Presidential Decree No. 1396 (PD 1396) — Creating the Department of Human Settlements and the Human Settlements Development Corporation, Appropriating Funds Therefor, and Accordingly Amending Certain Presidential Decrees
WHEREAS, man and his community require the fulfillment of
the following basic needs and requirements such as water, power, food, clothing,
shelter, medical services, education, sports and recreation, economic base
(livelihood), mobility and ecological balance embodied in a humanistic ideology
for the realization of a New Society;
WHEREAS, it is the national policy to attain the fruits of
social and economic development in our communities within the integrative
framework of human settlements;
WHEREAS, it is imperative that our development activities
promote and enhance a wholesome relationship between human beings and their
civic and physical environment;
WHEREAS, while the government has already addressed the
problems of rural poverty and stagnation by adopting and implementing a massive
countryside development program, a proper development perspective requires equal
concern for the management of urban development;
WHEREAS, it is necessary to organize the government's
policies and programs along these new areas of concern by establishing an
appropriate department and delineating its relationships with the various
agencies involved with its functions;
WHEREAS, it is also national policy to promote innovative
land development and community development controls as a technology for building
communities and estates in new areas, or renewing communities in depressed or
blighted areas; and
WHEREAS, the physical planning, development and management
of new communities and estates, or of old communities and blighted areas can
best be accomplished through the creation and operation of an adequate corporate
arm for the new Department.
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the
Philippines, by virtue of the powers vested in me by the Constitution, do hereby
order and decree the following as part of the law of the land:
SECTION l. Declaration of Policy.—It is hereby
declared to be the policy of the government to foster the growth and renewal of
our communities, both rural and urban, in an integrative manner that promotes
optimum land use, adequate shelter, environmental protection, utilization of
appropriate technology and rational inter-dependence amongst self-reliant
communities, all these towards the fullest development of man as a civic person
and as a human being, involving in this process the coordinated contribution of
the public and private sectors.
Creation of the Department of Human Settlements.
SEC. 2. Creation of the Department of Human
Settlements.—In order to carry out the above stated policy, there is hereby
established the Department of Human Settlements, hereinafter referred to as the
Department.
The Department shall be headed by a Secretary. For purposes of coordination,
the Secretary shall serve ex-officio as Chairman of each of the governing boards
of the corporation, commissions, and authorities which are placed under the
supervision of the Department.
The Secretary shall be assisted by one Undersecretary, unless otherwise
determined by the President.
Establishment of the National Capital Region.
SEC. 3. Establishment of the National Capital
Region.—In view of the critical importance of the Metropolitan Manila
Region in human settlements development, it is hereby declared and established
as the National Capital Region of the Republic of the Philippines, and its
administration as such is hereby vested in the Secretary of Human Settlements.
The pertinent provisions of Presidential Decree No. 824, creating the
Metropolitan Manila Commission, are hereby accordingly amended.
Powers and Functions of the Department.
SEC. 4. Powers and Functions of the Department.—The
Department shall have the following powers and functions which it shall
undertake by itself or through the corporations, commissions and authorities
which are placed under its supervision.
Promulgate national standards and guidelines for human settlements which
shall govern land use plans and zoning ordinances of local governments, civil
works and infrastructure programs and projects of the National Government, and
subdivisions or estate development projects of both the public and private
sectors;
Promulgate national standards and guidelines for environmental management
relative to air quality, water quality, land use and waste management which
shall govern development programs and projects and other activities in settled
communities, urban or rural, as well as in those areas immediately contiguous
thereto and develop an environmental impact assessment system for the
operationalization of said standards and guidelines;
In coordination with appropriate agencies, effect a single regulatory system
relative to subdivision, zoning (including architectural design), building, fire
and related regulations;
Prepare and submit to the Board of the National Economic and Development
Authority a national multi-year Human Settlements Plan which shall translate the
Philippine Development Plan into spatial and temporal terms, based on the
locational distribution of national resource endowments (including energy),
population, climate, and production capacity;
Formulate plans and programs and implement, either on its own initiative and
operational responsibility or through the agencies or corporations placed under
its supervision, projects for:
Urban renewal and development, including but not limited to the construction
and management of social and economic housing
Estate or New Town development within sites designated by the Office of the
President as Bagong Lipunan sites
Land assembly and real property management
Development and installation on a community scale of waste management
systems and of appropriate technologies.
