Guidelines on the Implementation of the Special Provision (SP) No. 10, Budgetary Support to the National Housing Authority under Republic Act (RA) No. 9970, the FY 2010 General Appropriations Act (GAA)

November 22, 2010

DBM-NHA JOINT CIRCULAR NO. 01-10

 

1.0 BACKGROUND

1.1 Under the FY 2010 National Expenditure Program (NEP), P330 Million in National Government equity investment was allocated for the Local Housing Program (LHP) being implemented by the National Housing Authority. HTcADC

1.2 However, under RA No. 9970, the FY 2010 GAA, Congress reduced the budget allocation for the LHP from P330 Million to P170 Million and realigned the balance of P160 Million to the Resettlement Program thereby increasing the allocation of the latter program from P3.070 Billion to P3.230 Billion.

1.3 Also, Congress included Disaster Preparedness and Rehabilitation of Resettlement Projects as one of the activities under the Resettlement Program in SP No. 10, Budgetary Support to the NHA, FY 2010 GAA.

1.4 SP No. 10 under RA No. 9970 was subject to Conditional Implementation under the President's Veto Message dated February 8, 2010, which states as follows:

"B. Increase in Appropriations

As a result of the aforementioned reduction by Congress in the appropriations for interest payments, the following increases in appropriations in the budgets of agencies were made, thereby affecting the NG's cash program for the year. Thus, in keeping with my avowed policy to observe prudent and responsible fiscal management, release of the increased items of appropriations is subject to the identification by Congress of new revenue measures in support thereof. Moreover, all allowable increase in appropriations should carry with it a corresponding increase in the respective outputs and improved outcomes of the agencies concerned.

xxx xxx xxx

10. BSGC, Special Provision No. 10, Budgetary Support to the National Housing Authority, pages 946-947.

I similarly note that the increase in subsidy of the NHA, due to the inclusion of disaster preparedness projects under its Resettlement Program, apparently resulted from the decrease in equity investment for the Local Housing Program (LHP). So as not to unduly hamper the implementation of ongoing projects under the LHP and allow NHA to focus on its priority resettlement projects, execution of this special provision is subject to guidelines to be jointly issued by the DBM and NHA."

2.0 PURPOSE

This Joint Circular is being issued to provide the guidelines on the implementation of Special Provision No. 10 of the 2010 GAA pursuant to the afore-quoted President's Veto Message. aScITE

3.0 GENERAL GUIDELINES

3.1 Resettlement Program

3.1.1 The NHA shall submit to the DBM a list of the additional Resettlement Projects equivalent to P160 Million additional allocation and the corresponding improved organizational outcome to support any request for release of such fund as appropriated in its FY 2010 Corporate Operating Budget (COB).

3.1.2 Resettlement Program shall involve land acquisition and site development, construction of housing units and other facilities for the families displaced from sites earmarked for government infrastructure projects, those occupying danger areas such as waterways, esteros, railroad tracks, affected by typhoons and other calamities who are qualified for relocation and resettlement assistance.

3.1.3 It shall include the Rehabilitation of Resettlement Projects.

3.2 Local Housing Program

3.2.1 The LHP shall continue to be implemented by the NHA as one of its priority programs with a budget of P170 Million under the NHA's FY 2010 COB. It shall be allocated upon prior consultation with the representative of the legislative district concerned and as far as practicable be equitably allocated.

3.2.2 The NHA shall submit to the DBM a list of projects under the LHP. It shall ensure that the reduction by P160 Million allocation (from P330 Million to P170 Million) shall not hamper any on going LHP.

3.2.3 The LHP makes certain that there will be an equitable distribution of housing benefits across the country. The NHA is tasked to implement cost recoverable socialized housing projects in selected urban and urbanizable areas in all congressional districts. Criteria for the selection of sites shall be in accordance with the guidelines formulated by the Housing and Urban Development Coordinating Council and NHA.

3.3 Disaster Preparedness

3.3.1 Disaster preparedness activities to be implemented by the NHA shall be in consonance with its mandate.

3.3.2 It shall be undertaken in coordination with the Office of Civil Defense (OCD) of the Department of National Defense and other agencies concerned to prevent duplication of functions.

3.3.3 The OCD is mandated to coordinate the activities of various government agencies and instrumentalities as well as various private institutions and civic organizations devoted to public welfare. It supervises, monitors and evaluates the implementation of disaster management program to ensure their effectiveness. ATICcS

3.4 Implementation of the NHA Programs shall be made in accordance with RA Nos. 7279 1 and 7835, 2 and their implementing rules and regulations.

3.5 The appropriations authorized for the NHA under the FY 2010 GAA shall be released subject to submission of the list and the details of the projects as approved by the NHA Board as incorporated in its FY 2010 COB and existing budgeting, accounting and auditing laws, rules and regulations.

3.6 The NHA shall submit reports on the implementation of its projects to the DBM, the Senate and House Committees on Housing the Senate Committee on Finance, and the House Committee on Appropriations.

4.0 RESPONSIBILITIES

Officials and employees concerned who are involved in the implementation of the aforementioned Programs shall be responsible for compliance with this Circular.

5.0 GOVERNING CLAUSE

Issues arising from the implementation of this Joint Circular shall be resolved by the Secretary of the DBM and NHA General Manager.

6.0 EFFECTIVITY

This Joint Circular shall take effect immediately. TIADCc

(SGD.) FLORENCIO B. ABAD Secretary

(SGD.) ATTY. CHITO M. CRUZGeneral Manager

 

Footnotes

1. Urban Development and Housing Act.

2. Comprehensive and Integrated Shelter and Financing Act.