NATRES Report

R.A. 7279 THE URBAN DEVELOPMENT HOUSING ACT OF 1992

R.A. 7279

THE URBAN DEVELOPMENT HOUSING ACT OF 1992The SocioPolitical ContextPost 1986 Philippines: Redemocratization after Martial Law Regime

1987 Constitution

Article II Sec. 23. The State shall encourage non-governmental community-based or sectoral organizations that promote the welfare of the nationThe SocioPolitical ContextArticle XIII, Sections 9 and 10. Provides for a continuing program of urban land reform and housingMake available at affordable cost decent housing and basic services to underprivileged and homeless citizensPromote adequate employment opportunities for these citizensNo eviction of urban or rural poor dwellers except in accordance with law and in just and humane mannerArticle XIII, Sections 15 and 16Respect the role of independent peoples organizations to pursue and protect their collective interests and aspirations through peaceful and lawful meansRecognize the right of peoples organizations to effective and reasonable peoples participation at all levels of social, political and economic decisionmaking

The SocioPolitical ContextThe SocioPolitical ContextLocal Government Code of 1991

The Code mandates local government units to adopt a comprehensive land use plan and enact integrated zoning ordinancesThrough the Code, the responsibility for providing basic services was shifted to local government unitsThe Passage of RA 7279: The Urban Development and Housing Act of 1992December 14, 1987 Senate Bill 234 filed and introduced by Sen. LinaDecember 15, 1987 Bills were referred to the Committee on Urban Planning, Housing and Resettlement and the Committee on Finance1998 to 1990 Seven public hearings were conducted by the CommitteesAugust 15, 1991 Committee on Urban Planning, Housing and Resettlement filed Committee Report No. 1397, recommending approval of a substitute SB 234

The Passage of RA 7279: The Urban Development and Housing Act of 1992December 9, 1991 SB 234 approved on the 3rd Reading; All 20 Senators present voted in favor of the billFebruary 3, 1992 Conference Committee Report was approved by the SenateMarch 24, 1992 RA 7279 UDHA Law was approved and signed into law by President Corazon C. AquinoMarch 28, 1992 Publication in two newspapersMarch 29, 1992 Date of effectivityFeatures of RA 7279Objectives of the Law

Uplift conditions of underprivileged and homeless citizens in urban and resettlement areas through decent housing at affordable cost, basic services and employment opportunitiesProvide rational use and development of urban lands as a means of ensuringEquitable utilization of residential lands in urban areas, focusing on the needs and requirements of underprivileged and homeless citizens and not simply on market forces;Optimization of the use and productivity of land and urban resources;Development of urban areas conducive to commercial and industrial activities which can generate more economic opportunities for the people;Reduction in urban dysfunctions, particularly those that adversely affect public health, safety and ecology; andAccess to land and housing by the underprivileged and homeless citizens.RA 7279National Urban Development and Housing FrameworkThe Housing and Land Use Regulatory Board (HLURB), under the direction of the Housing and Urban Development Coordinating Council (HUDCC) shall formulate the National Urban Development and Housing Framework.This framework includes:a review and rationalization of existing town and land use plans, housing programs, andprovision for social housing and other related activities such as the development of livelihood programs, public transport systems, maintenance of ecological balance and monitoring of population growth in urban areas. RA 7279Supports DecentralizationLocal government units are implementors of social housing programs. LGUs are expected to be more responsive to the hosing needs of theirCommunities.Moratorium on Eviction of Program BeneficiariesProvides for a moratorium on the eviction of all program beneficiaries and the demolition of their dwellings for a period of three years from the effectivity of the law.RA 7279Private Sector Participation

Tapped the private sectors capability and financial resources for social housing through such incentives as:Simplification of qualification and accreditation requirements forparticipating developersCreation of a one-stop offices in the different regions of the country for the processing, approval and issuances of clearances, permits and licenses;Simplification of financing procedures; andExemptions from taxes like capital gains tax for raw lands used forsocialized housing projects, value added tax for the project contractor, transfer tax for both raw and completed projects, and donors tax for lands donated for socialized housing.Private developers of proposed subdivision projects required to set aside am area for socialized housing equivalent to at least 20% of total subdivision area. RA 7279Community Mortgage Program

Institutionalized community participation and initiative in the provision of social housing through the Community Mortgage Program (CMP), a major component of the law.CMP is a mortgage financing program which assists legally organized associations of underprivileged and homeless citizens to own the land they occupy or where they choose to be relocated to. Implementing RA 7279 How was RA7279 Received?

