AN ACT CREATING THE QUEZON CITY DEVELOPMENT AUTHORITY (QCDA), DEFINING ITS POWERS AND FUNCTIONS, PROVIDING FOR ITS ORGANIZATIONAL STRUCTURE AND CAPITALIZATION

Sixteenth Congress
Second Regular Session

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

REPUBLIC ACT NO. 10646

AN ACT CREATING THE QUEZON CITY DEVELOPMENT AUTHORITY (QCDA), DEFINING ITS POWERS AND FUNCTIONS, PROVIDING FOR ITS ORGANIZATIONAL STRUCTURE AND CAPITALIZATION

Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:

Section 1. Short Title. – This Act shall be known as the "Charter of the Quezon City Development Authority".

Section 2. Declaration of Policy. – The State recognizes the vital role of government-owned or -controlled corporations (GOCCs) in social and economic development. Thus, it is hereby declared the policy of the State to authorize the creation of GOCCs that may be used to implement certain programs of local government units (LGUs) without violating their autonomy. The GOCCs may also assist LGUs in providing their constituents access to socialized housing, health, education and the other basic services. Towards this end, the State shall allow LGUs, with their available resources, to venture with GOCCs to accomplish the purpose of this Act.

Section 3. Definition of Terms. – As used in this Act:

Section 4. Creation. – There is hereby created a government-owned or -controlled corporation to be known as the Quezon City Development Authority (QCDA), which shall have its principal office in Quezon City.

The QCDA shall be governed by the provisions of Republic Act No. 10149, otherwise known as the "GOCC Governance Act of 2011", and be subject to the regulatory jurisdiction of the Governance Commission for GOCCs (GCG).

Section 5. Objectives. – The QCDA shall have the following objectives:

Section 6. Socialized Housing Development as Primary Mandate. – The QCDA shall maintain as its primary focus the development of socialized housing and urban renewal to be accomplished in any of the following ways:

For this purpose, the QCDA shall be required to develop an area for socialized housing equivalent to at least sixty percent (60%) of its total landholding.

Section 7. Capitalization and Funding. – The QCDA shall have an authorized capital stock of Two billion pesos (P2,000,000,000.00) divided into two billion (2,000,000,000) shares having a par value of One peso (P1.00) each, which may be available for subscription by the Quezon City government.

Section 8. Powers and Functions of the QCDA. – The QCDA shall have the following powers and functions in accordance with the established urban development and housing plan prepared by the Quezon City government:

Section 9. Board of Directors. – The QCDA shall be governed by a board of directors, hereinafter referred to as the "Board", which shall be composed of nine (9) members, who shall be the following:

Appointive members of the Board must be qualified by the Fit and Proper Rule as determined by the GCG in accordance with the provisions of Republic Act No. 10149. They shall be appointed by the President of the Philippines from a shortlist submitted by the GCG in accordance with the provisions of Republic Act No. 10149: Provided, That in all Board positions, the GCG shall give utmost consideration to the nominees recommended by the City Mayor and the City Council of Quezon City, recommending at least three (3) names for every vacant position.

The members of the Board may receive per diems, allowances, and incentives in accordance with the guidelines promulgated by the GCG.

The Board shall meet regularly at least once a month, but special meetings may be called either by the Chairperson or by five (5) members of the Board, when necessary. Five (5) members of the Board shall constitute a quorum and any approval of business shall require the concurrence of at least five (5) members.

The Board may hire from time to time up to a maximum of two (2) consultants from the private sector who are known professionals in the urban renewal and housing industry, with proven track record. They shall be entitled to receive honoraria to be determined by the Board.

Section 10. Powers and Duties of the Board. – The Board shall have the following powers and duties:

Section 11. Duties and Powers of the Chairman of the Board. – The Chairman shall:

Section 12. General Manager. – The General Manager shall be elected by the Board from the appointive members. The General Manager must possess either:

The General Manager shall be the Chief Executive Officer of the QCDA and shall be entitled to receive a salary in accordance with the guidelines promulgated by the GCG, and shall serve for a fixed term of one (1) year, unless sooner removed by the Board for cause.

Section 13. Duties and Responsibilities of the General Manager. – The General Manager, as the Chief Executive Officer of the QCDA, shall have the following duties and responsibilities:

Section 14. Organizational Structure of the QCDA. – The General Manager shall prepare the organizational structure of the QCDA that would best carry out its powers and functions, and attain the objectives of this Act and shall present the same to the Board for its approval.

Subject to approval of the Board, the General Manager shall likewise determine the rates of allowances, honoraria and other additional compensation, which the QCDA is hereby authorized to grant its officers, technical staff, consultants and personnel detailed to it.

In all cases, the QCDA shall be covered by Republic Act No. 6758, as amended by Joint Resolution Nos. 1, series of 1994, and 4, series of 2009, the Compensation and Position Classification System for GOCCs under Republic Act No. 10149, as approved by the President of the Philippines: Provided, That prior approval from the GCG shall be obtained therefor.

