Creating The Department Of Human Settlements And The Human Settlement Development Corporation, Appropriation Funds Therefor, And Accordingly Amending Certain Presidential Decrees.
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Creating The Department Of Human Settlements And The Human Settlement Development Corporation, Appropriation Funds Therefor, And Accordingly Amending Certain Presidential Decrees.
Presidential Decree No. 1396
June 2, 1978
Case Overview and Summary
Summary of Presidential Decree No. 1396:Declaration of Policy (Section 1):
- Foster growth and renewal of rural and urban communities in an integrative manner that promotes optimum land use, adequate shelter, environment protection, appropriate technology, and self-reliant communities.
Creation of the Department of Human Settlements (Section 2):
- Establishes the Department of Human Settlements, headed by a Secretary.
- The Secretary shall serve as ex-officio Chairman of the governing boards of corporations, commissions, and authorities under the Department's supervision.
Establishment of the National Capital Region (Section 3):
- Declares and establishes the Metropolitan Manila Region as the National Capital Region.
- Administration of the National Capital Region is vested in the Secretary of Human Settlements.
Powers and Functions of the Department (Section 4):
- Promulgate national standards and guidelines for:
- Human settlements, land use plans, zoning ordinances, civil works, and infrastructure projects (Section 4a)
- Environmental management related to air quality, water quality, land use, and waste management (Section 4b)
- Coordinate a single regulatory system for subdivision, zoning, building, fire, and related regulations (Section 4c)
- Prepare and submit a National multi-year Human Settlements Plan to the National Economic and Development Authority (Section 4d)
- Formulate plans and implement projects for:
- Urban renewal and development, including social and economic housing (Section 4e-i)
- Estate or New Town development within Bagong Lipunan sites (Section 4e-ii)
- Land assembly and real property management (Section 4e-iii)
- Development and installation of waste management systems and appropriate technologies (Section 4e-iv)
- Promulgate rules and regulations for enforcement of standards and guidelines (Section 4f)
- Enter into domestic or foreign contracts (Section 4g)
- Receive and hold assets, grants, or property from foreign and domestic sources (Section 4h)
- Develop and maintain an information system and data bank (Section 4i)
- Determine, fix, and collect fees for effective implementation of laws and regulations (Section 4j)
- Supervise all corporations placed under the Department (Section 4k)
- Call on government agencies and private entities for cooperation and assistance (Section 4l)
- Adopt rules and regulations for transaction of business (Section 4m)
- Perform other necessary activities for effective performance of functions (Section 4n)
Creation of the Human Settlements Development Corporation (Section 5):
- Creates the Human Settlements Development Corporation as a corporate arm of the Department, subject to its supervision.
Purposes of the Corporation (Section 6):
- Development of new, economically viable and environmentally sound communities through innovative urban land mechanisms and self-financing arrangements (Section 6a)
- Renewal of urban communities or parts thereof through housing and other urban improvement projects (Section 6b)
Powers and Functions of the Corporation (Section 7):
- Prepare and implement development and renewal project plans for Bagong Lipunan sites, including the Lungsod Silangan Townsites and the land covered by Proclamation Nos. 1636 and 1637 (Section 7a)
- Administer, operate, and manage estates or New Town projects on Bagong Lipunan sites, either exclusively or in association with other entities (Section 7b)
- Provide or operate utilities services in Bagong Lipunan project sites (Section 7c)
- Acquire, purchase, clear, alter, construct, mortgage, manage, and dispose of lands and buildings; exercise right of pre-emption; engage in real property management (Section 7d)
- Engage in transfer of property rights of land within Bagong Lipunan project sites, except for land acquired through eminent domain (Section 7e)
- Construct, acquire, own, lease, operate, and maintain infrastructure facilities, housing units, factory buildings, utilities, and services necessary for pilot communities (Section 7f)
- Fix, assess, and collect charges, fees, and rentals for use of lands, buildings, and facilities owned by the Corporation; collect fees for permits, licenses, and services (Section 7g)
- Recommend to the President the transfer of foreclosed properties held by government agencies within Bagong Lipunan and prototype project areas (Section 7h)
- Issue bonds or contract loans, credits, or indebtedness, domestic or foreign, with payment guaranteed by the government (Section 7i)
- Prescribe by-laws, adopt a corporate seal, make contracts, lease, own or dispose of property, sue and be sued, and perform necessary acts to carry out purposes (Section 7j)
Governing Body of the Corporation (Section 8):
- The Corporation shall be governed by a 7-member Board of Directors, chaired by the Secretary of Human Settlements.
