THE IMPLEMENTING RULES AND REGULATIONS OF

REPUBLIC ACT NO. 11201, OTHERWISE KNOWN AS

THE “DEPARTMENT OF HUMAN SETLEMENTS
AND URBAN DEVELOPMENT ACT”

Pursuant to Section 29 of Republic Act No. 11201, otherwise known as the

"Department of Human Settlements and Urban Development Act," the following
rules and regulations are hereby adopted and promulgated:

RULE I
GENERAL PROVISIONS

SECTION 1. Title and Purpose. — These rules and regulations shall be known as the
"Implementing Rules and Regulations of the Department of Human Settlements and
Urban Development Act", and shall be referred to as the “Rules”. This Rules shall
operationalize the provisions of Republic Act (RA) No. 11201, referred to in this Rules
as the “Act”, and provide the regulations, guidelines and procedures that shall
govern the operations of the Department of Human Settlements and Urban
Development, herein referred to as the “Department”, and the Human Settlements
Adjudication Commission, herein referred to as the “Commission.”

SECTION 2. Declaration of Policy. — The State shall, pursuant to Section 9, Article

XIII of the Constitution, ensure that underprivileged and homeless citizens have
access to an adequate, safe, secure, habitable, sustainable, resilient and affordable
home.

The State shall, by law and for the common good, undertake, in cooperation with the
private sector, a continuing program of housing and urban development which shall
make available at affordable cost, decent housing and basic services to
underprivileged and homeless citizens in urban centers and resettlement areas. It
shall also promote adequate employment opportunities to such citizens. In the
implementation of the program, the State shall respect the rights of small property
owners.

The State shall pursue the realization of a modern, humane, economically-viable, and
environmentally-sustainable society where the urbanization process is manifest in
towns and cities being centers of productive economic activity and is led by market
forces; where urban areas have affordable housing, sustainable physical and social
infrastructure and services facilitated under a democratic and decentralized system
of governance; and where urban areas provide the opportunities for an improved
quality of life and the eradication of poverty.

The State shall ensure that poor dwellers in urban and rural areas shall not be evicted
nor their dwelling demolished, except in accordance with law.

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In addition, the State shall encourage on-site development in the implementation of
housing programs and shall promote the creation of new settlements and
development of sustainable urban renewal programs while guaranteeing the
preservation of agricultural lands necessary for food security.

SECTION 3. Definition of Terms. — For purposes of this Rules, the following terms
or words shall mean or be understood as follows:

3.1 “Affordable Cost” refers to the most reasonable price of land and shelter based
on the needs and financial capability of program beneficiaries and appropriate
financing schemes;

3.2 “Agricultural Lands” refers to lands devoted to or suitable for the cultivation
of the soil, planting of crops, growing of trees, raising of livestock, poultry,
fish or aquaculture production, including the harvesting of such farm
products, and other farm activities and practices performed in conjunction
with such farming operations by persons whether natural or juridical and not
classified by law as mineral land, forest land, residential land, commercial
land, or industrial land as defined in RA8435, otherwise known as the
“Agriculture and Fisheries Modernization Act”;

3.3 “Abandoned Subdivision or Condominium” refers to a project whose

development has not been completed in accordance with the approved
development plan despite the lapse of at least ten (10) years from the target
date of completion and it appears that the project owner or developer has no
intention to complete the project development or, despite diligent effort for at
least the last five (5) years, the project owner or developer cannot be located;

3.4 “Community Development” refers to the process of empowering

communities, particularly housing development beneficiaries, through social
preparation and participatory planning, development and implementation of
programs, projects and activities that will enable the community to be self-
reliant and attain a better quality of life;

3.5 “Community Mortgage Program” refers to a mortgage financing program of

the Social Housing Finance Corporation which assists legally organized
associations of underprivileged and homeless citizens to purchase and
develop a tract of land under the concept of community ownership;

3.6 “Comprehensive Land Use Plan” (CLUP) refers to the document, formulated
by the local government in consultation with its stakeholders, that defines or
provides guidelines on the allocation, utilization, development and
management of all lands, within a given territory or jurisdiction, including
municipal waters, according to the inherent qualities of the land itself and
supportive economic, demographic, socio-cultural and environmental
objectives;

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3.7 “Condominium Project” refers to the entire parcel of real property divided or
to be divided primarily for residential purposes into condominium units,
including all structures thereon, which complies with the requirements and
standards provided under Presidential Decree No.(PD) 957, otherwise known
as the “Subdivision and Condominium Buyers’ Protective Decree”, and its
implementing rules and regulations;

3.8 “Economic Housing Project” refers to residential subdivision projects and

condominium projects which are sold at or below the prevailing price ceiling
for economic housing and compliant with the standards provided under Batas
Pambansa Blg. (BP) 220, otherwise known as “An Act Authorizing the
Ministry of Human Settlements to Establish and Promulgate Different Levels
of Standards and Technical Requirements for Economic and Socialized
Housing projects in Urban and Rural Areas From Those provided Under
Presidential Decrees Numbered Nine Hundred Fifty Seven, Twelve Hundred
Sixteen, Ten Hundred Ninety Six and Eleven Hundred Eighty-Five”, and its
implementing rules and regulations;

3.9 “Environmental Planning”, also known as urban and regional planning, city
planning, town and country planning, and/or human settlements planning,
refers to the multi-disciplinary art and science of analyzing, specifying,
clarifying, harmonizing, managing and regulating the use and development
of land and water resources, in relation to their environs, for the development
of sustainable communities and ecosystems;

3.10 “Government Housing Project” refers to subdivisions, condominium

buildings, medium-rise buildings, new settlements and other similar
residential projects owned, managed or funded by the government;

3.11 “Government Lands” refers to parcels of land whose ownership or title

pertains to the government, or any of its agencies, subdivisions, or
instrumentalities, including government-owned or controlled corporations
and their subsidiaries and lands placed under the jurisdiction of the above
entities by virtue of proclamations signed by the President. Government
lands also include rights-of-way or road titles;

3.12 “Homeowners Association”(HOA)refers to a non-stock, nonprofit

corporation registered with the Department, or previously registered with the
Housing and Land Use Regulatory Board (HLURB) or the Home Insurance
Guarantee Corporation (now Home Guaranty Corporation) or the Securities
and Exchange Commission, organized by owners or purchasers of a lot in a
subdivision/village or other residential real property located within the
jurisdiction of the association; or awardees, usufructuaries, legal occupants
and/or lessees of a housing unit and/or lot in a government socialized or
economic housing or relocation project and other urban estates; or

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 underprivileged and homeless citizens as defined under existing laws in the
process of being accredited as usufructuaries or awardees of ownership rights
under the Community Mortgage Program, Land Tenure Assistance Program
and other similar programs in relation to a socialized housing project actually
being implemented by the national government or the local government unit;

3.13 “Housing” refers to:

(a) A multi-dimensional concept relating to the process of residing and the

objects of dwelling whose main attributes are location relative to access
to livelihood, tenure arrangements, cost and physical structure, as well
as their environment;

(b) A physical structure as well as a social structure, functioning at

different spatial scales from homes, neighborhoods, communities,
municipalities, cities, provinces, and regions; and

(c) A sector of the economy, an important category of land use in both

urban and rural areas, especially in cities, and is an important factor in
the overall dynamics of the urban system;

3.14 “Housing Cooperative” refers to an association organized to assist or provide

access to housing for the benefit of its regular members who actively
participate in the savings program for housing. It is co-owned and controlled
by its members;

3.15 “Housing Finance” refers to the comprehensive funds flow system covering
the entire housing provision cycle from identification of financial
requirements to fund sourcing for various aspects of the housing program,
such as lot acquisition, development/construction and end-users’ financing,
and securitization of home mortgages and other housing related receivables
or financial products;

3.16 “Human Settlements” refers to and comprises:

(a) The physical components of shelter and infrastructure; and

(b) The services to which the physical elements provide support, such as
community services which include education, health, culture, welfare,
recreation and nutrition;

3.17 “Idle Lands” refers to non-agricultural lands in urban and urbanizable areas
on which no improvements have been made by the owner, as certified by the
city, municipal or provincial assessor;

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3.18 “In-City Resettlement” refers to a relocation site within the jurisdiction of the
local government unit where the informal settler families are living;

3.19 “Informal Settler Families” refers to households living in a lot, whether

private or public, without the consent of the property owner; or those without
legal claim over the property they are occupying; or those living in danger
areas such as esteros, railroad tracks, garbage dumps, riverbanks, shorelines,
and waterways;

3.20 “Land Banking” refers to the acquisition of land at values based on existing
use in advance of actual need to promote planned development and socialized
housing programs;

