A. 1.

PRESIDENTIAL PROCLAMATION A presidential proclamation is an instrument that states a condition, declares a law and requires obedience, recognizes an event or triggers the implementation of a law (by recognizing that the circumstances in law have been realized) (Cooper 2002, 116). In short, presidents define situations or conditions on situations that become legal or economic truth. These orders carry the same force of law as executive orders the difference between the two is that executive orders are aimed at those inside government while proclamations are aimed at those outside government. The administrative weight of these proclamations is upheld because they are often specifically authorized by congressional statute, making them delegated unilateral powers. Presidential proclamations are often dismissed as a practical presidential tool for policy making because of the perception of proclamations as largely ceremonial or symbolic in nature. However, the legal weight of presidential proclamations suggests their importance to presidential governance 2. DIRECT ACQUISITION/NEGOTIATION The act of acquiring an asset or object/Negotiation is a dialogue between two or more people or parties, intended to reach an understanding, resolve point of difference, or gain advantage in outcome of dialogue, to produce an agreement upon courses of action, to bargain for individual or collective advantage, to craft outcomes to satisfy various interests of two person/ parties involved in negotiation process. Negotiation is a process where each party involved in negotiating tries to gain an advantage for themselves by the end of the process. Negotiation is intended to aim at compromise. 3. EXPROPRIATION to take possession of, especially for public use by the right of eminent domain, thus divesting the title of the private own. Compulsory seizure or surrender of private party for the state's purposes, with little or no compensation to the property's owner. Governments or their agencies can effect an expropriation by making changes in legal code, tax code, or regulations such as zoning. 4. DONATION A donation is a gift given by physical or legal persons, typically for charitable purposes and/or to benefit a cause. A donation may take various forms, including cash, services, new or used goods including clothing, toys, food, and vehicles. It also may consist of emergency, relief or humanitarian aid items, development aid support, and can also relate to medical care needs as i.e. blood or organs for transplant. Charitable gifts of goods or services are also called gifts in kind.

5. LAND SWAPPING/EXCHANGE The act of giving or taking one thing in return for another which is regarded as an equivalent. The act of substituting one thing in the place of another. B. TITLING AND REGISTRATION 1. EVENT OF SALE

REPUBLIC ACT NO. 6732 AN ACT ALLOWING ADMINISTRATIVE RECONSTITUTION OF ORIGINAL COPIES OF CERTIFICATES OF TITLES LOST OR DESTROYED DUE TO FIRE, FLOOD AND OTHER FORCE MAJEURE, AMENDING FOR THE PURPOSE SECTION ONE HUNDRED TEN OF PRESIDENTIAL DECREE NUMBERED FIFTEEN TWENTY-NINE AND SECTION FIVE OF REPUBLIC ACT NUMBERED TWENTY-SIX
SECTION 1. follows: Section 110 of Presidential Decree No. 1529 is hereby amended to read as

Sec. 110. Reconstitution of Lost or Destroyed Original of Torrens Title. Original copies of certificates of titles lost or destroyed in the offices of Register of Deeds as well as liens and encumbrances affecting the lands covered by such titles shall be reconstituted judicially in accordance with the procedure prescribed in Republic Act No. 26 insofar as not inconsistent with this Decree. The procedure relative to administrative reconstitution of lost or destroyed certificate prescribed in said Act may be availed of only in case of substantial loss or destruction of land titles due to fire, flood or other force majeure as determined by the Administrator of the Land Registration Authority: provided, that the number of certificates of titles lost or damaged should be at least ten percent (10%) of the total number in the possession of the Office of the Register of Deeds: provided, further, that in no case shall the number of certificates of titles lost or damaged be less than five hundred (500). Notice of all hearings of the petition for judicial reconstitution shall be furnished the Register of Deeds of the place where the land is situated and to the Administrator of the Land Registration Authority. No order or judgment ordering the reconstitution of a certificate of title shall become final until the lapse of fifteen (15) days from receipt by the Register of Deeds and by the Administrator of the Land Registration Authority of a notice of such order or judgment without any appeal having been filed by any such officials. SECTION 2. For the purpose of the preceding section, Section 5 of Republic Act No. 26 is hereby revived and amended to read as follows: Sec. 5. Petitions for reconstitution from sources enumerated in Sections 2(a), 2(b), 3(a,) and 3(b) of this Act may be filed with the Register of Deeds concerned by the registered owner, his assigns, or other person, both natural and juridical, having an interest in the property. The petition shall be accompanied with the necessary sources for reconstitution and with an affidavit of the registered owner stating, among other things:

(1) That no deed or other instrument affecting the property had been presented for registration, or, if there be any, the nature thereof, the date of its presentation, as well as the names of the parties, and whether the registration of such deed or instrument is still pending accomplishment; (2) That the owners duplicate certificate or co-owners duplicate is in due form without any apparent intentional alterations or erasures; (3) That the certificate of title is not the subject of litigation or investigation, administrative or judicial, regarding its genuineness or due execution or issuance; (4) That the certificate of title was in full force and effect at the time it was lost or destroyed;

(5) That the certificate of title is covered by a tax declaration regularly issued by the Assessors Office; and (6) That real estate taxes have been fully paid up to at least two (2) years prior to the filing of the petition for reconstitution. If the reconstitution is to be made from any of the sources enumerated in Section 2(b) or 3(b), the affidavit should further state that the owners duplicate has been lost or destroyed and the circumstances under which it was lost or destroyed. Thereupon, the Register of Deeds shall, no valid reason to the contrary existing, reconstitute the certificate of title as provided in this Act. SECTION 3. Immediately after the loss or destruction of titles mentioned in Section 2 hereof, a true, complete and faithful inventory of all books, titles, documents, cash and property in the Registry of Deeds concerned shall be prepared by the Land Registration Authority through the newly designated reconstituting officer or Register of Deeds. Said inventory, duly signed and certified under oath by the Administrator of the Land Registration Authority, shall be published in a newspaper of general circulation in the province or city where the loss or destruction of titles occurred. SECTION 4. All reconstituted titles shall be reproduced by the Land Registration Authority in at least three image copies or in whatever means by which the original can be reproduced, one copy to be kept by the Land Registration Authority, the second copy to be kept by the National Library Archives Division, and the third copy to be secured in a government fire-proof vault, preferably in the Security Printing Plant of the Central Bank. Such image copy of the original copy of the reconstituted title shall be considered after due authentication by the Land Registration Authority, through the Register of Deeds in the province or city where the land is located, as a duplicate original, and as an authorized source or basis for reconstitution together with the sources enumerated in Section 2 and 3 of Republic Act No. 26. SECTION 5. After reconstitution, said owners duplicate or co-owners duplicate exhibited as basis for the reconstitution shall be surrendered to the Register of Deeds and a new certificate of title issued in lieu thereof, the original of which shall be kept by the Register of Deeds and the owners duplicate delivered to the registered owner.

SECTION 6. SECTION 7.

Section 6 of Republic Act No. 26 is hereby declared inoperative. Section 19 of Republic Act No. 26 is hereby amended to read as follows:

Sec. 19. If the certificate of title considered lost or destroyed, and subsequently found or recovered, is not in the name of the same person in whose favor the reconstituted certificate of title has been issued, the Register of Deeds or the party concerned should bring the matter to the attention of the proper regional trial court, which, after due notice and hearing, shall order the cancellation of the reconstituted certificate of title and render, with respect to the memoranda of new liens and encumbrances, if any, made in the reconstituted certificate of title, after its reconstitution, such judgment as justice and equity may require: provided, however, that if the reconstituted certificate of title has been cancelled by virtue of any deed or instrument, whether voluntary or involuntary, or by an order of the court, and a new certificate of title has been issued, the procedure prescribed above, with respect to the memorandum of new liens and encumbrances made on the reconstituted certificate of title, after its reconstitution, shall be followed with respect to the new certificate of title, and to such new liens and encumbrances, if any, as may have been on the latter, after the issuance thereof. SECTION 8. The Administrator of the Land Registration Authority, with the approval of the Secretary of Justice, shall issue rules, regulations, and circulars as may be necessary and appropriate to implement this Act, including but not limited to the following: (1) The temporary designation of a reconstituting officer or another Register of Deeds;

