'‘(!l '■ Ol
TWENTIETH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
)
SENATE 
s.No. 6S5
25 JUL 16 P4-.17
RHCEIVi'J CV
Introduced by Senator Christopher Lawrence "Bong" T. Go
AN ACT
PROVIDING FOR A NATIONAL HOUSING DEVELOPMENT, PRODUCTION AND 
FINANCING PROGRAM, REGULARIZING ITS APPROPRIATION FOR ITS 
IMPLEMENTATION
EXPLANATORY NOTE
It is provided under Article XIII, Section 9 of the Constitution that "the 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. It shall also promote adequate 
employment opportunities to such citizens."
However, for the past years, many Informal Settler Families (ISFs) across the 
country continue to live in substandard and precarious housing conditions. The issue of 
social housing remains a pressing concern, not only in the Philippines but globally, as 
urban populations continue to grow and access to affordable, decent housing becomes 
increasingly limited. According to the United Nations, an estimated 25% of the world's 
urban population live in informal settlements, with 213 million informal settlement 
residents added to the global population since 1990.


Hence, a specific housing and financing program is pertinent to meet the country's 
growing social housing demands and meet the needs of numerous underprivileged and 
homeless citizens.
In view of the foregoing, approval of this bill is earnestly sought.
SENATOR CHRISTOPHER LAWRENCE "BONG" T. GO


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.'•f! ■' C [ .
TWENTIETH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
)
)
)
SENATE 
S. No. b o D
25 JUL16 P4:17
Rl.CEi'.
Introduced by Senator Christopher Lawrence "Bong" T. Go
AN ACT
PROVIDING FOR A NATIONAL HOUSING DEVELOPMENT, PRODUCTION AND 
FINANCING PROGRAM, REGULARIZING ITS APPROPRIATION FOR ITS 
IMPLEMENTATION
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 "National Housing 
Development, Production and Financing (NHDPF) Act of2025."
Sec. 2. Declaration of Policy. - It is hereby declared a policy of the state to: a) 
undertake, in cooperation with the private sector, a continuing program of housing and 
urban development which shall make available at affordable cost, decent housing and 
basic services especially to the underprivileged and homeless citizens; b) pursue the 
realization of a modern, humane, economically viable and, environmentally-sustainable 
society where the urbanization process is manifest in towns and cities being centers of 
productive economic activity and is led by market forces; where urban and rural areas 
have affordable housing, sustainable physical and social infrastructure and services
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facilitated under the democratic and decentralized system of governance; and where
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urban and rural areas provide the opportunities for an improved quality of life and


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eradication of poverty; c) ensure that poor dwellers shall be provided with appropriate 
and innovative housing program and support mechanisms to discourage further growth 
of blighted communities; and d) encourage on-site development, whenever feasible, in 
the implementation of housing programs and shall promote the creation of new 
settlements with basic facilities and utilities and development of sustainable urban 
renewal programs.
Cognizant of the role of housing as stimulus of economic growth and development, 
it is hereby declared a state policy to strengthen, promote and support the component 
activities of housing production and finance by ensuring continuous/sustained funding 
support to scale-up the implementation of the major components of the National Housing 
Development and Production Program.
Sec. 3. Statement of Objectives. - The State shall:
(a) Increase housing production by forging partnership among housing stakeholders 
to address the housing needs of the Filipino families by 2040.
(b) Generate and mobilize funds for housing purposes of Filipino families, giving 
priority to the homeless and underprivileged.
(c) Ensure the provision of support mechanisms/subsidy program to improve access 
of Filipino families to a variety of housing options.
(d) Guarantee the development of a strong, sustainable, accessible and affordable 
housing finance system.
(e) Encourage public and private sector participation in the implementation of 
government National Housing Development and Production Financing Program.
Sec. 4. National Housing Development Production Program Implementation. - 
Consistent with the aforementioned policy and objectives, the Department of Human 
Settlements and Urban Development (DHSUD) and its attached Key Shelter Agencies, 
shall intensify the implementation of the vital components of the National Housing


