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PRESIDENTIAL DECREE NO. 1396
PRESIDENTIAL DECREE NO. 1396 -
CREATING THE DEPARTMENT OF HUMAN SETTLEMENTS AND THE HUMAN SETTLEMENT
DEVELOPMENT CORPORATION, APPROPRIATING FUNDS THEREFOR, AND ACCORDINGLY
AMENDING CERTAIN PRESIDENTIAL DECREES
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WHEREAS,
man and his community require the fulfillment of the following basic
needs and requirements such as water, power, food, clothing, shelter,
medical services, education, sports and recreation, economic base
(livelihood), mobility and ecological balance embodied in a humanistic
ideology for the realization of a New Society;chanroblesvirtualawlibrary
WHEREAS, it is the national policy to attain the fruits of social and
economic development in our communities within the integrative
framework of human settlements;chanroblesvirtualawlibrary
WHEREAS, it is imperative that our development activities promote and
enhance a wholesome relationship between beings and their civic and
physical environment;chanroblesvirtualawlibrary
WHEREAS, while the government has already addressed the problems of
rural poverty and stagnation by adopting and implementing a massive
countryside development program, a proper development perspective
requires equal concern for the management of urban development;chanroblesvirtualawlibrary
WHEREAS, it is necessary to organize the government's policies and
programs along these new areas of concern by establishing an
appropriate department and delineating its relationships with the
various agencies involved with its functions;chanroblesvirtualawlibrary
WHEREAS, it is also national policy to promote innovative land
development and community development controls as a technology for
building communities and estates in new areas, or renewing communities
in depressed or blighted areas; and
WHEREAS, the physical planning, development and management of new
communities and estates, or of old communities and blighted areas can
best be accomplished through the creation and operation of an adequate
corporate arm for the new Department.
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines,
by virtue of the powers vested in me by the Constitution, do hereby
order and decree the following as part of the law of the land. chanroblesvirtualawlibrary
Section 1. Declaration of Policy. — It is hereby
declared to be the policy of the government to foster the growth, and
renewal of our communities, both rural and urban, in an integrative
manner that promotes optimum land use, adequate shelter, environment
protection, utilization of appropriate technology and rational
interdependence amongst self-reliant communities, all these towards the
fullest development of man as a civic person and as a human being,
involving in this process the coordinated contribution of the public
and private sectors.
Section 2. Creation of the Department of Human
Settlements. — In order to carry out the above stated policy, there is
hereby established the Department of Human Settlements, hereinafter
referred to as the Department.
The Department shall be headed by a Secretary. For purposes of
coordination, the Secretary shall serve ex-officio as Chairman of each
of the governing boards of the corporation, commissions, and
authorities which are placed under the supervision of the Department.
The Secretary shall be assisted by one Undersecretary, unless otherwise
determined by the President.
Section 3. Establishment of the National Capital
Region. — In view of the critical importance of the Metropolitan Manila
Region in human settlements development, it is hereby declared and
established as the National Capital Region of the Republic of the
Philippines, and its administration as such is hereby vested in the
Secretary of Human Settlements. The pertinent provisions of
Presidential Decree No. 824, creating the Metropolitan Manila
Commission, are hereby accordingly amended.
Section 4. Powers and Functions of the Department. —
The Department shall have the following powers and functions which it
shall undertake by itself or through the corporations, commissions and
authorities which are placed under its supervision.
