Creation of DHSUD and housing reform

Policy, purpose, and constitutional anchor

Section 2 directs the State to ensure that underprivileged and homeless citizens have access to an adequate, safe, secure, habitable, sustainable, resilient and affordable home pursuant to Section 9, Article XIII of the Constitution.
Section 2 requires a continuing program of housing and urban development by law and for the common good, in cooperation with the private sector, to make affordable cost, decent housing, and basic services available to underprivileged and homeless citizens in urban centers and resettlement areas.
Section 2 mandates the promotion of adequate employment opportunities for underprivileged and homeless citizens.
Section 2 requires respect for the rights of small property owners in implementation.
Section 2 requires pursuit of a modern, humane, economically-viable, and environmentally-sustainable society through urbanization led by market forces, with affordable housing, sustainable infrastructure and services, and democratic decentralized governance.
Section 2 requires that poor dwellers in urban and rural areas shall not be evicted nor their dwelling demolished, except in accordance with law.
Section 2 requires encouraging on-site development, promoting new settlements, and promoting sustainable urban renewal programs while guaranteeing preservation of agricultural lands necessary for food security.

Definitions expressly established

Section 3 defines Abandoned subdivision or condominium as a project whose development has not been completed according to the approved development plan despite lapse of at least ten (10) years from the target completion date, and it appears the owner/developer has no intention to complete, or despite diligent effort for at least the last five (5) years, the owner/developer cannot be located.
Section 3 defines Comprehensive Land Use Plan (CLUP) as a document formulated by the local government in consultation with stakeholders, defining guidelines for allocation, utilization, development, and management of all lands within a territory/jurisdiction based on land qualities and supportive economic, demographic, socio-cultural, and environmental objectives.
Section 3 defines Housing as a multi-dimensional concept covering the process of residing and the objects of dwelling (including location relative to access to livelihood, tenure arrangements, cost, and physical structure) and the environment, and it also defines housing as both a physical structure and social structure across spatial scales and as a sector of the economy and a major land-use category in urban and rural areas.
Section 3 defines Human Settlements as physical components of shelter and infrastructure, and services supported by those physical elements (education, health, culture, welfare, recreation, and nutrition).
Section 3 defines Informal Settler Families (ISFs) as households living on a lot (private or public) without property owner consent; or without legal claim over the property; or living in danger areas such as esteros, railroad tracks, garbage dumps, riverbanks, shorelines, and waterways.
Section 3 defines People’s plan as a beneficiary-association plan containing a site development plan conforming to the CLUP of the local government unit where the project site is proposed, including community health, sanitation, and security plans, and non-physical components such as self-help housing cooperative, livelihood, self-help development, capability building, and an allocation system of socialized housing units that promote and protect the welfare of the elderly, persons with disability, and children.
Section 3 defines Public housing as housing owned and/or managed by the government for providing housing to underserved families.
Section 3 defines Urban Development as occupation and use of land or space for residential, industrial, commercial, and similar activities, including building or rebuilding more or less permanent structures on land often withdrawn or converted from original use, resulting in a built environment.
Section 3 defines Urban Development Planning as planning diverse elements of urbanizing and urbanized areas, including physical infrastructure, environment, housing, transportation, and management of land use and urban growth.

Creation of DHSUD; consolidation mandate

Section 4 creates the Department of Human Settlements and Urban Development (DHSUD), referred to as the Department, through consolidation of the Housing and Urban Development Coordinating Council (HUDCC) and the Housing and Land Use Regulatory Board (HLURB).
Section 4 states that DHSUD is the primary national government entity responsible for management of housing, human settlement, and urban development.
Section 4 makes DHSUD the sole and main planning and policy-making, regulatory, program coordination, and performance monitoring entity for all housing, human settlement, and urban development concerns, focusing on access to and affordability of basic human needs.
Section 4 requires DHSUD to develop and adopt a national strategy to address immediate provision of adequate and affordable housing to all Filipinos.
Section 4 requires alignment of DHSUD’s policies, programs, and projects with those of all attached agencies to achieve the objective of providing adequate and affordable housing.
Section 5 vests DHSUD with detailed powers and functions covering policy development; environmental/land use/urban planning; housing and real estate regulation; homeowners associations and community development; and general authorities.

