Establishment of the National Housing Authority (NHA)
- Government corporation created to implement the housing program.
- Principal office in Greater Manila; may establish branches nationwide.
- Operates under the Office of the President for fifty years, extendable.
Objectives of the National Housing Authority
- Provide and maintain adequate housing for maximum possible citizens.
- Undertake development, resettlement and housing-related activities.
- Promote private sector participation in housing ventures and financing.
Capitalization and Funding
- Authorized capital of 500 million pesos fully subscribed by the government.
- Initial 50 million pesos appropriated at approval; further 50 million annually for nine years.
- Excludes assets transferred from dissolved agencies for capital calculation.
Dissolution and Integration of Existing Housing Agencies
- Dissolves various existing housing and resettlement agencies.
- Transfers their powers, assets, liabilities, records to NHA.
- Conducts inventory and evaluation by Commission on Audit.
- Personnel absorption based on merit under a progressive merit system.
- Financial liabilities assumed by the National Government via bonds or appropriations.
Powers and Functions of the NHA
- Implement housing program and enforce housing policies and standards.
- Acquire land through eminent domain or purchase for housing purposes.
- Undertake housing projects including joint ventures.
- Issue bonds and loans; manage government and international housing commitments.
- Promote technical assistance and regulate real estate trade for buyer protection.
- Regulate owner-lessee relationships in residential properties.
- Exercise all acts necessary to fulfill its mandate; promulgate rules with Presidential approval.
Governance by the Board of Directors
- Board composed of key cabinet members and the General Manager of NHA.
- President appoints Chairman; Board may have alternates.
- Quorum requires four members; decisions by majority concurrence.
- Board meets regularly monthly and as needed.
Authority and Duties of the Board
- Formulate implementing rules and regulations.
- Approve budgets within limits; organizational structure and staffing.
- Approve contracts essential for statutory objectives.
- Submit required reports to the President.
Duties of the General Manager
- Chief executive officer, managing operations and internal affairs.
- Prepares Board meeting agendas and policy recommendations.
- Implements Board-approved policies.
- Responsible for hiring, salary setting subject to Board approval.
- Represents Authority in governmental and private interactions.
Organizational Structure and Personnel
- Board determines organizational design.
- General Manager appoints subordinate officers with Board approval.
- Professional personnel exempt from Civil Service examination and standard wage rules.
- Allowed to grant allowances and honoraria to certain staff and consultants.
Policy Coordination with Attached Agencies
- National Housing Corporation and Home Financing Commission attached to NHA for coordination.
Project Management
- NHA responsible for management or disposition of completed housing projects unless otherwise decided.
Issuance of Bonds
- Authorized to issue bonds subject to Finance Secretary and Central Bank approval.
- Restrictions on amount and timing ensure market stability and financial prudence.
- Bonds and securities are tax-exempt and protected from seizure.
- Authority permitted to use lottery scheme to promote bond sales.
- Establishes a sinking fund managed by Central Bank for bond redemption.
Government Guarantee
- Republic of the Philippines guarantees principal and interest of issued bonds.
- Government succeeds bondholders’ rights if payment default occurs.
Participation of SSS and GSIS
- Social Security System and Government Service Insurance System to absorb Authority-issued bonds.
- Both agencies restricted to direct individual housing lending and cease mass/group housing operations.
Employee Separation Benefits
- Personnel from dissolved agencies not absorbed receive payment for accumulated leaves and possible gratuities.
- 10 million pesos appropriated for these payments.
Audit and Oversight
- Commission on Audit recommends and staff an Auditor for the Authority.
- Auditor salaries set and paid by NHA.
Rulemaking and Reporting
- Board promulgates and amends rules necessary for implementation.
- Annual and periodic reports submitted to the President detailing programs and finances.
Application of Corporation Law
- Relevant provisions of Corporation Law apply to the Authority unless inconsistent with this Decree.
Repealing and Separability Clauses
- Any conflicting laws or rules shall be repealed or amended.
- Invalidity of any provision does not affect the rest of the Decree.
Effectivity
- Decree takes effect immediately upon issuance.