(a) Promulgate national standards and guidelines for
human settlements which shall govern land use plans and zoning
ordinances of local governments, civil works and infrastructure
programs and projects of the National Government, and subdivisions or
estate development projects of both the public and private sectors;chanroblesvirtualawlibrary
(b) Promulgate national standards and guidelines for
environmental management relative tor quality, water quality, land use
and waste management which shall govern development programs and
projects and other activities in settled communities, urban or rural,
as well as in those areas immediately contiguous thereto and develop an
environmental impact assessment system for the operationalization of
said standards and guidelines;chanroblesvirtualawlibrary
(c) In coordination with appropriate agencies, effect
a single regulatory system relative to subdivision, zoning (including
architectural design), building, fire and related regulations;chanroblesvirtualawlibrary
(d) Prepare and submit to the Board of the National
Economic and Development Authority a National multi-year Human
Settlements Plan which shall translate the Philippine Development Plan
into spatial and temporal terms, based on the locational distribution
of national resource endowments (including energy), population,
climate, and production capacity;chanroblesvirtualawlibrary
(e) Formulate plans and programs and implement,
either on its own initiative and operational responsibility or through
the agencies or corporations placed under its supervision, projects for;chanroblesvirtualawlibrary
i. Urban renewal and development, including but not
limited to the construction and management of social and economic
housing.
ii. Estate or New Town development within sites
designated by the Office of the President as Bagong Lipunan sites.
iii. Land assembly and real property management.
iv. Development and installation on a community scale
of waste management systems and so appropriate technologies. chanroblesvirtualawlibrary
(f) Promulgate appropriate rules and regulations
which shall have regulatory force for the enforcement of its standards
and guidelines;chanroblesvirtualawlibrary
(g) Enter into contracts, either domestic or foreign,
under such terms and conditions as it may deem necessary and reasonable;chanroblesvirtualawlibrary
(h) Receive, take and hold by bequest, devise, gift,
purchase or lease, either absolutely or in trust for any of its
purposes from foreign and domestic sources, any asset, grant or
property, real or personal, subject to such limitations as are provided
in existing laws and regulations; and to convey such assets, grants or
property; invest and reinvest the same under this provision and deal
with an expand its assets and income in such manner as will best
promote its public welfare objectives;chanroblesvirtualawlibrary
(i) Develop and maintain in conjunction with
cooperating agencies a responsive and effective information system
through the establishment of a data bank to support the department at
various levels in the planning, monitoring, execution, coordination and
control of its various activities, programs and/or projects; chanroblesvirtualawlibrary
(j) Determine, fix and collect reasonable amounts to
be charged as filing fees, inspection fees and other administrative or
service fees necessary for the effective implementation of all the
laws, Presidential Decrees and other legal issuances enforced by the
Department;chanroblesvirtualawlibrary
(k) Supervise all corporations placed under the
Department;chanroblesvirtualawlibrary
(l) Call on any department, bureau, office, agency or
instrumentality of the government and private entities and
organizations for cooperation and assistance in the performance of its
functions;chanroblesvirtualawlibrary
(m) Adopt rules and regulations for the transaction
of its business; and
(n) Perform such other activities which are necessary
for the effective performance of the abovementioned functions and
objectives.
Section 5. Creation of the Human Settlements
Development Corporation. — In order to provide an adequate corporate
arm for the Department, especially in the discharge of its functions
relative to urban renewal, New Town and estate development in Bagong
Lipunan sites and real property management, there is hereby created the
Human Settlements Development Corporation. The Corporation shall be
subject to the supervision of the Department.
Section 6. Purposes of the Corporation. — The
purposes of the Corporation shall be as follows:cralaw:red
(a) The development of new communities that are
economically viable and environmental sound, through innovative urban
land mechanisms and self-financing arrangements;chanroblesvirtualawlibrary
(b) The renewal of urban communities or parts
thereof, through housing and other urban improvement projects.
The abovementioned development and/or renewal activities of the
Corporation shall be undertaken or implemented generally, but not
exclusively, on land parcels or tracts which have designated as Bagong
Lipunan sites by the Office of the President.
Section 7. Powers and Functions of the Corporation.
