THE PHILIPPINE LAWS ON HOUSING

A. THE URBAN DEVELOPMENT AND HOUSING ACT (RA 7279)

*Salient Provisions:

1. National Urban Development and Housing Framework

- Comprehensive plan for urban and urbanized areas to serve as basis for achieving
the objectives of the law
- Housing and Land Use Regulatory Board (HLURB) = formulated
- Housing and Urban Development Coordination Council (HUDCC) + all local
government units and concerned public and private sectors = directed
 HLURB – national government agency tasked as planning, regulatory
and quasi-judicial body for land use development and real estate and
hosing regulation
 HUDCC – the umbrella agency of various housing and development
offices of the government
2. UDHA Socialized Housing Program
- The housing program of the law provides for:
 Beneficiary listing
 Land inventory
 Identification of socialized housing sites
 Acquisition of identified socialized housing sites
 Disposition of lands for socialized housing
3. UDHA Resettlement Program
- Resettlement of persons living in dangerous and public areas
- LGUs + National Housing Authority = tasked to provide relocation and
resettlement sites w/ basic services and facilities and access to employment
opportunities sufficient to meet the basic needs of the affected families.
- This program is required to be undertaken within 2 years from the date of its
effectivity (March 29,1992 – 1994)
4. Balanced Housing Programs
- Developers of proposed subdivision projects = required to develop an area for
socialized housing (20% of the total subdivision area or total subdivision cost)
5. Eviction and Demolition (Rules and Regulations)
- Law discourages demolition as a practice. Eviction or demolition may be allowed
only when:
 Occupy dangerous area
 Occupy public places
 Place occupied is a government infrastructure project site
 There is a court for eviction or demolition
 Construction falls under the category: new illegal structure
(construction after March 29, 1992)
 Structure belongs to a professional squatter or a member of squatting
syndicate
- In the execution of eviction or demolition involving underprivileged and homeless
citizens, the ff. are mandatory: (Sec 28, UDHA)
 30-day notice
 Adequate consultation
 Only on office hours and good weather
 Presence of LGU officials
 Proper ID – for participating in the demolition
 Philippine National Police – proper uniform
 No heavy equipment (except for concrete structures)
6. Moratorium on Eviction and Demolition
- There shall be a moratorium on eviction of all program beneficiaries and on the
demolition of their houses or dwelling units for a period of 3 years from the
effectivity of the law.
- Housing Program, Resettlement Program and Balanced Housing Program are
being accomplished or otherwise set in place

B. COMPREHENSIVE AND INTEGRATED SHELTER FINANCE ACT (RA 7835)

*An act providing for a Comprehensive and Integrated shelter and Urban Development
Financing

- Increasing and regularizing yearly appropriation of the major components of the

national shelter program.
- Major component programs:
a. Resettlement Program
b. Medium-Rise Public and Private Housing
c. Community Mortgage Program
d. Cost-Recoverable Programs
e. Local Housing Program

 Resettlement Program
 Total Appropriation in 5 years: 5.2B
 Target Beneficiaries:
a. families displaced by government infrastructure projects
b. occupying danger areas (waterways, esteros, railroad tracks)
c. qualifies for relocation and resettlement assistance under
UDHA
 3 types of program delivery scheme:
a. NHA – Administered Resettlement Program
b. Resettlement Assistance Program for Local Government Units
c. Resettlement Program with Other Government Agencies and
the Private Sector

 Medium-Rise Private and Public Housing

 Total Appropriation in 5 years: 3B
 Target Beneficiaries:
a. Medium-rise Public Housing – city relocation alternative for
families affected by relocation activities and qualified for
assistance under UDHA
b. Medium-rise Private Housing – housing option to low-income
families and to provide rental housing stock in high-density
urban areas
 Implementor: NHA (w/ participation of other government
agencies, local government units and private sector)
 Manner of Acquisition: units are to be disposed thru, (depends on
the affordability of the beneficiaries)
a. Outright sale
b. Lease

 Community Mortgage Program

 Total Appropriation in 5 years: 12.78B
 Governed: all existing CMP guidelines issued by NHMFC
 Key Players:
a. NHMFC – primary implementor
b. Gov’t agencies, LGUs, NGOs & POs – originators
c. Community Associations
d. Landowner

 Cost Recoverable Programs

 Total Appropriation in 5 years: 2.542B
 Undertaken: government (thru the NHA in cooperation w/ LGUs,
housing cooperatives, NGOs, POs, landowners, developers and
other gov’t agencies)
 Recovered from the target beneficiaries:
a. Cost of land
b. Land development
c. Housing construction
 60% of the total number of the house and lot packages to be
produced – correspond to the lowest load package under the
Unified Home Lending Program
 Local Housing Program
 Total Appropriation in 5 years: 3B
 Purpose: to ensure the equitable distribution of housing benefits
nationwide
 Scope: elected urban and urbanizable areas in all congressional
districts
 LGU may avail of the program, subject to the ff. conditions:

C. PD 772: ANTI-SQUATTING LAW (Criminal Law)

- Committed by any person who succeeds in occupying or possessing the real
property of another against the latter’s will thru any of the ff. means:
 Force
 Intimidation
 Threat
 Taking advantage of the absence or tolerance of the landowner for
residential, commercial or any other purposes

D. EJECTMENT LAWS (Civil Law)

- Forcible Entry – committed by any person who deprives another of the possession
of any land or building by any of the ff. acts:
 Force
 Intimidation
 Stealth
 Threat
 Strategy
- Unlawful Detainer – committed by any person who has an expired or terminated
right to hold possession by virtue of contract
- Why these laws are oppressive to the poor?
 Lack of security of abode (house/land tenure) – makes the poor
vulnerable to ejectment and anti-squatting laws
 PD 772, Penalizing Squatting and Other Similar Acts – criminalizes
squatting and prosecutes people (victims of gov’t inadequacy than
criminals)
E. PDD 957 as amended by PD 1216 (Subdivision and Condominium Buyers Protective
Decree)

- Meant to protect subdivision and condominium buyers from fraudulent and

unscrupulous subdivision and condominium sellers and operators
- The owner or developer shall deliver the title of the lot or unit to the buyer upon
full payment of the lot or unit (no fees except those required for the registration of
the deed of sale)

RA 9904 (MAGNA CARTA FOR HOMEOWNER AND HOMEOWNERS

ASSOCIATONS)
- Every homeowner has the right to enjoy the basic community services and
facilities.
- Rights of a Homeowner Association member:
 Avail of and enjoy all basin community services and use any areas and
facilities.
 Inspect associations book and records during office hours and be
provided upon request w/ annual reports and financial statement.
 Participate, vote and be eligible for any elective or appointive office.

RA 6552 (REALTY INSTALLMENT BUYER PROTECTION ACT)

*An act to provide protection to buyers of real estate on installment payment.
- Buyer is entitled to the ff. rights in chase her defaults in the payment of
succeeding installment (for all contract involving the sale and financial of real
estate on installment payments: residential condo apartments excluding industrial
lots, commercial bldgs.. and sales to tenants where the buyer has paid at least 2
year of installments)
 To pay the unpaid installment due within the total grace period earned
by him which is hereby fixed at the rate of one-month grace period for
every one year of installment payments made. (this right shall be
exercised by the buyer once in every 5 years)
 If contract is canceled, seller shall refund to the buyer the cash
surrender value of the payments on the property equivalent to 50% of
the total payments made.
 Actual cancellation of the contract shall take place after 30 days form
receipt by the buyer of the notice of cancellation or the demand for
rescission of the contracts by a notarial act.
- Down payments, deposits or options on the contract shall be included in the
computation of the total number of installment payments made. (Sec 3)
- If less 2 years of installments were paid = seller shall give buyer a grace period of
not less than 60 days from the date the installment became due.
 If buyer fails to pay the installments due at the expiration of the grace
period = seller may cancel the contract after 30 days from receipt by
the buyer of the notice of cancellation or the demand for rescission of
the contract by a notarial act (sec 4)
- Buyer shall have the right to sell his rights or assign the same to another person or
to reinstate the contract by updating the account during grace period and before
actual cancellation of the contract. (sec 3 & 4)
- Deed of sale of assignment shall be done by notarial act. (sec 5)
- Buyer shall have the right to pay in advance any installment or the full unpaid
balance of the purchase without interest and to have full payment of the purchase
price annotated in the certificate of title covering the property (sec 6)

RA 9646 (REAL ESTATE SERVICE ACT)

*Act of regulating the practice of real estate service in the Philippines.
- Real estate broker – duly registered and licensed natural person who acts as agent
of a party in a real estate transaction (to offer, advertise, solicit, list, promote,
negotiate etc.)

RA 9653 (RENT CONTROL ACT OF 2009)

- Coverage
 All residential units in NCR and other highly urbanized cities
(which have the total monthly rend of P10,000) and all residential
units in all other areas (total monthly rent which ranges from P1 to
P5,000)
 Lessor – permitted to require 1 month advance rental payment and 2
months deposit.
- Prohibition against the Unauthorized Practice of Real Estate Service
 No person shall practice or offer to practice real estate service in the
Philippines or offer himself as real estate service practitioner or be
appointed as real property entity or local government unit (unless he
has passed the licensure examination) (sec 29)
RA 9653 (RENT CONTROL ACT OF 2009)
- Lessor is allowed to forfeit in the amount equivalent to financial damage or
liability attributable to the lessee. (include: unpaid rent, electricity, water,
telephone, and other bills)
- Rent of any covered residential unit can’t be increased by more than 7% every
year with the same lessee
- If the residential unit is vacated, the lessor can set initial rate for the next lessee
- No increase in rental more than once per year in boarding house, dorms, rooms
and bedspaces offered to students.