REPUBLIC ACT NO.

7279
"Urban Development and
Housing Act of 1992."

Declaration of State
Policy
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

Program Objectives
(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;
(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.

Definition of Terms

(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;
(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;

(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;

(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.

COVERAGE
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.

EXEMPTIONS
Those included in the coverage
of
Republic
Act
No.
6657,
otherwise
known
as
the
Comprehensive Agrarian Reform
Law;
Those actually used for national
defense and security of the
State;
Those
used,
reserved
or
otherwise
set
aside
for

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;
Those actually and primarily used for
religious, charitable, or educational
purposes, cultural and historical
sites, hospitals and health centers,
and cemeteries or memorial parks.

Priorities in the Acquisition of

Lands

1. idle government lands;

2. those owned by the Government of

or
any
of
its
subdivisions,
instrumentalities,
or
agencies,
including
GOCC
and
their
subsidiaries;
3. alienable lands of the public domain;
4. unregistered or abandoned and idle
lands;

5. those within the declared Areas for

Priority
Development,
Zonal
Improvement, Project sites and Slum
Improvement
and
Resettlement
Program sites which have not yet been
acquired;
6. Bagong Lipunan Improvement of Sites
and Services sites which have not yet
been acquired;
7. abandoned privately-owned lands;
8. idle privately-owned lands.

Modes of Land
Acquisition
a. donation to the
government;
b. land swapping;
c. community
mortgage;
d. land assembly;
e. land banking;
f. joint-venture
agreement;

g. negotiated purchase;
h. expropriation;
i. transfer to the NHA;
j. by presidential
proclamation
K. Expropriation shall
be resorted to only
when other modes of
acquisition have been
exhausted.

Utilization and Disposition of

Lands for Socialized Housing
Lands shall be disposed only to qualified Program
Beneficiaries;
must be a Filipino citizen;
must be an underprivileged and homeless citizen
must not own any real property whether in the urban or
rural areas
must not be a professional squatter or member of squatting
syndicates

Qualified beneficiaries who are actual occupants of

the land shall be given the right of first refusal.
No
land
for
socialized
housing,
including
improvements thereon, shall be sold, alienated,
conveyed, encumbered or leased by any beneficiary
of this Program except to qualified Program
Beneficiaries.

Basic Services
(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 LGU and
concerned agencies in cooperation with the
private sector and the beneficiaries themselves.

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.

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.

SUMMARY EVICTION
Refers to the immediate dismantling
of new illegal structures by the local
government units or government
agency authorized to demolished in
coordination with the affected urban
poor organizations without providing
the structure owner(s) any benefits
of the Urban Development and
Housing Program.

Coverage
New squatter families whose structures
were built after the effectivity of RA 7279;
and
Squatter families identified by the LGU in
cooperation
with
the
Presidential
Commission of the Urban Poor (PCUP),
Philippine National Police (PNP) and
accredited Urban Poor organization (UPO)
as professional squatters or members of
squatting syndicates as defined in the Act.

Balanced Housing
Development
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.

Mode of Compliance

For main subdivision projects which

are limited to the sale of lots only;
(1) Land equivalent to twenty
percent (20%) of the total area of
the main subdivision project shall be
developed for socialized housing; or
(2) a socialized housing project
equivalent to twenty percent (20%)
of the main subdivision total project
cost

For main subdivision projects which

consist of the sale of house and lot
packages:
(1) Land equivalent to twenty percent (20%)
of the total area of the main subdivision
project shall be developed and housing
units equivalent to twenty percent (20%)
of the aggregate floor area of all housing
units of the main subdivision project shall
be constructed; or
(2) A socialized housing project equivalent
to twenty percent (20%) of the main
subdivision total project cost

For residential condominium project

equivalent to 20% of the total
condominium project cost.

Other Modes of Compliance

New Settlement. Development of an entire new
settlement or a portion thereof;
Slum Upgrading. Development, upgrading and
improvement of a slum or blighted area;
Community Mortgage Program. The developer shall
finance the acquisition, development and subdivision
of an identified CMP project;
Joint-Venture Projects. The Developer may enter into
a joint project or agreement with the concerned local
government unit or any of the housing agencies to
develop
a
socialized
housing
project.
His
participation shall be equivalent to 20% of project
area or 20% of the cost of the main subdivision
project.

COMMUNITY MORTGAGE
PROGRAM

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.

CMP Privileges or Incentives:

(a)GOCC and LGUs, 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.

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.

Role of Government Housing

Agencies

Housing and Urban Development

Coordinating Council
- Formulation of standards and guidelines as well
as providing technical support in the preparation
of town and land use plans;
- provide data and information for forwardplanning 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
- Assistance in obtaining funds and other resources
needed in the urban development and housing
programs in their areas of responsibility.

National Housing
Authority
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

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

Home Insurance Guaranty

Corporation
shall design an appropriate
guarantee scheme to encourage
financial institutions to go into
direct lending for housing.

FUNDING
A minimum of fifty percent (50%) from
the annual net income of the Public
Estate Authority, to be used by the
NHA to carry out its programs of land
acquisition for resettlement purposes;
Proceeds from the disposition of illgotten
wealth,
not
otherwise
previously set aside for any other
purpose, shall be applied to the
implementation of this Act shall be
administered by the NHMFC;

Loans, grants, bequests and donations,

whether from local or foreign sources;
Flotation of bonds, subject to the guidelines
to be set by the Monetary Board;
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;
Proceeds from the date or disposition of
alienable public lands in urban areas; and
Domestic and foreign investment or financing
through appropriate arrangements like the
build-operate-and-transfer scheme.

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

Thank You
& Good
Luck!