AN ACT CREATING THE QUEZON CITY DEVELOPMENT AUTHORITY (QCDA), DEFINING ITS POWERS AND FUNCTIONS, PROVIDING FOR ITS ORGANIZATIONAL STRUCTURE AND CAPITALIZATION

SECTION 1. Short Title. – This Act
shall be known as the “Charter of the Quezon City Development
Authority”.

SEC. 2. Declaration of Policy. – The
State recognizes the
vital role of government-owned or -controlled corporations (GOCCs) in
social and economic development. Thus, it is hereby declared the policy
of the State to authorize the creation of GOCCs that may be used to
implement certain programs of local government units (LGUs) without
violating their autonomy. The GOCCs may also assist LGUs in providing
their constituents access to socialized housing, health, education and
the other basic services. Towards this end, the State shall allow LGUs,
with their available resources, to venture with GOCCs to accomplish the
purpose of this Act.

SEC. 3. Definition of Terms. – As used
in this Act:

(a) Areas for priority development
refer to those areas declared as such under existing
statutes, ordinances, and pertinent executive issuances.

(b) Blighted urban communities refer to
the areas where
the structures are dilapidated, obsolete and unsanitary, tending to
depreciate the value of the land and prevent normal development and use
of the area.

(c) Consultation refers to the
constitutionally mandated
process whereby the public, on their own or through people’s
organizations, is provided an opportunity to be heard and to participate
in the decision-making process on matters involving the protection and
promotion of their legitimate collective interest, which shall include
appropriate documentation and feedback mechanisms.

(d) Idle lands refer to nonagricultural
lands in urban
and urbanized areas on which no improvements, as herein defined, have
been made by the owner, as certified by the city assessor.

(e) Improvements refer to all types of
buildings and
residential units, walls, fences, structures and constructions of all
kinds of a fixed character or which are adhered to the soil but shall
not include trees, plants and growing fruits except for urban community
vegetable and fruit gardens maintained by the landowner, an existing
homeowner, a neighborhood association, the barangay and the landowner’s
authorized representative.

(f) Marginal and low-income families
refer to individuals
or families residing in urban and urbanized areas whose income or
combined household income falls within the poverty threshold as defined
by the National Economic and Development Authority and who do not own
any housing facility or home lot. These shall include those who live in
makeshift dwelling units and do not enjoy security of tenure.

(g) Monitoring refers to the
collection, analysis,
reporting and use of information about the progress of resettlement, and
focuses on physical and financial targets and delivery of entitlements
to people.

(h) On-site development refers to the
process of
upgrading and rehabilitation of blighted urban areas with a view of
minimizing displacement of dwellers in said areas, and with provisions
for basic services.

(i) Professional squatters refer to
individuals or groups
who occupy lands without the expressed consent of the landowner and who
have sufficient income for legitimate housing. The term also applies to
persons who were previously awarded home lots or housing units by the
government but who sold, leased or transferred the same to settle
illegally in the same place or in another urban area and
non-bonafide occupants
and intruders of land reserved for socialized housing. The term shall
not apply to individuals or groups who simply rent land and housing from
professional squatters or squatting syndicates.

(j) Resettlement areas refer to areas
identified by the
local government unit which shall be used for the relocation of the
underprivileged and homeless families.

(k) Socialized housing refers to the
housing programs and
projects covering real properties with or without existing houses
undertaken by the government or the private sector for underprivileged
and homeless citizens which shall include sites and services
development, long term financing, liberalized terms on interest
payments, and such other benefits in accordance with the provisions of
Republic Act No. 7279, otherwise known as the “Urban Development and
Housing Act of 1992″.

SEC. 4. Creation. – There is hereby
created a
government-owned or -controlled corporation to be known as the Quezon
City Development Authority (QCDA), which shall have its principal office
in Quezon City.

The QCDA shall be governed by the provisions of Republic Act
No.
10149, otherwise known as the “GOCC Governance Act of 2011″, and be
subject to the regulatory jurisdiction of the Governance Commission for
GOCCs (GCG).