3.21 “Local Government Unit” (LGU) refers to provinces, cities, municipalities,

and barangays;

3.22 “Local Shelter Plan” (LSP) refers to a document which provides information
on the analysis of the present local housing situation, i.e., identification of
housing problems, upgrading and future housing needs, household
affordability and local resources such as land, provision of basic services and
finances. It also contains the main shelter strategies and a corresponding
implementation plan which provides the details of actions needed to realize
the housing objectives;

3.23 “Near-City Resettlement” refers to a relocation site within the jurisdiction of

a LGU adjacent to the LGU having jurisdiction over the present settlements of
the informal settler families;

3.24 “Neighborhood Association” refers to a group of potential public housing

beneficiaries living in contiguous areas, identified and accredited by or
organized with the assistance of the LGU for the purpose of availing of
housing programs or projects being implemented by the said LGU;

3.25 “Off-city relocation” refers to the development of a site outside and not
adjacent to the LGU where the affected informal settler families have their
settlements;

3.26 “People’s Plan” refers to the plan formulated by the beneficiary-association,

which shall contain a site development plan that conforms to the zoning
ordinance of the LGU under whose jurisdiction the project site is proposed to
be located, including community health, sanitation, and security plans, as well
as non-physical development components such as self-help housing
cooperative, livelihood, self-help development, capability building, and a
system of allocation of socialized housing units that promote and protect the
welfare of the elderly, persons with disability, and children;

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3.27 “Prototype Projects” refers to an early sample, model of a housing project or
design, or the pilot implementation of a housing and urban development
concept, program or process for the purpose of testing its viability or
sustainable replication;

3.28 “Public-Private Partnership” refers to a contractual agreement between the

Government and a private firm targeted towards financing, designing,
implementing and operating infrastructure facilities and services that were
traditionally provided by the public sector;

3.29 “Public Housing” refers to programs and projects owned and/or managed by
the government for the purpose of providing housing to underserved families;

3.30 “Real Estate Projects” or “Real Estate Development Projects” refers to

subdivisions, condominiums, townhouses, memorial parks, columbaria and
other similar projects which by law are subject to the regulatory jurisdiction
of the Department;

3.31 “Rental Housing” refers to housing where the occupancy is permitted by the
owner in consideration of the agreed payment charges, whether or not by the
terms of agreement such payment over a period of time will entitle the
occupant to the ownership of the premises;

3.32 “Resettlement Areas” refers to sites identified by the appropriate national

agency or by the LGU within its jurisdiction, which shall be used for the
relocation of the underprivileged and homeless citizens and other qualified
households;

3.33 “Resilient Housing” refers to housing that is equipped with an adequate

capacity to resist, absorb and accommodate the effects of climate change and
hazards and to return to normal conditions in a timely and effective manner
without significant changes to its basic functions and structures;

3.34 “Rural Development” refers to the process of improving the quality of life and
economic well-being of people living in rural areas;

3.35 “Socialized Housing” refers to housing programs and projects covering

houses and lots or homelots only, or residential condominium units
undertaken by the government or the private sector for the underprivileged
and homeless citizens which shall include sites and services development,
long-term financing, liberalized terms on interest payments, and such other
benefits in accordance with the provisions of RA 7279, otherwise known as the
“Urban Development and Housing Act”, as amended by RA 10884, otherwise
known as the “Balanced Housing Development Program Amendments”;

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3.36 “Socialized Housing Project” refers to residential subdivision projects and
condominium projects undertaken by the government or the private sector
which are sold at or below the prevailing price ceiling for socialized housing
and compliant with the standards provided under BP 220 and its
implementing rules and regulations;

3.37 “Socialized Housing Tax” pertains to the imposition of the additional one-half
percent (0.5%) tax on the assessed value of all lands in urban areas in excess
of fifty thousand pesos (P50,000.00) that LGUs are authorized to impose under
Section 43 of RA7279;

3.38 “Subdivision Project” refers to a tract or a parcel of land registered under

PD1529, otherwise known as the “Property Registration Decree”, or
previously under Act No. 496, otherwise known as the “The Land Registration
Act”, which is partitioned primarily for residential purposes into individual
lots with or without improvements, 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;

3.39 “Underprivileged and Homeless Citizens” refers to the beneficiaries of

RA7279 and to individuals or families residing in urban and urbanizable areas
whose income or combined household income falls within the poverty
threshold as defined by the National Economic and Development Authority
(NEDA)and who do not own housing facilities. This shall include those who
live in makeshift dwelling units and do not enjoy security of tenure;

3.40 “Underserved Families” refers to those who are disadvantaged in terms of

access to basic services because of inability to pay or other disparities by
reason of economic or social status, ethnicity, geographical isolation, and other
circumstances;

3.41 “Urban Development” refers to the process of occupation and use of land or
space for activities such as residential, industrial, commercial and the like or
their combinations, necessary to carry out the functions of urban living. It
entails the building or rebuilding of more or less permanent structures over
land that is often withdrawn or converted from its original use, resulting in
the creation of a built environment;

3.42 “Urban Development Planning” refers to the process that involves the
planning of diverse elements that comprise an urbanizing and urbanized area,
including its physical infrastructure, environment, housing, transportation
and management of land use and urban growth;

3.43 “Zoning” refers to the division of a community into districts (e.g., commercial,
residential, industrial, institutional, etc.) in order to maximize, regulate and

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 direct their use and development according to the Comprehensive Land Use
Plan. It is also concerned primarily with the use of land and through
imposition of building heights, bulk, open space and density in a given area;
and

3.44 “Zoning Ordinance” (ZO) refers to a locally enacted ordinance which

embodies, among others, regulations affecting uses allowed or disallowed in
each zone or district, conditions for allowing them, and deviations legally
allowed, from the requirements of the ordinance.

RULE II
DEPARTMENT OF HUMAN SETTLEMENTS
AND URBAN DEVELOPMENT

SECTION 4. Creation and Mandates of the Department. — The Department is

created by the Act through the consolidation of the Housing and Urban Development
Coordinating Council (HUDCC) and the HLURB, simultaneously with the
reconstitution of HLURB into the Human Settlements Adjudication Commission
pursuant to Section 12 of the Act. The functions of the HUDCC and the planning
and regulatory functions of HLURB shall be transferred to and consolidated in the
Department, while the Commission shall assume and continue to perform the
adjudication functions of HLURB pursuant to Section 25 of the Act.

The Department shall:

4.1 Act as the primary national government entity responsible for the
management of housing, human settlement and urban development;

4.2 Be the sole and main planning and policy-making, regulatory, program
coordination, and performance monitoring entity for all housing, human
settlement and urban development concerns, primarily focusing on the access
to and the affordability of basic human needs. For this purpose, in accordance
with Section 25 of the Act, the following functions of HLURB are hereby
transferred to the Department:

(a) The land use planning and monitoring function, including the
imposition of penalties for noncompliance to ensure that LGUs will
follow the planning guidelines and implement their CLUPs and ZOs;

(b) The regulatory function, including the formulation, promulgation, and

enforcement of rules, standards and guidelines over subdivisions,
condominiums and similar real estate developments, and imposition of
fines and other administrative sanctions for violations, pursuant to PD
957, as amended, BP 220 and other related laws; and

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 (c) The registration, regulation and supervision of HOAs, including the
imposition of fines for violations, pursuant to RA 9904, Section 26 of RA
8763 in relation to Executive Order (EO) No. 535, series of 1979, and other
related laws; and

4.3 Develop and adopt a national strategy to immediately address the provision
of adequate and affordable housing to all Filipinos, and ensure the alignment
of the policies, programs, and projects of all its attached agencies to facilitate
the achievement of this objective.

SECTION 5. Composition. — The Department shall be composed of the Office of the

Secretary, and the various bureaus, services and regional offices as provided under
Section 10 of the Act and as may eventually be created in accordance with existing
laws and regulations.

