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[ R e p u b i .ic A c t N o . 112011

AN ACT CREATING THE DEPARTMENT OF HUMAN

SETTLEMENTS AND URBAN DEVELOPMENT
DEFINING ITS MANDATE, POWERS AND FUNCTIONS.
AND APPROPRIATING FUNDS THEREFOR

Be it enacted by the Senate and House of Representatives of the

Philippines in. Congress assembled:

CHAPTER I

T it l e and Decla ra tio n o f po lic y

S e c t io n l. Short Title. —This Act shall be known as

the “D epartm ent of H um an S ettlem en ts and U rban
Development Act”.
 Sec . 2. Declaration of Policy. —The State shall, pursuant
to Section 9, Article Xlll of the Constitution, ensure that
underprivileged and homeless citizens have access to an
adequate, safe, secure, habitable, sustainable, resilient and
affordable home.
The State shall, by law and for the common good,
undertake, in cooperation with the private sector, a continuing
program of housing and urban development which shall make
available at affordable cost, decent housing and basic services
to underprivileged and homeless citizens in urban centers and
resettlement areas. It shall also promote adequate employment
opportunities to such citizens. In the implementation of the
program, the State shall respect the rights of small property
owners.

The State shall pursue the realization of a modern,

humane, economically-viable, and environmentaUy-sustainable
society where the urbanization process is manifest in towns
and cities being centers of productive economic activity and
is led by market forces; where urban areas have affordable
housing, sustainable physical and social infrastructure and
services fadbtated under a democratic and decentralized system
of governance; and where urban areas provide the opportunities
for an improved quality of life and the eradication of poverty.

The State shall ensure that poor dwellers in urban and

rural areas shall not be evicted nor their dwelling demolished,
except in accordance with law.

In addition, the State shall encourage on-site development

in the implementation of housing programs and shall promote
the creation of new settlements and development of sustainable
urban renewal programs while guaranteeing the preservation
of agricultural lands necessary for food security.
CHAPTER II
D e f in it io n of term s

Sec . 3. Definition of Terms. - As used in this Act, the

following terms are defined as follows:
 (a) Abandoned subdivision or condominium refers to a
project whose development has not been completed in
accordance with the approved development plan despite the
lapse of at least ten (10) years from the target date of
completion and it appears that said project owner or developer
has no intention to complete the project development or, despite
diligent effort for at least the last five (5) years, the project
owner or developer cannot be located;

(b) Comprehensive Land Use Plan (CLUP) refers to the

document, formulated by the local government in consultation
with its stakeholders, that defines or provides guidelines on
the allocation, utihzation, development and management of all
lands within a given territory or jurisdiction according to the
inherent quahties of the land itself and supportive economic,
demographic, socio-cultural and environmental objectives;

(c) Housing refers to a multi-dimensional concept relating

to the process of residing and the objects of dwelling whose
main attributes are location relative to access to livelihood,
tenure arrangements, cost and physical structure, as well as
their environment. Housing is hkewise a physical structure
as well as a social structure, functioning at different spatial
scales from homes, neighborhoods, communities, municipahties,
cities, provinces, and regions. It is also a sector of the
economy, an important category of land use in both urban and
rural areas, especially in cities, and is an important factor in
the overall dynamics of the urban system;

(d) H um an Settlem ents comprise of (a) physical

components of shelter and infrastructure; and (b) services to
which the physical elem ents provide support, such as
community services which include education, health, culture,
welfare, recreation and nutrition;

(e) Informal Settler Families (ISFs) refer to households

hving in a lot, whether private or pubhc, without the consent
of the property owner; or those without legal claim over the
property they are occupying; or those living in danger areas
such as esteros, railroad tracks, garbage dumps, riverbanks,
shorelines, and waterways;

(f) People’s plan refers to the plan formulated by the

beneficiary-association, which shall contain a site development
plan that conforms to the CLUP of the local government unit
under whose jurisdiction the project site is proposed to be
located, including community health, sanitation, and security
plans, as well as non-physical development components such
as self-help housing cooperative, livelihood, self-help
development, capability building, and a system of allocation of
sociahzed housing units that promote and protect the welfare
of the elderly, persons with disability, and children;

(g) Public housing is housing that is owned and/or

managed by the government for the purpose of providing
housing to underserved families:

(h) Urban Development refers to the process of occupation

and use of land or space for activities such as residential,
industrial, commercial and the like or their combinations,
necessary to carry out the functions of urban hving. It entails
the building or rebuilding of more or less perm anent
structures over land that is often withdrawn or converted from
its original use, resulting in the creation of a b u ilt
environment; and

(i) Urban Development Planning refers to the process that

involves the planning of diverse elements that comprise an
urbanizing and urbanized area, including its physical
infrastructure, environment, housing, transportation and
management of land use and urban growth.

