REPUBLIC ACT NO. 7279 - AN ACT TO
PROVIDE FOR A COMPREHENSIVE AND CONTINUING URBAN DEVELOPMENT AND
HOUSING PROGRAM, ESTABLISH THE MECHANISM FOR ITS IMPLEMENTATION, AND
FOR OTHER PURPOSES
ARTICLE I
TITLE, POLICY, PROGRAM AND DEFINITION OF TERMS
SECTION 1. Title. — This Act shall be known as the
"Urban Development and Housing Act of 1992."
Sec. 2. Declaration of State Policy and Program
Objectives. — It shall be the policy of the State to undertake, in
cooperation with the private sector, a comprehensive and continuing
Urban Development and Housing Program, hereinafter referred to as the
Program, which shall:
(a) Uplift the conditions of the underprivileged and
homeless citizens in urban areas and in resettlement areas by making
available to them decent housing at affordable cost, basic services,
and employment opportunities;
(b) Provide for the rational use and development of
urban land in order to bring about the following:
(1) Equitable utilization of residential lands in
urban and urbanizable areas with particular attention to the needs and
requirements of the underprivileged and homeless citizens and not
merely on the basis of market forces;
(2) Optimization of the use and productivity of land
and urban resources;
(3) Development of urban areas conducive to
commercial and industrial activities which can generate more economic
opportunities for the people;
(4) Reduction in urban dysfunctions, particularly
those that adversely affect public health, safety and ecology; and
(5) Access to land and housing by the underprivileged
and homeless citizens;
(c) Adopt workable policies to regulate and direct
urban growth and expansion towards a dispersed urban net and more
balanced urban-rural interdependence;
(d) Provide for an equitable land tenure system that
shall guarantee security of tenure to Program beneficiaries but shall
respect the rights of small property owners and ensure the payment of
just compensation;
(e) Encourage more effective people's participation
in the urban development process; and
(f) Improve the capability of local government units
in undertaking urban development and housing programs and projects.
Sec. 3. Definition of Terms. — For purposes of
this Act:
(a) "Affordable cost" refers to the most reasonable
price of land and shelter based on the needs and financial capability
of Program beneficiaries and appropriate financing schemes;
(b) "Areas for priority development" refers to those
areas declared as such under existing statutes and pertinent executive
issuances.
(c) "Blighted lands" refers to the areas where the
structures are dilapidated, obsolete and unsanitary, tending to
depreciate the value of the land and prevent normal development and use
of the area.
(d) "Consultation" refers to the constitutionally
mandated process whereby the public, on their own or through people's
organizations, is provided an opportunity to be heard and to
participate in the decision-making process on matters involving the
protection and promotion of its legitimate collective interest, which
shall include appropriate documentation and feedback mechanisms;
(e) "Idle lands" refers to non-agricultural lands
urban and urbanized areas on which no improvements, as herein defined,
have been made by the owner, as certified by the city, municipal or
provincial assessor;
(f) "Improvements" refers to all types of buildings
and residential units, walls, fences, structures or constructions of
all kinds of a fixed character or which are adhered to the soil but
shall not include trees, plants and growing fruits, and other fixtures
that are mere superimpositions on the land, and the value of
improvements shall not be less than fifty percent (50%) of the assessed
value of the property;
(g) "Joint venture" refers to the commitment or
agreement by two (2) or more persons to carry out a specific or single
business enterprise for their mutual benefit, for which purpose they
combine their funds, land resources, facilities and services;
(h) "Land assembly or consolidation" refers to the
acquisition of lots of varying ownership through purchase or
expropriation of the purpose of planned and rational development and
socialized housing programs without individual property boundary
restrictions;
(i) "Land banking" refers to the acquisition of land
at values based on existing use in advance of actual need to promote
planned development and socialized housing programs;
(j) "Land swapping" refers to the process of land
acquisition by exchanging land for another piece of land of equal
value, or for shares of stock in a government or quasi-government
corporation whose book value is of equal value to the land being
exchanged, for the purpose of planned and rational development and
provision for socialized housing where land values are determined based
on land classification, market value and assessed value taken from
existing tax declarations: provided, that more valuable lands owned by
private persons may be exchanged with less valuable lands to carry out
the objectives of this Act;
(k) "Land use plan" refers to the rational approach
of allocating available resources as equitably as possible among
competing user groups and for different functions consistent with the
development plan of the area and the Program under this Act;
(l) "On-site development" refers to the process of
upgrading and rehabilitation of blighted slum urban areas with a view
of minimizing displacement of dwellers in said areas, and with
provisions for basic services as provided for in Sec. 21 hereof;
(m) "Professional squatters" refers to individuals or
groups who occupy lands without the express consent of the landowner
and who have sufficient income for legitimate housing. The term shall
also apply to persons who have previously been awarded homelots or
