Republic Acts For Urban Development
Republic Acts For Urban Development
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, AND PROGRAM
SECTION 1
Section 1. Title. — This Act shall be known as the "Urban Development and Housing Act of 1992."
SECTION 2
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) Provide for the rational use and development of urban land to:
1. Equitable utilization of residential lands in urban and urbanizable areas.
2. Optimization of the use and productivity of land and urban resources.
3. Development of urban areas conducive to commercial and industrial activities.
4. Reduction in urban dysfunctions.
5. Access to land and housing.
(b) Uplift the conditions of the underprivileged and homeless citizens in urban areas and in
resettlement areas.
(c) Adopt workable policies to regulate and direct urban growth and expansion.
(d) Provide for an equitable land tenure system
SECTION 1
Section 1. Title. — This Act shall be known as the "Urban Development and Housing Act of 1992."
SECTION 2
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:
(e) Encourage more effective people's participation in the urban development process;
(f) Improve the capability of local government units in undertaking urban development and housing
programs and projects.
ARTICLE II
COVERAGE AND EXEMPTIONS
SECTION 4
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
SECTION 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;
(b) Those actually used for national defense and security of the State;
(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;
SECTION 4
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
SECTION 5. Exemptions. — The following lands shall be exempt from the coverage of 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.
ARTICLE III
NATIONAL URBAN DEVELOPMENT AND HOUSING FRAMEWORK
SECTION 6
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.
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.
ARTICLE IV
LAND USE, INVENTORY, ACQUISITION AND DISPOSITION
SECTION 7
SECTION 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;
(c) Unregistered or abandoned and idle lands; and
(d)Other lands.
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.
SECTION 8
SECTION 8. Identification of Sites for Socialized Housing. — After the inventory the local government
units and agaencies 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.
SECTION 9
SECTION 9. Priorities in the Acquisition of Land. — Lands for socialized housing shall be acquired in the
following order:
(a) Those owned by the Government
(b) Alienable lands of the public domain;
(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.
SECTION 10
SECTION 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.
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
SECTION 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.
SECTION 12
SECTION 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.
SECTION 13
SECTION 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.
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.
SECTION 14
SECTION 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.
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.
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.
ARTICLE V
SOCIALIZED HOUSING
SECTION 15
Section 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.
SECTION 16
Section 16. Eligibility Criteria for Socialized Housing Program Beneficiaries.
To qualify for the socialized housing program, a beneficiary:
• Must be a Filipino citizen;
• Must be an underprivileged and homeless citizen,
• Must not own any real property whether in the urban or rural areas; and
• Must not be a professional squatter or a member of squatting syndicates.
SECTION 17
Section 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.
SECTION 18
Section 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.
SECTION 18
The balanced housing development as herein required may also be complied with by the developers concerned in
any of the following manner:
SECTION 19
Section 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.
SECTION 20
Section 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:
• Reduction and simplification of qualification and accreditation requirements for participating private
developers;
• Creation of one-stop offices in the different regions of the country for the processing, approval and issuance
of clearances, permits and licenses.
• Simplification of financing procedures; and
• Exemption from the payment of the following:
(1) Project-related income taxes;
(2) Capital gains tax on raw lands used for the project;
(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.
SECTION 21
Section 21. Basic Services. - Socialized housing or resettlement areas shall beprovided by the local
government unit or the National Housing Authority incooperation with the private developers and concerned
agencies with the following basic services and facilities:
• Potable water;
• Power and electricity and an adequate power distribution system;
• Sewerage facilities and an efficient and adequate solid waste disposal system; and
• 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.
SECTION 22
Section 22. Livelihood Component. - To extent feasible, socialized housing and resettlement projects shall be
located near areas where employment opportunities are accessible.
SECTION 23
Section 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.
SECTION 24
Section 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.
ARTICLE VI
AREAS FOR PRIORITY DEVELOPMENT, ZONAL IMPROVEMENT PROGRAM SITES AND
SLUM IMPROVEMENT AND RESETTLEMENT PROGRAMS SITES
SECTION 25
Section 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.
SECTION 27
Section 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.
