Question & AnswerQ&A (Republic Act No. 7279)
Republic Act No. 7279 is known as the "Urban Development and Housing Act of 1992."
The primary policy is to undertake a comprehensive and continuing Urban Development and Housing Program to uplift the conditions of underprivileged and homeless citizens in urban and resettlement areas by providing decent housing at affordable costs, basic services, and employment opportunities.
Underprivileged and homeless citizens are individuals or families residing in urban and urbanizable areas whose income falls within the poverty threshold defined by the National Economic and Development Authority and who do not own housing facilities, including those living in makeshift dwelling units without security of tenure.
Affordable cost refers to the most reasonable price of land and shelter based on the needs and financial capability of program beneficiaries and appropriate financing schemes.
Exempt lands include those under the Comprehensive Agrarian Reform Law (RA No. 6657), lands used for national defense and security, lands reserved for government offices not used for 10 years, ecological reserves, and lands used for religious, charitable, educational, cultural, historical, health centers, cemeteries, except when such use has ceased.
The order of priority is: Government-owned lands, alienable lands of public domain, unregistered or abandoned and idle lands, lands within declared areas for priority development, BLISS sites not yet acquired, and lastly, privately-owned lands.
Modes include community mortgage, land swapping, land assembly or consolidation, land banking, donation to government, joint-venture agreements, negotiated purchase, and expropriation as a last resort.
The transaction is null and void; the beneficiary loses rights to the land, forfeits total amortization paid, and is barred from benefits under the Act for ten (10) years from the violation date.
Professional squatters are those who illegally occupy land despite sufficient income for legitimate housing, including those who sold or transferred awarded housing to settle illegally. They face 6 years imprisonment, a fine between ₱60,000 to ₱100,000, or both at court discretion.
The CMP is a mortgage financing program assisting legally organized associations of underprivileged and homeless citizens to purchase and develop land on a community ownership basis, helping residents of blighted areas to own and improve their neighborhoods affordably.
Incentives include reduction and simplification of accreditation requirements, creation of one-stop offices for permits, simplified financing, and exemptions from project-related income taxes, capital gains taxes on raw lands, VAT for contractors, transfer taxes, and donor's tax on donated lands for socialized housing.
Mandatory conditions include 30 days' prior notice, adequate consultations, presence of local officials, identification of demolition participants, execution during office hours and good weather, limited heavy equipment use, proper police uniforms and procedures, and adequate relocation assistance.
The local government units are primarily responsible for implementation, coordinating with the Housing and Urban Development Coordinating Council, national housing agencies, the Presidential Commission for the Urban Poor, and private and NGO sectors.
Funding sources include at least 50% of the Public Estates Authority annual net income, proceeds from ill-gotten wealth disposition, loans and donations, bond floatation, proceeds from social housing and idle lands tax, sale of alienable public lands, and domestic and foreign investments or financing schemes.
Local government units are authorized to impose an additional 0.5% tax on the assessed value of all lands in urban areas exceeding ₱50,000 to raise funds for socialized housing programs.