housing units by the Government but who sold, leased or transferred the
same to settle illegally in the same place or in another urban area,
and non-bona fide occupants and intruders of lands reserved for
socialized housing. The term shall not apply to individuals or groups
who simply rent land and housing from professional squatters or
squatting syndicates;
(n) "Resettlement areas" refers to areas identified
by the appropriate national agency or by the local government unit with
respect to areas within its jurisdiction, which shall be used for the
relocation of the underprivileged and homeless citizens;
(o) "Security of tenure" refers to the degree of
protection afforded to qualified Program beneficiaries against
infringement or unjust, reasonable and arbitrary eviction or
disposition, by virtue of the right of ownership, lease agreement,
usufruct and other contractual arrangements;
(p) "Slum Improvement and Resettlement Program or
SIR" refers to the program of the National Housing Authority of
upgrading and improving blighted squatter areas outside of Metro Manila
pursuant to existing statutes and pertinent executive issuances;
(q) "Small property owners" refers to those whose
only real property consists of residential lands not exceeding three
hundred square meters (300 sq.m.) in highly urbanized cities and eight
hundred square meters (800 sq.m.) in other urban areas;
(r) "Socialized housing" refers to housing programs
and projects covering houses and lots or homelots only undertaken by
the Government or the private sector for the underprivileged and
homeless citizens which shall include sites and services development,
long-term financing, liberalized terms on interest payments, and such
other benefits in accordance with the provisions of this Act;
(s) "Squatting syndicates" refers to groups of
persons engaged in the business of squatter housing for profit or gain;
(t) "Underprivileged and homeless citizens" refers to
the beneficiaries of this Act and to individuals or families residing
in urban and urbanizable areas whose income or combined household
income falls within the poverty threshold as defined by the National
Economic and Development Authority and who do not own housing
facilities. This shall include those who live in makeshift dwelling
units and do not enjoy security of tenure;
(u) "Unregistered or abandoned lands" refers to lands
in urban and urbanizable areas which are not registered with the
Register of Deeds, or with the city or municipal assessor's office
concerned, or which are uninhabited by the owner and have not been
developed or devoted for any useful purpose, or appears unutilized for
a period of three (3) consecutive years immediately prior to the
issuance and receipt of publication of notice of acquisition by the
Government as provided under this Act. It does not include land which
has been abandoned by reason of force majeure or any other fortuitous
event: provided, that prior to such event, such land was previously
used for some useful or economic purpose;
(v) "Urban areas" refers to all cities regardless of
their population density and to municipalities with a population
density of at least five hundred (500) persons per square
kilometers;
(w) "Urbanizable areas" refers to sites and lands
which, considering present characteristics and prevailing conditions,
display marked and great potential of becoming urban areas within the
period of five (5) years; and
(x) "Zonal Improvement Program or ZIP" refers to the
program of the National Housing Authority of upgrading and improving
blighted squatters areas within the cities and municipalities of Metro
Manila pursuant to existing statutes and pertinent executive issuances.
ARTICLE II
COVERAGE AND EXEMPTIONS
Sec. 4. Coverage. — The Program shall cover all
lands in urban and urbanizable areas, including existing areas for
priority development sites, and in other areas that may be identified
by the local government units as suitable for socialized housing.
Sec. 5. Exemptions. — The following lands shall be
exempt from the coverage of this Act:
(a) Those included in the coverage of Republic Act
No. 6657, otherwise known as the Comprehensive Agrarian Reform Law;
(b) Those actually used for national defense and
security of the State;
(c) Those used, reserved or otherwise set aside for
government offices, facilities and other installations, whether owned
by the National Government, its agencies and instrumentalities,
including government-owned or-controlled corporations, or by the local
government units: provided, however, that the lands herein mentioned,
or portions thereof, which have not been used for the purpose for which
they have been reserved or set aside for the past ten (10) years from
the effectivity of this Act, shall be covered by this Act;
(d) Those used or set aside for parks, reserves for
flora and fauna, forests and watersheds, and other areas necessary to
maintain ecological balance or environmental protection, as determined
and certified to by the proper government agency; and
(e) Those actually and primarily used for religious,
charitable, or educational purposes, cultural and historical sites,
hospitals and health centers, and cemeteries or memorial parks.
The exemptions herein provided shall not apply when the use or purpose
of the abovementioned lands has ceased to exist.
ARTICLE III
NATIONAL URBAN DEVELOPMENT AND HOUSING FRAMEWORK
Sec. 6. Framework for Rational Development. —
There shall be a National Urban Development and Housing Framework to be
formulated by the Housing and Land Use Regulatory Board under the
direction of the Housing and Urban Development Coordinating Council in
coordination with all local government units and other concerned public
and private sectors within one (1) year from the effectivity of this
Act.