SEC. 5. Objectives. – The QCDA shall
have the following objectives:

(a) To provide adequate and affordable housing to marginal
and low-income families in Quezon City;

(b) To encourage the participation of the private sector in
housing ventures and urban renewal;

(c) To promote greening and development of vacant, blighted
and
underutilized lands in Quezon City owned by the local government; and

(d) To provide to the constituency of Quezon City projects
that
will improve their quality of life, such as affordable means and schemes
of transportation, energy, telecommunication, information technology
and manufacturing.

SEC. 6. Socialized Housing Development as Primary
Mandate. –
The QCDA shall maintain as its primary focus the development of
socialized housing and urban renewal to be accomplished in any of the
following ways:

(a) Development of new settlement areas in the following
order of priority: on-site, near site, in-city, and near city;

(b) Upgrading of blighted areas or renewal of areas for
priority
development, environmental improvement and resettlement program; and

(c) Relocation of urban residents, including informal
settlers who
are involuntarily displaced due to the housing and urban renewal
program.

For this purpose, the QCDA shall be required to develop an
area
for socialized housing equivalent to at least sixty percent (60%) of its
total landholding.

SEC. 7. Capitalization and Funding. –
The QCDA shall have
an authorized capital stock of Two billion pesos (P2,000,000,000.00)
divided into two billion (2,000,000,000) shares having a par value of
One peso (P1.00) each, which may be available for subscription by the
Quezon City government.

SEC. 8. Powers and Functions of the QCDA. –
The QCDA
shall have the following powers and functions in accordance with the
established urban development and housing plan prepared by the Quezon
City government:

(a) Develop and implement a comprehensive and integrated
urban renewal program for Quezon City;

(b) Promote urban housing communities development in Quezon
City
with due consideration to ecological balance and geohazard assessment;

(c) Acquire, develop, and manage lands and buildings of
every kind
and character whether belonging to or to be acquired by the QCDA;

(d) Invest its funds as it may deem proper, in bonds and
securities issued and guaranteed by the city government or the national
government;

(e) Promote housing development by providing technical
assistance to any related development project;

(f) Receive donations, grants and bequests for the
resettlement of displaced families and development of socialized
housing;

(g) Enter into joint ventures and partnerships to allow
investments;

(h) Review for possible implementation the recommendations
of the Quezon City Local Housing Board;

(i) Plan, implement and monitor urban renewal programs, in
coordination with the Environmental Management Bureau of the Department
of Environment and Natural Resources, to protect and conserve unique,
vital and sensitive ecosystems, watershed areas, scenic landscapes,
cultural sites and provide resources and funding support for that
purpose;

(j) Develop, improve, administer, subdivide or lease any
lands,
buildings, estates and other forms of real property acquired by the
QCDA;

(k) Invest in various proprietary ventures to earn income to
pursue its primary objective of urban renewal;

(l) Exercise all necessary corporate powers under Batas
Pambansa Blg. 68, or the Corporation Code of the Philippines; and

(m) Perform such other acts necessary to effect the policies
and achieve the objectives herein declared.

SEC. 9. Board of Directors. – The QCDA
shall be governed
by a board of directors, hereinafter referred to as the “Board”, which
shall be composed of nine (9) members, who shall be the following:

(a) The Quezon City Administrator as Chairperson;

(b) The head of the Quezon City Department of Housing;

(c) The head of the Quezon City Planning Department;

(d) One (1) representative from the Quezon City Local
Housing
Board who stall not be an elected public official, to be nominated by
tire Local Housing Board members themselves;

(e) Four (4) representatives from the private sector, all
bona fide residents of Quezon City; and

(f) One (1) representative from the City Development Council
who
shall not be an elected public official and who shall be nominated by
the officers of the City Development Council.

Appointive members of the Board must be qualified by the Fit
and
Proper Rule as determined by the GCG in accordance with the provisions
of Republic Act No. 10149. They shall be appointed by the President of
the Philippines from a shortlist submitted by the GCG in accordance with
the provisions of Republic Act No. 10149: Provided,
That in
all Board positions, the GCG shall give utmost consideration to the
nominees recommended by the City Mayor and the City Council of Quezon
City, recommending at least three (3) names for every vacant position.

