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Social Housing One-Stop Processing Center (SHOPC)

In 1992, Congress enacted Republic Act No. 7279, otherwise known as the Urban Development and Housing Act (UDHA). Section 18 of the law imposed a 20% social housing quota on developers undertaking subdivision projects. At the same time, Section 20 provided incentives to said developers, including the creation of one-stop offices for the processing, approval and issuance of various clearances, permits and licenses.

To operationalize said Section 20, CREBA formulated an Executive Order (EO) for the creation of a Social Housing One-Stop Processing Center (SHOPC) in all regions of the country.

The CREBA formulation was adopted verbatim by the Office of the President, and was promulgated by then President Fidel Ramos as EO 184 on 27 June 1994.

The pilot SHOPC held offices at the CREBA Building in Quezon City. To manifest its commitment to the social housing program and the successful implementation of the SHOPC, the Chamber allocated the office space for the free use of the SHOPC, and also donated office furniture, office equipment and supplies.

Given the full cooperation of the agencies concerned and the smooth working relationships of their representatives or “desks”, the pilot SHOPC was poised for success – until the Department of Agrarian (DAR) decided to torpedo it by being uncooperative.

As the issuance of DAR clearances was the initial prerequisite before other permits or clearances can be processed, lack of cooperation from the DAR effectively rendered EO 184 moribund.

EO 184

CREATING SOCIALIZED HOUSING ONE-STOP PROCESSING CENTERS TO FACILITATE THE PROCESSING AND ISSUANCE OF PERMITS, CLEARANCES, CERTIFICATIONS AND LICENSES APPROPRIATE AND NECESSARY FOR THE IMPLEMENTATION OF SOCIALIZED HOUSING PROJECTS, AND DIRECTING ALL GOVERNMENT AGENCIES CONCERNED TO SUPPORT THE OPERATIONS OF THE SAID CENTERS

WHEREAS, consistent with Section 9, Article III of the Constitution which mandates the provision of decent housing and basic services to the underprivileged and homeless, the present Administration through the various housing agencies of the government, has embarked on a massive socialized housing program;

WHEREAS, to attain targets set under the government’s socialized housing program, maximum private sector participation is imperative;

WHEREAS, in undertaking socialized housing projects contemplated under Republic Act No. 7279 otherwise known as the Urban Development and Housing Act of 1992, the developer/proponent must secure the appropriate and necessary permits, clearances, certifications and licenses from various government agencies which include the Department of Agrarian Reform (DAR), the Department of Environment and Natural Resources (DENR), the Department of Agriculture (DA), the Housing and Land Use Regulatory Board (HLURB), and the local government units (LGUs) concerned;

WHEREAS, despite various tax and other incentives offered by government to developers/proponents of socialized housing projects, maximum private sector participation is not realized in view of existing processes in the issuance of permits, clearances, certifications and licenses which are found to be cumbersome and time-consuming, thereby causing considerable delays in project implementation and resulting in added costs that further impair the affordability of socialized housing units;

WHEREAS, Section 20 of Republic Act No. 7279 mandates the creation of one-stop offices in the different regions of the country to handle the processing, approval and issuance of permits, clearances, certifications and licenses and that the same be issued within ninety (90) days from submission of all requirements by the developer/proponent; and

WHEREAS, there is a need to implement the above-mentioned statutory mandate to further strengthen

the on-going efforts to streamline bureaucratic procedures and hasten government processing and issuance of permits, clearances, certifications and licenses.

NOW, THEREFORE, I, FIDEL V. RAMOS, President of the Republic of the Philippines, by virtue of the powers vested in me by the law, do hereby order:

Section 1. Creation of Socialized Housing One-Stop Processing Centers – The creation of Socialized Housing One-Stop Processing Centers (SHOPCs) is hereby directed in all the administrative regions of the country to be manned by representatives from the following agencies:

  1. The Housing and Urban Development Coordinating Council (HUDCC);
  2. The Housing and Land Use Regulatory Board (HLURB);
  3. The Department of Agrarian Reform (DAR);
  4. The Department of Environment and Natural Resources-Land Management Bureau (DENR-LMB);
  5. The Department of Agriculture (DA); and
  6. The Department of the Interior and Local Government (DILG);

The above-named agencies are hereby directed to designate an organic official/employee to man their respective Desks in all SHOPCs. In this connection, the Heads of said agencies shall, subject to existing laws and as far as practicable, delegate sufficient authority to their respective Desks to evaluate and process applications to undertake socialized housing projects, as well as supporting documents therefor, render final or appropriate action thereon, and sign and issue the corresponding permits, clearances, certifications and licenses therefor.

