WHEREAS, it is a declared objective of the New Society to effect social, economic, and political reforms attuned to the establishment of a secure national community and to an improving quality of life for all citizens and for all others who may sojourn upon our shores;

WHEREAS, the quality of human life in our times is inescapably determined by the relationships amongst human populations, resources, the environment, and intelligent policies;

WHEREAS, human settlements is an integrative concept embracing the interdependence of man’s environment, human shelters and structures, and the design and organization of human communities consistently with a national framework plan, all for the people’s security and well-being;

WHEREAS, the New Society’s reform programs now call for the organization of a body that is adequate and responsive to the manifold tasks of formulating intelligent long-term human settlements perspectives and policies, designing operational programs for the control of all forms of environment blight or deterioration, and adopting and implementing measures for ensuring the safety and wholesomeness of life in our communities with due regard to considerations of space, efficient land use, equity in resource distribution, and rational relationships amongst our communities.

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution, as Commander-in-Chief of all the Armed Forces of the Philippines and pursuant to Proclamation No. 1081, dated September 21, 1972, General Order No. 1, dated September 22, 1972, as amended, and in order to effect the desired changes and reforms in the social, economic, and political structure of our society, do hereby order and decree and make as part of the law of the land the following:

SECTION 1.  Declaration of Policy.  It is hereby declared to be the policy of the Government (a) to liberate our urban communities from blight, congestion, and hazard, and to promote the modernization of our human communities; (b) to bring about the optimum use of land as a national resource for public welfare rather than as a commodity of trade subject to price speculation and indiscriminate use; (c) to effect rational inter-dependence of communities both within as well as amongst the various regions; (d) to preserve and promote a dynamic balance between the physical beauty of our land and waters on the one hand, and the handiwork of human technology on the other; and, finally, (e) to realize these policies through the human settlements approach, engaging in these activities the best efforts of the private and public sectors of the New Society.

SEC. 2.  Creation of Human Settlements and Planning Commission.  For the purpose of carrying out the above declared policy, there is hereby created a Human Settlements and Planning Commission, hereinafter referred to as the Commission, which shall be under the Office of the President of the Philippines.

The Commission shall be composed of the Secretary of National Defense, the Secretary of Public Works, Transportation and Communications, the Secretary of Local Government and Community Development, the Chairman of the Board of Investments, or their representatives, and the incumbent Chairman of the Task Force on Human Settlements.

The President of the Philippines shall appoint from among the above-mentioned officials the Chairman of the Commission, who shall also be an ex-officio member of the Development Budget Coordination Committee of the National Economic and Development Authority.

The Chairman and members of the Commission shall serve without compensation, but may receive allowances while engaged in official assignments for the Commission.

The Commission shall meet regularly at least once a month.

The Commission shall appoint and maintain an adequate Administrative staff. It shall also have a working staff which shall consist of the working staff of the Task Force on Human Settlements created and organized pursuant to Executive Order No. 419, and Presidential Decree No. 297, both dated September 19, 1973. The Planning and Project Development Office of the Department of Public Work, Transportation and Communications is hereby integrated with the working staff of the Task Force on Human Settlements. Their powers and functions, appropriations, records, assets and liabilities, rights, choses in action, and obligations are transferred to, vested in and assumed by the Commission.

The working staff shall undertake and perform such functions, duties and activities as are now assigned to it by the aforesaid Executive Order, and those that may be required by the Commission. The terms and conditions of employment of the members of the above-named working staff shall continue to be governed by the provisions of the aforesaid Executive Order. In view of the fact that human settlements approach is a new approach to development, even internationally, the personnel of the working staff, whether recruited by the Commission or detailed to its service upon its request, are hereby declared policy-determining, primarily confidential or highly technical: Provided, That except as to positions which are policy-determining, primarily confidential or highly technical, all positions in the administrative staff but not the working staff of the Commission are subject to the provisions of the Civil Service Law, rules and regulations, but are exempt from the rules and regulations of the Wage and Position Classification Office: Provided, further, That the professional and technical personnel of the working staff shall be permanent and career in status without prejudice to transfer, detail, assignment, promotion, discipline and dismissal in accordance with the Commission’s personnel management program and shall be entitled to benefits and privileges normally accorded to government employees.

SEC. 3.  Purposes, Powers, and Functions.  The Commission shall have the following purposes:

(1) To promote, commission, assemble, contract, and otherwise obtain information and studies pertaining to human settlements to the end that it can formulate human settlements policies, plans, and programs; and design the integrated and coordinated implementation of such policies, plans, and programs for the different levels of government and for the public and private sectors.