It was viewed as the crowning achievement of the struggles of urban poor organizations, civic groups, non-governmental organizations and church groups.Consultative processes in drafting the law participated in by: a) representatives of non-governmental organizations and peoples organizations, b) National Housing Authority (NHA), c) Presidential Commission for the Urban Poor (PCUP), d)Department of Interior and Local Government (DILG)It was noted that local government officials were not active participants in this process. Implementing RA 7279 Issues and Concerns

LGUs not engaged in its formulation were opposing its implementationLGUs and those undertaking demolition lacked awareness or refused to accept the procedures prescribed by the lawInitially, courts were more familiar with PD 772 which criminalizes squatting and judges issued issuing court orders dismissing petitions for restraining orders on illegal demolitions.Some local chief executives admitted that they did not want to make an inventory of their land as the urban poor may occupy these areas. Implementing RA 7279 Issues and Concerns

Delayed Preparation of Land Use Plans and Identification of Social Housing SitesLGUs lack information and political willLGUs had no incentives to undertake these activitiesLGUs had no resources allocated for these functionsLack of LGU resources/capability for urban development

Strong market pressure to use land for commercial, industrial and infrastructure uses Implementing RA 7279 Criticisms of UDHA

It created the squatting industry, as it gives incentives instead of penalizing or discouraging it.The law penalizes local and national officials who coddle squatters, but no such officials have been prosecuted.The law penalizes members of squatting syndicates. While well known to squatters who pay rent and protection money to these syndicates, no member of a syndicate has been convicted. REPUBLIC ACT NO. 9397AN ACT AMENDING SECTION 12 OF REPUBLIC ACT NO. 7279, OTHERWISE KNOWN AS THE URBAN DEVELOPMENT AND HOUSING ACT OF 1992, AND FOR OTHER PURPOSESSECTION 1. Section 12 of Republic Act No. 7279, otherwise known as the "Urban Development and Housing Act of 1992," is hereby amended to read as follows:"SEC. 12. Disposition of Lands for Socialized Housing. - The National Housing Authority, with respect to lands belonging to the National Government, and the local government units with respect to the other lands within their respective localities, shall coordinate with each other to formulate and make available various alternative schemes for the disposition of lands to the beneficiaries of the Program. These schemes shall not be limited to those involving transfer of ownership in fee simple but shall include lease, with option to purchase, usufruct or such other variations as the local government units or National Housing Authority may deem most expedient in carrying out the purposes of this Act."

REPUBLIC ACT NO. 9397"Consistent with this provision, a scheme for public rental housing may be adopted.

"Disposition of lands, including any improvements thereon, owned by the National Government or any of its agencies or instrumentalities and/or the local government units through direct negotiated sale to the occupants thereof without need of public bidding shall be allowed subject to the following conditions:a) The lands are within a residential zone as classified by the local government unit concerned;b) The lands are certified to be for socialized housing purpose by the Housing and Urban Development Coordinating Council;c) The occupants are qualified beneficiaries in accordance with Section 16 and are registered as such in accordance with Section 17 of this Act;

REPUBLIC ACT NO. 9397d) The cost of said lands shall be made affordable to the beneficiaries, taking into consideration their income and land valuation required in Section 13 of this Act;e) Any subsequent disposition of the said land shall be subject to the limitations provided in Section 14 of this Act; andf) The occupants have resided on the said lands subject to the prohibitions provided in Section 30 of this Act.

SEC. 2. Separability Clause. - If any part or provision of this Act shall be held unconstitutional or invalid, other provision hereof that are not affected thereby shall continue to be in full force and effect.

REPUBLIC ACT NO. 9397SEC. 2. Separability Clause. - If any part or provision of this Act shall be held unconstitutional or invalid, other provision hereof that are not affected thereby shall continue to be in full force and effect.

SEC. 3. Repealing Clause. - All laws, presidential decrees, executive orders, rules, regulations, or parts thereof which are not consistent with this Act, are hereby repealed, amended or modified accordingly.

SEC. 4. Effectivity. - This Act shall take effect fifteen (15) days after its publication in at least two newspapers of general circulation.

