REPUBLIC ACT NO.

7279
AN ACT TO PROVIDE FOR A COMPREHENSIVE AND CONTINUING URBAN DEVELOPMENT
AND HOUSING PROGRAM, ESTABLISH THE MECHANISM FOR ITS IMPLEMENTATION, AND
FOR OTHER PURPOSES.

ARTICLE I
TITLE, POLICY, PROGRAM AND DEFINITION OF TERMS

Section 1. Title. Urban Development and Housing Act of 1992

Section 2. Declaration of State Policy and Program Objectives. It shall be the policy of the
State to undertake, in cooperation with the private sector, a comprehensive and continuing
Urban Development and Housing Program, hereinafter referred to as the Program, which
shall:
(a) Uplift the conditions of the underprivileged and homeless citizens in urban areas
and in resettlement areas by making available to them decent housing at affordable
cost, basic services, and employment opportunities;
(b) Provide for the rational use and development of urban land in order to bring
about the following:
(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;
(f) Improve the capability of local government units in undertaking urban
development and housing programs and projects.
Section 3. 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;
(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.
(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;
(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;
 (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;
(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;
(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;
(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;

ARTICLE II
COVERAGE AND EXEMPTIONS

Section 4. Coverage. The Program shall cover all lands in urban and urbanizable areas,
including existing areas for priority development sites, and in other areas that may be
identified by the local government units as suitable for socialized housing.
Section 5. Exemptions. The following lands shall be exempt from the coverage of this Act:
(a) Included in the coverage of the Comprehensive Agrarian Reform Law
(b) Used for national defense and security of the State
(c) used, reserved or otherwise set aside for government offices, facilities and other
installations
(d) 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
(e) actually and primarily used for religious, charitable, or educational purposes,
cultural and historical sites, hospitals and health centers, and cemeteries or
memorial parks

ARTICLE III
NATIONAL URBAN DEVELOPMENT AND HOUSING FRAMEWORK
Section 6. Framework for Rational Development

ARTICLE IV
LAND USE, INVENTORY, ACQUISITION AND DISPOSITION

Section 7. Inventory of Lands

Section 8. Identification of Sites for Socialized Housing
Section 9. Priorities in the Acquisition of Lands.
Section 10. Mode of Land Acquisition. For the purpose of socialized housing, government-
owned and foreclosed properties shall be acquired by the local government units, or by the
National Housing Authority primary through negotiated purchase: Provided, That qualified
beneficiaries who are actual occupants of the land shall be given the right of first refusal.
Section 11. Expropriation of Idle Lands.
Section 12. Limitations on the Disposition of Lands for Socialized Housing.

ARTICLE V.
SOCIALIZED HOUSING

Section 13. Policy. Socialized housing, as defined in Section 3 hereof, shall be the primary
strategy in providing shelter for the underprivileged and homeless. However, if the tenurial
arrangement in a particular socialized housing program is in the nature of leasehold or
usufruct, the same shall be transitory and the beneficiaries must be encouraged to become
independent from the Program within a given period of time, to be determined by the
implementing agency concerned.
Section 14. Eligibility Criteria for Socialized Housing Program Beneficiaries. To qualify for the
socialized housing program, a beneficiary:
(a) Must be a Filipino citizen;
(b) Must be an underprivileged and homeless citizen, as defined in Section 3 of this
Act;
(c) Must not own any real property whether in the urban or rural areas; and
(d) Must not be a professional squatter or a member of squatting syndicates.
Section 17. Registration of Socializing Housing Beneficiaries.
Section 18. Balanced Housing Development.
Section 19. Incentives for the National. Housing Authority.
Section 20. Incentives for Private Sector Participating in Socialized Housing.
Section 21. Basic Services. Socialized housing or resettlement areas shall be provided by the
local government unit or the National Housing Authority in cooperation with the private
developers and concerned agencies with the following basic services and facilities:
(a) Potable water;
(b) Power and electricity and an adequate power distribution system;
 (c) Sewerage facilities and an efficient and adequate solid waste disposal system; and
(d)Access to primary roads and transportation facilities.
The provisions of other basic services and facilities such as health, education,
communications, security, recreation, relief and welfare shall be planned and shall be given
priority for implementation by the local government unit and concerned agencies in
cooperation with the private sector and the beneficiaries themselves.
The local government unit, in coordination with the concerned national agencies, shall
ensure that these basic services are provided at the most cost efficient rates, and shall set as
mechanism to coordinate operationally the thrusts, objectives and activities of other
government agencies concerned with providing basic services to housing projects.
Section 22. Livelihood Component. To extent feasible, socialized housing and resettlement
projects shall be located near areas where employment opportunities are accessible. The
government agencies dealing with the development of livelihood programs and grant of
livelihood loans shall give priority to the beneficiaries of the Program.
Section 23. Participation of Beneficiaries.
Section 24. Consultation with Private Sector.

