CREATING THE NATIONAL HOUSING AUTHORITY AND DISSOLVING THE EXISTING HOUSING AGENCIES, DEFINING ITS POWERS AND FUNCTIONS, PROVIDING FUNDS THEREFOR AND FOR OTHER PURPOSES.

• Number: Presidential Decree No. 757
• Sections: 24

Preamble

WHEREAS, the magnitude of the housing problem of the country

has grown into such proportions that only a purposeful, determined,

organized mass housing development program can meet the needs of

Filipino families for decent dwellings;

WHEREAS, recognizing the urgency of this problem, the new

Constitution of the Philippines has provided in Article II, Section 7

that the "State shall establish, maintain, and ensure adequate social

services in the field of * * * * housing * * * * * to guarantee the

enjoyment of the people of a decent standard of living;

WHEREAS, the attainment of this objective is highly

dependent on the conservation and rationalization of urban land use as

the instrument of urban land reform as well as on our ability to

regulate housing financing and construction costs to bring housing to

within the reach of the greater number of our people;

WHEREAS, government efforts in housing are now proliferated

among various agencies and there is an urgent need to concentrate such

efforts, resources, functions and activities in a national housing

agency to maximize results;

WHEREAS, the effective implementation of housing programs

will require the widest participation of the private sector in terms of

capital expenditures, land, expertise, and other resources related to

housing construction and land development;

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, as part of the law of the land, the following:

Section 1 Housing Program.

SECTION 1. Housing Program.—Pursuant to the mandate

of the New Constitution, there shall be developed a comprehensive and

integrated housing program which shall embrace, among others, housing

development and resettlement, sources and schemes of financing, and

delineation of government and private sector participation. The program

shall specify the priorities and targets in accordance with the

integrated national human settlements plan prepared by the Human

Settlements Commission.

In the preparation of said program, the following factors shall be

considered:

The management of urban development to promote the economic and

social well being and physical mobility of the people, and facilitate

industrial growth and dispersa ;

The conservation of land for housing development as well as the

regulation of land use to achieve optimum utilization patterns;

The organization of public and private resources into financial

intermediaries to meet the demand for housing, including provisions for

incentives and facilities to broaden the private sector participation

in housing investments; and

The extensive use of building systems, which shall maximize

the use of indigenous materials and reduce building costs

without sacrificing sound engineering and environmental standards.

Section 2 Creation of the National Housing Authority.

SEC. 2. Creation of the National Housing Authority.—

There is hereby created a government corporation to be known as the

National Housing Authority, hereinafter referred to as the "Authority",

to develop and implement the housing program above-mentioned. The

Authority shall have its principal office in the Greater Manila area but

may have such branch offices, agencies, or subsidiaries in other areas

as it may deem proper and necessary. The Authority shall be under the

Office of the President and shall exist for fifty (50) years but may be

extended.

Section 3 Purposes and Objectives.

SEC. 3. Purposes and Objectives.—The Authority

shall have the following purposes and objectives:

To provide and maintain adequate housing for the greatest

possible number of people;

To undertake housing, development, resettlement or other

activities as would enhance the provision of housing to every

Filipino;

To harness and promote private participation in housing

ventures in terms of capital expenditures, land, expertise, financing

and other facilities for the sustained growth of the housing industry.

Section 4 Capitalization.

SEC. 4. Capitalization.—The Authority shall have an

authorized capital of five hundred million pesos which shall be fully

subscribed by the Republic of the Philippines and paid as follows:

The sum of fifty million pesos upon the approval of this Decree

which is hereby appropriated out of the funds in the National Treasury

not otherwise appropriated, five million pesos of which shall be

released upon the organization of the Authority and the balance as and

when needed;

The sum of fifty million pesos for every subsequent fiscal year

for a period of nine years which must be included in the general

appropriations act: Provided, That the assets and balances of

appropriations transferred to the Authority pursuant to the provisions

of Section 5 hereof, shall not be included in determining the capital of

the Authority as provided in this Section.

Section 5 Dissolution of Existing Housing Agencies.