Penalty:
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.
SECTION 28
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:
• 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;
• When government infrastructure projects with available funding are about to be implemented; or
• When there is a court order for eviction and demolition.
In the execution of eviction or demolition orders involving underprivileged and homeless citizens, the following shall
be mandatory:
• Notice upon the effected persons or entities at least thirty (30) days prior to the date of eviction or demolition;
• 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;
SECTION 28
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:
SECTION 30
Section 30. Prohibition Against New Illegal Structures. - It shall be unlawful for any person to construct any
structure in areas mentioned in the preceding section.
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.
ARTICLE VIII
COMMUNITY MORTGAGE PROGRAM
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.
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;
b) Properties sold under the CMP shall be exempted from the capital gains tax; and
c) Beneficiaries under the CMP shall not be evicted nor dispossessed of their lands or
improvements unless they have incurred arrangements in payments of amortizations for
three (3) months.
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.
ARTICLE IX
RELATED STRATEGIES
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.
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;
b) Safety and convenience of travel;
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.
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.
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.
ARTICLE X
PROGRAM IMPLEMENTATION
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. They shall prepare a comprehensive land use plan for their
respective localities in accordance with the provisions of this Act.
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;
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
2) Assistance in obtaining funds and other resources needed in the urban development and
housing programs in their areas of responsibility.
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;
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
d) The Home Insurance Guaranty Corporation shall design an appropriate guarantee scheme to
encourage financial institutions to go into direct lending for housing.
GLORIA MACAPAGAL-ARROYO
President of the Philippines
REPUBLIC ACT NO. 9653
AN ACT ESTABLISHING REFORMS IN THE REGULATION OF RENT OF CERTAIN RESIDENTIAL
UNITS, PROVIDING THE MECHANISM THEREFORE AND FOR OTHER PURPOSES.
This Act shall be known and cited as the "Rent Control Act of 2009".
GLORIA MACAPAGAL-ARROYO
President of the Philippines
REPUBLIC ACT NO. 9507
AN ACT TO ESTABLISH A SOCIALIZED AND LOW-COST HOUSING LOAN
RESTRUCTURING AND CONDONATION PROGRAM, PROVIDING THE MECHANISMS
THEREFOR, AND FOR OTHER PURPOSES
This Act shall be known as the "Socialized and Low-Cost Housing Loan
Restructuring Act of 2008".
COVERAGE
• Government Service Insurance System (GSIS)
• Social Security System (SSS)
• Home Development Mutual Fund (HDMF) or Pag IBIG Fund
• National Home Mortgage Finance Corporation (NHMFC)
• Social Housing Finance Corporation (SHFC)
• Home Guaranty Corporation (HGC)
• National Housing Authority (NHA)
Provided, That the original principal amount of the
housing loans shall not exceed Two Million Five Hundred Thousand
pesos (P2,500,000.00).
That an interest rate of not more than the interest of the original
loan or more than twelve percent (12%) whichever is lower, shall be
imposed upon the restructured loan:
Provided, finally, That all corresponding penalties and surcharges
which the NHMFC and SHFC may have to pay their funders as a result
of the implementation of this Act may be adjusted and condoned;
In the event that the borrower fails to pay three (3) consecutive
monthly amortization during the term of the restructured loan, the
concerned GFI or housing agency may pursue foreclosure proceedings
on the property.
REPUBLIC ACT NO. 9507
THIS ACT WHICH IS A CONSOLIDATION OF SENATE BILL NO. 1987 AND HOUSE BILL NO.
4220 WAS FINALLY PASSED BY THE SENATE AND THE HOUSE OF REPRESENTATIVE ON
AUGUST 27, 2008 AND AUGUST 26, 2008, RESPECTIVELY.
GLORIA MACAPAGAL-ARROYO
President of the Philippines
REPUBLIC ACT NO. 9397
AN ACT AMENDING SECTION 12 OF REPUBLIC ACT NO. 7279, OTHERWISE KNOWN AS
THE URBAN DEVELOPMENT AND HOUSING ACT OF 1992, AND FOR OTHER PURPOSES
SECTION 1
SECTION 1. Section 12 of Republic Act No. 7279, otherwise known as the "Urban Development and
Housing Act of 1992," is hereby amended to read as follows:
"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 the 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
National Housing Authority may deem most expedient in carrying out the purposes of this
Act."