The framework shall refer to the comprehensive plan for urban and
urbanizable areas aimed at achieving the objectives of the Program. In
the formulation of the Framework, a review and rationalization of
testing town and land use plans, housing programs, and all other
objectives and activities of government agencies and the private
sectors which may substantially affect urban land use patterns,
transportation and public utilities, infrastructure, environment and
population movement shall be undertaken with the concurrence of the
local government units concerned.
ARTICLE IV
LAND USE, INVENTORY, ACQUISITION AND DISPOSITION
Sec. 7. Inventory of Lands. — Within one (1) year
from the effectivity of this Act, all city and municipal governments
shall conduct an inventory of all kinds and improvements thereon within
their respective localities. The inventory shall include the following:
(a) Residential lands;
(b) Government-owned lands, whether owned by the
National Government or any of its subdivisions, instrumentalities, or
agencies, including government-owned or-controlled corporations and
their subsidiaries;
(c) Unregistered or abandoned and idle lands; and
(d) Other lands.
In conducting the inventory, the local government units concerned, in
coordination with the Housing and Land Use Regulatory Board and with
the assistance of the appropriate government agencies, shall indicate
the type of land use and the degree of land utilization, and other data
or information necessary to carry out the purposes of this Act.
For planning purposes, the Housing and Urban Development Coordinating
Council shall be furnished by each local government unit a copy of its
inventory which shall be updated every three (3) years.
Sec. 8. Identification of Sites for Socialized
Housing. — After the inventory the local government units, in
coordination with the National Housing Authority, the Housing and Land
Use Regulatory Board, the National Mapping Resource Information
Authority, and the Land Management Bureau, shall identify lands for
socialized housing and resettlement areas for the immediate and future
needs of the underprivileged and homeless in the urban areas, taking
into consideration and degree of availability of basic services and
facilities, their accessibility and proximity of jobs sites and other
economic opportunities, and the actual number of registered
beneficiaries.
Government-owned lands under paragraph (b) of the preceding section
which have not been used for the purpose for which they have been
reserved or set aside for the past ten (10) years from the effectivity
of this Act and identified as suitable for socialized housing, shall
immediately be transferred to the National Housing Authority subject to
the approval of the President of the Philippines or by the local
government unit concerned, as the case may be, for proper disposition
in accordance with this Act.
Sec. 9. Priorities in the Acquisition of Land. —
Lands for socialized housing shall be acquired in the following order:
(a) Those owned by the Government or any of its
subdivisions, instrumentalities, or agencies, including
government-owned or -controlled corporations and their subsidiaries;
(b) Alienable lands of the public domain;
(c) Unregistered or abandoned and idle lands;
(d) Those within the declared Areas for Priority
Development, Zonal Improvement Program sites, and Slum Improvement and
Resettlement Program sites which have not yet been acquired;
(e) Bagong Lipunan Improvement of Sites and Services
or BLISS sites which have not yet been acquired; and
(f) Privately-owned lands.
Where on-site development is found more practicable and advantageous to
the beneficiaries, the priorities mentioned in this section shall not
apply. The local government units shall give budgetary priority to
on-site development of government lands.
SECTION 10. Modes of Land Acquisition. — The modes of
acquiring lands for purposes of this Act shall include, among others,
community mortgage, land swapping, land assembly or consolidation, land
banking, donation to the Government, joint-venture agreement,
negotiated purchase, and expropriation: provided, however, that
expropriation shall be resorted to only when other models of
acquisition have been exhausted: provided, further, that where
expropriation is resorted to, parcels of land owned by small property
owners shall be exempted for purposes of this Act: provided, finally,
that abandoned property, as herein defined, shall be reverted and
escheated to the State in a proceeding analogous to the procedure laid
down in Rule 91 of the Rules of Court.
For the purpose of socialized housing, government-owned and foreclosed
properties shall be acquired by the local government units, or by the
National Housing Authority primary through negotiated purchase:
provided, that qualified beneficiaries who are actual occupants of the
land shall be given the right of first refusal.
SECTION 11. Expropriation of Idle Lands. — All idle
lands in urban and urbanizable areas, as defined and identified in
accordance with this Act, shall be expropriated and shall form part of
the public domain. These lands shall be disposed of or utilized by the
Government for such purposes that conform with their land use plans.
Expropriation proceedings shall be instituted if, after the lapse of
one (1) year following receipt of notice of acquisition, the owner
fails to introduce improvements as defined in Sec. 3(f) hereof,
except in the case of force majeure and other fortuitous events.
