QuestionsQuestions (LETTER OF INSTRUCTIONS NO. 555)
LOI No. 555 instituted a Nationwide Slum Improvement and Resettlement Program (SIR) as an approach to address housing needs by upgrading sites and services in slum/blighted areas, prioritizing identified growth centers, and directing actions of national agencies and local governments in all urban areas.
Local governments are directed to pinpoint all slums and blighted areas within their jurisdictions.
The NHA must approve the inclusion in the SIR program of all identified blighted areas.
Local governments must establish a staff solely for slum improvement/housing, composed at least of an urban planner, architect, engineer, social scientist, financial analyst, and lawyer; this staff is paid from local government funds.
Local governments must formulate a 3-year, 5-year, and long-term ongoing program, integrate with local development and NHA efforts, and submit the Three-Year Plan to the NHA within 60 days from the constitution of the staff.
The program must isolate each blighted area, with the local government (through its staff) formulating a project plan for the improvement of each isolated area.
The NHA must issue guidelines for formulating plans, provide technical assistance, and approve all project plans; it must also establish regional teams (at least equivalent to one local city government staff per region) paid from its own funds.
DPWTC and the Bureau of Public Works are directed to provide funds for and construct vertical infrastructure for community use (e.g., barangay halls, schools, multi-purpose centers), made available through grants.
It must construct footpaths or catwalks as necessary for circulation and install drainage and sewerage systems as necessary under the project plan, also made available through grants.
Through grants, it must provide funds for and construct major and internal roads in the area and install drainage along these roads to link up and integrate with roads and drainage constructed under DPWTC/Bureau of Public Works via footpaths/catwalks.
Yes. The Local Water Utilities Administration and the National Electrification Administration may make water and electricity available and may charge residents reasonable dues to recover costs.
Local government must acquire the area through expropriation upon NHA approval of the project plan, and then render it free and alienable for the purposes of the program.
If owned by a public entity: local government acquires at appraised value for land and improvements as determined by the Provincial Assessor. If foreclosed by a government financial institution: acquire at the foreclosed principal amount without accrued interests.
Land and improvements are made available to bonafide residents under local guidelines consistent with NHA guidelines through a long-term lease for 25 years, with an option to purchase after 10 years of continued and uninterrupted occupancy.
If exercised, all subsidies and grants determined by the approved project plan are recovered in full from the buyer, plus interest at 12% p.a. compounded annually from the time of project construction.
The Philippine National Bank (assisted by the local government) directly collects from residents and keeps accounts per resident. Amounts are remitted directly to local government creditors proportionate to financial exposure; any balance is remitted to the local government for other project expenses, and purchase proceeds are pooled into a fund exclusively for housing and slum improvement within the locality and for the exclusive use of the local housing staff under NHA guidelines and approval.
Financial assistance is 12% p.a. repayable over 25 years in equal quarterly installments by the local government, approved by the Department of Finance and guaranteed under PD 752. If default occurs for more than two quarters, amounts necessary to cover periodic amortization are deducted from the local government’s Internal Revenue Allotment (IRA).
Relocation and resettlement is pursued only when dwellings are in ill-suited or hazardous areas, needed for public infrastructure or other public interests, or necessary to decongest slum areas being upgraded/improved. NHA approves all such relocation and resettlement.