"Consistent with this provision, a scheme for public rental housing may be adopted.
SECTION 1
SECTION 1. Section 12 of Republic Act No. 7279, otherwise known as the "Urban Development and
Housing Act of 1992," is hereby amended to read as follows:
"a) The lands are within a residential zone as classified by the local
government unit concerned;
"b) The lands are certified to be for socialized housing purpose by the Housing
and Urban Development Coordinating Council;
"d) The cost of said lands shall be made affordable to the beneficiaries, taking
into consideration their income and land valuation required in Section 13 of this
Act;
"e) Any subsequent disposition of the said land shall be subject to the
limitations provided in Section 14 of this Act; and
"f) The occupants have resided on the said lands subject to the prohibitions
provided in Section 30 of this Act."
SECTION 2
SEC. 2. Separability Clause. - If any part or provision of this Act shall be held unconstitutional or invalid,
other provision hereof that are not affected thereby shall continue to be in full force and effect.
SECTION 3
SEC. 3. Repealing Clause. - All laws, presidential decrees, executive orders, rules, regulations, or parts
thereof which are not consistent with this Act, are hereby repealed, amended or modified accordingly.
SECTION 4
SEC. 4. Effectivity. - This Act shall take effect fifteen (15) days after its publication in at least two newspapers
of general circulation.
REPUBLIC ACT NO. 9397
THIS ACT WHICH IS A CONSOLIDATION OF SENATE BILL NO. 2518 AND HOUSE BILL NO.
3834 WAS FINALLY PASSED BY THE SENATE AND THE HOUSE OF REPRESENTATIVES ON
JANUARY 30, 2007 AND JANUARY 29, 2007, RESPECTIVELY.
GLORIA MACAPAGAL-ARROYO
President of the Philippines
REPUBLIC ACT NO. 9341
AN ACT ESTABLISHING REFORMS IN THE REGULATION OF RENT OF CERTAIN
RESIDENTIAL UNITS, PROVIDING THE MECHANISMS THEREFOR AND FOR OTHER
PURPOSES
SECTION 1
SECTION 1. Short Title. - This Act shall be known and cited as the "Rent Control Act of 2005."
SECTION 3
SECTION 3. Limit on Increases in Rent. - The rent of any residential unit covered by this Act shall not be
increased by more than ten percent (10%) annually as long as the unit is occupied by the same lessee. When
the residential unit becomes vacant, the lessor may set the initial rent for the next lessee.
SECTION 5
SECTION 5. Rent and Requirement of Bank Deposit. - Rent shall be paid in advance within the first five (5)
days of every current month or the beginning of the lease agreement unless the contract of lease provides for
a later date of payment. The lessor cannot demand more than one (1) month advance rent. Neither can he
demand more than two (2) months deposit which shall be kept in a bank under the lessor's account name
during the entire duration of the lease agreement. Any and all interest that shall accrue therein shall be
returned to the lessee at the expiration of the lease contract.
SECTION 6
SECTION 6. Assignment of Lease or Subleasing. - Assignment of lease or subleasing of the whole or any
portion of the residential unit, including the acceptance of boarders or bedspacers, without the written consent
of the owner/lessor is prohibited.
SECTION 8
SECTION 8. Prohibition Against Ejectment by Reason of Sale or Mortgage. - No lessor or his successor-
in-interest shall be entitled to eject the lessee upon the ground that the leased premises have been sold or
mortgaged to a third person regardless of whether the lease or mortgage is registered or not.
SECTION 9
SECTION 9. Rent-to-Own Scheme. - At the option of the lessor, he or she may engage the lessee in a
written rent-to-own agreement that will result in the transfer of ownership of the particular dwelling in favor of
the latter. Such an agreement shall be exempt from the coverage of Section 3 of this Act.
