Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS.
Second Regular Session

House Bill No,__ 8103

Introduced by REP. NAEALLA BAINTO AGUINALDO

EXPLANATORY NOTE

Pursuant to (1) the thrust of the administration to expand the access of the
people to affordable, adequate, safe, and secure shelter in well-planned
‘communities, and (2) the need to establish a national program with set guidelines
and standards for public rental housing, this Representation calls for the immediate
passage of the proposed Public Rental Housing Act.

For the years 2017 to 2022, the total housing need of the country remains
enormous at approximately 6.80 million units, which could even balloon to 22 million
units by 2040 should it not be effectively addressed today. There are several drivers
for the housing deficit, such as but not limited to: (1) red-tape, (2) poor urban
planning, (3) unclear rules among government agencies, (4) limited annual
appropriations for housing, and (5) land acquisition.

One possible solution to address the housing deficit is public rental housing.
in countries with vast populations but with very scarce land, public and private
institutions have successfully implemented public rental housing programs to
effectively address their respective housing needs. These programs commonly
comprise of the establishment of mid-rise or high-rise estates, a unit of which is
rented out to marginalized individuals or households at low-cost rates.

In the Philippines, there are actually certain local government units and
private institutions that already implement public rental housing programs. The
Disiplina Village of the City of Valenzuela, the first and largest public rental housing
project in the country, is the exemplar of its potential, effectiveness, and success. To
date, it accommodates, and provides better standard of living to, approximately
4,500 informal settler families, who used to live in places vulnerable to natural
calamities and in other danger zones. Furthermore, it is also a complete community
that offers and gives access to basic services, at a monthly rental fee of
approximately Php 300.00, the cheapest and lowest in the country.

However, unlike in Hong Kong and Singapore, the Philippines lacks a national
program with set guidelines and standards for public rental housing. Such absence is

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even recognized by the Philippine Development Plan 2017-2022 of the
administration, which urgently calls for its establishment.

Based on the foregoing, the fundamental legislative agenda of the proposed
Public Rental Housing Act is twofold: (1) to institutionalize public rental housing as a
national program and serve as a comprehensive guideline therefor, and (2) to
strengthen the much needed decentralization of housing and urban development
interventions.

With the enactment of the Public Rental. Housing Act, it would become a
national program that encourages more local government units and other
stakeholders to implement their own public rental housing programs. Accordingly, an
Increase in public rental housing programs would expand the access of the people,
especially the underprivileged and homeless citizens, to affordable, adequate, safe,
and secure housing.

Moreover, the enactment of the Public Rental Housing Act would also place
local government units at the forefront of housing and urban development of their
respective jurisdictions, as already mandated by the Local Government Code of
1991. Such would enable them to be more proactive and effective urban managers
with the support of the national goverment and other stakeholders.

As a representative of Bahay Para sa Pamilyang Pilipino (BAHAY Party-list),
which advocates for a better quality of life for Filipinos through social empowerment,
socialized housing, and well-ntegrated livelihood programs, this Representation
respectfully calls for fellow legislators and colleagues to support the immediate
passage of the proposed Public Rental Housing Act. With its passage, more families
would enjoy a more rooted, comfortable, and secured standard of living — securing
their basic human right of proper and safe housing.

apts ag
BAINTO AGUINALDO

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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
Second Regular Session

House Bill No. _ 103

Introduced by REP. NAEALLA BAINTO AGUINALDO

AN ACT ESTABLISHING PUBLIC RENTAL HOUSING
PROGRAMS FOR THE UNDERPRIVILEGED AND
HOMELESS CITIZENS, PROVIDING THE IMPLEMENTING
MECHANISMS, AND APPROPRIATING FUNDS THEREFOR

Be it enacted by the Senate and the House of Representatives of the
Philippines in the Congress assembled:

ARTICLE |
SHORT TITLE, POLICIES, AND DEFINITION OF TERMS

SECTION 1. Short Title. - This Act shall be known as the “Public Rental Housing
Act.”

