REORGANIZING THE HUMAN SETTLEMENTS REGULATORY COMMISSION

WHEREAS, it is the national
policy to promote innovative land development and land use control measures as
a technology for building communities;

WHEREAS, it is necessary to
provide full support to the government’s policies and programs on Human
Settlements through effective land use and development control measures by
strengthening the regulatory arm of the Ministry of Human Settlements;

WHEREAS, under Presidential
Decree No. 1416, the President is empowered to undertake such organizational
and related improvements as may be appropriate in the Light of Changing
Circumstances and New Developments;

NOW, THEREFORE, I, FERDINAND E.
MARCOS, President of the Philippines, by virtue of the powers vested in me by
the Constitution and the Authority vested in me by the Presidential Decree No.
1416, do hereby order and ordain:

ARTICLE I. TITLE

Section 1. Title – This
shall be known as the Charter of the Human Settlements Regulatory Commission.

ARTICLE II.
DECLARATION OF POLICIES

Section 2. Declaration of
Policies and Objectives. It is hereby declared to be the policy of the
state to implement an integrated program of land use control for the entire country in accordance with the following
objectives:

a. To foster the growth and
renewal of our Urban and Rural communities in an integrative manner that
promotes optimum land use, adequate shelter, and environmental protection/all
these/towards the development of man as a total human being.

b. To bring about the optimum
use of land as a national resource for public welfare rather than as a
commodity of trade subject to price speculation and indiscriminate use.

c. To enforce, implement,
coordinate, streamline, improve and optimize land use policies and regulations
on human settlements, including the implementation and enforcement of the
regulatory aspect of the Urban Land Reform Program, the Subdivision and
Condominium Buyer’s Protective Decree, Land Value and Building Rental
regulations and other related laws.

ARTICLE III.
DEFINITIONS

Section 3. Definitions. –
For the purpose of this Order and the rules and regulations promulgated
thereunder, the terms of words used herein shall, unless the context indicates
otherwise, mean or be understood to mean as follows:

a) “Commission” means the Human
Settlements Regulatory Commission.

b) “Commission proper” refers to
the Commissioners of the Commission appointed by the President and its
ex-officio members provided for in section 6 of this Order.

c) “Function” includes powers
and duties.

ARTICLE IV.
ESTABLISHMENT, CONSTITUTION, POWERS, DUTIES

Section 4. Creation of the
Human Settlements Regulatory Commission.

a) There is hereby established a
Human Settlements Regulatory Commission, hereinafter referred to as the
Commission, with powers and attributes of a quasi-judicial body which shall be
attached to the Ministry of Human Settlements.

Section 5. Powers and Duties
of the Commission.

a) Promulgate zoning and other
land use control standards and guidelines which shall govern land use plans and
zoning ordinances of local governments; the zoning components of civil works
and infrastructure projects of the national, regional and local governments;
subdivision or estate development projects of both the public and private
sectors; and urban renewal plans, programs and projects: provided that the
zoning and other land use control standards and guidelines to be promulgated
hereunder shall respect the classification of public lands for forest purposes
as certified by the Ministry of Natural Resources.

b) Review, evaluate and approve
or disapprove comprehensive land use development plans and zoning ordinances of
local government; and the zoning component of civil works and infrastructure
projects of national, regional and local governments; subdivisions,
condominiums or estate development projects including industrial estates, of
both the public and private sectors and urban renewal plans, programs and
projects: Provided, that the Land Use Development Plans and Zoning Ordinances
of Local Governments herein subject to review, evaluation and approval of the
commission shall respect the classification of public lands for forest purposes
as certified by the Ministry of Natural Resources: Provided, further, that the
classification of specific alienable and disposable lands by the Bureau of
Lands shall be in accordance with the relevant zoning ordinance of Local
government where it exists: and provided, finally, that in cities and municipalities
where there are as yet no zoning ordinances, the Bureau of Lands may dispose of
specific alienable and disposable lands in accordance with its own
classification scheme subject to the condition that the classification of these
lands may be subsequently changed by the local governments in accordance with
their particular zoning ordinances which may be promulgated later.

c) Issue rules and regulations
to enforce the land use policies and human settlements as provided for in
Presidential Decrees No. 399, 815, 933, 957, 1216, 1344, 1396, 1517, Letter of
Instructions No. 713, 729, 833, 935 and other related laws regulating the use
of land including the regulatory aspects of the Urban Land Reform Act and all
decrees relating to regulation of the value of land and improvements, and their
rental.

d) Ensure compliance with
policies, plans, standards and guidelines on human settlements promulgated in
paragraph (a) of this section.

e) Conduct public hearings
relating to its functions.

f) Act as the appellate body on decisions and actions of local and regional planning and
zoning bodies and of the deputized officials of the Commission, on matters
arising from the performance of these functions.

g) Promote, encourage,
coordinate and assist private enterprises and government agencies and
instrumentalities in planning, developing and coordinating human settlements
plans and programs by furnishing legal, technical and professional assistance.