(2) The submission of monthly periodic status reports on reconstitution proceedings and reconstituted titles to the Secretary of Justice and the governor or city mayor concerned; and (3) The immediate reporting by the reconstituting officer or Register of Deeds to the Secretary of Justice and the governor or city mayor concerned on any verified complaint presented to him. SECTION 9. The Land Registration Authority Administrator may review, revise, reverse, modify or affirm any decision of the reconstituting officer or Register of Deeds. Any appeal shall be filed within fifteen days from the receipt of the judgment or order by the aggrieved party. SECTION 10. Any interested party who by fraud, accident, mistake or excusable negligence has been unjustly deprived or prevented from taking part in the proceedings may file a petition in the proper court to set aside the decision and to reopen the proceedings. The petition shall be verified and must be filed within sixty days after the petitioner learns of the decision but not more than six months from the promulgation thereof. SECTION 11. A reconstituted title obtained by means of fraud, deceit or other machination is void ab initio as against the party obtaining the same and all persons having knowledge thereof. SECTION 12. Any person who by means of fraud, deceit or other machination obtains or attempts to obtain a reconstituted title shall be subject to criminal prosecution and, upon conviction, shall be liable for imprisonment for a period of not less than two years but not

exceeding five years or the payment of a fine of not less than Twenty thousand pesos but not exceeding Two hundred thousand pesos or both at the discretion of the court. Any public officer or employee who knowingly approves or assists in securing a decision allowing reconstitution in favor of any person not entitled thereto shall be subject to criminal prosecution and, upon conviction, shall be liable for imprisonment of not less than five years but not exceeding ten years or payment of a fine of not less than Fifty thousand pesos but not exceeding One hundred thousand pesos or both at the discretion of the court and perpetual disqualification from holding public office. SECTION 13. All acts, laws, decrees, executive orders, or parts thereof which are inconsistent with any of the provisions of this Act are hereby repealed or modified accordingly. SECTION 14. This Act shall likewise cover administrative reconstitution of copies of original certificates of titles destroyed by fire, flood or other force majeure within a period of fifteen years before the effectivity of this Act. SECTION 15. circulation. This Act shall take effect upon its publication in three newspapers of general

Approved: July 17, 1989

[EXECUTIVE ORDER NO. 321] July 02, 2004 AMENDING FURTHER EXECUTIVE ORDER NO. 45, SERIES OF 1993, AS AMENDED, WHICH PRESCRIBES THE ADOPTION OF THE PHILIPPINE REFERENCE SYSTEM OF 1992 AS THE STANDARD REFERENCE SYSTEM OF SURVEYS IN THE PHILIPPINES <div align="justify"><b>WHEREAS</b>, due to the inadequacy of the old survey system to meet the governments demands for highly accurate surveying and mapping programs, a new geodetic control network, known as the Philippine Reference System of 1992 (PRS 92), was adopted as the new standard reference for all surveying and mapping activities in the country in pursuant to Executive Order EO No. 45, January, 1993, as amended by EO No. 280 dated August 14, 2000;<br><br><b>WHEREAS</b>, the new System was also envisioned to support sustainable management and development of environment and natural resources, and to establish more accurate special positioning for infrastructure activities;<br><br><b>WHEREAS</b>, there is a need to extend the transition period for the integration of old surveys in the PRS 92;<br><br><b>NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO,</b> President of the Republic of the Philippines, by virtue of the power vested in me by law, do hereby order:<br><br><b>SECTION 1.</b> The transition period for the integration of old surveys into PRS 92 is further extended up to the end of year 2010.<br><br><b>SEC. 2.</b> The Department of Environment and Natural Resources is hereby ordered to allocate the necessary funds, issue implementing guidelines, and designate an office which will oversee the implementation of this Order.<br><br><b>SEC. 3.</b> This Order shall take effect immediately.<br><br><b>Done</b> in the City of Manila, this 2nd day of July, in the year of our Lord, Two Thousand and Four.<br><br><div style="text-align: right;"><b>(Sgd.) GLORIA MACAPAGALARROYO</b><br></div><br>By the President:<br><br><b>(Sgd.) ALBERTO G. ROMULO</b><br><i>Executive Secretary</i></div>

4202 OFFICIAL GAZETTE VOL. 104, No. 23

MGA ALITUNTUNIN KAGAWARAN, KAWANIHAN AT TANGGAPAN AT MGA KAUTUSANG PAMPANGASIWAAN

[DEPARTMENT, BUREAU AND OFFICE ADMINISTRATIVE ORDERS AND REGULATIONS]

