Law Summary
Definition of Key Terms
- Abandoned subdivision or condominium: Project incomplete after 10 years; developer inactive or unreachable for 5 years.
- Comprehensive Land Use Plan (CLUP): Guidelines by local government on land allocation and management.
- Housing: Multi-dimensional concept including physical structures, location, tenure, costs, environment, and social structure.
- Human Settlements: Physical shelter and infrastructure plus community services like education and health.
- Informal Settler Families (ISFs): Households occupying land without consent or legal claim, including risky areas.
- People's Plan: Beneficiary association's site development plan aligned with CLUP including community and non-physical development.
- Public Housing: Housing owned/managed by government for underserved families.
- Urban Development: Land use for residential, industrial, commercial functions leading to built environment creation.
- Urban Development Planning: Planning of infrastructure, environment, housing, transportation, land use, and urban growth.
Creation and Mandate of the Department
- The Department of Human Settlements and Urban Development (Department) is created by consolidating HUDCC and HLURB.
- It serves as the primary national agency for housing, human settlement and urban development management.
- Functions include planning, policy-making, regulatory, program coordination, and performance monitoring.
- Focus is on affordable access to basic human needs and development of a national housing strategy.
Powers and Functions of the Department
Policy Development, Coordination, Monitoring and Evaluation:
- Formulate and coordinate national housing and urban development policies.
- Develop housing finance policies and promote self-sustaining systems.
- Formulate public housing programs for homeless and underprivileged.
- Conduct research and studies on housing and urban development.
- Establish resilient housing frameworks addressing climate change and disasters.
- Monitor performance of government agencies and LGUs involved.
Environmental, Land Use and Urban Planning:
- Maintain urban development data systems including idle lands, CLUPs, housing stock, beneficiaries.
- Provide technical assistance to LGUs for planning and compliance.
- Assist LGUs in utilizing socialized housing tax and other housing funds.
- Own and administer government lands idle for 10+ years suitable for housing and urban development.
- Prescribe land use planning and zoning standards.
- Develop government center comprehensive plans.
Housing and Real Estate Development Regulation:
- Promote estate and new town development, urban renewal, and people-oriented planning.
- Manage development of socialized and economic housing sites.
- Implement single regulatory system for housing and urban development projects.
- Take over abandoned real estate projects and regulate connected road and street systems.
Homeowners Association and Community Development:
- Register, regulate and supervise homeowners associations (HOAs).
- Assist housing cooperatives and NGOs in housing program implementation.
- Promote government-private sector partnerships for decent housing.
- Oversee regulatory framework for housing and urban development projects.
General Powers:
- Enter into contracts, partnerships, and agreements domestic and foreign.
- Acquire assets, grants, donations for its purposes.
- Fulfill international commitments on human settlements.
- Set and collect fees, impose fines and penalties.
- Recommend legislation amendments.
- Promote use of indigenous housing materials and technologies.
- Implement prototype housing projects and exercise eminent domain if necessary.
- Open subdivision roads to public welfare needs.
- Perform other law-mandated functions.
Organizational Structure
- Includes Office of the Secretary with Undersecretaries, Assistant Secretaries, and support staff.
- Secretary roles include advising the President, policy establishment, rule promulgation, supervision, coordination with agencies, and membership in key national boards.
- Three Undersecretaries and three Assistant Secretaries assist the Secretary with specified qualifications.
- Bureaus include Environmental/Urban Planning, Housing/Real Estate Regulation, and Homeowners Associations/Community Development.
- Regional offices may be established.
Human Settlements Adjudication Commission (HSAC)
- HLURB is reconstituted as the HSAC tasked with adjudicatory functions.
- Composition includes five Commissioners appointed by the President, with an Executive Commissioner managing operations.
- Regional Adjudication Branches with appointed Regional Adjudicators handle cases regionally.
- Commissioners and Regional Adjudicators must be lawyers with required years of experience.
- Jurisdiction covers cases on subdivisions, condominiums, real estate developments, homeowners associations, enforcement of housing laws, and related disputes.
- Powers include rule-making, hearing cases, contempt sanction, issuing injunctions, summoning witnesses, and more.
- Decisions by Regional Adjudicators are appealable to the Commission; Commission decisions may be appealed to the Court of Appeals.
- Enforcement includes writs of execution and appointment of Sheriffs.
- Criminal prosecutions for housing law violations are under courts’ jurisdiction.
National Human Settlements Board
- A single Board of Trustees to exercise policy and program development powers.
- Chaired by the Department Secretary with members including heads of key government agencies and attached agencies.
- HDMF retains independent board for corporate powers.
Attached Corporations
- The Department supervises National Housing Authority, National Home Mortgage Finance Corporation, Home Development Mutual Fund, and Social Housing Finance Corporation.
- These agencies remain attached for policy coordination and are subject to performance contracts.
- Restructuring may be recommended within two years to eliminate overlaps and clarify roles.
- Reorganization to be coordinated with the Governance Commission for GOCCs.
Housing One-Stop Processing Centers (HOPCs)
- Established in regions to centralize housing-related permits, clearances, and licenses processing.
- Agencies involved must assign authorized personnel to the HOPCs.
- Housing price ceilings jointly determined and reviewed every two years.
Identification and Designation of Lands
- Department coordinates with DENR, DAR, DA, DILG, and LRA to identify government lands suitable for housing.
- Priority is given to lands idle for more than ten years, excluding exempt lands.
- Identified lands under national jurisdiction are transferred to or administered by the Department with Presidential approval.
Transitory Provisions
- Consolidation of HUDCC and HLURB into the new Department and HSAC.
- Division of HLURB functions between Department and Commission.
- Transfer of assets, functions, personnel to new entities within six months.
- Employees have security of tenure, with options for absorption or separation.
- IRR to be issued within 90 days.
- Initial funding charged against HUDCC and HLURB budgets; future budgets included in General Appropriations.
Miscellaneous Provisions
- Mandatory review of Act implementation after three years.
- Separability clause for invalid provisions.
- Repeals older orders inconsistent with the Act.
- Effectivity based on publication 15 days after enactment.