SECTION 6. General Powers and Functions of the Department. — The general

powers of the Department are as follows:

6.1 Enter into contracts, joint venture agreements or understanding, public-

private partnerships, and memoranda of agreement or understanding, either
domestic or foreign, under such terms and conditions as the Department may
deem proper and reasonable subject to existing laws;

6.2 Receive, take and hold by bequest, device, gift, purchase or lease, either
absolutely or in trust for any of its purposes from foreign and domestic
sources, any asset, grant or property, real or personal, subject to such
limitations provided under existing laws and regulations;

6.3 Discharge all responsibilities of government that may arise from treaties,
agreements and other commitments on human settlement and urban
development to be extended through bilateral or multilateral loans and/or
assistance programs including the formulation of policy guidelines on the
implementation of foreign-assisted or funded projects and international
partnerships;

6.4 Determine, fix and collect reasonable amounts to be charged as fees and charges
necessary for the effective implementation of all laws, rules and regulations enforced
by the Department in accordance with such rates and schedule it may fix, including
but not limited to permits, licensing, registration and inspection fees: Provided,
however, That all income generated from fees, charges, and other collections shall be
deposited with the National Treasury as income of the general fund;

6.5 Impose reasonable fines and penalties for any violation of or non-compliance with its
rules and regulations; Provided, however, That all income generated from fines and
penalties shall be deposited with the National Treasury as income of the general
fund;

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6.6 Recommend new legislation and amendments to existing laws as may be
necessary for the attainment of government’s objectives in housing and urban
development and prepare or submit comments or inputs on proposed
relevant legislations;

6.7 Serve as a voting member of the NEDA Board, the governing Boards of the
Climate Change Commission, the National Disaster Risk Reduction and
Management Council, the National Land Use Committee and such other inter-
agency bodies to which the Secretary may be designated;

6.8 Render technical assistance to the Commission in the performance of its

functions; and

6.9 Perform such other related functions as may be mandated by law.

SECTION 7. Policies, Plans and Programs Formulation and Development. — The

Department shall formulate and implement policies, plans and programs which are
consistent with the objectives of the Philippine Development Plan to promote social
and economic welfare, and anchored on the thrusts, goals and directions under the
Philippine New Urban Agenda, the National Urban Development and Housing
Framework, and on such other government’s plans, frameworks, and commitments
and agreements with international organizations, and which shall promote and
encourage partnerships between the government and private sectors or non-
government organizations for the provision of decent housing, suitable living
environment, and expanded economic opportunities specially for the homeless and
underprivileged citizens.

In the formulation and development of housing and urban development policies,

plans and programs, the Department shall:

7.1 Conduct continuing and comprehensive data-driven and evidence-based

studies and research necessary for housing and urban development, including
practical approaches and strategies to ensure resiliency and sustainability of
the urban environment;

7.2 Ensure that implementing programs, guidelines, rules and regulations are
aligned with the policies, frameworks and strategies set by the Department;

7.3 Coordinate with and conduct genuine, adequate, inclusive and participatory
consultation engaging relevant government agencies and instrumentalities,
and stakeholders.

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SECTION 8. Oversight and Monitoring Functions of the Department. — The
Department shall:

8.1 Monitor and evaluate the performance and accomplishment of the attached
agencies with respect to their housing and urban development policies,
programs and projects, and ensure the coordination thereof with the
Department and the national government;

8.2 Develop and establish a sector performance monitoring and assessment

mechanism to accurately and independently report on the performance of
national government agencies (NGAs) and LGUs involved in housing and
urban development or with infrastructure projects affecting informal settlers,
including a framework for regular review, evaluation and assessment of their
programs and projects to ensure the continuing improvements in housing
sector policy and strategy formulation; and

8.3 Require NGAs and LGUs to report and regularly submit relevant and
necessary data and information; and

8.4 Generate data analysis and recommend policy measures to address perceived
and potential issues.

SECTION 9. Ownership and Administration of Government-owned Lands. — In

accordance with Section 5, II (d) of the Act, the Department shall exercise ownership
and administration of government lands, whether owned by the national
government or any of its subdivisions, instrumentalities, or agencies, including
government-owned or controlled corporations (GOCCs) and their subsidiaries,
which have not been used for the purpose for which they have been originally
reserved or set aside for at least ten (10) years and identified by the Department as
suitable for urban development, particularly for housing purposes: Provided, That
the lands held in trust by the GOCCs for and on behalf of their members shall be
excluded from the coverage hereof.

SECTION 10. Public Housing and Urban Development Powers and Functions of the
Department. — The Department shall:

10.1 Develop and manage government lands which have been identified as
suitable for housing and urban development in accordance with Sections 9
hereof, and pursuant to Sections 5 (II) (d) and 24 of the Act;

10.2 Manage and oversee emergency post-disaster/post-conflict shelter recovery

or climate change adaptation and mitigation disaster risk reduction provision
and interventions;

10.3 Manage and oversee the development of proclaimed socialized and economic
housing sites;

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10.4 Implement plans for the establishment of government centers in the country,
in coordination with and assistance of relevant government agencies and
instrumentalities;

10.5 Manage and oversee the establishment of estate and new towns, new
settlements, urban renewal programs and prototypes of housing and urban
development interventions, in coordination with attached agencies and
concerned agencies;

10.6 Implement prototype projects in housing and urban development

undertakings in coordination with attached agencies and concerned
agencies, with the right to exercise the power of eminent domain when
necessary;

10.7 Manage, oversee or implement the take-over of unfinished, incomplete or

abandoned licensed real estate development projects under PD 957 and BP
220, in coordination with the appropriate government agencies and
instrumentalities, and regional offices of the Department, under such rules
and guidelines as may hereafter be issued by the Department, and take
charge in the regulation of the use of road and street systems of the projects
taken-over;

10.8 Implement the opening of roads of subdivision to the public when the
general welfare requires it, in coordination with and assistance of relevant
government agencies and instrumentalities, and upon consultation with
stakeholders; and

10.9 Promote, accredit and regulate the use of indigenous materials and
technologies in the housing construction, and act on accreditation for the use
thereof.

SUB-RULE II-A
THE OFFICE OF THE SECRETARY

SECTION 11. The Office of the Secretary. — The Office of the Secretary shall house
the Office of the Department Secretary, the Offices of the Undersecretaries, and the
Offices of the Assistant Secretaries, and their immediate support staff. The Office of
the Secretary may likewise house such offices as may be established under the
supervision of the Secretary, or any of the Undersecretaries or Assistant Secretaries,
in accordance with existing rules and regulations.

SECTION 12. Appointment and Qualifications. — The Secretary shall be appointed

by the President with the consent of the Commission on Appointments while the
Undersecretaries and Assistant Secretaries shall be appointed by the President upon
the recommendation of the Secretary. The Secretary shall be assisted by three (3)

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Undersecretaries and three (3) Assistant Secretaries: Provided, That at least one (1)
Undersecretary and one (1) Assistant Secretary shall be career officers.

No person shall be appointed Secretary, Undersecretary and Assistant Secretary of

the Department unless he or she is a citizen and resident of the Philippines, of good
moral character, and of proven integrity, competence and expertise in housing, urban
planning and development.

SECTION 13. The Secretary. — The authority and responsibility for the exercise of
the mandates of the Department and for the discharge of its powers and functions
shall be vested in the Secretary, who shall have supervision and control of the
Department. The Secretary shall have the following functions:

13.1 Advise the President of the Philippines on matters related to housing, human
settlements, and rural and urban development;

13.2 Establish policies and standards for the efficient and effective operations of
the Department in accordance with programs of the government;

13.3 Promulgate rules, regulations and other issuances such as orders circulars,
guidelines, and memoranda which are necessary in carrying out the
Department's mandate, objectives, policies, plans, programs and projects, or
implementing or interpreting the provisions of the Act and of this Rules;

13.4 Designate and appoint officers and employees of the Department, excluding
the Undersecretaries, Assistant Secretaries, and Regional and Assistant
Regional Directors, in accordance with the civil service laws, rules and
regulations;

13.5 Exercise control and supervision, including disciplinary powers over officers
and employees of the Department in accordance with law, including their
investigation and the designation of a committee or officer to conduct such
investigation;

13.6 Exercise control and supervision, including disciplinary powers over officers
and employees of the attached agencies in accordance with law, including
their investigation and the designation of a committee or officer to conduct
such investigation;

13.7 Coordinate with other agencies and instrumentalities of the government to

ensure the effective and efficient implementation of housing and urban
development programs;

13.8 Ratify the CLUPs of independent component cities, highly urbanized cities,
Metro Manila LGUs, and of provinces;

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13.9 Review, revise, reverse, modify or affirm on appeal the issuances and orders
of the Regional Directors;

13.10 Approve all socialized compliance and compliance projects of main

subdivision and condominium projects required under Section 18 of RA 7279,
as amended by RA 10884, and its implementing rules and regulations;

13.11 Perform such other functions as may be provided by law or assigned by the
President.

SECTION 14. Powers and Duties of the Undersecretaries. — The Undersecretaries

shall have the powers and functions as provided for in Chapter 2, Book IV of the
Administrative Code of 1987. The Secretary is further authorized to delineate and
assign functional areas and other responsibilities of the Undersecretaries and
Assistant Secretaries.