— The Corporation shall have the following powers and functions: chanroblesvirtualawlibrary
(a) Prepare and implement development and/or renewal
project plans for Bagong Lipunan site. The Corporation shall have as
its initial project the Lungsod Silangan Townsites consisting of 20,313
hectares in the Municipalities of Antipolo, San Mateo and Montalban,
Province of Rizal and the parcel of land consisting of 160,410 hectares
embraced and covered by Proclamation Nos. 1636 and 1637 with
boundaries delineated in Proclamation No. 1637 which are hereby
declared as Bagong Lipunan sites;chanroblesvirtualawlibrary
(b) Administer, operate and/or manage estates or New
Town projects on Bagong Lipunan sites either exclusively through
subsidiary corporations or in associations with other government
(including local governments) or private entities;chanroblesvirtualawlibrary
(c) Provide or operate utilities services in Bagong
Lipunan project sites, in accordance with law;chanroblesvirtualawlibrary
(d) Acquire, purchase, clear, alter construct,
enlarge, occupy, mortgage, manage and dispose by lease or sale or
otherwise deal in lands and building of every kind and character,
whether belonging to or to be acquired by the Corporation; exercise the
right of pre-emption, either by agreement or by expropriation; and in
general, engage in real property management;chanroblesvirtualawlibrary
(e) Engage in the transfer of property rights of
land within designated Bagong Lipunan project sites, when deemed
necessary, such that the land is exchanged for one of similar value;
Provided, that no land acquired by the Corporation through eminent
domain as provided for in Section 13 of this Decree shall be said or
the title thereof disposed; chanroblesvirtualawlibrary
(f) Construct, or cause to be constructed, acquire,
own, lease, operate and maintain infrastructure facilities, housing
units, factory buildings, utilities and services necessary or useful in
the development of pilot communities;chanroblesvirtualawlibrary
(g) Fix, assess and collect charges and fees,
including rentals for the lease, use or occupancy of lands, buildings,
structures, and all the facilities owned and administered by the
Corporation; to fix and collect fees and charges for the issuance of
permits, licenses and the rendering of services not enumerated herein,
the provisions of law to the contrary notwithstanding, Provided, that
an equitable formula for sharing the proceeds thereof with the local
governments or other government agencies concerned shall be developed
and shall be in effect upon approval by the President;chanroblesvirtualawlibrary
(h) Recommend to the President the transfer to the
Corporation of all foreclosed properties held by government agencies
located within Bagong Lipunan and prototype project areas;chanroblesvirtualawlibrary
(i) When essential to the proper administration of
its corporate affairs or when necessary for the proper transaction of
its business or for carrying out the purposes of this Decree, to issue
bonds or contract loans, credits or indebtedness, domestic or foreign,
the payment of which shall be guaranteed by the government through the
President of the Philippines or his duly authorized representative; and
(j) Prescribe its by-laws; adopt, alter and use a
corporate seal which shall be judicially noticed; make contracts,
lease, own or otherwise dispose of personal and real property; sue and
be sued, and otherwise do and perform any and all acts and things that
may be necessary or proper to carry out the purposes of this
Decree. chanroblesvirtualawlibrary
Section 8. Governing Body of the Corporations. — The
Corporation shall be governed by a Board of Directors, composed of
seven (7) members, as follows:cralaw:red
1. Secretary of the Department of Human Settlements
as Chairman;chanroblesvirtualawlibrary
2. Chairman of the Development Bank of the
Philippines;chanroblesvirtualawlibrary
3. Governor of the Central Bank of the Philippines;chanroblesvirtualawlibrary
4. Secretary of the Department of Local Government
and Community Development;chanroblesvirtualawlibrary
5. Secretary of the Department of Public Works,
Transportation and Communications;chanroblesvirtualawlibrary
6. Secretary of the Department of Industry.
The Chief Executive of the Corporation shall be a General Manager which
shall be appointed by the Board.
Section 9. Appointment, Control and Discipline of
Personnel. — The Board, upon recommendation of the General Manager of
the Corporation, shall appoint the officers, and employees of the
Corporation and its subsidiaries; fix their compensation, allowances
and benefits, their working hours and such other conditions of
employment as it may deem proper; grant them leaves of absence under
such regulations as it may promulgate; discipline and/or remove them
for cause; and establish and maintain a recruitment and merit system
for the Corporation and its affiliates and subsidiaries.
