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RE SO LUT ION NO . 675Series of 2000

AMENDING THE SCHEDULE OF FINES IMPOSEDBY THE HOUSING AND LAND USE REGULATORY BOARD

IN THE PERFORMA NCE O F ITS FUNCTIONS

BE IT RESOLVED, as it is hereby resolved that the followingRevised Schedule of Fines imposed by the Housing and Land UseRegulatory Board in the exercise of its functions pursuant to Art. IV, Sec.

5.0; 5.q.2 and Art. V, Section 11 of Executive O rder No. 648 and S ec. 38of PD 957 be AD OP TE D as the same is hereby adopted.

REVISED SCHEDULE OF FINES*

I. Violation

A, For violations of TP Z and ULRZ/APD laws, rules and regulations.

I. Failure to secure locational clearance prior to the start of theproject.

CONFORMITY WIT LAND USE \

CONFORMING NON-CONFORMING

Project Type Minimum Medium Maximum Minimum Medium Maximum

Industrial P1000-2500 2501-4000 4001-5500 2501-4000 * 4001-7000 7001-10000

Agro-Industrial 750-2000 2001-3500 3501-5000 2001-4000 4001-7000 7001-10000

Agricultural 700-1500 1501 -3000 3001 -4500 1501 -3000 3001 -6000 6001 -9000

Commercial -do- -do - -do- -do- -do- -do-

Institutional 600-1200 1201 -2400 2401 -3500 1201 -2400 2401 -5000 5001 -7000

Residential 2/ 500-1000 1001-1500 1501-2000 1001-7000 2001-3000 3001-4000

Special Proj. 1000-3500 3501-6500 6501-10000

1/ As per approved Sangguniang Panlalawigan (SP) or HLURB Comprehensive Land Use Plan andZoning Ordinance

2/ Excludes single-detach ed family dwelling units.* Subject to revision when the n eed arises.

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Minimum Medium Maximum

2. Violations of the Term s and conditions 500-2000 2001 -3500 3501 -5000in clearance and all other violations on therequirements for locational clearance

B. For violations of ULR Z/APD , laws, rulesand conditions

1. Selling without sales clearance 200-500 501-700 701-1000

2. Mortgaging without mortgage clearance 100-250 251-350 351-500

3. Failure to register existing rights -do - -do- -do-

C. For violations of REM laws, rules and regulations

1. Failure to secure development permit

2. Failure to register project

3. Alteration of approved development permit

4. Non-compliance with approved dev't. plan

5. Incomplete development

6. Non-development

7. Selling without license

8. Violation of terms/conditions of development

permit/license to sell

9. Non-delivery of title

10. Failure to secure mortgage clearance

11. Failure to secure advertisement approval

12. Imposition of realty taxes on vendeecontrary to P D . 957

13. Failure of developer, Broker or Salesmento register or renew

14. Violation of other provisions of P.D. 957 1000-3000

1000 3000

do

do

do

do

do

do

do

do

1000 2500

500 1000

500 1000

200 500

1000 3000

3001 6000

do

o

do

do

do

do

o

do

2501 4000

1001 1500

701 800

501 700

3001 6000

6001 10000

do

do

do

do

do

do

o

do

4001 5500

1501 2000

801 1000

701 1000

6001 10000

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D. Pursuant to Art. IV Sec. 5.O of EO 648 , Series of 1981 to wit:Impose Administrative Fine not exceeding twenty thousand pesos(p20,000.00) for any violation of its charter and its rules and

regulations.

E. Pursuant to Art. IV, Sec. 5.Q.2 of EO 648, Series of 1981, cite anddeclare any person, entity or enterprise in contempt of the Boardin the following case :

1. W heneve r any person entity or enterprise comm its anydisorderly or disrespectful conduct before the board or in thepresence of its members or authorized representativesactually engaged in the exercise of their official functions, orduring the conduct of any hearing or official inquiry by thesaid board, at the place or near the premises where suchhearing or proceeding is being conducted which obstruct,distract, interfere or in any other way disturb, theperformance of such functions or the conduct of suchhearing or proceeding;

2. W heneve r any person, enterprise or entity fails or refuses tocomply with or obey without justifiable reason, any lawful

order, decision, writ or process of the board. In connectiontherewith, it may in cases falling within the first paragraphhereof, summ arily impose a fine of an amoun t not exceedingP2,000.00 and order the confinement of the violator for aperiod that shall not exceed the duration of the hearing orproceeding or the performance of such functions, and incases falling with the second paragraph hereof, it may, inaddition to the administrative fine abovementioned impose afine of P500.00 for each day that the violation or failure orrefusal to comply continues, and order the confinem ent of theoffender until the order or decision shall have been com pliedwith;

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In case the offender is a partnership, corporation orassociation or enterprise the above fine shall be imposed onthe assets of such entity and the President,managing partner or chief executive officer shall be orderedconfined.