SECTION 15. Duties and Functions of the Assistant Secretaries. — The Assistant
Secretaries shall perform such duties and functions as may be provided by law or
assigned by the Secretary.

SECTION 16. Structure and Staffing Pattern. — Subject to the approval of the
Department of Budget and Management (DBM), the Secretary shall determine the
organizational structure and create new divisions or units as may be necessary, and
appoint officers and employees of the Department in accordance with the civil
service laws, rules and regulations. The remuneration structure of the position in the
staffing pattern shall strictly conform to Republic Act No. 6758, otherwise known as
the Salary Standardization Law, as amended.

SUB-RULE II-B
THE BUREAUS

SECTION 17. Department Bureaus. — To carry out its mandates and functions the
Department shall operate, and maintain Bureaus under it such as, but not limited to:

(a) Environmental, Land Use and Urban Planning and Development Bureau;

(b) Housing and Real Estate Development Regulation Bureau; and

(c) Homeowners Associations and Community Development Bureau.

In the implementation of their respective functions, the bureaus shall recommend to

the Secretary necessary policy reforms on housing and urban development matters
and concerns.

SECTION 18. Composition of the Bureaus. — Each bureau shall be headed by a

Director who shall exercise administrative control and supervision over it and who

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shall be responsible for efficiently and effectively carrying out the functions of the
Bureau. The Bureau Directors shall be appointed by the President. The Bureaus shall
be divided into as many divisions as may be necessary and established in the
Department’s organizational structure in accordance with existing rules and
regulations.

SECTION 19. Environmental, Land Use and Urban Planning and Development
Bureau. — The Environmental, Land Use and Urban Planning Bureau shall exercise
the following powers and functions:

19.1 Formulate national urban development policies, strategies and standards such
as but not limited to urban management, growth, redevelopment and
renewal;

19.2 Formulate a comprehensive plan for the ownership and administration of

government lands, whether owned by the national government or any of its
subdivisions, instrumentalities, or agencies, including GOCCs and their
subsidiaries, which have not been used for the purpose for which they have
been originally reserved or set aside for at least ten (10) years and identified
by the Department as suitable for urban development, particularly for
housing purposes: Provided, That the lands held in trust by the GOCCs for
and on behalf of their members shall be excluded from the coverage hereof.
Such plan shall include developing and establishing land acquisition and
banking strategies and compensation scheme for the transfer of title and
ownership to the Department, formulating and prescribing standards, and
mechanisms for the optimum development of lands to include, but not limited
to residential, industrial, commercial and the like.

19.3 For the purpose of designating lands for housing and urban and rural
development, the Department, the Department of Environment and Natural
Resources (DENR), the Department of Agrarian Reform (DAR), the
Department of Agriculture (DA), the Department of the Interior and Local
Government (DILG), and the Land Registration Authority (LRA) shall, within
one hundred eighty (180) days from the effectivity of the Act, jointly identify
government lands suitable for housing and rural development: Provided, That
all government lands which have been idle for more than ten (10) years,
except lands owned by the GOCCs and government financial institutions
engaged in shelter financing as part of its fiduciary obligation to its members
and/or are taken possession of in their ordinary conduct of business, are
hereby prioritized for housing and urban development purposes: Provided,
further, That lands exempted from conversion under existing laws shall be
excluded from the coverage of this section: Provided, finally, That the national
lands identified under this section shall be transferred to or administered by
the Department, subject to the approval of the President.

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 The Department shall, in coordination with the DENR, DAR, DA, DILG, and
the LRA, issue separate rules and regulations for the implementation of
Section 24 of the Act;

19.4 Formulate a framework for resilient housing and human settlements as a basis
for mechanisms for post-disaster housing and resiliency planning, research
and development, extension, monitoring and evaluation of programs, projects
and activities to protect vulnerable persons and communities in hazard-prone
areas from the adverse effects of climate change and disasters;

19.5 Formulate and prescribe land use planning and zoning standards and
guidelines for the formulation of CLUPs and ZOs of cities and municipalities
and Provincial Physical Framework Plans (PPFP), which shall employ
effective and integrated land use planning and management approaches from
ridge to reef, mainstream disaster risk management and climate change
adaptation pursuant to RA 9729 and RA 10121, and integrate other urban
development special areas of studies whenever necessary;

19.6 Pilot projects of newly-developed planning guidelines and standards;

19.7 Develop guidelines and strategies for the formulation of LSPs including
utilization of socialized housing tax as provided under Section 43 of RA 7279,
and other sources of funds for housing and urban development;

19.8 Formulate planning guidelines, standards and development control on urban

development;

19.9 Develop framework and strategies for the establishment of estate and new
towns, new settlements, urban renewal programs, prototypes of urban
development interventions, and government centers in the country;

19.10 Train and capacitate the regional offices in providing technical assistance to
provinces, cities and municipalities in undertaking housing and urban
development and management such as, but not limited to:

(a) Formulation and updating of CLUPs and ZOs, or Provincial

Comprehensive Land Use Plans (PCLUPs) or PPFP: Provided, That no
PCLUP or PPFP, and CLUP of Independent Component Cities and
Highly Urbanized Cities and Metro Manila LGUs shall be approved by
the Secretary without undergoing the review and approval process set
forth under EO 72, Series of 1993, or as provided by other existing laws
and regulations;

(b) CLUP implementation and ZO enforcement for LGUs;

(c) Formulation and updating of LSPs;

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 (d) Creation of Local Housing Board or similar entity; and

(e) Strengthening local government compliance with housing and urban

development laws, standards and guidelines;
19.11 Ensure compliance by the LGUs not only with the procedure for the
formulation or updating of their land use or physical framework plans but
also with the implementation of the same, through review or ratification,
monitoring, and imposition of penalties, in accordance with existing laws and
regulations; Provided, That notwithstanding this provision, all existing CLUPs
and physical framework plans duly approved and being implemented by the
LGUs shall remain in full force and effect for the duration of the period as
approved: Provided, further, That upon enactment of the Act, LGUs may
improve, amend and enhance their existing CLUPs or physical framework
plans in accordance with the standards set by the Department;

19.12 Formulate guidelines for the imposition of penalties for non-compliance and
incentives to ensure that LGUs will follow the planning guidelines and
implement their CLUPs and zoning ordinances;

19.13 Develop and maintain a geographic information system for management and
monitoring of land use, zoning, urban development standards, which shall
include, but not be limited to, the following data sets:

(a) Inventory of idle lands;

(b) Inventory of existing CLUPs and ZOs;

(c) Land use changes and reclassification of agricultural lands of cities and
municipalities;

(d) Inventory of existing LSPs and local ordinances adopting the LSPs;

(e) Inventory of housing stock; and

(f) Listing of existing and potential beneficiaries of housing assistance,

including their socio-economic profiles; and

19.14 Perform such other functions as may be required by the Secretary.

SECTION 20. Housing and Real Estate Development Regulation Bureau. — The
Housing and Real Estate Development Regulation Bureau shall exercise the
following powers and functions:

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20.1 Formulate national housing policies, strategies and standards such as but not
limited to:

(a) Resettlement housing and programs, involving land acquisition and on-
site development to generate serviced homelots or units for families
displaced from sites earmarked for government infrastructure projects,
occupying danger areas such as water ways, esteros, railroad tracks and
those qualified for relocation and resettlement assistance pursuant to and
in accordance with existing relevant laws, executive orders, and rules
and regulations, such as, but not limited to, RA 7279 or the “Urban
Development and Housing Act of 1992”, RA 10752 or the “Right of Way
Act”, and Section 7 of EO 20, series of 2001; and

(b) Land banking and other modes of land acquisition policies in order to
ensure availability of land for housing, especially for the homeless and
underprivileged;

20.2 Formulate housing finance and production policies that will promote the
establishment of self-sustaining housing finance and delivery systems, taking
into consideration the development of a variety of payment schemes and the
income and capacity to pay of the intended beneficiaries or market;

20.3 Formulate, in coordination with the attached agencies, public housing

policies and programs that recognize and explore alternative and innovative
solutions in addressing the Country’s housing needs such as mixed-income
and mixed-use development; rights-based tenurial arrangements such as but
not limited to lease, rental, and usufruct; community mortgage and people’s
plan, including their modalities and approaches; various types of subsidies as
may be appropriate and necessary to cater to the different needs and demands
of intended markets and beneficiaries, especially the homeless and
underprivileged families. Such policies and programs shall encourage
participation of and partnership with and among LGUs and CSOs,
nongovernment organizations (NGOs), private groups and communities;

20.4 Formulate policies and guidelines on the management and oversight of the
development of proclaimed socialized and economic housing sites, including
the use of these land assets as resource mobilization strategy to raise
alternative resources in developing new housing projects and efficient
financing programs, either by itself or through its attached agencies;