Section 10. Capitalization of the Corporation. — The
Corporation shall have an authorized capital stock of Five Hundred
Million Pesos (P500,000,000) divided into 500,000 shares with a par
value of One Thousand Pesos (P1,000.00) per share to be subscribed and
paid for by the Government of the Republic of the Philippines.
For this purpose, an initial release of One Hundred Million Pesos
(P100,000,000) is hereby authorized for CY 1978 chargeable against the
Special Activities Fund of P.D. 1250.
Additional capitalization in the nature of (a) properties as may
be contributed to the Corporation by the government through further
Presidential Proclamation designating Bagong Lipunan sites and other
prototype project sites (b) all capitalize surplus and (c)
contributions by government financial institutions are also hereby
authorized.
Section 11. Borrowing Power. — With the prior
approval of the Secretary of Finance, the Monetary Board and the
President of the Philippines, the Corporation may borrow from foreign
public or private financial institutions such amounts as may from time
to time be required for its operations, or issue bonds promissory
notes, debentures, certificates of indebtedness, and other debt
instruments in foreign currency. Notwithstanding the provisions of any
law to the contrary, the Central Bank is hereby authorized to extend
loans and advances to the Corporation under Section 38 of Republic Act
No. 265, as amended, otherwise known as the Central Bank Charter,
subject to such terms and conditions as may be prescribed by the
Monetary Board.
No part of the proceeds of domestic and/or foreign borrowings shall be
used for operating expenses of the Corporation.
The bonds, promissory notes, debentures, certificates of indebtedness
and other debt instruments issued in local or foreign currency shall be
at such interest rates, maturities and other terms and conditions as
the Corporation may determine. The debt instruments may be secured by
the assets of the Corporation and shall be fully exempt, both as the
principal and interest, from any and all taxes imposed by the
government of any of its subdivision. The debt instruments shall be
fully negotiable and shall be unconditionally guaranteed both as to
principal and interest by the Government of the Republic of the
Philippines, which guaranty shall be indicated on the face
thereof. chanroblesvirtualawlibrary
A sinking fund is hereby created for the payment of the Corporation's
bonds issued under the provisions hereof in such manner that the total
contribution thereto accrued at such rate of interest as may be
determined by the Secretary of Finance in consultation with the
Monetary Board shall be sufficient to redeem the bonds at maturity. The
said fund shall be under the custody of the Central Bank of the
Philippines which shall invest the same in such manner as the Monetary
Board may approve; shall charge all expenses of such investment to the
sinking fund and shall credit the same with the interest on investment
and other incomes belonging to it.
A standing annual appropriation is hereby made out of any general funds
in the National Treasury in such amount as may be necessary to provide
for the sinking fund created herein and for the interest on bonds
issued by the Corporation by virtue hereof.
Section 12. Profits of the Corporation. — Profits
which may be realized from the operations of the Corporation shall
accrue to and be automatically appropriated as part of the corporate
earnings of the Corporation, any provision of law to the contrary
notwithstanding.
Section 13. Eminent Domain. — The Corporation shall
have the power to acquire any property required for the establishment
and expansion of Bagong Lipunan sites and facilities by purchase by
negotiation or by expropriation proceedings. To promote maximum
development of these areas, the properties acquired may thereafter be
resold, or leased by the Corporation to any enterprise, private or
government, under such terms and conditions as it may be impose, except
those acquired through expropriation proceedings which cannot be resold
or the title thereof disposed. chanroblesvirtualawlibrary
Section 14. Corporations, Authorities and Agencies
Under the Supervision of the Department. — The following corporations,
authorities and agencies are hereby placed under the supervision of the
Department and their respective charters are correspondingly amended to
the extent that the pertinent provisions thereof are inconsistent with
the provisions of this Decree. The specific amendments to be affected
in the respective charters of the affected corporations and authorities
shall be provided for in the Letters of Implementation to be issued by
the President to implement this Decree, which legal issuance shall form
part of this Decree.