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Development Production and Financing Program. The implementation of this program 
shall be carried out by the following agencies:
A. National Housing Authority (NHA) - The sole national government agency tasked 
to implement and develop the following housing programs intended for the bottom thirty 
percent (30%) of the income population:
1. Resettlement - This program addresses the requirements of families affected by 
a) government infrastructure projects, b) those living along danger areas and c) 
those affected by Supreme Court Mandamus. It entails the provision of vertical 
and/or horizontal housing units, community facilities, socio-economic and other 
community support programs. The program also involves the implementation of 
local/regional resettlement projects as joint National Government-Local 
Government undertakings to address the resettlement requirements of Local 
Government Units (LGUs) outside Metro Manila involving families in danger areas, 
those affected by infrastructure projects, indigenous peoples and former rebels. 
The government infrastructure agencies shall submit an inventory of Informal 
Settler Families to be affected by their projects and their location to the appropriate 
housing agencies at least two years prior to its implementation and shall 
incorporate in their respective project costs the amount needed for the relocation 
and resettlement of affected families.
2. Government Employees Housing Program - This program is intended to provide 
decent and affordable housing to low-salaried government employees.
3. Settlements Upgrading- This program aims to address the security of tenure and 
infrastructure requirements of informal settlements on government-owned lands 
proclaimed or designated as socialized housing sites.
4. Housing Program for Calamity Victims - This program is intended to respond to 
the housing needs of low and marginal-income and/or informal shelter families for 
transitional and/or permanent shelter affected by calamities such as typhoons, 
landslides, earthquakes, and fires for relocation to safe areas.


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5. Land Banking - This refers to the acquisition of land, which includes idle 
government lands, at values based on existing use in advance of actual need to 
promote planned development and socialized housing programs with a view to 
distribute the land to qualified socialized housing beneficiaries. It covers survey 
and titling of individual lots for disposition to qualified occupants, infrastructure 
development, housing construction and rehabilitation of existing project sites.
B. Social Housing Finance Corporation (SHFC) is mandated to undertake social housing 
programs that will cater to the formal and informal sectors in the low-income bracket 
and to take charge of developing and administering social housing programs, 
particularly the Community Mortgage Program and its different modalities:
1. Community Mortgage Program (CMP) - This is a mortgage financing program, 
which assists legally organized associations of underprivileged and homeless 
citizens to purchase and develop a tract of land under the concept of community 
ownership. The primary objective of the program is to assist residents of blighted 
or depressed areas to own the lots they occupy, or where they choose to relocate 
to, and eventually improve their neighborhood and homes to the extent of their 
affordability. The different modalities of the CMP are as follows:
a) Sectoral CMP - a CMP modality that caters to the different sectoral groups 
including but not limited to the basic sector groups needing resettlement 
assistance. A sectoral group represents a group or coalition of persons who 
share similar concerns and interests and intend to avail of resettlement 
assistance from SHFC, including Indigenous Peoples (IPs), Indigenous Cultural 
Communities (ICCs) and other ethnic minority groups.
b) Housing for Peace Process and Nation Building CMP - a CMP modality which 
would lead to the achievement of national peace and development through the 
provision of housing to former rebels/rebel returnees (FR/RR). This also 
includes rebuilding damaged or destroyed homes in post conflict-areas of 
internally-displaced persons (IDPs).


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c) Post-Disaster Rehabilitation and Reconstruction CMP - a CMP modality which 
provides assistance to community housing projects in times of disaster. This 
program allows the communities to immediately embark on house construction 
and site development which adhere to the minimum standards and 
specifications of the design and structural components of disaster-resilient 
housing projects, as well as materials.
d) Industrial Workers CMP - a CMP modality intended primarily for low-income 
employees of companies engaged in agro-industrial, industrial processing zone, 
tourist, recreational, commercial and other enterprises.
e) Site Upgrading/Development CMP - a CMP modality intended to provide site 
development and housing/building construction loans for projects whose lands 
are donated by private or public entities applicable to both onsite or 
resettlement projects.
f) Mixed-Use CMP - a CMP modality aimed at developing a self-sustaining 
community by having a balanced mix of residential and commercial spaces, 
well developed infrastructure and recreational amenities along with green and 
open spaces and wellness areas. Under this modality, 9% of the project area 
shall be allotted for green spaces and 1% of project area for friendly facilities 
of Persons with Disabilities (PWD).
National Home Mortgage Finance Corporation (NHMFC) - A government corporation 
mandated to increase the availability of affordable housing loans to finance the Filipino 
homebuyers on their acquisition of housing units through the development and 
operation of a secondary market for home mortgages.
Department of Human Settlements and Urban Development (DHSUD) The primary 
national government entity responsible for the management of housing, human 
settlements and urban development including the implementation of the following 
programs:


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1. Public Housing - This is a housing program that is owned and/or managed by the 
government for the purpose of providing security of tenure to the underserved 
families including but not limited to the development of proclaimed socialized 
housing sites intended to promote the establishment of new towns, new 
settlements, and urban renewal. The term "underserved families" refers to those 
who are disadvantaged in terms of access to basic services because of inability to 
pay or other disparities by reason of economic or social status, ethnicity, 
geographical isolation, and other circumstances.
2. Subsidy - This is a financing assistance scheme intended to enhance the 
affordability of well targeted and most financially incapable segment of the society. 
The DHSUD, in coordination with other national government agencies, shall be 
authorized to formulate the criteria and guidelines to select the beneficiaries that 
may qualify for the subsidy program.
3. Public Rental Housing- this program involves the extension of fiscal assistance of 
up to a maximum of fifty percent (50%) of the total construction cost for the 
national government agencies and LCDs that shall construct and operate public 
rental accommodation to eligible low-income families and housing safety net for 
the vulnerable sectors. The DHSUD shall formulate the guidelines in the 
implementation of public rental housing assistance including the adoption of the 
lease/rental buy-back scheme.
4. Survey of proclaimed lands for socialized housing and inventory of government 
idle lands - This involves the survey of all occupied government lands proclaimed 
by the President as suitable for socialized housing and conduct of inventory of 
government lands which have been idle for more than ten (10) years except lands 
owned by the GOCCs and government financial institutions engaged in shelter 
financing as part of its fiduciary obligations to its members and/or taken possession 
of in their ordinary conduct of business.
5. Such other program components as may be determined by the DHSUD


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Sec. 5. Appropriation by the National Government. - The amount necessary for 
the implementation of this Act is hereby authorized to be appropriated in the General 
Appropriations Act commencing from the year immediately succeeding the effectivity of 
this Act and until such time that the total fund requirements provided for in this Act shall 
have been fully released.
Sec. 6. LGU Source of Funds. - All local government units are hereby authorized 
to impose an additional one-half percent (0.5%) tax on the assessed value of all lands in 
urban areas. The proceeds from the imposition of Socialized Housing Tax shall accrue to 
the special funds of the LGUs, which shall be used for the development of socialized 
housing projects and construction and estate management of public rental housing of the 
LGUs.
Sec. 7. Implementation of the Securitization, Capital and Secondary Mortgage 
Operations Program. - The NHDP Securitization for the development of the secondary 
market for home mortgages of and other housing related receivables, conveyances and 
financial instruments and the development/promotion of and investments in new housing 
related financial instruments and investment vehicles and the capital markets thereof, to 
increase and sustain funds available for housing and home development shall be 
implemented as follows:
1. The NHMFC shall be the sole implementing agency for the NHDP securitization; 
and
2. The NHMFC in coordination with the DHSUD, DOF and BSP and other concerned 
agencies and private sector organizations, shall formulate a program, the proceeds 
of which shall accrue to the Centralized Housing Fund.
3. The mortgages to be generated as a result of the implementation of the 
component programs of the NHDP Program shall be sold and transferred to 
NHMFC, which shall also serve as asset pool for securitization.
4. The NHMFC as the sole agency for the implementation of the NHDPA Securitization 
shall manage the whole securitization process which includes the following


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activities: determining the eligibility criteria for the asset pool; defining the 
preliminary structure of the notes, bonds and or instruments to be issued, third 
parties to be hired; and education/briefing of target investors for all the issues.
5. The NHMFC and NHDPFA-issued bonds, notes and securities shall be exempt from 
the registration requirements under the Securities Regulation Law in order to 
accelerate the issuance of its housing related securities/financial instruments and, 
thus, more reasonably provide the necessary fund for housing developments.
6. Transactions by banks involving the purchase and sale of housing bonds, 
debentures and such other similar instruments shall be exempt from the twenty 
percent (20%) final tax on income, documentary stamps tax, gross receipts tax 
and value added tax.
7. The investors' yield or income from any socialized housing or economic housing- 
related bond or asset-backed securities (ABS) issued by NHMFC directly or through 
a special purpose entity under the Securitization Act shall be exempt from income 
tax. Such issuances shall enjoy all the tax exemptions granted under Republic Act 
No. 9627 or the Securitization Act of 2004 pursuant to the State's policy of 
promoting the securitization of mortgage and housing-related receivables of 
government housing agencies, to generate investment and accelerate the growth 
of the housing finance sector, especially for socialized and economic housing.
8. Bonds purchased by private real estate developers shall be considered as an 
alternative compliance to the balanced housing requirements under section 18 of 
RA 7279 as amended by RA 10884, subject to the rules promulgated by the 
Department of Human Settlements and Urban Development.
9. The Philippine Guaranty Corporation created pursuant to Executive Order No. 58 
(S. 2018) shall guaranty payment of the balance outstanding and due on the 
guaranteed principal obligation, plus interest and yields thereon up to eleven 
percent (11%) per annum for socialized housing packages, ten percent (10%) per 
annum for low-cost housing packages, nine and a half percent (9.5%) per annum 
for medium-cost housing packages and eight and one half percent (8.5%) per 
annum for open housing packages.