20.5 In coordination with attached agencies and other agencies concerned,

formulate and develop policies and mechanisms that will initiate and promote
the establishment of estate and new towns, new settlements, urban renewal
programs, and prototypes of housing and urban development interventions,
including the people’s plan approach, while encouraging the participation

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 therein of local government partnerships with CSOs, NGOs, private groups
and communities;

20.6 Determine and review or revise, jointly with the NEDA, the respective price
or loan ceilings for socialized, economic, low, and middle-income housing in
accordance with existing laws, rules and regulations;

20.7 Formulate policies and guidelines in promoting, regulating and accrediting

the use of indigenous materials and technologies in the housing construction;

20.8 Formulate and prescribe policies and regulations for the continuation and
extension of rental regulation of certain residential units, in accordance with
RA 9653 or the “Rent Control Act of 2009”;

20.9 Implement and oversee a single regulatory system that shall govern all
activities relative to the planning, development, production, marketing and
management of, as well as financing and guarantees for housing and urban
development projects;

20.10 Exercise regulatory functions over the development and sale of subdivision
and condominium projects and other similar real estate developments then
required by law to be registered with HLURB, now with the Department,
pursuant to PD 957, BP 220 and other related laws, such as, but not limited to,
the following:

(a) Formulation of rules, regulations, technical design, standards and

guidelines for the orderly development of real estate projects and for the
protection of real estate buyers pursuant to PD 957, BP 220 and other
related laws;

(b) Formulation of rules and regulations to ensure compliance with Section

18 of RA 7279, as amended by RA 10884; and

(c) Formulation and updating of guidelines and procedure for the conduct of
monitoring of the development, sale and maintenance of real estate
projects including the open spaces and common areas to ensure their
compliance with rules, regulations and standards implemented by the
Department, including the imposition of fines and other administrative
sanctions pursuant to PD 957 and other related laws;

20.11 Formulate rules and guidelines, for the determination of unfinished,

incomplete or abandoned licensed real estate development projects and
develop schemes for their takeover by the Department, including the
regulation of the regulation of the use of the road and street systems of real
estate projects taken-over;

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20.12 Develop systems and procedures for the establishment of Housing One-Stop
Processing Centers (HOPCs) in the Regional Offices which shall centralize the
processing and issuance of all required housing-related permits, clearances,
and licenses in accordance with EO 45, series of 2001, entitled "Prescribing
Time Periods for Issuance of Housing Related Certifications, Clearances and
Permits, and Imposing Sanctions for Failure to Observe the Same", and RA
11032, the “Ease of Doing Business Act of 2018.” For this purpose, the
Department shall coordinate with the agencies concerned for the assignment
to the HOPC of such staff or complement of sufficient competence and
discretion, duly authorized to approve and sign such permits and licenses;

20.13 Develop capability-building programs and designs for Regional Directors and
staff involved in real estate development regulation;

20.14 Conduct continuing research and studies on new approaches to real estate
development regulation;

20.15 Coordinate with other agencies when necessary for the effective performance
of the Department’s real estate development functions;

20.16 Develop and maintain a spatial database of all subdivision and condominium
projects and the status of their development; and

20.17 Perform such other functions to carry out the above, or as may be required by
the Secretary.

SECTION 21. Homeowners Associations and Community Development Bureau. —

The Homeowners Associations and Community Development Bureau shall exercise
the following powers and functions:

21.1 Formulate and amend rules and regulations for the implementation of RA
9904, including the procedure and requirements for registration of HOAs in
subdivision projects, government housing projects and neighborhood
associations; the Code of Ethics and Ethical Standards for board members;
standard nomenclatures to be used for the associations' books of accounts;
guidelines in the kinds of contributions and fees that may be charged and
collected by associations; the procedure for verification and validation of
petitions for the removal of directors or trustees of the association or
dissolution of the board; and such other related policies for the regulation of
HOAs;

21.2 Formulate or amend standard governing documents of HOAs and

neighborhood associations;

21.3 Develop programs that will ensure and maintain the non-partisan nature of
the activities of HOAs;

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21.4 Develop programs that will establish and promote linkage with the province,
city or municipality, as the case may be, to ensure the inclusion of HOAs in
community development and housing concerns in all local government
programs and services;

21.5 Develop strategies to strengthen the grievance mechanism and procedure in

HOAs and encourage the use of alternative modes of resolving disputes;

21.6 Develop standard orientation and training materials for officers and board
members of associations as well as their members, and conduct trainors’
training for personnel of the Regional Offices;

21.7 Establish procedure and requirements for the deputization of another agency
or the accreditation of private institutions or training providers to conduct
orientation for officers and board members of HOAs;

21.8 Formulate guidelines for the imposition of fines and other administrative
sanctions, such as, but not limited to suspension, revocation or cancellation of
registration, disqualification from appointive or elective office in the
association, for violation of RA 9904;

21.9 Coordinate with other NGAs and LGUs for the effective implementation of
policies, plans, programs, and services for HOAs;

21.10 Establish and maintain a national registry of HOAs, neighborhood

associations and their federations, confederations or umbrella organizations;

21.11 Develop technical assistance programs geared towards encouraging housing

cooperatives and CSOs to serve as the implementing agencies of their housing
and urban development programs and real estate management;

21.12 Develop plans and programs promoting community organizations as

government partners for community development and building their capacity
for homeownership and community management, including adoption of
measures to protect the communities from the operation of professional
squatters and squatting syndicates; and

21.13 Perform such other functions as may be necessary to carry out the above, or
as may be assigned by the Secretary.

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 SUB-RULE II-C
THE REGIONAL OFFICES

SECTION 22. Establishment of Regional Offices. — The Department shall establish

regional offices in the administrative regions of the country, as may be necessary.
SECTION 23. Regional Directors and Assistant Regional Directors — The Regional
Offices of the Department shall each be headed by a Regional Director, who shall be
assisted by an Assistant Regional Director. They shall be appointed by the President
of the Philippines.

The Regional Director shall exercise administrative control and supervision of the
operations of the regional offices and shall represent the Department in various local
interagency bodies or committees on land use planning and zoning, housing and
urban development programs and projects, and other related concerns.
The Assistant Regional Directors shall perform such duties and responsibilities as
may be assigned or delegated to them.

SECTION 24. General Functions of the Regional Offices. — The Regional Offices
shall perform the following functions within their field service areas:
24.1 Implement laws, and the Department’s policies, plans, programs, projects,
rules and regulations;

24.2 Coordinate and maintain linkage with NGAs, LGUs, private entities, NGOs,
CSOs, academe, and other stakeholders;

24.3 Assist the Office of Public Housing and Settlements in the implementation of
its various public housing and settlements functions;

24.4 Act on applications for the issuance of various permits, licenses, clearances
and certifications;

24.5 Conduct conciliation proceedings on issues and disputes relating to the

implementation of the Department’s mandates, including the regulation of
real estate development and HOAs; and

24.6 Perform such other functions that are implied, necessary or incidental in
carrying out the above, or as maybe assigned by the Secretary.

Each Regional Office may establish or assign a unit that shall address and manage
public inquiries complaints, and grievances relating to the Regional Office’s
operation, including the implementation of the Department’s plans, programs and
projects, and the implementation of its rules and regulations.

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SECTION 25. Core Functions of the Regional Offices. — The Regional Offices shall
perform the following:

25.1 Environmental, Land Use and Urban Planning and Development Functions.

25.1.1 Provide technical assistance to provinces, cities and municipalities in the

preparation and updating of CLUPs, ZOs, and PCLUPs/PPFPs;

25.1.2 Conduct technology transfer and capability building programs for LGUs
in the implementation of CLUP and ZO enforcement and development
control;

25.1.3 Conduct training and mentoring in addressing urban development,

management and governance concerns such as housing, establishment
of government centers, new towns, settlements, and planned unit
development, urban renewal, open spaces, traffic concerns, sewerage,
waste management, and energy efficiency, among others.

25.1.4 Undertake review of PPFPs, CLUPs and ZOs of provinces, cities and
municipalities as a member of the Provincial Land Use Committee or
Regional Land Use Committee;

25.1.5 Extend technical assistance to and conduct technology transfer and

capability building of cities and municipalities in the formulation,
legitimization and implementation of LSPs, which shall include plans
and strategies for the utilization of the socialized housing tax as provided
under Section 43 of RA7279 and other sources of funds for housing and
urban development;

25.1.6 Monitor land use changes, particularly the reclassification of agricultural

lands into other uses and implementation of Zos of cities and
municipalities;

25.1.7 Update an inventory of idle lands, existing CLUPs, ZOs,

PCLUPs/PPFPs, and LSPs, inventory of housing stock and listing of
government-housing program beneficiaries;

25.1.8 Maintain a geographic information system for monitoring of land use

and zoning, particularly on, but not limited to:

(a) Compliance of LGUs to guidelines set by the Department in

preparing and updating their respective CLUPs and ZOs; and

(b) Implementation of CLUPs and ZOs through monitoring of land use

changes and reclassification; and

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 25.1.9 Perform such other functions that are implied, necessary or incidental in
carrying out the above, or as may be assigned by the Regional Directors.