SECTION 11
SECTION 11. Coverage of this Act. - All residential units in the National Capital Region and other highly
urbanized cities the total monthly rent for each of which does not exceed Ten thousand pesos (P10,000.00)
and all residential units in all other areas the total monthly rent for each of which does not exceed Five
thousand pesos (P5,000.00) as of the effectivity date of this Act shall be covered, without prejudice to existing
contracts.
SECTION 12
SECTION 12. Penalties. - A fine of not less than Five thousand pesos (P5,000.00) nor more than Fifteen
thousand pesos (P15,000.00) or imprisonment of not less than one (1) month and one (1) day to not more
than six (6) months or both shall be imposed on any person, natural or juridical, found guilty of violating any
provision of this Act.
SECTION 15
SECTION 15. Separability Clause. - If any provision or part hereof is held invalid or unconstitutional, the
remainder of the law or the provision not otherwise affected shall remain valid and subsisting.
SECTION 16
SECTION 16. Repealing Clause. - Any law, presidential decree or issuance, executive order, letter of
instruction, administrative order, rule or regulation contrary to or inconsistent with the provisions of this Act is
hereby repealed, modified or amended accordingly.
SECTION 17
SECTION 17. Effectivity Clause. - This Act shall take effect beginning fifteen (15) days after its complete
publication in at least two (2) newspapers of general circulation until 31 December 2008.
REPUBLIC ACT NO. 9341
THIS ACT WHICH IS A CONSOLIDATION OF SENATE BILL NO. 1956 AND HOUSE BILL NO.
3356 WAS FINALLY PASSED BY THE SENATE AND THE HOUSE OF REPRESENTATIVES ON
OCTOBER 25, 2005 AND NOVEMBER 7, 2005, RESPECTIVELY.
GLORIA MACAPAGAL-ARROYO
President of the Philippines
REPUBLIC ACT NO. 8368
AN ACT REPEALING PRESIDENTIAL DECREE NO. 772, ENTITLED
'PENALIZING SQUATTING AND OTHER SIMILAR ACTS
SECTION 1
SECTION 1. -This Act shall be known as the "Anti-Squatting Law Repeal
Act of 1997."
SECTION 2
SECTION 2. Repeal. - Presidential Decree No. 772, entitled "Penalizing Squatting and Other Similar Acts"
is hereby repealed.
SECTION 3
SECTION 3. Effect on pending cases. - All pending cases under the provisions of Presidential Decree No.
772 shall be dismissed upon the effectivity of this Act.
SECTION 4
SECTION 4. Effect on Republic Act No. 7279.— Nothing herein shall be construed to nullify,
eliminate or diminish in any way Section 27 of Republic Act No. 7279 or any of its provisions
relative to sanctions against professional squatters and squatting syndicates.
SECTION 5
SECTION 5. Effectivity.— This Act shall take effect thirty (30) days after its publication in two (2)
newspapers of national circulation.
If the offender is a corporation or association, the maximum penalty of five years and the fine of five
thousand pesos shall be imposed upon the president, director, manager or managing partners thereof.
SECTION 2
SECTION 2. This decree shall take effect immediately.
Done in the City of Manila, this 20th day of August, in the year of Our Lord,
nineteen hundred and seventy-five.
REPUBLIC ACT NO. 8501
AN ACT TO RESCUE THE NATIONAL SHELTER PROGRAM OF THE GOVERNMENT BY
CONDONING THE PENALTIES ON ALL OUTSTANDING/DELINQUENT HOUSING LOAN
ACCOUNTS WITH ANY OF THE GOVERNMENT INSTITUTIONS AND AGENCIES INVOLVED
IN THE NATIONAL SHELTER PROGRAM AND BY AMENDING PRESIDENTIAL DECREE NO.
1752, AS AMENDED
SECTION 1
SECTION 1. -This Act shall be known as the "Housing Loan Condonation Act of 1998."
SECTION 2
Section 2. Condonation clause.