DHSUD powers and functions

Section 5( I ) requires DHSUD to formulate national housing and urban development policies, strategies, and standards consistent with the Philippine Development Plan in coordination with national and local stakeholders, LGUs, and other government agencies.
Section 5( I ) requires DHSUD to formulate housing finance and production policies and recommend/facilitate mechanisms promoting establishment of self-sustaining housing finance and delivery systems in coordination with relevant agencies.
Section 5( I ) requires DHSUD to formulate housing policies and programs (including public housing) in coordination with attached agencies for homeless and underprivileged families.
Section 5( I ) requires DHSUD to conduct continuing and comprehensive studies and research necessary for housing and urban development, including a resilient housing and human settlements framework for post-disaster housing and resiliency planning and protection of vulnerable communities from adverse climate change and disaster effects.
Section 5( I ) requires DHSUD, in oversight, to develop and establish a sector performance monitoring and assessment mechanism for accurate and independent reporting on performance of national agencies and LGUs involved in housing and urban development.
Section 5( II )(a) requires DHSUD to develop and maintain a shelter and urban development management, standards, and monitoring information system including inventory of idle lands, CLUPs, inventory of housing stocks, and list of beneficiaries.
Section 5( II )(a) preserves all existing CLUPs duly approved and being implemented by LGUs in full force and effect for the duration stated therein, while allowing LGUs to improve, amend, and enhance existing CLUPs in accordance with Department standards upon enactment.
Section 5( II )(b) requires DHSUD to provide technical assistance to provinces, cities, and municipalities for capability to undertake housing and urban development management, including creating a Local Housing Board (LHB) or similar entity, formulating CLUPs and local shelter plans (LSPs), and strengthening local compliance with housing and urban development laws and standards.
Section 5( II )(c) requires DHSUD to assist LGUs in utilization of the socialized housing tax under Section 43 of Republic Act No. 7279 and other housing funds exclusively used for new settlement projects and other housing, urban development, and renewal projects.
Section 5( II )(d) authorizes DHSUD to own and administer government-owned lands (national government or subdivisions, instrumentalities, agencies, including GOCCs and subsidiaries) not used for the reserved purpose for at least ten (10) years and identified by DHSUD as suitable for urban development, particularly housing purposes, excluding lands held in trust by GOCCs for and on behalf of members.
Section 5( II )(e) requires DHSUD to formulate and prescribe land use planning and zoning standards and regulations guiding cities and municipalities in CLUP formulation.
Section 5( II )(f) requires DHSUD to develop and implement a comprehensive plan for establishment of government centers in the country.

Regulation and HOA supervision

Section 5( III )(a) requires DHSUD to develop mechanisms and implement programs (with attached and concerned agencies) to initiate and promote estate/new towns/new settlements, urban renewal programs, and prototypes of housing and urban development interventions, including the people’s plan approach, encouraging participation of local government partnerships with civil society organizations, nongovernment organizations, private groups, and communities.
Section 5( III )(b) requires DHSUD to manage and oversee development of proclaimed socialized and economic housing sites and use those land assets as a resource mobilization strategy to raise alternative resources for new housing projects and efficient financing programs, either by itself or through attached agencies.
Section 5( III )(c) requires DHSUD to implement a single regulatory system governing activities relative to planning, production, marketing, and management of housing and urban development projects.
Section 5( III )(d) requires DHSUD, in coordination with appropriate agencies, to take over unfinished, incomplete, or abandoned licensed real estate development projects under Presidential Decree No. 957, under guidelines formulated by competent authorities, and DHSUD regulates the use of road and street systems of projects taken over under this provision.
Section 5( IV )(a) requires DHSUD to register, regulate, and supervise HOAs in subdivision projects and government housing projects.
Section 5( IV )(b) requires DHSUD to provide technical assistance encouraging housing cooperatives and civil society organizations to serve as implementing agencies for housing and urban development programs.
Section 5( IV )(c) requires DHSUD to promote partnerships between government and private sector for decent housing, suitable living environment, and expanded economic opportunities for the homeless and underprivileged.
Section 5( IV )(d) requires DHSUD to effect and oversee a single regulatory system governing planning, development, production, marketing, and management of housing and urban development projects without encroaching on jurisdiction of other agencies.