(2) To promulgate and ensure compliance with plans, policies, guidelines, and standards for land management and land use, ecological conservation and development, control of urban/industrial pollution and hazards.

To attain the above-mentioned purposes, the Commission shall have the following powers and functions:

(a) To formulate, adopt and promulgate a continuing and integrated national plan on human settlements, and to promulgate guidelines, standards and a reporting system for programming and planning in the national and local levels. Once said plan is promulgated, all development plans, programs and projects of the government and the private sectors related to human settlements shall conform to the guidelines and standards set forth therein.

(b) To formulate, adopt, promulgate and coordinate the implementation of land classification, land valuation, land readjustment schemes, and land use and zoning policies, rules and regulations. All land resources management policies, plans, rules and regulations of all the different government and private entities shall conform to such policies, plans, rules and regulations adopted, promulgated and/or endorsed by the Commission.

(c) To set performance standards for emittants, industrial wastes, fire hazards and the like. Factories, plants, industries and the like shall provide adequate and effective devices to insure healthy and safe disposal of industrial wastes, install anti-pollution devices, safety devices and the like and otherwise use their property in accordance with prescribed policies, rules and regulations promulgated by the Commission.

(d) To identify, determine, declare and/or exercise the right of eminent domain on selected Human Settlements as integrated development areas which will be developed and zoned as Planned Development Units (PDUS) in accordance with modern development comprehensive planning and programming techniques and procedures under such terms and conditions as the Commission may prescribe, and in connection therewith to enfranchise, manage, contract and/or engage in such development program/projects either directly by itself and/or by creating subsidiaries for this purpose or indirectly through other agencies and instrumentalities of the Government and/or private entities.

(e) To review, revise, and approve development plans, programs, and projects related to human settlements, of national regional and local government agencies and instrumentalities, public corporations and private enterprise, and to determine whether they conform with the integrated national human settlement plan. No private or government plan, project or program related to the establishment and development of human settlements, or component activities thereof as determined by the Commission, shall take effect or be put into operation without the favorable concurrence of the Commission.

(f) To promote, encourage, coordinate, and assist private enterprises and government agencies and instrumentalities in planning, developing and coordinating human settlements programs, and to furnish, to the extent possible, technical and professional assistance and guidance.

(g) To provide for the assembly and dissemination of information and experience concerning all aspect of planning and development and to foster an increased awareness of urban and rural life and the importance of the environment in human settlements.

(h) When public interest and welfare so demand, the Commission shall institute expropriation, condemnation or abatement of nuisance proceedings in the manner as may now or hereinafter be provided by law, for the transfer, removal or cessation of operations of factories, plants, industries and the like that are considered pollutants, combustible and hazardous to the health, safety and welfare of the general public living in a particular vicinity. All persons affected shall have the right to notice and hearing before the Commission and to show cause why the property should not be made subject of expropriation, condemnation or abatement of nuisance proceedings.

(i) To issue bonds or contract loans, credits, or indebtedness, domestic or foreign, for the implementation of its programs and projects, the payment of which shall be guaranteed, absolutely and unconditionally, by the Government through the President of the Philippines or his duly authorized representative, as primary obligor and not as surety only.

(j) To enter into contracts, either domestic or foreign, to collect fees and/or to impose development charges in the performance of its quasi-judicial and regulatory functions, whenever necessary under such terms and conditions as it may deem proper and reasonable and to receive income from such contracts, fees and charges, all of which shall remain with the Commission and shall constitute part of the properties and funds principal or otherwise, of the Commission referred to in Section 3(k).

(k) To receive take, and hold by bequest, devise, gift, purchase, or lease, either absolutely or in trust, for any of its purposes, from foreign or domestic sources, any asset, grant, or property, real or personal, without limitation as to amount or value; to convey such asset, grant or property, invest and reinvest the same under this provision and deal with and expand its assets and income in such manner as will best promote its public welfare objectives.

(l) To develop and maintain in conjunction with cooperating agencies a computerized information system through the establishments of a data bank to support the Commission at various specific levels in the planning, monitoring, execution, coordination and control of its various activities, programs and/or projects.

(m) To call on any department, bureau, office, agency, instrumentality or political subdivision of the Government for cooperation and assistance in the performance of its duties and functions. Refusal of any such office or official to cooperate with and assist the Commission shall subject the official concerned to administrative disciplinary action.

(n) To do and perform any and all such acts as may be necessary and proper to carry out the objectives of this Decree.