- (a) All unpaid penalties on housing loans from any of the government institutions and
agencies involved in the National Shelter Program of the Government, including but not
limited to the Government Service Insurance System (GSIS), Social Security System (SSS),
Home Development Mutual Fund (Pag-ibig Fund), National Home Mortgage Finance
Corporation (NHMFC), and the National Housing Authority (NHA), are hereby condoned:
Provided, That all due and demandable arrearages composed of the principal and interest
are restructured and paid within the remaining period of the loan;
- (b) In the event that a borrower is able to pay only part of his/her due and
demandable arrearages, only the penalties corresponding to the portion paid
shall be condoned;
SECTION 2
Section 2. Condonation clause.
- (c) A borrower must not have availed of any previous condonation program from any
government institution or agency involved in the National Shelter Program; and
- (d) The corresponding penalties due to the funders of the NHMFC on all delinquent
accounts under its management shall likewise be condoned up to the extent paid by
individual borrowers.
SECTION 3
Section 3. Amendatory clause.
- To ensure the continuity of this Act, the Home Development Mutual Fund (Pag-ibig Fund)
which is a major financing institution of the National Shelter Program is hereby granted the
power to condone. Sec. 12 of Presidential Decree No. 1752, as amended by Republic Act
No. 7742, is hereby further amended to read as follows:
"SEC. 12. Powers of the Board. - The Board shall have the following powers:
a) To formulate policies, rules and regulations to carry out effectively the functions of the Fund
under this Act;
b) To direct the operations and administration of the Fund;
c) To authorize expenditures of the Fund in the interest of effective administration and operations,
to adopt from time to time the budgets for said purposes;
d) To condone, in whole or in part, penalties imposed on loans of members-borrowers of the fund
who for justifiable reasons, failed to pay on time any obligation due to the Fund subject to the
following requirements or conditions:
SECTION 3
Section 3. Amendatory clause.
d) To condone, in whole or in part, penalties imposed on loans of members-borrowers of the
fund who for justifiable reasons, failed to pay on time any obligation due to the Fund subject
to the following requirements or conditions:
That a member-borrower may apply only once for the condonation of penalties on the
entire loan amount.
That the loan amount must have been on arrears for a period of at least two (2) years.
That the annual total family income shall not be more than Three Hundred Thousand
pesos (P300,000.00).
SECTION 5
Section 2 Implementing rules and regulations. - All government institutions and agencies involved in
the national shelter program, including but not limited to those mentioned in Sec. 2, are hereby required
to promulgate the implementing rules and regulations within sixty (60) days after the effectivity of this
Act.
SECTION 6
SECTION 6 Repealing clause. - All laws, executive orders, rules or regulations, or any part
thereof, inconsistent with any provision of this Act are hereby repealed or modified accordingly.
SECTION 7
Section 7 Effectivity clause.- This Act shall take effect fifteen (15) days after its complete
publication in the Official Gazette or in at least two (2) national newspapers of general
circulation.
GLORIA MACAPAGAL-ARROYO
President of the Philippines
REPUBLIC ACT NO. 7835
AN ACT PROVIDING FOR A COMPREHENSIVE AND INTEGRATED SHELTER AND URBAN
DEVELOPMENT FINANCING PROGRAM BY INCREASING AND REGULARIZING THE
YEARLY APPROPRIATION OF THE MAJOR COMPONENTS OF THE NATIONAL SHELTER
PROGRAM, INCLUDING THE ABOT-KAYA PABAHAY FUND UNDER REPUBLIC ACT NO.
6846, AUGMENTING THE AUTHORIZED CAPITAL STOCK AND PAID-UP CAPITAL OF THE
NATIONAL HOME MORTGAGE FINANCE CORPORATION (NHMFC) AND THE HOME
INSURANCE AND GUARANTY CORPORATION (HIGC), IDENTIFYING OTHER SOURCES
OF FUNDING AND APPROPRIATING FUNDS FOR THE PURPOSES.
"Comprehensive and Integrated Shelter Financing Act of 1994."
Sec. 3. Statement of Objectives.