National Housing Authority

REPUBLIC OF THE PHILIPPINES OFFICE OF THE PRESIDENT

NATIONAL HOUSING AUTHORITY QUEZON MEMORIAL ELLIPTICAL ROAD, DILIMAN, QUEZON CITY 1100 TEL. NOS. 928-4561 TO 66
IMPLEMENTING RULES AND REGULATIONS OF REPUBLIC ACT NO. 7999 DECLARING A TOTAL OF ONE HUNDRED TWENTY (120) HECTARES OF THE TALA ESTATE AS ALIENABLE AND DISPOSABLE AND CONVERTING THEM INTO HOUSING SITES

RULE I GENERAL PROVISIONS SECTION 1. Purpose and General Coverage This Implementing Rules and Regulations (IRR) is promulgated pursuant to section 2 of Republic Act No. 7999 (R.A. 7999), for the purpose of prescribing the necessary rules and regulations for the orderly implementation of the one hundred twenty (120) hectares Tala Estate Housing sites. This IRR shall cover the identification, classification and disposition to qualified beneficiaries of Tala Estate declared areas under RA No. 7999. SEC. 2. Definition of Terms For purposes of this IRR, the following terms or words and phrases shall mean or be understood as follows: a.) Act. Refers to Republic Act No. 7999, entitled "An Act Declaring a Total of One Hundred Twenty (120) Hectares of the Tala Estate, Kalookan City as Alienable and Disposable and Converting them into Housing Sites, Amending for the Purpose Certain Section of Presidential Proclamation No. 843, and for Other Purposes". b.) Ad Hoc Committee. Refers to the committee composed of representatives from the National

Housing Authority (NHA), the Department of Health (DOH), the Presidential Commission for the Urban Poor (PGUP), the City Government of Caloocan, a nongovernment organization concerned with hansenites, an urban poor people's organization and the hansenites associations. c.) Alienable. Means lawfully transferable, such as real properties. d.) As IS Where Is. Refers to a planning principle wherein as much as possible the size of disposable lot occupied by the house/structure of a project beneficiary documented during the census and tagging operations conducted in March 1997 becomes the basis for determining the area, covered by the lot award.e.) Beneficiary Selection Guidelines. Refer to the general policy on beneficiary selection based on the vision and mission of the Project duly approved by the Ad Hoc Committee. f.) Censused Owner. Any individual whose name appears in the 1997 NHA Masterlist as owner of a tagged dwelling unit. g.) Cost Recovery. Refers to the recovery of project costs from beneficiaries of Tala to include expenses incurred in lot production, administrative.cost and other charges but excluding infrastructure works undertaken by the City Government of Caloocan and other government agencies. h.) Development. Refers to the provision of basic amenities such as water and JUNE 9, 2008 OFFICIAL GAZETTE 4203 sewerage systems, electricity, open spaces, and circulation network for vehicular and pedestrian movement to a blighted community. i.) Disposable Lots. Refers to the inventory of lots classified as residential or institutional subject for disposition to the Tala project beneficiaries either by way of sale or lease. j.) Hansen Patients. Refers to persons

afflicted with leprosy and registered patients of Dr. Jose N. Rodriguez Memorial Hospital and either confined in the hospital-or rooiding within the area covered by this Proclamation. k.) Homeowners Association (HOA). Refers to a group or association of qualified lot owners registered with the Housing and Land Use Regulatory Board (HLURB). For this purpose, the Tala Homeowners Association, Inc. (THAI) is particularly referred to as the HOA. I.) Illegal Occupants. As defined under PD 1472, shall 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-ininterest. m.) Implementing Rules and Regulations. Refer to the policies and procedures for the implementation of Tala Development Project pursuant to RA 7999. n.) Infrastructure. Refers to any horizontal and vertical physical development introduced within the Tala Development Project such as but not limited to schools, roads, bridges and roads alleys. o.) Institutional Lots. Refer to the lot/s allocated for schools, churches, orphanages, health and hospital facilities and includes areas identified as such in the Master Development Plan. p.) Inter-Agency. Refers to the collaborative arrangement among government and private agencies, such as the Department of Health (DOH), Local Government Units (LGU), Barangay, Presidential Commission for the Urban Poor (PGUP), Housing and Urban Development Coordinating Council (HUDCC), Commission on Human Rights (CHR). Philippine National Police (PNP). National Housing

