Republic of the Philippines
HOUSE 0F REPRESENTATIVES
Quezon City, Metro Manila
NINETEENTH CONGRESS
Second Regular Session
HousEBILLNo.    9911
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Introduced by Representative Ivan Howard A. Guintu
EXPLANATORY NOTH
Section 9, Article  13 of the 1987 Constitution provides that "[t]he State shall, by law, and
for the common good, undertake, in cooperation with the private sector, a continuing program of
urban land reform and housing which will make available at affordable cost decent housing and
basic  services to underprivileged and homeless citizens in urban centers and resettlement areas.
Furthermore,  Section  2  (a)  of Republic  Act  No.  7279  otherwise  known  as the Urban
Development and Housing Act of 1992 provides that the  State shall "[u]plift the conditions of
the  underprivileged and homeless  citizens  in urban areas and in resettlement areas by making
available to them decent housing at affordable cost ,... "
Despite  these  provisions,  socialized housing remains unattainable  for the  State's target
beneficiaries. As reported by the Commission on Audit (COA), the National Housing Authority
(NIIA) faces difficulties in collecting amortization payments regularly and within the scheduled
payment from its beneficiaries  despite the modemization of its collection methods. COA noted
that this is due to the financial incapability of the beneficiaries to pay its dues.
Furthermore,   according   to   the   2022   Performance   Scorecard   of  the  NIIA  ~  Estate
Management  Department,  as  of June  2022, the NHA has  a total of 22,635  housing units that
were already awarded but remained unoccupied or vacant.
This bill seeks to condone all unpaid interests, including surcharges due from loans used
for amortization of socialized housing units incurred by beneficiaries of socialized housing units
awarded in 2004 and the preceding years. Furthermore, if the NHA has confirmed that socialized
housing units  are  abandoned,  unlawfully transferred,  illegally occupied,  or the beneflciary has
violated occupancy rules  and regulations,  the right of the beneficiary to the socialized housing
unit shall be canceled, and shall be acquired and re-awarded to other deserving beneficiaries.


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In line with the State's goal of providing a decent and affordable house to the 3.7 million
informal  settler  families  in  the  country,  the  State  shall  maximize  its  unutilized  or  illegally
occupied  socialized  housing  units  in order to provide housing to  deserving beneficiaries.  It is
likewise  imperative  of the  State  to  provide  financial  stability  to  existing  socialized  housing
beneficiaries.   This   shall   help   reduce   the   financial  burden   of  existing   socialized  housing
beneficiaries  in  order  for  them to  live  a productive and fruitful  life,  free  of financial burdens
incurred from the payment of socialized housing units provided by the State.
In view of this, early passage of this bill is sought.


Republic of the Philippines
HOUSE 0F REPRESENTATIVES
Quezon City, Metro Manila
NINETEENTH CONGRESS
Second Regular Session
HousE BILL No.  9911
Introduced by Representative Ivan Howard A. Guintu
AN ACT
PRESCRIBING  THE  AUTHORITY  0F  THE  NATIONAL  HOUSING  AUTHORITY
(NHA)     TO     GRANT     CONDONATI0N     T0     ITS     SOCIALIZED     HOUSING
BHNEFICIARIES WITH DELINQUENT ACCOUNTS, CONDONING THEREBY ANY
UNPAID AMORTIZATION, ASSOCIATION DUES 0R ANY MISCELLANEOUS FHHS;
OR   ACQUIRH   ANI)   AWARD   THH    SAME   T0   QUALIFIED   BENEFICIARIES
THROUGH  TIIE  PAMBANSANG PABAIIAY PARA SA PILIPINO (4PH) PROGRAM
AND APPROPRIATING FUNDS THEREFOR
Be it enacted by the Senate and the House Of Representatives Of the Philippines in Congress
assembled:
Section   I.  Srfeor£  T¥ffe.   -  This  Act  shall  be  known  as  the  "NHA  Condonation  and
Acquisition Act of 2024."
SEC. 2. Dcchar¢#.oi. a/PoJz.c}?. -   It is the policy of the State to ensure a continuing and
sustainable program for urban land reform and housing which shall make available affordable,
and  decent  housing  with  basic  services  to  underprivileged  and  homeless citizens,  in order to
guarantee fieedom from poverty, higher standard of living, and improved quality of.life for all.
The State, in partnership with the private sector, and its stakeholders shall also:
a.    Expand  people's   access   to   affordable,   adequate,   safe   and   secure  shelter  in
we ll-planned communities ;
b.   Enable informal  settler families to live in resilient, vibrant, and connected urban
communities;


