Title
Creation of Department of Human Settlements
Law
Presidential Decree No. 1396
Decision Date
Jun 2, 1978
Presidential Decree No. 1396 establishes the Department of Human Settlements in the Philippines to promote community growth and renewal, emphasizing optimal land use, adequate shelter, environmental protection, and collaboration between the public and private sectors. The law also creates the Human Settlements Development Corporation as the Department's corporate arm to develop economically viable and environmentally sound communities.

Q&A (PRESIDENTIAL DECREE NO. 1396)

The main policy is to foster the growth and renewal of communities, both rural and urban, in an integrative manner promoting optimum land use, adequate shelter, environmental protection, use of appropriate technology, and self-reliant communities for the fullest development of man as a civic person and human being.

The Department of Human Settlements was created to carry out the policy of fostering community development and urban renewal.

The Department is headed by a Secretary who also serves ex-officio as Chairman of the governing boards of corporations, commissions, and authorities under the Department's supervision.

The National Capital Region, composed of Metropolitan Manila, is established as critically important in human settlements development, with its administration vested in the Secretary of Human Settlements.

The Department's powers include promulgating standards for land use and environmental management, coordinating regulations on subdivisions and zoning, preparing a national Human Settlements Plan, implementing urban renewal and new town development projects, promulgating enforceable rules, entering into contracts, acquiring properties, maintaining information systems, collecting fees, supervising attached corporations, and other necessary functions.

It is a corporate arm created under the Department to handle urban renewal, new town development in Bagong Lipunan sites and real property management. Its purpose includes developing economically viable and environmentally sound new communities and renewing urban communities primarily in Bagong Lipunan sites.

It can prepare and implement development projects, operate estate projects, provide utility services, acquire and manage property, transfer land rights, construct infrastructure, collect fees, issue bonds, and perform all acts necessary for its corporate purposes.

The Board consists of seven members: the Secretary of Human Settlements as Chairman, Chairman of the Development Bank of the Philippines, Governor of the Central Bank, Secretaries of Local Government and Community Development, Public Works, Transportation and Communications, and Industry.

It has an authorized capital stock of 500 million pesos subscribed and paid by the government with an initial release of 100 million pesos from the Special Activities Fund, and may have additional capitalization through government properties, capitalized surplus, and financial institution contributions.

The Corporation may acquire property needed for Bagong Lipunan sites by purchase or expropriation, but properties acquired by expropriation cannot be sold or have their title disposed of.

Included are the National Housing Authority, National Home Mortgage Finance Corporation, Home Financing Commission, National Housing Corporation, Technology Resource Center, National Environmental Protection Council, National Pollution Control Commission, and the Human Settlements Commission.

Formerly the Human Settlements Commission, it is the regulatory arm of the Department, overseeing enforcement of human settlements laws and regulations.

Personnel are appointed by the Secretary of the Department except those whose appointment is vested by law in the President. Their salaries and compensation are fixed by the Office of Compensation and Position Classification, Budget Commission.

It serves as the centralized administrative and management office to coordinate policies and programs among the corporations and agencies under the Department's supervision.

Fifty million pesos were appropriated from the National Treasury for the Department's operation and regional offices, in addition to transferred appropriations from reorganized agencies.


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