Question & AnswerQ&A (LETTER OF INSTRUCTIONS NO. 1204)
The main objective is to protect the interest of resident families over their respective homelots and afford them the opportunity to own such homelots, resolve the land tenure problem, upgrade communities in landed estates, develop self-reliant communities, and provide sites and services projects for resettlement if necessary.
Owners of landed estates are prohibited from evicting occupant families from their homelots without the concurrence of such families and clearance from the National Housing Authority.
The Ministry of Human Settlements is the lead agency tasked with assisting and supervising local governments in planning and implementing the program.
The NHA extends funding and technical assistance to local governments, negotiates or expropriates land under PD 1533, compiles local government five-year programs into a national program, and manages financial aspects including housing bonds issuance.
Local governments are required to identify, census, and prioritize communities, develop five-year programs, utilize planning staff for implementation, execute upgrading projects, and manage community programs like livelihood and social services.
NHA can acquire land through negotiation or expropriation pursuant to PD 1533 when such land is privately owned but part of the program's targeted communities.
If such lands are not used optimally as determined by the Human Settlements Regulatory Commission, NHA can acquire these at the Provincial Assessor's appraised value or at the foreclosed principal amount without accrued interest if owned by government financial institutions.
Financial assistance is repayable over 25 years in equal quarterly installments from resident collections and other sources, approved by the Ministry of Finance, and guaranteed under Presidential Decree No. 752, with deduction from internal revenue allotments in case of default.
Residents are granted long-term leases for 25 years with an option to purchase after at most five years of continuous occupancy, subject to repayment of subsidies and grants with interest.
Proceeds collected shall be remitted proportionally to the NHA based on financial exposure, with the balance retained by local governments to cover project expenses.
The program mandates owners cannot evict occupant families without their consent and clearance from the National Housing Authority, reinforcing the government's policy of no Filipino being a squatter on land they have stayed on for many years.
Letters of Instructions Nos. 555, 557, and 686 related to the Slum Improvement and Resettlement Program are referenced as applicable and guiding frameworks.
Presidential Decree No. 757 authorizes the NHA to float housing bonds upon presidential approval as a long-term source of funds.
If local governments default over two consecutive quarters, amounts may be deducted from their internal revenue allotments to cover amortization.
The program is instituted and implemented nationwide covering all government offices, agencies, instrumentalities, including local government units for communities in landed estates.