Kee PRESS

Republic of the Philippines fy * E- Filed.
HOUSE OF REPRESENTATIVES iS RECEIVED’
Quezon City E DATENovember 18, 2024
TIME 4:13 pm
NINETEENTH CONGRESS BY_Tweety
Third Regular Session Xo

Wo inex:

HOUSE BILL No. 11092

Introduced by Representative CAMILLE A. VILLAR

EXPLANATORY NOTE

Housing is a right, not a commodity. Increasingly viewed as a commodity,
housing is most importantly a human right. Under international law, to
be adequately housed means having secure tenure—not having to worry about
being evicted or having your home or lands taken away. It means living somewhere
that is in keeping with your culture, and having access to appropriate services,
schools, and employment.!

Housing is the basis of stability and security for an individual or family. The
centre of our social, emotional and sometimes economic lives, a home should be a
sanctuary —a place to live in peace, security and dignity.?

Under the 1987 Philippine Constitution, the State shall, by law, and for the
common good, 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. It shall also promote adequate employment
opportunities to such citizens. In the implementation of such program the State shall
respect the rights of small property owners.

This bill has the purpose of eliminating the blockage in the economic, low cost
and socialized housing that frustrate individual dreams and government's efforts
towards a continuing shelter program. It will serve as emergency mechanism to
prevent mass foreclosure and evictions and distress selling of homes, resulting from
unemployment, reduced income, insufficient income, death or physical incapacity,
retirement and other uncontrollable causes.

| hitps:// www ohchr org/en/specal-procedures/sr-housing/umar-rightadequate-housing

3 Section 9, Article XII, 1987 Constitution

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It is the hope of this Representation that with the new repayment terms
mandated in this measure, like longer payment terms, lower interest rates and
condonation of accrued interest, penalties and surcharges, the condition of
homeowners who are suffering from economic hardships will be alleviated, and they
are allowed to keep their homes. Should this bill be enacted into law, it will also
complement the government's efforts in managing the housing backlog, which if not
arrested could reach 22 million units by 2040.4

Hence, I join my colleagues in Congress in requesting for the immediate
passage of this bill.

ape
CAMILLE A. VILLAR

‘ https:/ /unhabitat org/sites/ default/files/2023/06/5_un-
habitat_philippines_country_report 2023. final_compressed.pdf


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

NINETEENTH CONGRESS
Third Regular Session

HOUSE BILL No.11092

Introduced by Representative CAMILLE A. VILLAR

AN ACT
TO ESTABLISH HOUSING LOAN REPAYMENT PROGRAM, PROVIDING
THE MECHANISMS THEREFOR, AND FOR OTHER PURPOSES

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

Section 1. Title - This Act shall be known as the “Housing Loan Repayment Act”.

Section 2. Declaration of Policy. - It is the policy of the State to provide access to
opportunities that shall uplift standard of living, promote development of human
dignity vital to progress, promote a healthy and productive housing environment
and establish a continuing affordable and adequate shelter program that shall
ensure fairness, social justice and equality, to lessen homelessness, utilize resources
equitably to make available decent shelter to underprivileged citizens, and protect
the right to security in the event of unemployment, sickness, disability, old age,
widowhood or lack of livelihood.

Section 3. Purposes: The purposes of this Act are:

a. To eliminate the blockage in the economic, low cost and socialized housing
that frustrate individual dreams and government's efforts towards a continuing
shelter program;

b. To serve as emergency mechanism to prevent mass foreclosure and
evictions and distress selling of homes, resulting from unemployment, reduced
income, insufficient income, death or physical incapacity, retirement and other
causes, attributable to an economic crisis;

c. To create an environment conducive to peace, development and progress
by giving the borrowers the chance to pay under new terms that will allow them to
adjust fairly to demands of the present standard of living; and

d. To pave the way for an in-depth review of the over-all government housing
policies.


