Highlights of

Republic Act 11201

“AN ACT CREATING THE DEPARTMENT OF HUMAN SETTLEMENTS AND
URBAN DEVELOPMENT, DEFINING ITS MANDATE, POWERS AND
FUNCTIONS, AND APPROPRIATING FUNDS THEREFOR”

DEPARTMENT OF HUMAN SETTLEMENTS AND URBAN

DEVELOPMENT

As provided by SEC. 4, the Department of Human Settlements and Urban

Development is the consolidation of the Housing and Urban Development
Council (HUDCC) and the Housing and Land Use Regulatory Board
(HLURB).

It is now the primary national government entity responsible for the

management of housing, human settlement and urban development and is
the “the sole and main planning and policy-making, regulatory, program
coordination and performance monitoring entity for all housing, human
settlement and urban development concerns, primarily focusing on the
access to and affordability of basic needs.”

As provided by SEC. 5., The Department shall be in charge of (i) Policy

Development, Coordination, Monitoring and Evaluation on matters relating
to national housing and urban development, (ii) Environmental, Land Use,
and Urban Planning and Development, (iii) Housing and Real Estate
Development Regulation, and (iv) Homeowners Association and Community
Development.

HUMAN SETTLEMENTS ADJUDICATION COMMISSION (HSAC)

As provided by SEC. 13, THE Housing and Land Use Regulatory Board
(HLURB) is reconstituted as the Human Settlements Adjudication
Commission (HSAC) wherein the adjudicatory functions of the former have
been transferred to the latter.

JURISDICTION OF THE HSAC

SEC. 15. Jurisdiction of the Commission. – The Commission shall have the
exclusive appellate jurisdiction over:

(a) All cases decided by the Regional Adjudicators; and

(b) Appeals from the decisions of local and regional planning and zoning
bodies.

The decision of the Commission shall be final and executory after fifteen
(15) calendar days from receipt thereof by the parties.

POWERS OF THE HSAC

SEC. 17. Powers and Authorities of the Commission. - The Commission

shall have the power and authority:

(a) To promulgate rules and regulations governing the hearing and

disposition of cases before it and its Adjudicators, as those necessary to
carry out its functions;

(b) To administer oaths, summon the parties to a controversy, issue

subpoenas requiring the attendance and testimony of witnesses or the
production of such books, papers, contracts, records, statements of
accounts, agreements, and others as may be material to a just
determination of the case;

(c) To hold any person in contempt directly or indirectly and impose

appropriate penalties therefore in accordance with law

Any person committing any act of misbehavior in the

presence of or so near any member of the Commission or any
Adjudicator as to obstruct or interrupt the proceedings before
the same, including disrespect toward said officials, offensive
acts toward others, or refusal to be sworn, or to answer as
a witness or to subscribe an affidavit or deposition when
lawfully required to do so, may be summarily adjudged guilty
of direct contempt by said officials and shall be punished by
a fine not exceeding Five thousand pesos (P5,000.00) or
imprisonment not exceeding five (5) days, or both if it be
committed against the Commission or any member thereof
and, if the offense is committed against an Adjudicator, it
shall be punishable by a fine not exceeding One thousand pesos
(P1,000.00) or imprisonment not exceeding one (1) day, or both.

The person adjudged in direct contempt by the

Adjudicator may appeal to the Commission and the execution
of the judgment shall be suspended pending the resolution
of the appeal upon the filing by such person of a bond on
condition that he/she will abide by and perform the judgment
of the Commission should the appeal be decided against
him/her. Judgment of the Commission on direct contempt is
immediately executory and unappealable. Indirect contempt
shall be dealt with by the Commission or Adjudicator in
the manner prescribed under Rule 71 of the Revised Rules of
Court (ROC).

(d) To enjoin or restrain, after due notice and hearing

any actual or threatened commission of any or all prohibited
or unlawful acts or to require the performance of a particular
act in any dispute within its jurisdiction which, if not
restrained or performed forthwith, may cause grave or
irreparable damage to any party or render ineffectual any
decision in favor of such party. In no case shall a temporary
or permanent injunction be issued except after a finding of
fact by the Commission, to the effect that:

(1) Prohibited or unlawful acts have been threatened and

will be committed and will be continued unless restrained, but
no injunction or temporary restraining order shall be issued
on account of any threat, prohibited or unlawful act, except
against the person or persons, association or organization
making the threat or committing the prohibited or unlawful act or actually
authorizing or ratifying the same after actual knowledge thereof;

(2) Substantial and irreparable injury to complainant's property will follow;

(3) As to each item of relief to be granted, greater injury will be inflicted

upon complainant by the denial of relief than will be inflicted upon
defendants by the granting of relief;

(4) Complainant has no adequate remedy at law; and

(5) Public officers charged with the duty to protect complainant's property
are unable or unwilling to furnish adequate protection

(e) To exercise such other powers as are implied necessary, or incidental to

carry out the express powers granted to the Commission.

