Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. _______ 
Introduced by HON. GUS S. TAMBUNTING 
AN ACT  
PROVIDING FOR A NATIONAL HOUSING DEVELOPMENT, PRODUCTION, AND FINANCING 
PROGRAM, AND REGULARIZING ITS APPROPRIATION FOR ITS IMPLEMENTATION 
EXPLANATORY NOTE 
For the past few decades, labor surplus and low income in rural areas have forced laborers to migrate to 
urban centers in the country in search of work opportunities. Due to the lack of affordable housing options 
in urban centers, these migrants tend to settle informally along waterways, under bridges, and power lines. 
Aside from this, the Philippines is frequently hit by seismic activity, typhoons, and other natural disasters 
every year which led to the destruction of homes.  
The current Philippine housing demand exceeds supply with almost 6 million homes needed to be built for 
impoverished Filipinos, most of which are in the country’s capital—Metro Manila. This number increases 
yearly as the country’s population is steadily increasing and families across the country are displaced due 
to numerous calamities and armed conflicts in the countryside. 
Despite this huge backlog in housing, the National Housing Authority is creating fewer units than expected 
to address the country’s backlog. In 2019, NHA completed only 117,167 of the 203,471-intended housing 
for victims of Typhoon Yolanda which happened to leave more than 1 million families homeless.  
This proposed measure seeks to address the country’s housing backlog by ensuring continuous funding for 
the implementation of the National Housing Development and Production Financing Program. It also aims 
to increase housing production by creating partnerships with housing stakeholders to address the housing 
needs of Filipino families. It will also provide support mechanisms to families to improve their access to a 
variety of housing options.  
On behalf of the people of Parañaque City’s Second District, and for the common good of the Filipino 
people, the approval of the said measure is earnestly sought. 
REP. GUS S. TAMBUNTING 
2nd District, Parañaque City 
September  14, 2022
8:18 am
4784


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. _______ 
Introduced by HON. GUS S. TAMBUNTING 
AN ACT  
PROVIDING FOR A NATIONAL HOUSING DEVELOPMENT, PRODUCTION, AND FINANCING 
PROGRAM, AND REGULARIZING ITS APPROPRIATION FOR ITS IMPLEMENTATION 
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 "National Housing Development Act."  
Section 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 facilitated under the democratic and decentralized system of
governance; and where urban and rural areas provide the opportunities for an improved quality of life and
eradication of poverty;
c) ensure that poor dwellers shall be provided with appropriate and innovative housing programs and
support mechanisms to discourage further growth of blighted communities;
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 the development of
sustainable urban renewal programs; and
e) 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.
Section 3. Statement of Objectives. – Towards this end, the State shall: 
(a) Increase housing production by forging partnerships among housing stakeholders to address the
housing needs of 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 programs to improve access of Filipino
families to a variety of housing options.
4784


(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 the government National 
Housing Development and Production Financing Program. 
Section 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 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 30% of the income population: 
(1) Resettlement – This program addresses the requirements of families affected by a) government 
infrastructure projects, b) those living in dangerous areas and c) those affected by Supreme Court 
Mandamus. It entails the provision of vertical (from 5 to 15-story residential buildings) and/or 
horizontal housing units, community facilities, and 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 dangerous 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 before 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. 
 
 
(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 to distribute the land to qualified socialized housing beneficiaries. 
 
It covers the 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) – 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 that 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). 
c) 
Post-Disaster Rehabilitation and Reconstruction CMP – a CMP modality that assists with 
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 on-site 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 the project area for friendly facilities for Persons with Disabilities 
(PWD) 
C. National Home Mortgage Finance Corporation (NHMFC) – A government corporation mandated to 
increase the availability of affordable housing loans to finance Filipino homebuyers on their acquisition of 
housing units through the development and operation of a secondary market for home mortgages. 
 
(1) Securitization – this refers to the development of the secondary market for home mortgages 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. Furthermore, this would also increase and 
sustain funds available for housing and home development. 


D. 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: 
(1) Public Housing – this is a housing program that is owned and/or managed by the government 
to provide security of tenure to 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 because 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. It is a grant extended to 
qualified low-income beneficiaries under the National Housing Development and Production 
Financing Program under any of the following alternative subsidy schemes: 
 
i. 
Extension of Interim Shelter Fund to each of the family-beneficiaries which they can 
use to find safe residency and livelihood to support their families, pending the 
completion of their housing units in the relocation sites. 
ii. 
Payment for the upfront cost equivalent to 5% of the project cost (e.g., mortgage 
insurance, titling, etc.); and 
iii. 
Monthly payment subsidy for the first five years of the loan period by Section 3 (a) of 
RA 6846 or the Social Housing Support Fund Act. The department shall be authorized 
to establish the qualification and income requirements of borrowers who will qualify 
for the amortization support subsidy. 
The DHS, in coordination with the LGUs and 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 financial assistance of up to a 
maximum of 50% of the total construction cost for the National Government Agencies (NGAs) 
and Local Government Units (LGUs) that shall construct and operate public rental 
accommodation to eligible low-income families and housing safety net for the vulnerable 
sectors (e.g., senior citizens, a person with disabilities, etc.). 
 
