SIXTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
SENATE 
Senate Bill No, 754 
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INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
EXPLANATORY NOTE 
The scarcity of affordable housing affects all sectors of society especially 
our public school teachers when an independent survey revealed that more than 
ninety thousand (90,000) public school teachers have no homes to call their own. 
Majority of these public school teachers cannot afford their own homes at 
market prices since they earn a gross monthly income of P10,000 or less. In 
addition to this, more than 20% of our public school teachers have unemployed 
spouses and thus, bears the burden of providing for their family. 
There had been efforts to solve this problem by providing for a special 
homing facility through the state pension fund. However, its implementation got 
caught up in the web of politics and never materialized. Thus, it is imperative 
that we provide for a stable housing program for our teachers through legislation. 
This bill seeks to institute a housing program for teachers by providing 
funds through loans at affordable interest and long-term repayment period, which 
our teachers can use to purchase a housing unit of their own choice. It also 
seeks to involve the private sector in providing housing units exclusively for 
teachers through the grant of fiscal incentives. 
In view of the foregoing, the passage of this bill is earnestly sought. 
Senator 


SIXTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
SENATE 
Senate Bill No. 7 5 4 
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'13,JUl 15 P 6 :/J 1 
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INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
AN ACT 
TO PROVIDE FOR A HOUSING PROGRAM FOR TEACHERS 
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 "Teacher's Housing 
Program". 
SEC. 2. Declaration of Policy. It is hereby declared the policy of the 
State to uplift the living conditions of teachers and promote a housing program to 
enable them to acquire their own housing units. To this end, the State affirms its 
commitment to strength, promote, and support the component activities of 
housing production and finance to order to enable teachers to acquire decent 
housing and basic services at the lowest affordable price. 
SEC. 3. 
Coverage. 
The Program shall cover the teachers of the 
Department of Education (DepEd) with a permanent status. 
SEC. 4. Role of Government Housing and Financing Agencies. To 
ensure the accomplishment of the objectives under this program, the hereunder 
mentioned housing agencies shall perform the following in addition to their 
respective existing powers and functions: 
(a) The National Housing Authority shall undertake special housing 
projects for teachers. In addition, it may also provide technical and 
other forms of assistance to private developers in the development of 
housing projects; 
(b) The National Home Mortgage Finance Corporation shall provide the 
mortgage market for teacher's housing through the purchase of 
teacher's housing mortgages and/or issuance of securities. It shall 
administer the funds provided for housing loans and developer 
assistance under this Act as well as long-term funds provided by the 
Government Service Insurance System and the Home Development 
Mutual Fund for teacher's housing. 


(c) 
The Home Guaranty Corporation shall design an appropriate 
guarantee scheme to encourage financial institutions and private 
developers to undertake mass housing production for teachers. It 
shall administer the Guarantee System Fund as provided for under 
this Act. 
(d) 
The Government Service Insurance System and the Development 
Mutual fund shall be the primary provider of funds for long-term 
housing mortgages. 
SEC. 5. 
Role of the DepEd. 
The Department of Education shall 
undertake the implementation of the program among its teachers and shall 
ensure collection of amortization payments through a salary deduction scheme. 
In line with this, the DepEd shall: 
(a) 
Create a Teacher's Housing Secretariat which shall issue and 
collect the necessary documentation, 
receive and 
process 
application, and transfer the same to the appropriate housing 
agencies; 
(b) 
Deduct amortization from their teachers on a monthly basis and 
remit the same to the appropriate agency. 
SEC. 6. 
Program Financing Scheme. In the implementation of the 
Teacher'S Housing Program, the following shall consist the financing scheme: 
(a) 
Housing Loans for Teachers which shall be used for any of the 
following purpose: 
1. Purchase of a lot and construction of a residential unit thereon; 
2. 
Purchase of any of the following: 
i. 
brand new or old existing units; 
ii 
housing properties mortgaged with any institution; 
iii 
housing assets being disposed off through public 
bidding or negotiated sale; 
3. 
Purchase of a fully developed lot within a residential area; 
4. 
Construction of completion of a residential unit on a lot 
owned by the beneficiary; 
5. 
Home' improvement or any alteration in an existing 
residential unit; 
6. 
Restructuring of an existing housing loan in any government 
housing of financial institution, provided that the account is 
updated. 
Loans provided under this program shall be computed based on a net take 
home pay which shall not be lower than Three Thousand Pesos (P3,OOO.OO). 
The interest rate on the loan shall not be more than twelve percent (12%) per 
annum and shall be fixed for the entire term of the loan. Provided, That if the 
borrower defaults on his amortization payment for reasons of his own doing, the 
financing agency may subject the borrower to a regular interest ratea for the 
periods that he is in default. 