SEC. 4.  Powers of the Commission Upon Notice and Hearing.  The Commission shall have the powers, upon proper notice and hearing:

(1) To determine a rational plan for the extent or radius of a particular area or areas within which the establishment of factories, plants, industries and the like may be regulated. Once determined, all new factories, plants or industries and the like may be established or operated within the area, or existing ones expanded or reconstructed, but only upon approval by the Commission.

(2) To determine whether existing factories, plants, industries, building and the like or components thereof need to be transferred, relocated, terminated or otherwise demolished. Once determined, the Commission shall institute the appropriate proceedings as specified in Section 3 hereof.

In such determinations, the Commission shall be guided by the following considerations:

(a) Whether the factories, plants or industries and the like established or to be established, are pollutants or non-pollutants, hazardous or non-hazardous and/or combustible or non-combustible.

(b) Whether the factories, plants, or industries and the like are located in an area which is so congested and densely populated as to threaten the health, safety and security of a considerable number of people.

(c) Whether the transfer or relocation of the plant, factory or other establishment can be avoided through the installation and use of anti-pollution and other anti-hazards devices that the Commission may prescribe.

(d) Whether the transferred or relocated factories, plants or industries or components thereof or those to be established in a specified area can be accorded infrastructure support, such as highways, water and sewerage, power and other facilities.

(e) The costs of transfer or relocation of the factories plants or industries taking into account the benefits derived from the removal thereof.

(3) To regulate and/or coordinate with appropriate existing government entities the regulation of production capacities of new factories, plants and industries or additional production capacities of existing factories, plants and industries and the like. Factories, plants, industries and the like shall operate only within the capacities allowed or authorized by the Commission. Any additional capacity over and above those determined by existing regulation shall be operative only with the approval of the Commission, subject to the terms and conditions it may impose for the health, safety and security of the community.

(4) Whenever the Commission has received a formal complaint and has determined that a person, plant, factory or industry or other establishment of dwelling if a pollutant or hazardous or had violated prescribed planning rules, regulations and policies or refused to comply with any requirement regarding the use of anti-pollution or anti-hazard devices, the Commission shall immediately order compliance under pain of penalties herein imposed or otherwise institute expropriation, condemnation or abatement of nuisance proceedings as specified in Section 3 hereof.

SEC. 5.  Powers of the Commission Without Hearing.  The Commission shall have the power to do the following without hearing:

(1) Require all persons, corporations or other entities and their associations or institutes to furnish it with such physical operational plans, maps and other relevant information as it may need to discharge its duties under this Decree and to exercise its functions and powers under Section 7 and 8 hereof;

(2) Issue subpoena and subpoena duces tecum on any inquiry, study, hearing, investigation, or proceeding which it may decide to undertake in the exercise of its functions, power and duties under this Decree;

(3) Call on any department, bureau, office, agency or instrumentality of the government or any of its political subdivisions for cooperation and assistance in the performance of its duties and functions;

(4) Promulgate rules and regulations relevant to procedures governing hearings before the Commission and enforce compliance with any rule, regulation, order or other requirements of this Decree or of the Commission: Provided, That the said rules and regulations shall take effect fifteen (15) days after publication in a newspapers of general circulation; and

(5) Issue and promulgate such rules and regulations as it may deem necessary in the attainment of its objectives.

(6) Perform such other acts as may be necessary or conducive to the exercise of its functions and powers and the discharge of its duties under this Decree.

SEC. 6.  Other Duties of the Commission.  The Commission, through its working staff, the Task Force on Human Settlements referred to in Section 2 hereof, shall undertake a continuing study of overall human settlements problems in its national, regional and local levels, gather and collate information and statistics bearing on human settlements, submit an annual report and the results of its studies, including therein such matters as it may deem appropriate subjects of legislation or executive action. The Commission shall likewise keep itself regularly and thoroughly informed of conditions in the country in order to enable it to perform its functions, exercise its powers and discharge its duties effectively.

SEC. 7.  Commission Procedure.  All inquiries, studies, hearings, investigations, and proceedings conducted by the Commission shall be governed by rules adopted by the Commission, and in the conduct thereof the Commission shall not be bound by technical rules of evidence: Provided, That the Commission may summarily punish for contempt, by a fine not exceeding five hundred pesos (P500.00) or by imprisonment not exceeding thirty (30) days or both, any person guilty of such misconduct in the presence of the Commission or so near thereto as to seriously interrupt any hearing or session or any proceeding before it, including cases wherein a person willfully fails or refuses, without just cause, to comply with a summons, subpoena, or subpoena duces tecum legally issued by the Commission or, being present at a hearing, session or investigation, refuses to be sworn as a witness or to answer questions when lawfully required to do so, or to furnish information required by the Commission under this Decree. The sheriff or other police agencies of the place where the hearing or investigation is conducted shall, upon the request of the Commission, assist it to enforce the provisions of this Section.