SECTION 2. Declaration of Policies and Principles. — It is the policy of the State to:

a. _ Undertake, in cooperation with the public 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 resettlements areas;

b. Not only to transfer ownership in fee simple, but also to offer any other legal
methods of transferring the right to use residential property to the
underprivileged and homeless citizens, adopting schemes for public rental
housing;

c. Undertake a continuing program of encouraging the development of affordable
housing for the underprivileged and homeless citizens; and

d. Regulate the acquisition, ownership, use, and disposition of property and its
increments.

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SECTION 3. Definition of Terms. - The following terms as used in this Act shall be
understood as:

a. Public rental housing shall refer to a socialized housing program in which the
local government unit (LGU) enters into a contract of lease, lease to own, or
other similar contracts, with the beneficiaries of this Act, involving a public unit,
for low-cost rates;

b, Public project shall refer to an establishment, whether vertical or horizontal in
nature, that Is suitable for residential purposes. This shall not include
condominiums, apartments, townhouses, or other similar privately-owned
residential establishments. This shall also not include motels, hotels, retail
stores, or other similar commercial establishments;

¢. Public unit shall refer to a unit in a vertical or horizontal public project that
qualified beneficiaries of this Act may use or own as their residential home;

d. Application shall refer to the process that beneficiaries must accomplish in
‘order to qualify for a public rental housing program;

e. Public rental housing agreement (hereinafter, ‘Agreement’) shall refer to the
contract of lease, lease to own, or other similar contracts between the local
government unit and the beneficiaries of this Act;

f. _ Rent shall refer to the amount paid by the beneficiaries for the occupation and
use of a public unit, whether payment is made on a monthly or other basis;

9. Beneficiaries shall refer to qualified applicants as defined in this Act, whether
individuals or families, who are underprivileged and homeless citizens as
defined by existing laws, whose income or combined household income falls
within the poverty threshold as defined by the National Economic and
Development Authority, and who do not own housing facilities. This shall
include those who live in makeshift dwelling units without the consent of the
landowner. However, this shall not include professional squatters and squatting
syndicates as defined in Republic Act No. 7279, otherwise known as the

“Urban Development and Housing Act of 1992,” as amended; and

h. Danger areas shall refer to esteros, railroad tracks, garbage dumps, riverbanks,
‘shorelines, waterways, sidewalks, roads, parks, playgrounds, and other public
places as may be defined under existing laws.

ARTICLE tt
PUBLIC RENTAL HOUSING FRAMEWORK

SECTION 4. Framework for Public Rental Housing. — There shall be a Public Rental
Housing Framework to be formulated by the Department of Human Settlements and
Urban Development, in consultation with the Key Shelter Agencies attached thereto,
the Department of Social Welfare and Development, the Department of the Interior
and Local Government, the Presidential Commission for the Urban Poor, and other
concemed stakeholders from public and private sectors, within one (1) year from the
effectivity of this Act. The Framework shall provide the comprehensive plan of the

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National Govemment on public rental housing nationwide, and shall guide the local
government units in the formulation, implementation, and management of their
respective public rental housing programs.

ARTICLE Ill
THE ROLE OF THE LGU

SECTION 5. Integration of Public Rental Housing in the Local Housing Program and
the Comprehensive Land Use Plan. — .GUs shall make public rental housing a part
of their socialized housing program, and shall also be considered in their respective
comprehensive land use plans.

SECTION 6. LGU as Lessor. - LGUs shall be the primary party that shall enter into a
contract of lease, lease to own, or other similar contracts, with the beneficiaries of
this Act, involving a public unit, at low-cost rates.

SECTION 7. Local Housing Boards (LHB), Role. — Duly-established LHBs shall
adopt the responsibility of implementing the policies and procedures under this Act,
within their respective jurisdictions.