25.2 Housing and Real Estate Development Regulation Functions.

25.2.1 Act on applications for issuance of Certificate of Registration and License

to Sell to subdivisions, condominiums, and other real estate
development projects, and Development Permit to condominium
projects;

25.2.2 Review and recommend to the Secretary the approval of compliance to

Section 18 of RA 7279, as amended by RA 10884;

25.2.3 Act on applications for issuance of other related permits such as, but not
limited to:

(a) Advertisement Approval;

(b) Alteration Permit for condominium projects;

(c) Mortgage Clearance;

(d) Change of Ownership;

(e) Extension of Time to Complete Development;

(f) Conversion of existing buildings into condominium; and

(g) Certificate of Completion;

25.2.4 Act on applications for issuance of Certificate of Registration to real

estate dealers, brokers and salesmen engaged in the sale of lots or units
in subdivisions, condominiums, and other real estate development
projects within the regulatory jurisdiction of the Department;

25.2.5 Set up and manage the Regional HOPCs;

25.2.6 Implement capability-building programs for LGUs on subdivision plan

approval and monitoring of projects in accordance with existing rules,
regulations and standards;

25.2.7 Monitor the development, sale and maintenance of real estate

development projects to ensure their compliance with existing laws,
rules and regulations;

25.2.8 Impose fines and other administrative sanctions, including suspension

or revocation of license and issuance of a Cease and Desist Order for
Page 24 of 37
 violation of the laws, rules and regulations being implemented by the
Department in accordance with the established monitoring rules of
procedure;

25.2.9 Recommend projects for declaration as unfinished, incomplete and

abandoned and may be subjected to takeover by the Department;

25.2.10 Maintain and update the spatial database and databank of all
subdivision and condominium projects, the status of their development,
and other related concerns; and

25.2.11 Perform such other functions that are implied, necessary or incidental in
carrying out the above, or as may be assigned by the Regional Directors.

25.3 Homeowners Associations and Community Development Functions.

25.3.1 Regulate and supervise the activities and operations of HOAs,

neighborhood associations, federations, confederations or umbrella
organizations of the associations, and other similar associations in
subdivision projects and government housing projects;

25.3.2 Act on applications for issuance of Certificate of Incorporation to HOAs,

neighborhood associations, federations, confederations or umbrella
organizations of HOAs, and other similar associations in subdivision
projects and government housing projects;

25.3.3 Act on applications for amendments of articles of incorporation and by-

laws;

25.3.4 Suspend, revoke and cancel certificates of registration/incorporation,

certificates of filing of amended articles of incorporation and by-laws;

25.3.5 Act on applications or petitions for federation, merger, consolidation,

segregation and dissolution;

25.3.6 Call for, conduct, supervise and observe special elections;

25.3.7 Verify and validate petitions for removal of directors/trustees or

dissolution of the Board of Directors/Trustees;

25.3.8 Require and monitor compliance by HOAs with reportorial

requirements;

25.3.9 Provide technical assistance on governance and regularly conduct free

orientation for officers of HOAs, or recommend the deputization of
another competent agency or the accreditation of other institutions to
conduct the orientation;
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 25.3.10 Issue show cause orders, impose fines and penalties and administrative
sanctions for violations of RA 9904, its implementing rules and
regulations, and other pertinent laws and policies;

25.3.11 Maintain and update data in the registry of HOAs in their respective
regions;

25.3.12 Provide technical assistance to housing cooperatives and CSOs in

building their capabilities to implement their housing and urban
development plans, programs and projects;

25.3.13 Assist community organizations in developing their capacity to be

government partners for homeownership and community development
through access to government housing and financing, and estate
management;

25.3.14 Assist community organizations in the adoption of measures to protect

communities from the operation of professional squatters and squatting
syndicates; and

25.3.15 Perform such other functions that are implied, necessary or incidental in
carrying out the above, or as may be assigned by the Regional Directors.

RULE III
ATTACHED CORPORATIONS

SECTION 26. Attached Corporations. — The Department shall exercise administrative

supervision over the following housing agencies, which shall remain to be attached for
purposes of policy and program coordination, monitoring and evaluation:

(a) National Housing Authority (NHA);

(b) National Home Mortgage Finance Corporation (NHMFC);

(c) Home Development Mutual Fund (HDMF); and

(d) Social Housing Finance Corporation (SHFC).

The attached corporations shall continue to function according to existing laws and
their respective Charters, subject to the policy directions of the Board.

SECTION 27. Appointment of Board of Directors or Trustees. — Without prejudice to the

provisions of the respective charters of the attached corporations, the appointment of
their Board of Directors or Trustees shall be in accordance with RA 10149, otherwise
known as the “GOCC Governance Act of 2011”.

Page 26 of 37
SECTION 28. Performance Contract. — Upon appointment and assumption into
office and every year thereafter, each of the heads of the attached corporations shall
enter into a performance contract with the Secretary in accordance with their
respective mandates: Provided, That such performance contracts shall be consistent
with the national targets on human settlements and urban development, and the
overall administration of the corporation.

SECTION 29. Restructuring of the Attached Agencies. — Within two (2) years from the
effectivity of the Act, the Secretary, in coordination with the Governance
Commission for GOCCs (GCG), shall recommend to the President, the restructuring
of the foregoing corporations guided by the following objectives found hereunder:

29.1 To eliminate overlaps, if any, in programs, within and among the attached
corporations, that serve the same beneficiaries or clientele;

29.2 To identify functions and programs of corporations that properly belong to

regular government agencies such as policymaking, regulation, standard
setting, and service provision from functions that are imbued with
commercial motives which require a corporate structure. Line functions shall
be transferred to the Department while corporate functions shall be retained
with the corporations;

29.3 To clarify the role of each corporation along the housing value chain,
including housing production, primary financing, secondary market
development, and housing insurance and guarantee to promote the
development of a comprehensive and synergetic housing industry; and

29.4 To strengthen integration of functions, programs, and services among

corporations and the Department to leverage limited public resources and
maximize the value of housing products and services offered by the public
sector.

Any reorganization, merger, streamlining, abolition or privatization of any attached

corporation shall be formulated and implemented in coordination with the GCG and
in consultation with the GOCC concerned and the relevant provisions of RA 10149.

RULE IV
HUMAN SETLLEMENTS
ADJUDICATION COMMISSION

SECTION 30. Reconstitution of the HLURB as the Human Settlements Adjudication

Commission. — The HLURB is reconstituted under the Act as the Human
Settlements Adjudication Commission. The Commission shall assume and continue
to perform the adjudicatory functions of HLURB, and shall be attached to the
Department for policy, planning and program coordination only.

Page 27 of 37
In the performance of its functions, the Commission shall be guided by the
Constitutional provision that affords all persons the right to a speedy disposition of
their cases before all judicial, quasi-judicial or administrative bodies. Toward this
end, the independence of the adjudication process and the speedy resolution of
disputes involving housing and real estate development and transactions, land use,
and HOAs shall be ensured, and all parties to these controversies shall be accorded
equal access to legal processes.

SECTION 31. Composition and Compensation. — The Commission shall be

composed of the following:

31.1 Commission en banc. - Five (5) Commissioners appointed by the President

shall comprise the Commission.

The Executive Commissioner, shall be appointed by the President from

among the five (5) Commissioners. They shall have a rank and be entitled to
the same compensation, allowances, retirement and other benefits as provided
under RA No. 6758, s. 1989, the Salary Standardization Law, as amended.

The Executive Commissioner, assisted by the Executive Clerk of the

Commission, shall be responsible for the administration and operations of the
Commission, and the supervision of personnel, including the Regional
Adjudicators. The Executive Commissioner may delegate or assign
administrative supervision over specific Regional Adjudication Branches
(RABs)to the other four (4) Commissioners.

In order to efficiently carry out its adjudicatory functions, the Commission

may sit en banc or in three (3) Divisions, each composed of a combination of
three (3) Commissioners: Provided, That no two (2) Divisions shall have the
same composition. The commission and its divisions shall be assisted by the
Executive Clerk: Provided further, That motions for reconsideration of the
decision promulgated by the divisions shall be resolved by the Commission
en banc.