SEC. 8.  Review of Commission’s Decision or Order.  A party adversely affected by any decision or order of the Commission in the exercise of its powers subject to hearing may, within a period of thirty (30) days from receipt of said decision or order, appeal to the Office of the President in accordance with the provisions of Executive Order No. 19, series of 1966. A motion for reconsideration filed with the Commission within the period for appeal shall stop or suspend the running of the period for appeal to the Office of the President and the period for appeal shall continue to run again from the date of receipt by the party concerned of the denial of his motion for reconsideration by the Commission.

SEC. 9.  Domicile.  The principal office of the Commission shall be established in Metropolitan Manila. The Commission may also have branches or offices at such other place or places, within or outside the Philippines, as the operations and activities of the Commission may require.

SEC. 10.  Expenditures and Disbursements.  Expenditures and disbursements made by the Commission in the conduct of its affairs shall not be subject to the procurement requirements and restrictions imposed by existing laws upon government agencies, instrumentalities and government-owned or controlled corporations.

SEC. 11.  Exemption from Taxes.  Any provision of existing laws to the contrary notwithstanding, any donation, contribution, bequest, subsidy or financial aid which may be made to the Commission shall be exempt from taxes of any kind, and shall constitute allowable deductions in full from the income of the donors or givers for income tax purposes.

The Commission, its assets, acquisitions, income, and its operations and transactions shall be exempt from any and all taxes, fees, charges, imposts, licenses and assessments, direct or indirect, imposed by the Republic of the Philippines or any of its political subdivisions or taxing authority thereof, except import taxes, duties and fees.

SEC. 12.  Appropriation.  The budget of the Commission shall be in the form of lump sum appropriations of ten million pesos (P10,000,000.00) for fiscal year 1973-1974 which is hereby appropriated out of any funds in the National Treasury. Thereafter, such amount as necessary to carry out the provisions of this Decree shall be included in the annual General Appropriations Act.

SEC. 13.  Penalties.

(1) Any person who shall give false or misleading data or information or willfully or through gross negligence, conceals or falsifies a material fact, in any investigation, inquiry, study, or other proceedings held pursuant to this Decree, shall be punished with imprisonment of not less than four nor more than six months and with a fine of not less than five hundred pesos nor more than one thousand pesos: Provided, however, That if the false or misleading data or information shall have been given under oath, the maximum penalty of giving false testimony or perjury shall be imposed.

(2) Any person or establishment who violates any provisions of this Decree or any order, decision, ruling or regulation of the Commission shall, upon conviction for the first time, be warned and placed on probation under such terms and conditions that the Commission may impose. On second conviction, the penalty to be imposed by the Commission shall be the removal, withdrawal, cessation or refusal of infrastructure support, namely, highways, sewage, water, electric power and the like. On third and subsequent convictions, the offender shall, in addition to the penalty imposed on second conviction, be sentenced by the proper court to imprisonment for a period of not less than six months but not more than five years and a fine of not less than five thousand pesos: Provided, That if the offender be a corporation, partnership or juridical person, the penalty of imprisonment shall be imposed on the officer or officers responsible for permitting or causing a violation by the corporation, partnership or juridical person of the provisions of this Decree.

SEC. 14.  Submission of Proposal.  Within a period not exceeding one year from the promulgation of this Decree, the Commission shall submit to the President in coordination with the Reorganization Commission a coordinated plan or proposal for the strengthening, absorption and/or abolition of government agencies and instrumentalities, directly or indirectly affected by this Decree.

SEC. 15.  Separability Clause.  If any provision this Decree shall be held invalid, the remainder of this Decree shall not be affected thereby.

SEC. 16.  Repealing Clause.  Any provision of law, Executive order, rule or regulation inconsistent with this Decree are hereby repealed or modified accordingly.

SEC. 17.  Effectivity.  This Decree shall take effect immediately.

Done in the City of Manila, this 4th day of March, in the year of Our Lord, nineteen hundred and seventy-four.

(SGD.) FERDINAND E. MARCOS

BY THE PRESIDENT:

(SGD.) ALEJANDRO MELCHOR
Executive Secretary