SEC. 5. Dissolution of Existing Housing Agencies.—The

People's Homesite and Housing Corporation (PHHC), the Presidential

Assistant on Housing and Resettlement Agency (PAHRA), the Tondo

Foreshore Development Authority (TFDA), the Central Institute for the

Training and Relocation of Urban Squatters (CITRUS), the Presidential

Committee for Housing and Urban Resettlement (PRECHUR), Sapang Palay

Development Committee, Inter-Agency Task Force to Undertake the

Relocation of Families in Barrio Nabacaan, Villanueva, Misamis Oriental

and all other existing government housing and resettlement agencies,

task forces and ad-hoc committees, are hereby dissolved. Their powers

and functions, balance of appropriations, records, assets, rights, and

choses in action, are transferred to, vested in, and assumed by the

Authority: Provided, That an inventory and evaluation of the

properties, equipment, assets, rights, choses in action, obligations and

liabilities of the herein dissolved agencies shall be made by the

Commission on Audit: Provided, Further, That all urban estates

acquired by the Government, the Department of Agrarian Reform and the

People's Homesite and Housing Corporation shall be transferred to the

Authority which shall administer, develop and dispose such estates

including the collection of accounts receivables therein, payment of

liabilities thereon and the enforcement of choses in action pertaining

to the same: Provided, Finally, That the transfers contemplated

therein shall be on an estate-to-estate basis after the corresponding

liquidation of each estate have been accomplished by the agency

concerned in accordance with existing, auditing and accounting rules and

regulations.

The qualified and necessary personnel of the

dissolved agencies may be transferred to and be absorbed by the

Authority: Provided, That the Board of Directors of the Authority

hereinafter provided, shall make personnel movement on the basis of

merit and fitness in accordance with comprehensive and progressive merit

system to be established by the Authority upon its organization.

The Authority, through its Board, shall effect the transfer herein

provided in a manner that will insure the least disruption of on-going

programs and projects: Provided, That in the period prior to the

actual assumption of duties by the Board and its functioning as such,

all officers and employees of the abolished agencies shall continue to

exercise all their functions and discharge all their duties and

responsibilities until ordered otherwise by the Board of the Authority.

The financial liabilities or obligations of the dissolved agencies

shall be assumed by the National Government and, for the payment of such

liabilities or obligations, bonds or securities may be issued by the

government in such amounts sufficient to cover said liabilities or

obligations, the proceeds of which are hereby appropriated for the

purpose. Alternatively, said liabilities or obligations may be paid by

direct appropriation which is hereby authorized in such amount as may be

determined by the Commission on Audit.

Section 6 Powers and functions of the Authority.

SEC. 6. Powers and functions of the Authority.—The

Authority shall have the following powers and functions to be exercised

by the Board in accordance with the established national human

settlements plan prepared by the Human Settlements Commission:

Develop and implement the comprehensive and

integrated housing program provided for in Section 1 hereof;

Formulate and enforce general and specific policies for housing

development and resettlement;

Prescribe guidelines and standards for the reservation,

conservation and utilization of public lands identified for housing and

resettlement;

Exercise the right of eminent domain or acquire by purchase

privately owned lands for purposes of housing development, resettlement

and related services and facilities;

Develop and undertake housing development and/or resettlement

projects through joint ventures or other arrangements with public and

private entities;

Issue bonds or contract loans, credits, or indebted ness,

including suppliers credit or any deferred payment arrangements with any

person or entity, domestic or foreign, for the implementation of its

housing programs;

Discharge all responsibilities of the government as may

arise from treaties, agreements, and other commitments on housing and

resettlement to which it is a signatory, including the determination of

forms of assistance for housing development to be extended through

multilateral or bilateral assistance programs;

Promote housing development by providing technical assistance;

Sue and be sued;

Adopt and use a seal which shall be judicially noticed;

Enter into contracts whenever necessary under such terms and

conditions as it may deem proper and reasonable;

Acquire property rights and interests, and encumber or

otherwise dispose the same as it may deem appropriate;

Invest its funds, as it may deem proper, in bonds and

securities issued and guaranteed by the government or by the Central

Bank of the Philippines;

Receive donations, grants, and bequests and utilize the same

for the attainment of its objectives. Such donations, grants, and

bequests shall be exempt from the payment of transfer taxes and be fully

deductible from the gross income of the donor or grantor for income tax

purposes;

Adopt its by-laws to supplement this Decree;

Prescribe and enforce guidelines, standards and rules in the

manner provided for in such rules and regulations promulgated and

adopted by the Authority designed to protect home and lot buyers through

the regulation of the real estate trade and business;

Regulate the relationship between owners and lessees of

residential properties in conformity with such rules and regulations as

may be promulgated and adopted by the Authority;

Promulgate, adopt, amend and/or repeal such rules and

regulations necessary to implement the intent and purposes of this

Decree. Such rules and regulations shall be submitted to the President

for his approval. Upon approval, the same shall have the force and

effect of law and shall take effect immediately after their publication

three times a week for two weeks in any newspaper of general

circulation; and

Perform such other acts not inconsistent with this Decree, as

may be necessary to effect the policies and objectives herein declared.

Section 7 Board of Directors.

SEC. 7. Board of Directors.—The Authority shall be

governed by a Board of Directors, hereinafter referred to as the Board,

which shall be composed of the Secretary of Public Works, Transportation

and Communications, the Director-General of the National Economic and

Development Authority, the Secretary of Finance, the Secretary of Labor,

the Secretary of Industry, the Executive Secretary and the General

Manager of the Authority. From among the members, the President will

appoint a chairman. The members of the Board may have their respective

alternates who shall be the officials next in rank to them and whose

acts shall be considered the acts of their principals with the right to

receive their benefit: Provided, That in the absence of the

Chairman, the Board shall elect a temporary presiding officer.