The Commission shall sit en banc for purposes of promulgating rules and
regulations governing the hearing and disposition of cases before any of its
divisions and RABs and formulating policies affecting its administration and
operations. The Commission en banc shall also define the operating and
support units in the RABs.

31.2 RAB. - There shall be as many RABs as there are Regional Offices of the
Department.

The President shall appoint as many Regional Adjudicators as may be

necessary upon the recommendation of the Secretary. For this purpose, the
Executive Commissioner may submit names of the Commission’s nominees
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 to the Secretary. There shall be as many Regional Adjudicators as may be
necessary for the effective and efficient operations of the RAB, but in no case
less than two (2). In each RAB, the Commission shall designate a Chief
Regional Adjudicator who shall be responsible for the administration and
operations of the Branch office, including the supervision of its personnel.

SECTION 32. Qualifications and Terms of Office. — The qualifications and terms
of office are as follows:

32.1 Commissioners. - Each Commissioner must be a natural born citizen of the

Philippines, of good moral character and has been engaged in the practice of
law and a member of the Philippine Bar of good standing for a period of at
least ten (10) years prior to the appointment: Provided, That all nominees shall
have experience in urban development planning, sustainable development,
climate change adaptation, disaster risk reduction or real estate development.

Each Commissioner shall hold office for six (6) years. In case of a
Commissioner’s death, permanent disability, removal from office, resignation
and incapacity to discharge the duties of office, the person appointed as
Commissioner shall only serve the unexpired term: Provided, That the term of
office of the incumbent Commissioners shall be respected.

32.2 Regional Adjudicator. - Each Regional Adjudicator must be a citizen of the

Philippines, of good moral character, has been in the practice of law and
member of the Philippine Bar of good standing for at least seven (7) years,
with at least three (3) years' experience in realty or land use and development
cases, prior to the appointment: Provided, That the existing HLURB Arbiters
are deemed qualified and shall be accorded preference in the nomination for
appointment as Regional Adjudicators.

Each Regional Adjudicator shall hold office on good behavior until otherwise
incapacitated or has reached the retirement age in accordance with law, rules
and regulations promulgated by duly constituted authorities, whichever
comes earlier.

SECTION 33. Jurisdiction of the Commission. — The Commission shall have the
exclusive appellate jurisdiction over:

33.1 All cases decided by the Regional Adjudicators; and

33.2 Appeals from decisions of local and regional planning and zoning bodies.

The decision of the Commission shall be final and executory after fifteen (15) calendar
days from receipt by the parties.

Page 29 of 37
SECTION 34. Jurisdiction of Regional Adjudicators. — The Regional Adjudicators
shall exercise original and exclusive jurisdiction to hear and decide cases involving
the following:

34.1 Cases involving subdivisions, condominiums, memorial parks and similar

real estate developments:

(a) Actions concerning unsound real estate business practices filed by

buyers or homeowners against the project owner or developer, which
cause prejudice to the buyers or committed with bad faith and disregard
of the buyers' rights;

(b) Claims for refund, and other claims filed by subdivision lot or
condominium unit buyer against the project owner, developer, dealer,
broker or salesman: Provided, That when the cause of action arises from
the buyer's rights under Section 23 of PD 957 and the purchase price of
the property is paid through a housing loan from a bank or other
financing institutions, the latter shall be impleaded as necessary party;

(c) Cases involving specific performance of contractual and statutory

obligations arising from the sale of the lot or unit and development of the
subdivision or condominium project;

(d) Disputes involving the open spaces or common areas and their use filed
by the project owner or developer or the duly registered HOA, including
the eviction of informal settlers therein, in accordance with the
requirements of law, and the rules and regulations promulgated by duly
constituted authorities;

(e) Suits to declare subdivision, condominium or other real estate

developments within the regulatory jurisdiction of the Department as
abandoned, as defined under Section 3 of the Act for the purpose of
Section 35 of PD 957;

(f) Disputes involving easements within or among subdivision projects; and

(g) Actions to annul mortgages executed in violation of Section 18 of PD 957

filed by a subdivision lot or condominium unit buyer against the project
owner and/or developer and the mortgagee;
34.2 Cases involving HOAs:

(a) Controversies involving the registration and regulation of HOAs;

(b) Intra-association disputes or controversies arising out of the relations

between and among members of HOAs; between any or all of them and
the HOA of which they are members;

Page 30 of 37
 (c) Inter-association disputes or controversies arising out of the relations
between and among two (2) or more HOAs between and among
federations and other umbrella organizations, on matters pertaining to
the exercise of their rights, duties and functions; and

(d) Disputes between such HOA and the State, insofar as it concerns their
individual franchise or right to exist and those which are intrinsically
connected with the regulation of HOAs or dealing with the internal
affairs of such entity;

34.3 Disputes involving the implementation of Section 18 of RA 7279, as amended

by RA 10884, and its implementing rules and regulations; and

34.4 Disputes or controversies involving laws and regulations being implemented

by the Department except those cases falling within the jurisdiction of other
judicial or quasi-judicial body.

SECTION 35. Powers and Authorities of the Commission. — The Commission shall
have the power and authority:

35.1 To promulgate rules and regulations governing the hearing and disposition
of cases before it and its Adjudicators, as well as those necessary to carry out
its functions;

35.2 To administer oaths, summon the parties to a controversy, issue subpoenas

requiring the attendance and testimony of witnesses or the production of such
books, papers, contracts, records, statements of accounts, agreements, and
others as may be material to a just determination of the case;

35.3 To hold any person in contempt directly or indirectly and impose appropriate
penalties in accordance with law.

Any person committing any act of misbehavior in the presence of or so

near any member of the Commission or any Adjudicator as to obstruct or
interrupt the proceedings before the same, including disrespect toward said
officials, offensive acts toward others, or refusal to be sworn, or to answer
as a witness or to subscribe an affidavit or deposition when lawfully required
to do so, may be summarily adjudged guilty of direct contempt by said
officials and shall be punished by a fine not exceeding Five thousand pesos
(P5,000.00) or imprisonment not exceeding five (5) days, or both if it be
committed against the Commission or any of its members; and, if the offense
is committed against an Adjudicator, it shall be punishable by a fine not
exceeding One thousand pesos (P1,000.00) or imprisonment not exceeding one
(1) day, or both.

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 The person adjudged in direct contempt by the Adjudicator may appeal to the
Commission and the execution of the judgment shall be suspended pending
the resolution of the appeal upon the filing by such person of a bond on
condition that he/she will abide by and perform the judgment of the
Commission should the appeal be decided against him/her. Judgment of the
Commission on direct contempt is immediately executory and unappealable.
Indirect contempt shall be dealt with by the Commission or Adjudicator in the
manner prescribed under Rule 71 of the Revised Rules of Court;

35.4 To enjoin or restrain, after due notice and hearing, any actual or threatened
commission of any or all prohibited or unlawful acts or to require the
performance of a particular act in any dispute within its jurisdiction which, if
not restrained or performed forthwith, may cause grave or irreparable
damage to any party or render ineffectual any decision in favor of such party.
In no case shall a temporary or permanent injunction be issued except after a
finding of fact by the Commission, to the effect that:

(a) Prohibited or unlawful acts have been threatened and will be committed
and will be continued unless restrained, but no injunction or temporary
restraining order shall be issued on account of any threat, prohibited or
unlawful act, except against the person or persons, association or
organization making the threat or committing the prohibited or unlawful
act or actually authorizing or ratifying the same after actual knowledge
of the facts;

(b) Substantial and irreparable injury to complainant's property will follow;

(c) As to each item of relief to be granted, greater injury will be inflicted

upon complainant by the denial of relief than will be inflicted upon
defendants by the granting of relief;

(d) Complainant has no adequate remedy at law; and

(e) Public officers charged with the duty to protect complainant's property
are unable or unwilling to furnish adequate protection;

35.5 To determine, fix and collect reasonable amounts to be charged as fees and
charges necessary for its operations and the effective performance of its
functions: Provided, however, That all income generated from fees, charges,
and other collections shall be deposited with the National Treasury as income
of the general fund;

35.6 To call upon the Department for technical assistance when necessary in the
resolution of cases before it or the Regional Adjudicators;

35.7 To call upon the Philippine National Police, other law enforcement agencies,
and other instrumentalities of the government, if necessary, for the

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 enforcement of its decisions, resolutions, orders and other issuances functions;
and

35.8 To exercise such other powers as are implied, necessary, or incidental to carry
out the express powers granted to the Commission.