To increase the benefits provided to teachers, loans under this scheme 
shall not be subject to such charges, fees or premiums except minimum 
processing fees to be charged by the appropriate agencies. 
Loans provided for teachers earning less than Twelve thousand pesos 
(P12,000.00) per month shall not be less than sixty percent (60%) of all available 
funds allotted for this purpose. At least forty five percent (45%) of the year 
appropriation for the Program shall be for Housing Loans. 
(b) 
Developer Assistance fund, Proponents or developers of housing 
projects exclusively for teachers and with a selling cost 
not 
exceeding One Hundred Twenty Thousand pesos (P120,000.00) 
per house and/or lot package which shall be available exclusively 
for teachers, may avail of a financing loan not exceeding eighty 
percent (80%) of the entire project cost. 
The National Home 
Mortgage and Finance Corporation, in coordination with the 
HUDCC, shall issue the appropriate guidelines for this purpose. 
At least fifteen percent (15%) of the early appropriation for the program 
shall be for developer financing: Provided, that the unused funds for developer 
financing shall be utilized for Housing Loans. 
(c) 
Guarantee System Fund. 
There is hereby created a guarantee 
system fund for Teacher's Housing Loans not exceeding One 
Hundred Fifty Thousand Pesos (P150,000.00) with an interest rate 
of not exceeding twelve percent (12 percent) per annum as originate 
by the funding agencies or their accredited finaneial institutions. 
Such loans shall be assigned to the Fund immediately after 
origination for which the Fund shall issue promissory notes. 
At least forty percent (40%) of the yearly appropriation for the Programs 
shall be for the loan guarantee. 
The Home Guarantee Corporation shall 
undertake the guarantee system under this act and shall act as the administrator 
and trustee of the fund. The HGC shall issue the appropriate guidelines within 
one (1) year from the approval of this Act. 
SEC. 7. 
Fiscal Incentives for Private Sector participation in 
Teacher's Housing. 
Private sector developers who participate in the 
development of teacher's housing shall be entitled to the following fiscal 
incentives: 
(a) Exemption from income taxes for housing projects exclusively 
dedicated for teachers; 
(b) Exemption from capital gains tax on housing projects exclusively 
dedicated for teachers; 
(c) Exemption from documentary stamp tax for all project related 
documentation; 
(d) Exemption from value-added tax for the project concerned; 
(e) Exemption from transfer taxes for both raw and completed projects; 
and, 


(f) Exemption from donor's tax for lands certified by the local government 
units to have been donated to teacher's housing purposes. 
Provided, That upon application for exemption, the housing development 
plan shall have already been approved by the appropriate government agencies 
concerned: Provided further, that all the savings acquired by virtue of this 
provision shall be used to minimize the cost of the housing units subject to the 
implementing guidelines to be issued by the Housing and Urban Development 
Coordinating Council. 
The Department of Finance, in consultation with the Housing and Urban 
Development Coordinating Council, shall prepare the necessary implementing 
guidelines for the proper implementation of the tax exemption mentioned in this 
section within one (1) after the approval of this Act. 
SEC. 8. Funding Source. The Government Service Insurance System 
and the Home Development Mutual Fund shall contribute a total of Two Billion 
Pesos (P2,000,000,000) for the initial implementation of the Program. 
Thereafter, each institution shall allocate at least ten percent (10%) of their 
annual investible funds for long-term teacher's housing mortgages and shall be 
made available to the National Home Mortgage and Finance Corporation under 
terms which ensure their repayment. The National Government shall contribute 
One Billion Pesos (P1,000,000,000) annually for the continuous implementation 
of the Program. 
SEC. 9. Appropriation. The amount necessary to carry out the purposes 
of this Act shall be included in the General Appropriations Act of the year 
following its enactment into law and every year thereafter. 
SEC. 10. Separability. 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. 11. Effectivity. This act shall take effect fifteen (15) days after its 
complete publication in at least two (2) national newspapers of general 
circulation. 
Approved,