An Act Creating the Department of Human Settlements and Urban Development, Defining its Mandate, Powers and Functions, and Appropriating Funds Therefor

Seventeenth Congress
Third Regular Session

Begun and held in Metro Manila, on Monday, the twenty-third day of July, two thousand eighteen.

REPUBLIC ACT No. 11201

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 Philippine Congress Assembled:

CHAPTER I
TITLE AND DECLARATION OF POLICY

Section 1. Short Title. - This Act shall be known as the "Department of Human Settlements and Urban Development Act".

Section 2. Declaration of Policy. - The State shall, pursuant to Section 9, Article XIII 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 environmentally-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 facilitated 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
DEFINITION OF TERMS

Section 3. Definition of Terms. - As used in this Act, the following terms are defined as follows:

CHAPTER III
DEPARTMENT OF HUMAN SETTLEMENTS AND URBAN DEVELOPMENT

Section 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 primary national government entity responsible for the management of housing, human settlement and urban development. It shall 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.

Section 5. Powers and Functions. - The Department shall exercise the following powers and functions:

Section 6. Composition. - The Department 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.

Section 7. The Secretary. - The Secretary shall have the following functions:

The Secretary shall also serve as a voting member of the National Economic and Development Authority (NEDA) Boarth 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).

Section 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 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.

Section 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.

Section 10. Department Bureaus and Regional Offices. - The Department shall establish, operate, and maintain Bureaus under it such as. but not limited to:

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

Section 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
HUMAN SETTLEMENTS ADJUDICATION COMMISSION

Section 12. Reconstitution of the HLURB as the Human Settlements Adjudication Commission (HSAC). - The HLURB 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.

Section 13. Composition, Staffing Pattern and Compensation. -

Section 14. Qualifications and Terms of Office. - The qualifications and terms of office are as follows:

Section 15. Jurisdiction of the Commission. - The Commission shall have the exclusive appellate jurisdiction over:

The decision of the Commission shall be final and executory after fifteen (15) calendar days from receipt thereof by the parties.

Section 16. Jurisdiction of Regional Adjudicators. - The Regional Adjudicators shall exercise original and exclusive jurisdiction to hear and decide cases involving the following:

Section 17. Powers and Authorities of the Commission. - The Commission shall have the power and authority:

Section 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.

Section 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 regulatipns, who shall be responsible 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.

Section 20. Criminal Prosecution. - The criminal prosecution for violation of housing laws and regulations shall be instituted before criminal courts having appropriate jurisdiction.

CHAPTER V
NATIONAL HUMAN SETTLEMENTS BOARD

Section 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:

Provided, That the Home Development Mutual Fund’s corporate powers and functions shall continue to be exercised by its own Board of Trustees, as provided for under Republic Act No. 9679.

CHAPTER VI
ATTACHED CORPORATIONS

Section 22. Attached Corporations. - The Department shall exercise administrative supervision over the following housing agencies, which shall remain to be attached for purposes of policy and program coordination, monitoring and evaluation:

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 Republic 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:

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
OTHER PROVISIONS

Section 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 purpose, the respective ceilings for socialized, 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.

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.

Section 24. Identification and Designation of Lands for Housing and Urban and Rural Development. - For the purpose of designating lands for housing and urban and rural 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 Interior and Local 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 obligation 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
TRANSITORY PROVISIONS

Section 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:

The Department shall, by virtue of this 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.

Section 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 licenses, 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.

Section 27. Transfer of Assets and Obligations. - The following dispositive actions shall be implemented within six (6) months from the effectivity of this Act:

Section 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 Republic 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.

Section 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.

Section 30. Implementing Authority. - The HUDCC Chairperson is hereby authorized to undertake the implementation of the provisions of this Act and implement the necessary organizational changes within the specified six (6)-month transition period or until a Department Secretary has been appointed and has assumed office.

Section 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.

CHAPTER IX
MISCELLANEOUS PROVISIONS

Section 32. Mandatory Review of the Implementation of this Act. - The Department shall conduct a review of the implementation of this Act at the end of the third (3rd) year from the date of its effectivity and submit a report to Congress.

Section 33. Separability Clause. - If, for any reason, any portion or provision of this Act shall be held unconstitutional or invalid, the remaining provisions not affected thereby shall continue to be in full force and effect.

Section 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.

Section 35. Effectivity - This Act shall take effect fifteen (15) days after its publication in the Official Gazette or in any newspaper of general circulation.

Approved,

GLORIA MACAPAGAL-ARROYO
Speaker of the House of Representatives

VICENTE C. SOTTO III
President of the Senate

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 Representatives on November 12, 2018 and October 10, 2018, respectively.

DANTE ROBERTO P. MALING
Acting Secretary General
House of Representatives

MYRA MARIE D. VILLARICA
Secretary of the Senate

Approved: February 14, 2019

(Sgd.) RODRIGO ROA DUTERTE
President of the Philippines

I. Policy Development, Coordination, Monitoring and Evaluation

II. Environmental, Land Use and Urban Planning and Development

III. Housing and Real Estate Development Regulation

IV. Homeowners Association and Community-Development

V. General Powers