The Chamber of Real Estate and Builders Associations, Inc. (CREBA) or any other non-governmental organization involved in socialized housing projects, and the League of Governors and City Mayors of the Philippines (LGCMP), may be invited and asked by the HUDCC to set up their Desks in the SHOPCs to provide private sector monitoring of the operations of the SHOPCs and provide such other services to facilitate coordination among and between the SHOPC Desks, other government agencies and applicant developers/proponents.

Section 2. Powers of the SHOPCs. – Subject to existing laws and the provisions of the preceding Section, the SHOPCs shall, within their respective regions and through the respective Desks of the above-named agencies, exercise the following powers:

  1. Issue Locational Clearances, Conversion Orders or Certificates of Exemption (from the coverage of the Comprehensive Agrarian Reform Program [CARPI), Development Permits and Licenses to Sell in favor of applicant developers/proponents of socialized housing projects;
  2. Issue Environmental Clearance Certificate whenever required;
  3. Determine disturbance compensation for tenant-farmers/farmworkers affected by the land conversion and ensure that affected tenant-farmers/farmworkers are duly compensated;
  4. Ensure the simplification of processing and approval of licenses, permits and clearances to comply with the 90-day period mandated under Section 20 of Republic Act No. 7279; and
  5. Call on other agencies/entities for support/assistance as may be deemed necessary to attain the objectives set forth under this order.

Section 3. Agency Responsibilities. – The SHOPC Desks shall have the following responsibilities:

1. HUDCC Desk

  • Coordinate, monitor and exercise administrative supervision over the SHOPC;
  • Determine administrative and operational costs of the SHOpe and pro-rate the contribution of each Desk to said costs;
  • In consultation with the agencies concerned, determine the number of staff/personnel required for the effective operation of the SHOPC;
  • Identify and call upon other government agencies or offices whose support is vital to the operation of the SHOPC;
  • Prepare and submit to the HUDCC head office, status reports on the operations and performance of the SHOPC; and
  • Perform such other responsibilities as may be required.

2. HLURB Desk

  • Accept applications for socialized housing projects;
  • Inspect the proposed project site and determine its suitability for socialized housing purposes;
  • Recommend to the DAR Desk the conversion of lands suitable for socialized housing;
  • Evaluate the application, technical plans as well as other supporting documents and papers in support of the application, and recommend final approval thereof to the concerned LGU;
  • Issue Locational Clearances and Licenses to Sell;
  • Subject to par. 4 (a) below, certify that the proposed project site is not included in the DENR list/map of environmentally critical areas; and
  • Perform such other responsibilities as may be required.

3. DAR Desk

  • Determine and fix the amount of disturbance compensation based on the formula jointly set by the Department of Agriculture (DA) and Department of Agrarian Reform (DAR) pursuant to Sec. 7 (1) of RA No. 6389, and ensure that the affected tenant-farmers/farmworkers are duly compensated;
  • Evaluate applications for land conversion/exemption from CARP coverage that may be referred or recommended by the HLURB Desk, and in meritorious cases, issue conversion/exemption certificates therefor; and
  • Perform such other responsibilities as may be required.

4. DENR-LMB Desk

  • Issue Environmental Clearance Certificates relative to applications for projects located within environmentally critical areas but only until such time that the SHOPCs have been furnished with maps and listings of such areas;
  • Verify land surveys and other pertinent plans submitted by applicant developers/proponents;
  • Evaluate and approve subdivision surveys; and
  • Perform such other responsibilities as may be required.

5. DILG Desk

  • Coordinate with the concerned Sanggunian/LGU to facilitate the required approvals for the project, viz., development/building permits; and
  • Perform such other responsibilities as may be required.

