take place without the corresponding Development Use Permit being issued by the Ministry, through the Human Settlements Regulatory Commission. Section 16. Taxation. Within designated Urban Zones and/or Bagong Lipunan sites, the government shall implement a taxation system in support of the basic policies underlying the urban land reform program. For these purpose, the Ministry of Natural Resources and the Ministry of Finance shall conduct an inventory, assessment of idle lands throughout the Philippines, with priority given to Urban Zones. Section 17. Land Development Financing. To ensure and encourage private participation in land development and management activities the Ministry, with the appropriate public and private agencies, shall develop and recommend for the President's approval appropriate programs which shall mobilize land development funds from private individual group sources, government financial institution, joint public-private ventures, and private financial institutions. Section 18. Land Development Accounting. The Ministry shall, where deemed necessary, institute a Land Development Accounting System for Urban Zones and designated Bagong Lipunan sites, which shall constitute a record of market transactions and revenues related to Government land acquisition, development and management activities. Section 19. Public Hearings. The Ministry through the Human Settlements Regulatory Commission shall, upon proclamation of Urban Zones, conduct public hearings in order to allow the persons affected by said proclamation and related acts, to present their views grievances and recommendations to the Ministry. Section 20. Administrative Fines. Any violation of any provisions of this Decree or any of the rules or regulations issued thereunder shall be subject to the fines not exceeding ten thousand pesos (P10,000) to be imposed by the Ministry through the Human Settlements Regulatory Commission.
Section 21. Penal Provisions. Any person, firm or corporation who shall violate the provisions of this Decree and/or any rules or regulations issued thereunder shall, upon conviction, be punished by a fine of not more than twenty thousand pesos (P20,000) and/or imprisonment of not more than ten years or both at the discretion of the court, Provided that in the case of a corporation, firm, partnership, or association, the penalty shall be imposed upon its officials for such violation, and in case the guilty party is an alien, he shall immediately be deported after payment of the fine and serving the imprisonment. Provided further, that every day that the violation shall be carried on or permitted to be carried on shall be considered as a separate offense. Section 22. Repealing Clause. All laws, decrees, executive orders, rules and regulations inconsistent herewith are hereby repealed, amended or modified accordingly. Section 23. Separability Clause. If, for any reasons, any section or provision of the Decree is hereby declared to be unconstitutional or invalid, the other provisions hereof not affected shall continue in full force and effect. Section 24. Effectivity. This Decree shall take effect immediately. Done in the City of Manila, this 11th day of June, in the year of Our Lord, nineteen hundred and seventy-eight.
LETTER OF INSTRUCTIONS NO. 729
LOI 729 Directed that the Ministry of Settlements:
To: All Agencies Concerned WHEREAS, it is the national policy to attain the fruits of social and economic development in our communities within the integrative framework of human settlements; WHEREAS, the Ministry of Human Settlements was created to ensure that development activities promote and enhance a whole relationship between human beings and their civil and physical environment; WHEREAS, the National Coordinating Council for Town Planning, Housing and Zoning (NCCTPHZ) was conceived as a facilitating mechanism for updating,harmonizing and
1. prepare a land use plan and zoning implementation and enforcement guidelines for urban and urbanizable areas 2. translate approved land use plans and zoning implementing guidelines into official Zoning Maps . 3. publish the official Zoning Maps drawn on an appropriate Laws passed before EO 648. Page | 53
synchronizing development activities in major urban and urbanizable areas; WHEREAS, the NCCTPHZ has undertaken preparation of one hundred seventy-five town plans which are being translated by the Ministry of Human Settlements into zoning ordinances; WHEREAS, there is need to consolidate and sustain the gains made under the Pamayanang Pilipino sa Bagong Lipunan by way of strengthened local planning capabilities and institutionalization of the local planning process; It is hereby directed that: 1. The Ministry of Human Settlements shall prepare or cause to be prepared land use plans and zoning implementation and enforcement guidelines for urban and urbanizable areas, which shall be submitted for the President-Prime Minister's approval. 2. Local governments are required to submit their existing land use plans, zoning ordinances, enforcement systems and procedures to the Ministry for review and ratification. All other communities without land use plans and zoning implementing guidelines shall prepare said guidelines, and may call upon the Ministry of Human Settlements for planning assistance. 3. The Ministry of Human Settlements shall cause the translation of approved land use plans and zoning implementing guidelines into official Zoning Maps, drawn on a scale of 1:10,000 which shall be printed and posted in municipal halls and other conspicuous places, and shall bear the seal of the Human Settlements Regulatory Commission. The Ministry shall also publish the official Zoning Maps drawn on an appropriate scale in a newspaper of general circulation. 4. The approved land use plans and implementing guidelines shall be officially implemented through the issuance by the Ministry of Development Permits. The Development Permits shall be issued relative to subdivision, zoning (including architectural design), building, fire and related regulations. a. Development Proposals which shall include land use conversion, shall be submitted to the Ministry for approval. Upon receipt of a Development Proposal, the Ministry or its designate shall determine its conformance with approved zoning implementing guidelines, and may specify appropriate planning conditions. The Ministry may call for a public hearing on the development proposals, if it deems necessary. b. Development projects of public agencies shall be submitted to the Ministry of Human Settlements for the issuance of Locational Clearance Permit.