Towards this end, the State shall:
a) Ensure continuous funding support to vigorously implement the government's programs for urban
and rural housing, resettlement, the development of sites and services, and the renewal of blighted
areas;
b) Enhance the capability of low-income groups to acquire decent and low-cost housing units through
the introduction of support mechanisms and facilities which shall render affordable such
acquisitions;
c) Provide for a strong and sustainable housing finance program with complementary support systems,
which will pump prime, build up and strengthen available sources of cheap and long-term capital;
d) Increase the public and private sectors' participation in the investment of their funds into the
mainstream of housing finance for developmental and end-user financing requirements of the
National Shelter Program;
e) Enjoin the active participation of the local government units in the socialized housing programs
through adequate measures for housing development in their respective areas;
f) Strengthen the capital base and optimize the resources of the National Government and the
government's housing institutions towards a balanced, coordinated and integrated shelter delivery
system;
g) Serve the housing requirement of all the underprivileged and those gainfully employed but are not
members of any funding agencies such as GSIS, SSS, and Pag-IBIG; and
h) Focus the government's full financial, technical and manpower resources in addressing the shelter
needs of the lowest thirty percent (30%) of the population and with the private sector's cooperation,
the higher socioeconomic percentiles of our country's population.
Sec. 4. National Shelter Program Implementation.
Consistent with the aforementioned policy and objectives, the Housing and Urban Development
Coordinating Council (HUDCC), through the respective agencies, shall intensify the implementation of the
vital components of the National Shelter Program requiring government budgetary assistance as follows:
• Resettlement Program.
• Medium-Rise Public and Private Housing.
• The National Housing Authority (NHA).
• The National Home Mortgage Finance Corporation (NHMFC).
• The Local Government Unit (LGU) or the Public Estates Authority (PEA).
• The Presidential Commission for the Urban Poor (PCUP).
• Community Mortgage Program.
• Cost Recoverable Programs.
• Local Housing.
Sec. 5. Trust Fund for the National Housing Authority.
To enable the National Housing Authority to carry out the programs mandated under this Act,
specifically the Medium-Rise Public and Private Housing and the Local Housing Programs, a Trust Fund to
be managed and administered by the NHA is hereby created.
Sec. 6. Capitalization of National Home Mortgage Finance Corporation (NHMFC).
The authorized capital stock of the NHMFC is hereby increased from Five hundred million pesos
(P500,000,000) to Five billion five hundred million pesos (P5,500,000,000) to expand its leveraging
capability based on the volume of mortgage loans being serviced, to improve its profitability by reducing
the average cost of its funds made available for home-lending programs, and to enable the NHMFC to
maintain the debt-to-equity ratio of 10:1.
Sec. 7. Capitalization of Home Insurance and Guaranty Corporation (HIGC).
The authorized capital stock of the HIGC is hereby increased from One billion pesos
(P1,000,000,000) to Two billion five hundred million pesos (P2,500,000,000) to strengthen the capability
of the Corporation in the provision of guarantee, loan/credit insurance and other incentives to assist
home building/development and to sustain housing finance: Provided, however, That the aggregate
amount of the outstanding guaranty obligations shall not, at any one time, exceed twenty (20) times the
capital and surplus of the HIGC.
Sec. 8. Expanding the Scope and Usage of the Abot-Kaya Pabahay Fund.
To be more responsive to the need of enhancing affordability of low-income families to acquire
housing and to provide a strong support for the operation of a secondary mortgage market system by the
NHMFC as a stable source of long-term funds for housing finance, the Abot-Kaya Pabahay Fund shall be
made a continuing support system of the National Shelter Program, with its scope, usage and coverage
accordingly expanded.
The existing total budgetary allocation of Two Billion Five Hundred Million Pesos (P2,500,000,000) of the
Abot-Kaya Pabahay Fund under Republic Act No. 6846 shall be increased to Five Billion Five Hundred
Million Pesos (P5,500,000,000) and shall be appropriated until such time that the total funding required
under this Act shall have been released.
a) Additional One Hundred Million Pesos (P100,000,000) annually to the cash flow guarantee
to extend the mortgage insurance coverage for housing loans within the lowest interest
loan package under the Unified Home Lending Program as a cushion against loan
delinquency and ensure a viable cash flow for agencies extending housing loans.
b) Annual allocation of Five Hundred Million Pesos (P500,000,000) as liquidity and
interest/subsidy support to the secondary mortgage market operation of NHMFC to serve
as an alternative mechanism for sourcing housing funds, tapping in the process private and
public long-term development funds.
c) The Abot-Kaya Pabahay Fund shall be allocated annually among its various components in
the following amounts:
P300 Million—Cash flow guarantee;
P500 Million—Interest subsidy and liquidity support;
P200 Million—Amortization support; and
P100 Million—Development financing.