Promulgate appropriate rules and regulations which shall have regulatory
force for the enforcement of its standards and guidelines;
Enter into contracts, either domestic or foreign, under such terms and
conditions as it may deem necessary and reasonable;
Receive, take and hold by bequest, devise, gift, purchase or lease, either
absolutely or in trust for any of its purposes from foreign and domestic
sources, any asset, grant or property, real or personal, subject to such
limitations as are provided in existing laws and regulations; and to convey such
assets, grants or property; invest and reinvest the same under this provision
and deal with and expand its assets and income in such manner as will best
promote its public welfare objectives;
Develop and maintain in conjunction with cooperating agencies a responsive
and effective information system through the establishment of a data bank to
support the department at various levels in the planning, monitoring, execution,
coordination and control of its various activities, programs and/or projects;
Determine, fix and collect reasonable amounts to be charged as filing fees,
inspection fees and other administrative or service fees necessary for the
effective implementation of all the laws, Presidential Decrees and other legal
issuances enforced by the Department;
Supervise all corporations placed under the Department;
Call on any department, bureau, office, agency or instrumentality of the
government and private entities and organizations for cooperation and assistance
in the performance of its functions;
Adopt rules and regulations for the transaction of its business; and
Perform such other activities which are necessary for the effective
performance of the abovementioned functions and objectives.
Creation of the Human Settlements Development Corporation.
SEC. 5. Creation of the Human Settlements Development
Corporation.—In order to provide an adequate corporate arm for the
Department, especially in the discharge of its functions relative to urban
renewal, New Town and estate development in Bagong Lipunan sites and real
property management, there is hereby created the Human Settlements Development
Corporation. The Corporation shall be subject to the supervision of the
Department.
Purposes of the Corporation.
SEC. 6. Purposes of the Corporation.—The purposes
of the Corporation shall be as follows:
The development of new communities that are economically viable and
environmentally sound, through innovative urban land mechanisms and
self-financing arrangements;
The renewal of urban communities or parts thereof, through housing and other
urban improvement projects.
The abovementioned development and/or renewal activities of the Corporation
shall be undertaken or implemented generally, but not exclusively, on land
parcels or tracts which have designated as Bagong Lipunan sites by the Office of
the President.
Powers and Functions of the Corporation.
SEC. 7. Powers and Functions of the
Corporation.—The Corporation shall have the following powers and
functions:
Prepare and implement development and/or renewal project plans for Bagong
Lipunan site. The Corporation shall have as its initial project the Lungsod
Silangan Townsite consisting of 20,313 hectares in the Municipalities of
Antipolo, San Mateo and Montalban, Province of Rizal and the parcel of land
consisting of 160,410 hectares embraced and covered by Proclamation Nos. 1636
and 1637 with boundaries delineated in Proclamation No. 1637 which are hereby
declared as Bagong Lipunan sites;
Administer, operate and/or manage estates or New Town projects on Bagong
Lipunan sites either exclusively through subsidiary corporations or in
association with other government (including local governments) or private
entities;
Provide or operate utilities services in Bagong Lipunan project sites, in
accordance with law;
Acquire, purchase, clear, alter, construct, enlarge, occupy, mortgage,
manage and dispose by lease or sale or otherwise deal in lands and building of
every kind and character, whether belonging to or to be acquired by the
Corporation; exercise the right of pre-emption, either by agreement or by
expropriation; and in general, engage in real property management;
Engage in the transfer of property rights of land within designated Bagong
Lipunan project sites, when deemed necessary, such that the land is exchanged
for one of similar value; Provided, that no land acquired by the
Corporation through eminent domain as provided for in Section 13 of this Decree
shall be sold or the title thereof disposed;
Construct, or cause to be constructed, acquire, own, lease, operate and
maintain infrastructure facilities, housing units, factory buildings, utilities
and services necessary or useful in the development of pilot communities;
Fix, assess and collect charges and fees, including rentals for the lease,
use or occupancy of lands, buildings, structures, and all the facilities owned
and administered by the Corporation; to fix and collect fees and charges for the
issuance of permits, licenses and the rendering of services not enumerated
herein, the provisions of law to the contrary notwithstanding.
Provided, that an equitable formula for sharing the proceeds thereof
with the local governments or other government agencies concerned shall be
developed and shall be in effect upon approval by the President;
Recommend to the President the transfer to the Corporation of all foreclosed
properties held by government agencies located within Bagong Lipunan and
prototype project areas;
When essential to the proper administration of its corporate affairs or when
necessary for the proper transaction of its business or for carrying out the
purposes of this decree, to issue bonds or contract loans, credits or
indebtedness, domestic or foreign, the payment of which shall be guaranteed by
the government through the President of the Philippines or his duly authorized
representative; and
Prescribe its by-laws; adopt, alter and use a corporate seal which shall be
judicially noticed; make contracts, lease, own or otherwise dispose of personal
and real property; sue and be sued, and otherwise do and perform any and all
acts and things that may be necessary or proper to carry out the purposes of
this Decree.