Exempted from this provision, however, are residential lands owned by
small property owners or those the ownership of which is subject of a
pending litigation.
SECTION 12. Disposition of Lands for Socialized
Housing. — The National Housing Authority, with respect to lands
belonging to the National Government, and the local government units
with respect to other lands within their respective localities, shall
coordinate with each other to formulate and make available various
alternative schemes for the disposition of lands to the beneficiaries
of the Program. These schemes shall not be limited to those involving
transfer of ownership in fee simple but shall include lease, with
option to purchase, usufruct or such other variations as the local
government units or the National Housing Authority may deem most
expedient in carrying out the purposes of this Act.
Consistent with this provision, a scheme for public rental housing may
be adopted.
SECTION 13. Valuation of Lands for Socialized
Housing. — Equitable land valuation guidelines for socialized housing
shall be set by the Department of Finance on the basis of the market
value reflected in the Zonal valuation, or in its absence, on the
latest real property tax declaration.
For site already occupied by qualified Program beneficiaries, the
Department of Finance shall factor into the valuation the blighted
status of the lands as certified by the local government unit or the
National Housing Authority.
SECTION 14. Limitations on the Disposition of Lands
for Socialized Housing. — No land for socialized housing, including
improvements or rights thereon, shall be sold, alienated, conveyed,
encumbered or leased by any beneficiaries as determined by the
government agency concerned.
Should the beneficiary unlawfully sell, transfer, or otherwise dispose
of his lot or any right thereon, the transaction shall be null and
void. He shall also lose his right to the land, forfeit the total
amortization paid thereon, and shall be barred from the benefits under
this Act for a period of ten (10) years from the date of violation.
In the event the beneficiary dies before full ownership of the land is
vested on him, transfer to his heirs shall take place only upon their
assumption of his outstanding obligations. In case of failure by the
heirs to assume such obligations, the land shall revert to the
Government for disposition in accordance with this Act.
ARTICLE V
SOCIALIZED HOUSING
SECTION 15. Policy. — Socialized housing, as defined
in Sec. 3 hereof, shall be the primary strategy in providing shelter
for the underprivileged and homeless. However, if the tenurial
arrangement in a particular socialized housing program is in the nature
of leasehold or usufruct, the same shall be transitory and the
beneficiaries must be encouraged to become independent from the Program
within a given period of time, to be determined by the implementing
agency concerned.
SECTION 16. Eligibility Criteria for Socialized
Housing Program Beneficiaries. — To qualify for the socialized housing
program, a beneficiary:
(a) Must be a Filipino citizen;
(b) Must be an underprivileged and homeless citizen,
as defined in Sec. 3 of this Act;
(c) Must not own any real property whether in the
urban or rural areas; and
(d) Must not be a professional squatter or a member
of squatting syndicates.
SECTION 17. Registration of Socialized Housing
Beneficiaries. — The Housing and Urban Development Coordinating
Council, in coordination with the local government units, shall
designed a system for the registration of qualified Program
beneficiaries in accordance with the Framework. The local government
units, within one (1) year from the effectivity of this Act, shall
identify and register all beneficiaries within their respective
localities.
SECTION 18. Balanced Housing Development. — The
Program shall include a system to be specified in the Framework plan
whereby developers of proposed subdivision projects shall be required
to develop an area for socialized housing equivalent to at least twenty
percent (20%) of the total subdivision area or total subdivision
project cost, at the option of the developer, within the same city or
municipality, whenever feasible, and in accordance with the standards
set by the Housing and Land Use Regulatory Board and other existing
laws. The balanced housing development as herein required may also be
complied with by the developers concerned in any of the following
manner:
(a) Development of new settlement;
(b) Slum upgrading or renewal of areas for priority
development either through zonal improvement programs or slum
improvement and resettlement programs;
(c) Joint-venture projects with either the local
government units or any of the housing agencies; or
(d) Participation in the community mortgage program.
SECTION 19. Incentives for the National Housing
Authority. — The National Housing Authority, being the primary
government agency in charge of providing housing for the
underprivileged and homeless, shall be exempted from the payment of all
fees and charges of any kinds, whether local or national, such as
income and real taxes. All documents or contracts executed by and in
favor of the National Housing Authority shall also be exempt from the
payment of documentary stamp tax and registration fees, including fees
required for the issuance of transfer certificates of titles.
