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This page features the full text of
Republic Act No. 7279
"Urban
Development and Housing Act of 1992"
AN
ACT TO PROVIDE FOR A COMPREHENSIVE AND CONTINUING URBAN DEVELOPMENT AND
HOUSING PROGRAM, ESTABLISH THE MECHANISM FOR ITS IMPLEMENTATION, AND
FOR
OTHER PURPOSES.
REPUBLIC
ACT NO. 7279AN
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."chanrobles virtuallaw libraryred
Sec.
2. Declaration of State Policy
and Program Objectives. — It shall be the policy of the State to
undertake,
in cooperation with the private sector, a comprehensive and continuing
Urban Development and Housing Program, hereinafter referred to as the
Program,
which shall:
(a) Uplift
the conditions of the underprivileged and homeless citizens in urban
areas
and in resettlement areas by making available to them decent housing at
affordable cost, basic services, and employment opportunities;
chanrobles virtuallaw libraryred(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;
chanrobles virtuallaw libraryred(2) Optimization
of the use and productivity of land and urban resources; chanrobles virtuallaw libraryred(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; chanrobles virtuallaw libraryred
(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; chanrobles virtuallaw libraryred(e) Encourage
more effective people's participation in the urban development process;
and
(f) Improve
the capability of local government units in undertaking urban
development
and housing programs and projects.
Sec.
3. Definition of Terms. — For
purposes of this Act:
(a) "Affordable
cost" refers to the most reasonable price of land and shelter based on
the needs and financial capability of Program beneficiaries and
appropriate
financing schemes;chanrobles virtuallaw libraryred
(b) "Areas
for priority development" refers to those areas declared as such under
existing statutes and pertinent executive issuances.chanrobles virtuallaw libraryred(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.chanrobles virtual law library
(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; chanrobles virtuallaw libraryred
(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; chanrobles virtuallaw libraryred
(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; chanrobles virtuallaw libraryred
(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; chanrobles virtuallaw libraryred
(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; chanrobles virtuallaw libraryred
(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
chanrobles virtuallaw libraryred
Sec.
4. Coverage. — The Program shall
cover all lands in urban and urbanizable areas, including existing
areas
for priority development sites, and in other areas that may be
identified
by the local government units as suitable for socialized housing.chanrobles virtual law library
chanrobles virtuallaw libraryred
Sec.
5. Exemptions. — The following
lands shall be exempt from the coverage of this Act:
(a) Those
included in the coverage of Republic Act No. 6657, otherwise known as
the
Comprehensive Agrarian Reform Law;
chanrobles virtuallaw libraryred(b) Those
actually used for national defense and security of the State; chanrobles virtuallaw libraryred(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.chanrobles virtual law library
ARTICLE
III
NATIONAL
URBAN DEVELOPMENT AND HOUSING FRAMEWORK
chanrobles virtuallaw libraryred
Sec.
6. Framework for Rational Development.
— There shall be a National Urban Development and Housing Framework to
be formulated by the Housing and Land Use Regulatory Board under the
direction
of the Housing and Urban Development Coordinating Council in
coordination
with all local government units and other concerned public and private
sectors within one (1) year from the effectivity of this Act.chanrobles virtual law library
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.chanrobles virtual law library
chanrobles virtuallaw libraryred
ARTICLE
IV
LAND
USE, INVENTORY, ACQUISITION AND DISPOSITION
chanrobles virtuallaw libraryred
Sec.
7. Inventory of Lands. — Within
one (1) year from the effectivity of this Act, all city and municipal
governments
shall conduct an inventory of all kinds and improvements thereon within
their respective localities. The inventory shall include the
following:
(a) Residential
lands; (b) Government-owned
lands, whether owned by the National Government or any of its
subdivisions,
instrumentalities, or agencies, including government-owned
or-controlled
corporations and their subsidiaries;chanrobles virtuallaw libraryred(c) Unregistered
or abandoned and idle lands; and chanrobles virtuallaw libraryred
(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.chanrobles virtual law library
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.chanrobles virtual law library
chanrobles virtuallaw libraryred
Sec.