R.A. 1899

reclamation of propertyThe SocioPolitical ContextLocal policies, laws, rules and regulations governing land reclamation:The 1987 Philippine Constitution Under Article XII, it provides: (a) that with the exception of agricultural lands, all other natural resources shall not be alienated (Secs. 2 and 3); (b) that private corporations may not hold such alienable lands of the public domain except by lease, for a period not exceeding twenty-five years, renewable for not more than twenty-five years, and not to exceed one thousand hectares in area (Sec. 3); and (c) that save in cases of hereditary succession, no private land shall be transferred or conveyed except to individuals, corporations, or associations qualified to acquire or hold lands of the public domain (Sec. 7)The SocioPolitical ContextLocal policies, laws, rules and regulations governing land reclamation:Commonwealth Act No. 141, as amended, otherwise known as the Public Land Act (1936) Relevant provisions of this law provides: (a) that alienable and disposable lands of the public domain include lands reclaimed by the government (Secs. 9 and 59); (b) that reclaimed lands are disposable to private parties by lease only (Sec. 61); and (c) that the lease of reclaimed lands shall be for commercial, or industrial or other similar purposes (Sec. 62). The SocioPolitical ContextLocal policies, laws, rules and regulations governing land reclamation:Presidential Decree No. 3-A It requires that all reclamation shall be limited to the National Government or any person authorized by it under a proper contract. Presidential Decree No. 1084 (1977), otherwise known as the Charter of the Public Estate Authority It declares as State policy to provide for a coordinated, economical and efficient reclamation of lands (Sec. 2), and authorizes the PEA to reclaim land (Sec. 4, a). It also authorizes the PEA to contract loans as it shall deem appropriate for the accomplishment of its purposes (Sec. 12), and empowers any government owned or controlled financial institutions other than the Central Bank, Government Service Insurance System and the Social Security System to guarantee loans of the PEA (Sec. 13). The SocioPolitical ContextLocal policies, laws, rules and regulations governing land reclamation:Executive Order No. 525 (1979) Section 1 thereof directs as follows: (a) that the PEA be primarily responsible for integrating, directing and coordinating all reclamation projects for and on behalf of the National Government; (b) that all reclamation projects shall be approved by the President upon recommendation of the PEA, and shall be undertaken by the PEA or through a proper contract executed by it with any person or entity; (c) that reclamation projects of any national government agency or entity authorized under its charter shall be undertaken in consultation with the PEA upon approval of the President. Section 2 authorizes the PEA to issue such rules and regulations for the evaluation and sound administration of all reclamation projects. And, Section 3 declares that all lands reclaimed by PEA shall belong to or owned by the PEA. The SocioPolitical ContextLocal policies, laws, rules and regulations governing land reclamation:Executive Order No. 380 (2004) This transformed the PEA into the Philippine Reclamation Authority (PRA), transferred its non-reclamation assets and liabilities to the Department of Finance, and separated from it the PEA-Tollway Corporation. The Medium-Term Philippine Development Plan for 2004-2010 It identifies reclamation as one of the primary sources of revenue of the Government. Republic Act No. 4850, otherwise known as the Charter of the Laguna Lake Development Authority It empowers the LLDA to reclaim portions of the Laguna Lake, and declares that lands so reclaimed shall be the property of the LLDA (Sec. 4[I]). The SocioPolitical ContextLocal policies, laws, rules and regulations governing land reclamation:Republic Act No. 1899 (1957) This is an old law authorizing the reclamation of foreshore lands by chartered cities and municipalities, and providing that any and all lands reclaimed, as herein provided, shall be the property of the respective municipalities or chartered cities

RA 1899Local policies, laws, rules and regulations governing land reclamation:Republic Act No. 1899 (1957) provides that land reclaimed by a chartered city or municipalities are owned by such city or municipality. This law, however, did not help in resolving the Cebu-Talisay ownership dispute over the cebu South Reclamation Project (which was done by Cebu but lies in part within Talisay territory). This law was ignored in the resolution of said dispute due perhaps to impression that RA 1899 has been repealed by the PEA Charter, PD 3-A and Executive Order No. 525 (1979). Such impression, however, is misplaced since the PEA/PRA recognizes the existence of reclamation projects being planned/undertaken by other government agencies and entities, e.g., the LLDA Reclamation Project in Laguna de Bay. RA 1899Local policies, laws, rules and regulations governing land reclamation:Thus, Section 1, Rule III of the PEA/PRA Guidelines provides that reclamation projects of any National Government agency or entity authorized under its charter or existing laws shall be undertaken in consultation with the PEA. Furthermore, Section 7, 7(c) of the PEA/PRA Guidelines declares that PEA shall have no share in all LGU (Local Government Unit) funded reclamation projects. Unfortunately, the PEA/PRA Guidelines has no express and unequivocal provision, similar to that of RA 1899, that land reclaimed by a chartered city or municipality are owned by such city or municipality. Investors (like the Land Bank of the Philippines and JBIC, whose exposure in the Cebu South Reclamation Project was almost affected by the Cebu-Talisay dispute due to threats made by the Cebu Mayor not to pay its loans pending resolution of the dispute) would certainly appreciate having such an express and unequivocal provision of law.