Title
HLURB Schedule of Fines Amendment
Law
Hlurb Administrative Order No. 11, S. 2000
Decision Date
Dec 4, 2000
The Housing and Land Use Regulatory Board has revised the schedule of fines for various violations related to land use and development permits, establishing specific penalties based on the severity and nature of the infractions to ensure compliance with regulatory standards.

Questions (HLURB ADMINISTRATIVE ORDER NO. 11, S. 2000)

The Resolution (R-675, s. 2000) states it is adopted pursuant to Art. IV, Sec. 5.0 and 5.Q.2 of Executive Order (EO) No. 648, s. 1981; Art. V, Sec. 11 of EO 648; and Sec. 38 of Presidential Decree (PD) No. 957.

It shall take effect immediately after publication in the Malaya issues of 08 and 15 September 2000, in accordance with the provisions of law; additionally, the Rules and Regulations provide that effectivity is after publication for two consecutive weeks in two newspapers of general circulation.

Failure to secure locational clearance prior to the start of the project is a punishable violation. The fine ranges depend on land use conformity (Conforming vs Non-Conforming) and project type/intensity (e.g., Industrial, Agro-Industrial, Agricultural, Commercial, Institutional, Residential, Special Project).

For certain violations (notably failure to secure locational clearance), the schedule provides separate fine ranges for Conforming and Non-Conforming projects, with Non-Conforming generally carrying higher penalties in maximum ranges.

For ULRZ/APD violations: selling without sales clearance has fine ranges of 200–500 (minimum), 501–700 (medium), and 701–1000 (maximum). The schedule lists these as range-based amounts rather than Conforming/Non-Conforming categories for this item.

For ULRZ/APD violations: mortgaging without mortgage clearance is fined 100–250 (minimum), 251–350 (medium), and 351–500 (maximum).

Failure to secure development permit: 1000–3000 (minimum), 3001–6000 (medium), and 6001–10000 (maximum).

Failure to secure mortgage clearance under REM laws is fined 1000–2500 (minimum), 2501–4000 (medium), and 4001–5500 (maximum).

Category D: it authorizes imposing an administrative fine not exceeding P20,000.00 for any violation of HLURB’s charter and its rules and regulations.

(1) Disorderly/disrespectful conduct that obstructs or disturbs the Board or its hearing/inquiry; and (2) failure or refusal to comply with lawful orders/decisions/writs/processes of the Board without justifiable reason.

In the first situation, the Board may summarily impose a fine not exceeding P2,000.00 and order confinement not exceeding the duration of the hearing/proceeding. In the second situation, it may impose a fine of P500.00 for each day the violation/failure continues and may order confinement until compliance.

The above fine shall be imposed on the assets of the entity, and the President, managing partner, or chief executive officer shall be ordered confined.

HLURB may prescribe and impose fines not exceeding ten thousand pesos (P10,000) for violations of PD 957 provisions or any rule/regulation thereunder. Fines are payable to the Board and enforceable through writs/execution under the Rules of Court.

The schedule lists grounds such as: failure to secure required HLURB clearances/permits/licenses/approval; failure to comply with conditions in clearances/permits/licenses/approval; failure to complete development/non-compliance/alteration without approval; selling without license or advertising without approval; misrepresentation in application/monitoring; and failure to obey the Board’s order after monitoring.

The Board considers gravity/impact of violation; good or bad faith; possibility of damage/prejudice to residents/neighbors/community; continued existence implications on law/regulatory objectives; and history/frequency of similar violations.

In the absence of any mitigating or aggravating circumstances, the Medium Range of Penalties shall apply.

Examples include: proponent obtained zoning/locational clearance and other permits from local officials with apparent authority prior to project establishment and then voluntarily applied to HLURB; project undertaken by other government agencies/corporations; project in municipalities without zoning ordinances with other permits; special family/tenant-related exemptions for ULRZ/APD under certain conditions; force majeure/uncontrollable causes for non-completion; and lack of foreknowledge/ignorance of law where specific conditions are met.

Proponents/owners/developers with existing projects who secure required clearance/permits/licenses/approval within six months from effectivity or rectify violations are relieved of pecuniary liability before the Board. If secured within the next six months, penalties are within the next two ranges lower. Projects established within the next six months after adoption may get exemption/reduction if requirements are secured within six months; projects established within the next year may get exemption/reduction if secured within one year.


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