WHEREAS, the Constitution of the Philippines mandates that the "State shall establish, maintain and ensure adequate social services in the field of x x x housing x x x to guarantee the enjoyment of the people of a decent standard of living" and directs that "The State shall promote social justice to ensure the dignity, welfare and security of all the people" and "shall regulate the acquisition, ownership, use and enjoyment and disposition of private property and equitably diffuse property ownership and profit."

WHEREAS, Letters of Instructions Nos. 555 and 557 promulgated on 11 June 1977, declared as a national policy that slum improvement, otherwise known as upgrading of sites and services, is an acceptable approach to meeting the housing needs of the country and the primary strategy for dealing with slums, squatter areas and other blighted communities in urban areas; and adopt a national Slum Improvement and Resettlement Program (hereinafter referred to as "SIR");

WHEREAS in compliance with the aforecited Letters of Instructions, the Governor of Metro Manila under Executive Order No. 6-77 dated 21 July 1977 has adopted a Zonal Improvement Program (hereinafter referred to as "ZIP") which addresses the problems of all 415 identified slums and other blighted communities in Metro Manila;

WHEREAS, the landed estate registered under TCT No. 70298, 73960, portions of 71357, 2017 and 2018 and all transfer certificates derived therefrom in Bagong Barrio, Caloocan City is a slum area identified for upgrading under the Zonal Improvement Program of the Governor of Metropolitan Manila;

WHEREAS, one of the primary objectives of the Zonal Improvement Program is to resolve the land tenure sue in slum areas which are privately owned but have been occupied by resident families for long years;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution do hereby decree as part of the law of the land that:

SECTION 1. The real properties covered by Transfer Certificate of Title Nos. 70289,73960 and a portion of 71357 identified as Lot Nos. 3593, 3594 and 3629 in the name of Maria B. Castro and Lot no. 3206 in the name of Bonifacio Co. as per Tax Declaration No. 25395 with an aggregate area of 403,799 square meters, more or less; Lot nos. 3591 and 3592 containing a total area of P1,440 square meters in the name of Abdon Chan as per Tax Declaration Nos. 24853 and 24854 and Lots Nos. 3603, 3605 and 3607 containing a combined area of 1,590 square meters in the Pio Militante as Per Tax Declaration No. 24876 all of which previously covered by Transfer Certificate Title No. 71357 and the adjacent real properties covered by Transfer Certificate of Title No. 2017 and 2018 registered in the name of Leonora Carriedo containing an area of 141, 133 square meters, more or less and all located at Bagong Barrion, Caloocan City, Metro Manila, having been identified as a blighted area and included in the SIR Program established under Letters of Instructions No. 555 and ZIP Program as provided by Executive Order No. 6-77 dated 21 July 1977 of the Governor, Metropolitan Manila, are hereby declared expropriated. The National Housing Authority hereinafter referred to as the "Authority" is designated administrator for the national government and is authorized to immediate possession, control and disposition of the expropriated properties with the power of demolition of their improvements. Pursuant thereto, the Authority with the government with Caloocan City and in consultation with the Metro Manila Commission shall evolve and implement a comprehensive development plan for the condemned properties.

SECTION 2. The comprehensive development plan shall consider the upgrading of existing dwelling units, the relocation of qualified squatter families to resettlement nearby; and the re-blocking, re-arrangement and re-alignment of existing dwelling and other structures to allow for the introduction of basic facilities and services, all in accordance with the provision of the national SIR and Metro Manila ZIP Programs. The Authority shall maximize the land use of the are and shall provide for a controlled, orderly and structure growth of dwellings in an environment orderly and structure growth of dwelling in an environment provided with adequate sanitary and other physical facilities.

SECTION 3. The development of the area shall be an inter-agency effort and shall be funded, designed, undertaken and funds invested in the project recovered according to the provisions of Letters of Instructions Nos. 555 and 557 as amended.

SECTION 4. Land Tenure shall be consistent with that defined by Letters of Instructions No. 555 as amended. The purchase price of the raw land shall be fixed at a per square meter cost established to recover the expropriation price stated in Sections 6 and 7 of this Decree.

SECTION 5. All expropriated areas not otherwise put to use for low-income housing as provided, above, may be developed, improved with dwelling units and rented or sold to low and middle income groups, or may be put to commercial use, at the option of the Authority in consultation with the local government in order to generate subsidies to help defray the development cost of this project or other similar projects.

SECTION 6. Notwithstanding any provision of law or decree to the contrary and for the purpose of expropriating these properties pegged at the market value determined by the City Assessor pursuant to Presidential Decree No. 76, as amended and in force and in effect at the time of the issuance of this decree. In assessing the market value, the City Assessor shall consider existing conditions in the area notably, that no improvement has been undertaken on the land and that the land is squatted upon by resident families which should considerably depressed the expropriation cost. Subject to the foregoing, the just compensation for the above properties should not exceed a maximum of FORTY MILLION PESOS (P40,000,000.00) which shall be payable to the owners within a period of five (5) years in five (5) equal installments.

SECTION 7. The sum of EIGHT MILLION PESOS (8,000,000.00) and an equal amount every fiscal year thereafter or a total amount of FORTY MILLION PESOS (P40,000,000.000) are hereby appropriated from the general fund in the National Treasury or from such other sources as may be available to the National Housing Authority for the payment of just compensation of the expropriated properties as may be established as provided under Section 6 above.

SECTION 8. There is also expropriated the amount of TWENTY FIVE MILLION PESOS (P25,000,000.00) for the financing of the components of the development plan that the Authority can undertake for the first year of a 5-year development program of implementation of the project as prescribed under the aforecited Letter of Instructions; provided that these funds shall be considered as a grant to the Authority and shall not form part of its authorized capital.

SECTION 9. All appropriation shall be made available by the Budget Commission to the National Housing Authority according to the provisions of the program to be evolved and implemented by the Authority for the area.

SECTION 10. The amounts appropriated under Section 7 and 8 of this Decree are to be recovered from all beneficiaries of the development project in accordance with LOI No. 555 as amended. These amounts shall remain with the Authority for its use under its National Housing Program for other areas. In consideration of the disposition and grant of benefits under this Decree, payment by beneficiaries shall be made religiously and after a grace period of three months (3), failure to pay or update dues and/or amortizations shall cause the summary ejection of the violators from the lots allocated to them by the Authority without need of court orders or subjecting the Authority or its duly authorized representatives to any civil or criminal liability. Furthermore, the ejected beneficiary shall be treated as a mere squatter on the premises with all the force of law applied upon him and with no further right to the benefits of this Decree, This provision shall be embodied in the agreement between the Authority and the beneficiaries.

SECTION 11. The decisions, rulings, orders or resolutions of the Authority relative to the disposition of the lots or dwelling units or such rights acquired hereunder, or to the ejections of delinquent beneficiaries cannot be the subject of judicial review and shall be final, unless appealed to the Office of the President within thirty (30) days from receipt of such decision, rulings, orders or resolutions; provided, however, that the Office of the President is deemed to have affirmed and appealed such decision, ruling, order or resolution if within sixty (60) days from notice of appeal the said Office has not reversed nor modified the same.

SECTION 12. All acts, parts of acts, decrees, letter of instructions, ordinances or rules and regulations which are inconsistent herewith are hereby repealed, amended or modified accordingly.

SECTION 13. If for any reason a section or provision of this Decree is declared to be unconstitutional or invalid, the other sections or provisions hereof, which are not affected thereby shall continue in full force and effect.

SECTION 14. This Decree shall take effect immediately.

DONE in the City of Manila, this 26th day of March, 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