Governance structure of DHSUD

Section 6 provides that the Department is composed of the Office of the Secretary and the various bureaus, services, and regional offices, with the Office of the Secretary housing the Office of the Department Secretary, Offices of Undersecretaries, Offices of Assistant Secretaries, and immediate support staff.
Section 7 assigns the Secretary functions including advising the President; establishing policies and standards for efficient and effective operation; promulgating rules and issuances; exercising control and supervision with disciplinary powers over Department officers/employees and attached agencies’ officers/employees (including investigation); designating and appointing officers/employees excluding Undersecretaries, Assistant Secretaries, and Regional/Assistant Regional Directors; coordinating with other agencies for effective implementation; formulating rules and regulations required to implement the Act; and performing other functions by law or assigned by the President.
Section 7 makes the Secretary a voting member of the NEDA Board, the governing boards of the Climate Change Commission (CCC), the National Disaster Risk Reduction and Management Council (NDRRMC), and the National Land Use Committee (NLUC).
Section 8 provides for three (3) Undersecretaries and three (3) Assistant Secretaries appointed by the President upon recommendation of the Secretary, with at least one (1) Undersecretary and one (1) Assistant Secretary as career officers.
Section 8 directs that the Undersecretaries and Assistant Secretaries have powers and functions provided for in Chapter 2, Book IV of the Administrative Code of 1987, and authorizes the Secretary to delineate and assign other functional areas or responsibilities.
Section 9 requires that no person be appointed Secretary, Undersecretary, or Assistant Secretary unless a Philippine citizen and resident, of good moral character, and of proven integrity, competence, and expertise in housing, urban planning and development.
Section 10 requires the Department to establish, operate, and maintain bureaus including Environmental, Land Use and Urban Planning and Development; Housing and Real Estate Development Regulation; and Homeowners Associations and Community Development, with regional offices may be established in administrative regions as necessary.
Section 11 requires the Secretary, subject to DBM approval, to determine organization and staffing patterns, appoint officers and employees under civil service law, and strictly conform remuneration structures to Republic Act No. 6758.

Human Settlements Adjudication Commission (HSAC)

Section 12 reconstitutes HLURB into the Human Settlements Adjudication Commission (HSAC), transferring HLURB’s adjudicatory function to the Commission, attached to the Department for policy, planning, and program coordination only.
Section 13(a)(1) provides that HSAC consists of five (5) Commissioners, appointed by the President; the President chooses an Executive Commissioner from among them who administers and supervises operations and is assisted by an Executive Clerk.
Section 13(a)(2) provides for as many Regional Adjudication Branches as there are Department regional offices, with the President appointing Regional Adjudicators upon recommendation of the Secretary.
Section 13(b) allows the Commission, subject to DBM approval, to determine organizational structures and create units and appoint officers/employees under civil service laws, with remuneration structures strictly conforming to Republic Act No. 6758.

Commissioner qualifications and HSAC adjudication

Section 14(a) requires each Commissioner to be a natural-born citizen, of good moral character, engaged in practice of law, and a Philippine Bar member in good standing for at least ten (10) years prior to appointment; nominees must have experience in urban development planning, sustainable development, climate change adaptation, disaster risk reduction and/or real estate development.
Section 14(a) provides that each Commissioner holds office for six (6) years, with filling of unexpired terms upon death, permanent disability, removal, resignation, or incapacity, while respecting the term of incumbent Commissioners.
Section 14(b) requires each Regional Adjudicator to be a citizen, of good moral character, practicing law and Bar member for at least seven (7) years, with at least three (3) years realty and/or land use and development cases experience; existing HLURB Arbiters are deemed qualified.
Section 14(b) provides that Regional Adjudicators hold office on good behavior until incapacitated or reaching retirement age under law/rules, whichever comes earlier.
Section 15(a) grants the Commission exclusive appellate jurisdiction over all cases decided by Regional Adjudicators and appeals from decisions of local and regional planning and zoning bodies.
Section 15(b) provides that Commission decisions become final and executory after 15 calendar days from receipt by the parties.
Section 16 gives Regional Adjudicators original and exclusive jurisdiction over specified disputes and actions, including: unsound real estate business practices causing prejudice or committed in bad faith/disregard of buyers’ rights; refund and other claims by subdivision/condominium buyers against project owner/developer/dealer/broker/salesman (with banks/financing institutions impleaded when the cause arises under Section 23 of Presidential Decree No. 957 and payment is through a housing loan); specific performance and contractual/statutory obligations in sale and development; disputes over open spaces or common areas including eviction of informal settlers in accordance with law and regulations; declaration of abandonment for purposes of Section 35 of Presidential Decree No. 957; easement disputes within or among subdivision projects; and annulment of mortgages executed in violation of Section 18 of Presidential Decree No. 957.
Section 16(b) gives Regional Adjudicators original and exclusive jurisdiction over HOA controversies, including registration and regulation disputes; intra-association disputes between and among HOA members and HOAs; inter-association disputes between two (2) or more HOAs and between HOAs and federations/umbrella organizations regarding rights, duties, and functions; and disputes between an HOA and the State insofar as it concerns franchise/right to exist and matters intrinsically connected to regulation and internal affairs of HOAs.
Section 16(c) gives Regional Adjudicators original and exclusive jurisdiction over disputes involving implementation of Section 18 of Republic Act No. 7279, as amended, and its implementing rules and regulations.
Section 16(d) gives Regional Adjudicators original and exclusive jurisdiction over disputes or controversies involving laws and regulations implemented by the Department except those within jurisdiction of other judicial or quasi-judicial body.