The General Manager of the Authority who shall be appointed by the

President shall serve on a full-time basis. He must possess managerial

ability and must be a recognized authority on housing and/or related

fields. He shall be the chief executive officer of the Authority and be

entitled to receive a salary to be determined by the Board and approved

by the President.

The Authority shall have an Assistant General

Manager who shall likewise be appointed by the President and shall

receive a salary to be determined in the same manner as that of the

General Manager.

The members of the Board, excluding the General

Manager, may receive per diems per meeting actually attended at such

amount to be fixed by the Board but not to exceed one thousand pesos per

month.

The Board shall meet regularly at least once a month, but

special meetings may be called either by the Chairman or by four

members of the Board as and when necessary. Four members of the Board

shall constitute a quorum and all decisions of the Board shall require

the concurrence of at least four members.

Section 8 Powers and Duties of the Board.

SEC. 8. Powers

and Duties of the Board.—The Board shall have the following powers

and duties:

Formulate, prescribe, and promulgate the implementing rules

and regulations required by this Decree;

Act upon the annual budget and such supplemental budgets of the

Authority submitted by the General Manager: Provided, That the

Board may reduce but may not increase any item proposed by the

General Manager;

Approve the organizational structure of the Authority as well

as its staffing pattern, the salaries of the personnel and their powers

and duties submitted by the General Manager;

Enter into such contract or agreement as may be necessary for

the attainment of the purposes and objectives of this Decree;

Render annual reports to the President and such special

reports as may be requested; and

Exercise all the powers necessary or incidental to the

attainment of the purposes of this Decree.

Section 9

SEC. 9. Duties of the General Manager. The General

Manager, as Chief Executive Officer of the Authority, shall have the

following duties and responsibilities:

To direct and supervise the operations and internal affairs of

the Authority. The General Manager may dele gate certain of his

administrative responsibilities to other officers of the Authority,

subject to the rules and regulations promulgated by the Board;

To prepare the agenda for the meetings of the Board and to

submit for the consideration of the Board such policies and measures as

he may believe necessary to carry out the purposes of this Decree;

To execute, administer and implement the policies and measures

approved by the Board;

Subject to the approval of the Board, to fix the number and

salaries of and appoint, the subordinate officers and personnel of the

Authority and to remove, or otherwise discipline, for cause, any such

officer or employee;

To represent the Authority in all dealings with other

offices, agencies, and instrumentalities of the Government and with all

persons and entities, public or private, domestic or foreign;

To act, in the conduct of the business of the Authority, on

all matters that are not by this Decree specifically reserved to the

Board; and

To exercise such other powers and perform such other duties as

may be vested in him by the Board.

Section 10 Organizational Structure of the Authority.

SEC. 10. Organizational Structure of the Authority.—

The Board shall determine the organizational structure of the Authority

in such manner as would best carry out its powers and functions and

attain the objectives of this Decree.

The General Manager shall,

subject to the approval of the Board, determine and appoint the,

subordinate officers, other personnel, and consultants, if necessary, of

the Authority: Provided, That the regular, professional and

technical personnel of the Authority shall be exempt from the rules and

regulations of the Wage and Position Classification Office and from the

examination and/or eligibility requirement of the Civil Service

Commission. Subject to the approval of the Board, the General Manager

shall likewise determine the rates of allowances, honoraria and such

other additional compensation which the Authority is hereby authorized

to grant to its officers, technical staff and consultants, including the

necessary detailed personnel.

Section 11 Home Financing Commission and National Housing Corporation.

SEC. 11. Home Financing Commission and National

Housing Corporation.—To facilitate the attainment of the objectives

and purposes of this Decree, the National Housing Corporation and the

Home Financing Commission, shall be attached to the National Housing

Authority (NHA) for policy and program coordination.

Section 12 Completed Projects: Management of Disposition.

SEC. 12. Completed Projects: Management of

Disposition.—The Authority shall determine, establish and maintain

the most feasible and effective program for the management or

disposition of specific housing or resettlement projects undertaken by

the Authority. Unless otherwise decided by the Board, completed housing

or resettlement projects shall be managed and administered by the

Authority.

Section 13

SEC. 13. Issuance of Bonds—Subject to the

approval of the Secretary of Finance, after consultation with the

Monetary Board of the Central Bank of the Philippines, the Authority is

hereby authorized to issue bonds and other securities to finance the

implementation of its housing program: Provided, That only so

much of such bonds or securities shall be issued and sold as the annual

project implementation would require: Provided, Further, That no

bonds or securities shall be issued unless eighty per cent (80%) of

those already issued had been sold: Provided, finally, That the

total amount of the bonds or securities issued shall in no case exceed

ten times its paid up capital and surplus.