CHAPTER III

DEPARTMENT OF HUMAN SETTLEMENTS AND URBAN

DEVELOPMENT

S e c . 4. Creation and Mandate of the Department of

Human Settlements and Urban Development. - There is
hereby created the Department of Human Settlements and
Urban Development, hereinafter referred to as the Department,
through the consolidation of the Housing and Urban
Development Coordinating Council (HUDCC) and the Housing
and Land Use Regulatory Board (HLURB). The Department
shall act as the prim ary national governm ent en tity
responsible for the management of housing, human settlement
and urban development. It shadl be the sole and main planning
and policy-making, regulatory, program coordination, and
performance monitoring entity for all housing, human
settlement and urban development concerns, primarily focusing
on the access to and the affordability of basic human needs.
It shall develop and adopt a national strategy to immediately
address the provision of adequate and affordable housing to all
Filipinos, and shall ensure the alignment of the policies,
programs, and projects of all its attached agencies to facilitate
the achievement of this objective.

Sec . 5. Powers and Functions. - The Department shall

exercise the following powers and functions:

1. Policy Development, Coordination, Monitoring and

Evaluation

(a) Formulate a national housing and urban development

pohcies, strategies and standards that are consistent with the
Philippine Development Plan to promote social and economic
welfare, in coordination and in consultation with national and
local stakeholders, local government units (LGUs), and other
government agencies;

(b) Formulate housing finance and production policies,

recommend and facihtate the development of mechanisms that
promote the estabhshment of a self-sustaining housing finance
and housing delivery systems in coordination with the relevant
agencies;

(c) Formulate housing policies and programs, such as

public housing, in coordination with the attached agencies, for
the homeless and underprivileged families:

(d) Conduct continuing and comprehensive studies and

research necessary for housing and urban development;

(e) Formulate a framework for resilient housing and

hum an settlem ents as a basis for the mechanisms for
post-disaster housing and resiliency planning, research and
development, extension, monitoring and evaluation of programs,
projects and activities to protect vulnerable communities from
the adverse effects of climate change and disasters; and

(f) In the exercise of its oversight functions, develop and

establish a sector performance monitoring and assessment
mechanism to accurately and independently report on the
performance of national government agencies and LGUs
involved in the housing and urban development.

II. Environmental, Land Use and Urban Planning and

Development
(a) Develop and m ain tain a sh elter and urban
developm ent m anagem ent, stan d ard s and m onitoring
information system which shall include, but not be hmited to,
the following data sets: inventory of idle lands, CLUPs,
inventory of housing stocks, and list of beneficiaries; Provided,
That notwithstanding this provision, all existing CLUPs duly
approved and being implemented by the LGUs shall remain
in full force and effect for the duration of the period as stated
therein: Provided, further. That upon enactment of this Act,
LGUs may improve, amend and enhance their existing CLUPs
in accordance with the standards set by the Department;

(b) Provide technical assistance to provinces, cities and

municipahties in building their capability to undertake housing
and urban development and management, such as, but not
limited to: creating a Local Housing Board (LHB) or similar
entity; formulating CLUPs and local shelter plans (LSPs); and
strengthening local government compliance with housing and
urban development laws, standards and guidelines;
(c) Assist the LGUs in the utilization of the socialized
housing tax, as provided in Section 43 of Republic Act
No. 7279, and other sources of funds for housing which shall
be exclusively used for new settlement projects, and other
housing, urban development and renewal projects;
(d) Own and adm inister government-owned lands,
whether owned by the national government or any of its
subdivisions, instrum entalities, or agencies, including
government-owned or -controlled corporations (GOCCs) and
their subsidiaries, which have not been used for the purpose
for which they have been originally reserved or set aside for
at least ten (10) years and identified by the Department as
suitable for urban development, particularly for housing
purposes; Provided, That the lands held in trust by the
GOCCs for and on behalf of their members shall be excluded
from the coverage hereof;
 (e) Formulate and prescribe land use planmng and zoning
standards and regulations for the guidance of cities and
municipalities in the formulation of their respective CLUPs;
and

(f) Develop and implement a comprehensive plan for the

estabhshment of government centers in the country.

