Representative Luis Ferrer IV of the National Unity Party (NUP) wants local government units  (LGUs) that host resettlement projects in another city or municipality to provide the funding for the delivery of basic services and implementation of livelihood programs in the area.

Ferrer said his proposal under House Bill 3195  would spare LGUs the burden of straining their finances as a result of socialized housing or resettlement projects that were implemented because of the relocation of informal settlers from other cities or municipalities.

Under Republic Act  7279, LGUs provide for the basic services and facilities in resettlement projects such as potable water, power and electricity, sewerage facilities and access to primary roads and transportation facilities.

The law, also known as the "Urban Development and Housing Act of 1992" mandates LGUs to give priority to the provision of other basic services such as health, education, communications, security, recreation, relief and welfare.

In instances when there is no relocation or resettlement site available within their jurisdiction, LGUs are compelled to acquire and develop the housing projects in another LGU.

"Unfortunately, in cases where the socialized housing or resettlement area is located in another city or municipality, LGUs no longer bother themselves in providing for these other basic services," Ferrer said.

As a consequence, the LGU where the informal settlers were relocated are burdened with several socio-economic woes which strain its finances to the detriment of its legitimate constituency.

"The sudden influx of people entails additional expenses for the LGU in order to be able to deliver basic services such as education, health, peace and order, for the additional number of residents. These additional expenses were never considered or taken into account when the host LGU prepared its own budget," Ferrer stressed.

Ferrer’s proposal under House Bill 3195 seeks to amend  certain provisions under RA 7279 to correct these flaws.

"The sudden influx of people entails additional expenses for the LGU in order to be able to deliver basic services such as education, health, peace and order, for the additional number of residents. These additional expenses were never considered or taken into account when the host LGU prepared its own budget," Ferrer stressed.

Under HB 3195, the allocation for the basic services and facilities may be taken by the LGU implementing the socialized housing or resettlement from the twenty percent (20%) of the Internal Revenue Allotment appropriated for development projects as mandated under Section 287 of Republic Act No. 7160, otherwise known as the Local Government Code, Ferrer said.