The Authority, in consultation with the Secretary of Finance

and the Monetary Board, shall prescribe the form, the rate of interest,

and denominations, maturities, negotiability, call or redemption

features and all other terms and conditions of the bonds and securities

to be issued."

In the promotion of the sale of bonds or

securities, the Authority is authorized to adopt the lottery scheme

enunciated under Republic Act Numbered One Thousand as amended.

The bonds and securities issued under this Decree including the income

thereof shall be exempt from all kinds of taxes and from attachment,

execution and seizure which facts shall be stated on the face thereof.

A sinking fund shall be established by the Authority in such manner

that the total annual 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 at

maturity the bonds or securities issued pursuant to this Decree. The

sinking fund shall be under the custody and administration of the

Central Bank of the Philippines which may invest the same in Central

Bank Certificates of Indebtedness and similar financing schemes subject

to the approval of the Authority in consultation with the Secretary of

Finance: Provided, That the proceeds from such scheme shall

accrue to the Authority.

Section 14 Guarantee by the Government.

SEC. 14. Guarantee by the Government.—The

Republic of the Philippines hereby guarantees the payment of both the

principal and the interest of the bonds, debentures, collaterals, notes

or such other obligations issued or incurred by the Authority by virtue

of this Decree, and shall pay such principal and interest in case the

Authority fails to do so. In such event, the Republic of the Philippines

shall succeed to all the rights of the holders of such bonds,

debentures, collaterals, notes or other instruments to the extent of the

payment made, unless the sum so paid by the Republic of the Philippines

shall be refunded by the Authority within a reasonable time.

Section 15 Other SSS and GSIS Participation.

SEC. 15. Other SSS and GSIS Participation.—Notwithstanding

any provision of their respective charters to the contrary, the Social

Security System and the Government Service Insurance System shall absorb

all or part of the bonds or securities issued by the Authority in such

proportion as may be determined by the National Economic and Development

Authority and approved by the President.

Upon the effectivity of this Decree, the Social Security

System and the Government Service Insurance System shall cease

undertaking mass or group housing, either by itself, joint venture,

turn-key basis, or any other arrangement and, their lending operations

for housing purposes shall be limited to direct lending to individual

members only for their respective homes.

Section 16 Gratuity.

SEC. 16. Gratuity.—Any personnel of the dissolved

agencies who is not appointed to a position in the Authority for

reasons not attributable to his conduct, or who elects to discontinue

his service, shall be paid the money value of his accumulated vacation

and sick leave and, if qualified to retire under existing laws, his

retirement gratuities. Otherwise, he shall be paid on month salary for

every year of service in the government. For this purpose, the sum of

ten million pesos in hereby appropriated out of the funds in the

National Treasury not otherwise appropriated exclusively for the payment

of the aforesaid separation and retirement gratuities and accumulated

vacation and sick leaves.

Section 17 Auditor.

SEC. 17. Auditor.—The Commission on Audit shall

recommend to the Board a representative who shall be the Auditor of the

Authority, and such personnel as may be necessary to assist said

representative in the performance of his duties. The salaries of the

Auditor and his staff shall be fixed by the Board and paid for by the

Authority.

Section 18 Rules and Regulations.

SEC. 18. Rules and Regulations.—The Board shall

promulgate the requisite rule and regulations for the effective

implementation of this Decree and revise or amend the same as may be

necessary.

Section 19

SEC. 19. Reports—The Authority shall submit an

annual report to the President indicating, among others, the housing

program being implemented, the stage of implementation, and the

financial position of the Authority. It shall likewise submit such

periodic or other reports as may be required from time to time.

Section 20 Applicability of the Corporation Law.

SEC. 20. Applicability of the Corporation Law.—The

provisions of the Corporation Law, in so far as they are not

inconsistent with the provisions and policies provided in this Decree,

shall be applicable to the Authority.

Section 21 Repealing Clause.

SEC. 21. Repealing Clause.—Any provision of Law,

decree, executive orders, ordinances, rules and regulations

inconsistent herewith are hereby repealed, amended, or modified

accordingly.

Section 22 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 sections or provisions hereof,

which are not affected thereby shall continue in full force and effect.

Section 23 Effectivity.

SEC. 23. Effectivity.—This Decree shall take

effect immediately.

Done in the City of Manila, this 31st day of July, in the year

of Our Lord nineteen hundred and seventy-five.

(Sgd.)

FERDINAND E. MARCOS

President

Republic of the Philippines

By the President:

(Sgd.)

ALEJANDRO MELCHOR

Executive Secretary