c.    Promote inclusive and integrated housing that are culturally sensitive, responsive
to   local   context  and/or  special   needs,   and  in  accordance  with   appropriate
standards and designs;
d.   Encourage  and sustain investments in the housing and urban development sector
by,    among    others,    promoting    partnerships,    improving    market    linkages,
simplifying government procedures and facilitating access to finance;
e.    Improve affordability of housing programs and projects;
f.    Promote climate change, resilient housing and basic infrastructure; and
9.   Make land available and accessible for housing.
SEC.  3.  Sfu/t?rmc«f  a/ Ody.ecrfu;cs.  -    The  State  shall  integrate  all  laws  relating to the
National Housing Authority (NHA) to effectively achieve the following objectives:
a.    Develop   integrated,   sustainable,   safe,   affordable   and  resilient   communities,
particularly   for   the   underprivileged   and   homeless,   as   well   as   low-income
households;
b.   Implement innovative and alternative solutions in addressing the housing needs of
informal settlers families, the lower-income classes, and the vulnerable sector;
c.   As a government-owned and -controlled corporations, to generate income through
the efficient utilization of existing and future assets to support the programs of the
authority;
d.   Adopt viable land acquisition and management approached;
e.    Strengthen housing as a platform to reduce povtry, promote climate resilience,
improve social outcome; and
f.    Intensify and widen its authority and functions to effectively fulfill their mandate.
SEC. 4.  CotJcr¢gc.  - This Act covers  all NIIA Projects  such as house and lot, medium
rise buildings, and condominiums including the improvement and rights that are:
a.    Delinquent Accounts;
b.   Illegally/unlawfully  transferred,  sold,  leased,  sublet encumbered and mortgaged
illegally by the original awardees or otherwise dispose of histher lot and/ or units;
c.    Abandoned;
d.   Unoccupied  -  has  no  legitimate  record  of award  and/or  registration under   the
name of any beneficiary; and
e.   Canceled,  and  surrendered  due  to  violation  of the NHA Occupancy Rules and
Regulations.


SEC.   5.   Proced#re.   -   NHA   urifomi   guidelines   to   govern  the   condonation;   or
cancellation, acquisition, and awarding of units to qualified beneficiaries.
I.       Inventory and verification
NHA, through the  aid of the concerned Local  Government Units  (LGUs),  shall
conduct an inventory and status of all covered NHA housing/units enumerated in
Section 4.
11.      Condonation or cancellation of Award
a.   NHA Condonation progra[m
This Act shall cover the total condonation of all unpaid amortization lease
payments   and  association   dues   of  the   awardees   beneficiaries   in  the
Socialized  Housing  Program  of the NHA,  including any  surcharges  and
penalties  emanating  thereto.  Upon  effectivity  of this  Act, the  individual
delinquent payments of the Awardees shall be condoned and written off
by  the  Government  thereby relieving them from the burden of payment
thereof.  Provided,  the  NHA  shall  submit  the  detailed  list  of the  actual
unpaid   amortization/lease   payment   for   each   awardee  plus   penalties,
interests,  and surcharges  in order to  determine the amount of total debts.
Such copy shall be furnished to the House of Representatives  as part of
Congressional Records.
Only beneficiaries  awarded with socialized housing units by the NHA in
2004  and the preceding years shall be covered by the NHA Condonation
Program.
In the case of occupation of housing units by another party other than the
beneficiary  or  any  member  of his  household  by  virfue  of  sale,  lease,
transfer, other forms of disposition, contrary to the terms of the award, or
by  tolerance,  the  award of the  original beneficiary  shall be revoked and
shall be transferred to the actual occupants of the housing unit.
The    Department    of   Human    Settlements   and   Urban   Development
(DHSUD) shall issue a Certificate of Condonation in favor of the Awardee
which  shall  be  annotated  in  their  Certificate  of Entitlement to Lot/Unit
Allocation (CELA). Provided finally that the Condition and Restriction of
use and possession of awarded housing project explicitly provided under
RA 7279 shall still apply.
b.   C¢#ccJ7¢fl.o# - the award and/or rights for the following shall be canceled
by the NHA if:
i.  Abandoned - units not inhabited by the awandees beneficiaries
nor  its  successors  or heirs  continuously  for at least one  (1) year


