Urban Design Studio

5. xx
Module 6 – Pertinent Laws in Urban Design a. xx
b. xx
c. xx

LEARNING
OBJECTIVES
PERTINENT LAWS IN URBAN
After studying this module, you as a future Architect
should be able to: DESIGN
1. Identify the laws Urban Design and its REPUBLIC ACT NO. 7279 AN ACT TO PROVIDE FOR
salient provisions A COMPREHENSIVE AND CONTINUING URBAN
DEVELOPMENT AND HOUSING PROGRAM,
ESTABLISH THE MECHANISM FOR ITS I
TOPIC MPLEMENTATION, AND FOR OTHER PURPOSES.
OUTLINE
ARTICLE I TITLE, POLICY, AND PROGRAM
1. Pertinent Laws in Urban Design SECTION 1. Title. —
This Act shall be known as the "Urban
Development and Housing Act of 1992."

OVERVIEW SECTION 2. Declaration of State Policy and Program

Objectives. —
It shall be the policy of the State to
Module 6 serves as a xxxx. This module is good for 3 undertake, in cooperation with the private sector, a
hour lecture. comprehensive and continuing Urban Development
and Housing Program, hereinafter referred to as the
Program, which shall:
(a) Provide for the rational use and
ACTIVATING
development of urban land to:
PRIOR KNOWLEDGE 1. Equitable utilization of residential
lands in urban and urbanizable
Looking back at the lessons learned in previous module.
areas.
1. xx 2. Optimization of the use and
a. xx productivity of land and urban
b. xx resources.
c. xx 3. Development of urban areas conducive to
2. xx commercial and industrial activities.
a. xx 4. Reduction in urban dysfunctions.
b. xx 5. Access to land and housing.
c. xx
3. xx
(b) Uplift the conditions of the
a. xx
underprivileged and homeless citizens in
b. xx
urban areas and in resettlement areas.
4. xx (c) Adopt workable policies to regulate and
a. xx direct urban growth and expansion.
b. xx (d) Provide for an equitable land tenure
c. xx system

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 (e) Encourage more effective people's or memorial parks. The exemptions herein
participation in the urban development provided shall not apply when the use or
process; purpose of the abovementioned lands has
(f) Improve the capability of local ceased to exist.
government units in undertaking urban
development and housing programs and ARTICLE III NATIONAL URBAN DEVELOPMENT AND
projects. HOUSING FRAMEWORK
SECTION 6. Framework for Rational Development. —
ARTICLE II COVERAGE AND EXEMPTIONS There shall be a National Urban
Development and Housing Framework to be
SECTION 4. Coverage. — formulated by the Housing and Land Use Regulatory
The Program shall cover all lands in urban Board under the direction of the Housing and Urban
and urbanizable areas, including existing areas for Development Coordinating Council in coordination
priority development sites, and in other areas that with all local government units and other concerned
may be identified by the local government units as public and private sectors within one (1) year from
suitable for socialized housing. the effectivity of this Act. The framework shall refer
to the comprehensive plan for urban and urbanizable
SECTION 5. Exemptions. — areas aimed at achieving the objectives of the
The following lands shall be exempt from the Program. In the formulation of the Framework, a
coverage of this Act: review and rationalization of testing town and land
(a) Those included in the coverage of use plans, housing programs, and all other objectives
Republic Act No. 6657, otherwise known as and activities of government agencies and the
the Comprehensive Agrarian Reform Law; private sectors which may substantially affect urban
(b) Those actually used for national defense land use patterns, transportation and public utilities,
and security of the State; infrastructure, environment and population
(c) Those used, reserved or otherwise set movement shall be undertaken with the concurrence
aside for government offices, facilities and of the local government units concerned.
other installations, whether owned by the
National Government, its agencies and ARTICLE IV LAND USE, INVENTORY, ACQUISITION
instrumentalities, including government AND DISPOSITION
owned or-controlled corporations, or by the
local government units: Provided, however, SECTION 7. Inventory of Lands. —
That the lands herein mentioned, or portions Within one (1) year from the effectivity of
thereof, which have not been used for the this Act, all city and municipal governments shall
purpose for which they have been reserved conduct an inventory of all kinds and improvements
or set aside for the past ten (10) years from thereon within their respective localities. The
the effectivity of this Act, shall be covered by inventory shall include the following:
this Act; (a) Residential lands;
(d) Those used or set aside for parks, (b) Government-owned lands;
reserves for flora and fauna, forests and (c) Unregistered or abandoned and idle
watersheds, and other areas necessary to lands; and
maintain ecological balance or (d) Other lands. For planning purposes, the
environmental protection, as determined Housing and Urban Development
and certified to by the proper government Coordinating Council shall be furnished by
agency; and each local government unit a copy of its
(e) Those actually and primarily used for inventory which shall be updated every
religious, charitable, or educational three (3) years.
purposes, cultural and historical sites,
hospitals and health centers, and cemeteries

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SECTION 8. Identification of Sites for Socialized public domain. These lands shall be disposed of or
Housing. — utilized by the Government for such purposes that
After the inventory the local government conform with their land use plans. Expropriation
units and agaencies shall identify lands for socialized proceedings shall be instituted if, after the lapse of
housing and resettlement areas for the immediate one (1) year following receipt of notice of acquisition,
and future needs of the underprivileged and the owner fails to introduce improvements as
homeless in the urban areas, taking into defined in Section 3(f) hereof, except in the case of
consideration and degree of availability of basic force majeure and other fortuitous events.
services and facilities, their accessibility and Exempted from this provision, however, are
proximity of jobs sites and other economic residential lands owned by small property owners or
opportunities, and the actual number of registered those the ownership of which is subject of a pending
beneficiaries. litigation.

SECTION 9. Priorities in the Acquisition of Land. — SECTION 12. Disposition of Lands for Socialized
Lands for socialized housing shall be Housing. —
acquired in the following order: The National Housing Authority, with
(a) Those owned by the Government respect to lands belonging to the National
(b) Alienable lands of the public domain; Government, and the local government units with
(c) Unregistered or abandoned and idle respect to other lands within their respective
lands; localities, shall coordinate with each other to
(d) Those within the declared Areas for formulate and make available various alternative
Priority Development, Zonal Improvement schemes for the disposition of lands to the
Program sites, and Slum Improvement and beneficiaries of the Program. These schemes shall
Resettlement Program sites which have not not be limited to those involving transfer of
yet been acquired; ownership in fee simple but shall include lease, with
(e) Bagong Lipunan Improvement of Sites option to purchase, usufruct or such other variations
and Services or BLISS sites which have not as the local government units or the National
yet been acquired; and Housing Authority may deem most expedient in
(f) Privately-owned lands. carrying out the purposes of this Act.

SECTION 10. Modes of Land Acquisition. — SECTION 13. Valuation of Lands for Socialized
The modes of acquiring lands for purposes of Housing. —
this Act shall include, among others, community Equitable land valuation guidelines for
mortgage, land swapping, land assembly or socialized housing shall be set by the Department of
consolidation, land banking, donation to the Finance on the basis of the market value reflected in
Government, joint-venture agreement, negotiated the Zonal valuation, or in its absence, on the latest
purchase, and expropriation. For the purpose of real property tax declaration. For site already
socialized housing, government-owned and occupied by qualified Program beneficiaries, the
foreclosed properties shall be acquired by the local Department of Finance shall factor into the valuation
government units, or by the National Housing the blighted status of the lands as certified by the
Authority primary through negotiated purchase: local government unit or the National Housing
Provided, that qualified beneficiaries who are actual Authority.
occupants of the land shall be given the right of first
refusal. SECTION 14. Limitations on the Disposition of Lands
for Socialized Housing. —
SECTION 11. Expropriation of Idle Lands. — No land for socialized housing, including
All idle lands in urban and urbanizable areas, improvements or rights thereon, shall be sold,
as defined and identified in accordance with this Act, alienated, conveyed, encumbered or leased by any
shall be expropriated and shall form part of the

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beneficiaries as determined by the government registration of qualified Program beneficiaries in
agency concerned. accordance with the Framework.
Should the beneficiary unlawfully sell,
transfer, or otherwise dispose of his lot or any right SECTION 18. Balanced Housing Development.
thereon, the transaction shall be null and void. He The Program shall include a system to be
shall also lose his right to the land, forfeit the total specified in the Framework plan whereby developers
amortization paid thereon, and shall be barred from of proposed subdivision projects shall be required to
the benefits under this Act for a period of ten (10) develop an area for socialized housing equivalent to
years from the date of violation. at least twenty percent (20%) of the total subdivision
In the event the beneficiary dies before full area or total subdivision project cost, at the option
ownership of the land is vested on him, transfer to of the developer, within the same city or
his heirs shall take place only upon their assumption municipality, whenever feasible, and in accordance
of his outstanding obligations. In case of failure by with the standards set by the Housing and Land Use
the heirs to assume such obligations, the land shall Regulatory Board and other existing laws. The
revert to the Government for disposition in balanced housing development as herein required
accordance with this Act. may also be complied with by the developers
concerned in any of the following manner:
ARTICLE V SOCIALIZED HOUSING  Development of new settlement;
 Slum upgrading or renewal of areas for
SECTION15. Policy. priority development either through zonal
Socialized housing, as defined in Section 3 improvement programs or slum
hereof, shall be the primary strategy in providing improvement and resettlement programs;
shelter for the underprivileged and homeless.  Joint-venture projects with either the local
However, if the tenurial arrangement in a particular government units or any of the housing
socialized housing program is in the nature of agencies; or
leasehold or usufruct, the same shall be transitory  Participation in the community mortgage
and the beneficiaries must be encouraged to become program.
independent from the Program within a given period
of time, to be determined by the implementing SECTION 19.Incentives for the National Housing
agency concerned. Authority.
The National Housing Authority, being the
SECTION 16. Eligibility Criteria for Socialized Housing primary government agency in charge of providing
Program Beneficiaries. housing for the underprivileged and homeless, shall
To qualify for the socialized housing be exempted from the payment of all fees and
program, a beneficiary: charges of any kinds, whether local or national, such
 Must be a Filipino citizen; as income and real taxes.
 Must be an underprivileged and homeless
citizen, SECTION 20.Incentives for Private Sector
 Must not own any real property whether in Participating in Socialized Housing.
the urban or rural areas; and To encourage greater private sector
 Must not be a professional squatter or a participation in socialized housing and further
member of squatting syndicates. reduce the cost of housing units for the benefit of the
underprivileged and homeless, the following
SECTION 17. Registration of Socializing Housing incentives shall be extended to the private sectors:
Beneficiaries.  Reduction and simplification of
The Housing and Urban Development qualification and accreditation requirements
Coordinating Council, in coordination with the local for participating private developers;
government units, shall designed a system for the  Creation of one-stop offices in the different
regions of the country for the processing,