Sec. 20. Incentives for Private Sector
Participating in Socialized Housing. — To encourage greater private
sector participation in socialized housing and further reduce the cost
of housing units for the benefit of the underprivileged and homeless,
the following incentives shall be extended to the private sectors:
(a) Reduction and simplification of qualification and
accreditation requirements for participating private developers;
(b) Creation of one-stop offices in the different
regions of the country for the processing, approval and issuance of
clearances, permits and licenses: provided, that clearances, permits
and licenses shall be issued within ninety (90) days from the date of
submission of all requirements by the participating private developers;
(c) Simplification of financing procedures; and
(d) Exemption from the payment of the following:
(1) Project-related income taxes;
(2) Capital gains tax on raw lands used for the
project;
(3) Value-added tax for the project contractor
concerned;
(4) Transfer tax for both raw completed projects; and
(5) Donor's tax for lands certified by the local
government units to have been donated to socialized housing purposes.
Provided, that upon application for exemption, a lien on the title of
the land shall be annotated by the Register of Deeds: provided,
further, that the socialized housing development plan has already been
approved by the appropriate government agencies concerned: provided,
finally, that all the savings acquired by virtue of this provision
shall accrue in favor of the beneficiaries subject to the implementing
guidelines to be issued by the Housing and Urban Development
Coordinating Council.
Appropriate implementing guidelines shall be prepared by the Department
of Finance, in consultation with the Housing and Urban Development
Coordinating Council, for the proper implementation of the tax
exemption mentioned in this section within one (1) year after the
approval of this Act.
Property owners who voluntarily provide resettlement sites to illegal
occupants of their lands shall entitled to a tax credit equivalent to
the actual non-recoverable expenses incurred in the resettlement,
subject to the implementing guidelines jointly issued by the Housing
and Urban Development Coordinating Council and the Department of
Finance.
Sec. 21. Basic Services. — Socialized housing or
resettlement areas shall be provided by the local government unit or
the National Housing Authority in cooperation with the private
developers and concerned agencies with the following basic services and
facilities:
(a) Potable water;
(b) Power and electricity and an adequate power
distribution system;
(c) Sewerage facilities and an efficient and adequate
solid waste disposal system; and
(d) Access to primary roads and transportation
facilities.
The provisions of other basic services and facilities such as health,
education, communications, security, recreation, relief and welfare
shall be planned and shall be given priority for implementation by the
local government unit and concerned agencies in cooperation with the
private sector and the beneficiaries themselves.
The local government unit, in coordination with the concerned national
agencies, shall ensure that these basic services are provided at the
most cost-efficient rates, and shall set as mechanism to coordinate
operationally the thrusts, objectives and activities of other
government agencies concerned with providing basic services to housing
projects.
Sec. 22. Livelihood Component. — To extent
feasible, socialized housing and resettlement projects shall be located
near areas where employment opportunities are accessible. The
government agencies dealing with the development of livelihood programs
and grant of livelihood loans shall give priority to the beneficiaries
of the Program.
Sec. 23. Participation of Beneficiaries. — The
local government units, in coordination with the Presidential
Commission for the Urban Poor and concerned government agencies, shall
afford Program beneficiaries or their duly designated representatives
an opportunity to be heard and to participate in the decision-making
process over matters involving the protection and promotion of their
legitimate collective interest which shall include appropriate
documentation and feedback mechanisms. They shall also be encouraged to
organize themselves and undertake self-help cooperative housing and
other livelihood activities. They shall assist the Government in
preventing the incursions of professional squatters and members of
squatting syndicates into their communities.
In instances when the affected beneficiaries have failed to organized
themselves or form an alliance within a reasonable period prior to the
implementation of the program of projects affecting them, consultation
between the implementing agency and the affected beneficiaries shall be
conducted with the assistance of the Presidential Commission for the
Urban Poor and the concerned nongovernment organization.
Sec. 24. Consultation with Private Sector. —
Opportunities for adequate consultation shall be accorded to the
private sector involved in socialized housing project pursuant to this
Act.
ARTICLE VI
AREAS FOR PRIORITY DEVELOPMENT, ZONAL IMPROVEMENT PROGRAM SITES AND
SLUM IMPROVEMENT AND RESETTLEMENT PROGRAMS SITES
Sec. 25. Benefits. — In addition to the benefits
provided under existing laws and other related issuance to occupants of
areas for priority development, zonal improvement program sites and
slum improvement and resettlement program sites, such occupants shall
be entitled to priority in all government projects initiated pursuant
to this Act. They shall also be entitled to the following support
services:
(a) Land surveys and titling at minimal cost;
(b) Liberalized terms on credit facilities and
housing loans and one hundred percent (100%) deduction from every
homebuyer's gross income tax of all interest payments made on documents
loans incurred for the construction or purchase of the homebuyer's
house;
(c) Exemption from the payment of documentary stamp
tax, registration fees, and other fees for the issuance of transfer
certificate of titles;
(d) Basic services as provided for in Sec. 21 of
this Act; and
(e) Such other benefits that may arise from the
implementation of this Act.