(a) National Housing Authority
(b) National Home Mortgage Finance Corporation
(c) Home Financing Commission
(d) National Housing Corporation
(e) Technology Resource Center
(f) National Environmental Protection Council
(g) National Pollution Control Commission
(h) Human Settlements Commission chanroblesvirtualawlibrary
The president shall, in the light of the provision of Section 2 of this
Decree and, whenever necessary in order to maintain the odd
number in the membership of the governing boards of the above
corporations and commissions, appoint an additional member each to the
said Boards. In the case of the Human Settlements Commission, in
addition to the Undersecretary of Energy who shall be made an
ex-officio member, a Deputy Chairman shall be appointed by the
President.
Section 15. Relationship Between the Department and
the Supervised Agencies. — The supervision of the government
corporations and authorities listed in Section 14 shall be for the
purpose of policy and program coordination and integration. The
formulation and implementation of the policies, plans and projects of
the attached agencies shall conform to the overall policies and plans
of the Department.
To give effect to the foregoing, a centralized administrative and
management office known as the Corporate Planning Office is hereby
created in the Department.
Section 16. Regional Offices. — There shall be
established as many regional offices as are necessary and consistent
with the requirements of economy and efficiency; Provided, That they
are established in accordance with the regional pattern as described in
Paragraph 1, Article I, Chapter III, Part II of the Integrated
Reorganization Plan, as amended. The regional office shall be headed by
a Regional Director who may be assisted whenever necessary, by one or
more Assistant Regional Directors.
Section 17. Counterpart Units and Sub-Regional
Offices. — The regional office shall have such counterpart units as may
be necessary, corresponding to the major functional areas and
responsibilities of the different corporations and agencies attached
under it. chanroblesvirtualawlibrary
The Department shall, within each region, establish such sub-regional
offices as may be necessary for the accomplishment of its declared
objectives and policies.
Section 18. Conversion of the Human Settlements
Commission. — The Human Settlements Commission established pursuant to
Presidential Decree No. 933 is hereby renamed as the Human Settlements
Regulatory Commission and shall accordingly be the regulatory arm of
the Department.
Section 19. Appointment of Department Personnel. —
The Department shall have an adequate personnel complement. Its
officers and employees shall be appointed by the Secretary, except
those whose appointments are vested by law in the President of the
Philippines. The Office of Compensation and Position Classification,
Budget Commission, shall consider professional and technical
qualifications and competence in fixing the salaries of the
corresponding personnel.
Section 20. Appropriations. — To carry out the
purpose of this Decree, there is hereby appropriated out of any funds
in the National Treasury not otherwise appropriated the sum of FIFTY
MILLION PESOS (P50,000,000) for the operation of the Department and its
regional offices. This shall be in addition to whatever applicable
appropriations may be transferred to it from among the government
agencies reorganized under this Decree. Thereafter, the appropriations
for the Department and its regional offices shall be included in the
National General Appropriations Act. The regional offices may likewise
utilize the Local and the Regional Development Funds as may be
necessary in the implementation of projects at the regional level.
Section 21. Repealing Clause. — All laws,
decrees, executive orders, rules and regulations inconsistent herewith
are hereby repealed, amended or modified accordingly. chanroblesvirtualawlibrary
Section 22. Separability Clause. — If for any
reason, any section or provision of this Decree is declared to be
unconstitutional or invalid, the other provisions hereof not affected
shall continue in full force and effect.
Section 23. Effectivity. — This Decree shall take
effect immediately.
Done in the City of Manila,
this 2nd day of June, in the year of Our Lord, nineteen hundred and
seventy-eight.
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