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Republic of the Philippines iS RECEIVED

HOUSE OF REPRESENTATIVES |[= DATE _May 21, 2025
Quezon City

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So ives

NINETEENTH CONGRESS
Third Regular Session

HOUSE BILL No. _ 11503

Introduced by Representative Roman T, Romulo

EXPLANATORY NOTE

‘The COVID-19 pandemic was more than a public health crisis—it was a rupture in
the lives of millions of Filipino families, especially the most vulnerable. Low-income households,
daily wage earners, informal workers, and underprivileged communities bore the brunt of
lockdowns, job losses, and economic contraction. For many of them, even the most basic
necessity—keeping a roof over their heads—became an insurmountable burden.

Today, as these households attempt to recover amid persistent inflation and economic
uncertainty, the risk of losing their homes looms larger than ever. Without decisive intervention,
years of public investment in socialized housing may be undone—not by unwillingness to pay,
but by temporary hardship that deserves compassion and foresight.

This measure proposes the establishment of a Socialized and Low-Cost Housing Loan
Restructuring and Condonation Program, reviving and expanding the relief mechanisms
previously granted under Republic Act No. 9507, or the Socialized and Low-Cost Housing Loan
Restructuring Act of 2008. Unlike existing restructuring initiatives, this program offers a distinct,
time-bound window of relief responsive to the economic realities of the post-pandemic period.
It removes burdensome barriers to application and prioritizes continued occupancy for those
most in need.

This proposed bill responds not just to economic data but to human realities—
recognizing that loan delinquency, driven by an unprecedented health crisis that strained
households on every front, must not be met with foreclosure, but with fairness.

While housing may not be an individually enforceable right in the same way that civil
liberties are, the Constitution imposes on the State a clear obligation to ensure that
underprivileged and homeless citizens have access to decent and affordable housing. This
principle is likewise recognized in in international human rights instruments such as the
International Covenant on Economic, Social and Cultural Rights, to which the country is a party, and
the Universal Declaration of Human Rights, which forms part of customary international law and
has been consistently upheld in Philippine jurisprudence. This bill reaffirms those obligations
by offering a second chance to borrowers who, despite setbacks, have remained committed to
fulfilling their responsibilities. It is not a blanket forgiveness of debt, but a calibrated and time-

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bound intervention designed to preserve tenurial security and prevent the social dislocation
that results from mass default.

This program is also fiscally prudent. The long-term costs of eviction, homelessness,
and abandoned housing units far outweigh the benefits of rigid enforcement. By restructuring
delinquent loans—condoning interests and:penalties, lowering rates, and extending payment
terms—the State supports recovery, protects public investment, keeps families intact within the
homes built for them, and allows them to rebuild their lives with dignity.

In a society still healing from the wounds of the pandemic, the government must stand
not as a creditor, but as a steward of equity. To choose compassion over confiscation, and
recovery over ruin, is not charity—it is justice.
In view of the foregoing, the immediate passage of this bill is earnestly sought.
ROMAN T. ROMULO
Lone District, Pasig City



Republic of the Philippines

picasa City

NINETEENTH CONGRESS
Third Regular Session

HOUSE BILL NO. _ 11503

Introduced by Representative Roman T. Romulo

AN ACT
ESTABLISHING A SOCIALIZED AND LOW-COST HOUSING LOAN
RESTRUCTURING AND CONDONATION PROGRAM

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 “Socialized and Low-Cost Housing
Loan Restructuring and Condonation Act”.

SEC. 2. Declaration of Policy. ~ It is the policy of the State to undertake a continuing
program of urban land reform and housing that will make available at affordable cost decent
housing and basic services to underprivileged and homeless citizens. To this end, a rational
loan restructuring and condonation program shall be instituted that takes into consideration
the credit worthiness and credit discipline of the borrowers, and the financial viability of the
lending institutions.

