RA 7916

PEZA
Introduction/
History
RA 7916 PEZA

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What is PEZA?

PEZA - attached to the Department of Trade and Industry - is the Philippine government
agency tasked to promote investments, extend assistance, register, grant incentives to
and facilitate the business operations of investors in export-oriented manufacturing and
service facilities inside selected areas throughout the country proclaimed by the President
of the Philippines as PEZA Special Economic Zones.
It oversees and administers incentives to developers/operators of and locators in world-
class, ready-to-occupy, environment-friendly, secured and competitively priced Special
Economic Zones.
 Special Economic Zone Act of 1995

• During the past three decades, there has been a paradigm shift from import substitutio
n strategies towards export‐oriented industrialization. It is in this context that count
ries saw the need to create special economic zones (SEZs) and export processing zon
es (EPZs), so‐called ecozones, to cope with the increasingly competitive environment o
f the global market.
• These ecozones are viewed as special enclaves, wherein firms, usually foreign ones, are
supervised outside the normal customs barriers and thus enjoy favored treatment with
respect to imports of intermediate goods, taxation, and infrastructure. In addition, thes
e firms are generally free from industrial regulations applying elsewhere in the coun
try. These privileges are subject to the conditions that almost all output is exported and
that all imported intermediate goods are used within the zones or else re‐exported (Wo
rld Bank, 1998).
Special Economic Zone Act of 1995

• Republic Act (RA) 7916, otherwise known as the Special Economic Zone Act of 1995,
authorizes the establishment of ecozones in strategic locations and introduces me
chanisms that would attract foreign investments into these areas. Under this legis
lation, firms (so‐called locators) are no longer required to be either wholly export‐orie
nted or engaged only in industries being promoted. That is, firms can choose to locate
in these ecozones regardless of market orientation, while a distinct group of EPZ
s will continue to be predominantly oriented towards export productions.
• RA 7916 provides for the creation of the Philippine Economic Zone Authority (PEZA),
which is tasked to evaluate and recommend to the president of the Philippines areas
that may be established as ecozones.
Urban Development and Housing Act

• The Housing and Urban Development Coordinating Council (HUDCC) was created by then
President Corazon C. Aquino by virtue of Executive Order No. 90 dated 17 December 1986. The
EO, which also abolished the Ministry of Human Settlements, placed HUDCC under the direct
supervision of the Office of the President to serve as the highest policy making body for housing
and coordinate the activities of the key housing agencies to ensure the accomplishment of the
Government Shelter Program.
• On 25 May 1989 and May 28, 2001 , Executive Order No. 357 and Executive Order No. 20 were
issued respectively, to strengthen HUDCC into department level organization by conferring it
with the power to exercise overall administrative supervision over the key housing agencies; set
and ensure the attainment of targets and objectives for the housing sector; review the
organization, programs and projects of the key housing agencies; decentralize its operations and
enlist the assistance of the Department of Budget and Management in securing continuing
funding support to the National Shelter program.
• In 1992, the Urban Development and Housing Act (RA 7279) mandated the HUDCC to direct the
formulation of a National Urban Development and Housing Framework in coordination with the
Local Government Units and other public and private sector agencies; design of a system for the
registration qualified socialized housing beneficiaries and inventory of land suitable for socialized
housing; and provide, through its attached housing agencies, the LGUs with support for the
preparation of town and land use plans, data for forward planning and investment programming,
and assistance in obtaining funds and other resources for housing and urban development.
LEGAL BASIS
RA 7916 PEZA

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Special Economic Zone Act of 1995

• PD 66 CREATING THE EXPORT PROCESSING ZONE AUTHORITY AND REVISING

REPUBLIC ACT NO. 5490, It is hereby declared to be the policy of the Government
to encourage and promote foreign commerce as a means of making the Philippines a
center of international trade, of strengthening our export trade and foreign
exchange position, of hastening industrialization, of reducing domestic
unemployment, and of accelerating the development of the country, by establishing
export processing zones in strategic locations in the Philippines. The Authority shall
maintain its principal office in the Greater Manila area but it may establish branches
and agencies within the Philippines as may be necessary for the proper conduct of its
business. It was signed by former late president Marcos
Special Economic Zone Act of 1995

