WHEREAS, the primordial objective of Republic Acts Nos. 4852 and 6026 is the social and economic uplift of the dislocated families relocated from the Greater Manila Area to resettlement projects;

WHEREAS, some provisions of Republic Acts Nos. 4852 and 6026 have been found to be unrealistic and inadequate particularly on matters affecting the disposition, utilization and administration of home lots and commercial and/or industrial areas in government resettlement projects;

WHEREAS, in many instances, portions, if not the entire area, of the property acquired by the National Housing Authority or its predecessors-in-interest for resettlement and/or for housing development, have been placed under the operation of land transfer by the Department of Agrarian Reform to the prejudice of the housing development program of the government;

WHEREAS, to insure and hasten the attainment of the objectives of the law, there is an imperative need to provide additional guidelines in the utilization, disposition and administration of housing and resettlement projects of the government;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution, do hereby order and decree, the following:

SECTION 1. The government resettlement projects in Sapang Palay, San Jose del Monte, Bulacan, Carmona, Cavite; San Pedro, Laguna; Dasmariñas, Cavite; and such other lands or property acquired by the National Housing Authority or its predecessors-in-interest or to be acquired by it for resettlement purposes and/or housing development, are hereby declared as outside the scope of the Land Reform Program under the Agricultural Land Reform Code, as amended, and as such, the National Housing Authority or its predecessors-in-interest shall not be held liable for disturbance compensation as the case may be.

All third party adverse claims of whatever nature as against the ownership or possession of the aforesaid property shall be of no effect as against the government and its instrumentalities;

SEC. 2. The National Housing Authority shall have the power to summarily eject, without the necessity of judicial order, any and all squatters from squatters' colonies or government resettlement projects, as well as, any illegal occupant in any homelot, apartment or dwelling unit owned or administered by it. In the exercise of such power, the National Housing Authority shall have the right and authority to request the help of the Barangay Chairman and any peace officer in the locality. Illegal occupant as used in this Decree shall mean to include those awardees or lessees whose right to occupy or lease the subject homelot, apartment or dwelling unit has already ceased by reason of his violation of the conditions of his award or lease agreement executed in his favor by the National Housing Authority or its predecessors-in-interest. In all these cases, however, proper notice of ejectment either by personal service or by posting the same in the lot or door of the apartment as the case may be given to the squatter or illegal occupant concerned as the case may be at least 10 days before his scheduled ejectment from the premises. The provision of Section 2 of Republic Act No. 6026 that no awardee shall be ejected unless he is transferred to another housing project or to his hometown with the assistance of the Department of Social Welfare is hereby repealed.

SEC. 3. Any business enterprise established or to be established in any of the government resettlement projects may be registered with the Board of Investments and as such, shall be entitled to all the incentives and privileges granted under the law;

SEC. 4. A Certificate of Award issued by the National Housing Authority to any duly resettled family in any resettlement project of the government may be used as collateral by the awardee for a loan from any government financial institution for the purpose of improving his dwelling unit or for investment to be established within the resettlement project and for other purposes but upon prior approval by the General Manager of the National Housing Authority;

SEC. 5. Homelots including improvements thereon in government resettlement projects shall be exempted from levy on execution or attachment, except for non-payment of taxes or other obligation in favor of the government or foreclosures for the satisfaction of a mortgage loan previously approved by the National Housing Authority;

SEC. 6. Homelot in government resettlement projects shall have an area of not less than 48 square meters and not more than 300 square meters;

SEC. 7. Notwithstanding the provision of any law to the contrary, the Board of Directors of the National Housing Authority shall have the power to determine the selling price of any homelot, commercial and/or industrial area within the resettlement project and may charge amortization and delinquency interest;

SEC. 8. The National Housing Authority shall undertake the processing of applications filed by squatters who desire to be resettled in any government resettlement project and shall determine their qualifications. Squatters who have occupied the estate before its acquisition by the government shall be given preference in the award of homelots in the resettlement project if found qualified under existing rules and regulations.

SEC. 9. The National Housing Authority shall promulgate such rules and regulations as may be necessary with respect to the proper utilization, disposition and administration of housing units, homelots and commercial and/or industrial areas in the resettlement projects of the government and which shall have the force of law after the same shall have been published in a newspaper of general circulation.

SEC. 10. All provisions of laws, decrees, letters of instructions, rules and regulations which are inconsistent with this Decree are hereby repealed, modified or amended accordingly.

SEC. 11. This Decree shall take effect immediately.

DONE in the City of Manila, this 11th day of June, in the year of Our Lord, nineteen hundred and seventy-eight.

			(Sgd.) FERDINAND E. MARCOS President of the Philippines
	By the President:
	(Sgd.) JACOBO C. CLAVE
		Presidential Executive Assistant