4 Towards Efficient Local Government Housing Regulations

CREBA proposed a bill mandating the creation of Local Housing Boards in all cities, including first to third class municipalities, all over the country, amending for the purpose related provisions of R.A. 7160 or the Local Government Act of 1991.

In the 15th Congress, CREBA vehemently opposed the passage of the proposed measure because it merely sought to add another layer of bureaucracy by creating a ministerial body whose only function is to recommend housing-related decisions for dispensation by the lo- cal councils or sanggunians.

Such system will be dangerous and counter-productive as it will only become yet another stage of bureaucratic red tape in the local LGUs that will consequently increase development cost. Developers will be left with no other choice but to pass on the extra cost to home buyers.

In the 16th Congress, however, our Lawmakers heeded the contention of the private sector and made it a workable measure by allowing all the housing functions and powers of the local councils to be fully taken over by the board and not merely duplicated.

Senate Bill No. 658 au- thored by housing committee chair Senator Joseph Victor “JV” G. Ejercito bestows upon the local housing boards the power to issue preliminary and/or final development permits after due evaluation of subdivision schemes and development plans of all housing projects in a locality, among other powers.

The bill likewise provides for ample consultation with stakeholders including locally-operating agencies, community groups, as well as private developers, with the mayor serving as chairperson, and the vicemayor as vice-chairperson.

Since the function of approving development permits for subdivision projects was devolved to the local government units by virtue of the Local Government Code of 1991, also known as Republic Act No. 7160, our development cost has, for some reason, increased, and the development period became substantially longer.

This is not to mention the situation where some, if not most, of our LGUs lack the depth of technical capacity for effective shelter and urban development and management that is present in national agencies such as the Housing and Land Use Regulatory Board (HLURB). In all fairness, local officials are required to perform other equally impor- tant functions for their constituencies, making it hard to devote the needed time and focus in meeting their respective housing challenges.

The housing industry is no doubt a vital sector in our country’s future. It is a key sector of our economy that addresses not only the problem of homelessness but provides millions of jobs to the unemployed and billions of revenues to government.

However, in order for the private sector to fulfill its Constitutional mandate to assist in government efforts towards implementing a continuing program of urban land reform and housing to serve the underprivileged and homeless, government must harmonize its housing policies and do away with conflicting, unreasonable and overlapping requirements imposed upon an already heavily-taxed and highly-regulated industry.

When passed into law, the bill effectively repeals and amends key provisions of R.A. 7160, particularly the duties and functions of the city/municipal councils.

With the bill re-aligned towards this direction, we have a workable solution that is winwin for the public and private sectors, and the benefits that will be derived makes home ownership another step closer to Juan dela Cruz.