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Sec. 8. Capitalization of National Home Mortgage Finance Corporation (NHMFC). - 
The authorized capital stock of the NHMFC is hereby increased from P5,500,000,000.00 
pesos to P50,000,000,000.00 pesos to expand its leveraging capacity based on the 
volume of mortgage loans being serviced to improve its profitability by reducing the 
average cost of its fund made available for home lending programs.
The capital of the National Home Mortgage Finance Corporation (NHMFC) shall be Fifty 
billion pesos (P50,000,000,000.00), to be fully subscribed by the Government of the 
Republic of the Philippines, hereafter referred to as the Government: Provided, That half 
of the capitalization shall be funded from the General Appropriations Act and the other 
half shall be funded from the declared dividends of the NHMFC in favor of the National 
Government. For this purpose, any and all declared dividends of the NHMFC in favor of 
the National Government shall be deposited in a special account in the General Fund, and 
earmarked for the payment of NHMFC's increase in capitalization. Such payment shall be 
released and disbursed immediately and shall continue until the increase in capitalization 
has been fully paid."
Sec. 9. Tax Exemptions.-l\\e NHMFC shall be exempt from all national, provincial, 
municipal and city taxes on income derived from its governmental functions, specifically 
income from its activities or transactions in the exercise of its mandates.
Sec. 10. Multi-Year Obiigationai Authority. - The Secretary of the DHSUD and 
Heads of its attached housing agencies, pursuant to the National Housing Development, 
Production and Financing Program, projects and appropriations approved by Congress, 
shall, subject to the provisions of existing laws and regulations including those of the 
Commission on Audit and other such terms and conditions most favorable to the 
government, be given multi-year obligational authority for housing program or project 
which will take more than one year to complete that requires multi-year appropriations.


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Sec. 11. Private Sector Participation - To fast track the approval and 
implementation of housing projects and reduce the cost of socialized and low-cost 
housing units, the Bureau of Internal Revenue, the Department of Agriculture, the 
National Irrigation Authority, the Philippine Coconut Authority, the Sugar Regulatory 
Administration, the Department of Agrarian Reform, the Department of Environment and 
Natural Resources, the Mines and Geosciences Bureau, the Laguna Lake Deveiopment 
Authority the Department of the Interior and Local Government, the Local Government 
Units, the Land Registration Authority and the Department of Human Settlements and 
Urban Development shall facilitate the release of the required housing-related permits, 
licenses, certifications and tax exemptions/rulings in accordance with Repubiic Act 11032 
or an Act Promoting Ease of Doing Business and Efficient Deiivery of Government Services 
Amending for the Purpose Republic Act 9485 Otherwise Known as the Anti-Red Tape Act 
of 2007 and for Other Purposes and Executive Order No. 45 (S. 2001).
In case the responsible officers of the agencies concerned fail or refuse to dispose of the 
application within the periods prescribed under RA 11032, the applicable administrative 
and criminal liability as stated in Section 22 of RA 11032 shall be imposed.
All the incentives enumerated under Section 20 of Republic Act 10884 or an Act 
Strengthening the Balanced Housing Development Program, Amending for the Purpose 
Republic Act No. 7279, as Amended, Otherwise known as the Urban Development and 
Housing Act of 1992 shall be extended to the private sector engaged in socialized and 
low-cost housing development including the construction and estate management of 
public rental housing.
The participation of owners and/or developers in any of the component programs of the 
NHDPFA shall be treated as one of the manners of compliance to the balanced housing 
requirements subject to the conditions set forth under RA 10884.
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Sec. 12. Collection Efficiency. - In order to improve collection efficiency, the NHA, 
SHFC and NHMFC shall have authority to foreclose mortgages, and/or evict beneficiaries 
in accordance with existing laws.
Sec. 13. Implementing Rules and Regulations. - The DHSUD promulgate rules and 
regulations necessary for the implementation of this Act. shall
Sec. 14. Repealing Clause. — All laws, decrees, executive orders, proclamations, 
rules and regulations and the issuances, or parts thereof which are inconsistent with the 
provisions of this Act, are hereby repealed, amended or modified accordingly.
Sec. 15. Pena! Clause - Any person who violates any provision of this Act shall be 
imposed the applicable administrative and criminal liability as stated in Section 22 of RA 
11032 or the Ease of Doing Business and Government Service Delivery Act of 2018.
Sec. 16. 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. 17. Effectivity Clause. -This Act shall take effect fifteen (15) days after its 
complete publication in at least two (2) national newspapers of general circulation.
Approved,
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