REGIONAL ADJUDICATION BRANCH

SEC. 13. (2) (b) provides that “There shall be as many Regional Arbitration
Branches as there are Regional Offices of the Department.”

The Regional Adjudicator replaces the functions of the HLURB Arbiter.

JURISDICTION OF THE REGIONAL ADJUDICATOR

Sec. 16 Jurisdiction of the Regional Adjudicators. – The Regional

Adjudicators shall exercise original and exclusive jurisdiction to hear
and decide cases involving the following:

(a) Cases involving subdivisions, condominiums, memorial parks and real

estate developments;

(1) Actions concerning unsound real estate business practices filed by

buyers or homeowners against the project owner or developer, which
cause prejudice to the buyers or committed with bad faith and disregard of
the buyers' rights;
(2) Claims for refund, and other claims filed by subdivision lot or
condominium unit buyer against the project owner, developer, dealer,
broker or salesman: Provided, That when the cause of action arises from
the buyer's rights under Section 23 of Presidential Decree No. 957 and the
purchase price of the property is paid through a housing loan from a bank
or other financing institutions, the latter shall be impleaded as necessary
party;

(3) Cases involving specific performance or contractual and statutory

obligations arising from the sale of the lot or unit and development of the
subdivision or condominium project;

(4) Disputes involving the open spaces or common areas and their use filed
by the project owner or developer or the duly registered HOA, including
the eviction of informal settlers therein, in accordance with the
requirements of law, and the rules and regulations promulgated by duly
constituted authorities;

(5) Suits to declare subdivision, condominium or other real estate

developments within the regulatory jurisdiction of the Department as
abandoned, as defined under Section 3 of this Act for the purpose of
Section 35 of Presidential Decree No. 957;

(6) Disputes involving easements within or among subdivision projects; and

(7) Actions to annul mortgages executed in violation of Section 18 of

Presidential Decree No. 957 filed by a subdivision lot or condominium unit
buyer against the project owner and/or developer and the mortgagee.

(b) Cases involving Homeowners Associations:

(1) Controversies involving the registration and regulation of HOAs;

(2) Intra-association disputes or controversies arising out of the relations

between and among members of HOAs; between any or all of them and
the HOA of which they are members;
(3) Inter-association disputes or controversies arising out of the relations
between and among two (2) or more HOAs between and among
federations and other umbrella organizations, on matters pertaining to the
exercise of their rights, duties and functions; and

(4) Disputes between such HOA and the State, insofar as it concerns their
individual franchise or right to exist and those which are intrinsically
connected with the regulation of HOAs or dealing with the internal affairs
of such entity.

(c) Disputes involving the implementation of Section 18 of Republic Act No.

7279, as amended, and its Implementing Rules and Regulations.

(d) Disputes or controversies involving laws and regulations being

implemented by the Department except those cases falling within the
jurisdiction of other judicial or quasi-judicial body.

APPEAL
SEC. 18. Appeals.-Decisions, awards or orders of the Regional Adjudicators
shall be final and executory unless appealed to the Commission within
fifteen (15) calendar days from receipt of such decisions, awards or orders.

The decision of the Commission upon any disputed matter may be brought
upon to the Court of Appeals in accordance with Rule 43 of the Rules of
Court.

EXECUTION
SEC. 19. Execution of Decisions, Orders or Awards. - The Commission or
any Regional Adjudicator may, motu proprio or on motion of any interested
party and under such rules as may be duly promulgated, issue a writ of
execution on an order, award or judgment within five (5) years from the
date it becomes final and executory, and by independent action for the
enforcement of the order, award or decision filed with the Regional
Adjudication Branch which issued the order, award or decision.