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 approval and issuance of clearances, permits government agencies concerned with
and licenses: Provided, That clearances, providing basic services to housing projects.
permits and licenses shall be issued within
ninety (90) days from the date of submission SECTION 22. Livelihood Component.
of all requirements by the participating To extent feasible, socialized housing and
private developers; resettlement projects shall be located near areas
 Simplification of financing procedures; and where employment opportunities are accessible.
 Exemption from the payment of the
following: SECTION 23. Participation of Beneficiaries.
(1) Project-related income taxes; The local government units, in coordination
(2) Capital gains tax on raw lands with the Presidential Commission for the Urban Poor
used for the project; ( and concerned government agencies, shall afford
3) Value-added tax for the project Program beneficiaries or their duly designated
contractor concerned; representatives an opportunity to be heard and to
(4) Transfer tax for both raw participate in the decision making process over
completed projects; and (5) Donor's matters involving the protection and promotion of
tax for lands certified by the local their legitimate collective interest which shall include
government units to have been appropriate documentation and feedback
donated to socialized housing mechanisms.
purposes.
SECTION 24. Consultation with Private Sector.
Opportunities for adequate consultation
SECTION 21. Basic Services. shall be accorded to the private sector involved in
Socialized housing or resettlement areas socialized housing project pursuant to this Act.
shall be provided by the local government unit or the
National Housing Authority in cooperation with the ARTICLE VI AREAS FOR PRIORITY DEVELOPMENT,
private developers and concerned agencies with the ZONAL IMPROVEMENT PROGRAM SITES AND
following basic services and facilities: SLUM IMPROVEMENT AND RESETTLEMENT
 Potable water; PROGRAMS
 Power and electricity and an adequate
power distribution system; SITES SECTION 25. Benefits.
 Sewerage facilities and an efficient and In addition to the benefits provided under
adequate solid waste disposal system; and existing laws and other related issuance to occupants
 Access to primary roads and transportation of areas for priority development, zonal
facilities. The provisions of other basic improvement program sites and slum improvement
services and facilities such as health, and resettlement program sites, such occupants
education, communications, security, shall be entitled to priority in all government projects
recreation, relief and welfare shall be initiated pursuant to this Act. They shall also be
planned and shall be given priority for entitled to the following support services:
implementation by the local government  Land surveys and titling at minimal cost;
unit and concerned agencies in cooperation  Liberalized terms on credit facilities and
with the private sector and the beneficiaries housing loans and one hundred percent
themselves. The local government unit, in (100%) deduction from every homebuyer's
coordination with the concerned national gross income tax of all interest payments
agencies, shall ensure that these basic made on documents loans incurred for the
services are provided at the most construction or purchase of the
costefficient rates, and shall set as homebuyer's house;
mechanism to coordinate operationally the  Exemption from the payment of
thrusts, objectives and activities of other documentary stamp tax, registration fees,

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 and other fees for the issuance of transfer or demolition orders involving
certificate of titles; underprivileged and homeless citizens, the
 Basic services as provided for in Section 21 following shall be mandatory:
of this Act; and  Notice upon the effected persons or
 Such other benefits that may arise from the entities at least thirty (30) days prior to the
implementation of this Act. date of eviction or demolition;
 Adequate consultations on the matter of
ARTICLE VII URBAN RENEWAL AND RESETTLEMENT settlement with the duly designated
representatives of the families to be
SECTION 26. Urban Renewal and Resettlement. resettled and the affected communities in
This shall include the rehabilitation and the areas where they are to be relocated;
development of blighted and slum areas and the  Presence of local government officials or
resettlement of Program beneficiaries in accordance their representatives during eviction or
with the provisions of this Act. demolition;
 Proper identification of all persons taking
SECTION 27. Action Against Professional Squatters part in the demolition;
and Squatting Syndicates.  Execution of eviction or demolition only
The local government units, in cooperation during regular office hours from Mondays to
with the Philippine National Police, the Presidential Fridays and during good weather, unless the
Commission for the Urban Poor (PCUP), and the affected families consent otherwise;
PCUP accredited urban poor organization in the area,  No use of heavy equipment for demolition
shall adopt measures to identify and effectively except for structures that are permanent
curtail the nefarious and illegal activities of and of concrete materials;
professional squatters and squatting syndicates, as  Proper uniforms for members of the
herein defined. Any person or group identified as Philippine National Police who shall occupy
such shall be summarily evicted and their dwellings the first line of law enforcement and observe
or structures demolished, and shall be disqualified to proper disturbance control procedures; and
avail of the benefits of the Program.  Adequate relocation, whether temporary
For purposes of this Act, professional or permanent: Provided, however, That in
squatters or members of squatting syndicates shall cases of eviction and demolition pursuant to
be imposed the penalty of six (6) years imprisonment a court order involving underprivileged and
of a fine of not less than Sixty thousand pesos homeless citizens, relocation shall be
(P60,000.00) but not more than One hundred undertaken by the local government unit
thousand pesos (P100,000), or both, at the discretion concerned and the National Housing
of the court. Authority with the assistance of other
SECTION 28. Eviction and Demolition. government agencies within forty-five (45)
Eviction or demolition as a practice shall be days from service of notice of final judgment
discouraged. Eviction or demolition, however, may by the court, after which period the said
be allowed under the following situations: order shall be executed:
 When persons or entities occupy danger
areas such as esteros, railroad tracks, SECTION 29. Resettlement.
garbage dumps, riverbanks, shorelines, Within two (2) years from the effectivity of
waterways, and other public places such as this Act, the local government units, in coordination
sidewalks, roads, parks, and playgrounds; with the National Housing Authority, shall
 When government infrastructure projects implement the relocation and resettlement of
with available funding are about to be persons living in danger areas such as esteros,
implemented; or railroad tracks, garbage dumps, riverbanks,
 When there is a court order for eviction shorelines, waterways, and in other public places as
and demolition. In the execution of eviction sidewalks, roads, parks, and playgrounds.

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 Sec. 33. Organization of Beneficiaries.
SECTION 30. Prohibition Against New Illegal Beneficiaries of the Program shall be
Structures. responsible for their organization into associations
It shall be unlawful for any person to to manage their subdivisions or places of residence,
construct any structure in areas mentioned in the to secure housing loans under existing Community
preceding section. After the effectivity of this Act, Mortgage Program and such other projects
the barangay, municipal or city government units beneficiaries to them. Subject to such rules and
shall prevent the construction of any kind of illegal regulations to be promulgated by the National Home
dwelling units of structures within their respective Mortgage Finance Corporation, associations
localities. The head of any local government unit organized pursuant to this Act may collectively
concerned who allows, abets or otherwise tolerates acquire and own lands covered by this Program.
the construction of any structure in violation of this Where the beneficiaries fail to form an association by
section shall be liable to administrative sanctions and among themselves, the National Home
under existing laws and to penal sanctions provided Mortgage Finance Corporation shall initiate the
for in this Act. organization of the same in coordination with the
Presidential Commission for the Urban Poor and the
ARTICLE VIII COMMUNITY MORTGAGE PROGRAM local government units concerned. No person who is
not a bona fide resident of the area shall be a
Sec. 31. Definition. member or officer of such association.
The Community Mortgage Program (CMP) is
a mortgage financing program of the National Home ARTICLE IX RELATED STRATEGIES
Mortgage Finance Corporation which assists legally Sec. 34. Promotion of Indigenous Housing Materials
organized associations of underprivileged and and Technologies.
homeless citizens to purchase and develop a tract of The local government units, in cooperation
land under the concept of community ownership. with the National Housing Authority, Technology and
The primary objective of the program is to assist Livelihood Resource Center, and other concerned
residents of blighted or depressed areas to own the agencies, shall promote the production and use of
lots they occupy, or where they choose to relocate indigenous, alternative, and low-cost construction
to, and eventually improve their neighborhood and materials and technologies for socialized housing.
homes to the extent of their affordability.
Sec. 35. Transport System.
Sec. 32. Incentives. The local government units, in coordination
To encourage its wider implementation, with the Departments of Transportation and
participants in the CMP shall be granted with the Communications, Budget and Management, Trade
following privileges or incentives: and Industry, Finance, and Public Works and
(a) Government-owned or -controlled Highways, the Home Insurance Guaranty
corporations and local government units, Corporation, and other concerned government
may dispose of their idle lands suitable for agencies, shall device a set of mechanisms including
socialized housing under the CMP through incentives to the private sector so that a viable
negotiable sale at prices based on transport system shall evolve and develop in the
acquisition cost plus financial carrying costs; urban areas. It shall also formulate standards
(b) Properties sold under the CMP shall be designed to attain these objectives:
exempted from the capital gains tax; and (a) Smooth flow of traffic;
(c) Beneficiaries under the CMP shall not be (b) Safety and convenience of travel;
evicted nor dispossessed of their lands or (c) Minimum use of land space;
improvements unless they have incurred (d) Minimum damage to the physical
arrangements in payments of amortizations environment; and
for three (3) months. (e) Adequate and efficient transport service
to the people and goods at minimum cost.