through Occupancy Verification Report (OVR) by the NHA project
coordinator and LGU concerned.
ii.    Unlawful    transfer    -    Awardee/s   who   unlawfully    sold,
transferred,  mortgaged,  or  otherwise  disposed  of his/her  lot/lot
with  housing  unit/condominium  unit  or  any  right  thereon,  the
transaction shall be null  and void. The same shall  lose the right to
land  or housing unit,  and  forfeit the payment fees made thereon
and shall be barred from the benefits of RA 7279 for a period of
ten (10) years from the date of violation;
iii.  Illegally occupied -  NHA shall have the power to summarily
eject, without necessity of judicial order, any and all illegal settlers
on any of its projects, as well as any illegal occupants in any home
lot,  apartment,  dwelling  units,  owned,  and  administered  by  it:
Provided,   That  this   is  without  prejudice  to  the  provisions  of
Section 5,11 (a), Paragraph 3.
iv.   Violation   of  Occupancy   Rules   and   Regulations  -   Any
violation of the awardee of the Occupancy rules and Regulations as
stipulated  in   the   Contract   shall     be  reported  to  the     District
Manager by the concerned staff who are undertaking the housing
project.  The  Notice  of Eviction  shall  be  signed  by the Regional
Manager. The said awardee shall be given two (2) warnings for the
reported violation.
Cancellation  of the  Award shall be rendered, if despite warnings
the  said    awardee    continues    violating    the      said   Occupancy
Rules and Regulations.
Ill. Acquisition and Awarding of Units.
All canceled awards due to grounds enumerated in Section 5,11 a) herein shall be
acquired by the DHSUD, and shall be integrated in the housing allocation of the
Pambansang Pabahay Para sa Filipino Housing (4PH) Program to be awarded to
qualifiedbeneflciary/ies.
Upon cancellation, the DHSUD shall refund a cash surrender value equal to fifty
percent (50%) of the total payments made by the Awardee, if any, except for those
awardees  who  unlawfully  disposed  of or  tran`sferred  their units.  The  DHSUD
shall provide for implementing mles for the payment thereof.
The  procedure  for  awarding  to  other  qualified beneficiary/ies  shall  follow  the
same manner of disposition for regular awards in R.A. 7279.
Secrfu.o# 6.  ggi##/gcofro"s.  -  Target beneficiaries of said housing units include walk-in applicants
who submitted Housing Information Forms (HIFs) and letter requests in NHA offices and those
endorsed to NHA by other government offices; LGUs informal settler families (ISFs) who are in


danger areas and those affected by infrostructure projects;  and LGU and National Government
Agency   employees   where   the   housing  project  is  located  provided  they  pass  the  existing
eligibility and criteria as provided in Sec.16 of R.A. 7279 and in addition:
a.   Those who do not have any record of violation of the NHA occupancy rules and
regulations;
b.   No  present  record   of any   unpald   amortization  and   association   dues   upon
application;
c.    Not   been   awarded   with   any   NHA   housing   project   (housethouse   and   lot,
condominium); and
d.   Not occupying any illegally transferred units from original beneficiaries.
£ec#.o7.  7. 4ppraprfatr.o».  -  The funds necessary to carry out the initial implementation of this
Act shall be charged against available appropriations of the NI-IA subject to existing budgeting,
accounting   and   auditing  laws,  rules,  and  regulations.  The  appropriations  necessary  for  the
continued  implementation of this Act in succeeding years shall be prepared in accordance with
regular    government   budget procedures    and   shall   be   included   in the   budget   under the
annual General Appropriations Act (GAA).
Scctr.o"  8.  Sepflmb!.Jtry  CJ¢#sc.  -    If   any     portion   of   provision    of   this Act is  declared
unconstitutional, the remainder of this Act or any provision not affected thereby shall remain in
force and effect.
Seedon  9.  Implemerlting  Rules  and  Regulations.  - There is hereky   orca:ted   a;n intera,geney
committee, headed by the NIIA and DHSUD, with the GFI's and private financial institution/s
concerned,  tasked to promulgate the implementing rules and regulations within sixty (60) days
from the effectivity of this Act.
Sectr.o# JO. R€pc¢/I.#g CJ¢wsc. -  All   other laws,  acts,  presidential  decrees,  executive  orders,
issuances, presidential proclamations, rules, and regulations or parts thereof; which are contrary
to  and   inconsistent   with   any   provision   of this   Act,   are   hereby   repealed,   amended   or
modified accordingly.
Sccfr.o#  JJ.  E/Tccfivrty.  -    This  Act  shall  take  effect  immediately  upon  its  publication  in the
Official Gazette or in a newapaper of general circulation.
Approved,