The DHSUD shall formulate the guidelines for 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 that 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 
Section 5. Appropriations by the National Government. – The amount of One Hundred Thirty Billion 
Pesos (P130,000,000.00) or such amount necessary to carry out the provision of this Act is hereby 
authorized to be appropriated annually through the General Appropriations Act over a period of twenty (20) 


consecutive years commencing from the year immediately succeeding the effectivity of this Act or until 
such time that the total fund requirements provided for in this Act shall have been fully released.  
A total amount of Two Trillion, Six Hundred Sixty-Seven Billion, Two Hundred Ninety-Three Million Pesos 
(P2,667,293,000,000.00) covering the continuing requirement of this Act shall be appropriated to the 
DHSUD and Key Shelter Agencies for the implementation of the following component programs of the 
NHDPF Program: 
(1) 
One trillion, seven hundred twenty-two billion, four hundred forty-six million pesos 
(P1,722,446,000,000.00) for the implementation of the following programs of NHA: 
 
a. 
Eight hundred billion and six hundred ninety million pesos (P800,699,000,000.00) to 
finance the Resettlement Program under Section 4(1) of this Act; 
b. 
Five hundred forty-three billion and four hundred nineteen million pesos 
(P543,419,000,000.00) as subsidy for Government Employees Housing under 4(2) of 
this Act; 
c. 
One hundred sixty-four billion and two hundred sixty-five million pesos 
(P164,265,000,000.00) for the Settlements Upgrading under Section 4(3) of this Act; 
d. 
One hundred one billion and seven million pesos (Pl0l,007,000,000.00) for the Housing 
Program for Calamity Victims Section 4(4) of this Act; and 
e. 
Sixty-three billion and fifty-six million pesos (P63,056,000,000.00) for Land Banking 
under Section 4(5) of this Act. 
 
(2) 
Four hundred fifty-three billion, two hundred million pesos (P453,200,000,000.00) for the 
implementation of the Community Mortgage Program under Section 4(6) of this Act.  
(3) 
Fifty billion (P50,000,000,000.00) for the Capitalization of NHMFC under Section 4(8) of this 
Act. 
(4) 
Four hundred seventy-six billion, six hundred forty-seven million pesos (P476,647,000,000.00) 
for the implementation of the following programs of the DHSUD 
 
a. Three 
hundred 
sixty-five 
billion, 
nine 
hundred 
seventy-nine 
million 
pesos 
(P365,979,000,000.00) to finance the Public Housing under Section 4 (8); 
 
b. Eighty-nine billion, one hundred thirty-one million pesos (P89,131,000,000.00) as subsidy 
under Section 9, broken down as follows: 
 
b.1 Eighteen billion, five hundred thirty-one million pesos (P18,531,000,000.00) as 
interim shelter finance assistance for the informal settler-families who will be 
relocated under Section 4 (9a) 
 
b.2  
Sixty-three 
billion, 
seven 
hundred 
ninety-six 
million 
pesos 
(P63,796,000,000.00) as upfront subsidy under Section 4(9b)  
 
b.3  
Six billion, eight hundred four million pesos (P6,804,000,000.00) as 
amortization support under Section 4 (9c) 
 
c. Twenty billion, four hundred fifty-six million pesos (P20,456,000,000.00) to finance public 
rental housing under Section 4(10); and 
 
d. One billion, eighty-one million (Pl,081,000,000.00) to finance a survey of proclaimed lands 
and conduct of inventory of government idle lands suitable for socialized housing under 
Section 4 (11). 


Section 6. LGU Sources of Funds. Section 43 of RA 7279 on Socialized Housing Tax is hereby amended, 
to read as follows:  
Consistent with the constitutional principle that the ownership and enjoyment of property bear a social 
function and to raise funds for the Program, 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 the 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.  
Section 7. Implementation of the Securitization, Capital, and Secondary Mortgage Operations 
Program. – The NHDP Securitization for the development of the secondary market for home mortgages 
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, 
instrumentalities, 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 an 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 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 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 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 under 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 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 under Executive Order No. 58 (S. 2018) shall 
guarantee 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. 


Section 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 the P25,000,000,000.00 of the capitalization shall 
be funded from the General Appropriations Act and the remaining P25,000,000,000.00 shall be funded 
from the declared dividends of the NHMFC in favor of the National Government. For this purpose, any 
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. 
Section 9. Tax Exemptions. – The NHMFC shall be exempt from all national, provincial, municipal, and 
city taxes on income derived from its governmental functions, specifical income from its activities or 
transactions in the exercise of its mandates.  
Section 10. Multi-Year Obligational Authority. – The Secretary of the DHSUD and Heads of its 
attached housing agencies, under 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. 
Section 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 Development 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 
Republic Act 11032 or an Act Promoting Ease of Doing Business and Efficient Delivery 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.  


Section 12. Collection Efficiency. – To improve collection efficiency, the NHA, SHFC, and NHMFC shall 
have the authority to foreclose mortgages, and/or evict beneficiaries by existing laws.  
Section 13. Implementing Rules and Regulations. – The DHSUD shall promulgate rules and 
regulations necessary for the implementation of this Act.  
Section 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.  
Section 15. 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.  
Section 16. 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,