III. Housing and Real Estate Development Regulation

(a) Develop mechanisms and implement programs, in

coordination with attached agencies and concerned agencies,
that will initiate and promote the establishment of estate and
new towns, new settlements, urban renewal programs, and
prototypes of housing and urban development interventions,
including the people’s plan approach, while encouraging the
participation therein of local government partnerships with civil
society organizations, nongovernment organizations, private
groups and communities;

(b) Manage and oversee the development of proclaimed

socialized and economic housing sites, including the use of
these land assets as resource mobilization strategy to raise
alternative resources in developing new housing projects and
efficient financing programs, either by itself or through its
attached agencies;

(c) Implement a single regulatory system that shall

govern all activities relative to the planning, production,
m arketing, and m anagem ent of housing and urban
development projects; and

(d) Take over unfinished, incomplete or abandoned

licensed real estate development projects under Presidential
Decree No. 957, in coordination w ith the appropriate
government agencies and instrum entalities, under such
guidelines as may be formulated. Further, the Department
shall be in charge of regulating the use of road and street
systems of projects taken over under this provisions.
 rV. Homeowners A ssociation and Community
Development

(a) Register, regulate and supervise the homeowners

associations (HOAs) in subdivision projects and government
housing projects;

(b) Provide technical assistance to encourage housing

cooperatives and civil society organizations to serve as the
implementing agencies of their housing and urban development
programs;

(c) Promote and encourage partnerships between the

government and private sectors for the provision of decent
housing, suitable living environment, and expanded economic
opportunities specially for the homeless and underprivileged
citizens; and
(d) Effect and oversee a single regulatory system that
shall govern all activities relative to the planning, development,
production, marketing, and management of housing and urban
development projects, without encroaching on the jurisdiction
of other agencies.

V. General Powers

(a) Enter into contracts, joint venture agreements or

understanding, pubhc-private partnerships, and memoranda of
agreement or understanding, either domestic or foreign, under
such terras and conditions as the Department may deem
proper and reasonable subject to existing laws;

(b) Receive, take and hold by bequest, device, gift,

purchase or lease, either absolutely or in trust for any of its
purposes from foreign and domestic sources, any asset, grant
or property, real or personal, subject to such limitations
provided under existing laws and regulations;

(c) Discharge all responsibihties of government that may

arise from treaties, agreements and other commitments on
human settlement and urban development to be extended
through bilateral or multilateral loans and/or assistance
programs;
 (d) Determine, fix and collect reasonable amounts to be
charged as fees and charges necessary for the effective
implementation of all laws, rules and regulations enforced by
the Department and impose reasonable fines and penalties for
violation thereof; Provided, however, That all income generated
from fees, fines, charges, and other collections shall be
deposited with the National Treasury as income of the general
fund:

(e) Recommend new legislation and amendments to

existing laws as may be necessary for the attainm ent of
government’s objectives in housing;

(f) Promote, accredit and regulate the use of indigenous

materials and technologies in the housing construction;

(g) Implement prototype projects in housing and urban

development undertakings, with the right to exercise the power
of eminent domain, when necessary;

(h) Open roads of subdivisions to the public when the

general w elfare requires it upon consultation w ith
stakeholders; and

(i) Perform such other related functions as may be

mandated by law.

S e c . 6. Composition. — The D epartm ent shall be

composed of the Office of the Secretary, and the various
bureaus, services and regional offices. The Office of the
Secretary shall house the Office of the Department Secretary,
the Offices of the Undersecretaries, the Offices of the Assistant
Secretaries, and their immediate support staff

Sec . 7. The Secretary. - The Secretary shall have the

following functions:

(a) Advise the President of the Philippines on matters

related to housing, human settlements, and rural and urban
development:

(b) Estabhsh policies and standards for the efficient and

effective operations of the Department in accordance with
programs of the government:
10

(c) Promulgate rules, regulations and other issuances

necessary in carrying out the D epartm ent’s m andate,
objectives, policies, plans, programs and projects;

(d) Exercise control and supervision, including disciplinary

powers over officers and employees of the Department in
accordance with law, including their investigation and the
designation of a committee or officer to conduct such
investigation:

(e) Exercise control and supervision, including disciplinary

powers over officers and employees of the attached agencies
in accordance with law, including their investigation and the
designation of a committee or officer to conduct such
investigation;

(f) Designate and appoint officers and employees of the

D epartm ent, excluding the U ndersecretaries, A ssistant
Secretaries, and Regional and Assistant Regional Directors, in
accordance with the civil service laws, rules and regulations:
(g) Coordinate with other agencies and instrumentahties
of the government to ensure the effective and efficient
implementation of housing and urban development programs:

(h) Formulate such rules and regulations and exercise

such other powers as may be required to implement the
objectives of this Act; and