LGUs which have not yet established their respective LHBs shall hereafter establish
such within one hundred twenty (120) days from the effectivity hereof. The newly-
established LHBs shall discharge its functions under existing laws and shall be
further tasked to implement the policies and procedures under this Act within their
respective jurisdictions, subject to the control and supervision of the local chief
executive.

For purposes of this Section, the local government unit may establish positions and
enlist additional personnel, subject to existing laws, rules, and regulations on the
creation and filling of positions.

SECTION 8. Annual Report. - LHBs shall submit detailed annual reports, with
respect to the implementation of this Act, to the Department of Human Settlements
and Urban Development, copy fumished the Office of the President and the
Congress of the Republic of the Philippines.

ARTICLE IV
IDENTIFICATION, ACQUISITION
AND DISPOSITION

SECTION 9. identification of lands suitable for Public Rental Housing. - The LHBs,
in coordination with the Department of Human Settlements and Urban Development,
the appropriate Key Shelter Agency/ies, the Department of Social Welfare and
Development, the National Mapping and Resource Information Authority, and the
Land Management Bureau, shall Identify lands, within their respective jurisdictions,
that are suitable for the establishment of public projects under this Act. The criteria
set by applicable laws, rules, and regulations for the identification of lands for
socialized housing projects shall also be applied in Identifying lands for public rental

housing.

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SECTION 10. Acquisition of Lands for the Establishment of Public Projects. - The
LGU shall acquire lands for the establishment of public projects through donation,
Negotiated sale, expropriation, or any mode of acquisition as provided by law;
Provided, however, that expropriation shall be resorted to only when other modes of
acquisition have been exhausted; Provided, further, that should expropriation be
Proper, the rules laid down in the Rules of Court or other existing laws thereon shall
govern; Provided, finally, that for the purposes of this Act, actual occupants, who are
qualified as beneficiaries, of the expropriated property shall be prioritized in the
Public rental housing program to be implemented on such property.

SECTION 11. Order of Preference in Acquiring Lands for Public Projects. — For the
Purposes of this Act, lands shall be acquired in the following order:

8. Those within areas identified, set aside, and categorized for socialized housing
Programs;

b. Those owned by the national government or any of its subdivision,
instrumentalities, or agencies, including government-owned or controlled
corporations and their subsidiaries, or by local government units;

¢. — Alienable lands of the public domain;
d. — Unregistered or abandoned or idle lands; and
©. Privately-owned lands.

SECTION 12. Exemptions. - The following properties shall be exempt from the
coverage of this Act:

a. Those included in the coverage of Republic Act No. 6857, otherwise known as
the Comprehensive Agrarian Reform Law;

b. Those included in the coverage of Republic Act No. 8371, otherwise known as
the Indigenous Peoples’ Rights Act of 1997;

c. Those actually used for national defense and security of the State;

d. Those used, reserved, or otherwise set aside for government offices, facilities,
and other installations, whether owned by the national government, its
agencies and instrumentalities, including govermment-owned or controlled
corporations, or by local goverment units; Provided, however, that the
properties herein mentioned, or portions thereof, which have not been used for
the purpose for which they have been reserved or set aside for the past ten (10)
years from the effectivity of this Act, shall be covered by this Act;

. Those used or set aside for parks, reserves for flora and fauna, forests,
watersheds, and other areas necessary to maintain ecological balance or
environmental protection, as determined and certified to by law or by
competent authority; and

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f. Those actually and primarily used for religious, charitable, or educational
purposes, cultural or historical sites, hospitals or health centers, or cemeteries
‘or memorial parks.

Provided, however, that the exemptions herein provided shall not apply when the
use or purpose of the abovementioned properties has ceased to exist.

SECTION 13. Exemption from Execution. — All properties that are actually and
directly uliized for the programs of this Act shall be exempt from execution.