SEC. 3. Coverage of the Restructuring Program for Delinquent Socialized and
Low-Cost Housing Loan Accounts. ~ There is hereby established a Socialized and Low-
Cost Housing Loan Restructuring and Condonation Program of the National Housing
Authority (NHA) and the Social Housing Finance Corporation (SHFC). Under this program:

(a) For a period of twenty-four (24) months after the issuance of the implementing rules
and regulations of this Act, all socialized and low-cost housing loans with the NHA and
SHFC that have at least three (3) months of unpaid monthly amortizations as of the
effectivity of this Act are hereby declared covered by the benefits of this loan
restructuring and condonation program notwithstanding that the same accounts have
availed of the benefits of a previous restructuring or condonation program: Provided,
That the original principal amount of the housing loans shall not exceed One million
eight hundred thousand pesos (P 1,800,000.01

(b) Borrowers whose contracts have already expired but who continue to occupy the
housing unit as the original registered beneficiary shall also be eligible for the loan
restructuring and condonation program under this Act;

(©) An application for restructuring shall not be charged a processing fee and no
downpayment shall be required for a borrower to apply for the benefits of this loan
restructuring and condonation program;


(@) All existing interests on principal, penalties, and surcharges shall be condoned upon
approval of the restructuring application under this Act: Provided, That an interest rate
of three percent (3%) or the interest rate of the original loan, whichever is lower, shall
be imposed upon the restructured loan;

(¢) The term of a housing loan account being applied for restructuring may be extended
for a period longer than its original term in order to lower the amount of the monthly
amortization: Provided, That in no instance shall the extension of the restructured loan
exceed the difference between the borrower's age at the time of application and the age
of seventy (70);

(0) In case of permanent physical incapacity of a borrower, the legal heirs and successors-
in-interest may assume payment of outstanding housing loan: Provided, ‘That such legal
heirs and successors-in-interest must pass the NHA and SHEC’s eligibility requirement
before they are allowed to assume payment of the borrower's loan obligation: Provided,
further, That in case of death of the borrower, the proceeds of the Mortgage
Redemption Insurance shall have been fully applied;

(g) Notwithstanding the availment of the loan restructuring program provided for in
Republic Act No. 9507, the loan restructuring under this Act may be availed of only
once except in case of force majeure affecting the ability to fulfill the financial obligation
of the borrower; and

(h) The loan restructuring and condonation program provided for in this Act shall be
construed as a separate and distinct program from the ones being implemented by the
NHA and SHEC, and the borrower has the option to choose which loan restructuring
and condonation program will be availed.

SEC. 4. Authority to Continue the Restructuring Program. ~ Notwithstanding the
lapse of the period provided in Section 3(a) of this Act, the governing boards of the NHA and
SHFC are hereby authorized to continue the loan restructuring and condonation program
under this Act.

SEC. 5. Exclusion from Coverage. ~ In no instance shall the following housing loan
accounts be covered by this Act:

(a) Any account without a single payment since takeout;

(b) An account which housing unit has been abandoned by the borrower-owner for
more than one () year from the date of delinquency;

(6) An account which housing unit is occupied by a third party other than the original
registered beneficiary or the legal heirs of the beneficiary; and

(@) An account that has been surrendered to the NHA or SHFC through dacion en
ago, the title of which has already been consolidated or transferred in the name of the
NHA or SHFC.

SEC. 6. Incentive for Prompt Payment of Monthly Amortization. ~ Upon the
effectivity of this Act, all accounts restructured under this Act, the monthly amortizations of


which are paid on time, shall be entitled to incentives, including a reasonable discount on loan
interest, the amount or percentage of which shall be determined by the respective boards.

SEC. 7. Implementing Rules and Regulations. ~ The Department of Human
Settlements and Urban Development, NHA, and SHFC shall, in consultation with the relevant
stakeholders, promulgate within ninety (90):days from the effectivity of this Act the rules and
regulations to implement the provisions of this Act.

SEC. 8. Separability Clause. ~ If any portion or provision of this Act is declared
unconstitutional, the remaining parts or provision not affected thereby shall remain in force
and effect.

SEC. 9. Repealing Clause. ~ All laws, decrees, orders, issuances, rules and regulations, or
any part thereof inconsistent with the provisions of this Act are hereby repealed, amended, or
modified accordingly.

SEC. 10. Effectivity. — This Act shall take effect fifteen (15) days after its publication in the
Official Gazette or in a newspaper of general circulation.

Approved,