Title
Creation of Tondo Foreshore Development Authority
Law
Presidential Decree No. 570
Decision Date
Oct 30, 1974
Presidential Decree No. 570 establishes the Tondo Foreshore Development Authority (TFDA) in the Philippines to address slum and squatter problems, promote comprehensive development, and provide powers and functions for urban renewal and housing initiatives.
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Objectives and Purposes

  • To develop harmonious, integrated, and healthy living communities in Tondo Foreshore and its resettlement site.
  • To promote physical and socio-economic amelioration of residents and national development.
  • To encourage adoption of integrated community development approaches by other organizations.

Powers and Functions

  • Implementation of comprehensive urban renewal programs and enforcement of environmental standards.
  • Prescribing guidelines for reservation, conservation, and utilization of public lands.
  • Construction, ownership, lease, operation, and maintenance of infrastructure, housing, and commercial complexes.
  • Regulation and supervision of housing, commercial, industrial, and other enterprises.
  • Development through self or joint ventures in all phases of Tondo Foreshore and resettlement development.
  • Acquisition, ownership, disposition, and encumbrance of property and rights.
  • Investment of funds and acceptance of grants, donations, and assistance.
  • Establishment of subsidiaries and branch offices.
  • Coordination and implementation of social and economic development projects.
  • Leasing and sale of properties with authority to fix and collect fees and charges.
  • Legal powers to sue and be sued, adopt by-laws and a seal.
  • Borrowing funds secured by guarantees or mortgages to finance programs.
  • Entering contracts necessary to fulfill its objectives.

Composition of the Board of Directors

  • Board composed of six ex-officio members: Executive Secretary, NEDA Director General, Secretary of Public Works and Communications, Secretary of Industry, GSIS General Manager, DBP Chairman, and SSS Administrator.
  • President appoints the Chairman from the Board.
  • Alternates serve in absence of regular members.
  • Board members receive monthly allowance and meeting per diems with specified limits.

Functions and Duties of the Board

  • Formulation and adoption of urban development policies consistent with national plans.
  • Promulgation of rules and regulations through a Code of By-Laws.
  • Establishment of necessary Committees.
  • Submission and publication of annual reports to the President.

Authority to Issue Bonds

  • Board may declare necessity to incur indebtedness or issue bonds by resolution approved by majority and President's consent.

Establishment of a Sinking Fund

  • Creation of a sinking fund to accumulate sufficient resources for bond redemption at maturity.
  • Fund managed and invested by the Authority's treasurer as directed by the Board.

Government Guarantee for Bonds

  • Republic of the Philippines guarantees principal and interest payment of bonds and other obligations.
  • Secretary of Finance shall pay unpaid amounts from National Treasury if Authority defaults.
  • Government assumes rights of bondholders to the extent of payments made.

Appropriations

  • Initial appropriation of Thirty Million Pesos for fiscal year 1975 from National Treasury.
  • Subsequent funding included in Annual Appropriations Act.

Eminent Domain Powers

  • Authority empowered to acquire properties by purchase, negotiation, or condemnation.
  • Condemnation proceedings maintained in Authority's name following legal standards.

Auditor Appointment and Salaries

  • Commission on Audit Chairman appoints the Authority's auditor and staff.
  • Salaries fixed by Commission on Audit with Board advice, paid by the Authority.

Exemption from Civil Service and Wage Classification Laws

  • Authority's officers and employees exempt from Civil Service Law and Wage and Position Classification rules.

Supervision and Coordination

  • Authority supervised by the Office of the President for policy and coordination purposes.

Tax Exemptions

  • Exemption from all forms of government taxation, duties, and fees.
  • Donations and financial aids to Authority tax-exempt and deductible for donors.

Transitory Provisions

  • Transfer of assets, rights, obligations, and liabilities of the Tondo Foreshore Urban Renewal Project to the Authority.

Repealing Clause

  • Repeal or modification of inconsistent laws, orders, rules, and regulations.

Separability Clause

  • Invalidity of any provision does not affect the remainder of the Decree.

Effectivity Clause

  • Immediate effectivity upon enactment.

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