Title
Nationwide Slum Improvement and Resettlement Program
Law
Letter Of Instructions No. 555
Decision Date
Jun 11, 1977
A Philippine law establishes a program to improve slums and blighted areas, requiring local governments to identify and formulate plans for each area, while providing financial assistance and infrastructure development through various government agencies.
slum improvement
resettlement program
urban areas
A

Policy intent and guiding approach

  • The program is instituted to complement the nationwide effort in constructing new housing units.
  • Slum improvement and resettlement, otherwise known as upgrading of sites and services, is declared as an accepted approach to meeting housing needs.
  • Upgrading of sites and services is stated as the primary strategy in dealing with slums and other blighted communities.
  • The program requires coordinated participation of local governments and national agencies to upgrade identified blighted areas.

Coverage and program scope

  • A Slum Improvement and Resettlement Program (SIR) must be instituted in all urban areas.
  • Priority must be given to identified growth centers.
  • Local governments must pinpoint all slums and blighted areas within their jurisdictions.
  • The National Housing Authority must approve inclusion of blighted areas in the SIR program.
  • Relocation and resettlement must be pursued only under specified conditions and requires National Housing Authority approval.

Program planning, staffing, and approvals

  • Local governments must establish within their offices a staff solely for slum improvement under the SIR program, and also for housing in their localities.
  • The local government staff must be composed of at least an urban planner, architect, engineer, social scientist, financial analyst, and lawyer.
  • The staff must be paid from funds of local government.
  • Local governments must formulate a 3-year, a 5-year, and a long-term on-going program for slum improvement and integrate these plans with:
    • the development plan of the city/municipality, and
    • the housing efforts of the National Housing Authority.
  • Local city governments must submit within 60 days from the constitution of the staff their Three-Year Plan to the National Housing Authority.
  • Each blighted area must be isolated in the local program, and the local government staff must formulate a project plan for improvement of each area.
  • The National Housing Authority must issue guidelines for the formulation of improvement plans.
  • The National Housing Authority must provide technical assistance in plan formulation.
  • The National Housing Authority must approve all project plans.
  • For each region, the National Housing Authority must establish a staff of regional teams with strength equivalent to at least that of one local city government staff, compensated out of National Housing Authority funds.

Infrastructure construction and utilities access

  • The Department of Public Works, Transportation and Communications and the Bureau of Public Works must provide funds for and construct or cause construction of all vertical infrastructure designed for community use, such as:
    • barangay halls,
    • schools, and
    • multi-purpose center.
  • These vertical infrastructure components must be made available to projects through grants.
  • The Department, through the Bureau of Public Works, must construct footpaths or catwalks as necessary for circulation in the project.
  • The Department, through the Bureau of Public Works, must install drainage and sewerage systems as necessary under the project plan.
  • Major and internal roads must be funded and constructed (or caused to be constructed) by the Department of Public Highways through grants.
  • The Department of Public Highways must install drainage along these roads to link up and integrate with drainage constructed by the Department of Public Works, Transportation and Communications through the Bureau of Public Works along footpaths and catwalks.
  • The Local Water Utilities Administration must cause water to be made available in each project area.
  • The National Electrification Administration must cause electricity to be made available in each project area.
  • Water and electricity availability may involve charging residents reasonable dues to recover costs.

Land acquisition, disposition, and resident tenure

  • The local government must acquire the area if privately owned through expropriation, upon approval of the National Housing Authority of the project plan.
  • The acquired area must be rendered free and alienable for the purposes of the program.
  • If the land is owned by a public entity, or is foreclosed by a government financial institution, and the current use is not according to the optional use determined by the Human Settlements Commission, the local government must acquire the land at:
    • its appraised value for land and improvements as determined by the Provincial Assessor if owned by a public entity, or
    • its foreclosed principal amount, without accrued interests, if owned through foreclosure by a government financial institution.
  • The land and the use of improvements must be made available to bonafide residents as determined by the local government under guidelines of the National Housing Authority.
  • Availability to residents must be under a long-term lease for twenty-five years with an option to purchase after ten years of continued and uninterrupted occupancy.
  • If the option to purchase is exercised, all subsidies and grants determined by the project plan approved by the National Housing Authority must be recovered in full from the buyer.
  • The interest rate upon recovery of subsidies and grants must be 12% p.a. compounded annually, from the time of project construction.
  • Purchase proceeds must be received by the local government and pooled into a fund for the exclusive purpose of housing and slum improvement in the locality and jurisdiction of the local government.
  • The pooled fund must be exclusively for use of the local housing staff, under the guidelines and with approval of the National Housing Authority.