Governing Body of the Corporation.
SEC. 8. Governing Body of the Corporation.—The
Corporation shall be governed by a Board of Directors, composed of seven (7)
members, as follows:
Secretary of the Department of Human Settlements as Chairman
Chairman of the Development Bank of the Philippines
Governor of the Central Bank of the Philippines
Secretary of the Department of Local Government and Community Development
Secretary of the Department of Public Works, Transportation and
Communications
Secretary of the Department of Industry.
The Chief Executive of the Corporation shall be a General Manager which shall
be appointed by the Board.
Appointment, Control and Discipline of Personnel.
SEC. 9. Appointment, Control and Discipline of
Personnel.—The Board, upon recommendation of the General Manager of the
Corporation, shall appoint the officers and employees of the Corporation and its
subsidiaries; fix their compensation, allowances and benefits, their working
hours and such other conditions of employment as it may deem proper; grant them
leaves of absence under such regulations as it may promulgate; discipline and/or
remove them for cause; and establish and maintain a recruitment and merit system
for the Corporation and its affiliates and subsidiaries.
Capitalization of the Corporation.
SEC. 10. Capitalization of the Corporation.—The
Corporation shall have an authorized capital stock of Five Hundred Million Pesos
(P500,000,000) divided into 500,000 shares with a par value of One Thousand
Pesos (P1,000.00) per share to be subscribed and paid for by the Government of
the Republic of the Philippines.
For this purpose, an initial release of One Hundred Million Pesos
(P100,000,000) is hereby authorized for CY 1978 chargeable against the Special
Activities Fund of P.D. 1250.
Additional capitalization in the nature of (a) properties as may be
contributed to the Corporation by the government through further Presidential
Proclamation designating Bagong Lipunan sites and other prototype project sites,
(b) all capitalized surplus and (c) contributions by government financial
institutions are also hereby authorized.
Borrowing Power.
SEC. 11. Borrowing Power.—With the prior approval
of the Secretary of Finance, the Monetary Board and the President of the
Philippines, the Corporation may borrow from foreign public or private financial
institutions such amounts as may from time to time be required for its
operations, or issue bonds promissory notes, debentures, certificates of
indebtedness, and other debt instruments in foreign currency. Notwithstanding
the provisions of any law to the contrary, the Central Bank is hereby authorized
to extend loans and advances to the Corporation under Section 88 of Republic Act
No. 265, as amended, otherwise known as the Central Bank Charter, subject to
such terms and conditions as may be prescribed by the Monetary Board.
No part of the proceeds of domestic and/or foreign borrowings shall be used
for operating expenses of the Corporation.
The bonds, promissory notes, debentures, certificates of indebtedness and
other debt instruments issued in local or foreign currency shall be at such
interest rates, maturities and other terms and conditions as the Corporation may
determine. The debt instruments may be secured by the assets of the Corporation
and shall be fully exempt, both as to principal and interest, from any and all
taxes imposed by the government or any of its subdivision. The debt instruments
shall be fully negotiable and shall be unconditionally guaranteed both as to
principal and interest by the Government of the Republic of the Philippines,
which guaranty shall be indicated on the face thereof.
A sinking fund is hereby created for the payment of the Corporation's bonds
issued under the provisions hereof in such manner that the total contribution
thereto accrued at such rate of interest as may be determined by the Secretary
of Finance in consultation with the Monetary Board shall be sufficient to redeem
the bonds at maturity. The said fund shall be under the custody of the Central
Bank of the Philippines which shall invest the same in such manner as the
Monetary Board may approve; shall charge all expenses of such investment to the
sinking fund and shall credit the same with the interest on investments and
other incomes belonging to it.
A standing annual appropriation is hereby made out of any general funds in
the National Treasury in such amount as may be necessary to provide for the
sinking fund created herein and for the interest on bonds issued by the
Corporation by virtue hereof.
Profits of the Corporation.
SEC. 12. Profits of the Corporation.—Profits which
may be realized from the operations of the Corporation shall accrue to and be
automatically appropriated as part of the corporate earnings of the Corporation,
any provision of law to the contrary notwithstanding.
Eminent Domain.
SEC. 13. Eminent Domain.—The Corporation shall have
the power to acquire any property required for the establishment and expansion
of Bagong Lipunan sites and facilities by purchase by negotiation or by
expropriation proceedings. To promote maximum development of these areas, the
properties acquired may thereafter be resold, or leased by the Corporation to
any enterprise, private or government, under such terms and conditions as it may
impose, except those acquired through expropriation proceedings which cannot be
resold or the title thereof disposed.
