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[ PRESIDENTIAL DECREE NO. 757, July 31, 1975 ]

CREATING THE NATIONAL HOUSING AUTHORITY AND
DISSOLVING THE EXISTING HOUSING AGENCIES, DEFINING
ITS POWERS AND FUNCTIONS, PROVIDING FUNDS THEREFOR
AND FOR OTHER PURPOSES.
WHEREAS, the magnitude of the housing problem of the country has grown into such
proportions that only a purposeful, determined, organized mass housing development
program can meet the needs of Filipino families for decent dwellings;
WHEREAS, recognizing the urgency of this problem, the new Constitution of the
Philippines has provided in Article II, Section 7 that the "State shall establish, maintain,
and ensure adequate social services in the field of * * * * housing * * * * * to guarantee
the enjoyment of the people of a decent standard of living;
WHEREAS, the attainment of this objective is highly dependent on the conservation and
rationalization of urban land use as the instrument of urban land reform as well as on our
ability to regulate housing financing and construction costs to bring housing to within the
reach of the greater number of our people;
WHEREAS, government efforts in housing are now proliferated among various agencies
and there is an urgent need to concentrate such efforts, resources, functions and activities
in a national housing agency to maximize results;
WHEREAS, the effective implementation of housing programs will require the widest
participation of the private sector in terms of capital expenditures, land, expertise, and
other resources related to housing construction and land development;
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by
virtue of the powers vested in me by the Constitution do hereby order and decree, as part
of the law of the land, the following:
SECTION 1. Housing Program.—Pursuant to the mandate of the New Constitution, there
shall be developed a comprehensive and integrated housing program which shall embrace,
among others, housing development and resettlement, sources and schemes of financing,
and delineation of government and private sector participation. The program shall specify
the priorities and targets in accordance with the integrated national human settlements plan
prepared by the Human Settlements Commission.
In the preparation of said program, the following factors shall be considered:

a. The management of urban development to promote the economic and social well
being and physical mobility of the people, and facilitate industrial growth and
dispersa ;
b. The conservation of land for housing development as well as the regulation of land
use to achieve optimum utilization patterns;
c. The organization of public and private resources into financial intermediaries to meet
the demand for housing, including provisions for incentives and facilities to broaden
the private sector participation in housing investments; and
d. The extensive use of building systems, which shall maximize the use of indigenous
materials and reduce building costs without sacrificing sound engineering and
environmental standards.

SEC. 2. Creation of the National Housing Authority.— There is hereby created a

government corporation to be known as the National Housing Authority, hereinafter
referred to as the "Authority", to develop and implement the housing program above-
mentioned. The Authority shall have its principal office in the Greater Manila area but
may have such branch offices, agencies, or subsidiaries in other areas as it may deem
proper and necessary. The Authority shall be under the Office of the President and shall
exist for fifty (50) years but may be extended.
SEC. 3. Purposes and Objectives.—The Authority shall have the following purposes and
objectives:

a. To provide and maintain adequate housing for the greatest possible number of
people;
b. To undertake housing, development, resettlement or other activities as would
enhance the provision of housing to every Filipino;

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c. To harness and promote private participation in housing ventures in terms of capital

expenditures, land, expertise, financing and other facilities for the sustained growth
of the housing industry.

SEC. 4. Capitalization.—The Authority shall have an authorized capital of five hundred

million pesos which shall be fully subscribed by the Republic of the Philippines and paid
as follows:

a. The sum of fifty million pesos upon the approval of this Decree which is hereby
appropriated out of the funds in the National Treasury not otherwise appropriated,
five million pesos of which shall be released upon the organization of the Authority
and the balance as and when needed;
b. The sum of fifty million pesos for every subsequent fiscal year for a period of nine
years which must be included in the general appropriations act: Provided, That the
assets and balances of appropriations transferred to the Authority pursuant to the
provisions of Section 5 hereof, shall not be included in determining the capital of the
Authority as provided in this Section.

SEC. 5. Dissolution of Existing Housing Agencies.—The People's Homesite and Housing