(i) Perform such other functions as may be provided by

law or assigned by the President.
The Secretary shall also serve as a voting member of
the National Economic and Development Authority (NEDA)
Board, the governing Boards of the Climate Change
Commission (CCC), the National Disaster Risk Reduction and
Management Council (NDRRMC), and the National Land Use
Committee (NLUC).
Sec . 8. The Undersecretaries and Assistant Secretaries.
- The Secretary shall be assisted by three (3) Undersecretaries
and three (3) Assistant Secretaries, who shall be appointed by
the President, upon the recommendation of the Secretary:
Provided, That at least one (1) Undersecretary and one (1)
Assistant Secretary shall be career officers. They shall have
 II

the powers and functions as provided for in Chapter 2,

Book IV of the Administrative Code of 1987. The Secretary is
further authorized to delineate and assign other functional
areas or responsibilities of the Undersecretaries and Assistant
Secretaries.

Sec . 9. Qualifications and Appointment. - No person

shall be appointed Secretary, Undersecretary and Assistant
Secretary of the Department unless he or she is a citizen and
resident of the Philippines, of good moral character, of proven
integrity, competence and expertise in housing, urban planning
and development.

Sec . 10. Department Bureaus and Regional Offices. —

The Department shall establish, operate, and maintain Bureaus
under it such as, but not limited to;

(a) Environmental, Land Use and Urban Planning and

Development;

(b) Housing and Real Estate Development Regulation: and

(c) Homeowners Associations and Community Development.

As may be necessary, a regional office may be estabhshed
in the administrative regions of the country.

Sec . 11. Structure and Staffing Pattern. - Subject to

the approval of the Department of Budget and Management
(DBM), the Secretary shall determine the organizational
structure and create new divisions or units as may be
necessary, and appoint officers and employees of the
Department and the Commission hereinafter created under
Section 12 in accordance with the civil service laws, rules and
regulations. The remuneration structure of the position in the
staffing pattern shall strictly conform to Republic Act
No. 6758, otherwise known as the Salary Standardization Law,
as amended.

CHAPTER IV
H uman s e t l l e m e n t s a d ju d ic a t io n Co m m ission

Sec . 12. Reconstitution of the HLURB as the Human

Settlements Adjudication Commission (HSAC). - The HLURB
12

is hereby reconstituted and shall henceforth be known as the

Human Settlements Adjudication Commission, hereinafter
referred to as the “Commission”.

The adjudicatory function of the HLURB is hereby

transferred to the Commission and shall be attached to the
Department for policy, planning and program coordination only.

S e c . 13. C om position, S ta ffin g P a tte rn and

Compensation. —

(a) The Commission shall be composed of the following:

(1) Commission en banc - Five (5) Commissioners

appointed by the President shall comprise the Commission.

The Executive Commissioner, chosen by the President

from among the five (5) Commissioners, shall be responsible
for the administration and operations of the Commission,
including the supervision of personnel, and shall be assisted
by the Executive Clerk of the Commission.

(2) Regional Adjudication Branch - There shall be as

many Regional Adjudication Branches as there are Regional
Offices of the Department. The President shall appoint as
many Regional Adjudicators as may be necessary upon the
recommendation of the Secretary.

(b) Subject to the approval of the DBM, the Commission

shall determine its organizational structure and create
new divisions or units as it may deem necessary, and shall
appoint ofBcers and employees of the Commission in accordance
with the civil service laws, rules and regulations. The
remuneration structure of the positions in the staffing pattern
shall strictly conform to Repubhc Act No. 6758 or the Salary
Standardization Law, as amended.

S ec . 14. Qualifications and Terms of Office. - The

qualifications and terms of office are as follows:

(a) Commissioner - Each Commissioner must be a

natural bom citizen of the Philippines, of good moral character
and has been engaged in the practice of law and a member
of the Philippine Bar of good standing for a period of at least
 13

ten (10) years prior to the appointment: Provided, That all

nominees shall have experience in urban development plannmg,
sustainable development, climate change adaptation, disaster
risk reduction and/or real estate development.

Each Commissioner shall hold office for six (6) years. In

case of death, permanent disability, removal from office,
resignation and incapacity to discharge the duties of office, the
person appointed as Commissioner shall only serve the
unexpired term: Provided, That the term of office of the
incumbent Commissioners shall be respected.

(b) Regional Adjudicator - Each Regional Adjudicator

must be a citizen of the Philippines, of good moral character,
has been in the practice of law and member of the Philippine
Bar of good standing for at least seven (7) years, with at least
three (3) years’ experience in realty and/or land use and
development cases, prior to the appointment: Provided, That
the existing HLURB Arbiters are deemed qualified.