Corporation, Authorities and Agencies Under the Supervision of the Department.
SEC. 14. Corporation, Authorities and Agencies Under the
Supervision of the Department.—The following corporations, authorities and
agencies are hereby placed under the supervision of the Department and their
respective charters are correspondingly amended to the extent that the pertinent
provisions thereof are inconsistent with the provisions of this Decree. The
specific amendments to be effected in the respective charters of the affected
corporations and authorities shall be provided for in the Letters of
Implementation to be issued by the President to implement this Decree, which
legal issuance shall form part of this Decree.
National Housing Authority
National Home Mortgage Finance Corporation
Home Financing Commission
National Housing Corporation
Technology Resource Center
National Environmental Protection Council
National Pollution Control Commission
Human Settlements Commission
The President shall, in the light of the provisions of Section 2 of this
Decree and, whenever necessary in order to maintain the odd number in the
membership of the governing boards of the above corporations and commissions,
appoint an additional member each to the said Boards. In the case of the Human
Settlements Commission, in addition to the Undersecretary of Energy who shall be
made an ex-officio member, a Deputy Chairman shall be appointed by the
President.
Relationship Between the Department and the Supervised Agencies.
SEC. 15. Relationship Between the Department and the
Supervised Agencies.—The supervision of the government corporations and
authorities listed in Section 14 shall be for the purpose of policy and program
coordination and integration. The formulation and implementation of the
policies, plans and projects of the attached agencies shall conform to the
overall policies and plans of the Department.
To give effect to the foregoing, a centralized administrative and management
office known as the Corporate Planning Office is hereby created in the
Department.
Regional Offices.
SEC. 16. Regional Offices.—There shall be
established as many regional offices as are necessary and consistent with the
requirements of economy and efficiency: Provided, That they are
established in accordance with the regional pattern as described in Paragraph 1,
Article I, Chapter III, Part II of the Integrated Reorganization Plan, as
amended. The regional office shall be headed by a Regional Director who may be
assisted whenever necessary, by one or more Assistant Regional Directors.
Counterpart Units and Sub-Regional Offices.
SEC. 17. Counterpart Units and Sub-Regional
Offices.—The regional office shall have such counterpart units as may be
necessary, corresponding to the major functional areas and responsibilities of
the different corporations and agencies attached under it.
The Department shall, within each region, establish such sub-regional offices
as may be necessary for the accomplishment of its declared objectives and
policies.
Conversion of the Human Settlements Commission.
SEC. 18. Conversion of the Human Settlements
Commission.—The Human Settlements Commission established pursuant to
Presidential Decree No. 933 is hereby renamed as the Human Settlements
Regulatory Commission and shall accordingly be the regulatory arm of the
Department.
Appointment of Department Personnel.
SEC. 19. Appointment of Department Personnel.—The
Department shall have an adequate personnel complement. Its officers and
employees shall be appointed by the Secretary, except those whose appointments
are vested by law in the President of the Philippines. The Office of
Compensation and Position Classification, Budget Commission, shall consider
professional and technical qualifications and competencies in fixing the
salaries of the corresponding personnel.
Appropriations.
SEC. 20. Appropriations.—To carry out the purpose
of this Decree, there is hereby appropriated out of any funds in the National
Treasury not otherwise appropriated the sum of FIFTY MILLION PESOS (P50,000,000)
for the operation of the Department and its regional offices. This shall be in
addition to whatever applicable appropriations may be transferred to it from
among the government agencies reorganized under this Decree. Thereafter, the
appropriations for the Department and its regional offices shall be included in
the National General Appropriations Act. The regional offices may likewise
utilize the Local and the Regional Development Funds as may be necessary in the
implementation of projects at the regional level.
Repealing Clause.
SEC. 21. Repealing Clause.—All laws, decrees,
executive orders, rules and regulations inconsistent herewith are hereby
repealed, amended or modified accordingly.
Separability Clause.
SEC. 22. Separability Clause.—If for any reason,
any section or provision of this Decree is declared to be unconstitutional or
invalid, the other provisions hereof not affected shall continue in full force
and effect.
Effectivity.
SEC. 23. Effectivity.—This Decree shall take effect
immediately.
Done in the City of Manila, this 2nd day of June, in the year of Our Lord,
nineteen hundred and seventy-eight.
(Sgd.) FERDINAND E. MARCOS
President of the
Philippines
By the President:
(Sgd.) JACOBO C. CLAVE
Presidential Executive
Assistant
Source: Supreme Court E-Library, Republic of the Philippines. Philippine laws are public documents (works of the government).