h) Develop and implement
prototype projects supportive of its regulatory functions either by itself or
as part of an inter-agency group or by contract with such appropriate public or
private entities as it may deem proper.

i) Call on any government
employee or any department, bureau, office, agency or instrumentality of the government
or private entities and organizations for cooperation and assistance in the
exercise of its functions.

j) Adopt rules of procedures for
the conduct of its business.

k) Staff its organization with
appropriate and qualified personnel in accordance with that is deemed proper or
necessary to achieve the objectives of the Commission.

l) Make or enter into contracts of any kind of nature to enable it to
discharge its functions under this Order.

m) Acquire, purchase, own, lease, mortgage, sell or otherwise dispose
of any land, or any improvements thereon, or property of any kind, movable and
immovable, exercise the right of eminent domain by expropriating the land
improvements thereon, which in the opinion of the Commission, are vital and
necessary to develop and implement prototype projects supportive of its
regulatory functions.

n) Charge and collect fees in the performance of its functions.

o) Impose administrative fine not
exceeding Twenty Thousand Pesos (P20,000.00) for
any violation of its charter and of its rules and regulations.

p) Issue orders after conducting the appropriate investigation for
the cessation or closure of any use or activity and to issue orders to vacate
or demolish any building or structure that it determines to have violated or failed
to comply with any of the laws, presidential decrees, letters of instructions,
executive orders and other presidential issuances and directives being
implemented by it, either on its own motion or
upon complaint of any interested party.

q) Cite and declare any person, entity or enterprise in contempt of
the Commission in the following case:

1) Whenever any person, entity
or enterprise commits any disorderly or disrespectful conduct before the
Commission or in the presence of its members or authorized representatives
actually engaged in the exercise of their official functions or during the
conduct of any hearing or official inquiry by the said Commission, at the place
or near the premises where such hearing or proceeding is being conducted which
obstruct, distract, interfere or in any other way disturb, the performance of
such functions or the conduct of such hearing or proceeding;

2) Whenever any person,
enterprise or entity fails or refuses to comply with or obey without
justifiable reason, any lawful order, decision, writ or process of the
Commission. In connection therewith, it may in cases falling within the first
paragraph hereof, summarily impose a fine of an amount not exceeding P2,000.00
and order the confinement of the violator for a period that shall not exceed
the duration of the hearing or proceeding or the performance of such functions,
and in cases falling within the second paragraph, hereof, it may, in addition
to the administrative fine abovementioned, impose a fine of P500.00 for each day
that the violation or failure or refusal to comply continues, and order the
confinement of the offender until the order or decision shall have been
complied with;

In case the offender is a
partnership, corporation or association or enterprise, the above fine shall be
imposed on the assets of such entity and the president, managing partner or
chief executive officer shall be ordered confined.

r) Perform such other functions and activities which are necessary
for the effective accomplishment of the abovementioned
functions.

No injunction or restraining
order shall lie against the Commission upon the ex parte motion or petition
filed by any person or entity in the exercise by the Commission of its
regulatory functions in support of the implementation of the Urban Land Reform
Program as declared in Proclamation Nos. 1893 and 1967 and of other programs or
projects as may be declared by the president as national
priority.

Decisions of the Commission
shall be appealable to the President of the Philippines whose decision shall be
final subject only to review by the Supreme Court by certiorari or on questions of law.

Section 6. Commission Proper

a) Composition

The powers of the Commission
shall be vested in a nine-man commission hereinafter referred to as the
Commission Proper which shall consist of the following members:

(i) The Minister of Human
Settlements or in his absence the Deputy Minister, who shall act as Chairman.

(ii) Four full-time
Commissioners to be appointed by the President, one as the chief executive officer,
and three who shall be assigned specific functions by
the Commission Proper;

(iii) The Deputy Minister of
Justice;

(iv) The Deputy Director-General
of the National Economic & Development Authority;

(v) The Deputy Minister of Local
Government and Community Development; and

(vi) The Deputy Minister of
Public Works, as members.

The four full-time Commissioners
and the Deputy Minister of Justice are hereby constituted as the Executive
Committee of the Commission, and said committee shall act for and in behalf of the Commission Proper subject to the
ratification of the latter.

Where a Ministry has more than
one Deputy Minister, the Minister shall designate which Deputy Minister shall
be a member of the Commission.

The Commission Proper shall
maintain its secretary who shall be a lawyer, to be appointed by the Chairman
upon recommendation of the chief executive officer. He shall have the same
rank, salary and privileges as the directors of the Commission.

(b) Qualification and Tenure

Three of the full-time Commissioners
shall be lawyers, while the other full-time Commissioner shall have a
background or experience in planning, management or architecture or related
fields. These Commissioners shall at least have been engaged in the practice of
their respective professions or specialization or employed in an appropriate
office for a period at least five (5) years. All the full-time Commissioners
shall be appointed by the President for a term of six years each: Provided,
however, that in the initial appointments, the chief executive officer shall
have a term of six years, while the three others shall have terms of five
years, four years and two years respectively, as fixed in their respective
appointments.

c) Salary and Privileges

The full-time Commissioners
shall receive such salary and enjoy the privileges in accordance with existing
laws. The ex-officio Commissioners shall be entitled to receive such honoraria
and per diems as may be determined by the Commission Proper in accordance with
existing laws and regulations.