Each Regional Adjudicator shall hold office on good

behavior until otherwise incapacitated or has reached the
retirement age in accordance with law, rules and regulations
promulgated by duly constituted authorities, whichever comes
earher.

Sec. 15. Jurisdiction of the Commission. - The Commission

shall have the exclusive appellate jurisdiction over:

(a) All cases decided by the Regional Adjudicators; and

(b) Appeals from decisions of local and regional planning

and zoning bodies.

The decision of the Commission shall be final and

executory after fifteen (15) calendar days from receipt thereof
by the parties.

Sec . 16. Jurisdiction of Regional Adjudicators. - The

Regional Adjudicators shall exercise original and exclusive
jurisdiction to hear and decide cases involving the following:
(a) Cases involving subdivisions, condominiums, memorial
parks and similar real estate developments:
14

(1) Actions concerning unsound real estate business

practices filed by buyers or homeowners against the project
owner or developer, which cause prejudice to the buyers or
committed with bad faith and disregard of the buyers’ rights;
(2) Claims for refund, and other claims filed by
subdivision lot or condominium unit buyer against the project
owner, developer, dealer, broker or salesman: Provided, That
when the cause of action arises from the buyer’s rights under
Section 23 of Presidential Decree No. 957 and the purchase
price of the property is paid through a housing loan from a
bank or other financing institutions, the latter shall be
impleaded as necessary party;

(3) Cases involving specific performance or contractual and

statutory obligations arising from the sale of the lot or unit
and development of the subdivision or condominium project;
(4) Disputes involving the open spaces or common areas
and their use filed by the project owner or developer or the
duly registered HOA, including the eviction of informal settlers
therein, in accordance with the requirements of law, and the
rules and regulations promulgated by duly constituted
authonties;

(5) Suits to declare subdivision, condominium or other real

estate developments within the regulatory jurisdiction of
the Department as abandoned, as defined under Section 3
of this Act for the purpose of Section 35 of Presidential Decree
No. 957;
(6) Disputes involving easements within or among
subdivision projects; and
(7) Actions to annul mortgages executed in violation of
Section 18 of Presidential Decree No. 957 filed by a subdivision
lot or condominium unit buyer against the project owner
and/or developer and the mortgagee.
(b) Cases involving Homeowners Associations:
(1) Controversies involving the registration and regulation
of HOAs;
 15

(2) Intra-association disputes or controversies arising out

of the relations between and among members of HOAs;
between any or all of them and the HOA of which they are
members:
(3) Inter-association disputes or controversies arising out
of the relations between and among two (2) or more HOAs
betw een and among federations and other um brella
organizations, on matters pertaining to the exercise of their
rights, duties and functions; and

(4) Disputes between such HOA and the State, insofar

as it concerns their individual franchise or right to exist and
those which are intrinsically connected with the regulation of
HOAs or dealing with the internal affairs of such entity.

(c) Disputes involving the implementation of Section 18

of Repubhc Act No. 7279, as amended, and its Implementing
Rules and Regulations.
(d) D isputes or controversies involving laws and
regulations being implemented by the Department except those
cases falling within the jurisdiction of other judicial or
quasi-judicial body.

S e c . 17. Powers and Authorities of the Commission . —

The Commission shall have the power and authority:

(a) To promulgate rules and regulations governing the

hearing and disposition of cases before it and its Adjudicators,
as well as those necessary to carry out its functions;

(b) To adm inister oaths, summon the parties to a

controversy, issue subpoenas requiring the attendance and
testimony of witnesses or the production of such books, papers,
contracts, records, statements of accounts, agreements, and
others as may be material to a just determination of the case;

(c) To hold any person in contempt directly or indirectly

and impose appropriate penalties therefore in accordance with
law.
16

Any person committing any act of misbehavior in the

presence of or so near any member of the Commission or any
Adjudicator as to obstruct or interrupt the proceedings before
the same, including disrespect toward said officials, offensive
acts toward others, or refusal to be sworn, or to answer as
a witness or to subscribe an affidavit or deposition when
lawfully required to do so, may be summarily adjudged guilty
of direct contempt by said officials and shall be punished by
a fine not exceeding Five thousand pesos (P5,000.00) or
imprisonment not exceeding five (5) days, or both if it be
committed against the Commission or any member thereof;
and, if the offense is committed against an Adjudicator, it
shall be punishable by a fine not exceeding One thousand pesos
(Pi,000.00) or imprisonment not exceeding one (1) day, or both.

