REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
QUEZON CITY

FIFTEENTH CONGRESS
FIRST REGULAR SESSION

HE No._ 4628

Inwoduced by HON. AL FRANCIS C, BICHARA

EXPLANATORY NOTE

It has been the declared policy of the State to undervake and provide a continuing housing
Program which will make available at affordable costs decent housing to the underprivileged and
homeless citizens’. To carry out this policy, Congress enacted, among other laws, Republic Act
No, 9679 otherwise known as the “Home Development Mutual Fund Law of 2009". The said law
was aimed at further strengthening the Fund by making it compulsory for all employees carning
at least One Thousand (P1,000.00) a month, including house helpers and self-employed
individuals, to be covered by the program, The employers of these said employees are likewise
required to provide counterpart contributions.

Apparently, this would indeed increase the savings if the Fund, thereby allowing it to more
effectively perform its housing and provident finance mandates, Nevertheless, a thorough
consideration of the circumstances would reveal that still, the advantages would only redound {0
those members of the society who are gainfully employed—and this is clearly not in keeping
with the aforesaid policy of the State considering that most of the underprivileged and homeless
citizens are those underemployed or unemployed.

For this reason, the undersigned proposes further amendment to Republic Act No. 9679. This
amendment would expand the coverage of the Fund’s Housing Loan Program so as to include
members’ extended families who are non-members or with no sufficient income. Additional
measures to ensure full and regular payment of these loans are hereby included j posal

AL FRANCIS C. BICHARA
2" District, Albay

* Sec. 9, Article XIE of the 1987 Philippine Constitution


FIFTEENTH CONGRESS OF THE )
REPUBLIC OF THE PHILIPPINES )
FIRST REGULAR SESSION )

HB. No 4628

Introduced by HON. AL FRANCIS C, BICHARA

AN ACT AMENDING SECTION 11 OF REPUBLIC ACT NO. 9679, OTHERWISE
KNOWN AS “HOME DEVELOPMENT MUTUAL FUND LAW OF 2009" BY
EXPANDING THE COVERAGE OF THE PAG-IBIG HOUSING LOAN SO AS
INCLUDE THE NON-EARNING IMMEDIATE FAMLLY MEMBERS OF PAG-IBIG
MEMBERS, AND FOR OTHER PURPOSES,

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

SECTION J. Section 1] of Republic Act 9679 which reads thus:

“Section 11, A member of good standing shall be eligible to apply for housing loans,
under such terms and conditions as may be authorized by the Board of Trustees taking into
account abitity to pay. The Board of Trustees shall institute policies to ensure that lower income
‘members obtain housing loans.”

is hereby amended by adding a new section which shail be read as follows:

“SECTION 11-A. TACKING OF LOAN. - MEMBERS iN GOOD
STANDING MAY APPLY FOR HOUSING LOANS WHICH MAY TACK IN OR
INCLUDE THAT OF HIS/HER FAMILIES NOT TO EXCEED THREE IN
NUMBERS. FAMILY MUST BE WITHIN THE SECOND DEGREE OF
CONSANGUINITY OR AFFINITY, IRRESPECTIVE OF WHETHER THEY ARE
THEMSELVES MEMBERS OF PAG-IBIG OR NOT, PROVIDED THAT THE
FOLI.OWING REQUIREMENTS CONCUR:

A. THE PAG-IBIG MEMBER CONCERNED HAS PAID CONTRIBUTIONS.
EQUIVALENT TO AT LEAST 24 MONTHS PRIOR TO THE FILING OF
THE APPLICATION FOR HOUSING LOAN;

B. IS NOT MORE THAN 50 YEARS OLD AT THE TIME OF THE
MATURITY OF ‘THE LOAN, AND IS INSURED, WITH THE FAMILY
MEMBERS TACKED IN HIS LOAN AS BENEFICIARIES;

C. HAS NO EXISTING OUTSTANDING LOAN;
D. HAS NO PAG-IBIG HOUSING LOAN THAT WAS FORECLOSED,

CANCELLED, BOUGHT BACK OR SUBJECTED TO DACION EN
PAGO;

E. HAS NO OUTSTANDING PAG-IBIG MULTI-PURPOSE LOAN IN
ARREARS AT THE TIME OF LOAN APPLICATION;

F. HAS PASSED SATISFACTORY BACKGROUND/CREDIF AND
EMPLOYMENT/BUSINESS CHECKS,

G. NOTWITHSTANDING THE TACKING, THE TOTAL AMOUNT OF
LOAN MUST NOT EXCEED TWO MILLION PESOS (P2,000,000.00) OR
SUCH OTHER AMOUNT THAT THE BOARD MAY DETERMINE IN
THE FUTURE AS THE REVISED MAXIMUM AMOUNT OF LOAN
AVAILABLE TO THE MEMBERS.


1, SUCH OTHER REQUIREMENTS AS THE BOARD OF TRUSTEES MAY
PRESCRIBE.”

SECTION 2. The same law is hereby further amended by adding a new section which shall read.
as follows:

“SECTION 11-B. TACKED LOANS, PURPOSES. THE FAMILY
MEMBERS SO TACKED IN THE LOANS OF A PAG-IBIG MEMBER MAY USE
THE PROCEEDS THEREOF FOR THE SAME PURPOSE AS THAT OF THE
ORGINAL LOAN, OR FOR A DIFFERENT PURPOSE PROVIDED THAT THE
SAME IS AMONG THOSE AUTHORIZED BY TILE BOARD OF TRUSTEES SUCH
AS. BUT NOT LIMITED TO THE FOLLOWING: PURCHASE OF A FULLY
DEVELOPED LOT, PURCHASE OF A RESIDENTLAL HOUSE AND LOT,
TOWNHOUSE OR CONDOMINIUM UNIT, CONSTRUCTION OR COMPLETION
OF A RESIDENTIAL UNIT ON A LOT OWNED BY A PAG-IBIG MEMBER, AND.
HOME IMPROVEMENT.”

Provided That with the introduction of the owo (2) new sections, Republic Act
No. 8679, otherwise known as the Home Development Mutual Fund Law of 2009, is
hereby renumbered accordingly.

SECTION 3. Repealing Clause. All Acts or part of Acts, Executive Orders and their
implementing rules inconsistent with the provision of this Act are hereby repealed, amended or
modified accordingly.

SECTION 4. Separability Clause. If any provision of this Act is declared invalid, the
remnainder of this Act or any provision not affected thereby shall remain in force and in effect.

SECTION 5. Effectivity Clause, This Act takes effect fiftecn (15) days after its complete
publication in the Official Gazette or in two (2) newspapers of general circulation, whichever
comes earlier.

Approved.