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 other government agencies in the formulation of
Sec. 36. Ecological Balance. national development programs that will stimulate
The local government units shall coordinate economic growth and promote socioeconomic
with the Department of Environment and Natural development in the countryside.
Resources in taking measures that will plan and
regulate urban activities for the conservation and ARTICLE X
protection of vital, unique and sensitive ecosystems, PROGRAM IMPLEMENTATION
scenic landscapes, cultural sites and other similar Sec. 39. Role of Local Government Units.
resource areas. To make the implementation of this The local government units shall be charged
function more effective, the active participation of with the implementation of this Act in their
the citizenry in environmental rehabilitation and in respective localities, in coordination with the
decision making process shall be promoted and Housing and Urban Development Coordinating
encouraged. The local government units shall Council, the national housing agencies, the
recommend to the Environmental and Management Presidential Commission for the Urban Poor, the
Bureau the immediate closure of factories, mines private sector and other nongovernment
and transport companies which are found to be organizations. They shall prepare a comprehensive
causing massive pollution. land use plan for their respective localities in
accordance with the provisions of this Act.
Sec. 37. Population Movements.
The local government units shall set up an Sec. 40. Role of Government Housing Agencies.
effective mechanism, together with the appropriate In addition to their respective existing
agencies like the Population Commission, the powers and functions, and those provided for in this
National Economic and Development Authority and Act, the hereunder mentioned housing agencies shall
the National Statistics Office, to monitor trends in perform the following:
the movements of population from rural to urban, (a) The Housing and Urban Development
urban to urban, and urban to rural areas. They shall Coordinating Council shall, through the key
identify measures by which such movements can be housing agencies, provide local government
influenced to achieve balance between urban units with necessary support such as:
capabilities and population, to direct appropriate (1) Formulation of standards and
segments of the population into areas where they guidelines as well as providing
can have access to opportunities to improve their technical support in the preparation
lives and to contribute to national growth and of town and land use plans;
recommend proposed legislation to Congress, if (2) In coordination with the National
necessary. Economic and Developmen
tAuthority and the National
The Population Commission, the National Economic Statistics Office, provide data and
and Development Authority, and the National information for forward planning by
Statistics Office shall likewise provided advanced the local government units in their
planning information to national and local areas, particularly on projections as
government planners on population projections and to the population and development
the consequent level of services needed in particular trends in their localities and the
urban and urbanizable areas. This service will include corresponding investment programs
early-warning systems on expected dysfunctions in a needed to provide appropriate types
particular urban area due to population increases, and levels of infrastructure, utilities,
decreases, or age structure changes. Sec. 38. Urban- services and land use patterns; and
rural Interdependence. To minimize rural to urban (3) Assistance in obtaining funds and
migration and pursue urban decentralization, the other resources needed in the urban
local government units shall coordinate with the development and housing programs
National Economic and Development Authority and in their areas of responsibility.

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  Proceeds from the date or disposition of alienable
(b) The National Housing Authority, upon public lands in urban areas; and
request of local government units, shall  Domestic and foreign investment or financing
provide technical and other forms of through appropriate arrangements like the build-
assistance in the implementation of their operateand-transfer scheme. Socialized Housing Tax
respective urban development and housing All local government units are hereby authorized to
programs with the objective of augmenting impose an additional one-half percent (0.5%) tax on
and enhancing local government capabilities the assessed value of all lands in urban areas in
in the provision of housing benefits to their excess of Fifty thousand pesos (P50,000).
constituents;
ARTICLE XII TRANSITORY PROVISIONS
(c) The National Home Mortgage Finance Morato. There shall be a moratorium on the eviction
Corporation shall administer the Community of all program beneficiaries and on the demolition of
Mortgage Program under this Act and their houses or dwelling units for a period of three
promulgate rules and regulations necessary (3) years from the effectivity of this Act.
to carry out the provisions of this Act; and
ARTICLE XIII COMMON PROVISIONS
(d) The Home Insurance Guaranty Penalty Clause.
Corporation shall design an appropriate Any person who violates any provision of this
guarantee scheme to encourage financial Act shall be imposed the penalty of not more than six
institutions to go into direct lending for (6) years of imprisonment or a fine of not less than
housing. Five thousand pesos (P5,000) but not more than One
hundred thousand pesos (P100,000), or both, at the
Sec. 41. Annual Report. discretion of the court.
The Housing and Urban Development
Coordinating Council and the local government units Appropriations.
shall submit a detailed annual report with respect to The amount necessary to carry out the
the implementation of this Act to the President and purposes of this Act shall be included in the annual
the Congress of the Republic of the Philippines. budget of implementing agencies in the General
Appropriations Act of the year following its
ARTICLE XI FUNDING enactment into law and every year thereafter.
Funding. Separability Clause.
Funds for the urban development and housing If for any reason, any provision of this Act
program shall come from the following sources: shall be included in the annual budget of
 A minimum of fifty percent (50%) from the annual implementing agencies in the General
net income of the Public Estate Authority. Appropriations Act of the year following its
 Proceeds from the disposition of illgotten wealth, enactment into law and every year thereafter.
not otherwise previously set aside for any other
purpose, shall be applied to the implementation of Repealing Clause.
this Act shall be administered by the National Home All laws, decrees, executive orders,
Mortgage Finance Corporation; proclamations, rules and regulations, and other
 Loans, grants, bequests and donations, whether issuances, or parts thereof which are inconsistent
from local or foreign sources; with the provisions of this Act, are hereby repealed
 Flotation of bonds, subject to the guidelines to be or modified accordingly.
set by the Monetary Board;
 Proceeds from the social housing tax and, subject Effectivity Clause.
to the concurrence of the local government units This Act shall take effect upon its publication
concerned, in at least two (2) national newspapers of general
circulation.

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 REPUBLIC ACT NO. 9653 AN ACT Coverage by Housing and Urban
ESTABLISHING REFORMS IN THE REGULATION OF Development Coordinating Council (HUDCC) are the
RENT OF CERTAIN RESIDENTIAL UNITS, PROVIDING Government Financial Institutions (GFI) and agencies
THE MECHANISMS THEREFOR AND FOR OTHER involved in the National Shelter Program (NSP) such
PURPOSES. as:
 Government Service Insurance System
Be it enacted by the Senate and House of (GSIS)  Social Security System (SSS)
Representative of the Philippines in Congress  Home Development Mutual Fund (HDMF)
assembled: This Act shall be known and cited as the or Pag IBIG Fund
"Rent Control Act of 2009".  National Home Mortgage Finance
Corporation (NHMFC)
Limit on Increases in Rent.  Social Housing Finance Corporation (SHFC)
After such period until December 31, 2013,  Home Guaranty Corporation (HGC)
the rent of any residential unit covered by this Act  National Housing Authority (NHA)
shall not be increased by more than seven percent Provided, That the original principal amount
(7%) annually as long as the unit is occupied by the of the housing loans shall not exceed Two
same lessee: Provided, further, That when the Million Five Hundred Thousand pesos
residential unit becomes vacant, the lessor may set (P2,500,000.00). That an interest rate of not
the initial rent for the next lessee: Provided, more than the interest of the original loan or
however, That in the case of boarding houses, more than twelve percent (12%) whichever
dormitories, rooms and bed spaces offered for rent is lower, shall be imposed upon the
to students, no increase in rental more than once per restructured loan:
year shall be allowed. Coverage All residential units
in the National Capital Region and other highly Provided, finally, That all corresponding
urbanized cities, the total monthly rent for each of penalties and surcharges which the NHMFC
which ranges from One peso (P1.00) to Ten thousand and SHFC may have to pay their funders as a
pesos (P10,000.00) and all residential units in all result of the implementation of this Act may
other areas, the total monthly rent for each of which be adjusted and condoned;
ranges from One peso (P1.00) to Five thousand pesos In the event that the borrower fails to pay
(P5,000.00) as of the effectivity date of this Act shall three (3) consecutive monthly amortization
be covered, without prejudice to existing contracts. during the term of the restructured loan, the
Penalty A fine of not less than Twentyfive thousand concerned GFI or housing agency may
pesos (P25,000.00) nor more than Fifty thousand pursue foreclosure proceedings on the
pesos (P50,000.00) or imprisonment of not less than property.
one (1) month and one (1) day to not more than six
(6) months, or both, shall be imposed on any person, REPUBLIC ACT NO. 9397 AN ACT AMENDING
natural or judicial, found guilty of violating any SECTION 12 OF REPUBLIC ACT NO. 7279,
provision of this Act. OTHERWISE KNOWN AS THE URBAN
DEVELOPMENT AND HOUSING ACT OF 1992, AND
FOR OTHER PURPOSES
REPUBLIC ACT NO. 9507 AN ACT TO ESTABLISH A
SOCIALIZED AND LOW-COST HOUSING LOAN SECTION 1. Section 12 of Republic Act No. 7279,
RESTRUCTURING AND CONDONATION PROGRAM, otherwise known as the "Urban Development and
PROVIDING THE MECHANISMS THEREFOR, AND FOR Housing Act of 1992," is hereby amended to read as
OTHER PURPOSES follows:

This Act shall be known as the "Socialized and Low- "SEC. 12. Disposition of Lands for Socialized
Cost Housing Loan Restructuring Act of 2008". Housing. - The National Housing Authority,

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with respect to lands belonging to the "f) The occupants have resided on
National Government, and the local the said lands subject to the
government units with respect to the other prohibitions provided in Section 30
lands within their respective localities, shall of this Act.
coordinate with each other to formulate and
make available various alternative schemes " SECTION 2. Separability Clause. –
for the disposition of lands to the If any part or provision of this Act shall be
beneficiaries of the Program. These schemes held unconstitutional or invalid, other provision
shall not be limited to those involving hereof that are not affected thereby shall continue
transfer of ownership in fee simple but shall to be in full force and effect.
include lease, with option to purchase,
usufruct or such other variations as the local SECTION 3. Repealing Clause. –
government units or National Housing All laws, presidential decrees, executive
Authority may deem most expedient in orders, rules, regulations, or parts thereof which are
carrying out the purposes of this Act." not consistent with this Act, are hereby repealed,
"Consistent with this provision, a scheme for amended or modified accordingly.
public rental housing may be adopted.
"Disposition of lands, including any SEC. 4. Effectivity. –
improvements thereon, owned by the This Act shall take effect fifteen (15) days
National Government or any of its agencies after its publication in at least two newspapers of
or instrumentalities and/or the local general circulation.
government units through direct negotiated
sale to the occupants thereof without need REPUBLIC ACT NO. 9341 AN ACT ESTABLISHING
of public bidding shall be allowed subject to REFORMS IN THE REGULATION OF RENT OF
the following conditions: CERTAIN RESIDENTIAL UNITS, PROVIDING THE
MECHANISMS THEREFOR AND FOR OTHER
"a) The lands are within a residential PURPOSES
zone as classified by the local
government unit concerned; SECTION 1. Short Title. –
"b) The lands are certified to be for This Act shall be known and cited as the
socialized housing purpose by the "Rent Control Act of 2005."
Housing and Urban Development
Coordinating Council; SECTION 3. Limit on Increases in Rent. –
"c) The occupants are qualified The rent of any residential unit covered by
beneficiaries in accordance with this Act shall not be increased by more than ten
Section 16 and are registered as percent (10%) annually as long as the unit is occupied
such in accordance with Section 17 by the same lessee. When the residential unit
of this Act; becomes vacant, the lessor may set the initial rent
"d) The cost of said lands shall be for the next lessee.
made affordable to the
beneficiaries, taking into SECTION 5. Rent and Requirement of Bank Deposit.–
consideration their income and land Rent shall be paid in advance within the first
valuation required in Section 13 of five (5) days of every current month or the beginning
this Act; of the lease agreement unless the contract of lease
"e) Any subsequent disposition of provides for a later date of payment. The lessor
the said land shall be subject to the cannot demand more than one (1) month advance
limitations provided in Section 14 of rent. Neither can he demand more than two (2)
this Act; and months deposit which shall be kept in a bank under
the lessor's account name during the entire duration