ARTICLE V
PUBLIC RENTAL HOUSING TERMS AND REQUIREMENTS

SECTION 14. Mandatory Basic Services In Public Units. - The following basic
‘services shall be mandatory in any public rental housing programs:

a. Habitable and humane conditions with a private bathroom and an adequate
kitchen space;

b. Adequate supply of tap water through an adequate water distribution system;

¢. Adequate supply of power and electricity through an adequate power
distribution system;

d. Sewerage facilities and a disposal system; and
@. Access to primary roads and transportation facilities.

The LGUs, in coordination with the concemed national agencies, shall ensure that
these basic services are provided at the most cost-efficient rates.

SECTION 15. Application and Registration. — Consistent with the Framework to be
formulated under Section 4 of this Act and the corresponding implementing rules and
regulations to be issued pursuant to this Act, the LHB shall implement a streamlined
application process for public rental housing units within their locality.

Parties interested in availing public rental housing units shall register with their LHBs,
which shall then establish and maintain a database of qualified beneficiaries of
public rental housing units in their respective jurisdictions, a copy of which shall be
furnished to the Department of Human Setllements and Urban Development
annually.

SECTION 16. Terms of the Public Rental Housing Agreement. - The Department of
Human Settlements and Urban Development, in coordination with appropriate
agencies, shall formulate a public rental housing agreement template. LHBs may
add terms and conditions as they deem appropriate, provided that they are not
contrary to the provisions of this Act and its implementing rules and regulations, and
such other related laws on the lease or ownership of residential property.

The basic terms to be included in public rental housing agreements are the following:

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(1) Details of the beneficiaries, including the qualifications set in Section 17;

(2) Specifications of the public unit to be leased;

(3) The nature of the agreement, whether rental, lease/rent to own, or other similar
contracts;

(4) The date of the commencement and period of the agreement;

(5) The amount of rent to be paid by the beneficiaries and its due date;

(6) The grounds for the termination of the agreement, including the Prohibitions set
in Section 20;

(7) Notice period required for termination of the lease, which shall not be less than
thirty (30) days; and

(8) Who shall bear the repair and maintenance expenses, whether minor or major.

During the formutation and negotiation of the public rental housing agreement, the
beneficiaries shall personally appear and shall be accompanied by a representative
from any appropriate and reputable civil society organization.

The public rental housing agreement shall be notarized before a notary public or any
other person authorized by law to administer oaths.

SECTION 17. Qualifications of Beneficiaries. - To qualify as a beneficiary of public
rental housing, from the date of application and throughout the term of the
agreement, the applicant:

(1) Must be a Filipina citizen;

(2) Must be at least 18 years old;

(3) Must be an underprivileged and homeless citizen, as defined in Section 3 of
this Act;

(4) Must be gainfully employed or have at least one source of income;

(5) Must be legally capacitated to own or lease property based on existing laws;

(6) Must not own any real property, whether in urban or rural areas;

(7) Must not be a professional squatter or a member of squatting syndicates;

(8) Must not be a recidivist or habitual delinquent;

(9) Must not be a beneficiary of any other socialized housing program; and

(10) Must be duly registered as a beneficiary as per Section 15 of this Act.

In case of households with two (2) or more members, at least one (1) member must
have all of the qualifications abovementioned, while the other members must only
comply with requirements (6) to (10) above.

SECTION 18. Priority, special consideration. ~ In the allocation of public units,
priority shall be given to evacuees of areas on which government infrastructure
projects, whether national or local, are established; evacuees of danger areas as
defined in Section 3 of this Act; evacuees of areas enjoined by a court order for
eviction and demolition; persons with disabilities; senior citizens, single parents, and
‘such other similar considerations under existing laws; provided that, they meet the
qualifications under Section 17 of this Act.

SECTION 19. Valuation of Public Rent. - The Department of Human Settlements
and and Urban Development, in coordination with the National Economic and

it Authority and the Department of Social Welfare and Development,
shall also come up with public rental housing valuation guidelines, taking into
consideration the market value of the property as reflected in the zonal valuation or

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on the latest real property tax declaration, whichever is lesser, and on the average
income of the beneficiaries of this Act.