F. Pursuant to Sec. 38 of PD 957 the HLU RB may prescribe andimpose fines not exceeding ten thousand pesos for violations ofthe provisions of this decree or of any rule or regulationthereunder. Fines shall be payable to the board and enforceablethrough writs of execution in accordance with the provisions of the

rules of court.II. Gu idelines for Imposition of Adm inistrative Fines

A Grounds for Imposition of Adm inistrative Fines

Where the existence of the following acts and omissions are dulyestablished, the fine fixed on the schedule of administrativefines corresponding to such act or omission shall be imposed:

1. Failure without just cause to secure any of the clearances,permits, licenses or approval that are required by law orregulations to be secured from the Housing and Land UseRegulatory Board (HLURB);

2. Failure to comply with any of the condition/s setforth in theclearances, permits, licenses or approval issued by theBoard;

3. Failure to complete developm ent, non-provisions of therequired facilities, non-compliance with approveddevelopment plan or altering without approval in case ofsubdivisions, condominiums or townhouses;

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4. Selling of lots in a subd ivision, farmlots and memorial parks,condominium units and townhouses without license to sell oradvertising without approval and selling mortgag ing, leasingor otherwise encumbering lands/properties within UrbanLand Reform Zones or Areas for Priority Developmentwithout approval/clearances from the Board;

5. Misrepresentation of facts and circumstances relative to theproject at the time of application or mo nitoring; and

6. Failure to obey or comply with the order issued by the Boardafter m onitoring the existence of any violation.

B. Circumstances to be Considered in the Imposition ofFines/Penalties

In determining whether a fine/penalty shall be imposed as well as thenature/extent/amount thereof, the following attendingfactors/circumstances shall be taken into consideration:

1. The extent of impact, or gravity of the violation com mitted;

2. The presence of attending circumstances and/or good or bad faithon the pa rt of the violator;

3. The presence or possibility of dam age, prejudice or inconvenienceto residents, neighbors and/or the community in general; or thephysical, social or economic impact of the project or activity to thesurrounding land/use neighborhood;

4. Th e implication of the continued existence of the violation on theattainment of the objectives/purposes enunciated in the law andregulations;

5. The presence, nature and frequency of history of violations.

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C. General Rules in Imposition of Fines/Penalties

In the Imposition of Fines/Penalties, the following Rules shall apply:

1. In the absence of any mitigating or aggravating circumstances theMedium Range of Penalties shall apply;

2. Each circumstance shall be generally considered as of equalweight, i.e., one mitigating circumstance shall be equivalent to , andshall offset or cancel an aggravating circumstance, except infollowing cases:

a. Spec ial Aggravating circumstance of repeated violation shallbe offset only by two (2) mitigating circumstances.

b. Lack of foreknowledge , ignorance of the law, where any oneof the circumstances mentioned in II D.6. are absent, whichshall be considered as a privileged mitigating circumstancethat can be offset only by two (2) aggravating circumstances.

3. W ithin each range (minimum , me dium, maximum) there shall beequal sub-ranges based on project classification by land use'intensity (e.g. R 1 , R2 , C 1 , C2, 11, 12, etc.) w ith those lowest in

intensity being imposed the minimum amount for each range andthose h ighest in intensity, the maximum amount in the range;

4. W ithin each sub-range shall be H igh and Low periods with theapplicability of the periods in question being dependent on thepresence or absence of local zoning regulations at the time theoffense is com mitted;

5. To determine the extent of a period or a sub-range, the sum of theminimum and maximum amounts of each periods or sub-rangeshall be divided by the number of periods/sub-range to be createdand the resulting quotient shall be considered as the extent of suchperiod or sub-range, which shall then be reckoned from theminimum amount of the range or the maximum amount of thepreceding sub-range, as the case may be.

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D. Circumstances Justifying Exemption From Fine

The following circumstances shall be sufficient to exempt the violatorfrom liability for fines.

1. Where the proponent has secured zoning/locational clearanceand/or other permits from a local zoning administrator or buildingofficial and/or other local officials with apparent authority to issuethe same, provided that:

a. Said permit is secured prior to establishment of the project;

b. Proponent subsequently voluntarily applies for properclearance from the Board;

c. In case there are existing complaints, proper remedialmeasures shall be instituted.