The person adjudged in direct contem pt by the

Adjudicator may appeal to the Commission and the execution
of the judgment shall be suspended pending the resolution
of the appeal upon the filing by such person of a bond on
condition that he/she will abide by and perform the judgment
of the Commission should the appeal be decided against
him/her. Judgment of the Commission on direct contempt is
immediately executory and unappealable. Indirect contempt
shall be dealt with by the Commission or Adjudicator in
the manner prescribed under Rule 71 of the Revised Rules of
Court (ROC).
(d) To enjoin or restrain, after due notice and hearing,
any actual or threatened commission of any or all prohibited
or unlawful acts or to require the performance of a particular
act in any dispute within its jurisdiction which, if not
restrained or performed forthwith, may cause grave or
irreparable damage to any party or render ineffectual any
decision in favor of such party. In no case shall a temporary
or permanent injunction be issued except after a finding of
fact by the Commission, to the effect that:
(1) Prohibited or unlawful acts have been thi’eatened and
win be committed and will be continued unless restrained, but
no injunction or temporary restraining order shall be issued
on account of any threat, prohibited or unlawful act, except
against the person or persons, association or organization
making the threat or committing the prohibited or unlawful
 n
act or actually authorizing or ratifying the same after actual
knowledge thereof;

(2) Substantial and irreparable injury to complainant’s

property will follow;
(3) As to each item of relief to be granted, greater injury
will be inflicted upon complainant by the denial of rehef than
will be inflicted upon defendants by the granting of relief;

(4) Complainant has no adequate remedy at law; and

(5) Public officers charged with the duty to protect

complainant’s property are unable or unwilling to furnish
adequate protection.

(e) To exercise such other powers as are implied,

necessary, or incidental to carry out the express powers
granted to the Commission.

Sec . 18. Appeals. —Decisions, awards or orders of the

Regional Adjudicators shall be final and executory unless
appealed to the Commission within fifteen (15) calendar days
from receipt of such decisions, awards or orders.

The decision of the Commission upon any disputed matter

may be brought upon to the Court of Appeals in accordance
with Rule 43 of the Rules of Court.

Sec . 19. Execution of Decisions, Orders or Awards. - The

Commission or any Regional Adjudicator may, motu proprio
or on motion of any interested party and under such rules
as may be duly promulgated, issue a writ of execution on an
order, award or judgment within five (5) years from the date
it becomes final and executory, and by independent action for
the enforcement of the order, award or decision filed with the
Regional Adjudication Branch which issued the order, award
or decision.

The Commission shall appoint a Sheriff or such number

of Sheriffs, in accordance with the provisions of the civil
service laws, rules and regulations, who shall be responsible
18

for the service and execution of all writs, summonses, and

orders and other processes of the Commission.

The Commission may designate special sheriffs and take

any measure under existing laws to ensure compliance with
their decisions, orders or awards.

Sec . 20. Criminal Prosecution. —The criminal prosecution

for violation of housing laws and regulations shall be instituted
before criminal courts having appropriate jurisdiction.

CHAPTER V

Na tio n a l human S e t t l e m e n t s B oard

Sec . 21. Creation of a National Human Settlements

Board. - The powers and functions of the attached agencies
with respect to policy and program development shall be
exercised by a single Board of Trustees, known as the National
Human Settlements Board, hereinafter referred to as the
Board, with the Secretary of the Department as Chairperson
and the following as members:

(a) The Director General of NEDA or his/her designated

Deputy Secretary General;
(b) The Secretary of Finance or his/her duly designated
Undersecretary:

(c) The Secretary of Budget and Management or his/her

duly designated Undersecretary:

(d) The Secretary of Department of Public Works and

Highways or his/her duly designated Undersecretary:
(e) The Secretary of the Interior and Local Government
or his/her duly designated Undersecretary; and

(f) The Head of each attached agency of the Department.

Provided, That the Home Development Mutual Fund’s
corporate powers and functions shall continue to be exercised
 !9

by its own Board of Trustees, as provided for under Republic

Act No. 9679.

CHAPTER VI

Attached corpo ra tion s

S e c . 22. Attached Corporations. - The Department shall

exercise administrative supervision over the following housing
agencies, which shall remain to be attached for purposes of
pohcy and program coordination, monitoring and evaluation:

(a) National Housing Authority (NHA);

(b) N ational Home Mortgage Finance Corporation

(NHMFC);
(c) Home Development Mutual Fund (HDMF); and

(d) Social Housing Finance Corporation (SHFC).

The attached corporations shall continue to function

according to existing laws and their respective Charters,
subject to the policy directions of the Board.

