TWENTIETH CONGRESS 
) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
) 
HOUSE OF REPRESENTATIVES 
Introduced by Representative Rufus B. Rodriguez and 
Representative Maximo B. Rodriguez, Jr. 
House Bill No.  1950
EXPLANATORY NOTE 
The scarcity of affordable housing affects all sectors of society, especially our public 
school teachers.  An independent survey revealed that public school teachers have no homes 
to call their own. 
Majority of our public school teachers cannot afford to purchase their own homes at 
market prices since they earn a gross monthly income of Php 10,000 or less.  In addition to 
this, more than 20% of our public school teachers have unemployed spouses, and thus, bear 
the burden of providing for their families.   
There had been efforts to solve this problem by providing for a special housing facility 
through the state pension fund.  However, its implementation never fully materialized.  Thus, 
it is imperative that we provide for a stable housing program for our teachers through 
legislation. 
This bill seeks to institute a housing program for teachers by providing funds through 
loans at affordable interest rates and long-term repayment period. It also seeks to involve the 
private sector in providing housing units exclusively for teachers through the grant of fiscal 
incentives. 
In view of the foregoing, the passage of this bill is earnestly sought. 
 RUFUS B. RODRIGUEZ 
  MAXIMO B. RODRIGUEZ, JR. 
July 15, 2025
5:05 pm


TWENTIETH CONGRESS 
) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
) 
HOUSE OF REPRESENTATIVES 
Introduced by Representative Rufus B. Rodriguez and 
Representative Maximo B. Rodriguez, Jr. 
House Bill No.  1950 
AN ACT 
TO PROVIDE FOR A HOUSING PROGRAM FOR TEACHERS 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
SECTION 1.   Title.  This Act shall be known as the “Teacher’s Housing Program Act.” 
SEC 2.  Declaration of Policy.  It is hereby declared the policy of the State to uplift the living 
conditions of teachers and promote a housing program to enable them to acquire their own 
housing units.  To this end, the State affirms its commitment to strengthen, promote, and 
support the component activities of housing production and finance in order to enable teachers 
to acquire decent housing and basic services at the lowest affordable price. 
SEC 3.  Coverage.  The Program shall cover the teachers of the Department of Education 
(DepEd) with a permanent status. 
SEC 4.  Role of Government Housing and Financing Agencies.  To ensure the 
accomplishment of the objectives under this program, the hereunder mentioned housing 
agencies shall perform the following in addition to their respective existing powers and 
functions: 
(a)
The National Housing Authority shall undertake special housing projects for
teachers.  In addition, it may also provide technical and other forms of
assistance to private developers in the development of housing projects;
(b)
The National Home Mortgage Finance Corporation shall provide the mortgage
market for teacher’s housing through the purchase of teacher’s housing
mortgages and/or issuance of securities.  It shall administer the funds provided
for housing loans and developer assistance under this Act as well as long-term
funds provided by the Government Service Insurance System and the Home
Development Mutual Fund for teacher’s housing.
(c)
The Home Guaranty Corporation shall design an appropriate guarantee
scheme to encourage financial institutions and private developers to undertake
mass housing production for teachers.  It shall administer the Guarantee
System Fund as provided for under this Act.
(d)
The Government Service Insurance System and the Development Mutual fund
shall be the primary provider of funds for long-term housing mortgages.
SEC 5.  Role of the DepEd.  The Department of Education shall undertake the implementation 
of the program among its teachers and shall ensure collection of amortization payments 
through a salary deduction scheme.  In line with this, the DepEd shall: 


(a) 
Create a Teacher’s Housing Secretariat which shall issue and collect the 
necessary documentation, receive and process application, and transfer the 
same to the appropriate housing agencies; 
(b) 
Deduct amortization from their teachers on a monthly basis and remit the same 
to the appropriate agency. 
 
SEC 6.  Program Financing Scheme.  In the implementation of the Teacher’s Housing 
Program, the following shall consist the financing scheme: 
 