Authority (NHA) and Tala Homeowners Association, Inc. (HOA). q.) Legal Heir. Refers to person/s who are either legal spouse, children and other relatives entitled by law to inherit property/ies. r.) Leprosarium. Refers to the Dr. Jose N. Rodriguez Memorial Hospital incharge of the rehabilitation and custodial care of the Hansen patients. s.) Master Development Plan. The overall schematic design for the cohesive conversion of Tala lands aside from its intended utilization pursuant to RA 7999. f.) Maximum Retention/Minimum Displacement. This refers to the planning concept of minimum chopping/dismantling of existing dwelling units affected by development based on the approved subdivision plan to avoid waste and unnecessary displacement and to preserve the housing stock. u.) Multiple Structure Owner- a person who owns more than one (1) tagged/ untagged structure: v.) Permit to Occupy - refers to the authority granted by NHA to project beneficiaries to move/transfer from a dangerous place to a safe location; w.) Professional Squatters - as defined in RA 7279, refer to individuals or
0499988

4204 OFFICIAL GAZETTE VOL. 104, No. 23

groups who occupy lands without the expressed consent of the landowners and who have sufficient income for legitimate housing. The term shall also apply to persons who have previously been awarded homelots or housing units by the Government but who sold, lease or transferred the same to settle illegally in the same place or another urban area, and non-bonafide occupants and intruders of land reserved for socialized housing. x.) Vacant Lots/Area - refer to real property/ties intended as residential, institutional or open space free from

any form of structures or which are unoccupied. Other terms already defined in the approved Beneficiary Selection Guidelines by the AD-HOC Committee, dated 18 December 2001, which have a bearing on the preceding Articles and Sections shall be adopted and form part of this IRR by reference. RULE II DECLARED AREAS SECTION 1. Declaration of a Total of One Hundred Twenty (120) Hectares of the Tala Estate as Alienable and Disposable and their Conversion into Housing Sites. Of the eight hundred eight (808) hectares of the Tala Estate located in Caloocan City (North) reserved under Presidential Proclamation No. 843 for Tala Leprosarium and settlement site for hansenites and their families; a pilot housing development project; a civic center; welfare project; and for other housing and urban development purposes, the following areas are hereby declared and converted as follows: a. Seventy (70) hectares of the one hundred thirty (130) hectares reserved for the leprosarium and resettlement sites of the hansenites and their families under Proclamation No. 843 are hereby declared alienable and disposable and converted as housing site specifically described in and embraced by TCT Nos. T-381732 and T-381731 issued by the Register of Deeds for Caloocan City. b. The fifty (50) hectares reserved for the plants, installations and pilot housing project of the National Housing Corporation (NHC) under the same proclamation, are hereby declared as alienable and disposable, Twenty nine (29) hectares of the said fifty (50) hectares shall be converted into a housing site specifically described in and embraced by TCT Nos. C-3437829 to C-344185 and C-344188 to 344223 all in Lot 5, Psd-00-050227 and Lots 3-A, 3-C and 3-D, Psd-00050226 with TCT Nos. T-343781,

T-343783 and T-343784 respectively, issued by the Register of Deeds for Caloocan City. RULE III PROJECT BENEFICIARIES SECTION 1. The seventy (70) hectares as described under Section 1a, Rule II hereof shall be for the use as a housing site for the following beneficiaries: a. Bona fide residents of the area as of July 15, 1996; b. Hansenites who are patients of the Tala Leprosarium and their immediate families residing in the area as of July 15, 1996; c. Qualified employees of the Department of Health who must have been assigned in the Tala Leprosarium and residents thereat for at least five years as of July 15, 1996. SEC. 2. The twenty-nine (29) hectares area described under section 1b, Rule II hereof declared as housing site shall be for the exclusive use and benefit of the bona fide and qualified residents of the area as of July 15, 1996. SEC: 3. Residential lots awarded under this Act shall not be transferred or alienated for a period of twenty-five (25) years, except by way of hereditary succession. The reckoning date of the twenty-five (25) years JUNE 9, 2008 OFFICIAL GAZETTE 4205 restriction period shall be the date when the lot award has been accepted by the concerned beneficiary.
RULE IV
9C3PLIMENTING A6ENCY