Corporation (PHHC), the Presidential Assistant on Housing and Resettlement Agency
(PAHRA), the Tondo Foreshore Development Authority (TFDA), the Central Institute for
the Training and Relocation of Urban Squatters (CITRUS), the Presidential Committee for
Housing and Urban Resettlement (PRECHUR), Sapang Palay Development Committee,
Inter-Agency Task Force to Undertake the Relocation of Families in Barrio Nabacaan,
Villanueva, Misamis Oriental and all other existing government housing and resettlement
agencies, task forces and ad-hoc committees, are hereby dissolved. Their powers and
functions, balance of appropriations, records, assets, rights, and choses in action, are
transferred to, vested in, and assumed by the Authority: Provided, That an inventory and
evaluation of the properties, equipment, assets, rights, choses in action, obligations and
liabilities of the herein dissolved agencies shall be made by the Commission on Audit:
Provided, Further, That all urban estates acquired by the Government, the Department of
Agrarian Reform and the People's Homesite and Housing Corporation shall be transferred
to the Authority which shall administer, develop and dispose such estates including the
collection of accounts receivables therein, payment of liabilities thereon and the
enforcement of choses in action pertaining to the same: Provided, Finally, That the
transfers contemplated therein shall be on an estate-to-estate basis after the corresponding
liquidation of each estate have been accomplished by the agency concerned in accordance
with existing, auditing and accounting rules and regulations.
The qualified and necessary personnel of the dissolved agencies may be transferred to and
be absorbed by the Authority: Provided, That the Board of Directors of the Authority
hereinafter provided, shall make personnel movement on the basis of merit and fitness in
accordance with comprehensive and progressive merit system to be established by the
Authority upon its organization.
The Authority, through its Board, shall effect the transfer herein provided in a manner that
will insure the least disruption of on-going programs and projects: Provided, That in the
period prior to the actual assumption of duties by the Board and its functioning as such, all
officers and employees of the abolished agencies shall continue to exercise all their
functions and discharge all their duties and responsibilities until ordered otherwise by the
Board of the Authority.
The financial liabilities or obligations of the dissolved agencies shall be assumed by the
National Government and, for the payment of such liabilities or obligations, bonds or
securities may be issued by the government in such amounts sufficient to cover said
liabilities or obligations, the proceeds of which are hereby appropriated for the purpose.
Alternatively, said liabilities or obligations may be paid by direct appropriation which is
hereby authorized in such amount as may be determined by the Commission on Audit.
SEC. 6. Powers and functions of the Authority.—The Authority shall have the following
powers and functions to be exercised by the Board in accordance with the established
national human settlements plan prepared by the Human Settlements Commission:

a. Develop and implement the comprehensive and integrated housing program

provided for in Section 1 hereof;
b. Formulate and enforce general and specific policies for housing development and
resettlement;

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c. Prescribe guidelines and standards for the reservation, conservation and utilization of
public lands identified for housing and resettlement;
d. Exercise the right of eminent domain or acquire by purchase privately owned lands
for purposes of housing development, resettlement and related services and facilities;
e. Develop and undertake housing development and/or resettlement projects through
joint ventures or other arrangements with public and private entities;
f. Issue bonds or contract loans, credits, or indebted ness, including suppliers credit or
any deferred payment arrangements with any person or entity, domestic or foreign,
for the implementation of its housing programs;
g. Discharge all responsibilities of the government as may arise from treaties,
agreements, and other commitments on housing and resettlement to which it is a
signatory, including the determination of forms of assistance for housing
development to be extended through multilateral or bilateral assistance programs;
h. Promote housing development by providing technical assistance;
i. Sue and be sued;
j. Adopt and use a seal which shall be judicially noticed;
k. Enter into contracts whenever necessary under such terms and conditions as it may
deem proper and reasonable;
l. Acquire property rights and interests, and encumber or otherwise dispose the same as
it may deem appropriate;
m. Invest its funds, as it may deem proper, in bonds and securities issued and
guaranteed by the government or by the Central Bank of the Philippines;
n. Receive donations, grants, and bequests and utilize the same for the attainment of its
objectives. Such donations, grants, and bequests shall be exempt from the payment
of transfer taxes and be fully deductible from the gross income of the donor or
grantor for income tax purposes;
o. Adopt its by-laws to supplement this Decree;
p. Prescribe and enforce guidelines, standards and rules in the manner provided for in
such rules and regulations promulgated and adopted by the Authority designed to
protect home and lot buyers through the regulation of the real estate trade and
business;
q. Regulate the relationship between owners and lessees of residential properties in
conformity with such rules and regulations as may be promulgated and adopted by
the Authority;
r. Promulgate, adopt, amend and/or repeal such rules and regulations necessary to
implement the intent and purposes of this Decree. Such rules and regulations shall be
submitted to the President for his approval. Upon approval, the same shall have the
force and effect of law and shall take effect immediately after their publication three
times a week for two weeks in any newspaper of general circulation; and
s. Perform such other acts not inconsistent with this Decree, as may be necessary to
effect the policies and objectives herein declared.