In line with the objective of this Act to provide heavily-subsidized tenancy or home
ownership, as the case may be, the public rental housing valuation guideline shall
Provide low-cost rates as far as practicable.

ARTICLE Vi
PROHIBITIONS, CANCELLATION AND EJECTMENT

‘SECTION 20. Prohibitions. - Whether or not for profit, no public unit or a part thereof
shall be sold, alienated, conveyed, encumbered, assigned, or subieased by the
beneficiaries thereof. Otherwise, the transaction shall be null and void, the public
rental housing agreement shall be revoked, the amortizations, in case of rent-to-own
arrangements, paid thereon shall be forfeited, and the beneficiary shall be barred
from the programs under this Act for a period of three (3) years from the date of
violation.

No public unit or a part thereof shall be utilized for gambling activities, for the
possession or use of illegal substances, as drug dens, as sex dens and such other
illegal activities. Otherwise, the public rental housing agreement shall be revoked,
the amortizations paid thereon shall be forfeited, the perpetrators shall be charged
‘and prosecuted under applicable laws, and the beneficiaries shall be perpetually
barred from the programs under this Act.

No public unit or a part thereof shall be utilized for commercial purposes. Otherwise,
the public rental housing agreement shall be revoked, the amortizations paid thereon
shall be forfeited, the materials and equipment utilized for commercial purposes shall
be forfeited in favor of the local government unit concemed, and the beneficiaries
shall be barred from the programs under this Act for a period of two (2) years fram
the date of violation.

No public unit under an existing public rental housing agreement shall be vacant for
more than three (3) months. Otherwise, the public rental housing agreement shall be
revoked, the amortizations paid thereon shall be forfeited, and the beneficiaries shall
be barred from the programs under this Act for a period of two (2) years from the day
of revocation of their agreement.

SECTION 21. Regular Examination of Beneficiaries Under A Public Rental Housing
Agreement. - The LHB_ shall conduct a monthly or more frequent review,
assessment, and examination of beneficiaries under existing public rental housing
agreements within their jurisdiction to ensure their continued compliance with the
qualifications, requirements, and limitations laid down by this Act.

SECTION 22. Voluntary Cancellation. — At anytime during the effectivity of the public
rental housing agreement, the beneficiaries may decide to cancel the same by
notifying the LHB thirty (30) days before the planned date to vacate. The LMB shall
raview the notice of cancellation within fifteen (15) days from receipt thereof, to
‘ensure that the decision is voluntary and to review the accounts of the beneficiaries.
If upon review, the LHB is able to determine that the decision is voluntary, that there

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are no outstanding balances left to be settled, and that there are no other
irregularities, it shall issue a certificate of cancellation of the public rental agreement.

SECTION 23. Judicial Ejectment. — If upon review, assessment, and examination,
the LHB discovers that there are (1) imegularities in the qualifications or
requirements of the beneficiaries and/or (2) that beneficiaries violated Section 20 of
this Act, except Paragraph 2 thereof, the LHB shall issue a Notice of Irregularity or
Violation, as the case may be, addressed to the beneficiary, clearly identifying the
Imregularity and/or the violation committed, and further containing its decision thereon.

With the assistance of a representative of any appropriate and reputable civil society
‘organization, the beneficiary may file an Appeal with the LHB within fifteen (15) days
from receipt of the Notice.

If upon review of the appeal filed, and the LHB fails to reconsider its initial findings,
the latter shall file a case for ejectment with the court having jurisdiction over the
case against the beneficiary concerned.

An order of ejectment by the court having jurisdiction over the case shall be required
before ejection.

SECTION 24, ExtraJudicial Ejectment. - Should the LHB, after due review,
assessment, and examination, discover that the beneficiaries, and/or any member of
their household, violated Paragraph 2, Section 20 of this Act, the latter shall be extra-
judicially ejected, without prejudice to the filing of appropriate criminal actions against
the erring beneficiaries.