The members of the Board may receive per diems,
allowances, and incentives in accordance with the guidelines
promulgated by the GCG.

The Board shall meet regularly at least once a month, but
special
meetings may be called either by the Chairperson or by five (5) members
of the Board, when necessary. Five (5) members of the Board shall
constitute a quorum and any approval of business shall require the
concurrence of at least five (5) members.

The Board may hire from time to time up to a maximum of two
(2)
consultants from the private sector who are known professionals in the
urban renewal and housing industry, with proven track record. They shall
be entitled to receive honoraria to be determined
by the Board.

SEC. 10. Powers and Duties of the Board. –
The Board shall have the following powers and duties:

(a) Formulate policies, develop programs and promulgate
rules and
regulations to carry out the powers and functions of the QCDA;

(b) Act upon the annual budget and such supplemental budgets
of the QCDA submitted by the General Manager: Provided,
That the Board may reduce but may not increase any item
proposed by the General Manager;

(c) Approve the organizational structure of the QCDA as well
as
its staffing pattern, the salaries of the personnel and their powers and
duties as submitted by the General Manager: Provided,
That the
QCDA shall be covered by Republic Act No. 6758, as amended by Joint
Resolution Nos. 1, series of 1994, and 4, series of 2009, the
Compensation and Position Classification System for GOCCs under Republic
Act No. 10149, as approved by the President of the Philippines:
Provided, further, That prior approval from the GCG
shall be obtained therefor;

(d) Formulate and enforce general and specific policies for
housing development, resettlement and urban renewal and other policies
that the QCDA may require for the effective discharge of its duties
which are not contrary to existing laws;

(e) Order, authorize, direct and coordinate with offices and
task
forces of the Quezon City government in areas important to the
implementation of its projects;

(f) Enter into contracts or agreements as may be necessary
for the
attainment of the objectives of this Act with parties other than
members of the Board, Quezon City officials and employees and their
relatives up to the fourth civil degree of consanguinity or affinity, or
any judicial entity where such persons mentioned have pending cases or
interest;

(g) Acquire by purchase privately owned lands for purposes
of
urban renewal, housing development, resettlement and related services
and facilities: Provided, That the acquisition is
with consent of the City Council through a resolution;

(h) Design, formulate, negotiate, and implement financial or
investment schemes;

(i) Enable private sector assistance and participation in
the
achievement of the goals of the QCDA and in carrying out its operations;

(j) Render annual reports and special reports, as may be
requested, in relation to Section 20 of this Act; and

(k) Enter into and execute memoranda of agreements, joint
ventures, long-term leases and management contracts with private sector
entities, to include real estate developers or construction companies
with dependable repute and proven track record in developing and
managing real estate ventures.

SEC. 11. Duties and Powers of the Chairman of the
Board. – The Chairman shall:

(a) Call and preside at the meetings of the Board and shall
see to
it that the policies, programs, and rules and regulations developed and
promulgated by it are implemented properly;

(b) Present for approval by the Board:

(1) The annual budget of the QCDA;

(2) The rules and regulations needed to carry out the
provisions of this Act and the amendments thereto;

(3) Other matters which he deems necessary or proper for the
effective implementation of this Act; and

(4) The annual report on the activities and finances of the
QCDA, pursuant to Section 20 of this Act; and

(c) Performs such other functions, which the Board may
direct to carry out the provisions of this Act.

SEC. 12. General Manager. – The General
Manager shall be elected by the Board from the appointive members. The
General Manager must possess either:

(a) A career service executive eligibility (CSEE) or career
executive service officer (CESO) eligibility;

(b) A post-graduate degree related to law, management or
public administration; or

(c) A minimum of ten (10) years of management experience and
must be a recognized authority in housing or related field.

The General Manager shall be the Chief Executive Officer of
the
QCDA and shall be entitled to receive a salary in accordance with the
guidelines promulgated by the GCG, and shall serve for a fixed term of
one (1) year, unless sooner removed by the Board for cause.