HSAC powers, contempt, injunctive relief

Section 17(a) authorizes the Commission to promulgate rules governing hearing and disposition of cases before it and its adjudicators and rules necessary to carry out its functions.
Section 17(b) authorizes the Commission to administer oaths; summon parties; issue subpoenas requiring witness attendance and testimony, or production of books, papers, contracts, records, statements of accounts, agreements, and other material for just determination.
Section 17(c) authorizes contempt power: any person committing misbehavior that obstructs or interrupts proceedings, including disrespect, offensive acts, refusal to be sworn or answer, or refusal to subscribe affidavit or deposition when lawfully required, may be summarily adjudged in direct contempt with penalties:
- For contempt against the Commission or any member: fine not exceeding PHP 5,000.00 or imprisonment not exceeding five (5) days, or both.
- For contempt against an Adjudicator: fine not exceeding PHP 1,000.00 or imprisonment not exceeding one (1) day, or both.
Section 17(c) provides that a person adjudged in direct contempt by an adjudicator may appeal to the Commission, and execution is suspended pending appeal upon filing of a bond conditioned on compliance if the appeal is decided against the person.
Section 17(c) makes judgments on direct contempt immediately executory and unappealable.
Section 17(c) requires indirect contempt to be dealt with according to Rule 71 of the Revised Rules of Court (ROC).
Section 17(d) authorizes the Commission, after due notice and hearing, to enjoin or restrain actual or threatened prohibited or unlawful acts or require performance of a particular act in disputes within its jurisdiction to prevent grave or irreparable damage or to avoid ineffectual decisions.
Section 17(d) prohibits temporary or permanent injunction except after a finding of fact that specified conditions are present: threatened/prohibited acts will be committed and continued unless restrained; substantial and irreparable injury will follow; greater injury will be inflicted on complainant by denial than on defendants by granting; complainant has no adequate remedy at law; and public officers charged with duty to protect complainant’s property are unable or unwilling to furnish adequate protection.
Section 17(d) limits injunction/temporary restraining orders to threats/prohibited acts only against the person(s), association(s), or organization(s) making the threat or committing the unlawful act or actually authorizing or ratifying it after actual knowledge thereof.
Section 17(e) authorizes other implied, necessary, or incidental powers to carry out express powers.

HSAC appeals and enforcement

Section 18 states that decisions, awards, or orders of Regional Adjudicators are final and executory unless appealed to the Commission within 15 calendar days from receipt.
Section 18 allows the Commission decision upon a disputed matter to be brought to the Court of Appeals in accordance with Rule 43 of the Rules of Court.
Section 19 authorizes the Commission or any Regional Adjudicator to issue a writ of execution motu proprio or on motion within five (5) years from the date an order/award/judgment becomes final and executory.
Section 19 authorizes enforcement by independent action filed with the Regional Adjudication Branch that issued the order, award, or decision.
Section 19 requires the Commission to appoint a Sheriff or sheriffs to serve and execute writs, summonses, orders, and other processes.
Section 19 authorizes the Commission to designate special sheriffs and take measures under existing laws to ensure compliance.

Criminal prosecution

Section 20 provides that criminal prosecution for violation of housing laws and regulations must be instituted before criminal courts with appropriate jurisdiction.

National Human Settlements Board

Section 21 creates the National Human Settlements Board as a single Board of Trustees to exercise the attached agencies’ powers and functions regarding policy and program development.
Section 21 places the Secretary of DHSUD as Chairperson and requires the following members:
- Director General of NEDA or designated Deputy Secretary General;
- Secretary of Finance or designated Undersecretary;
- Secretary of Budget and Management or designated Undersecretary;
- Secretary of Department of Public Works and Highways or designated Undersecretary;
- Secretary of the Interior and Local Government or designated Undersecretary; and
- Head of each attached agency of DHSUD.
Section 21 provides that HDMF corporate powers and functions continue to be exercised by its own Board of Trustees under Republic Act No. 9679.