• EO 226 THE OMNIBUS INVESTMENTS CODE OF 1987, the Government is

committed to encourage investments in desirable areas of activities, to facilitate
investment, there is a need to adopt a cohesive and consolidated investments
incentives law, it is imperative to integrate basic laws on investment, to clarify and
harmonize their provisions for the guidance of domestic and foreign investors and To
accelerate the sound development of the national economy in consonance with the
principles and objectives of economic nationalism and in pursuance of a planned
economically feasible and practical dispersal of industries and the promotion of small
and medium scale industries, under conditions which will encourage competition and
discourage monopolies. Signed by former late president Aquino
Special Economic Zone Act of 1995

• RA 7916 SPECIAL ECONOMIC ZONE ACT OF 1995,

authorizes the establishment of ecozones in strategic locations and introduces
mechanisms that would attract foreign investments into these areas. Under this
legislation, firms (so‐called locators) are no longer required to be either wholly exp
ort‐oriented or engaged only in industries being promoted. That is, firms can choose
to locate in these ecozones regardless of market orientation, while a distinct gr
oup of EPZs will continue to be predominantly oriented towards export
productions.
Urban Development and Housing Act

• From 1986 to present, there are several executive and legislative issuances, namely;
• Executive Order No. 90 dated 17 December 1986, to Identifying the government
agencies essential for the national shelter program and defining their mandates,
creating the housing and urban development coordinating council, rationalizing
funding sources and lending mechanisms for home mortgages and for other
purposes
• Executive Order No. 357 on 25 May 1989, approving the allocation of a five percent
share for local government units from the lotto charity fund and providing the
sharing scheme therefor and;
Urban Development and Housing Act

• Executive Order No. 20 on May 28, 2001, Modifying the nomenclature and rates of
import duty on various products under section 1611 of republic act no. 10863
otherwise known as the customs modernization and tariff act
were issued respectively, to strengthen HUDCC into department level organization,
that provide or authorize HUDCC with specific functions and/or require it to undertake
certain tasks related to housing and urban development. These legal and legislative
fiats assigned duties and responsibilities to HUDCC that are related to its original
mandate as the lead agency in housing and urban development.
sample application
RA 7916 PEZA

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RA 7916 PEZA

To boost Philippine economic development, PEZA was established to encourage

foreign investment into the country. This government agency aids in the registration
of foreign businesses and grants them incentives when they operate their business
inside PEZA Special Economic Zones, which are selected areas throughout the
country proclaimed by the President of the Philippines. Industries in the export-
oriented manufacturing and service facilities industry can benefit most from PEZA’s
incentives.
Example: Business owners from other Country have chosen to outsource their
workforce to save in operational expenses.
The Philippine government encourages this “offshoring” business activity by
incentivizing those companies who will operate on selected areas in the country. PEZA
law requires companies that exhibit any of the supported business activities to move
to a PEZA-accredited building or site. Eligibility for PEZA’s benefits comes after
compliance with the registration agreements.
RA 7279
UDHA
introduction/
history
RA 7279 UDHa

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REPUBLIC ACT NO. 7279

AN ACT TO PROVIDE FOR A COMPREHENSIVE AND CONTINUING URBAN

DEVELOPMENT AND HOUSING PROGRAM, ESTABLISH THE MECHANISM FOR ITS
IMPLEMENTATION, AND FOR OTHER PURPOSES
 REPUBLIC ACT NO. 7279

It first stipulates the principles governing the urban development and housing
program, for instance the state shall ensure the rational use of land, provide the
affordable housing for underprivileged and homeless citizens. The Act then
requires the government to establish inventory of lands and identify the sites
for socialized housing, and sets out rules on land acquisition and disposition.
What is UDHA?
Urban Development and Housing Act of 1992 (Republic Act No. 7279)

the Act provides strategies and requirements for the socialized housing
programs. It specifies the eligibility criteria for beneficiaries, provides incentives
for National Housing Authority and private sectors, as well as sets standards on
basic services and livelihood component for those housing. It also sets out
procedural safeguards on eviction and resettlement. The Act further creates the
Community Mortgage Program to assist underprivileged and homeless citizens
to purchase and develop a tract of land under the community ownership.
HISTORY: REPUBLIC ACT NO. 7279

The Housing and Urban Development Coordinating Council (HUDCC) was created by
then President Corazon C. Aquino by virtue of Executive Order No. 90 dated 17
December 1986. The EO, which also abolished the Ministry of Human Settlements,
placed HUDCC under the direct supervision of the Office of the President to serve as
the highest policy making body for housing and coordinate the activities of the key
housing agencies to ensure the accomplishment of the Government Shelter Program.