Sec. 9. Appropriations by the National Government.
The corresponding amounts specified hereunder shall be appropriated annually for a period of
five (5) years or until such time that the total fund requirement provided for in this Act shall have been
fully released specifically for the following programs:
a) Five Billion and Two Hundred Million Pesos (P5,200,000,000) to finance the Resettlement
Program under Section 4(a) of this Act;
b) Three Billion Pesos (P3,000,000,000) as subsidy for land acquisition, construction and
implementation of the Medium-Rise Public and Private Housing Program mandated under
Section 4(b) of this Act;
c) Twelve Billion Seven Hundred Eighty Million Pesos (P12,780,000,000) for the community
mortgage program under Section 4(c) of this Act;
d) Two Billion Five Hundred Forty-Two Million Pesos (P2,542,000,000) for the cost recoverable
program under Section 4(d) of this Act; and
e) Three Billion Pesos (P3,000,000,000) for the Local Housing Program under Section 4(e) of this
Act.
There shall be a continuing annual appropriation in the total amount of not less than Five Billion
Pesos (P5,000,000,000) starting from the fiscal year 1995 and every fiscal year thereafter until such time
that the total funding requirement under this Act shall have been fully released: Provided, however, That
any fund in excess of the total funding requirements under this Act that may be derived from any or all of
the sources provided herein, shall be used to augment the NHA's Resettlement Program fund to cushion
the impact of displacement arising from eviction and demolition as provided in Section 28 of R.A. No.
7279, to wit:
a) When persons or entities occupy danger areas such as esteros, railroad tracks, garbage dumps,
river banks, 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.
Sec. 10. Fund Sources.
The National Government is hereby mandated to allocate and appropriate the necessary funds
for the continuing requirements of this Act, including whatever funds which may be made available from,
but not limited to, the following sources:
a) Proceeds from documentary stamp tax: Provided, That Section 22(a) of Republic Act No. 7660 shall
be amended to read as follows:
"SEC. 22. The incremental revenues from the increase in the documentary stamp taxes under this Act
shall be set aside for the following purposes:
a) Twenty-five percent (25%) of the incremental revenues in 1994 and 1995 under this Act
shall be automatically appropriated for the Unified Home Lending Program under Executive
Order No. 90 particularly for mass-socialized housing to be allocated as follows:fifty percent
(50%) for mass-socialized housing; thirty percent (30%) for the community mortgage
program administered by the National Home Mortgage Finance Corporation; and twenty
percent (20%) for land banking and development to be administered by the National
Housing Authority: Provided, That not more than one percent (1%) of the respective
allocations hereof shall be used for the administrative expenses: Provided, further, That
incremental revenues not appropriated in 1994 and 1995 shall be carried over to
succeeding years until allocations hereinprovided shall have been fully exhausted.“
b) Forty percent (40%) of the mandatory fifty percent (50%) share of the National
Government from the annual aggregate gross earnings of the Philippine Amusement and
Gaming Corporation (PAGCOR), as provided for in Section 12 of Presidential Decree No.
1869, beginning 1996.
c) Twelve percent (12%) of all the proceeds of any sale, after deducting all expenses related to
the sale, of portions of Metro Manila military camps shall be used to finance mass social
housing projects for underprivileged and homeless citizens of the country. Section 8 of
Republic Act No. 7227, therefore, is hereby amended accordingly.
d) (d) All fund sources outlined in Republic Act No. 7279, not accruing to the local
government units, to wit:
1) A minimum of fifty percent (50%) from the annual net income of the Public Estates
Authority to be used by the National Housing Authority to carry out its program of
land acquisition for resettlement purposes;
2) Proceeds from ill-gotten wealth not otherwise previously set aside for any other
purpose;
3) Loans, grants, bequests and donations, whether from local or foreign sources; and
4) Proceeds from the sale or disposition or alienable public lands in urban areas.
e) Proceeds from forfeited customs bonds;
f) A maximum of fifty percent (50%) of savings from the budgeted amount for debt servicing.
