RE-DIRECTING THE FUNCTIONS AND OPERATIONS OF THE HOUSING AND URBAN DEVELOPMENT COORDINATING COUNCIL AND ALL HOUSING AGENCIES

WHEREAS, Executive Order (EO) No. 90 dated 17 December 1986,
identified the government agencies essential for the National Shelter
Program, defined their mandates and created the Housing and Urban
Development Coordinating Council (HUDCC) to coordinate the activities of
the government housing agencies to ensure the accomplishment of the
National Shelter Program;

WHEREAS, for administrative purposes under existing laws, the
President of the Philippines is the head of, and exercises direct
control and supervision over the coordinating, key and support agencies
of the National Shelter Program;

WHEREAS, the President, through the issuance of EO 159 on 12 October
1999, has identified mass housing as the centerpiece program of his
Administration and created the Presidential Commission on Mass Housing
(PCMH) through which he shall personally oversee the mass housing
program of the government;

WHEREAS, there is a need to rationalize the government’s housing
sector to ensure accountability and to establish a reporting system with
clear lines of authority among the housing agencies;

WHEREAS, there is a need to realign the offices under each of the
housing agencies to delineate responsibilities based under the following
functional categories: production, regulation, financing, marketing and
estate management, in accordance with existing laws, rules and
regulations on the same;

WHEREAS, Section 31, Chapter 10, Title III, Book III of EO 292
otherwise known as the Revised Administrative Code of 1987, vests the
President with continuing authority to reorganize his Office subject to
the policy in the Executive Office, and in order to achieve simplicity,
economy and efficiency;

WHEREAS, Section 20, Chapter 7, Title I, Book III of EO 292, empowers
the President to exercise such powers and functions vested in him which
are provided for under existing laws;

WHEREAS, under Section 77 of the General Provisions of Republic Act
(RA) No. 8745 (FY 1999 General Appropriations Act), the President may
direct changes in the organization and key positions in any department,
bureau or agency;

WHEREAS, Section 79 of the General Provisions of RA 8745 mandates the
scaling-down, phase-out or abolition of activities which are no longer
essential in the delivery of public services;

NOW, THEREFORE, I, JOSEPH EJERCITO ESTRADA, President of the Republic
of the Philippines, by virtue of the powers vested in me by law, do
hereby order the following:

SECTION 1. Re-directing the Functions and
Operations of the HUDCC and the offices, agencies and government
corporations under or attached to it. — Consistent with the desire
of the Administration to make housing as its centerpiece program, the
government’s housing sector composed of the HUDCC, the National Home
Mortgage and Finance Corporation (NHMFC), Housing and Land Use
Regulatory Board (HLURB), Home Insurance and Guaranty Corporation
(HIGC), the National Housing Authority (NHA), including the Home
Development Mutual Fund (HDMF), are hereby mandated to maximize their
effectiveness in the provision of housing units and other housing
services.

SECTION 2. Roles and Focus of the Housing Agencies.— Pursuant to above goals, the following shall be the respective roles and focus of the housing agencies:

a. HUDCC . The HUDCC shall primarily be involved in staff
functions. It shall render technical, secretariat and other support
services to the PCMH. Pursuant to this, it shall serve as the lead
agency to assist the President and the PCMH in formulating the national
objectives, policies and strategies for housing and urban development,
and in designing broad strategies for the accomplishment of the
government’s housing objectives.

b. HLURB. HLURB shall continue to ensure rational land use
for the equitable distribution and enjoyment of development benefits. To
effect this, and to sustain a balance in economic development, social
justice and environmental protection, HLURB shall facilitate the
devolution of town plan review functions. Relative to this, it shall
extend comprehensive and productive planning assistance to provinces,
cities and municipalities towards the formulation of Comprehensive Land
Use Plans ( CLUPs).

c. NHA. NHA shall focus on socialized housing. To
accomplish this mandate, NHA shall develop and implement a comprehensive
and integrated housing development and resettlement; fasttrack the
determination and development of government lands suitable for housing;
as well as ensure the sustainability of socialized housing funds by
improving its collection efficiency, among others.

d. HIGC . HIGC shall mobilize all necessary resources to
broaden the capital base for the effective delivery of housing and other
related services, primarily for the low-income earners through a viable
system of credit insurance, mortgage guarantee and securitization.

e. NHMFC . The NHMFC shall re-direct its operations to the
development and provision of a secondary mortgage market to finance
mortgage take and fasttrack the disposition of existing mortgages.

f. HDMF . To enable it to support the PCMH and the new
directions in the housing sector, the HDMF shall focus on the
administration of a nationwide provident fund for the government’s
housing program, formulate other investment strategies relative to
housing as well as improve its collection efficiency.

SECTION 3. Coordination with PCMH/HUDCC. —
All Departments, regular agencies, government-owned and controlled
corporations, and local government units are hereby directed to
coordinate the formulation and implementation of their respective
housing programs with the PCMH/HUDCC.

SECTION 4. Formulation of a Rationalization and Streamlining Plan (RSP).
— In view of the functional and operational re-direction indicated
above, and to effect efficiency and effectiveness in all the activities
of the housing agencies, said agencies shall prepare their respective
Rationalization and Streamlining Plans ( RSPs) which shall be the basis
of the operational and organizational adjustments. The RSPs shall
provide the framework for the following:

a) The clustering, scaling-down or phasing-out of offices and/or
units in ways that will ensure effectiveness and accountability;

b) The establishment of a reporting system with clear lines of
authority between and among the housing agencies, the HUDCC and the
PCMH, as well as among the offices under these agencies;

c) The realignment of offices/units delineating responsibilities
based on the following functional categories: production, regulation,
financing, marketing and estate management in accordance with existing
rules and regulations on the same;

d) The privatization of housing services which can be handled with
more facility, effectivity and efficiency by the private sector; and

e) The rationalization of these agencies’ staffing pattern, ensuring
that the resulting revised staffing complement of said agencies duly
include a rationalization and/or integration plan for the occupants of
said positions.

SECTION 5. Submission of the RSPs to the President . — The RSPs shall be submitted to the President for his approval within 30 days after the effectivity of this Executive Order.

SECTION 6. Redeployment of Personnel. — As
necessary, the existing personnel of the housing agencies shall be
redeployed in accordance with the requirements of the RSP and existing
civil service laws and rules. Such redeployment shall not result in the
diminution in rank and compensation of affected personnel.

SECTION 7. Funding . — The financial
resources required to implement the RSP of the HUDCC and the other
housing agencies shall be taken from funds available in these agencies:
Provided, That the total cost of the approved staffing pattern shall not
exceed the authorized appropriations of these agencies for Personal
Services under RA 8745 (FY 1999 General Appropriations Act) and/or from
available corporate funds.

SECTION 8. Repealing Clause. — All other Executive Orders and Issuances inconsistent with this Executive Order are hereby rescinded or modified accordingly.

SECTION 9. Separability Clause . — If any provision of this Executive Order is held invalid, other provisions not affected thereby shall be valid and binding.

SECTION 10. Effectivity . — This Executive Order shall take effect immediately.

Adopted: 31 Dec. 1999

By the President:

(SGD.) RONALDO B. ZAMORA
           Executive Secretary