On 25 May 1989 and May 28, 2001 , Executive Order No. 357 and Executive Order
No. 20 were issued respectively, to strengthen HUDCC into department level
organization by conferring it with the power to exercise overall administrative
supervision over the key housing agencies; set and ensure the attainment of targets
and objectives for the housing sector; review the organization, programs and projects
of the key housing agencies; decentralize its operations and enlist the assistance of the
Department of Budget and Management in securing continuing funding support to the
National Shelter program.
HISTORY: REPUBLIC ACT NO. 7279

In 1992, the Urban Development and Housing Act (RA 7279) mandated the HUDCC to
direct the formulation of a National Urban Development and Housing Framework in
coordination with the Local Government Units and other public and private sector
agencies; design of a system for the registration qualified socialized housing
beneficiaries and inventory of land suitable for socialized housing; and provide, through
its attached housing agencies, the LGUs with support for the preparation of town and
land use plans, data for forward planning and investment programming, and assistance
in obtaining funds and other resources for housing and urban development.

From 1986 to present, there are several executive and legislative issuances
including the three laws mentioned above, that provide or authorize HUDCC with
specific functions and/or require it to undertake certain tasks related to housing and
urban development. These legal and legislative fiats assigned duties and responsibilities
to HUDCC that are related to its original mandate as the lead agency in housing and
urban development.
LEGAL BASIS
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Implementing Rules and Regulations of R.A. No. 7279

Acquisition, Valuation and Disposition of Lands

To enable the equitable utilization of residential lands in urbanizable areas with

particular attention to the needs of the underprivileged and homeless and not merely
on the basis of market forces, several provisions in RA 7279 address Acquisition
Priorities in Land Acquisition (Section 9), Modes of Land Acquisition (Section 10),
Disposition (Section 12), and Valuation (Section 13) of lands for Socialized Housing.
Implementing Rules and Regulations of R.A. No. 7279
Balanced Housing Development Requirement

To further increase the low-cost housing stock available to underprivileged families and homebuyers, Section
18 of Republic Act No. 7279 (Balanced Housing Development) was amended to include the residential condominium
projects in complying with the balanced housing requirement.

Section 18 of RA 7279, as amended by Republic Act No. 10884, requires that owners and/or developers of
proposed subdivision and condominium projects develop an area for socialized housing, at the option of the
developer, equivalent to:

At least fifteen percent (15%) of the total subdivision area or subdivision project cost
At least five percent (5%) of condominium area or project cost.

The balanced housing requirement should be accomplished within the same city or municipality, whenever feasible,
and in accordance with the standards set by the Housing and Land Use Regulatory Board (HLURB) and other
existing laws.
Implementing Rules and Regulations of R.A. No. 7279

Beneficiary Registration
Section 17 (Registration of Socialized Housing Beneficiaries) mandates the local government units to
identify and register all beneficiaries within their respective localities.
Inventory of Lands
Section 7 (Inventory of Lands) directs all city and municipal governments to conduct an inventory of all
lands and improvements in their respective localities to identify residential lands, government lands,
unregistered or abandoned and idle lands, and other lands. This inventory shall be updated every three years.
Socialized Housing Tax

Section 43 authorizes local government units to impose an additional one-half (0.5%) tax on the
assessed value of all lands in urban areas in excess of Fifty thousand pesos.
sample application
RA 7916 PEZA

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Example Application: MAKING IN-CITY OR NEAR-CITY RELOCATION
MANDATORY.

One of the considerations in providing relocation sites is the livelihood component. Relocation sites should
be near employment opportunities. Section 22 provides that, “To the extent feasible, socialized housing and
resettlement projects shall be located near areas where employment opportunities are accessible. The
government agencies dealing with the development of livelihood programs and grant of livelihood loans
shall give priority to the beneficiaries of the Program”.