(a) 
Housing Loans for Teachers which shall be used for any of the following purposes:  
1. Purchase of a lot and construction of a residential unit thereon; 
2. Purchase of any of the following: 
a. brand new or old existing units; 
b. housing properties mortgaged with any institution; 
c. housing assets being disposed of through public bidding or 
negotiated sale; 
3. Purchase of a fully developed lot within a residential area; 
4. Construction or completion of a residential unit on a lot owned by the 
beneficiary; 
5. Home improvement or any alteration in an existing residential unit; 
6. Restructuring of an existing housing loan in any government housing or 
financial institution, provided that the account is updated. 
Loans provided under this program shall be computed based on a net take 
home pay which shall not be lower than Three Thousand Pesos (P3,000.00).  The 
interest rate on the loan shall not be more than twelve percent (12%) per annum and 
shall be fixed for the entire term of the loan.  Provided, that if the borrower defaults on 
his amortization payment for reasons of his own doing, the financing agency may 
subject the borrower to a regular interest rates for the periods that he is in default. 
To increase the benefits provided to teachers, loans under this scheme shall 
not be subject to such charges, fees or premiums except minimum processing fees to 
be charged by the appropriate agencies. 
Loans provided for teachers earning less than twelve thousand pesos 
(P12,000.00) per month shall not be less than sixty percent (60%) of all available funds 
allotted for this purpose.  At least forty five percent (45%) of the year appropriation for 
the Program shall be for Housing Loans. 
 
(b) 
Developer Assistance Fund.  Proponents or developers of housing projects exclusively 
for teachers and with a selling cost  not exceeding One Hundred Twenty Thousand 
pesos (P120,000.00) per house and/or lot package which shall be available exclusively 
for teachers, may avail of a financing loan not exceeding eighty percent (80%) of the 
entire project cost.  The National Home Mortgage and Finance Corporation, in 
coordination with the HUDCC, shall issue the appropriate guidelines for this purpose. 
At least fifteen percent (15%) of the yearly appropriation for the program shall 
be for developer financing:  Provided, that the unused funds for developer financing 
shall be utilized for Housing Loans. 
 
(c) 
Guarantee System Fund.  There is hereby created a guarantee system fund for 
Teacher’s Housing Loans not exceeding One Hundred Fifty Thousand Pesos 
(P150,000.00) with an interest rate of not exceeding twelve percent (l2%) per annum 
as originate by the funding agencies or their accredited financial institutions.  Such 
loans shall be assigned to the Fund immediately after origination for which the Fund 
shall issue promissory notes.  
At least forty percent (40%) of the yearly appropriation for the Programs shall 
be for the loan guarantee.  The Home Guarantee Corporation shall undertake the 
guarantee system under this act and shall act as the administrator and trustee of the 


fund.  The HGC shall issue the appropriate guidelines within one (1) year from the 
approval of this Act. 
 
SEC 7.  Fiscal Incentives for Private Sector Participation in Teacher’s Housing.  Private sector 
developers who participate in the development of teacher’s housing shall be entitled to the 
following fiscal incentives: 
 
(a) 
Exemption from income taxes for housing projects exclusively dedicated for 
teachers; 
(b) 
Exemption from capital gains tax on housing projects exclusively dedicated for 
teachers; 
(c) 
Exemption from documentary stamp tax for all project related documentation; 
(d) 
Exemption from value-added tax for the project concerned; 
(e) 
Exemption from transfer taxes for both raw and completed projects; and 
(f) 
Exemption from donor’s tax for lands certified by the local government units to 
have been donated to teacher’s housing purposes. 
Provided, that upon application for exemption, the housing development plan shall 
have already been approved by the appropriate government agencies concerned: Provided 
further, that all the savings acquired by virtue of this provision shall be used to minimize the 
cost of the housing units subject to the implementing guidelines to be issued by the Housing 
and Urban Development Coordinating Council. 
The Department of Finance, in consultation with the Housing and Urban Development 
Coordinating Council, shall prepare the necessary implementing guidelines for the proper 
implementation of the tax exemption mentioned in this section within one (1) year after the 
approval of this Act. 
 
SEC 8.  Funding Source.  The Government Service Insurance System and the Home 
Development Mutual Fund shall contribute a total of Two Billion Pesos (P2,000,000,000.00) 
for the initial implementation of the Program.  Thereafter, each institution shall allocate at least 
ten percent (10%) of their annual investible funds for long-term teachers’ housing mortgages 
and shall be made available to the National Home Mortgage and Finance Corporation under 
terms which ensure their repayment.  The National Government shall contribute One Billion 
Pesos (P1,000,000,000.00) annually for the continuous implementation of the Program. 
 
SEC 9.  Appropriation.  The amount necessary to carry out the purposes of this Act shall be 
included in the General Appropriations Act of the year following its enactment into law and 
every year thereafter. 
 
SEC 10.  Separability Clause.  If for any reason, any provision of this Act is declared invalid 
or unconstitutional, the remaining provisions not affected thereby shall continue to be in full 
force and effect. 
 
SEC 11.  Effectivity.  This Act shall take effect fifteen (l5) days after its complete publication in 
at least two (2) newspapers of general circulation. 
 
Approved,