The appointment of the Board of Directors or Trustees

of the attached GOCCs shall be in accordance with Repubhc
Act No. 10149, otherwise known as the “GOCC Governance
Act of 2011”. However, each of the heads of the attached
corporations shall enter into a performance contract annually
with the Secretary in accordance with their respective
mandates, which shall be consistent with the national targets
on human settlements and urban development, and the
overall administration of the corporation.

Furthermore, within two (2) years from the effectivity of

this Act, the Secretary, in coordination with the Governance
Commission for GOCCs (GCG), shall recommend to the
President, the restructuring of the foregoing corporations guided
by the objectives found hereunder:
(a) To eliminate overlaps, if any, in programs, within and
among the attached corporations, th a t serve the same
beneficiaries or chentele;
20

(b) To identify functions and programs of corporations

that properly belong to regular government agencies such as
policymaking, regulation, standard setting, and service
provision from functions that are imbued with commercial
motives which require a corporate structure. Thereafter, line
functions shall be transferred to the Department while
commercial functions shall be retained with the corporations;

(c) To clarify the role of each corporation along the

housing value chain, including housing production, primary
financing, secondary m arket development, and housing
insurance and guarantee to promote the development of a
comprehensive and synergetic housing industry: and
(d) To strengthen integration of functions, programs, and
services among the corporations and the Department to
leverage limited public resources and maximize the value of
housing products and services offered by the public sector.

Any reorganization, merger, streamlining, abolition or

privatization of any attached corporation shall be formulated
and implemented in coordination with the GCG and in
consultation with the GOCC concerned and the relevant
provisions of Republic Act No. 10149.
CHAPTER VII
Ot h e r P rontsions

Sec . 23. Housing One-Stop Processing Centers (HOPCs).

- The Department shall establish HOPCs in the regions,
which shall centralize the processing and issuance of all
required housing-related permits, clearances, and licenses in
accordance with Executive Order No. 45, series of 2001,
entitled “Prescribing Time Periods for Issuance of Housing
Related Certifications, Clearances and Permits, and Imposing
Sanctions for Failure to Observe the Same”; Provided, That
for the foregoing pui-pose, the respective ceilings for sociahzed,
low cost/economic and middle-income housing shall be jointly
determined by the Department and NEDA: Provided, further.
That at any time, but not more than once every two (2) years,
such ceilings may be reviewed or revised to conform to
prevailing economic conditions.
 21

All agencies involved in the issuance of said permits,

clearances and licenses shall be represented in the HOPC and
shall assign to HOPC regional centers personnel who shall be
sufficiently authorized to process and issue the same.

Sec . 24. Identification and Designation of Lands for Housing

and Urban and Rural Development. - For the purpose of
designating lands for housing and u rb an and ru ral
development, the Department of Human Settlements and
Urban Development (DHSUD), the Department of Environment
and Natural Resources (DENR), the Department of Agrarian
Reform (DAR), the Department of Agriculture (DA), the
Department of the Intenor and I.ocal Government (DILG), and
the Land Registration Authority (LRA) shall, within one
hundred eighty (180) days from the effectivity of this Act,
jointly identify government lands suitable for housing and
rural development: Provided, That all government lands which
have been idle for more than ten (10) years, except lands
owned by the GOCCs and government financial institutions
engaged in shelter financing as part of its fiduciary obhgation
to its members and/or are taken possession of in their ordinary
conduct of business, are hereby prioritized for housing and
urban development purposes: Provided, further. That lands
exempted from conversion under existing laws shall be excluded
from the coverage of this section: Provided, finally. That the
national lands identified under this section shall be transferred
to or administered by the Department, subject to the approval
of the President.

CHAPTER VIII

T ransitory P ro v isio n s

S e c . 25. Transfer of Functions and Assets. - The

HUDCC and the HLURB are hereby consolidated and
reconstituted as the Department and HSAC, respectively.

The following functions of the HLURB are hereby

transferred as stipulated hereunder:

(a) The land use planning and monitoring function,

including the imposition of penalties for noncompliance to
ensure that LGUs will follow the planning guidelines and
22

implement their CLUPs and zoning ordinances shall be

transferred to the Department;

(b) The regulatory function, including the formulation,

promulgation, and enforcement of rules, standards and
guidelines over subdivisions, condominiums and similar real
estate developments are hereby transferred to the Department;
(c) The registration, regulation and supervision of HOAs
are hereby transferred to the Department; and

(d) The adjudicatory mandate is hereby transferred to the

Commission.

