Question & AnswerQ&A (PRESIDENTIAL DECREE NO. 1259)
The purpose of Presidential Decree No. 1259 is to amend paragraphs 1, 2, and 3 of PD No. 1224 to further define the policy on the expropriation of private property for socialized housing upon payment of just compensation.
PD No. 1259 defines 'public use' as including the acquisition by the government of private lands and improvements for socialized housing, which encompasses construction and improvement of dwellings for middle and lower income groups, slum clearance, relocation and resettlement, slum improvement, provision of economic opportunities, and other activities under PD No. 757.
Socialized housing includes construction and improvement of dwelling units for the middle and lower income groups, slum clearance and relocation of squatters, slum improvement involving allocation of homelots and provision of community facilities, provision of economic opportunities like commercial and industrial estates, and other housing-related activities as per PD No. 757.
The National Housing Authority is vested with the power to exercise the right of eminent domain for housing and its related components, as provided in PD No. 757.
Just compensation is determined by choosing the lower value between the declared value of the real property by the owner/administrator or the market value as determined by the city or provincial assessor at the time of filing the expropriation complaint.
Upon the filing of the petition for expropriation and the deposit of the just compensation amount, the government or its authorized agency has immediate possession, control, and disposition of the real property and improvements, even if issues regarding the expropriation are still pending in court.
No, the government takes possession upon filing the petition and depositing the just compensation, regardless of pending court issues.
All acts, parts of acts, decrees, instructions, orders, ordinances, or rules that are inconsistent with PD No. 1259 are repealed, amended, or modified accordingly.
It clarifies and limits the basis for determining just compensation to protect both government and owner’s interests by using either the declared value or market value, whichever is lower, thereby addressing doubts about valuation in expropriation proceedings.
The decree emphasizes that housing is a development process focused not only on providing shelter but also on building a total community in accordance with the human settlements concept.