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NINETEENTH CONGRESS ‘<)
Second Regular Session

Wo Inver
HOUSE BILLNO.__ 9042

Introduced by
REPRESENTATIVE JOSE MARIA R. ZUBIRI, JR.

EXPLANATORY NOTE

Section 9, Article II of the Constitution provides that “the State shall promote a
just and dynamic social order that will ensure the prosperity and independence of
the nation and free the people from poverty through policies that provide adequate
social services, promote full employment, a rising standard of living, and an
improved quality of life for all.”

Furthermore, Section 9, Article XII provides that “the State shall, by law, and for
the common good, undertake, in accordance 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 resettlement areas.”

‘According to the Philippine Statistics Authority, there are around 4.5 million
homeless people in the Philippines with 3 million in Metro Manila. This limits the
growth of our constituents and is a great detriment to their welfare. Such a basic
need should always be endeavored to be provided by the government especially
those who have less in life.

Usufruct as a program to provide housing to citizens in need has been a success
in many of our ASEAN neighbors namely Singapore and Malaysia, and some of our
local government units has made strides of success implementing the same for
their constituents. It is high time that the state considers the same as a national
policy.

In view of the foregoing, the passage of this bill is earnestly sought.



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

NINETEENTH CONGRESS
Second Regular Session

HOUSE BILLNO,___ 9042

Introduced by
REPRESENTATIVE JOSE MARIA R. ZUBIRI, JR.

AN ACT
ESTABLISHING A NATIONAL POLICY OF FREE HOUSING THROUGH
ALTERNATIVE MEANS, PROVIDING FUNDS THEREFOR, AND FOR
OTHER PURPOSES

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

Section 1. Short Title. — This Act shall be known as the “Altemative Free Housing
Act of 2023.”

Section 2. Statement of Policy. - Provision for free housing for the less fortunate
is hereby dediared a policy of the State. A sustainable approach towards the
preservation of the assets of the State vis-a-vis its duty to provide for free housing
of its constituents who needs it.

Section 3. Free Housing Through Usufruct Program. — Housing units shall be
distributed to qualified beneficiaries through contracts of usufruct. The National
Housing Authority (NHA), Local Government Units (LGU) and other government
agencies engaged in housing shall implement this program.

The government agency implementing this housing program shall retain ownership
of title to the housing unit, with the beneficiary as usufructuary, allowed to enjoy
the use of the property.

Section 4. Qualified Beneficiaries. - Only underprivileged and homeless Filipinos
without known ownership of any real property anywhere in the country may be
beneficiaries of the free housing through the usufruct program.

Section 5. Period of Usufruct. — The beneficiary shall continue to enjoy use of the
Property until disqualified under the preceding section. In the event of death of
the beneficiary, the next of kin shall have priority to take over the usufruct provided
that the next of kin is qualified under the same section of this Act.


Section 6. Prohibitions on the Usufruct. — The beneficiary shall not lease, rent, sell
or in any other manner transfer possession of the property under usufruct nor shall
it be allowed to be used in whatever manner by any person other than the
beneficiary or his immediate family. Further, the property shall only be used by
the beneficiary for residential purposes. Violation of these prohibitions shail result
in the forfeiture of the usufruct and constitute disqualification of the violator as
beneficiary of any housing program by the government.

Section 7. Indusions of the Usufruct. - Usufruct shall only include use of the
property. Charges for utilities such as electricity, water and communication shall
be for the account of the beneficiary unless otherwise provided for by the LGU as
included in the usufruct contract.

Section 8. Financing, Ownership and Management. - The NHA shall provide
financial and technical assistance to the LGUs in the implementation of the
program. Regardless of ownership of title to the properties subject of the program,
the LGU where the housing project is located shall be responsible with the
management and maintenance of the properties subject of the program. For
Purposes of this section, management shall indude the determination of the
beneficiaries of the program and maintenance shall include insuring that adequate
utility services are accessible to the beneficiaries.

Section 9. Implementing Rules and Regulations. - The NHA, Department of
Interior and Local Government (DILG) and the Department of Human Settlements
and Urban Development (DHSUD), shall promulgate the rules and regulations for
the effective implementation of the provisions of this Act.

Section 10. Appropriation. — An appropriation in the amount of Ten Billion Pesos
(P10,000,0000,000.00) is hereby allocated to the NHA as seed fund which will be
tapped as assistance to LGUs for the implementation of the program. Subsequent
allocations shall be appropriated in the annual General Appropriations Act as is
needed to sustain the program.

Section 11. Separability Clause. — If any provision of this Act shall be held
unconstitutional or invalid, the other provisions not otherwise affected shall remain
in full force and effect.

Section 12. Repealing Clause. — All laws, executive orders, rules and regulations
inconsistent with or contrary to this Act are hereby deemed accordingly repealed
or amended.

Section 13. Effectivity Clause. - This Act shall take effect after fifteen (15) days
from publication in at least two (2) newspapers of general circulation.

Approved,