An extra-judicial order of ejectment issued by the LHB having jurisdiction over the
Public project shall be required before ejection.

SECTION 25. Public Unit Reinstitution. — In case of voluntary cancellation, judicial
ejectment, or extra-judicial ejectment, the beneficiaries have seven (7) days from the
receipt of the certificate of cancellation, the order of ejectment, or the extra-judicial
order of ejectment to vacate and turnover the public unit.

ARTICLE Vil
FUNDING

SECTION 26. Partnership With Key Shelter Agencies. — The local government units,
through the LHBs, may enter into a partnership with key shelter agencies and the
private sector to finance the establishment of public projects and the implementation
of other programs under this Act, subject to existing laws, rules, and regulations.

SECTION 27. Incentives for Private Sector Participation in Public Rental Housing. —
To encourage greater private sector participation in public rental housing and other
socialized housing programs, the incentives granted under Section 20 of Republic
Act No. 7279, otherwise known as the “Urban Development and Housing Act of
1992," as amended by Republic Act No. 10884, otherwise known as “the Balanced
Housing Development Program Amendments,” shall also apply to private entities
that participate in the programs of this Act.

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The establishment of public projects by developers of subdivisions or condominiums
shall qualify as compliance to the balanced housing development requirement under
Section 18 of Republic Act No. 7279, as amended by Republic Act No. 10884.

SECTION 28. Socialized Housing Tax. — The proceeds from the imposition of the
socialized housing tax as mandated by Section 43 of Republic Act No. 7279,
otherwise known as the Urban Development and Housing Act of 1992, as amended,
shall accrue to the special funds of local government units, a portion of which shall
be utilized for the implementation of public rental housing programs.

CHAPTER Vill
PENALTIES

SECTION 29. Penalties. — In relation to the execution of any public rental housing
programs, any practices that are contrary to the mandates and principles set out in
this Act, or any form of abuse of authority or corrupt practices as defined by existing
laws shall subject the public officials and emplayees responsible to:

1. Disciplinary action based on oxisting laws; and
2. Prosecution under Section 20 of Republic Act No. 11201, otherwise known as
the “Department of Human Settlements and Urban Development Act.”

CHAPTER IX
COMMON PROVISIONS

SECTION 30. Implementing Rules and Regulations. - The Department of Human
Settlements and Urban Development, together with the KSAs, in consultation and
coordination with the Department of Social Welfare and Development, the
Presidential Commission on Urban Poor, other appropriate government agencies,
civil society organizations, and representatives from the private sector and from the

underprivileged and homeless citizens, shall, within one hundred eighty (180) days
from the effectivity of this Act, formulate and promulgate the corresponding
implementing rules and regulations, which shall be consistent with the provisions of
this Act, and which shall include, but not limited to, the following:

(1) and Application process; and
(2) Public rental housing agreement template.

The implementing rules and regulations shall take effect thirty (30) days after its
publication in two (2) national newspapers of general circulation.

SECTION 31. Appropriations. - The amount necessary for the initial implementation
of the provisions of this Act shall be charged against the the current year's
appropriations of the agencies concemed. Thereafter, such sums as may be
necessary for the continued implementation of this Act shall be included in the
annual General Appropriations Act. The agencies concemed shall include in their
proposed budget the necessary amounts to enable them to achieve their mandates
under this Act.

ob SESE YS

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SECTION 32. Repealing Clause. — All laws, decrees, executive orders,
proclamations, rules and regulations, and other issuances, or parts thereof which are
inconsistent with the provisions of this Act are hereby repealed, amended, or
modified accordingly.

SECTION 33. Separability Clause. — {f, any part, section, or provision of this Act is
held invalid or unconstitutional, the remaining provisions not affected thereby shall
continue to be in full force and effect.

SECTION 34. Effectivity. - This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in a newspaper of general Circulation.

Approved,

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