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of the lease agreement. Any and all interest that shall provision not otherwise affected shall remain valid
accrue therein shall be returned to the lessee at the and subsisting.
expiration of the lease contract. SECTION 16. Repealing Clause. –
Any law, presidential decree or issuance, executive
SECTION 6. Assignment of Lease or Subleasing. - order, letter of instruction, administrative order, rule
Assignment of lease or subleasing of the or regulation contrary to or inconsistent with the
whole or any portion of the residential unit, including provisions of this Act is hereby repealed, modified or
the acceptance of boarders or bedspacers, without amended accordingly.
the written consent of the owner/lessor is
prohibited. SECTION 17. Effectivity Clause. –
SECTION 8. Prohibition Against Ejectment by This Act shall take effect beginning fifteen
Reason of Sale or Mortgage. – (15) days after its complete publication in at least
No lessor or his successor-ininterest shall be two (2) newspapers of general circulation until 31
entitled to eject the lessee upon the ground that the December 2008.
leased premises
have been sold or mortgaged to a third person
regardless of whether the lease or mortgage is REPUBLIC ACT NO. 8368 AN ACT REPEALING
registered or not. PRESIDENTIAL DECREE NO. 772, ENTITLED
PENALIZING SQUATTING AND OTHER SIMILAR
SECTION 9. Rent-to-Own Scheme. – ACTS
At the option of the lessor, he or she may
engage the lessee in a written rent-to-own This Act shall be known as the "AntiSquatting Law
agreement that will result in the transfer of Repeal Act of 1997."
ownership of the particular dwelling in favor of the
latter. Such an agreement shall be exempt from the Repeal. Presidential Decree No. 772, entitled
coverage of Section 3 of this Act. "Penalizing Squatting and Other Similar Acts" is
hereby repealed.
SECTION 11. Coverage of this Act. –
All residential units in the National Capital Effect on pending cases. All pending cases under the
Region and other highly urbanized cities the total provisions of Presidential Decree No. 772 shall be
monthly rent for each of which does not exceed Ten dismissed upon the effectivity of this Act.
thousand pesos (P10,000.00) and all residential units
in all other areas the total monthly rent for each of Effect on Republic Act No. 7279. Nothing herein shall
which does not exceed Five thousand pesos be construed to nullify, eliminate or diminish in any
(P5,000.00) as of the effectivity date of this Act shall way Section 27 of Republic Act No. 7279 or any of its
be covered, without prejudice to existing contracts. provisions relative to sanctions against professional
squatters and squatting syndicates.
SECTION 12. Penalties. –
A fine of not less than Five thousand pesos Effectivity. This Act shall take effect thirty (30) days
(P5,000.00) nor more than Fifteen thousand pesos after its publication in two (2) newspapers of
(P15,000.00) or imprisonment of not less than one national circulation.
(1) month and one (1) day to not more than six (6)
months or both shall be imposed on any person, PRESIDENTIAL DECREE No. 772 August 20, 1975
natural or juridical, found guilty of violating any PENALIZING SQUATTING AND OTHER SIMILAR
provision of this Act. ACTS

SECTION 15. Separability Clause. – SECTION 1. Any person who, with the use of force,
If any provision or part hereof is held invalid intimidation or threat, or taking advantage of the
or unconstitutional, the remainder of the law or the absence or tolerance of the landowner, succeeds in

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occupying or possessing the property of the latter  A borrower must not have availed of any
against his will for residential commercial or any previous condonation program from any
other purposes, shall be punished by an government institution or agency involved in
imprisonment ranging from six months to one year the National Shelter Program; and
or a fine of not less than one thousand nor more than  The corresponding penalties due to the
five thousand pesos at the discretion of the court, funders of the NHMFC on all delinquent
with subsidiary imprisonment in case of insolvency. accounts under its management shall
If the offender is a corporation or association, the likewise be condoned up to the extent paid
maximum penalty of five years and the fine of five by individual borrowers.
thousand pesos shall be imposed upon the
president, director, manager or managing partners Amendatory clause. –
thereof. To ensure the continuity of this Act, the
Home Development Mutual Fund (Pag-ibig
SECTION 2. This decree shall take effect immediately. Fund) which is a major financing institution
of the National Shelter Program is hereby
granted the power to condone. Sec. 12 of
REPUBLIC ACT NO. 8501 AN ACT TO RESCUE THE Presidential Decree No. 1752, as amended
NATIONAL SHELTER PROGRAM OF THE by Republic Act No. 7742, is hereby further
GOVERNMENT BY CONDONING THE PENALTIES ON amended to read as follows:
ALL OUTSTANDING/DELINQUENT HOUSING LOAN
ACCOUNTS WITH ANY OF THE GOVERNMENT "SEC. 12. Powers of the Board. –
INSTITUTIONS AND AGENCIES INVOLVED IN THE The Board shall have the following powers:
NATIONAL SHELTER PROGRAM AND BY "(a) To formulate policies, rules and
AMENDING PRESIDENTIAL DECREE NO. 1752, AS regulations to carry out effectively the
AMENDED functions of the Fund under this Act;
"(b) To direct the operations and
This Act shall be known as the "Housing Loan administration of the Fund;
Condonation Act of 1998. "(c) To authorize expenditures of the Fund in
the interest of effective administration and
Condonation clause. operations, to adopt from time to time the
 All unpaid penalties on housing loans from budgets for said purposes;
any of the government institutions and "(d) To condone, in whole or in part,
agencies involved in the National Shelter penalties imposed on loans of
Program of the Government, including but membersborrowers of the fund who for
not limited to the Government Service justifiable reasons, failed to pay on time any
Insurance System (GSIS), Social Security obligation due to the Fund subject to the
System (SSS), Home Development Mutual following requirements or conditions:
Fund (Pagibig Fund), National Home  "That a member-borrower may
Mortgage Finance Corporation (NHMFC), apply only once for the condonation
and the National Housing Authority (NHA), of penalties on the entire loan
are hereby condoned: Provided, That all due amount.
and demandable arrearages composed of  "That the loan amount must have
the principal and interest are restructured been on arrears for a period of at
and paid within the remaining period of the least two (2) years.
loan;  "That the annual total family
 In the event that a borrower is able to pay income shall not be more than Three
only part of his/her due and demandable Hundred Thousand pesos
arrearages, only the penalties corresponding (P300,000.00). "Such exclusive
to the portion paid shall be condoned; power to condone shall likewise

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 apply to penalties imposed on THE NATIONAL HOME MORTGAGE
employers who justifiably fail to FINANCE CORPORATION (NHMFC) AND
remit when due the required THE HOME INSURANCE AND GUARANTY
contributions of their employees; CORPORATION (HIGC), IDENTIFYING
"(e) To approve appointments of personnel; OTHER SOURCES OF FUNDING AND
and APPROPRIATING FUNDS FOR THE
"(f) To exercise such powers as may be PURPOSES.
necessary to carry into effect the powers and
accomplish the purposes for which the Fund SECTION 1. Title.
is established." This Act shall be known as the
"Comprehensive and Integrated Shelter
Applicability on delinquent accounts due to Financing Act of 1994."
defective housing units.
This Act shall likewise apply to Sec. 2. Declaration of Policy.
borrowers who failed or refused to pay their It is hereby declared a policy of the
monthly amortizations due to structurally State to undertake, in cooperation with the
defective or substandard housing units private sector, a continuing program of
and/or subdivisions lacking in basic urban land reform and housing which will
amenities such as water, light, drainage, make available, at affordable cost, decent
good roads and others and as required by housing and basic services to
law. Implementing rules and regulations. All underprivileged and homeless citizens in
government institutions and agencies urban centers and resettlement areas. In
involved in the national shelter program, recognition of the role of housing as catalyst
including but not limited to those mentioned of economic growth and development, it is
in Sec. 2, are hereby required to promulgate hereby declared a state policy to strengthen,
the implementing rules and regulations promote and support the component
within sixty (60) days after the effectivity of activities of housing production and finance.
this Act. Repealing clause. All laws, executive Sec. 3. Statement of Objectives. Towards this
orders, rules or regulations, or any part end, the State shall:
thereof, inconsistent with any provision of (a) Ensure continuous funding
this Act are hereby repealed or modified support to vigorously implement the
accordingly. government's programs for urban
Section 7. Effectivity clause. This Act and rural housing, resettlement, the
shall take effect fifteen (15) days after its development of sites and services,
complete publication in the Official Gazette and the renewal of blighted areas;
or in at least two (2) national newspapers of (b) Enhance the capability of low-
general circulation. income groups to acquire decent
and low-cost housing units through
REPUBLIC ACT NO. 7835 AN ACT the introduction of support
PROVIDING FOR A COMPREHENSIVE AND mechanisms and facilities which
INTEGRATED SHELTER AND URBAN shall render affordable such
DEVELOPMENT FINANCING PROGRAM BY acquisitions;
INCREASING AND REGULARIZING THE (c) Provide for a strong and
YEARLY APPROPRIATION OF THE MAJOR sustainable housing finance
COMPONENTS OF THE NATIONAL SHELTER program with complementary
PROGRAM, INCLUDING THE ABOT-KAYA support systems, which will pump
PABAHAY FUND UNDER REPUBLIC ACT NO. prime, build up and strengthen
6846, AUGMENTING THE AUTHORIZED available sources of cheap and long-
CAPITAL STOCK AND PAID-UP CAPITAL OF term capital;