The Commission shall appoint a Sheriff or such number of Sheriffs, in

accordance with the provisions of the civil service laws, rules and
regulations, who shall be responsible for the service and execution of all
writs, summonses, and orders and other processes of the commission.

The commission may designate special sheriffs and take any measure
under existing laws to ensure compliance with their decisions. orders or
awards.

SEC. 20. Criminal Prosecution. – The criminal prosecution for violation of

housing laws and regulations shall be instituted before criminal courts
having appropriate jurisdiction.

NATIONAL HUMAN SETTLEMENTS BOARD

SEC. 21 Creation of a National Human Settlements Board. – The powers

and functions of the attached agencies with respect to policy and program
development shall be exercised by a single Board of Trustees, known as
the National Human Settlements Board, hereinafter referred to as the
Board, with the Secretary of the Department as Chairperson and the
following as members:

(a) The Director General of NEDA or his/her designated Deputy Secretary

General;

(b) The Secretary of Finance or his/her duly designated Undersecretary;

(c) The secretary of Budget and Management or his/her duly designated

Undersecretary;

(d) The Secretary of Department of Public Works and Highways or his/her

duly designated Undersecretary;

(e) The Secretary of Interior and Local Government or his/her duly

designated Undersecretary; and

(f) the Head of each attached agency of the Department.

Provided, That the Home Development Mutual Fund’s corporate powers
and functions shall continue to be exercised by its own Board of Trustees,
as provided for under Republic Act No. 9679.

ATTACHED AGENCIES

Under SEC. 22., the attached agencies are the:

National Housing Authority (NHA);

National Home Mortgage Finance Corporation (NHMFC);
Home Development Mutual Fund (HDMF); and
Social Housing Finance Corporation (SHFC)

These agencies shall to continue to function according to existing laws and

their respective Charters.

The Department shall exercise administrative supervision over the said

agencies.

HOUSING ONE-STOP PROCESSING CENTERS

SEC. 23. provides that “The Department shall establish HOPCs in the
regions, which will centralize the processing and issuance of all required
housing-related permits, clearances and licenses in accordance with
Executive Order No. 45, series of 2001, entitled “Prescribing Time Periods
for Issuance of Housing Related Certifications, Clearances and Permits, and
Imposing Sanctions for Failure to Observe the Same”: Provided, That for
the foregoing purpose, the respective ceilings for socialized, low
cost/economic and middle-income housing shall be jointly determined by
the Department and NEDA: Provided, further, That at any time, but not
more than once every two (2) years, such ceilings may be reviewed or
revised to conform to prevailing economic conditions.
All agencies involved in the issuance if said permits, clearances and
licenses shall be represented in the HOPC and shall assign to HOPC
regional centers personnel who shall be sufficiently authorized to process
and issue the same.”
SEC. 24. Identification and Designation of Lands for Housing and Urban
and Rural Development. – For the purpose of designating lands for housing
and urban rural development, the Department of Human Settlements and
Urban Development (DHSUD), the Department of Environment and Natural
Resources (DENR), the Department of Agrarian Reform (DAR), the
Department of Agriculture (DA), the Department of Interior and Local
Government (DILG), and the Land Registration Authority (LRA) shall, within
one hundred eighty (180) days from the effectivity of this Act, jointly
identify government lands suitable for housing and rural development:
Provided, That all government lands which have been idle for more than
ten (10) years, except lands owned by the GOCCs and government
financial institutions engaged in shelter financing as part of its fiduciary
obligation to its members and/or are taken possession of in their ordinary
conduct of business, are hereby prioritized for housing and urban
development purposes: Provided, further, that the lands exempted from
conversion under existing laws shall be excluded from the coverage of this
section: Provided, finally, that the national lands identified under this
section shall be transferred to or administered by the Department, subject
to the approval of the President.

TRANSITION PERIOD

SEC. 26. – All transfer of functions, assets, funds, personnel, equipment,

properties, transactions and personnel in the affected national government
agencies and the formulation and implementation of the internal organic
structures, staffing patterns, operations systems, and revised budgets of
the Department and the Commission, shall be completed within six (6)
months from the effectivity of this Act, during which existing personnel
shall continue to assume their posts in holdover capacities until new
appointments are issued. Accordingly, all applications for permits and
licenses, and cases pending with the HLURB upon effectivity of this Act and
filed during the transition period shall continue to be acted upon by the
incumbents until the rules and regulations as provided under this Act shall
have been in force.