SECTION 36. Appeals. — Decisions, awards or orders of the Regional Adjudicators

shall be final and executory unless appealed to the Commission within fifteen (15)
calendar days from receipt of such decisions, awards or orders.

Subject to the Rules of Procedure as may be promulgated, the decision of the

Commission upon any disputed matter may be brought to the Court of Appeals in
accordance with Rule 43 of the Rules of Court.

SECTION 37. Execution of Decisions, Orders or Awards. — The Commission or any

Regional Adjudicator may, motu proprio or on motion of any interested party and
under such rules as may be duly promulgated, issue a writ of execution on an order,
award or judgment within five (5) years from the date it becomes final and executory,
and by independent action for the enforcement of the order, award or decision filed
with the RAB which issued the order, award or decision. The provisions of the Rules
of Court shall apply hereto in a suppletory manner.

The Commission shall appoint a Sheriff or such number of Sheriffs, in accordance

with the provisions of the civil service laws, rules and regulations, who shall be
responsible for the service and execution of all writs, summonses, and orders and
other processes of the Commission: Provided, That the existing HLURB sheriffs are
deemed qualified.

The Commission may designate special sheriffs and take any measure under existing
laws to ensure compliance with their decisions, orders or awards.

SECTION 38. Criminal Prosecution. — The criminal prosecution for violation of

housing laws and regulations shall be instituted before criminal courts having
appropriate jurisdiction.

SECTION 39. Organizational Structure and Staffing Pattern of the Commission. —

Subject to the approval of the DBM, the Commission shall determine its
organizational structure and create new divisions or units as it may deem necessary.

SECTION 40. Appointment of Officers and Employees. — The Commission shall

appoint its officers and employees in accordance with the civil service laws, rules and
regulations. The remuneration structure of the positions in the staffing pattern shall
strictly conform to RA 6758 or the Salary Standardization Law, as amended: Provided,
That, conformably with RA 6656, the incumbent officers and employees of HUDCC
and HLURB holding permanent appointments shall be given preference for
appointment to the new positions in the approved staffing pattern comparable to

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their former position, or in case there are not enough comparable positions, to
positions next lower in rank. Unless otherwise required in the exigency of public
service, no new employees shall be taken in until all permanent officers and
employees have been appointed, including temporary and casual employees who
possess the necessary qualification requirements, among which is the appropriate
civil service eligibility, for permanent appointment to positions in the approved
staffing pattern, in case there are still positions to be filled, unless such positions are
policy-determining, primarily confidential, highly technical in nature: Provided
further, That in no case shall this provision result in the diminution of the existing
salaries, allowances and benefits of the incumbent employees.

RULE V
NATIONAL HUMAN SETTLEMENTS BOARD

SECTION 41. Composition of the National Human Settlements Board. — The

National Human Settlements Board created under Section 21 of the Act shall act as
the single policy-making body and provide overall policy directions and program
development to the attached agencies. The Board shall be composed of the Secretary
of the Department as the Chairperson, and the following as members:

(a) The Director-General of NEDA or the duly designated Deputy Director-

General;

(b) The Secretary of Finance or the duly designated Undersecretary;

(c) The Secretary of Budget and Management or the duly designated

Undersecretary;

(d) The Secretary of Department of Public Works and Highways or the duly
designated Undersecretary;

(e) The Secretary of the Interior and Local Government or the duly
designated Undersecretary; and

(f) The Head of each attached agency, namely, HDMF, NHA, NHMFC,
SHFC and HSAC.

Provided, That the HDMF's corporate powers and functions shall continue to be
exercised by its own Board of Trustees, as provided for under RA 9679.
The Board shall issue its rules and procedure, including the participation of relevant
stakeholders in the development of policies and programs requiring the approval of
the Board. The Department shall provide the requisite technical and administrative
secretariat support services to the Chairman and members of the Board such as the
preparation of meeting materials, reportorial requirements, and various issuances,
documentation of meeting proceedings, and safekeeping of the records.

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 RULE VI
TRANSITORY PROVISIONS

SECTION 42. Implementing Authority. — The HUDCC Chairperson shall undertake

the implementation of the provisions of the Act and implement the necessary
organizational changes within the transition period or until a Department Secretary
has been appointed and has assumed office.

SECTION 43. Effectivity of Existing Policies, and Rules and Regulations. — All
existing policies, and rules and regulations of the HUDCC and the HLURB shall
continue to remain in full force and effect unless subsequently revoked, modified or
amended by the Department or the Commission as the case may be.

All applications for permits, licenses and other issuances pending upon the
effectivity of the Act and filed during the transition period shall continue to be acted
upon by the incumbents until transition shall have been completed.

All cases pending with the HLURB shall continue to be acted upon by the HLURB
Arbiters and all appeals by the Board of Commissioners until transition shall have
been completed and the Commission’s operations are in place. Thereafter, the
Regional Adjudicators and the Commission shall respectively assume jurisdiction
over these cases. The Decision of the Commission shall henceforth be appealable to
the Court of Appeals under Rule 43 of the Rules of Court.

SECTION 44. Transfer of Functions, Assets and Obligations. — All transfer of

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

Accordingly, the following dispositive actions shall be implemented within six (6)
months from the effectivity of the Act:

44.1 Land and other real property of the HUDCC and HLURB shall be transferred
to the Department and the Commission, respectively;

44.2 The allocation of existing equipment, funds, and other assets of the HUDCC
and HLURB shall be subject to the distribution of personnel to the Department
and the Commission;

44.3 The records and pertinent transactions of the HUDCC and HLURB shall be
distributed to the Department and the Commission, according to their
respective mandates; and

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44.4 The Department and the Commission shall cause the creation of additional
positions and augment their budget appropriations, as may be necessary, with
the approval of the DBM.

The Department shall, by virtue of the Act, be subrogated to all rights and assume
all the liabilities of the HUDCC and HLURB, except those that may hereafter be
transferred to or absorbed by the Commission.
SECTION 45. Absorption or Separation from Service of Employees of the
Consolidated Agencies. — The existing employees of HUDCC and HLURB shall
enjoy security of tenure and shall be absorbed by the Department or the HSAC, in
accordance with their staffing patterns and the selection process as prescribed under
RA 6656, otherwise known as the “Government Reorganization Law”.

Employees opting to be separated from the service as a consequence of the

consolidation and reconstitution under the provisions of the Act shall, within one (1)
month from their separation or phase out from the service, receive separation
benefits in accordance with existing laws. In addition, those who are qualified to
retire shall be allowed to retire and be entitled to all benefits provided, under any of
the existing retirement laws.

SECTION 46. Transition Period. — The transition period shall commence upon the
effectivity of this Rules and shall end on 31 December 2019. Thereafter the Act shall
be in full force and effect.

SECTION 47. Amendment of the Implementing Rules and Regulations. — This Rules
may be amended by the Department and Commission, in consultation with HDMF,
NHA, NHMFC, and SHFC, and other concerned agencies and affected stakeholders,
with the concurrence of DBM and CSC.

SECTION 48. Appropriations. — The amount necessary for the initial

implementation of the provisions of the Act shall be charged against the current
year's appropriations of the HUDCC and HLURB. Thereafter, such sums as may be
necessary for the continued implementation of the Act shall be included in the annual
General Appropriations Act. The Department shall include in its proposed budget
the necessary amount to enable it to achieve its mandate of providing adequate and
affordable housing to all Filipinos.

RULE VII
MISCELLANEOUS PROVISIONS

SECTION 49. Mandatory Review of the Implementation of the Act. — The

Department, in consultation with the pertinent government agencies and private
entities, shall conduct a review of the implementation of the Act at the end of the
third (3rd) year from the date of its effectivity and submit a report to Congress.

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SECTION 50. Separability Clause. — If, for any reason, any portion or provision of
this Rules shall be held inconsistent with or contrary to, or to have gone beyond the
provisions of the Act, the remaining provisions not affected thereby shall continue to
be valid and remain in full force and effect.
SECTION 51. Repealed Laws and Issuances. — Pursuant to Section 34 of the Act, EO
90, series of 1986, and EO 648, series of 1981, and all other laws and issuances
inconsistent with the Act are deemed repealed.

All executive orders, proclamations, board resolutions, administrative circulars and

orders, rules, regulations, and other issuances or any of their provisions which are
inconsistent with the Act and the provisions of this Rules are repealed, amended or
modified accordingly.

SECTION 52. Effectivity. — This Rules shall take effect fifteen (15) days after its
publication in the Official Gazette or two (2) newspapers of general circulation.

Approved, this ___ day of _______ 2019.

HUDCC HLURB

DBM CSC

In coordination with:

NHA SHFC

NHMFC HDMF

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