- The Chief Executive shall be a General Manager appointed by the Board.
Appointment, Control, and Discipline of Personnel (Section 9):
- The Board, upon recommendation of the General Manager, shall appoint officers and employees, fix their compensation and benefits, grant leaves, discipline or remove them, and establish a recruitment and merit system.
Capitalization of the Corporation (Section 10):
- 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 Philippine government.
- An initial release of One Hundred Million Pesos (P100,000,000) is authorized for CY 1978, chargeable against the Special Activities Fund of P.D. 1250.
- Additional capitalization through contributed properties, capitalized surplus, and contributions by government financial institutions is authorized.
Borrowing Power (Section 11):
- With approval from the Secretary of Finance, Monetary Board, and the President, the Corporation may borrow from foreign public or private financial institutions or issue bonds, promissory notes, debentures, certificates of indebtedness, and other debt instruments in foreign currency.
- The Central Bank is authorized to extend loans and advances to the Corporation, subject to terms and conditions prescribed by the Monetary Board.
- Proceeds of borrowings shall not be used for operating expenses.
- Debt instruments shall be exempt from taxes, fully negotiable, and unconditionally guaranteed by the Philippine government.
- A sinking fund is created for payment of bonds, with a standing annual appropriation from the National Treasury.
Profits of the Corporation (Section 12):
- Profits realized from the Corporation's operations shall accrue to and be automatically appropriated as part of its corporate earnings.
Eminent Domain (Section 13):
- The Corporation shall have the power to acquire property required for establishment and expansion of Bagong Lipunan sites and facilities by purchase, negotiation, or expropriation proceedings.
- Properties acquired may be resold or leased to any enterprise, except those acquired through expropriation, which cannot be resold or the title disposed.
Corporations, Authorities, and Agencies Under the Supervision of the Department (Section 14):
- The following corporations, authorities, and agencies are placed under the supervision of the Department:
- 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 appoint additional members to the governing boards to maintain an odd number.
Relationship Between the Department and the Supervised Agencies (Section 15):
- The supervision of the corporations and authorities is for policy and program coordination and integration.
- Their policies, plans, and projects shall conform to the overall policies and plans of the Department.
- A centralized Corporate Planning Office is created in the Department for this purpose.
Regional Offices (Section 16):
- Regional offices shall be established as necessary, in accordance with the regional pattern described in the Integrated Reorganization Plan.
- Each regional office shall be headed by a Regional Director, assisted by Assistant Regional Directors as necessary.
Counterpart Units and Sub-Regional Offices (Section 17):
- The regional offices shall have counterpart units corresponding to the functional areas and responsibilities of the attached corporations and agencies.
- Sub-regional offices shall be established as necessary for accomplishing the Department's objectives and policies.
Conversion of the Human Settlements Commission (Section 18):
- The Human Settlements Commission established under Presidential Decree No. 933 is renamed as the Human Settlements Regulatory Commission and shall be the regulatory arm of the Department.
Appointment of Department Personnel (Section 19):
- The Department shall have an adequate personnel complement, appointed by the Secretary, except those whose appointments are vested in the President.
- The Office of Compensation and Position Classification shall consider professional and technical qualifications in fixing salaries.
Appropriations (Section 20):
- Fifty Million Pesos (P50,000,000) is appropriated from the National Treasury for the operation of the Department and its regional offices, in addition to applicable appropriations transferred from reorganized agencies.
- Subsequent appropriations shall be included in the National General Appropriations Act.
- Regional offices may utilize Local and Regional Development Funds as necessary for project implementation.
Repealing Clause (Section 21):
- All laws, decrees, executive orders, rules, and regulations inconsistent with this Decree are repealed, amended, or modified accordingly.
Separability Clause (Section 22):
- If any section or provision is declared unconstitutional or invalid, the other provisions shall remain in full force and effect.
Effectivity (Section 23):
- This Decree shall take effect immediately.
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Creating The Department Of Human Settlements And The Human Settlement Development Corporation, Appropriation Funds Therefor, And Accordingly Amending Certain Presidential Decrees.
Presidential Decree No. 1396
•June 2, 1978
MALACAÑANGM a n i l a
PRESIDENTIAL DECREE No. 1396
CREATING THE DEPARTMENT OF HUMAN SETTLEMENTS AND THE HUMAN SETTLEMENT DEVELOPMENT CORPORATION, APPROPRIATION 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 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...
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