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 (d) Increase the public and private families displaced from sites earmarked for
sectors' participation in the government infrastructure projects
investment of their funds into the (b) Medium-Rise Public and Private Housing.
mainstream of housing finance for This shall entail the construction of medium-
developmental and end-user rise residential buildings by the government
financing requirements of the and/or private developers in all high-density
National Shelter Program; urban areas of the country to maximize the
(e) Enjoin the active participation of utilization of scarce, high-cost urban land,
the local government units in the except in areas where there are existing
socialized housing programs arrangements on housing and/or land
through adequate measures for utilization prior to the effectivity of this Act.
housing development in their Implementation of this program shall be
respective areas; carried out by the following agencies:
(f) Strengthen the capital base and (1) The National Housing Authority
optimize the resources of the (NHA).
National Government and the (2) The National Home Mortgage
government's housing institutions Finance Corporation (NHMFC).
towards a balanced, coordinated (3) The Local Government Unit (LGU)
and integrated shelter delivery or the Public Estates Authority
system; (PEA). (4) The Presidential
(g) Serve the housing requirement of Commission for the Urban Poor
all the underprivileged and those (PCUP).
gainfully employed but are not
members of any funding agencies (c) Community Mortgage Program. Under
such as GSIS, SSS, and Pag-IBIG; and R.A. No. 7279, this program, through the
(h) Focus the government's full National Home Mortgage Finance
financial, technical and manpower Corporation (NHMFC), shall assist organized
resources in addressing the shelter community associations to acquire tenure
needs of the lowest thirty percent and ownership of the land they are presently
(30%) of the population and with the occupying adverse against the interests of
private sector's cooperation, the landowners.
higher socioeconomic percentiles of (d) Cost Recoverable Programs. These
our country's population. programs shall involve the development of
sites with housing component and the
Sec. 4. National Shelter Program provision of serviced homelots through
Implementation. Consistent with the joint-venture schemes with the private
aforementioned policy and objectives, the sector or local government units.
Housing and Urban Development
Coordinating Council (HUDCC), through the (e) Local Housing. To ensure the equitable
respective agencies, shall intensify the distribution of housing benefits across the
implementation of the vital components of country, the NHA is hereby tasked to
the National Shelter Program requiring implement costrecoverable socialized
government budgetary assistance as housing projects in selected urban and
follows: urbanizable areas in all congressional
(a) Resettlement Program. This program districts.
shall involve land acquisition and site
development by the National Housing Sec. 5. Trust Fund for the National Housing Authority.
Authority to generate serviced homelots for To enable the National Housing Authority to
carry out the programs mandated under this Act,

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specifically the Medium-Rise Public and Private Bank Financed Housing Sector
Housing and the Local Housing Programs, a Trust Project is hereby converted to
Fund to be managed and administered by the NHA is equity." Sec. 7. Capitalization of
hereby created. The mechanics of said Trust Fund Home Insurance and Guaranty
shall be formulated by the NHA, the Department of Corporation (HIGC). The authorized
Finance, the Department of Budget and capital stock of the HIGC is hereby
Management and other concerned agencies in increased from One billion pesos
accordance with pertinent policies and subject to (P1,000,000,000) to Two billion five
auditing and accounting procedures of the hundred million pesos
Commission on Audit. (P2,500,000,000) to strengthen the
capability of the Corporation in the
Sec. 6. Capitalization of National Home Mortgage provision of guarantee, loan/credit
Finance Corporation (NHMFC). insurance and other incentives to
The authorized capital stock of the NHMFC is assist home building/development
hereby increased from Five hundred million pesos and to sustain housing finance:
(P500,000,000) to Five billion five hundred million Provided, however, That the
pesos (P5,500,000,000) to expand its leveraging aggregate amount of the
capability based on the volume of mortgage loans outstanding guaranty obligations
being serviced, to improve its profitability by shall not, at any one time, exceed
reducing the average cost of its funds made available twenty (20) times the capital and
for home-lending programs, and to enable the surplus of the HIGC. Accordingly,
NHMFC to maintain the debt-to-equity ratio of 10:1. Sections 3 and 5 of Executive Order
Thus, No. 535 are hereby amended to read
Section 3 of Presidential Decree No. as follows: "
1267 is hereby amended to read as
follows: SEC. 3. The authorized capital of the Corporation
shall be Two billion five hundred million pesos
SEC. 3. Capitalization. The (P2,500,000,000), divided into Two million five
Corporation shall have an hundred thousand (2,500,000) shares of common
authorized capital stock of Five stocks, with a par value of One thousand pesos
billion five hundred million pesos (P1,000) per share to be fully subscribed and paid by
(P5,500,000,000) divided into Five the Government of the Republic of the Philippines."
million five hundred thousand "There shall be a continuing annual appropriation of
(5,500,000) shares of common at least Three hundred million pesos (P300,000,000)
stocks with a par value of One starting 1995 and subsequently thereafter until the
thousand pesos (P1,000) per share, entire authorized capital stock of the Corporation
to be fully subscribed and paid by shall have been paid in full. "
the Government of the Republic of
the Philippines. "There shall be a SEC. 5. The Republic of the Philippines hereby
continuing annual appropriation to guarantees to payment by the Corporation both of
be remitted to the Corporation the principal sums and interests of the bonds,
starting from calendar year 1995, debentures, collateral, notes or other such
and subsequently thereafter until obligations of the Corporation, issued or incurred by
the entire authorized capital stock virtue of its Charter and this Executive Order and
shall have been fully paid: Provided, shall pay such principal sums and interest in the
however, That the National event that the Corporation fails to do so: Provided,
Government loan relent to the however, That the aggregate amount of the
corporation in the amount of outstanding obligations shall not, at any one time,
US$76.73 Million under the World exceed twenty (20) times the capital and surplus of

Module 6 –Pertinent Laws in Urban Design | Page 16 of 28

the Corporation. "In such event, the Republic of the P200 Million—Amortization support; and
Philippines shall succeed to all the PERTINENT LAWS P100 Million—Development financing.
16 rights of the holders of such bonds, debentures,
collateral, notes or other instruments to the extent The Housing and Urban Development
of the payments made, unless the sums so paid by Coordinating Council (HUDCC) shall, from time to
the Republic of the Philippines shall be refunded by time, determine the income ceilings and the
the Corporation within a reasonable time." loanable amounts for both levels (a) and (b)
borrowers and the socialized/low-cost housing limit
Sec. 8. Expanding the Scope and Usage of the Abot- eligible for development financing.
Kaya Pabahay Fund. The Abot-Kaya Pabahay Fund shall bear the
To be more responsive to the need of cost of its administration and development in such
enhancing affordability of low-income families to amount and/or limits as the administering agencies
acquire housing and to provide a strong support for shall deem appropriate, but not exceeding three
the operation of a secondary mortgage market percent (3%) of the net assets of the previous year.
system by the NHMFC as a stable source of long-term Expenses for organization and initial operation shall
funds for housing finance, the Abot-Kaya Pabahay be provided by the administering agencies as
Fund shall be made a continuing support system of advances, subject to reimbursement.
the National Shelter Program, with its scope, usage
and coverage accordingly expanded. chan robles Sec. 9. Appropriations by the National Government.
virtual law library The existing total budgetary The corresponding amounts specified
allocation of Two Billion Five Hundred Million Pesos hereunder shall be appropriated annually for a
(P2,500,000,000) of the Abot-Kaya Pabahay Fund period of five (5) years or until such time that the
under Republic Act No. 6846 shall be increased to total fund requirement provided for in this Act shall
Five Billion Five Hundred Million Pesos have been fully released specifically for the following
(P5,500,000,000) and shall be appropriated until programs:
such time that the total funding required under this (a) Five Billion and Two Hundred Million
Act shall have been released. Pesos (P5,200,000,000) to finance the
a) Additional One Hundred Million Pesos Resettlement Program under Section 4(a) of
(P100,000,000) annually to the cash flow this Act;
guarantee to extend the mortgage insurance (b) Three Billion Pesos (P3,000,000,000) as
coverage for housing loans within the lowest subsidy for land acquisition, construction
interest loan package under the Unified and implementation of the Medium-Rise
Home Lending Program as a cushion against Public and Private Housing Program
loan delinquency and ensure a viable cash mandated under Section 4(b) of this Act;
flow for agencies extending housing loans. (c) Twelve Billion Seven Hundred Eighty
b) Annual allocation of Five Hundred Million Million Pesos (P12,780,000,000) for the
Pesos (P500,000,000) as liquidity and community mortgage program under
interest/subsidy support to the secondary Section 4(c) of this Act;
mortgage market operation of NHMFC to (d) Two Billion Five Hundred Forty-Two
serve as an alternative mechanism for Million Pesos (P2,542,000,000) for the cost
sourcing housing funds, tapping in the recoverable program under Section 4(d) of
process private and public long-term this Act; and
development funds. The Abot-Kaya Pabahay (e) Three Billion Pesos (P3,000,000,000) for
Fund shall be allocated annually among its the Local Housing Program under Section
various components in the following 4(e) of this Act.
amounts:
P300 Million—Cash flow guarantee; There shall be a continuing annual
P500 Million—Interest subsidy and liquidity appropriation in the total amount of not less
support; than Five Billion Pesos (P5,000,000,000)

