Housing and real estate laws after Edsa

The historic Edsa People Power Revolution of February 1986, when millions of Filipinos braved tanks to topple the 14-year dictatorship of former President Ferdinand Marcos, brought a lot of changes in the lives of the Filipino people.

Barely a month after, then President Corazon C. Aquino signed on March 26, 1986  Executive Order (EO) No. 10, which placed the National Housing Authority and other housing agencies attached to the Ministry of Human Settlements under the administrative supervision of the Office of the President, while a government-wide review and reorganization took place.

The EO was just the beginning of the many laws that have changed land ownership, land regulations, property regimes and relations, real estate professionalism and other real estate issues and concerns. These are:

EO No. 90 on Dec. 17, 1986

It is known as the Charter Law of the Housing and Urban Development Coordinating Council (HUDCC), as it abolished the Ministry of Human Settlement and made the HUDCC the highest  policy making body for housing program under the direct supervision of the President. It identified the government agencies essential for the National Shelter Program:  Home Guaranty Corp., Housing Land Use and Regulatory Board (HLURB), National Housing Authority (NHA), National Home Mortgage Finance Corp., Home Development Mutual Fund (Pag-Ibig), and Social Housing Finance Corp. (SHFC).

EO No. 209 on July 6, 1987

The Family Code of the Philippines defined the property relations between husband and wife and established the system of absolute community of property unless there is a prior marriage settlement wherein there will be a regime of conjugal partnership of gains.

Republic Act (RA)  No.  8179  (Amending R.A. 7042—Foreign Investment Act of 1991)

The law allowed former natural born Filipino citizens to purchase commercial lot of up to 5,000 of sqm urban land and three hectares of rural land.

RA No. 7279

The Urban Development and Housing Act of 1992, also popularly known as the Lina Law (after its sponsor Jose Lina), aims to “to provide for a comprehensive and continuing urban development and housing program” and provides the mechanisms to achieve this.

Among its purposes are: “to uplift the conditions of the underprivileged and homeless citizens in urban areas and in resettlement areas by making available to them decent housing at affordable cost, basic services, and employment opportunities,” provide for the rational use and development of urban land,” and ”reduction in urban dysfunctions, particularly those that adversely affect public health, safety and ecology.”

It requires an inventory of government-owned lands and identification of suitable sites for socialized housing, where availability of basic services, proximity to work and economic opportunities are considered. It also sets the guidelines and the procedures in the eviction of informal settlers and the

demolition of their dwellings.

The law, however, became controversial as it has been the point of contention between government and informal settlers.

EO No.  72

It provides for the preparation  and implementation of the comprehensive land use plans of local government units (cities and provinces) pursuant to the Local Government Code of 1991.  It took effect on March 25, 1993.

RA No. 7652 on June 4, 1993 

This was an act allowing the long-term lease of private lands by foreign investors. It stipulates that  lease is for investment and such should include actual remittance of foreign exchange or transfer of assets in the form of goods, patents, formula or other technological rights, formula or process upon registration with Securities and Exchange Commission. The lease shall be for a period 50 years, renewable for another 25 years.

EO 184 on June 27, 1994

This establishes One Stop Processing Centers for Socialized Housing (SHOPCS) to expedite processing applications for conversions be manned by the following agencies: HUDCC, HLURB and the Department of Agrarian Reform, Department of Environment and Natural Resources-Land Management Bureau, Department of Agriculture and Department of Interior and Local Government.

RA No. 7916 or the Special

Economic Zone Act of 1995

This provides the legal framework and mechanisms for the creation, operation, administration, and coordination of special economic zones in the Philippines, creating for this purpose, the Philippine Economic Zone Authority (PEZA). It discusses the eminent domain of the government over ecozones, the lease of lands and buildings in an ecozone, including foreign investors and the land conversion under RA No.  6657, Comprehensive Agrarian Reform Program (CARP).

RA No. 8763 (Home Guaranty Corporation Act of 2000)

This law consolidates and amends RA 580, 1557, 5448, and 7835 and EO 535 and 90, as they apply to the Home Insurance and Guaranty Corp., which shall be renamed as Home Guaranty Corp.

It transferred to HLURB all the powers, authorities and responsibilities with respect to supervision of homeowners association.

It is also to promote sustainable home ownership by providing risk coverage or guarantees and fiscal incentives to banks and financial institutions or investors granting housing loans or credits and home financing. It became effective on March 7, 2000.

RA No. 9225

(Citizenship Retention and Reacquisition Act of 2003)

The law allows former Filipinos to reacquire their Filipino citizenship. After taking an oath of allegiance, they shall enjoy a Filipino’s full civil and political rights including the right to own and be a transferee of private lands in the Philippines. This dual citizenship is to be enjoyed only by natural born citizens and their children whether legitimate, illegitimate or adoptive below 18 years old.

Exceptions include those  candidates for political office in the country where they are naturalized and those in active military service in the country where they are naturalized.

RA No. 9646

The Real Estate Service Act of the Philippines defines the acts generally considered as real estate services, professionals who can render these services, their qualifications and how they can be registered with the Professional Regulation Commission. It specifies penalties for violating its provisions.  It took effect on July 30, 2009.

RA No.  9904

The Magna Carta for Homeowners and Homeowners’ Association stipulates that every association of homeowners shall be required to register with the HLURB. It states how a director or trustee can be removed or how a board can be dissolved. It took effect on January 7, 2010.

RA No. 10023

Known as the Act Authorizing the Issuance of Free Patents to Residential Lands, this law intends to legalize land rights of Filipinos who have been occupying and cultivating public lands for a certain period of time.  It reduces the period of eligibility for titling from 30 years to 10 years.  The law became effective on March 9, 2010.

Source: Inquirer Archives;  www.lawphil.net; www.chanrobles.com; “Unpublished lecture notes, other real estate laws” 2016 by Atty. Analyn Marcelo-Buan for reviewers of real estate brokers exam at Prime Real Estate Values and Integrated Learnings Inc.