8. Identification of Sites for
Socialized Housing. — After the inventory the local government units,
in
coordination with the National Housing Authority, the Housing and Land
Use Regulatory Board, the National Mapping Resource Information
Authority,
and the Land Management Bureau, shall identify lands for socialized
housing
and resettlement areas for the immediate and future needs of the
underprivileged
and homeless in the urban areas, taking into consideration and degree
of
availability of basic services and facilities, their accessibility and
proximity of jobs sites and other economic opportunities, and the
actual
number of registered beneficiaries.chanrobles virtual law library
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.cralaw:red
Sec.
9. Priorities in the Acquisition
of Land. — Lands for socialized housing shall be acquired in the
following
order:
(a) Those
owned by the Government or any of its subdivisions, instrumentalities,
or agencies, including government-owned or -controlled corporations and
their subsidiaries; chanrobles virtuallaw libraryred(b) Alienable
lands of the public domain; chanrobles virtuallaw libraryred(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.chanrobles virtual law library
Sec.
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.chanrobles virtuallaw libraryred
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.cralaw:red
Sec.
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.cralaw:red
Sec.
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.cralaw:red
Consistent
with this provision, a scheme for public rental housing may be
adopted.cralaw:red
Sec.
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.cralaw:red
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.cralaw:red
Sec.
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.cralaw:red
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.cralaw:red
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.
chanrobles virtuallaw libraryred
ARTICLE
V
SOCIALIZED
HOUSING
chanrobles virtuallaw libraryred
Sec.
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.chanrobles virtual law library
Sec.
16. Eligibility Criteria for
Socialized Housing Program Beneficiaries. — To qualify for the
socialized
housing program, a beneficiary:
(a) Must
be a Filipino citizen; chanrobles virtuallaw libraryred(b) Must
be an underprivileged and homeless citizen, as defined in Section 3 of
this Act; chanrobles virtuallaw libraryred(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.
Sec.
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.
chanrobles virtuallaw libraryred
Sec.
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;
chanrobles virtuallaw libraryred(b) Slum
upgrading or renewal of areas for priority development either through
zonal
improvement programs or slum improvement and resettlement
programs; chanrobles virtuallaw libraryred(c) Joint-venture
projects with either the local government units or any of the housing
agencies;
or
(d) Participation
in the community mortgage program.
Sec.
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.chanrobles virtual law library
chanrobles virtuallaw libraryred
Sec.
20. Incentives for Private Sector
Participating in Socialized Housing. — To encourage greater private
sector
participation in socialized housing and further reduce the cost of
housing
units for the benefit of the underprivileged and homeless, the
following
incentives shall be extended to the private sectors:
(a) Reduction
and simplification of qualification and accreditation requirements for
participating private developers; chanrobles virtuallaw libraryred(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; chanrobles virtuallaw libraryred(c) Simplification
of financing procedures; and
(d) Exemption
from the payment of the following:
(1) Project-related
income taxes; chanrobles virtuallaw libraryred(2) Capital
gains tax on raw lands used for the project;chanrobles virtuallaw libraryred(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.
chanrobles virtuallaw libraryred
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.chanrobles virtual law library
chanrobles virtuallaw libraryred
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.chanrobles virtual law library
Sec.
21. Basic Services. — Socialized
housing or resettlement areas shall be provided by the local government
unit or the National Housing Authority in cooperation with the private
developers and concerned agencies with the following basic services and
facilities:
(a) Potable
water; chanrobles virtuallaw libraryred(b) Power
and electricity and an adequate power distribution system; chanrobles virtuallaw libraryred(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.chanrobles virtual law library
chanrobles virtuallaw libraryred
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.chanrobles virtual law library
chanrobles virtuallaw libraryred
Sec.
22. Livelihood Component. — To
extent feasible, socialized housing and resettlement projects shall be
located near areas where employment opportunities are accessible. The
government
agencies dealing with the development of livelihood programs and grant
of livelihood loans shall give priority to the beneficiaries of the
Program. chanrobles virtuallaw libraryred
Sec.
23. Participation of Beneficiaries.
— The local government units, in coordination with the Presidential
Commission
for the Urban Poor and concerned government agencies, shall afford
Program
beneficiaries or their duly designated representatives an opportunity
to
be heard and to participate in the decision-making process over matters
involving the protection and promotion of their legitimate collective
interest
which shall include appropriate documentation and feedback mechanisms.