SEC. 7. Board of Directors.—The Authority shall be governed by a Board of Directors,

hereinafter referred to as the Board, which shall be composed of the Secretary of Public
Works, Transportation and Communications, the Director-General of the National
Economic and Development Authority, the Secretary of Finance, the Secretary of Labor,
the Secretary of Industry, the Executive Secretary and the General Manager of the
Authority. From among the members, the President will appoint a chairman. The members
of the Board may have their respective alternates who shall be the officials next in rank to
them and whose acts shall be considered the acts of their principals with the right to
receive their benefit: Provided, That in the absence of the Chairman, the Board shall elect
a temporary presiding officer.
The General Manager of the Authority who shall be appointed by the President shall serve
on a full-time basis. He must possess managerial ability and must be a recognized
authority on housing and/or related fields. He shall be the chief executive officer of the
Authority and be entitled to receive a salary to be determined by the Board and approved
by the President.
The Authority shall have an Assistant General Manager who shall likewise be appointed
by the President and shall receive a salary to be determined in the same manner as that of
the General Manager.
The members of the Board, excluding the General Manager, may receive per diems per
meeting actually attended at such amount to be fixed by the Board but not to exceed one
thousand pesos per month.
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The Board shall meet regularly at least once a month, but special meetings may be called
either by the Chairman or by four members of the Board as and when necessary. Four
members of the Board shall constitute a quorum and all decisions of the Board shall
require the concurrence of at least four members.
SEC. 8. Powers and Duties of the Board.—The Board shall have the following powers
and duties:

a. Formulate, prescribe, and promulgate the implementing rules and regulations

required by this Decree;
b. Act upon the annual budget and such supplemental budgets of the Authority
submitted by the General Manager: Provided, That the Board may reduce but may
not increase any item proposed by the General Manager;
c. Approve the organizational structure of the Authority as well as its staffing pattern,
the salaries of the personnel and their powers and duties submitted by the General
Manager;
d. Enter into such contract or agreement as may be necessary for the attainment of the
purposes and objectives of this Decree;
e. Render annual reports to the President and such special reports as may be requested;
and
f. Exercise all the powers necessary or incidental to the attainment of the purposes of
this Decree.

SEC. 9. Duties of the General Manager. The General Manager, as Chief Executive Officer
of the Authority, shall have the following duties and responsibilities:

a. To direct and supervise the operations and internal affairs of the Authority. The
General Manager may dele gate certain of his administrative responsibilities to other
officers of the Authority, subject to the rules and regulations promulgated by the
Board;
b. To prepare the agenda for the meetings of the Board and to submit for the
consideration of the Board such policies and measures as he may believe necessary
to carry out the purposes of this Decree;
c. To execute, administer and implement the policies and measures approved by the
Board;
d. Subject to the approval of the Board, to fix the number and salaries of and appoint,
the subordinate officers and personnel of the Authority and to remove, or otherwise
discipline, for cause, any such officer or employee;
e. To represent the Authority in all dealings with other offices, agencies, and
instrumentalities of the Government and with all persons and entities, public or
private, domestic or foreign;
f. To act, in the conduct of the business of the Authority, on all matters that are not by
this Decree specifically reserved to the Board; and
g. To exercise such other powers and perform such other duties as may be vested in
him by the Board.

SEC. 10. Organizational Structure of the Authority.— The Board shall determine the
organizational structure of the Authority in such manner as would best carry out its powers
and functions and attain the objectives of this Decree.
The General Manager shall, subject to the approval of the Board, determine and appoint
the, subordinate officers, other personnel, and consultants, if necessary, of the Authority:
Provided, That the regular, professional and technical personnel of the Authority shall be
exempt from the rules and regulations of the Wage and Position Classification Office and
from the examination and/or eligibility requirement of the Civil Service Commission.
Subject to the approval of the Board, the General Manager shall likewise determine the
rates of allowances, honoraria and such other additional compensation which the Authority
is hereby authorized to grant to its officers, technical staff and consultants, including the
necessary detailed personnel.
SEC. 11. Home Financing Commission and National Housing Corporation.—To facilitate
the attainment of the objectives and purposes of this Decree, the National Housing
Corporation and the Home Financing Commission, shall be attached to the National
Housing Authority (NHA) for policy and program coordination.
SEC. 12. Completed Projects: Management of Disposition.—The Authority shall
determine, establish and maintain the most feasible and effective program for the

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management or disposition of specific housing or resettlement projects undertaken by the