Section 7. Duties and
Responsibilities of the Chief Executive Officer. The Chief Executive
Officer shall have the following duties and responsibilities:

a) To execute and/or administer
the policies and measures approved by the Commission Proper.

b) To appoint and maintain an
adequate technical, legal and administrative staff; subject to the approval of
the Commission Proper after the initial organization of the Commission. The
Commission Proper may delegate this appointing power to
the Chief Executive Officer.

c) To direct, manage and
supervise the day-to-day operations and internal administration of the
Commission in accordance with the policies laid down by the Commission Proper.

d) To establish the internal
organization of the Commission subject to the approval of the Commission
Proper.

e) To prepare the agenda for the
meetings of the Commission Proper.

f) To submit, for the
consideration of the Commission Proper the policies and measures which he
believes necessary to carry out the purposes and provisions of this order.

g) To enter into contracts or
agreements pursuant to policies or guidelines set by the Commission.

h) To represent the Commission
in all dealing with other offices, agencies, and instrumentalities of the
government, persons and entities, public or private, domestic, foreign or
international, unless the chairman provides otherwise;

i) To represent the Commission,
either personally or through counsel, in any legal proceedings or actions;

j) To exercise such other duties
and responsibilities as may be vested in or assigned to him by the Commission
Proper.

Decisions of the Chief Executive
Officer shall be appealable to the Commission Proper.

The Chief Executive Officer may
delegate any of his administrative responsibilities to other officials or
employees of the Commission subject to the approval of the Commission Proper.

ARTICLE VII. GENERAL
PROVISIONS

Section 8. Transfer of
Functions. – The regulatory functions of the National Housing Authority
pursuant to Presidential Decrees No. 957, 1216, 1344 and other related laws are
hereby transferred to the Commission, together with such applicable personnel,
appropriation, records, equipment and property necessary for the enforcement
and implementation of such functions. Among these regulatory functions are: 1)
Regulation of the real estate trade and business; 2) Registration of
subdivision lots and condominium projects; (3) Issuance of license to sell
subdivision lots and condominium units in the registered units; (4) Approval of
performance bond and the suspension of license to sell; (5) Registration of
dealers, brokers and salesmen engaged in the business of selling subdivision
lots or condominium units; (6) Revocation of registration of dealers, brokers
and salesmen; (7) Approval or mortgage on any subdivision lot or condominium
unit made by the owner of developer; (8) Granting of permits for the alteration
of plans and the extension of period for completion of subdivision or
condominium projects; (9) Approval of the conversion to other purposes of roads
and open spaces found within the project which have been donated to the city or
municipality concerned; (10) Regulation of the relationship between lessors and
lessees; and (11) Hear and decide cases on unsound real estate business
practices; claims involving refund filed against project owners, developers,
dealers, brokers or salesmen and cases of specific performance.

Section 9. Income. –
Authority is hereby vested on the Commission to
directly utilize income generated from fees, fines, charges and other
collections in the performance of its functions to defray operating expenses
and provide allowances for its personnel.

Section 10. Professional and
Technical Personnel. – The professional and technical personnel of the
Commission shall be exempt from the wage and position classification of the Office of Compensation and Position
Classification.

Section 11. Administrative
Fines. – The Commission may prescribe and impose fines not exceeding ten
thousand pesos for violations of the provisions of this executive order or of
any rule or regulations thereunder. Fines shall be payable to the Commission
and enforceable through writs of execution in accordance with the provisions of
the rules of court. This
fines shall be in addition to such other administrative sanctions as the
Commission may impose.

Section 12. Penalties. –
Any person who shall violate any of the provisions of this executive order
and/or any rule or regulation that may be issued pursuant to this decree shall,
upon conviction by the appropriate court, be punished by a fine of not more
than twenty thousand (P20,000.00) pesos and/or imprisonment of  prision
correccional: Provided, that in the case of corporations, partnership,
cooperatives or associations, the president, manager or administrator or the
person who has charge of the administration of the business shall be criminally
responsible for any violation of this decree and/or the rules and regulations
promulgated pursuant thereto.

Section 13. Repealing Clause.
– The provisions of Presidential Decree No. 933, P.D. No. 757 and P.D. No. 957
and all other laws, Presidential Decrees, Letter of Implementation and
Executive Order inconsistent herewith are hereby repealed or modified
accordingly.

Section 14. Separability
Clause. – In case this Order or any part thereof is found to be
unconstitutional or invalid for any reason the remainder thereof not affected
by declaration of invalidity shall remain in force
and in effect.

Section 15. Effectivity. – This Executive Order shall
take effect immediately.

Done in the City of Manila, this
7th day of February in the year of our Lord, Nineteen Hundred and Eighty-one.

By the President:

(SGD.) JUAN C. TUVERA
Presidential Executive Assistant