Presidential Decree No. 757 (PD 757) — Creating the National Housing Authority and Dissolving the Existing Housing Agencies, Defining Its Powers and Functions, Providing Funds Therefor and for Other Purposes.
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:
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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
Source: Supreme Court E-Library, Republic of the Philippines. Philippine laws are public documents (works of the government).