SECTION 1. The National Housing Authority (NHA) shall be the agency primarily responsible for the effective implementation of this Act. For this purpose, the NHA shall closely coordinate with the DOH, the community affected by the declaration and other government and nongovernment agencies to effectively enforce the provisions of this Act, subject to existing policies on cost recovery, housing planning and development and other existing laws. RULE V Ao Hoc COMMITTEE SECTION 1. An Ad Hoc Committee is

hereby created with the following members: a. National Housing Authority; b. Department of Health; c. Presidential Commission for the Urban Poor; d. City Government of Caloocan; e. Representative from non-government organization concerned with hansenites; f. Representatives from an urban poor people's organization; and g. Representatives from hansenites association. SEC. 2. The primary function of the Ad Hoc Committee is to determine who are the qualified project beneficiaries. For this purpose, it shall issue the necessary guidelines and procedures for the identification, selection and qualifications of project beneficiaries under this Act. RULE VI SITE DEVELOPMENT POLICIES SECTION 1. The National Housing Authority as the lead agency shall implement all activities pertaining to the housing project in consultation withl the HOA; SEC. 2. The NHA Census tag numbers are non-transferable. The sale, disposition and/or transfer of NHA census tags are strictly prohibited. Violation thereof shall cause the automatic disqualification of the censused tag owner from the project. SEC. 3. Vacant areas identified under Sections 1a and 1b of Republic Act No. 7999 cannot be occupied by any household unless authorized in writing by the National Housing Authority. Violators shall be considered as illegal occupants as defined under Section 2, Presidential Decree No. 1472 and shall be dealt with in accordance with existing laws, rules and regulations. SEC. 4. Regular coordination with community leaders shall be done by the National Housing Authority through formal and informal meetings towards an effective feedback mechanism pertaining to project status and community concerns. SEC. 5. The "Pahayag" shall be the official bulletin and/or publication of the NHA pertaining to the Tala Development Project. SEC. 6. The NHA in consultation with

DOH, HOA and other concerned agencies shall facilitate a Master Development Plan on the transformation of Tala areas covered by Sections 1a and 1b of Republic Act No. 7999 into a new town center that would catalyze the socio-economic development of the occupants. SEC. 7. Lot allocation and awarding of residential lots shall be made in accordance with the principle of "AS IS WHERE IS" and in accordance with the provisions stipulated in the Beneficiary Selection and Guidelines duly approved by the AD-HOC Committee; SEC. 8. Institutional lots shall be offered for sale to actual occupants as first priority with right of first refusal. For this purpose, failure of the actual occupants to buy the occupied institutional lot shall give the NHA right to offer the same to other interested and qualified buyers. In this event, the 4206 OFFICIAL GAZETTE VOL. 104, No. 23 party/ies occupying the institutional lots shall voluntarily vacate the property or be subjected to summary eviction. SEC. 9. Land development components such as roads, alleys, play and mini-park, area occupied by deep well and water tank, water and sewerage system shall be turned over to the City Government of Caloocan or other concerned agencies after project completion pursuant to PD 1216. RULE VII HOUSING PROGRAM, PLANNING AND DEVELOPMENT SECTION 1. The NHA shall evolve a comprehensive development plan or "Master Development Plan" that would actualize the vision and aspiration/mission of the qualified beneficiaries of the Tala Development Project. The Master Development Plan sha^ adopt the following programs and components: 1.1 Priority for development shall be the areas identified under Sections 1a and 1b of Republic Act No. 7999 where the dwelling units of the project beneficiaries are found; 1.2 Vacant areas shall be awarded to qualified project beneficiaries who have no lot allocation/award and/or the same may be utilized for mediumrise housing and other housing