ARTICLE VI
AREAS FOR PRIORITY DEVELOPMENT, ZONAL IMPROVEMENT PROGRAM SITES AND SLUM
IMPROVEMENT AND RESETTLEMENT PROGRAMS SITES

Section 25. Benefits.

ARTICLE VII
URBAN RENEWAL AND RESETTLEMENT

Section 26. Urban Renewal and Resettlement.

Section 27. Action Against Professional Squatters and Squatting Syndicates.
Section 28. Eviction and Demolition. Eviction or demolition as a practice shall be discouraged.
Eviction or demolition, however, may be allowed under the following situations:
(a) When persons or entities occupy danger areas such as esteros, railroad tracks,
garbage dumps, riverbanks, shorelines, waterways, and other public places such as
sidewalks, roads, parks, and playgrounds;
(b) When government infrastructure projects with available funding are about to be
implemented; or
(c) When there is a court order for eviction and demolition.
Section 29. Resettlement. Within two (2) years from the effectivity of this Act, the local
government units, in coordination with the National Housing Authority, shall implement the
relocation and resettlement of persons living in danger areas such as esteros, railroad tracks,
garbage dumps, riverbanks, shorelines, waterways, and in other public places as sidewalks,
roads, parks, and playgrounds. The local government unit, in coordination with the National
Housing Authority, shall provide relocation or resettlement sites with basic services and
facilities and access to employment and livelihood opportunities sufficient to meet the basic
needs of the affected families.
Section 30. Prohibition Against New Illegal Structures.

ARTICLE VIII
COMMUNITY MORTGAGE PROGRAM

Section 31. Definition. The Community Mortgage Program (CMP) is a mortgage financing
program of the National Home Mortgage Finance Corporation which assists legally
organized associations of underprivileged and homeless citizens to purchase and develop a
tract of land under the concept of community ownership. The primary objective of the
program is to assist residents of blighted or depressed areas to own the lots they occupy, or
where they choose to relocate to, and eventually improve their neighborhood and homes to
the extent of their affordability.
Section 32. Incentives.
Section 33. Organization of Beneficiaries.

ARTICLE IX
RELATED STRATEGIES

Section 34. Promotion of Indigenous Housing Materials and Technologies. The local
government units, in cooperation with the National Housing Authority, Technology and
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.
Section 35. Transport System.
Section 36. Ecological Balance. The local government units shall coordinate with the
Department of Environment and Natural Resources in taking measures that will plan and
regulate urban activities for the conservation and protection of vital, unique and sensitive
ecosystems, scenic landscapes, cultural sites and other similar resource areas.
Section 37. Population Movements.
Section 38. Urban-rural interdependence,

ARTICLE X
PROGRAM IMPLEMENTATION

Section 39. Role of Local Government Units. The local government units shall be charged
with the implementation of this Act in their respective localities, in coordination with the
Housing and Urban Development Coordinating Council, the national housing agencies, the
Presidential Commission for the Urban Poor, the private sector and other nongovernment
organizations.
They shall prepare a comprehensive land use plan for their respective localities in accordance
with the provisions of this Act.
Section 40. Role of Government Housing Agencies.
Section 41. Annual Report.

ARTICLE XI
FUNDING

Section 42. Funding.

Section 43. Socialized Housing Tax.

ARTICLE XII
TRANSITORY PROVISIONS

Section 44. Moratorium of Eviction and Demolition.

ARTICLE XIII
COMMON PROVISIONS

Section 45. Penalty Clause.

Section 46. Appropriations.
Section 47. Separability Clause.
Section 48. Repealing Clause.
Section 49. Effectivity Clause.