SEC. 13. Duties and Responsibilities of the
General Manager. – The General Manager, as the Chief
Executive Officer of the QCDA, shall have the following duties and
responsibilities:

(a) Execute, administer and implement the policies and
measures approved by the Board;

(b) Directly supervise the operation and internal affairs of
the
QCDA. The General Manager may delegate certain administrative
responsibilities to other officers subject to the rules and regulations
promulgated by the Board;

(c) Recommend the number and salaries of, appoint the
subordinate
officers and personnel of the QCDA, and remove or otherwise discipline
for cause any officer or employee: Provided, That
the QCDA
shall be covered by Republic Act No. 6758, as amended by Joint
Resolution Nos. 1, series of 1994, and 4, series of 2009, the
Compensation and Position Classification System for GOCCs under Republic
Act No. 10149, as approved by the President of the Philippines:
Provided, further, That prior approval from the GCG
shall be obtained therefor;

(d) Represent the QCDA in all dealings with other offices,
agencies, and instrumentalities of the government and with all persons
and entities, public or private, domestic or foreign; and

(e) Exercise such other powers and perform such other duties
as may be vested by the Board.

SEC. 14. Organizational Structure of the QCDA. –
The
General Manager shall prepare the organizational structure of the QCDA
that would best carry out its powers and functions, and attain the
objectives of this Act and shall present the same to the Board for its
approval.

Subject to approval of the Board, the General Manager s hall
likewise determine the rates of allowances, honoraria
and
other additional compensation, which the QCDA is hereby authorized to
grant its officers, technical staff, consultants and personnel detailed
to it.

In all cases, the QCDA shall be covered by Republic Act No.
6758,
as amended by Joint Resolution Nos. 1, series of 1994, and 4, series of
2009, the Compensation and Position Classification System for GOCCs
under Republic Act No. 10149, as approved by the President of the
Philippines: Provided, That prior approval from the
GCG shall be obtained therefor.

SEC. 15. Inventory of Lands. – Within
three (3) months
from the effectivity of this Act, an inventory of all kinds of lands and
improvements thereon within the territorial jurisdiction of Quezon City
shall be conducted by three (3) reputable independent appraisers as
chosen by the Board. The inventory shall include the following:

(a) Lands owned by the national government in Quezon City;

(b) Lands owned by the Quezon City government;

(c) Unregistered or abandoned and idle lands; and

(d) Other lands which may be of use to the Quezon City
government in pursuit of the objectives of this Act.

In conducting the inventory, the independent appraisers
shall
indicate the type of land use, the degree of land utilization and other
data or information necessary to carry out the purposes of this Act.
They shall submit their report on the appraisal and inventory of lands
to the Board, the Quezon City Mayor and the Quezon City Council.

SEC. 16. Identification of Sites for Socialized
Housing. – After
the inventory, the QCDA, in coordination with the Quezon City Council,
shall identify lands for socialized housing and resettlement areas
suited for the immediate and future needs of marginal and low income
families in Quezon City, taking into consideration the availability of
basic services and facilities, their accessibility and proximity to job
sites and other economic opportunities, and the actual number of
registered beneficiaries.

Lands for socialized housing may be identified from:

(a) Those owned by the Quezon City government;

(b) Alienable lands of the public domain;

(c) Unregistered or abandoned and idle lands;

(d) Those within the declared areas for priority development
Zonal
Improvement Program sites, and Slum Improvement and Resettlement
Program sites which have not yet been acquired;

(e) Donated privately owned lands;

(f) Private lands offered for sale by the owners; and

(g) Any other manner provided for by law.

The QCDA shall give budgetary priority to on-site
development of government lands.

SEC. 17. Completed Projects: Management and
Disposition. –
The QCDA shall determine, establish and maintain the most feasible and
effective program for the management or disposition of specific urban
renewal, housing or resettlement projects. Unless otherwise decided by
the Board, completed housing or resettlement projects of the Quezon City
government shall be managed and administered by the QCDA:
Provided, That the communities and residents have
been fully consulted on such arrangements.

