REPUBLIC ACT NO.

7279 generate more economic opportunities for the (d) "Consultation" refers to the constitutionally
people; mandated process whereby the public, on their own
AN ACT TO PROVIDE FOR A COMPREHENSIVE AND or through people's organizations, is provided an
CONTINUING URBAN DEVELOPMENT AND (4) Reduction in urban dysfunctions, particularly opportunity to be heard and to participate in the
HOUSING PROGRAM, ESTABLISH THE MECHANISM those that adversely affect public health, safety and decision-making process on matters involving the
FOR ITS IMPLEMENTATION, AND FOR OTHER ecology; and protection and promotion of its legitimate collective
PURPOSES. interest, which shall include appropriate
(5) Access to land and housing by the
underprivileged and homeless citizens; documentation and feedback mechanisms;

ARTICLE I (c) Adopt workable policies to regulate and direct (e) "Idle lands" refers to non-agricultural lands urban
urban growth and expansion towards a dispersed and urbanized areas on which no improvements, as
TITLE, POLICY, PROGRAM AND DEFINITION OF urban net and more balanced urban-rural herein defined, have been made by the owner, as
TERMS interdependence; certified by the city, municipal or provincial assessor;

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