They shall also be encouraged to organize themselves and undertake
self-help
cooperative housing and other livelihood activities. They shall assist
the Government in preventing the incursions of professional squatters
and
members of squatting syndicates into their communities.cralaw:red
In
instances when the affected beneficiaries have failed to organized
themselves
or form an alliance within a reasonable period prior to the
implementation
of the program of projects affecting them, consultation between the
implementing
agency and the affected beneficiaries shall be conducted with the
assistance
of the Presidential Commission for the Urban Poor and the concerned
nongovernment
organization.cralaw:red
Sec.
24. Consultation with Private
Sector. — Opportunities for adequate consultation shall be accorded to
the private sector involved in socialized housing project pursuant to
this
Act.
chanrobles virtuallaw libraryred
ARTICLE
VI
AREAS
FOR PRIORITY DEVELOPMENT, ZONAL IMPROVEMENT PROGRAM SITES AND SLUM
IMPROVEMENT
AND RESETTLEMENT PROGRAMS SITES
chanrobles virtuallaw libraryred
Sec.
25. Benefits. — In addition to
the benefits provided under existing laws and other related issuance to
occupants of areas for priority development, zonal improvement program
sites and slum improvement and resettlement program sites, such
occupants
shall be entitled to priority in all government projects initiated
pursuant
to this Act. They shall also be entitled to the following support
services:
(a) Land
surveys and titling at minimal cost; chanrobles virtuallaw libraryred(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;
chanrobles virtuallaw libraryred(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. chanrobles virtuallaw libraryred
ARTICLE
VII
URBAN
RENEWAL AND RESETTLEMENT
chanrobles virtuallaw libraryred
Sec.
26. Urban Renewal and Resettlement.
— This shall include the rehabilitation and development of blighted and
slum areas and the resettlement of Program beneficiaries in accordance
with the provisions of this Act. On-site development shall be
implemented
whenever possible in order to ensure minimum resettlement of the
beneficiaries
of the Program from their existing places of occupancy shall be
undertaken
only when on-site development is not feasible and after compliance with
the procedures laid down in Section 28 of this Act.
chanrobles virtuallaw libraryred
Sec.
27. Action Against Professional
Squatters and Squatting Syndicates. — The local government units, in
cooperation
with the Philippine National Police, the Presidential Commission for
the
Urban Poor (PCUP), and the PCUP-accredited urban poor organization in
the
area, shall adopt measures to identify and effectively curtail the
nefarious
and illegal activities of professional squatters and squatting
syndicates,
as herein defined.chanrobles virtual law library
chanrobles virtuallaw libraryred
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.chanrobles virtual law library
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.cralaw:red
Sec.
28. Eviction and Demolition.
— Eviction or demolition as a practice shall be discouraged. Eviction
or
demolition, however, may be allowed under the following situations:
(a) When
persons or entities occupy danger areas such as esteros, railroad
tracks,
garbage dumps, riverbanks, shorelines, waterways, and other public
places
such as sidewalks, roads, parks, and playgrounds; chanrobles virtuallaw libraryred(b) When
government infrastructure projects with available funding are about to
be implemented; or chanrobles virtuallaw libraryred(c) When
there is a court order for eviction and demolition.chanrobles virtual law library
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; chanrobles virtuallaw libraryred(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; chanrobles virtuallaw libraryred(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.chanrobles virtual law library
Sec.
29. Resettlement. — Within two
(2) years from the effectivity of this Act, the local government units,
in coordination with the National Housing Authority, shall implement
the
relocation and resettlement of persons living in danger areas such as
esteros,
railroad tracks, garbage dumps, riverbanks, shorelines, waterways, and
in other public places as sidewalks, roads, parks, and playgrounds. The
local government unit, in coordination with the National Housing
Authority,
shall provide relocation or resettlement sites with basic services and
facilities and access to employment and livelihood opportunities
sufficient
to meet the basic needs of the affected families.
chanrobles virtuallaw libraryred
Sec.
30. Prohibition Against New Illegal
Structures. — It shall be unlawful for any person to construct any
structure
in areas mentioned in the preceding section.chanrobles virtual law library
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.
chanrobles virtuallaw libraryred
ARTICLE
VIII
COMMUNITY
MORTGAGE PROGRAM
chanrobles virtuallaw libraryred
Sec.