ARTICLE VII
URBAN RENEWAL AND RESETTLEMENT
Sec. 26. Urban Renewal and Resettlement. — This
shall include the rehabilitation and development of blighted and slum
areas and the resettlement of Program beneficiaries in accordance with
the provisions of this Act. On-site development shall be implemented
whenever possible in order to ensure minimum resettlement of the
beneficiaries of the Program from their existing places of occupancy
shall be undertaken only when on-site development is not feasible and
after compliance with the procedures laid down in Sec. 28 of this
Act.
Sec. 27. Action Against Professional Squatters and
Squatting Syndicates. — The local government units, in cooperation with
the Philippine National Police, the Presidential Commission for the
Urban Poor (PCUP), and the PCUP-accredited urban poor organization in
the area, shall adopt measures to identify and effectively curtail the
nefarious and illegal activities of professional squatters and
squatting syndicates, as herein defined.
Any person or group identified as such shall be summarily evicted and
their dwellings or structures demolished, and shall be disqualified to
avail of the benefits of the Program. A public official who tolerates
or abets the commission of the abovementioned acts shall be dealt with
in accordance with existing laws.
For purposes of this Act, professional squatters or members of
squatting syndicates shall be imposed the penalty of six (6) years
imprisonment of a fine of not less than Sixty thousand pesos
(P60,000.00) but not more than One hundred thousand pesos (P100,000),
or both, at the discretion of the court.
Sec. 28. Eviction and Demolition. — Eviction or
demolition as a practice shall be discouraged. Eviction or demolition,
however, may be allowed under the following situations:
(a) When persons or entities occupy danger areas such
as esteros, railroad tracks, garbage dumps, riverbanks, shorelines,
waterways, and other public places such as sidewalks, roads, parks, and
playgrounds;
(b) When government infrastructure projects with
available funding are about to be implemented; or
(c) When there is a court order for eviction and
demolition.
In the execution of eviction or demolition orders involving
underprivileged and homeless citizens, the following shall be
mandatory:
(1) Notice upon the effected persons or entities at
least thirty (30) days prior to the date of eviction or demolition;
(2) Adequate consultations on the matter of
settlement with the duly designated representatives of the families to
be resettled and the affected communities in the areas where they are
to be relocated;
(3) Presence of local government officials or their
representatives during eviction or demolition;
(4) Proper identification of all persons taking part
in the demolition;
(5) Execution of eviction or demolition only during
regular office hours from Mondays to Fridays and during good weather,
unless the affected families consent otherwise;
(6) No use of heavy equipment for demolition except
for structures that are permanent and of concrete materials;
(7) Proper uniforms for members of the Philippine
National Police who shall occupy the first line of law enforcement and
observe proper disturbance control procedures; and
(8) Adequate relocation, whether temporary or
permanent: provided, however, that in cases of eviction and demolition
pursuant to a court order involving underprivileged and homeless
citizens, relocation shall be undertaken by the local government unit
concerned and the National Housing Authority with the assistance of
other government agencies within forty-five (45) days from service of
notice of final judgment by the court, after which period the said
order shall be executed: provided, further, that should relocation not
be possible within the said period, financial assistance in the amount
equivalent to the prevailing minimum daily wage multiplied by sixty
(60) days shall be extended to the affected families by the local
government unit concerned.
This Department of the Interior and Local Government and the Housing
and Urban Development Coordinating Council shall jointly promulgate the
necessary rules and regulations to carry out the above provision.
Sec. 29. Resettlement. — Within two (2) years from
the effectivity of this Act, the local government units, in
coordination with the National Housing Authority, shall implement the
relocation and resettlement of persons living in danger areas such as
esteros, railroad tracks, garbage dumps, riverbanks, shorelines,
waterways, and in other public places as sidewalks, roads, parks, and
playgrounds. The local government unit, in coordination with the
National Housing Authority, shall provide relocation or resettlement
sites with basic services and facilities and access to employment and
livelihood opportunities sufficient to meet the basic needs of the
affected families.
Sec. 30. Prohibition Against New Illegal
Structures. — It shall be unlawful for any person to construct any
structure in areas mentioned in the preceding section.
After the effectivity of this Act, the barangay, municipal or city
government units shall prevent the construction of any kind of illegal
dwelling units of structures within their respective localities. The
head of any local government unit concerned who allows, abets or
otherwise tolerates the construction of any structure in violation of
this section shall be liable to administrative sanctions under existing
laws and to penal sanctions provided for in this Act.
