Law Summary

1.0 Purpose

• Legal Principle: This Circular prescribes guidelines for providing free quarters to specified government officials following Section 42 of the General Provisions of R.A. 8172, also known as the 1996 General Appropriations Act.
• Key Definitions:
  • "Free quarters" refers to government-owned or leased accommodations that are fully furnished, including basic utilities such as telephone, water, and electricity.

2.0 Coverage

• Legal Scope: The Circular applies to officials assigned to locations away from their domicile who do not own accommodation in the area due to agency policies or staff restructuring.
• Included Officials:
  • Department Regional Directors
  • Department Assistant Regional Directors
  • Bureau Regional Directors
  • Assistant Bureau Regional Directors

3.0 Exemptions

• Exclusions: The following individuals are not covered by this Circular:
  • Public Health Workers under RA 7305 (Magna Carta of Public Health Workers)
  • Uniformed personnel from the Department of Interior and Local Government, Department of National Defense, and the National Mapping and Resource Information Authority
  • Individuals already entitled to free quarters under existing laws
  • Personnel stationed abroad

4.0 Definition of Free Quarters

• Concept Clarification: Free quarters entail the use of government accommodations that are furnished and include essential utilities for basic living needs.

5.0 Guidelines

• Provision of Quarters:

  • Heads of national agencies may provide free quarters within their premises without needing DBM approval for covered officials.

• Rental Arrangements:

  • If on-site accommodation is insufficient, agencies may rent housing at reasonable rates, not exceeding specified caps based on locality:
    • Special Cities (Mla/QC): P3,000
    • Highly Urbanized Cities: P2,500
    • Capital Centers: P2,500
    • Other areas: P2,000
  • The rental agreement must be between the agency and the property owner, with payments made directly to the owner.

• Utility Costs: Rental rates include charges for telephone, water, and electricity.

• Additional Quarters: Officials wishing for more expensive accommodation may choose it, provided they cover the excess cost.

6.0 Funding Source

• Financial Responsibility:
  • For national government agencies, costs shall be charged against the Maintenance and Other Operating Expenses (MOOE) allotment, becoming part of the yearly rental expenses.
  • For government-owned and controlled corporations, costs will be charged to their corporate funds.

7.0 Resolution of Cases

• Dispute Resolution: Issues not addressed by this Circular should be referred to the Department of Budget and Management for resolution.

8.0 Effectivity

• Implementation Date: The Circular is effective from January 1, 1996.

Key Takeaways

• This Circular outlines the provision of free quarters for designated government officials assigned away from their homes.
• Exemptions include public health workers and uniformed personnel, alongside those already entitled to housing benefits.
• Agencies are permitted to provide free quarters within their premises or rent accommodations subject to specified financial limits.
• Funding for these provisions is delineated based on the type of agency, ensuring compliance with financial regulations.