Authority. Unless otherwise decided by the Board, completed housing or resettlement
projects shall be managed and administered by the Authority.
SEC. 13. Issuance of Bonds—Subject to the approval of the Secretary of Finance, after
consultation with the Monetary Board of the Central Bank of the Philippines, the
Authority is hereby authorized to issue bonds and other securities to finance the
implementation of its housing program: Provided, That only so much of such bonds or
securities shall be issued and sold as the annual project implementation would require:
Provided, Further, That no bonds or securities shall be issued unless eighty per cent (80%)
of those already issued had been sold: Provided, finally, That the total amount of the bonds
or securities issued shall in no case exceed ten times its paid up capital and surplus.
The Authority, in consultation with the Secretary of Finance and the Monetary Board, shall
prescribe the form, the rate of interest, and denominations, maturities, negotiability, call or
redemption features and all other terms and conditions of the bonds and securities to be
issued."
In the promotion of the sale of bonds or securities, the Authority is authorized to adopt the
lottery scheme enunciated under Republic Act Numbered One Thousand as amended.
The bonds and securities issued under this Decree including the income thereof shall be
exempt from all kinds of taxes and from attachment, execution and seizure which facts
shall be stated on the face thereof.
A sinking fund shall be established by the Authority in such manner that the total annual
contribution thereto, accrued at such rate of interest as may be determined by the Secretary
of Finance in consultation with the Monetary Board, shall be sufficient to redeem at
maturity the bonds or securities issued pursuant to this Decree. The sinking fund shall be
under the custody and administration of the Central Bank of the Philippines which may
invest the same in Central Bank Certificates of Indebtedness and similar financing
schemes subject to the approval of the Authority in consultation with the Secretary of
Finance: Provided, That the proceeds from such scheme shall accrue to the Authority.
SEC. 14. Guarantee by the Government.—The Republic of the Philippines hereby
guarantees the payment of both the principal and the interest of the bonds, debentures,
collaterals, notes or such other obligations issued or incurred by the Authority by virtue of
this Decree, and shall pay such principal and interest in case the Authority fails to do so. In
such event, the Republic of the Philippines shall succeed to all the rights of the holders of
such bonds, debentures, collaterals, notes or other instruments to the extent of the payment
made, unless the sum so paid by the Republic of the Philippines shall be refunded by the
Authority within a reasonable time.
SEC. 15. Other SSS and GSIS Participation.—Notwithstanding any provision of their
respective charters to the contrary, the Social Security System and the Government Service
Insurance System shall absorb all or part of the bonds or securities issued by the Authority
in such proportion as may be determined by the National Economic and Development
Authority and approved by the President.
Upon the effectivity of this Decree, the Social Security System and the Government
Service Insurance System shall cease undertaking mass or group housing, either by itself,
joint venture, turn-key basis, or any other arrangement and, their lending operations for
housing purposes shall be limited to direct lending to individual members only for their
respective homes.
SEC. 16. Gratuity.—Any personnel of the dissolved agencies who is not appointed to a
position in the Authority for reasons not attributable to his conduct, or who elects to
discontinue his service, shall be paid the money value of his accumulated vacation and
sick leave and, if qualified to retire under existing laws, his retirement gratuities.
Otherwise, he shall be paid on month salary for every year of service in the government.
For this purpose, the sum of ten million pesos in hereby appropriated out of the funds in
the National Treasury not otherwise appropriated exclusively for the payment of the
aforesaid separation and retirement gratuities and accumulated vacation and sick leaves.
SEC. 17. Auditor.—The Commission on Audit shall recommend to the Board a
representative who shall be the Auditor of the Authority, and such personnel as may be
necessary to assist said representative in the performance of his duties. The salaries of the
Auditor and his staff shall be fixed by the Board and paid for by the Authority.
SEC. 18. Rules and Regulations.—The Board shall promulgate the requisite rule and
regulations for the effective implementation of this Decree and revise or amend the same
as may be necessary.
SEC. 19. Reports—The Authority shall submit an annual report to the President
indicating, among others, the housing program being implemented, the stage of
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implementation, and the financial position of the Authority. It shall likewise submit such
periodic or other reports as may be required from time to time.
SEC. 20. Applicability of the Corporation Law.—The provisions of the Corporation Law,
in so far as they are not inconsistent with the provisions and policies provided in this
Decree, shall be applicable to the Authority.
SEC. 21. Repealing Clause.—Any provision of Law, decree, executive orders, ordinances,
rules and regulations inconsistent herewith are hereby repealed, amended, or modified
accordingly.
SEC. 22. Separability Clause.—If for any reason any 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.
SEC. 23. Effectivity.—This Decree shall take effect immediately.
Done in the City of Manila, this 31st day of July, in the year of Our Lord nineteen hundred
and seventy-five.

(Sgd.) FERDINAND E. MARCOS

President
Republic of the Philippines
By the President:

(Sgd.) ALEJANDRO MELCHOR

Executive Secretary

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