31. Definition. — The Community
Mortgage Program (CMP) is a mortgage financing program of the National
Home Mortgage Finance Corporation which assists legally organized
associations
of underprivileged and homeless citizens to purchase and develop a
tract
of land under the concept of community ownership. The primary objective
of the program is to assist residents of blighted or depressed areas to
own the lots they occupy, or where they choose to relocate to, and
eventually
improve their neighborhood and homes to the extent of their
affordability.
Sec.
32. Incentives. — To encourage
its wider implementation, participants in the CMP shall be granted with
the following privileges or incentives:
(a) Government-owned
or -controlled corporations and local government units, may dispose of
their idle lands suitable for socialized housing under the CMP through
negotiable sale at prices based on acquisition cost plus financial
carrying
costs; chanrobles virtuallaw libraryred(b) Properties
sold under the CMP shall be exempted from the capital gains tax;
and chanrobles virtuallaw libraryred(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.chanrobles virtual law library
Sec.
33. Organization of Beneficiaries.
— Beneficiaries of the Program shall be responsible for their
organization
into associations to manage their subdivisions or places of residence,
to secure housing loans under existing Community Mortgage Program and
such
other projects beneficiaries to them. Subject to such rules and
regulations
to be promulgated by the National Home Mortgage Finance Corporation,
associations
organized pursuant to this Act may collectively acquire and own lands
covered
by this Program. Where the beneficiaries fail to form an association by
and among themselves, the National Home Mortgage Finance Corporation
shall
initiate the organization of the same in coordination with the
Presidential
Commission for the Urban Poor and the local government units concerned.
No person who is not a bona fide resident of the area shall be a member
or officer of such association.chanrobles virtual law library
chanrobles virtuallaw libraryred ARTICLE
IX
RELATED
STRATEGIES
chanrobles virtuallaw libraryred
Sec.
34. Promotion of Indigenous Housing
Materials and Technologies. — The local government units, in
cooperation
with the National Housing Authority, Technology and Livelihood Resource
Center, and other concerned agencies, shall promote the production and
use of indigenous, alternative, and low-cost construction materials and
technologies for socialized housing.chanrobles virtual law library
chanrobles virtuallaw libraryred
Sec.
35. Transport System. — The local
government units, in coordination with the Departments of
Transportation
and Communications, Budget and Management, Trade and Industry, Finance,
and Public Works and Highways, the Home Insurance Guaranty Corporation,
and other concerned government agencies, shall device a set of
mechanisms
including incentives to the private sector so that a viable transport
system
shall evolve and develop in the urban areas. It shall also formulate
standards
designed to attain these objectives:
(a) Smooth
flow of traffic;
chanrobles virtuallaw libraryred
(b) Safety
and convenience of travel; chanrobles virtuallaw libraryred(c) Minimum
use of land space;
(d) Minimum
damage to the physical environment; and
(e) Adequate
and efficient transport service to the people and goods at minimum
cost.
Sec.
36. Ecological Balance. — The
local government units shall coordinate with the Department of
Environment
and Natural Resources in taking measures that will plan and regulate
urban
activities for the conservation and protection of vital, unique and
sensitive
ecosystems, scenic landscapes, cultural sites and other similar
resource
areas.chanrobles virtual law library
chanrobles virtuallaw libraryred
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.chanrobles virtual law library
Sec.
37. Population Movements. — The
local government units shall set up an effective mechanism, together
with
the appropriate agencies like the Population Commission, the National
Economic
and Development Authority and the National Statistics Office, to
monitor
trends in the movements of population from rural to urban, urban to
urban,
and urban to rural areas. They shall identify measures by which such
movements
can be influenced to achieve balance between urban capabilities and
population,
to direct appropriate segments of the population into areas where they
can have access to opportunities to improve their lives and to
contribute
to national growth and recommend proposed legislation to Congress, if
necessary.
The
Population Commission, the National Economic and Development Authority,
and the National Statistics Office shall likewise provided advanced
planning
information to national and local government planners on population
projections
and the consequent level of services needed in particular urban and
urbanizable
areas. This service will include early-warning systems on expected
dysfunctions
in a particular urban area due to population increases, decreases, or
age
structure changes.cralaw:red
Sec.