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 starting from the fiscal year 1995 and every Mortgage Finance Corporation; and
fiscal year thereafter until such time that the twenty percent (20%) for land banking
total funding requirement under this Act and development to be administered by
shall have been fully released: Provided, the National Housing Authority:
however, That any fund in excess of the total Provided, That not more than one
funding requirements under this Act that percent (1%) of the respective
may be derived from any or all of the sources allocations hereof shall be used for the
provided herein, shall be used to augment administrative expenses: Provided,
the NHA's Resettlement Program fund to further, That incremental revenues not
cushion the impact of displacement arising appropriated in 1994 and 1995 shall be
from eviction and demolition as provided in carried over to succeeding years until
Section 28 of R.A. No. 7279, to wit: allocations hereinprovided shall have
(a) When persons or entities occupy been fully exhausted."
danger areas such as esteros, (b) (b) Forty percent (40%) of the
railroad tracks, garbage dumps, river mandatory fifty percent (50%) share of
banks, shorelines, waterways, and the National Government from the
other public places such as annual aggregate gross earnings of the
sidewalks, roads, parks and Philippine Amusement and Gaming
playgrounds; Corporation (PAGCOR), as provided for
(b) When government infrastructure in Section 12 of Presidential Decree No.
projects with available funding are 1869, beginning 1996.
about to be implemented; or (c) (c) Twelve percent (12%) of all the
(c) When there is a court order for proceeds of any sale, after deducting all
eviction and demolition. expenses related to the sale, of portions
Sec. 10. Fund Sources. of Metro Manila military camps shall be
The National Government is hereby used to finance mass social housing
mandated to allocate and appropriate the necessary projects for underprivileged and
funds for the continuing requirements of this Act, homeless citizens of the country.
including whatever funds which may be made Section 8 of Republic Act No. 7227,
available from, but not limited to, the following therefore, is hereby amended
sources: accordingly.
(A) Proceeds from documentary stamp tax: (d) (d)All fund sources outlined in Republic
Provided, That Section 22(a) of Republic Act No. 7660 Act No. 7279, not accruing to the local
shall be amended to read as follows: government units, to wit:
"SEC. 22. The incremental revenues from (1) A minimum of fifty percent (50%)
the increase in the documentary stamp taxes from the annual net income of the
under this Act shall be set aside for the Public Estates Authority to be used
following purposes: by the National Housing Authority to
(a) Twenty-five percent (25%) of the carry out its program of land
incremental revenues in 1994 and 1995 acquisition for resettlement
under this Act shall be automatically purposes;
appropriated for the Unified Home (2) Proceeds from illgotten wealth
Lending Program under Executive Order not otherwise previously set aside
No. 90 particularly for mass-socialized for any other purpose;
housing to be allocated as follows:fifty (3) Loans, grants, bequests and
percent (50%) for mass-socialized donations, whether from local or
housing; thirty percent (30%) for the foreign sources; and
community mortgage program
administered by the National Home

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 (4) Proceeds from the sale or programs for the succeeding year not later than the
disposition or alienable public lands first quarter of the current year.
in urban areas.
(e)Proceeds from forfeited customs bonds; Sec. 14. Sunset Review.
and chan robles virtual law library (f) A As the need arises, the Congress shall
maximum of fifty percent (50%) of savings conduct a sunset review of the accomplishments and
from the budgeted amount for debt impact of the National Shelter Program as well as the
servicing. performance of its implementing agencies for
purposes of determining whether or not the
Sec. 11. Other Fund Sources. programs and the corresponding appropriations
The following non-budgetary funding mentioned in this Act deserve to be continued based
sources shall be used to augment those mentioned on a cost benefit analysis thereof. If the result of the
in the preceding section in the implementation of a review is unfavorable to any program or its
Comprehensive and Integrated Shelter and Urban appropriate implementing program, then the
Development Financing Program: Committee of Congress that has legislative
(a) Ten percent (10%) of the mandatory jurisdiction over such entity shall not report
annual contributions by Philippine Charity favorably any bill or resolution which authorizes the
Sweepstakes Office to the charity fund as provided enactment of a new budget authority on such entity.
for in Section 6 of R.A. No. 1169 shall be channeled For purposes of this Act, the term "sunset
to socialized and lowcost housing; review" shall mean, with respect to any government
(b) All unused agri-agra allocation funds program, a systematic evaluation by the committees
from banks in the preceding year shall be invested in of the Senate and House of Representatives which
socialized and low-cost housing: Provided, That the have legislative jurisdiction over such programs, with
used agri-agra portion has been solely devoted to the assistance of appropriate agencies and
agricultural or agrarian reform credit; and congressional support agencies, to determine the
(c) The Bangko Sentral ng Pilipinas shall merits of the program, justify its continuation rather
make available its rediscounting facilities to than termination or its continuation at a level less
institutions or entities providing financing for than, equal to, or greater than the existing level.
socialized and low-cost housing in amounts and rates Such review shall be undertaken in the scope and the
to be determined by the Monetary Board, taking into detail the committee having jurisdiction deems
consideration the policy of the State as enunciated in appropriate and shall include, but not limited to, an
this Act. assessment of the degree to which the original
objective of the program has been achieved, of the
Sec. 12. Audit. problem it was intended to address, and the costs
The Commission on Audit shall be the ex- and benefits of the program.
officio Auditor of all the funds provided for in this Act
and is, accordingly, empowered to designate and Sec. 15. Implementing Rules and Regulations.
appoint its representative(s) and other subordinate The HUDCC shall promulgate rules and
personnel to perform such necessary audit duties as regulations necessary for the implementation of this
the Commission shall direct. They shall be Act.
responsible to and shall only be removed by the
Commission on Audit. Sec. 16. Repeal.
All laws, decrees, executive orders,
Sec. 13. Reports and Funding Program. proclamations, rules and regulations and the
The National Shelter Agencies are hereby issuances, or parts thereof which are inconsistent
mandated to submit semi-annual reports of their with the provisions of this Act, are hereby repealed,
operations, fund usage and performance to the amended or modified accordingly.
Office of the President and Congress. They shall
likewise submit to Congress their plans and funding Sec. 17. Separability.

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 If for any reason, any provision of this Act is Sections herein under their respective
declared invalid or unconstitutional, the remaining Executive Order are just a few of the existing
provisions not affected thereby shall continue to be Sections of the following EO. Sections presented in
in full force and effect. the discussion below are selected based on their
importance in Urban Design.
Sec. 18. Effectivity.
This Act shall take effect fifteen (15) days EXECUTIVE ORDER NO. 20 REAFFIRMING MASS
after its complete publication in at least two (2) HOUSING AS A CENTERPIECE PROGRAM IN THE
national newspapers of general circulation. POVERTY ALLEVIATION EFFORTS OF THE
GOVERNMENT AND FURTHER STRENGTHENING
THE HOUSING AND URBAN DEVELOPMENT
REPUBLIC ACT NO. 8437 AN ACT COORDINATING COUNCIL
PROVIDING FOR THE STABILIZATION AND
REGULATION OF RENTALS OF CERTAIN Section 1. Reiterating and Strengthening the
RESIDENTIAL UNITS, AND FOR OTHER PURPOSES, Functions of the HUDCC. –
AS AMENDED Pursuant to existing laws, the HUDCC shall
have the following primary powers and functions:
1. Serve as the sole lead agency to assist the
Be it enacted by the Senate and House of President and the Presidential Commission
Representatives of the Philippines in Congress for Mass Housing (PCMH) in the formulation
assembled: and implementation of the national
objectives, policies, and strategies for
Section 1. Beginning January 1, 1998 and for a housing and urban development;
duration of four (4) years thereafter ending on 2. Serve as the sole lead agency to assist the
December 31, 2001, monthly rentals of all residential President and the Presidential Commission
units covered by Batas Pambansa Blg. 877, shall not for Mass Housing (PCMH) in the formulation
be increased by the lessor by more than the rates and implementation of the national
herein provided for: objectives, policies, and strategies for
PERIOD MAXIMUM INCREASE housing and urban development;
January 1, 1998 - December 31, 1998 Fifteen 3. Encourage the maximum participation of
percent (15%) the private sector in all aspects of housing
January 1, 1999 - December 31, 1999 Fifteen and urban development;
percent (15%) January 1, 2000 - December 4. Formulate the basic policies, guidelines
31, 2000 Fifteen percent (15%) and implementing mechanisms for the
January 1, 2001 - December 31, 2001 Fifteen disposal or development of acquired or
percent (15%) existing assets of the key housing agencies
Provided, That the basis for the that are not required for the
maximum increase herein accomplishment of their basic mandates; 5.
authorized for the four-year period Identify, plan and secure local and foreign
shall be the actual monthly rental as funding for housing programs and projects;
of December 31, 1997: 6. Provide directions to the Housing and
Provided, further, That the increase Land Use Regulatory Board (HLURB) to
authorized herein shall be ensure rational land use for the equitable
cumulative and compounded. distribution and enjoyment of development
benefits; 7. Recommend new legislation and
Section 2. This Act shall take effect on January 1, amendments to existing laws as may be
1998, following its publication in at least two (2) necessary for the attainment of
newspapers of general circulation. government’s objectives in housing; and

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8. Undertake other functions as provided by hereof. Thus, notwithstanding the provisions
existing laws. of Administrative Orders, rules, regulations
Section 2. Administrative. and issuances of Department Secretaries to
Relationship between the HUDCC the contrary, the local government unit
and Housing Agencies. – The HUDCC shall concerned and each and each of the
exercise administrative supervision over the agencies listed in Section 6 hereof shall,
following housing agencies which remain to where feasible, accept and process such
be attached to it for purposes of policy and applications without requiring the
program coordination: submission of any housing-related
1. National Housing Authority (NHA) certifications, clearance or permit from
2. National Home Mortgage and another agency.
Finance Corporation (NHMFC)
3. Home Development Mutual Fund Section 3. Regional One-Stop Offices and
(HDMF) Designation of Responsible Officers –
4. Housing and Land Use Regulatory The Secretaries of the Department
Board (HLURB) of Agrarian Reform, The Department of
5. Home Guaranty Corporation Environment and Natural Resources, and the
(HGC) Department of Agriculture are hereby
directed to create their respective Regional
Section 7. Special Provision. – One-Stop Housing Permit Offices
All government departments, (ROSHPO’s) and to designate responsible
agencies, bureaus and instrumentalities, officers and, to the extent allowed by law,
including governmentowned and controlled delegate to them sufficient authority to
corporations (e.g. PEA, BCDA, PNR, among accept, process and dispose of applications
others), implementing housing projects are for housing-related certification, clearance
directed to seek the clearance and approval or permit.
of the HUDCC Chairman on their respective
housing and other related projects. Done in Section 4. Processing of Applications:
the City of Manila on May 28, 2001. Ordered a. Where the documentary
by Gloria Macapagal-Arroyo. requirements are complete, an
agency shall accept the application
EXECUTIVE ORDER NO. 45 PRESCRIBING for housing related certification,
TIME PERIODS FOR ISSUANCE OF HOUSING clearance or permit and shall
RELATED CERTIFICATIONS, CLEARANCES promptly proceed to process the
AND PERMITS, AND IMPOSING SANCTIONS same. However, where the
FOR FAILURE TO OBSERVE THE SAME documentary requirements are
incompetence, an agency may
Section 1. Guidelines to Fast-track Housing refuse to accept the application;
Projects. – The guidelines below shall be Provided, the said agency shall issue
observed in order to fast-track the approval a written notice to the applicant
and implementation of housing projects. indicating the documentary
requirements which are lacking;
Section 2. Simultaneous Processing of b. Upon a determination that the
Applications. – application is meritorious, the
Where feasible, applications for agency shall promptly issue the
housing-related certifications, clearances or certification, clearance or permit.
permits may be filled simultaneously with However, upon a determination that
the local government unit concerned and the application is not meritorious,
each of the agencies listed in Section 6 the agency shall promptly issue a