National funding support and repayment mechanics

  • The National Housing Authority must assist in improving dwellings through loans, grants, direct construction, or other means it deems feasible.
  • Loan financial assistance must be extended to the local government for residents of blighted areas, subject to guidelines stipulated by the National Housing Authority and the local government.
  • Financial assistance extended by the National Housing Authority to local governments must be 12% p.a. and must be repayable over twenty-five years.
  • Repayment to the National Housing Authority must be in equal quarterly installments, sourced from:
    • collections from residents in the area, and
    • other sources.
  • Approval of this financial assistance must be obtained from the Department of Finance.
  • Upon approval, the financial assistance must be guaranteed under Presidential Decree No. 752.
  • If default occurs by more than two (2) quarters, the appropriate amounts must be deducted from the local government’s internal revenue allotments in amounts necessary to cover periodic amortization.
  • The National Housing Authority must present all approved project plans to cooperating agencies, including the Department of Public Works, Transportation and Communications and the Department of Public Highways, for improvement or revision.
  • Charges levied on residents must not increase beyond the charges originally approved by the National Housing Authority.
  • The National Housing Authority must advance necessary funds to the local government for the account of the national agency involved.
  • The advanced funds must be payable from the agencies’ budget allocations in twelve equal quarterly installments.
  • The Commissioner of the Budget must remit the necessary amounts directly to the National Housing Authority.

Resident collections and fund remittances

  • Proceeds from the lease or sale must be collected directly from residents by the Philippine National Bank, assisted by the local government.
  • The bank must keep necessary accounts of each resident.
  • Remittances must be done by the bank directly to the creditors of the local government in proportion to their financial exposure.
  • Any remaining balance must be remitted to the local government to cover other expenses incurred with respect to the project.

Additional bond financing and absorptions

  • The National Housing Authority must determine additional financial requirements based on the Three-Year Programs submitted by each local government.
  • Additional requirements must be raised through housing bonds issued under Presidential Decree No. 757.
  • The bonds must bear 8% interest and must be payable over twenty-five years.
  • The amounts raised must be additional to those authorized under Letter of Instruction No. 509.
  • Bond issuance amounts must be subject to approval of the Secretary of Finance and the Director-General of the National Economic Development Authority.
  • The Social Security System and the Government Service Insurance System must absorb these bonds at the amounts and according to the schedule determined by the Secretary of Finance and the Director-General of the National Economic Development Authority.

Relocation and resettlement limits

  • Relocation and resettlement must be pursued only when dwellings are in areas:
    • ill-suited or hazardous for housing, or
    • needed for public infrastructure or other public interests, or
    • necessary to decongest slum areas being improved or upgraded.
  • The National Housing Authority must approve all relocation and resettlement.

Participating agencies and directives

  • The Department of Public Works, Transportation and Communications and its Bureau of Public Works must provide funds and construct vertical community infrastructure and related footpaths/catwalks, drainage, and sewerage through grants.
  • The Department of Public Highways must provide funds through grants for major and internal roads and drainage integration.
  • The Local Water Utilities Administration must provide water access to each project area.
  • The National Electrification Administration must provide electricity access to each project area.
  • The Human Settlements Commission determines optional land use standards used to determine whether acquisition is required where current use does not conform.
  • The Department of Finance approves the financial assistance and governs bond-related decisions for absorption and schedules.
  • The Commissioner of the Bud

    ...continue reading

    Analyze Cases Smarter, Faster
    Jur helps you analyze cases smarter to comprehend faster, building context before diving into full texts. AI-powered analysis, always verify critical details.

    About Privacy Terms