SEC. 18. Eligibility Criteria for Socialized
Housing Program Beneficiaries. – The following shall qualify
for the socialized housing program:

(a) A Filipino citizen;

(b) Members of the marginal and low-income families in
Quezon City;

(c) Those who do not own any real property in the urban
area; and

(d) Those who are not professional squatters or members of
squatting syndicates.

Beneficiaries may also include employees of government
entities
with offices situated in Quezon City whose salaries are not higher than
salary grade 18 or its equivalent as certified by their offices’
respective personnel department: Provided, That
they are not yet beneficiaries of any housing program.

In coordination with the Quezon City Council, the QCDA shall

design a system for the identification and registration of qualified
program beneficiaries in accordance with the objectives of this Act.

SEC. 19. Issuance of Bonds and Power to Borrow. –
The
QCDA may be authorized to issue bonds and other securities and enter
into any form of indebtedness to finance the implementation of its urban
renewal and housing program: Provided, That only
so much of such bonds and securities as the annual project
implementation would require shall be issued and sold:
Provided, further, That no bonds and securities
shall be issued unless eighty percent (80%) of those already issued have
been sold: Provided, furthermore, That
the total amount of the bonds or securities and long-term debts issued
shall in no case exceed twenty (20) times the paid-up capital and
surplus of the QCDA: Provided, finally, That in no
instance shall the sovereign guarantee of the Republic of the
Philippines be required or allowed.

The QCDA, in consultation with the Secretary of Finance and
the
Monetary Board, shall prescribe the form, the rate of interest and
denomination, maturities, negotiabilities, call or redemption features
and all other terms and conditions for the bonds and securities to be
issued.

The bonds and securities issued under this Act, including
the
income thereof shall be exempted from all kinds of local taxes and from
attachment, execution and seizure which facts shall be stated on the
face thereof.

SEC. 20. Reports. – The QCDA shall
submit an annual
report to the Office of the President of the Republic of the
Philippines, both Houses of Congress, the Representatives of Quezon
City, the Quezon City Mayor and the Quezon City Council indicating,,
among others, the urban renewal and housing program being implemented,
the stages of implementation and the financial position of the QCDA. It
shall likewise submit such periodic and other reports as may be required
by the GCG, the Quezon City Mayor and the Quezon City Council:

The Quezon City Council shall undertake the internal and
external
monitoring of the housing and urban development of the QCDA to ensure
complete and objective information about the progress of resettlement
and shall also:

(a) Assess whether resettlement objectives have been met and

specifically whether livelihoods and living standards have been restored
or enhanced;

(b) Assess resettlement efficiency, effectiveness, impact
and sustainability; and

(c) Ascertain whether the resettlement entitlements were
appropriate in meeting the resettlement objectives and whether the
resettlement objectives were suited to the conditions.

SEC. 21. Dissolution. – In the event
the QCDA is
dissolved for any reason, all of its properties and other assets
remaining at the time of such dissolution shall revert to the Quezon
City government.

SEC. 22. Applicability of the Corporation Code.
– The
provisions of the Corporation Code, insofar as these are not
inconsistent with the provisions and policies provided in this Act,
shall be applicable and suppletory.

SEC. 23. Separability Clause. – Should
any section or
provision of this Act be declared by the courts to be unconstitutional,
the validity of this Act or any part hereof other than the part so
declared to be unconstitutional or invalid shall not be affected. Any
portion hereof not affected by such declaration shall remain in full
force and effect.

SEC. 24. Repealing Clause. – All laws,
ordinances,
executive orders, administrative orders, rules, regulations, decrees.-
and other issuances or parts thereof which are inconsistent with the
provisions of this Act are hereby revoked, repealed or modified
accordingly.

SEC. 25. Effectivity. – This Act shall
take effect fifteen (15) days after its publication in the
Official Gazette or in a newspaper of general
circulation in the Philippines.

Approved,

This Act which is a consolidation of Senate Bill No. 2161
and
House Bill No. 3899 was finally passed by the Senate and the House of
Representatives on September 22, 2014 and September 23, 2014,
respectively.

Approved:

BENIGNO S. AQUINO
III
President of the Philippines