FOURTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
) 
Third Regular Session 
) 
SENATE 
9 
SEP 22 P 2 :,1,.5 
S. B. NO. 3457 
Introduced by Senator Villar 
EXPLANATORY NOTE 
Shelter is universally recognized by the community of nations as one of 
the basic needs of man. To live in a home and to have one's own place to reside 
with peace, security and dignity is everyone's dream. Unfortunately, a great 
number of Filipinos, among them teachers, still do not have a house of their 
own, despite various housing programs being administered by different 
national shelter agencies,' such as the Home Development Mutual Fund (Pag­
IBIG Fund), the National Housing Authority (NHA), the Government Service 
Insurance System (GSIS) and the Social Security System (SSS). 
Despite being considered as one of the main pillars of a sound and 
progressive society since they bear the weight and responsibility of imparting 
knowledge and values to children, the low-salaried teachers are being left out 
as recipients to these programs mainly because of the strict financial 
requirements for a housing loan nowadays. It is just but proper and fitting 
that government should recognize their efforts and sacrifices by allotting a 
portion of its budget for their shelter needs. 
Moreover, as teachers are 
considered among the catalysts for national recovery, there is a need to provide 
them affordable housing units to boost their morale and improve their quality 
of life. 
This bill, therefore, aims to provide affordable housing units to teachers 
at a fixed low-interest rate with easy payment schemes and long term payment 
period by institutionalizing a Housing Program for qualified Public School 
Teachers who have served at least five '(5) years. To effectively implement the 
provisions of this Act, a Housing Secretariat in every regional office of the 
Department of Education (DepEd) shall be established which shall serve as a 
liaison office for the applicant-public school teachers. Under the proposed 
measure, participating non-government organizations (NGOs) and other private 
development corporations or entities to the" Program shall be granted tax 
incentives. 
It is believed that this special benefit will attract others to enter into the 
noble profession of teaching. 
In view of the foregoing, early passage of this proposed measure IS 
earnestly requested. 


'" 
(Jf"tGl! Or', ,;,.."kt rf~.AY 
FOURTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
) 
Third Regular Session 
. ) 
9 
SENATE 
S.B. NO. 3'457 
Introduced by Senator Villar 
AN ACT 
TO INSTITUTIONALIZE A HOUSING PROGRAM FOR PUBLIC SCHOOL 
TEACHERS, APPROPRIATING FUNDS THEREFOR AND FOR OTHER 
PURPOSES 
Be it enacted by the Senate and House of Representatives of the 
Philippines in Congress assembled: 
SECTION 1. Short· Title. - This Act ,shall be known as the "Public 
School Teachers Housing Program Act of 2009." 
SEC. 2. Declaration of Policy. 
It is hereby declared the policy of the
M 
State to promote sustainable human development by providing its people with 
decent and adequate housing units at affordable costs. Pursuant to this policy 
and to improve the quality of life of public school teachers, there is a need to 
institutionalize a Housing Program in the Department of Education (DepEd) 
that shall provide them the opportunity to have a house of their own. 
SEC. 3. The Public School Teachers Housing Program. - The Public 
School Teachers Housing Program, hereinafter referred to as the Program, shall 
.be institutionalized to provide housing loans strictly to qualified public school 
. 
teachers for an affordable housing units. 
It shall be administered by the 
DepEd and shall have the following special features: 
(1)  Payable within a period of twenty (20) to thirty (30) years, depending 
upon the age of teachers at the time 'of approval of the housing loan 
application; 
(2)  With a fixed interest rate of five percent (5%) per annum; and 
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(3) Payment of equity of not more than five percent (5%) of the total 
purchased price of the property. 
SEC. 4~ Creation of a Housing Secretariat in DepEd. -
There shall be 
created a Housing Secretariat in every regional office of the DepEd which shall 
have the following functions: 
(a)  Issue loan application forms and collect the necessary documents; 
(b)  Receive and process housing loan applications; 
(c)  Transmit the necessary documents to the appropriate housing 
agencIes; 
(d)  Deduct amortization from teachers on a monthly basis and remit the 
same to the concerned financing agencies; 
(e)  Provide data on various government and private financing institutions 
for housing loans; and 
. 
(f)  Encourage the participation of local. government units (LGUs), non­
governmental 
organizations 
(NGO's) 
and 
private 
development 
corporations or entities. 
SEC. 5. 
Eligibility to the Housing. Program. - Any public school 
teacher who possesses the following qualifications shall be eligible to the 
Program, to wit: 
a.  He or she has a permanent app.ointment status; 
b. 
or she has rendered at least five (5) years teaching service; 
c.  He or she does not own any housing' unit; 
d.  He or she has not yet availed of any housing program; and 
e.  He or she is not over sixty-five (65) years of age at the time of the filing 
of loan application and must be insurable. 
SEC. 6. 
Prohibitio~. - Sale or conveyance of the property subject of the 
loan agreement or transfer of rights thereto shall be strictly prohibited, unless 
the transfer shall be made in favor of a' family member up to the second (2nd) 
2  