Section 4. Objectives: The objectives of this Act are:

a. To provide the means to secure homes for the beneficiaries so as to promote
stable neighborhoods and stable nation;

b. To be able to liquefy investments that can be used for continuous shelter
production; and

c. To restructure the loans to improve the status of the assets, raising its net
worth as an investment for capital generation.

Section 5. Coverage: All economic low-cost and socialized housing loans that have
at least six (6) months of unpaid monthly amortization as of the affectivity of this
Act, 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 loan shall not exceed Two Million Five Hundred Thousand
Pesos (PhP2,500,000.00).

a) Agencies covered ~ Government financing institutions and agencies -
Government Service Insurance System (GSIS), Social Security System (SSS), Home
Development Mutual Fund (HIME), National Home Mortgage Finance Corporation
(NHMFC), and the Home Guaranty Corporation (HGC).

b) Accounts covered ~ In addition to the above provision on coverage, the Act
shall also cover mortgages that have been foreclosed but has not been sold to an
individual third party, and loans secured by Contract-To-Sell (CTS) including
accounts that have been cancelled due to delinquency.

Section 6. Considered as Restructured loan. The loan to be repaid shall be the
outstanding principal amount.

Section 7. Terms:

a) The loan shall be repaid at a maximum term of thirty years (30) and shall be
assumed by legal heirs and successors-in-interest once the borrower reached
retirement age. The borrower can however opt to shorten the term.

b) Alll accrued arrearages in interest, penalties and surcharges shall be condoned
and shall appear on the statement of account of the borrower upon receipt and
approval of the application of the borrower.

©) No down payment shall be required to apply for this repayment program
and, if any, a processing fee lower than the previous restructuring or condonation
program shall be charged.

Section 8. Interest rate:
The loan shall bear interest at the following rates per annum, subject to
review and adjustment by the President every three years:

Loan Amount Maximum Interest Rate
PhP500,000 and below 6%
Over PhP500,000 to PhP1,000,000 7%

Over PhP1,000,000 to PhP2,500,000 10%


Delayed payments shall be charged a minimum penalty.

Section 9. Special Provisions. In line with the government's policy of ensuring that
a fair share of the resources utilized for low cost and socialized housing be made
available to the most indigent and vulnerable sectors of our society, this Act
provides that:

a) Community Mortgage Program (CMP) loans shall bear interest rate at 3%
per annum upon effectivity of this Act, and all accrued interests, penalties and
surcharges emanating from this loan shall be condoned. CMP projects shall be
entitled to support equivalent to infrastructure development either from their
respective local government revenues or Congressional district funds or from Senate
funds, to alleviate the burden of cost of community improvement by the dwellers,
for them to set goals for self-improvement; and

b) Relocation Program loans shall bear no interest, provided the original
relocates occupied their homes through the entire length of the loan, to mitigate
their disadvantage in the new environment that left them unemployed or added cost
of transportation to their place of work.

Section 10. The Repayment Program provided in this Act shall be distinct and
separate from the restructuring schemes implemented by the GFI’s and the
borrowers are given the option to choose schemes appropriate to their needs. The
Repayment Program may be availed of only once.

Section 11. Implementing Rules and Regulations. There is hereby created an Inter-
Agency Committee headed by the Department of Human Settlements and Urban
Development (DHSUD) and composed of all the government institutions and
agencies and non-government organizations, homeowners’ association or people's
organizations tasked to promulgate the implementing rules and regulations within
sixty (60) days from the effectivity of this Act.

Section 12. Separability Clause. - Should any provision of this Act or any part
thereof be declared invalid, the other provisions, so far as they are separable from
the invalid ones, shall remain in full force and effect.

Section 13. Repealing Clause. - All laws, executive orders, rules or regulations, or
any part thereof, inconsistent with any provisions of this Act are hereby repealed
and modified accordingly.

Section 14. Effectivity Clause. - This Act shall take effect fifteen (15) days after its
complete publication in the Official Gazette or in at least two (2) national
newspapers of general circulation.

Approved,