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 written decision or order denying of the application. Ten (10) days from
the application clearly stating all the receipt of complete application.
grounds therefore.  The HLURB Regional Director for
c. Within the time periods stated in application for Certificate of Registration
Section 6 hereof, the responsible and License to Sell (LTS): Ten (1)) days
officers of the agencies concerned from receipt of complete application
shall dispose of the application by: and compliance with the publication
i. issuing the certification, requirement.
clearance or permit b. Department of Agrarian Reform
requested; or  The DAR Secretary or Regional
ii. Issuing a written decision, Director for applications for Conversion
or order denying the Order or Exemption Order under
application. Where an Department of Justice Opinion No. 44,
application is opposed the series of 1990: Thirty (30) days from
agency shall promptly receipt of complete application,
determine whether said including the DA Certificate of Eligibility
opposition is based on valid for Reclassification of Agricultural Land
grounds and, in the and the HLURB Certification of Site
affirmative, proceed to Zoning Classification of the land subject
resolve the dispute with of the application.
notice to the applicant and 1. Municipal Agrarian Reform
dispose of the application;  The MARO for applications for
Provided, that the period for MARO Certification: Ten (10) days
resolving the dispute shall from receipt of complete
not be counted against the application.
agency. 2. Center on Land Use Planning and
Policy (CLUPP I) or Regional CLUPP1
Section 5. Affidavit In Lieu of Certification, Clearance  The CLUPP1 or the Regional
or Permit. – CLUPP1, where appropriate. Thirty
Where the responsible officer of the agencies (30) days from receipt of complete
concerned fails or refuses to dispose of the application.
application with the period prescribed herein, the b. Department of Environment and Natural
applicant may, unless expressly prohibited by law, Resources (DENR)
submit an affidavit, with supporting technical studies  The DENR Secretary or Regional
and documents by competent individuals, in lieu of Director for applications for
the certification, clearance or permit. Environmental Compliance Certificate
(ECC): Forty five (45) days from receipt of
Section 6. Time Periods. – complete application.
The local government unit concerned and each of the  The DENR Secretary or Regional
officers and agencies listed below shall dispose of an Director for applications for National
application for housing-related certification, Integrated Protected Area System
clearance or permit within the periods prescribed (NIPAS) Certification stating whether the
below: project area is within or outside the
a. Housing and Land Use Regulatory Board NIPAS: Fifteen (15) days from receipt of
(HLURB) complete application.
 The HLURB Regional Director or the  The DENR Assistant Regional
local zoning officer where appropriate, Executive Director for Operations for
for application for Certificate of Site applications for verification and
zoning Classification of the land subject approval of Survey Returns: Thirty (30)

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 days from receipt of complete 3. Sugar Regulatory Administration
applications. (SRA)
1. Mines and Geosciences Bureau  The SRA Administrator for
(MGB) applications for SRA Clearance
 The MGB Director for Certification: Fifteen (15) days from
applications for approval of receipt of complete application. e.
Engineering Geological and Local Government Units
 Thirty (30) days from receipt of
Geohazard Assessment Report complete application to issue
(EGGAR): Ten (10) days from receipt Development Permits
of EGGAR.
2. Laguna Lake Development Section 7. Sanctions. –
Authority (LLDA) In case the responsible officers of the
 The LLDA Administrator agencies concerned fail or refuse to dispose of the
for applications for issuance application within the periods prescribed above, said
of LLDA Certification stating officers shall, in accordance with civil service laws,
whether the project is rules and regulations including Civil Service
within or outside the LLDA Commission Resolution No. 99-1936, be liable for
area: Fifteen (15) days from administrative sanctions as may be provided in
receipt of complete implementing rules and regulations of this Executive
application Order.
c. Department of Agriculture (DA)
 The DA Secretary or Regional Director Done in the City of Manila on October 24, 2001.
for applications for Certification of Signed by Gloria Macapagal-Arroyo.
Eligibility for Reclassification for
Agricultural Land stating, among others, EXECUTIVE ORDER NO. 71 DEVOLVING THE
that the project area is not covered by POWERS OF THE HOUSING AND LAND USE
Strategic Agricultural and Fisheries REGULATORY BOARD TO APPROVE SUBDIVISION
Development Zone 9SAFDZ) and/or PLANS TO CITIES AND MUNICIPALITIES PURSUANT
Network of Protected Areas for TO R.A NO. 7160, OTHERWISE KNOWN AS THE
Agricultural and Agro-Industrial LOCAL GOVERNMENT CODE OF 1991.
Development (NPAAAD): Thirty (30)
days from receipt of complete SECTION 1. Cities and municipalities shall heretofore
application, including Clearance assume the powers of the housing and Land Use
Certifications from NIA and PCA or SRA, Regulatory Board (HLURB) over the following:
where required.
1. National Irrigation Authority (NIA) a) Approval of preliminary as well as final
 The NIA Regional Manager for subdivision schemes and development
applications for Irrigation Clearance plans of all subdivisions, residential,
Certification: Fifteen (15) days from commercial, industrial and for other
the receipt of complete application. purposes of the public and private
sectors, in accordance with the
2. Philippine Coconut Authority (PCA) provisions of P.D. No. 957as amended
 The PCA Administrator for and its implementing standards, rules
application PCA Clearance and regulations concerning approval of
Certification: Fifteen (15) days from subdivision plans;
receipt of complete application.
SECTION 4. If in the course of evaluation of
application for registration and licensing of projects

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within its jurisdiction, HLRB finds that a local d. Presidential Commission for the
government unit has overlooked or mistakenly Urban Poor (PCUP)
applied a certain law, rule or standard in issuing a e. Philippine National Police (PNP)
development permit, it shall suspend action on the f. National Bureau of Investigation
return the application with a corresponding advice to (NBI)
the local government concerned, so as to afford it an g. Representative of PCUP
opportunity to take appropriate action thereon. Such accredited National Urban Poor
return and advice must likewise be effected within a Organization
period of thirty (30) days from receipt by HLRB of the h. Representative of
application. NonGovernment Organization
EXECUTIVE ORDER NO. 90
EXECUTIVE ORDER NO. 7 PROVIDING FOR THE IDENTIFYING THE GOVERNMENT
PREPARATION AND IMPLEMENTATION OF THE AGENCIES ESSENTIAL FOR THE
COMPREHENSIVE LAND USE PLANS OF LOCAL NATIONAL SHELTER PROGRAM AND
GOVERNMENT UNITS PURSUANT TO THE LOCAL DEFINING THEIR MANDATES,
GOVERNMENT CODE OF 1991 AND OTHER CREATING THE HOUSING AND
PERTINENT LAWS. URBAN DEVELOPMENT
COORDINATING COUNCIL,
SECTION 1. Plan formulation or updating. – RATIONALIZING FUNDING SOURCES
a) Cities and communities shal continue to AND LENDING MECHANISMS FOR
formulate or update their respective comprehensive HOME MORTGAGES AND FOR
land use plans, in conformity with the land use OTHER PURPOSES
planning and zoning standards and guidelines
prescribed by the HLRB pursuant to national policies. Title I
HOUSING AGENCIES AND MANDATES
SECTION 2. Plan review and approval. –
b.3) Promote the community- based SECTION 1. Key Agencies.
program for sustainable development; and b.4) To ensure the accomplishment of the
Ensure that such plans are supportive of the National Shelter Program, the following primary
objectives set forth in the Urban and Housing government housing agencies, any provision of
Development Act of 1992. existing laws and their respective charters to the
contrary notwithstanding, are hereby mandated to:
a. National Housing Authority – The National
EXECUTIVE ORDER NO.129 ESTABLISHING AN
Housing Authority shall be the sole
INSTITUTIONAL MECHANISM TO CURTAIL THE
government agency engaged in direct
ACTIVITIES OF PROFESSIONAL SQUATTING
shelter production. It shall focus its efforts in
SYNDICATES AND PROFESSIONAL SQUATTERS AND
providing housing assistance to the lowest
INTESIFYING THE DRIVE AGAINST THEM.
30% of urban income earners through slum
upgrading, squatter relocation,
SECTION 2.
development of sites and services and
2.1.1 A National Committee Against
construction of corehousing units. In
Squatting Syndicate and Professional
addition, it shall undertake programs for the
Squatters is hereby created composed of the
improvement of blighted urban areas and
following:
provide technical assistance for private
a. Department of Interior and Local
developers undertaking low-cost housing
Government (DILG)
projects. Development of its existing
b. Housing and Urban Development
properties for housing projects for income
Coordinating Council (HUDCC)
earners above the lowest 30% may be
c. Department of Justice (DOJ)
continued provided that funds generated

