March
24, 1992
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."
SECTION 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.
SECTION 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 Section 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
SECTION 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.
SECTION 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
SECTION 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
SECTION 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.
SECTION 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.
SECTION 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
open-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 Section
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 Section 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 Section 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 Socializing 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.
SECTION 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.
SECTION 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.
SECTION 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.
SECTION 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 non-government
organization.
SECTION 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
SECTION 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 Section
21 of this Act; and
(e) Such other benefits that may arise from
the implementation of this Act.
ARTICLE VII
URBAN RENEWAL AND RESETTLEMENT
SECTION 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 Section 28 of this Act.
SECTION 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.
SECTION 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.
SECTION 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.
SECTION 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
SECTION 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.
SECTION 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.
SECTION 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
SECTION 34. Promotion
of Indigenous Housing Materials and Technologies. — The local government
units, in cooperation with the National Housing Authority, Technology and
SECTION 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.
SECTION 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.
SECTION 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.
SECTION 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
SECTION 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.
SECTION 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.
SECTION 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
ARTICLE XI
FUNDING
SECTION 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 Section 236 of the Local Government Code of 1991 and other
existing laws;
(f) Proceeds from the date 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.
SECTION 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
SECTION 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 Section 28 hereof.
ARTICLE XIII
COMMON PROVISIONS
SECTION 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.
SECTION 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.
SECTION 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.
SECTION 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.
SECTION 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