approaches so as to accommodate more qualified project beneficiaries; 1.3 Institutional and economic/livelihood facilities shall be provided and included in the Master Development Plan, as well as other basic amenities such as playgrounds, parks, circulation areas and open space for community facilities. 1.4 Residential lots/units shall be designed to accommodate the total number of qualified residents/ beneficiaries of the Tala Development Project as listed in the Masterlist dated 30 March 1997. 1.5 The concept of maximum retention and minimum displacement of existing dwelling units shall be observed in the planning of residential areas. 1.6 Projects beneficiaries occupying an area of more than 300 square meters shall be awarded a maximum of 300 square meters. Excess thereof shall be subdivided among their qualified family members. RULE VIII COST RECOVERY SECTION 1. The selling price for all the disposable lots shall be based on NHA Policy Guidelines on Pricing and cost recovery; SEC. 2. The NHA, together with the Homeowners Association and the Department of Health shall formulate the pricing proposal to be approved by the NHA Management. RULE IX ESTATE MANAGEMENT SECTION 1. Sale and Disposition of Residential Ex>ts Allocation and awarding of residential homelots shall be in accordance with the "Beneficiary Selection Guidelines" as approved by the Ad-Hoc Committee on December 18, 2001 which forms part of this IRR by reference. SEC. 2. Terms and Conditions of Award a. The modes of disposition shall be as follows: 1. Cash Sale- the purchase price'of the lot shall be paid through a "one-time

cash payment. ^_ 2. Installment safe through In-House Financing under a Conditional Contract to Sell: a. The project beneficiary shall make a down payment equivalent to 1.5% JUNE 9, 2008 OFFICIAL GAZETTE 4207 of the selling price and the balance thereof shall be amortized over a maximum period of 30 years with 6% interest rate per annum. In no case, however, shall the repayment period exceed beneficiary's age of 70 years old at the time of application. Provided that, Hansen beneficiaries shall be exempt from the 1.5% down payment requirement and the 6% amortization interest. b. In case of death of project beneficiary, unpaid balance of the purchase or selling price shall be assumed by the legal heirs of such beneficiary. In the absence of legal heir, the property awarded shall revert back to NHA and shall be reawarded to other qualified project beneficiary. c. Project beneficiaries who are over 60 years of age with next of kin may avail of the following options: 1. May be substituted as awardee by one or more of their qualified next-of-kin; or 2. Retain the award upon written petition and submission of an affidavit of support from children or next-in-kin and to repay the awarded lot within a period of five (5) years. 3. Home Buyer's Financing - the project beneficiaries may opt to purchase the awarded lot through mortgage take out of the Home Development Mutual Fund (HDMF-Pag-ibig) under its Expanded Housing Loan Program. b. The project beneficiaries shall not sell, convey, transfer or dispose in any manner the awarded lot within twentyfive (25) years from contract effectivity, except conveyance by way of hereditary succession.

c. Upon approval of lot award, fees, taxes and charges that the Local Government may assess shall be the responsibility of the awardeebeneficiary. d. The project beneficiary shall abide by the occupancy rules and regulations of the NHA. Any violations thereof shall be considered a breach of conditions of his contract and a ground for the cancellation of award;

e. Upon full payment of the awarded lot, the NHA shall execute a Deed of Sale in favor of the concerned beneficiaryaward ee. SEC. 3. Sale and Transfer of Structures a. The sale, mortgage, encumbrance or any manner of disposition of a tagged structure/dwelling unit to a nonbeneficiary of the project is absolutely prohibited. Any sale, encumbrance or other modes of disposition shall disqualify the owner of the tagged structure from being an awardeebeneficiary of the project.
b. Absentee censused households and uncensused structure owners shall comply with any of the following options for the disposition of their structures or dwelling units within (30) days from receipt of formal notice from NHA: 1. Sell the structure or dwelling unit to any censused household actually occupying the same, subject to the prior written approval of NHA; 2. Sell the structure or dwelling unit to any non-occupant censused household, subject to the waiver of the censused occupant to his right of preemption or first refusal; 3. Voluntarily dismantle the structure or dwelling unit if unoccupied or being rented out to a censused household falling under the preceding options. c. Multiple Structure Owners (MSO) shall be entitled to retain only one structure. They shall dispose of the other structures, with NHA's consent, in favor of the following:

4208 OFFICIAL GAZETTE VOL. 104, No. 23

1. Gensused occupants of subject structure; 2. Censused households other than the censused occupants, subject to the waiver of the latter of his right of preemption or first refusal. In case the subject structures cannot be disposed of in accordance with the foregoing modes, the Multiple Structure Owner shall voluntarily dismantle the same.
SEC. 4. Repair of Existing Structures a. No major repair or extension to existing structures/dwelling units shall be undertaken without prior written permission from the NHA A censused household, authorized to make repair works to his structure/dwelling unit, shall be required to sign a conforme acknowledging the temporary nature of work and absolving NHA from any liability for the subsequent removal or damage as a result of implementation of the approved development plan. b. Only censused house owner shall be eligible to apply for a permit to make repair works to his structure. Provided that, censused occupants may be granted permit to repair if he can show that the house owner has continuously refused or neglected to make the necessary repairs without valid justifications. c. The NHA shall permit any censused household whose structure or dwelling unit is destroyed by fire, flood or any force majeure to reconstruct or repair his structure or dwelling unit in the same location within the same project area as determined by NHA. SEC. 5. Dismantling and Relocation of Structures or Dwelling Units a. The following categories of structures/ dwelling units, together with all related improvements, shall be subject for dismantlings 1.Any structure or dwelling unit constructed after completion of the NHA Census on 30 March 1997 and without written approval of the Authority which is not disposed to a censused household within the prescribed period.

2. Any structure or dwelling unit owned by a household found not qualified for lot allocation in Tala under the Beneficiary Selection Guidelines, which was not disposed to a censused household within the prescribed period. 3. Any structure or dwelling unit owned by a censused household but found disqualified for lot award under the Beneficiary Selection Guidelines who has not disposed the same to a censused household within the prescribed period. 4. Any structure or dwelling unit affected by the introduction of infrastructure based on the approved Master Development Plan. 5. Any structure or dwelling unit found posing danger to life and/or property. b. The authority shall inform the structure owner of the decision to dismantle the said structure/dwelling unit through proper notice. c. The owner who fails to comply with the options and conditions stated in the formal notice from the Authority with respect to the disposition of his structure, dwelling unit and all related improvements shall be subject to ejectment and his structure/dwelling unit shall be dismantled by the Authority in accordance with Section 2 of Presidential Decree 1472, Section 28 of Republic Act 7279 (UDHA) and other related issuances. d. The National Housing Authority shall dismantle any structure or dwelling unit where an unauthorized major repair or extension was introduced and not removed despite notice to do so. JUNE 9, 2008 OFFICIAL GAZETTE 4209 e. In the case of an illicit or unauthorized structure/dwelling unit about to be constructed or undergoing construction, the policy to stop/arrest shall be applied and enforced by the Barangay Officials, PNP personnel, representatives of homeowners in coordination with NHA. f. Dismantling shall be without prejudice

to any legal proceedings the NHA may consider appropriate in accordance with existing laws, policies, rules and regulations. g. Any occupant project beneficiary affected by Sections 5(a)(4) and (5), Rule IX hereof may transfer to a lot assigned by the Authority with the assistance of HOA and acceptable to said project beneficiary.
RULE X

DISPOSITION OF INSTITUTIONAL LOTS

SECTION 1. Institutional lots as defined under Section 2(o), Rule I hereof shall include those areas identified as such in the proposed Tala Master Development Plan. The coverage may be expanded by the NHA in consultation with the HOA and DOH. SEC. 2. The sale and disposition of institutional lots shall be in accordance with NHA policy in consultation with the HOA and the DOH. RULE XI

FINAL PROVISIONS SECTION 1. Amendment a. As the need arises, the IRR may be recommended for amendment by the Project Implementation Team for approval by the General Manager of NHA; b. Any amendment to this IRR shall be applicable to all activities undertaken after its effectivity. SEC. 2. Repealing Clause. Presidential Proclamation No. 843 and other laws, executive orders, proclamations and administrative rules and regulations inconsistent with the provisions of this Act are hereby repealed or modified accordingly. SEC. 3. Separability Clause. If any provision in this IRR, or application of such provision to any circumstance, is declared invalid or unconstitutional, the other provisions not affected thereby shall remain, valid and subsisting. SEC. 4. Effectivity Clause. This IRR shall take effect fifteen (15) days after its publication in the Official Gazette

or in a newspaper of general circulation. (Sgd.) FEDERICO A. LAXA General Manager Decembr 11, 2007.