ARTICLE VIII
COMMUNITY MORTGAGE PROGRAM
Sec. 31. Definition. — The Community Mortgage
Program (CMP) is a mortgage financing program of the National Home
Mortgage Finance Corporation which assists legally organized
associations of underprivileged and homeless citizens to purchase and
develop a tract of land under the concept of community ownership. The
primary objective of the program is to assist residents of blighted or
depressed areas to own the lots they occupy, or where they choose to
relocate to, and eventually improve their neighborhood and homes to the
extent of their affordability.
Sec. 32. Incentives. — To encourage its wider
implementation, participants in the CMP shall be granted with the
following privileges or incentives:
(a) Government-owned or -controlled corporations and
local government units, may dispose of their idle lands suitable for
socialized housing under the CMP through negotiable sale at prices
based on acquisition cost plus financial carrying costs;
(b) Properties sold under the CMP shall be exempted
from the capital gains tax; and
(c) Beneficiaries under the CMP shall not be evicted
nor dispossessed of their lands or improvements unless they have
incurred arrangements in payments of amortizations for three (3)
months.
Sec. 33. Organization of Beneficiaries. —
Beneficiaries of the Program shall be responsible for their
organization into associations to manage their subdivisions or places
of residence, to secure housing loans under existing Community Mortgage
Program and such other projects beneficiaries to them. Subject to such
rules and regulations to be promulgated by the National Home Mortgage
Finance Corporation, associations organized pursuant to this Act may
collectively acquire and own lands covered by this Program. Where the
beneficiaries fail to form an association by and among themselves, the
National Home Mortgage Finance Corporation shall initiate the
organization of the same in coordination with the Presidential
Commission for the Urban Poor and the local government units concerned.
No person who is not a bona fide resident of the area shall be a member
or officer of such association.
ARTICLE IX
RELATED STRATEGIES
Sec. 34. Promotion of Indigenous Housing Materials
and Technologies. — The local government units, in cooperation with the
National Housing Authority, Technology and Livelihood Resource Center,
and other concerned agencies, shall promote the production and use of
indigenous, alternative, and low-cost construction materials and
technologies for socialized housing.
Sec. 35. Transport System. — The local government
units, in coordination with the Departments of Transportation and
Communications, Budget and Management, Trade and Industry, Finance, and
Public Works and Highways, the Home Insurance Guaranty Corporation, and
other concerned government agencies, shall device a set of mechanisms
including incentives to the private sector so that a viable transport
system shall evolve and develop in the urban areas. It shall also
formulate standards designed to attain these objectives:
(a) Smooth flow of traffic;
(b) Safety and convenience of travel;
(c) Minimum use of land space;
(d) Minimum damage to the physical environment; and
(e) Adequate and efficient transport service to the
people and goods at minimum cost.
Sec. 36. Ecological Balance. — The local
government units shall coordinate with the Department of Environment
and Natural Resources in taking measures that will plan and regulate
urban activities for the conservation and protection of vital, unique
and sensitive ecosystems, scenic landscapes, cultural sites and other
similar resource areas.
To make the implementation of this function more effective, the active
participation of the citizenry in environmental rehabilitation and in
decision-making process shall be promoted and encouraged. The local
government units shall recommend to the Environmental and Management
Bureau the immediate closure of factories, mines and transport
companies which are found to be causing massive pollution.
Sec. 37. Population Movements. — The local
government units shall set up an effective mechanism, together with the
appropriate agencies like the Population Commission, the National
Economic and Development Authority and the National Statistics Office,
to monitor trends in the movements of population from rural to urban,
urban to urban, and urban to rural areas. They shall identify measures
by which such movements can be influenced to achieve balance between
urban capabilities and population, to direct appropriate segments of
the population into areas where they can have access to opportunities
to improve their lives and to contribute to national growth and
recommend proposed legislation to Congress, if necessary.
The Population Commission, the National Economic and Development
Authority, and the National Statistics Office shall likewise provided
advanced planning information to national and local government planners
on population projections and the consequent level of services needed
in particular urban and urbanizable areas. This service will include
early-warning systems on expected dysfunctions in a particular urban
area due to population increases, decreases, or age structure changes.
Sec. 38. Urban-rural Interdependence. — To
minimize rural to urban migration and pursue urban decentralization,
the local government units shall coordinate with the National Economic
and Development Authority and other government agencies in the
formulation of national development programs that will stimulate
economic growth and promote socioeconomic development in the
countryside.
ARTICLE X
PROGRAM IMPLEMENTATION
Sec. 39. Role of Local Government Units. — The
local government units shall be charged with the implementation of this
Act in their respective localities, in coordination with the Housing
and Urban Development Coordinating Council, the national housing
agencies, the Presidential Commission for the Urban Poor, the private
sector and other nongovernment organizations.
They shall prepare a comprehensive land use plan for their respective
localities in accordance with the provisions of this Act.