PROPOSED AMENDMENT: Provide specific provision making in-city or near-city relocation as mandatory
and defining what constitutes in-city or near-city relocation.
Example Application: Informal settlers are living in the Property

Squatting, in the general sense, was technically considered a criminal offense. Presidential Decree (PD) 772, or
the Anti-Squatting Law, states that:
Squatting is committed by any person who succeeds in occupying or possessing the real property of another
against the latter’s will through any of the following means: force, intimidation, threat, taking advantage of the
absence or tolerance of the landowner for residential, commercial or any other purposes.
The fourth is the most common reason for squatters illegally living in a property, and as an owner, you are well
within your rights to have the offending parties leave your property. However, to determine the actions to
take, it is also important to determine how the squatters ended up on your property. After all, they also have
rights, and being aware of the circumstances that led them to break the anti-squatting law will help you to
determine the proper course of action.
However, as per Republic Act No. 8368 or the “Anti-Squatting Law Repeal Act of 1997”, criminalizing squatting
has since been repealed. Furthermore, RA 8368 also authorized dismissal of all pending cases that drew upon
the provisions of the now repealed PD 772, and directed criminal cases against squatters to defer to the
broader “Comprehensive and Continuing Urban Development Program” described by Republic Act 7279.
In the absence of the owner, there is a tendency for squatters to occupy a property, as it is seldom visited.
Example Application: Professional Squatters

According to Republic Act No. 7279, or the Urban Development and Housing Act of 1992, individuals or groups
who occupy land without the express consent of the landowner, while having sufficient income for legitimate
housing are regarded as “professional squatters.”
The same status applies to those who have previously been awarded home lots or housing units by the
government, and yet have subsequently sold, leased, or transferred the properties awarded to them, and then
settled illegally in the same place or in another urban area. In addition, “non-bona fide occupants” and
“intruders of lands reserved for socialized housing” are also classified as professional squatters.
Any person or group identified as such shall be summarily evicted and their dwellings or structures
demolished, and shall be disqualified to avail of the benefits of the Program. A public official who tolerates or
abets the commission of the abovementioned acts shall be dealt with in accordance with existing laws.
CASE EXAMPLES
RA 7916 PEZA

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Case Study: GK Relocation Site in Manila
Target is to build 150 homes for families and also provide the funds to operate the
Community Center for one year. The funds come mostly from donors. The cost of each unit
is $2,500 (Php 115,000) to provide enough materials to build one home. The cost of $22,000
(Php 1.01 M) represents the funds needed for the operation of the Community Center for
one year
Case Study: Infrastructure Development Projects

To revive and bring back Pasig River its dignity and historico-cultural heritage, the
program of establishing Environmental Preservation Areas (EPAs) along the 10-
meter easement of the main river and 3-meter easement of its tributaries (esteros)
have been carried out. For the Pasig River Rehabilitation Project that is partially
funded by the ADB, the establishment of EPAs along both banks of the river has
affected about 10,000 informal households.

There have also been designated Urban Renewal Areas (URAs) where the
rehabilitation and resettlement housing programs have been implemented for the
families living along its riverbanks. But efforts to resettle these “illegal settlers” was
not totally successful. In the 1990s, some 30% to 40 % at the beginning of the
program and even up to 80% of the relocatees left their tenement houses and
returned to the banks of the river due to low work opportunities. About 63% of these
are owners/co-owners of affected structures, 23% are tenants and the remaining 14%
live without paying any rent.
Case Study: Social Development Component of GK Projects

Community Centers function as the hub of these brightly-colored, life-filled

neighborhoods. Where shanty slums, dumps and muddy paths were once
commonplace sights, parks and playgrounds now provide safe, clean areas for
children to grow, for families to gather in peace and for neighbors to gather in
fellowship. Inside, the Centers provide opportunities for pre-school education,
medical care, dental care and livelihood training that will break the cycle of poverty,
not only for individual families, but for entire communities.
Reference:
http://www.hudcc.gov.ph/content/history

http://www.ffcccii.org/republic-act-7916-content/

https://www.bir.gov.ph/index.php/rulings-and-legal-matters/community-mortgage-program-cmp.html

http://www.officialgazette.gov.ph/2017/04/27/executive-order-no-20-s-2017/

https://www.coa.gov.ph/phocadownloadpap/userupload/annual_audit_report/GOCCs/2012/Corporate-Government-Sector/Industrial-and-Area-

Development/Philippine-Economic-Zone-Authority/PEZA_ES2012.pdf

http://www.peza.gov.ph/index.php/about-peza/implementing-rules-and-regulations

http://urbanlex.unhabitat.org/law/152

http://www.hudcc.gov.ph/content/history

http://www.nha.gov.ph/about_us/2015-pdf/RA7279.pdf