Attached corporations and restructuring guidance

Section 22 provides that DHSUD exercises administrative supervision over NHA, NHMFC, HDMF, and SHFC, and they remain attached for policy and program coordination, monitoring, and evaluation.
Section 22 mandates that attached corporations continue functioning under existing laws and their charters subject to Board policy directions.
Section 22 requires that appointments of Board of Directors or Trustees of attached GOCCs follow Republic Act No. 10149 (GOCC Governance Act of 2011).
Section 22 requires each head of the attached corporation to enter into an annual performance contract with the Secretary consistent with national targets and overall administration of the corporation.
Section 22 requires, within two (2) years from effectivity, the Secretary in coordination with the Governance Commission for GOCCs (GCG) to recommend to the President restructuring guided by objectives including eliminating overlaps in programs serving the same beneficiaries; identifying which functions belong to regular government agencies versus commercial functions requiring corporate structure; clarifying roles along the housing value chain (production, primary financing, secondary market development, insurance/guarantee); and strengthening integration of functions and services to leverage limited public resources and maximize value of housing products and services.
Section 22 requires any reorganization, merger, streamlining, abolition, or privatization to be formulated and implemented in coordination with the GCG and in consultation with the GOCC concerned and relevant provisions of Republic Act No. 10149.

Housing One-Stop Processing Centers (HOPCs)

Section 23 requires DHSUD to establish Housing One-Stop Processing Centers (HOPCs) in the regions.
Section 23 mandates HOPCs to centralize processing and issuance of all required housing-related permits, clearances, and licenses in accordance with Executive Order No. 45, series of 2001.
Section 23 provides that DHSUD and NEDA jointly determine ceilings for socialized, low cost/economic, and middle-income housing for purposes of HOPCs.
Section 23 allows ceilings to be reviewed or revised at any time but not more than once every two (2) years, to conform to prevailing economic conditions.
Section 23 requires all agencies involved in issuing the permits/clearances/licenses to be represented in the HOPC and to assign sufficiently authorized regional center personnel to process and issue them.

Identifying lands for housing and development

Section 24 requires DHSUD, DENR, DAR, DA, DILG, and LRA to jointly identify government lands suitable for housing and rural development within one hundred eighty (180) days from effectivity.
Section 24 prioritizes government lands idle for more than ten (10) years, excluding lands owned by GOCCs and government financial institutions engaged in shelter financing as part of fiduciary obligation to members, and excluding lands taken possession of in ordinary conduct of business.
Section 24 excludes from coverage lands exempted from conversion under existing laws.
Section 24 requires transfer of national lands identified under this section to or administration by DHSUD, subject to approval of the President.

Transition, IRR, and appropriations

Section 25 provides consolidation and reconstitution: HUDCC and HLURB are consolidated as DHSUD and HSAC, respectively.
Section 25 transfers HLURB functions to DHSUD and HSAC as follows: land use planning and monitoring function (including penalties for noncompliance to ensure LGU following CLUPs and zoning ordinances) to DHSUD; regulatory function over subdivisions/condominiums/similar real estate developments to DHSUD; registration/regulation/supervision of HOAs to DHSUD; adjudicatory mandate to HSAC.
Section 25 subrogates DHSUD to all rights and assumes all liabilities of HUDCC and HLURB, except liabilities that may later be transferred/absorbed by HSAC.
Section 26 requires completion of transfers of functions, assets, funds, personnel, equipment, properties, transactions, formulation/implementation of internal organic structures, staffing patterns, operations systems, and revised budgets within six (6) months from effectivity, with holdover of existing personnel until new appointments are issued; pending HLURB applications and cases upon effectivity and filed during transition continue to be acted upon by incumbents until rules and regulations under the Act are in force.
Section 27 requires dispositive actions within six (6) months from effectivity: transfer of HUDCC and HLURB assets/equipment/funds/records/transactions to DHSUD and HSAC; and DHSUD/HSAC creation of additional positions and augmentation of budget appropriations as necessary.
Section 28 grants existing employees of HUDCC and HLURB security of tenure and provides absorption by DHSUD or HSAC according to staffing patterns and selection process under Republic Act No. 6656.
Section 28 requires employees opting separation to receive separation benefits in accordance with existing laws within one (1) month from separation/phase-out, and qualified employees may retire and receive benefits under existing retirement laws.
Section 29 requires the HUDCC, HLURB, DBM, and Civil Service Commission, in coordination with NHA, SHFC, NHMFC, HDMF, and other concerned agencies, to prepare and issue Implementing Rules and Regulations within ninety (90) days from effectivity.
Section 30 authorizes the HUDCC Chairperson to implement the Act and undertake necessary organizational changes within the six (6)-month