Sec. 40. Role of Government Housing Agencies. — In
addition to their respective existing powers and functions, and those
provided for in this Act, the hereunder mentioned housing agencies
shall perform the following:
(a) The Housing and Urban Development Coordinating
Council shall, through the key housing agencies, provide local
government units with necessary support such as:
(1) Formulation of standards and guidelines as well
as providing technical support in the preparation of town and land use
plans;
(2) In coordination with the National Economic and
Development Authority and the National Statistics Office, provide data
and information for forward-planning by the local government units in
their areas, particularly on projections as to the population and
development trends in their localities and the corresponding investment
programs needed to provide appropriate types and levels of
infrastructure, utilities, services and land use patterns; and
(3) Assistance in obtaining funds and other resources
needed in the urban development and housing programs in their areas of
responsibility.
(b) The National Housing Authority, upon request of
local government units, shall provide technical and other forms of
assistance in the implementation of their respective urban development
and housing programs with the objective of augmenting and enhancing
local government capabilities in the provision of housing benefits to
their constituents;
(c) The National Home Mortgage Finance Corporation
shall administer the Community Mortgage Program under this Act and
promulgate rules and regulations necessary to carry out the provisions
of this Act; and
(d) The Home Insurance Guaranty Corporation shall
design an appropriate guarantee scheme to encourage financial
institutions to go into direct lending for housing.
Sec. 41. Annual Report. — The Housing and Urban
Development Coordinating Council and the local government units shall
submit a detailed annual report with respect to the implementation of
this Act to the President and the Congress of the Republic of the
Philippines.
ARTICLE XI
FUNDING
Sec. 42. Funding. — Funds for the urban
development and housing program shall come from the following sources:
(a) A minimum of fifty percent (50%) from the annual
net income of the Public Estate Authority, to be used by the National
Housing Authority to carry out its programs of land acquisition for
resettlement purposes under this Act;
(b) Proceeds from the disposition of ill-gotten
wealth, not otherwise previously set aside for any other purpose, shall
be applied to the implementation of this Act shall be administered by
the National Home Mortgage Finance Corporation;
(c) Loans, grants, bequests and donations, whether
from local or foreign sources;
(d) Flotation of bonds, subject to the guidelines to
be set by the Monetary Board;
(e) Proceeds from the social housing tax and, subject
to the concurrence of the local government units concerned, idle lands
tax as provided in Sec. 236 of the Local Government Code of 1991 and
other existing laws;
(f) Proceeds from the sale or disposition of
alienable public lands in urban areas; and
(g) Domestic and foreign investment or financing
through appropriate arrangements like the build-operate-and-transfer
scheme.
Sec. 43. Socialized Housing Tax. — Consistent with
the constitutional principle that the ownership and enjoyment of
property bear a social function and to raise funds for the Program, all
local government units are hereby authorized to impose an additional
one-half percent (0.5%) tax on the assessed value of all lands in urban
areas in excess of Fifty thousand pesos (P50,000).
ARTICLE XII
TRANSITORY PROVISIONS
Sec. 44. Moratorium on Eviction and Demolition. —
There shall be a moratorium on the eviction of all program
beneficiaries and on the demolition of their houses or dwelling units
for a period of three (3) years from the effectivity of this Act:
provided, that the moratorium shall not apply to those persons who have
constructed their structures after the effectivity of this Act and for
cases enumerated in Sec. 28 hereof.
ARTICLE XIII
COMMON PROVISIONS
Sec. 45. Penalty Clause. — Any person who violates
any provision of this Act shall be imposed the penalty of not more than
six (6) years of imprisonment or a fine of not less than Five thousand
pesos (P5,000) but not more than One hundred thousand pesos (P100,000),
or both, at the discretion of the court: provided, that, if the
offender is a corporation, partnership, association or other juridical
entity, the penalty shall be imposed on the officer or officers of said
corporation, partnership, association or juridical entity who caused
the violation.
Sec. 46. Appropriations. — The amount necessary to
carry out the purposes of this Act shall be included in the annual
budget of implementing agencies in the General Appropriations Act of
the year following its enactment into law and every year thereafter.
Sec. 47. Separability Clause. — If for any reason,
any provision of this Act shall be included in the annual budget of
implementing agencies in the General Appropriations Act of the year
following its enactment into law and every year thereafter.
Sec. 48. Repealing Clause. — All laws, decrees,
executive orders, proclamations, rules and regulations, and other
issuances, or parts thereof which are inconsistent with the provisions
of this Act, are hereby repealed or modified accordingly.
Sec. 49. Effectivity Clause. — This Act shall take
effect upon its publication in at least two (2) national newspapers of
general circulation.
Approved: March 24, 1992
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