Module 6 –Pertinent Laws in Urban Design | Page 24 of 28

 thereon are utilized for the attainment of its a. Home Development Mutual Fund – The
primary mandate. Home Development Mutual Fund will
b. National Home Mortgage Finance continue to administer provident fund
Corporation – The National Home Mortgage contributions collected from member
Finance Corporation shall be the major employees and employers, utilizing funds
government home mortgage institution. Its not required for provident benefits for
initial main function is to operate a viable housing loans for members, and, in addition,
home mortgage market, utilizing long-term will be charged with the development of
funds principally provided by the Social saving schemes for home acquisition by
Security System, the Government Service private and government employees.
Insurance System and the Home b. Social Security System – The Social
Development Mutual Fund to purchase Security system shall be the primary
mortgages originated by both private and provider of funds for long-term housing
public institutions that are within mortgages for low and middle income
government approved guidelines. It is also private sector employees.
charged with the development of a system c. Government Service Insurance System –
that will attract private institutional funds The Government Service Insurance System
into long-term housing mortgages. shall be the primary provider of funds for
c. Human Settlements Regulatory long-term housing mortgages for low and
Commission – The Human Settlements middle-income government employees.
Regulatory Commission, renamed as the
Housing and Land Use Regulatory Board, Title II
shall be the sole regulatory body for housing THE HOUSING AND URBAN DEVELOPMENT
and land development. It is charged with COORDINATING COUNCIL
encouraging greater private sector
participation in low-cost housing through SECTION 3. Creation; Main Function; Principal Office.
liberalization of development standards, There is hereby created a Housing and Urban
simplification of regulations and Development Coordinating Council, hereinafter
decentralization of approvals for permits referred to as the Council, under the immediate
and licenses. control and supervision of the President of the
d. Home Financing Corporation – The Home Philippines, charged with the main function of
Financing Corporation, renamed as the coordinating the activities of the government
Home Insurance and Guaranty Corporation, housing agencies to ensure the accomplishment of
shall assist private developers to undertake the National Shelter Program. The Council shall have
low and middle income mass housing its principal office in Metropolitan Manila.
production and encourage private
institutional funds and commercial lenders SECTION 4. Composition. The Council shall be
to finance such housing development and composed of the following:
long term mortgage through a viable system a. A Chairman, who shall be appointed by the
of guarantees, loan insurance and other President of the Philippines;
incentives. b. The Heads of the primary government
SECTION 2. Support Agencies. agencies and the support agencies for
To ensure that the funds required for long- funding for housing enumerated above;
term housing loans are available on a continuous and c. One representative each from the
selfsustaining basis, the following support agencies, National Economic and Development
any provision of existing laws and their respective Authority, the Ministry of Finance, the
charters to the contrary notwithstanding, are hereby Ministry of Budget and Management, the
mandated to: Ministry of Public Works and Highways and
the Development Bank of the Philippines;

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 and . Two representatives from the private
sector to be selected by the Council. SECTION 8. Appropriations. To cover initially the
expenses of the Council and the Secretariat, the
SECTION 5. Powers and Functions of the Council. appropriated funds of the Ministry of Human
The Council shall have the following powers Settlements for the Shelter Secretariat shall be
and functions: utilized together with proportionate contributions of
a. To formulate national objectives for the key government housing agencies which is set at
housing and urban development and to TEN MILLION PESOS (P 10,000,000.00). thereafter,
design broad strategies for the the necessary funds shall be appropriated every
accomplishment of these objectives; Fiscal Year in the General Appropriations Act.
b. To determine the participation and
coordinate the activities of the key
government housing agencies in the national
housing program; Title III
c. To monitor, review and evaluate the
effective exercise by these agencies of their RATIONALIZING THE FUNDING SOURCES AND
assigned functions; LENDING MECHANISMS FOR HOME MORTGAGES
d. To assist in the maximum participation of
the private sector in all aspects of housing SECTION 9. Funding Sources.
and urban development; To enable the Social Security System, the
e. To recommend new legislation and Government Service Insurance System and the
amendments to existing laws as may be Home Development Mutual Fund to provide
necessary for the attainment of improved benefits to their members and to generate
government’s objectives in housing; the necessary long-term funds for housing, a
f. To formulate the basic policies, guidelines rationalization of all employer and employee
and implementing mechanisms for the contributions for all social insurance and provident
disposal or development of acquired or fund benefits is hereby directed to include the
existing assets of the key housing agencies following:
which are not required for the a. Raising the Social Security System
accomplishment of their basic mandates; maximum compensation, inclusive of the
g. To exercise or perform such other powers Cost of Living Allowance, as basis for
and functions as may be deemed necessary, contributions from P1,000.00 to P3,000.00;
proper or incidental to the attainment of its b. Making contributions to the Home
purpose and objectives. Development Mutual Fund voluntary on the
parts of both employees and employers;
SECTION 6. Powers and Functions of the Chairman. c. Instituting a single mandatory
The Chairman of the Council shall serve as contribution rate for employees and
ex-officio Chairman of the governing Boards of the employers for all social insurance programs
key housing agencies. To assist him in the fulfilling of
his duties, the Chairman is hereby authorized to SECTION 10. Home Development Mutual Fund as
create Council Secretariat with a staff of qualified Voluntary Fund. In the implementation of the above
personnel. rationalization program, the following shall govern
the operations of the Home Development Mutual
SECTION 7. Council Secretariat. The Secretariat shall Fund:
be headed by a Secretary General to be appointed by a. All existing contributions together with
the Chairman of the Council. The Secretary General their accumulated earnings shall be retained
shall be an ex-officio member of the Council and shall in the Home Development Mutual Fund until
be responsible for the execution and administration their maturity in accordance with existing
of its approved policies and measures. rules and regulations.

Module 6 –Pertinent Laws in Urban Design | Page 26 of 28

 b. Membership in the fund for new private Development Mutual Fund will be P4.2
and government employees and their Billion. The Social Security system, fund will
respective employers shall be voluntary contribute a total of P3.4 billion to be
after December 31, 1986. allocated by the National Economic and
c. After December 31, 1986, existing Development Authority among the agencies
members, both employees and employers, in an equitable manner. The national
shall have the option to continue or Government shall contribute the balance of
discontinue new Fund contributions. funds required. Thereafter, each institution
d. To encourage provident fund savings for on recommendation of the Council, shall set
home acquisition, all government a fixed percentage of their annual investible
instrumentalities, agencies and corporations funds for long-term home mortgages. These
shall match the voluntary contributions funds shall be made available to the National
made by government employees in Home Mortgage Finance Corporation under
accordance with existing ratios. Private terms which ensure their repayment.
employers are urged to match the c. Lending Rates chargeable to the National
contributions of their employees who opt to Home Mortgage Finance Corporation –
continue their membership in the Fund. Funds shall be used by the National Home
Mortgage Finance Corporation principally to
SECTION 11. Implementing Rules. extend mortgage loans for the members of
The Presidential Commission on the funding agencies for this, the agencies
Government Reorganization (PCGR) is hereby will charge the National Home Mortgage
instructed to draft implementing rules for the Finance Corporation annual interest
rationalization of the Home Mortgage Financing equivalent to the average interest rate
System and for the new Home Development Mutual charged to members under terms approved
Fund guidelines to take effect on January 1, 1987. the by the Council less reasonable spread to
National Economic and Development Authority is cover the National Home Mortgage Finance
hereby instructed to coordinate the drafting of the Corporation’s administration costs as well as
implementing rules for the rationalization of all adequate provisions for loan losses. The
social insurance programs to take effect not later funding agencies may also make direct loans
than March 31, 1987. to or purchase securities from the National
Home Mortgage Finance Corporation. In this
SECTION 12. Home Mortgage Financing System. event, interest rates and terms shall be as
Complimentary to the rationalization of the Funding agreed between the National home
Sources as above provided, an integrated home Mortgage Finance Corporation and the
mortgage financing system is hereby adopted with funding institution.
the following features:
a. Lending Guidelines – Amounts financed,
interest rates, and terms on home
mortgages to be purchased by the National SECTION 13. Interim Arrangements.
Home Mortgage Finance Corporation shall A phasing-in process for the implementation
be determined by the Council on of the Home Mortgage Financing System as above
recommendation by its technical staff which provided shall be determined and implemented by
shall include representatives of the funding the Council over a period not to exceed six months.
support institutions. In the interim, the Social Security, the Government
b. Allocation of Fund Contributions – For Service Insurance System and the Home
1987, the total amount to be made available Development Mutual Fund shall continue with their
for long-term mortgages under the National home mortgage lending activities provided that the
Shelter program, the Government Service beneficiaries, lending packages, rates, terms and
Insurance System and the Home procedures shall be made uniform and in accord with

Module 6 –Pertinent Laws in Urban Design | Page 27 of 28

the National Shelter Program not later than or parts thereof inconsistent with this Executive
December 31, 1986. Such loans shall be considered Order are hereby repealed or modified accordingly.
as partial compliance with each agency’s funding
commitments for the year. SECTION 17. Effectivity. This Executive Order shall
Title IV take effect immediately.
OTHER PROVISIONS
Done in the City of Manila this 17th of December, in
SECTION 14. Special Provisions. To further assist the the year of our Lord, nineteen hundred and eighty-
housing agencies in the fulfillment of their primary six.
objectives, the following are directed to be
undertaken:
a. The Metropolitan Waterworks and Sewerage
System, within its area of jurisdiction, shall LEARNING ACTIVITY 1
immediately take over water and sewerage systems
completed by the National Housing Authority; Unit quiz covering all topics discussed in midterm to
b. The direct housing development activities be announced by the Instructor on Ikonek.
of the Human Settlements Development
Corporation’s housing and construction
materials subsidiaries as well as of the Land
Investment Trust administered by the Home REFERENCES
Financing Corporation shall be phased out
within a period of three (3) years from the www.Wikipedia.com
effectivity of this Executive Order. All
www.chanrobles.com
concerned agencies shall, not later than
Prepared by:
March 31, 1987, submit to the Council their
respective phasing-out programs. Whatever ARCH. ALBERT T. PASCUA, LRA
net proceeds realized therefrom shall be Faculty, College of Engineering and Architecture
turned over to the National Government.
c. The Social Security System and the
Government Service Insurance System shall
be allowed to engage in bridge development
financing of low and middle income mass
housing projects;
d. The National Home Mortgage Finance
Corporation shall be recapitalized so that its
unimpaired capital after realistic provisions
for losses amounts to P500 Million;
e. The Home Financing Corporation shall be
recapitalized to enable it to fulfill its
objectives.

SECTION 15. Separability. The provisions of this

Executive Order are declared to be separable and if
any provision or the application thereof is held
invalid or unconstitutional, the validity of other
provisions shall be affected.

SECTION 16. Repealing Clause. All laws, orders,

issuances, corporate charters, rules and regulations

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