scale in a newspaper of general circulation 4. Issue Development Permits 5. Publish Official Zoning maps in a newspaper of general circulation 6. appoint and/or deputize Zoning Administrators who will issue Development Permits/Locational Clearance Permits in coordination with the Ministry of Local Government and Community Development. 7. recommend to the President the approval of land use and zoning implementing guidelines, land resource management mechanisms and techniques of Urban Land Reform Zones and Bagong Lipunan sites Local governments are required to submit their existing land use plans, zoning ordinances, enforcement systems and procedures to the Ministry for review and ratification. All national and local government agencies affected by the establishment of a single regulatory system shall assist the Ministry of Human Settlements in the development of appropriate enforcement systems and procedures. All specialized agencies implementing their own land use and zoning regulations shall submit their land use and zoning regulations, and enforcement systems and procedures to the Ministry of Human Settlements. All national and local government agencies affected by the establishment of a single regulatory system shall assist the Ministry of Laws passed before EO 648. Page | 54
c. The Ministry, through appropriate agency, shall issue a Development Permit/Locational Clearance Permit upon its approval of the draft development scheme and confirmation of planning conditions. d. For this purpose, the Ministry shall appoint and/or deputize Zoning Administrators who will issue Development Permits/Locational Clearance Permits in coordination with the Ministry of Local Government and Community Development. 5. All specialized agencies implementing their own land use and zoning regulations shall submit their land use and zoning regulations, and enforcement systems and procedures to the Ministry of Human Settlements. 6. All national and local government agencies affected by the establishment of a single regulatory system shall assist the Ministry of Human Settlements in the development of appropriate enforcement systems and procedures. 7. For special or critical areas such as designated Urban Land Reform Zones and Bagong Lipunan sites, the Ministry of Human Settlements shall recommend for the President's approval appropriate land use and zoning implementing guidelines, land resource management mechanisms and techniques such as joint ventures, expropriation and land readjustment. To ensure that the land use plans and zoning guidelines are reflective of community interests and development capabilities, all public agencies, as well as private interests, shall be required by the Ministry to submit Development Proposals for projects within the proclaimed zone. Said proposals shall be entered into an official Development Registry for the area. This letter of instruction shall take effect immediately. Done in the City of Manila, this 9th day of August, in the year of Our Lord, nineteen hundred and seventy-eight.
Human Settlements in the development of appropriate enforcement systems and procedures. All public and private agencies affected shall be required by the Ministry to submit Development Proposals for projects within the Urban Land Reform Zones and Bagong Lipunan sites.
LETTER OF INSTRUCTIONS NO. 833 TO : The Director Bureau of Mines, Manila
LOI 833
In order to attain the purposes and objective of the Government as envisioned in Proclamations Nos. 1636 and 1637, you are hereby directed to suspend: 1) The registration of mining claims covering areas described in and embraced by the above-
The Director of the Bureau of Mines was ordered to suspend the following for areas described in and embraced in Proc. Nos. 1636
mentioned
Proclamations;
and 1637; 1. registration of mining claims covering areas registration of mining claims 2. Receiving/accepting applications for Quarry Permit/License, applications for guano permits, and applications for Industrial, Commercial, Foreshore and Gratuitous Permits; and 3. Mining and other allied/related activities quarry, sand and gravel operations unless cleared by the Ministry of Human Settlements
2) The processing of all applications for mining rights filed pursuant to Presidential Nos. 412 and 463 and the sand and gravel regulations within the aforesaid areas; 3) Receiving/accepting applications for Quarry Permit/License, applications for guano permits, and applications for Industrial, Commercial, Foreshore and Gratuitous Permits; and 4) Mining and other allied/related activities quarry operations as well as sand and gravel operations within the areas above-mentioned unless cleared by the Ministry of Human Settlements upon consultation with the Bureau of Mines. Done in the City of Manila, this 23rd day of March, in the year of Our Lord, nineteen hundred and seventy-nine.

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REPUBLIC ACT NO.

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except in cases of hereditary succession. Incidents of a condominium grants:

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programs, as well as monitor the implementation of the same.

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PRESIDENTIAL DECREE No. 957 July 12, 1976

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LETTER OF INSTRUCTIONS NO. 729

LOI 729 Directed that the Ministry of Settlements:

LETTER OF INSTRUCTIONS NO. 833 TO : The Director Bureau of Mines, Manila

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