The D epartm ent shall, by virtue of th is Act, be

subrogated to all rights and assume all the liabilities of the
HUDCC and HLURB. except those that may hereafter be
transferred to or absorbed by the Commission.

Sec . 26. Transition Period. —All transfer of functions,

assets, funds, personnel, equipment, properties, transactions,
and personnel in the affected national government agencies and
the formulation and implementation of the internal organic
structures, staffing patterns, operations systems, and revised
budgets of the Department and the Commission, shall be
completed within six (6) months from the effectivity of this
Act, during which existing personnel shall continue to assume
their posts in holdover capacities until new appointments are
issued. Accordingly, all applications for permits and hcenses,
and cases pending with HLURB upon the effectivity of this
Act and filed during the transition period shall continue to
be acted upon by the incumbents until the rules and
regulations as provided under this Act shall have been in force.

S ec . 27. Transfer of Assets and Obligations. ~ The

following dispositive actions shall be implemented within six
(G) months from the effectivity of this Act:
(a) The assets, equipment, funds, records, and pertinent
transactions of HUDCC and HLURB shall be transferred to
the Department and the Commission; and
(b) The Department and the Commission shall cause the
creation of additional positions and augment their budget
appropriations, as may be necessary.
 23

S e c . 28. Absorption or Separation from Service of

Employees of the Consolidated Agencies. — The existing
employees of HUDCC and HLURB shall enjoy security of
tenure and shall be absorbed by the Department or the HSAC,
in accordance with their staffing patterns and the selection
process as prescribed under Repubhc Act No. 6656, otherwise
known as the “Government Reorganization Law”.

Employees opting to be separated from the service as a

consequence of the consolidation and reconstitution under the
provisions of this Act shall, within one (1) month from their
separation or phase out from the service, receive separation
benefits in accordance with existing laws. In addition, those
who are qualified to retire shall be allowed to retire and be
entitled to all benefits provided, under any of the existing
retirement laws.

Sec . 29. Implementing Rules and Regulations. - The

HUDCC, HLURB, DBM and Civil Service Commission, in
coordination with NHA, SHFC, NHMFC, HDMF and other
concerned agencies, shall prepare and issue the Implementing
Rules and Regulations (IRR) of the Department within ninety
(90) days upon the effectivity of this Act.

Sec. 30. Implementing Authority. - The HLTDCC Chairperson

is hereby authorized to undertake the implementation of the
provisions of this Act and im plem ent the necessary
organizational changes within the specified six (6)-month
transition period or until a Department Secretary has been
appointed and has assumed office.

Sec . 31. Appropriations. - The amount necessary for the

initial implementation of the provisions of this Act shall be
charged against the current year’s appropriations of the
HUDCC and HLURB. Thereafter, such sums as may be
necessary for the continued implementation of this Act shall
be included in the annual General Appropriations Act. The
Department shall include in its proposed budget the necessary
amount to enable it to achieve its mandate of providing
adequate and affordable housing to all Filipinos.
24

CHAPTER IX
M isc ella n eo u s P rov isio ns

Sec . 32. Mandatory Review of the Implementation of this

Act. - The D epartm ent shall conduct a review of the
implementation of this Act at the end of the third (3"*) year
from the date of its effectivity and submit a report to Congress.

Sec . 33. Separability Clause. - If, for any reason, any

portion or provision of this Act shall be held unconstitutional
or invahd, the remaining provisions not affected thereby shall
continue to be in full force and effect.
Sec . 34. Repealing Clause. - Executive Order No. 90,
s. 1986 and Executive Order No. 648, s. 1981, are hereby
repealed.

All other laws, executive orders, proclamations, rules,

regulations, and other issuances or parts thereof which are
inconsistent with the provisions of this Act are hereby
amended or modified accordingly.

Sec . 35. Effectivity. —This Act shall take effect fifteen

(15) days after its pubhcation in the Official Gazette or in any
newspaper of general circulation.
Approved,

GLORIA MACAPAGAL-ARROYO VICENTE c. s o y ro iii

Speaker of the House President of thelSenate
of Representatives
 25

This Act which is a consolidation of Senate Bill No. 1578

and House Bill No. 6775 was passed by the Senate and the
House of R epresentatives on November 12, 2018 and
October 10, 2018, respectively.

Dante i^ B E ^ o i>. maling Myra Marie D. Vii larica

Actine/Secrelary General Secretary of the Senate
House of Representatives

Approved: FEB i 4 2019

RODRICTO 'ROA DUTERTE

President of the Philippines

REPUBLIC OP THE PHILIPPINES

PRRD 2016 - 009396