6. CREBA or Non-Governmental Organization or LGCMP Desks

  • Assist the HUDCC in monitoring the operations and activities of the SHOPCs to ensure compliance with the provisions of this Order and the guidelines which may be promulgated in connection therewith; and
  • Conduct liaison activities between the various Desks of the SHOPCs and other government agencies, viz., the various offices of the Provincial/City Registers of Deeds, including providing manpower support to the SHOPCs, to facilitate processing and approval of applications/documents.

Section 4. Processing Guidelines and Flow Chart. – The agencies named in Section 1 hereof shall jointly promulgate specific guidelines as well as a flow chart to expedite and simplify the processing and   approval of applications for permits, clearances, certifications and licenses required to undertake socialized housing projects, in compliance with the mandate that such applications be acted upon within the 90-day period prescribed under Section 20 of Republic Act No. 7279, which guidelines may be revised from time to time, when the need arises.

Section 5. Submission of Certain Documents and Maps to the SHOPCs by Concerned Agencies. – To ensure the successful operation of the SHOPCs, the following agencies shall, within thirty (30) days from issuance of this Order, submit to the HUDCC, the following documents and maps, which shall be updated regularly, but at least every quarter, whenever requested:

1. DA

  • Master list and corresponding maps of irrigated and irrigable lands; and
  • Complete listing of the crops and value of annual yields on irrigated and irrigable lands and other types of agricultural lands.

2. All Cities and Municipalities

  • Town/city zoning plans;
  • Land-use maps and zoning ordinances; and
  • List and corresponding maps of lands identified as suitable for socialized housing projects/purposes.

3. DENR-EMB

  • Complete list and corresponding maps of environmentally critical areas and lands actually used or reserved as parks for flora and fauna, forests and watersheds, and other similar purposes, and other areas necessary, to maintain or assure ecological balance and environmental protection.

4. HLURB

  • Land-use maps and town/city plans approved by the HLURB prior to June 15, 1988; and
  • List and corresponding maps of urban and urbanizable areas.

5. DAR

  • Master list and maps of lands covered by Voluntary Offer to Sell (VOS), Notice of Acquisition (NA) or Notice of Coverage issued pursuant to the CARP; and b. Master list of bona-fide tenant-farmers duly identified as CARP beneficiaries.

Section 6. Developer/Proponent’s Undertaking and Penalties for Non-Compliance. –

(a) To assure completion of the socialized housing project, the applicant developer/proponent shall file together with his application a sworn Undertaking stating that the proposed socialized housing project shall be completed or fully developed within a period of one (1) year from the issuance of the permits, clearances, certificates and licenses therefor for projects having a land area of less than five (5) hectares, and at the rate of at least five (5) hectares per year for projects with a land area of five (5) hectares or more.

(b) In addition to the penalties imposed under existing laws, executive and administrative issuances, the following sanctions shall be imposed on a developer/proponent who has failed to comply with his Undertaking, made misrepresentations in his application, or is found to have committed any act or omission to circumvent the intent and purposes of this Order, as follows:

  • Cancellation/suspension of previously issued permits, clearances, certifications and licenses in connection with the approved socialized housing project; and/or
  • Permanent or limited suspension from engaging in any business related to real estate development or housing projects; and/or
  • Reversion of the land (project site) to its original status as agricultural land.

The agencies named in Section 1 hereof shall jointly promulgate the appropriate guidelines to implement the provisions of this section.

Section 7. Fees. – In addition to the fees fixed and collected by the concerned agencies in connection with the permits, clearances, certifications and licenses to be issued in favor of an applicant developer/proponent, the SHOPCs are authorized to impose additional fees and charges as may be determined by the HUDCC.

Section 8. Administrative and Operational Costs. – The component agencies shall include in their respective annual budgets their pro-rata share in the administrative and operational costs of the SHOPCs, in consultation with the HUDCC.

Section 9. Separability Clause. – In the event any provision hereof is declared invalid by any competent court or tribunal, the other provisions hereof unaffected thereby shall remain in full force and effect.

Section 10. Repealing Clause. – All executive or administrative issuances or parts thereof inconsistent herewith are hereby amended or modified accordingly.

Section 11. Effectivity. – This Order shall take effect immediately.

DONE in the City of Manila, this 27th day of June in the year of Our Lord, Nineteen Hundred and Ninety Four.

By the President:

(Sgd.) TEOFISTO T. GUINGONA, JR.

(Sgd.) FIDEL V. RAMOS

President of the Philippines

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