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WHEREAS, in line with this priority concern, the Administration has launched a program to ensure that lands proclaimed as housing sites are disposed of to the intended beneficiaries in the most expeditious, equitable and participatory manner;

WHEREAS, Memorandum Order No. 74 dated September 13, 2002 directed the Housing and Urban Development Coordinating Council (HUDCC) to formulate and adopt certain guidelines and implement post-proclamation activities in the areas proclaimed as socialized housing sites;

WHEREAS, Executive Order No. 131 issued on October 1, 2002 declared open for disposition for socialized housing purposes certain government-owned lands defined under Republic Act No. 7279, otherwise known as the Urban Development and Housing Act of 1992;

WHEREAS, several other areas have been proclaimed by the President as housing sites for the benefit of their informal settler occupants, military personnel, government employees and other sectors who are in dire need of housing; and

WHEREAS, there is an urgent need for a dedicated government agency that will oversee and administer the immediate execution of these major housing projects in order to ensure their early completion.

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Philippines, do hereby order and direct the following:

SECTION 1. The Housing and Urban Development Coordinating Council (HUDCC) is hereby directed and authorized to directly oversee and fast-track, through appropriate project schemes and contractual arrangements, subject to existing laws, rules and regulations, the implementation and development of housing projects in the areas proclaimed as housing sites, such as the Lungsod Silangan Townsite Reservation, AFP Off-Base Housing sites, Southern Philippines Development Authority (SPDA) properties, Department of Science and Technology-Industrial Technology Development Institute (DOST-ITDI) Employees Housing, and other similarly proclaimed housing areas.

SECTION 2. In pursuance of its specific mandate under this Order, the HUDCC shall perform the following powers and functions:

1. Undertake the implementation, through any appropriate contractual scheme, of housing projects in major flagship areas proclaimed as housing sites the administration of which has not been lodged with or placed by law or executive issuance under the mandate or responsibility of any particular agency or entity.
    
2. Subject to the expressed authority from the President, enter into, make, execute, perform and carry-out contracts of any kind or nature to enable it to effectively discharge its powers and functions under this Order, subject to existing laws, rules and regulations.
    
3. Implement its housing projects through competitive public bidding or, in the exigency of public service and national interest, conduct simplified bidding or direct negotiation or such other analogous methods as the President may authorize, subject to existing laws, rules and regulations on public bidding and negotiated contracts.
    
4. Formulate and adopt the necessary implementing rules and guidelines to implement the provisions of this Order.
    
5. Undertake periodic review and evaluation of each of the project and, for this purpose, design and operate a program implementation and project benefit monitoring and evaluation system.
    
6. Exercise such other powers and functions and perform such other acts as may be necessary, proper or incidental to the attainment of its purpose and objectives.

SECTION 3. The HUDCC shall adopt an appropriate system or mechanics to effectively discharge its functions as herein provided for the purpose of facilitating and expediting the execution of the housing projects in the proclaimed sites. For this purpose, it shall constitute a Bid and Award Committee (BAC) as well as a Project Management Office (PMO) that will directly oversee the bidding and implementation of the projects, respectively.

SECTION 4. The PMO shall be headed by a full time Project Director to be appointed by the President upon the recommendation of the HUDCC Chairman and shall have staff complement the composition and structure of which shall come from the organic personnel of the key shelter agencies under the general supervision of the HUDCC duly designated in writing by their respective heads of office.

SECTION 5. The HUDCC may call on the concerned key shelter agency or any other agencies, local government units, financing institutions, non-government organizations and other concerned entities for technical or financial assistance whenever deemed necessary in the implementation of the projects contemplated herein.

SECTION 6. The agencies or departments, tapped to fund or implement any of the major components of the housing projects shall, in close coordination with the HUDCC, be directly responsible for implementing their respective components, and all contracts entered into for the preparation and or implementation of such project components shall be governed by existing procedures and arrangements adopted by the respective agencies.

The said agencies or departments, in all cases, shall ensure that the implementation of their respective components is consistent with terms stipulated in the corresponding Terms of Reference (TOR) for each of the projects as well as with the appropriate implementing guidelines adopted by the HUDCC.

SECTION 7. In the event the number of housing units generated from each of the proclaimed sites exceed the actual requirement of its intended beneficiaries, or should the prequalified beneficiaries be less than the housing units produced, the HUDCC shall dispose of the residual units to other low-salaried government employees, subject to the prequalification guidelines it may hereafter adopt.

SECTION 8. The HUDCC shall submit periodic reports to the Office of the President, through the Office of the Executive Secretary, relative to the status of project implementation activities in each of the housing sites.

SECTION 9. The HUDCC shall submit to the Department of Budget and Management (DBM) a work program and its corresponding budget that shall defray the cost of activities to be implemented by the HUDCC pursuant to this order.

The DBM shall then recommend to the President the necessary amount to fund said activities.

SECTION 10. All previous issuances inconsistent with the provisions of this Memorandum Order shall be deemed revoked or amended to this Order.

SECTION 11. This Memorandum Order shall take effect immediately.

Adopted: 17 May 2003

By the President:

(SGD.) ALBERTO G. ROMULO
  Executive Secretary