degree by consanguinity of the concerned public school teacher, or In the 
absence thereof, to another qualified public school teacher. 
SEC. 7. 
Financing Schemes of the Program. -
The Program shall 
provide the following financing schemes for the: 
(a)  Purchase of a lot and construction of a residential unit thereon; 
(b)  Purchase of any of the following: 
1.  Brand-new or old existing units; 
2.  Housing properties mortgaged with any institution; and 
3.  Foreclosed properties being disposed of through public bidding 
or negotiated sale. 
(c)  Purchase of a fu!ly developed lot within a residential area; 
(d)  Construction of a residential unit on a lot owned by the beneficiary; 
and 
(e)  Housing units offered at housing. fairs by government financial 
institutions, NGOs and private development corporations or entities. 
SEC. 8. 
Participation of LGUs, NGOs and Private Development 
Corporations or Entities. -
Participating 
LGUs, NGOs and private 
development corporations or entities shall be directed to identify 
possible 
housing sites for purposes' of this Act. 
SEC. 9. Incentives to NGOs and Private Development Corporations 
or Entities Participating in the Program. - All transactions with respect to 
the implementation of this Program actively undertaken by NGOs and private 
development corporations or entities, shall, be exempted from capital gains, 
documentary stamp, value-added and transfer taxes, 
SEC. 10. Appropriations. - For the initial implementation of this Act, 
the amount of 
One Hundred Million Pesos (P100,OOO,OOO.OO), shall be 
appropriated out of the funds from the National Government not otherwise 
appropriated. Thereafter, the amount necessary to carry out the provisions of 
3  


this Act shall be included in the budgetary allocations for the DepEd in the 
annual General Appropriations Act. 
SEC. 11. 
Implementing Rules and Regulations. - The 
DepEd, in 
coordination with the Home Development Mutual Fund (Pag-IBIG Fund), the 
National Housing Authority (NHA), the National Home Mortgage Finance 
Corporation 
(NHMFC), 
the 
Home 
Guarantee 
Corporation 
(HGC) , 
the 
Government Service Insurance System (GSIS), the Social Security System (SSS) 
and the Department of Interior and Local Government (DILG), 
shall 
promulgate the necessary rules and regulations to effectively implement the 
provisions of this Act; Provided, That all existing housing programs for public 
school teachers shall be incorporated under the Program. 
SEC. 12. Annual Report. - Within ninety (90) days after the end of 
every fiscal year, the DepEd shall render an annual report of its 
accomplishment to Congress and to the office of the President. 
SEC 13. 
Separability Clause. - If any provision of this Act, or any 
part thereof be declared invalid or unconstit~tional, the remaining provisions 
not affected thereby shall continue in full force and effect. 
SEC.14. . Repealing 
Clause. 
All 
laws, 
presidential 
decrees, 
, 
proclamations, executive orders, 
rules and regulations 
or parts thereof, 
inconsistent with the provisions of thi~ Act are hereby repealed or modified 
accordingly. 
SEC. 15. 
Effectivity. - This Act shall take effect after fifteen (15) days 
following its complete publication in the Official Gazette or in at least two (2) 
newspapers of general circulation. 
Approved, 
4