Section 15. Inventory of Lands. – Within three (3) months from the effectivity of this Act, an inventory of all kinds of lands and improvements thereon within the territorial jurisdiction of Quezon City shall be conducted by three (3) reputable independent appraisers as chosen by the Board. The inventory shall include the following:

In conducting the inventory, the independent appraisers shall indicate the type of land use, the degree of land utilization and other data or information necessary to carry out the purposes of this Act. They shall submit their report on the appraisal and inventory of lands to the Board, the Quezon City Mayor and the Quezon City Council.

Section 16. Identification of Sites for Socialized Housing. – After the inventory, the QCDA, in coordination with the Quezon City Council, shall identify lands for socialized housing and resettlement areas suited for the immediate and future needs of marginal and low income families in Quezon City, taking into consideration the availability of basic services and facilities, their accessibility and proximity to job sites and other economic opportunities, and the actual number of registered beneficiaries.

Lands for socialized housing may be identified from:

The QCDA shall give budgetary priority to on-site development of government lands.

Section 17. Completed Projects: Management and Disposition. – The QCDA shall determine, establish and maintain the most feasible and effective program for the management or disposition of specific urban renewal, housing or resettlement projects. Unless otherwise decided by the Board, completed housing or resettlement projects of the Quezon City government shall be managed and administered by the QCDA: Provided, That the communities and residents have been fully consulted on such arrangements.

Section 18. Eligibility Criteria for Socialized Housing Program Beneficiaries. – The following shall qualify for the socialized housing program:

Beneficiaries may also include employees of government entities with offices situated in Quezon City whose salaries are not higher than salary grade 18 or its equivalent as certified by their offices’ respective personnel department: Provided, That they are not yet beneficiaries of any housing program.

In coordination with the Quezon City Council, the QCDA shall design a system for the identification and registration of qualified program beneficiaries in accordance with the objectives of this Act.

Section 19. Issuance of Bonds and Power to Borrow. – The QCDA may be authorized to issue bonds and other securities and enter into any form of indebtedness to finance the implementation of its urban renewal and housing program: Provided, That only so much of such bonds and securities as the annual project implementation would require shall be issued and sold: Provided, further, That no bonds and securities shall be issued unless eighty percent (80%) of those already issued have been sold: Provided, furthermore, That the total amount of the bonds or securities and long-term debts issued shall in no case exceed twenty (20) times the paid-up capital and surplus of the QCDA: Provided, finally, That in no instance shall the sovereign guarantee of the Republic of the Philippines be required or allowed.

The QCDA, in consultation with the Secretary of Finance and the Monetary Board, shall prescribe the form, the rate of interest and denomination, maturities, negotiabilities, call or redemption features and all other terms and conditions for the bonds and securities to be issued.

The bonds and securities issued under this Act, including the income thereof shall be exempted from all kinds of local taxes and from attachment, execution and seizure which facts shall be stated on the face thereof.

Section 20. Reports. – The QCDA shall submit an annual report to the Office of the President of the Republic of the Philippines, both Houses of Congress, the Representatives of Quezon City, the Quezon City Mayor and the Quezon City Council indicating,, among others, the urban renewal and housing program being implemented, the stages of implementation and the financial position of the QCDA. It shall likewise submit such periodic and other reports as may be required by the GCG, the Quezon City Mayor and the Quezon City Council:

The Quezon City Council shall undertake the internal and external monitoring of the housing and urban development of the QCDA to ensure complete and objective information about the progress of resettlement and shall also:

Section 21. Dissolution. – In the event the QCDA is dissolved for any reason, all of its properties and other assets remaining at the time of such dissolution shall revert to the Quezon City government.

Section 22. Applicability of the Corporation Code. – The provisions of the Corporation Code, insofar as these are not inconsistent with the provisions and policies provided in this Act, shall be applicable and suppletory.

Section 23. Separability Clause. – Should any section or provision of this Act be declared by the courts to be unconstitutional, the validity of this Act or any part hereof other than the part so declared to be unconstitutional or invalid shall not be affected. Any portion hereof not affected by such declaration shall remain in full force and effect.

Section 24. Repealing Clause. – All laws, ordinances, executive orders, administrative orders, rules, regulations, decrees.- and other issuances or parts thereof which are inconsistent with the provisions of this Act are hereby revoked, repealed or modified accordingly.

Section 25. Effectivity. – This Act shall take effect fifteen (15) days after its publication in the Official Gazette or in a newspaper of general circulation in the Philippines.

Approved,

This Act which is a consolidation of Senate Bill No. 2161 and House Bill No. 3899 was finally passed by the Senate and the House of Representatives on September 22, 2014 and September 23, 2014, respectively.

Approved:

BENIGNO S. AQUINO III
President of the Philippines

Lapsed into law on NOV 08 2014
Without the signature of the President,
In accordance with Article VI, Section
27 (1) of the Constitution.