Sec. 11. Other Fund Sources.
The following non-budgetary funding sources shall be used to augment those mentioned in the
preceding section in the implementation of a Comprehensive and Integrated Shelter and Urban
Development Financing Program:
a) Ten percent (10%) of the mandatory annual contributions by Philippine Charity Sweepstakes Office to
the charity fund as provided for in Section 6 of R.A. No. 1169 shall be channeled to socialized and
lowcost housing;
b) All unused agri-agra allocation funds from banks in the preceding year shall be invested in socialized
and low-cost housing: Provided, That the used agri-agra portion has been solely devoted to
agricultural or agrarian reform credit; and
c) The Bangko Sentral ng Pilipinas shall make available its rediscounting facilities to institutions or
entities providing financing for socialized and low-cost housing in amounts and rates to be
determined by the Monetary Board, taking into consideration the policy of the State as enunciated in
this Act.
Sec. 12. Audit.
The Commission on Audit shall be the ex-officio Auditor of all the funds provided for in this Act
and is, accordingly, empowered to designate and appoint its representative(s) and other subordinate
personnel to perform such necessary audit duties as the Commission shall direct. They shall be
responsible to and shall only be removed by the Commission on Audit.
Sec. 13. Reports and Funding Program.
The National Shelter Agencies are hereby mandated to submit semi-annual reports of their
operations, fund usage and performance to the Office of the President and Congress. They shall likewise
submit to Congress their plans and funding programs for the succeeding year not later than the first
quarter of the current year.
Sec. 14. Sunset Review.
As the need arises, the Congress shall conduct a sunset review of the accomplishments and
impact of the National Shelter Program as well as the performance of its implementing agencies for
purposes of determining whether or not the programs and the corresponding appropriations mentioned
in this Act deserve to be continued based on a costbenefit analysis thereof. If the result of the review is
unfavorable to any program or its appropriate implementing program, then the Committee of Congress
that has legislative jurisdiction over such entity shall not report favorably any bill or resolution which
authorizes the enactment of a new budget authority on such entity.
REPUBLIC ACT NO. 7835
GLORIA MACAPAGAL-ARROYO
President of the Philippines
REPUBLIC ACT NO. 8437
AN ACT FURTHER EXTENDING THE RENT CONTROL PERIOD FOR CERTAIN RESIDENTIAL
UNITS AMENDING THEREBY BATAS PAMBANSA BLG. 877 ENTITLED: "AN ACT
PROVIDING FOR THE STABILIZATION AND REGULATION OF RENTALS OF CERTAIN
RESIDENTIAL UNITS, AND FOR OTHER PURPOSES, AS AMENDED
Section 1.
Beginning January 1, 1998 and for a duration of four (4) years thereafter ending on December
31, 2001, monthly rentals of all residential units covered by Batas Pambansa Blg. 877, shall not be
increased by the lessor by more than the rates herein provided for:
PERIOD MAXIMUM INCREASE
January 1, 1998 - December 31, 1998 Fifteen percent (15%)
January 1, 1999 - December 31, 1999 Fifteen percent (15%)
January 1, 2000 - December 31, 2000 Fifteen percent (15%)
January 1, 2001 - December 31, 2001 Fifteen percent (15%)
Provided, That the basis for the maximum increase herein authorized for the four-year period
shall be the actual monthly rental as of December 31, 1997:
Provided, further, That the increase authorized herein shall be cumulative and compounded.
Section 2.
This Act shall take effect on January 1, 1998, following its publication in at least two (2)
newspapers of general circulation.
REPUBLIC ACT NO. 8437
GLORIA MACAPAGAL-ARROYO
President of the Philippines