WHEREAS, the national government through the National Housing Authority (NHA) is undertaking a continuing program of eliminating and preventing squatting in danger areas, land needed for the infrastructure program of the government and privately-owned land;

WHEREAS, the policies of the national government as provided in Letters of Instructions Nos. 555, 556 and 557 as amended by Letter of Instructions No. 686 require the development of resettlement sites for the accommodation of families to be removed from the aforementioned areas;

WHEREAS, the relocation and resettlement of squatter families from the aforementioned areas is a governmental function being undertaken through the NHA as a priority program of the national government;

WHEREAS, the NHA's housing program for marginal and low income families is based on the principle that investments in housing development must be recovered in order to ensure its viability as a Corporation and the continuity of its programs;

WHEREAS, resident families in the resettlement areas are experiencing severe financial difficulties aggravated by the physical and economic dislocation they have to overcome in starting a new life in the said resettlement projects;

WHEREAS, majority of the resettled families in NHA resettlement projects are unable to pay their monthly amortization paymants for their respective homelots and have repeatedly petitioned for the reduction of such amortization payments;

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:

SECTION 1. The monthly amortization payment of resettled families for their respective homelots and any on-plot development thereon in NHA resettlement project shall be a minimum of F30.00 and a maximum of F50.00 depending on the size and location of such homelots, provided that resettled families paying less than the above stated amount shall continue to pay their current rate of monthly amortization less the interest charges. This amortization shall be made for a perior of 25 years with no interest charge.

SEC. 2. Any families relocated from danger areas such as esteros, riverways and the right-of-way of railroad tracks and roads, from land for the infrastructure program of the national government and privately-owned land through the action of the government and who have been given the opportunity to be accommodated in a government resettlement project, has voluntary acceded to reside in such project, shall be entitled to the foregoing rate of monthly payment. Families who illegally occupy homelots in resettlement projects shall be charged the full price of the homelots based on the total project cost as determined by the NHA.

SEC. 3. The transfer and resale of homelots awarded to resident families under the terms and conditions set-forth in this Decree is illegal. The award of the homelot in accordance with this Decree shall be cancelled and the awardee who transfers or sells, such homelots shall be disqualified from receiving government assistance. The transfer or resale of homelots may however be legalized, provided the buyer is qualified to own a homelot under the rules of the NHA and agrees to pay the full price of the homelot based on the total project cost.

SEC. 4. Equity funds of the NHA which were used for the development of resettlement sites shall be converted to subsidies or grants of the national government to NHA and shall therefore be written off from its books of accounts by deducting an equivalent amount the total equity contributions of the national government to NHA. For this purpose, the NHA, shall submit to the Office of the Budget and Management a statement of its total investment in resettlement projects as of the effectivity of this Decree duly certified to by the Commission on Audit. The Office of the Budget and Management shall based on the above-mentioned certified statement of fund use, adjust its accounting records on the amount of equity contributions already made by the national government to the National Housing Authority.

SEC. 5. Henceforth, the cost of development of resettlement sites for families to be removed from danger areas and land needed for the infrastructure program of the national government including the cost of physically transferring them to such resettlement sites shall be borne by the national government. For budgetting purposes, such costs shall be chargeable to the government agency responsible for the project or the area to be cleared and such agency shall allocate funds for the relocation and resettlement of squatter families which funds shall be considered as part of the total project cost.

SEC. 6. The National Housing Authority under the supervision of the Ministry of Human Settlements shall estimate the yearly requirement for funds to support the relocation and resettlement program of the national government and include the same as a part of its annual program and budget. The Office of the Budget and Management shall make available to the National Housing Authority the funds allocated for the said program as subsidy or grant to be released apart and distinct from the equity contributions of the national government to the National Housing Authority for the particular fiscal year.

SEC. 7. The General Manager of the National Housing Authority shall promulgate the rules and regulations for the implementation of this Decree which rules and regulations shall be subject to the approval by the NHA Board of Directors.

SEC. 8. All laws, Presidential Decrees, Letter of Instructions and other issuances and the pertinent parts thereof inconsistent with this Decree are hereby modified, amended or revoked accordingly.

SEC. 9. This Decree takes effect immediately.

Done in the City of Manila, 23rd day of January, in the year of Our Lord, nineteen hundred and eighty-six.

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