2. Where project is undertaken by other government agencies and/orcorporations;

3. Where the project is established in municipalities without townplans/zoning ordinances provided other permits justifying itsexistence have been secured;

4. Where the property is located within an APD/ULRZ but is notoccupied by qualified tenants, and is sold/mortgaged orencumbered under any of the following circumstances:

a. When the sale/mortgage is between members of the samefamily or relatives up to third degree);

b. When the same arose out of partition among co-heirs andco-owners;

c. When the area of the property is less than one hundred 100)square meters;

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d. When the sale/mortgage or other encumbrance was due toan immediate medical emergency which require medicalexpenses or to a need to defray funeral expenses of theimmediate members of the families and extra-ordinaryexpenses in case of fire, flood and other natural calamities;

5. Where non-completion of the development of a portion of thesubdivision is beyond the control of the developer such as deterioration of peace and order, occurrence of force majeure, orthe area has been established to be illegally occupied; shortage ormaterials, extraordinary devaluation of the currency;

6. Lack of foreknowledge in the establishment of any land

use/development project, and/or ignorance of the laws andregulations on locational clearance/subdivision regulationsprovided that both of the following circumstances are also present:

a. either project location is in a remote area, or responsibleofficials failed to disseminate information concerningpertinent requirements; or require the same.

b. Existence of analogous facts/information that may warrant

exemption from fine.

E. Mitigating Circumstances Justifying the Imposition of MinimumRange of Fines

The following mitigating circumstances shall warrant the Impositionof the Minimum Level of Fine:

1. When the violation has very minimal adverse impact on theadjoining areas or projects or on the rights of affectedparties, if any;

2. When the failure to do a required act was due to unforseenor unavoidable circumstances not totally beyond the controlof and brought about by the violator;

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3. W he n the violation although not conforming does not poseany present danger to public hea lth, safety, convenience andpeace and order;

4. W hen the violation can be easily rectified, i.e., thelaw/regulation/condition can still be complied with;

5. W here there was negligence on the part of the violator infalling to immediately comply with the requirements of thelaw but no adverse consequences have been noted;

6. Other additional facts/informations that may mitigate theimposition of minimum range of fine.

F. Aggravating Circumstances Shall Serve to Increase the Liability ofthe Violator and Authorize the Imposition of Maximum Penalties orFines

1. Where the status/standing/experience and otherqualifications of the violator is such that he may be presumeto be already aware of the pertinent requirements of the lawand regu lations;

2. W he n the violator has a history of similar offenses orviolation over several occasions;

3. W here no remedial/corrective measures are made despitedue notices, or even if measures are undertaken the sameare still not adequate;

4. W here owner/developer fails to complete the developm ent ofthe project without just cause or despite the grant of

extension;

5. W here the violation has been established to be deliberatelycommitted or completely without any or reasonable caus e;

6. W he n the project/transaction is subject of actual complaintsfound or established to be valid after proper investigation..

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G. Grounds for Reconsideration of Pena lties/Fines

A motion for reconsideration of an Order Imposing Penalties/Finesmay be filed on any of the following grounds :1. The penalty or fine imposed is not in accordance with nor

authorized by law or existing regulations;

2. The fine imposed is excessive, unreasonab le, oppresive orarbitrary;

3. The findings of facts do not conform to the truth or do notprovide sufficient basis for imposition of fine.

H. Transitory Clemency Provisions

All proponents/owners/developers of projects existing at the time ofthe promulgation of this Board Resolution who secure thenecessary clearance/permits/licenses/approval within six (6)

months from effectivity of this Board Resolution, or rectifyviolations of applicable standards and regulations, shall be relievedof any pecuniary liability before this Boa rd. The reafter, if theysecure the same within the next following six (6) months, thepenalty imposable shall be within the next two (2) ranges lowerthan that prescribed in this Board R esolution.

Proponents/owners/developers of projects established within thenext six (6) months following the adoption of these BoardResolution shall likewise be entitled to exemption from and/orreduction of penalty if they secure the required within six (6)months or one (1) year respectively from the time of theirestablishment or commission of violation.

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I. Effectivity

These Rules and Regulations shall take effect after its publicationfor two (2) consecutive weeks in two (2) newspapers of generalcirculation.

APPR OVE D, 17 August 2000, Makati City.

Approved:

SGD. LEON ORA VASQUEZ DE JESUS

Chairperson, HUDCCEx-Officio Chairperson, HLURB

SGD.) ANTONIO GABRIEL M. LLORENTE SG D.)ROMU LO Q. M. FABULUndersecretary, DOJ Com missioner andEx-Officio Comm issioner Chief Executive Officer

SGD .) FORTUNATO R. ABRE NILLA SGD.)TERESITA A. DESIERTODirector, Legal Staff, NEDA Comm issionerEx-Officio Com missioner

SGD.) FRANCISCO L. DAGNALAN SGD.) ROQUE ARRIETA MAGNOCommissioner Commissioner

Attested:

SGD.) CHARITO M. BUNAGANBoard Secretary