38. Urban-rural Interdependence.
— To minimize rural to urban migration and pursue urban
decentralization,
the local government units shall coordinate with the National Economic
and Development Authority and other government agencies in the
formulation
of national development programs that will stimulate economic growth
and
promote socioeconomic development in the countryside.
chanrobles virtuallaw libraryred
ARTICLE
X
PROGRAM
IMPLEMENTATION
chanrobles virtuallaw libraryred
Sec.
39. Role of Local Government
Units. — The local government units shall be charged with the
implementation
of this Act in their respective localities, in coordination with the
Housing
and Urban Development Coordinating Council, the national housing
agencies,
the Presidential Commission for the Urban Poor, the private sector and
other nongovernment organizations.
chanrobles virtuallaw libraryred
They
shall prepare a comprehensive land use plan for their respective
localities
in accordance with the provisions of this Act.chanrobles virtual law library
Sec.
40. Role of Government Housing
Agencies. — In addition to their respective existing powers and
functions,
and those provided for in this Act, the hereunder mentioned housing
agencies
shall perform the following:
(a) The
Housing and Urban Development Coordinating Council shall, through the
key
housing agencies, provide local government units with necessary support
such as: (1) Formulation
of standards and guidelines as well as providing technical support in
the
preparation of town and land use plans;
chanrobles virtuallaw libraryred(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 chanrobles virtuallaw libraryred(3) Assistance
in obtaining funds and other resources needed in the urban development
and housing programs in their areas of responsibility.chanrobles virtual law library (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;
chanrobles virtuallaw libraryred
(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 chanrobles virtuallaw libraryred(d) The
Home Insurance Guaranty Corporation shall design an appropriate
guarantee
scheme to encourage financial institutions to go into direct lending
for
housing.chanrobles virtual law library
Sec.
41. Annual Report. — The Housing
and Urban Development Coordinating Council and the local government
units
shall submit a detailed annual report with respect to the
implementation
of this Act to the President and the Congress of the Republic of the
Philippines.chanrobles virtual law library
chanrobles virtuallaw libraryred
ARTICLE
XI
FUNDING
chanrobles virtuallaw libraryred
Sec.
42. Funding. — Funds for the
urban development and housing program shall come from the following
sources:
(a) A
minimum of fifty percent (50%) from the annual net income of the Public
Estate Authority, to be used by the National Housing Authority to carry
out its programs of land acquisition for resettlement purposes under
this
Act; chanrobles virtuallaw libraryred(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; chanrobles virtuallaw libraryred(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.
Sec.
43. Socialized Housing Tax. —
Consistent with the constitutional principle that the ownership and
enjoyment
of property bear a social function and to raise funds for the Program,
all local government units are hereby authorized to impose an
additional
one-half percent (0.5%) tax on the assessed value of all lands in urban
areas in excess of Fifty thousand pesos (P50,000).
chanrobles virtuallaw libraryred
ARTICLE
XII
TRANSITORY
PROVISIONS
chanrobles virtuallaw libraryred
Sec.
44. Moratorium on Eviction and
Demolition. — There shall be a moratorium on the eviction of all
program
beneficiaries and on the demolition of their houses or dwelling units
for
a period of three (3) years from the effectivity of this Act: Provided,
That the moratorium shall not apply to those persons who have
constructed
their structures after the effectivity of this Act and for cases
enumerated
in Section 28 hereof.chanrobles virtual law library
chanrobles virtuallaw libraryred
ARTICLE
XIII
COMMON
PROVISIONS
chanrobles virtuallaw libraryred
Sec.
45. Penalty Clause. — Any person
who violates any provision of this Act shall be imposed the penalty of
not more than six (6) years of imprisonment or a fine of not less than
Five thousand pesos (P5,000) but not more than One hundred thousand
pesos
(P100,000), or both, at the discretion of the court: Provided, That, if
the offender is a corporation, partnership, association or other
juridical
entity, the penalty shall be imposed on the officer or officers of said
corporation, partnership, association or juridical entity who caused
the
violation.chanrobles virtual law library
chanrobles virtuallaw libraryred
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.chanrobles virtual law library
chanrobles virtuallaw libraryred
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.chanrobles virtual law library
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. chanrobles virtuallaw libraryred
Approved:
March
24, 1992
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