NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
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72 JUL18 A 8 52
SEN 
S. No. _ 55
RECEIVED BY;
Introduced by Senator PIA S. CAYETANO
AN ACT
INCREASING THE MAXIMUM VALUE OF THE FAMILY HOME EXEMPT FROM 
EXECUTION, FORCED SALE OR ATTACHMENT, AMENDING FOR THE 
PURPOSE ARTICLE 157 OF THE FAMILY CODE OF THE PHILIPPINES, AS 
AMENDED
EXPL-ANATORY NOTE
It has been ruled that the family home is a real right that is gratuitous, 
inalienable, and free from attachment. The great controlling purpose and policy is the 
protection or the preservation of the homestead - the dwelling place. A houseless, 
homeless population is a burden upon , the energy, industry, and morals of the 
community to which it belongs. No greater calamity, not tainted with crime, can befall 
a family than to be expelled from the roof under which it has been gathered and 
sheltered.1
The Family Code of the Philippines, which took effect on August 3, 1988, 
pegged the maximum value of the family home exempt from execution, forced sale 
or attachment at P200,000.00 in rural areas and P300,000.00 in the urban areas. The 
exemption of the family home is limited to such amounts, unless those maximum 
values are adjusted Dy law. If it is assessed that such amounts do not reflect the 
present value of the peso because of currency fluctuations, the amount of exemption 
shall be based on the value that is most favorable to the constitution of a family home. 
Any amount in excess of those limits can be applied to the payment of any of the
1 Eulogio V. Bell, G.R. No. 186322, 8 July 2015.


obligations to creditors, as provided under Articles 155 and 160 of the Family Code.2 
Over three decades have elapsed since the effectivity of the Family Code, and such 
amounts have been rendered unrealistic by the current real estate prices.
In the Philippines, homes not valued more than PhP3 million are classified as 
affordable housing.3 In 2018, Housing and Urban Development Coordinating Council 
outlined the bracketing for the low-income segment housing based on price range and 
ceiling. In its categorization, units sold: (a) for more than PI.7 million but not 
exceeding P3 million are considered low-cost housing; (b) for P450,000 up to PI.7 
million are classified as economic housing; and (c) below P450,000 are classified under 
the socialized housing group.4 Moreover, per the latest Bureau of Internal Revenue 
(BIR) Revenue Regulation 08-2021 dated 11 June 2021, the value-added tax (VAT) 
exemption threshold for the sale of house and lot packages and other residential 
dwellings is at PhP3,199,200.00, which is based on the 2010 Consumer Price Index.
Relatedly, our country's inflation rate continues to move at a faster pace of 6.1 
percent in June 2022, compared to 5.4 percent in May 2022. This is the highest 
recorded inflation since October 2018 as the average inflation for the first half of 2022 
was posted at 4.4 percent.5 Relative to their annual rates in the previous month, 
annual increases were also higher in the housing, water, electricity, gas and other 
fuels commodity group at 6.6 percent.
As such, the increase of the value of a family home, which is exempted from 
execution, forced sale or attachment appeared to have become more timely, 
considering that a number of Filipino families are struggling to keep up with the
2 Eulogio V. Bell, Sr., G.R. No. 186322, 8 July 2015.
3 Reyes, R. (2018, February 13). Government urged to allocate more funds for low-cost housing. 
BusinessMirror. https://businessmirror.com.ph/2018/02/13/government-urged-to-allocate-more- 
funds-for-iow-cost-housing/
4 Reyes, R. (2018, February 13). Government urged to allocate more funds for low-cost housing. 
BusinessMirror. https://businessmirror.com.ph/2018/02/13/government-urged-to-allocate-more- 
f u nds-for-low-cost- housi ng/
5 Summary Inflation Report Consumer Price Index (2018=100): June 2022 (2022, July 5). Phiiippine 
Statistics Authority.
https://psa.gov.ph/statistics/survey/price/summary-inflation-report-consumer-price-index-2018100-
june-2022


escalation of prices for their sustenance and basic necessities. This proposed measure, 
which is one of the bills filed by the undersigned in the 13th Congress, seeks to 
augment the maximum amount of the family home exempt from execution, forced 
sale or attachment, and thereby safeguard a very basic right under the law.
In view of the foregoing, the early passage of this bill is earnestly requested.
PIA S. CAY^ANOym.


NINETEENTH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
0M
ryiBfficf of tl)e
*22 JUL18 A8 52
sEN%m
S. No.
RECEIVED BY;
Introduced by Senator PIA S. CAYETANO
AN ACT
INCREASING THE MAXIMUM VALUE OF THE FAMILY HOME EXEMPT FROM 
EXECUTION, FORCED SALE OR ATTACHMENT, AMENDING FOR THE 
PURPOSE ARTICLE 157 OF THE FAMILY CODE OF THE PHILIPPINES, AS 
AMENDED
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled:
1 
Section 1. Article 157 of the Family Code of the Philippines, as amended, is
2 
hereby amended to read as follows:
3 
"Art 157. The actual value of the family home shall not
4 
exceed, at the time of its constitution, the amount of [three
5 
hundred thousand in urban areas, and two hundred thousand in
6 
rural areas] THREE MILLION ONE HUNDRED NINETY-NINE
7 
THOUSAND TWO HUNDRED PESOS (Php3,199,200.00), or
8 
such amounts as may hereafter be fixed by law: PROVIDED,,
9 
THAT IF THIS AMOUNT DOES NOT MATCH THE PRESENT
10 
VALUE OF THE PESO DUE TO CURRENCY FLUCTUATIONS,
11 
THE AilOUNT OF EXEMPTION SHA^L BE BASED ON THE
12 
VALUE MOST FAVORABLE TO THE CONSTITUTION OF A
13 
FAMILY HOME.
14 
[In any event, if the value of the currency changes after
15 
the adoption of this Code, the value most favorable for the
16 
constitution of a family home shall be the basis of evaluation.]
17 
[For purposes of this Article, urban areas are deemed to
18 
include chartered cities and municipalities whose annual income


1 
at least equals that legally required for chartered cities. All others
2 
are deemed to be rural areas.]"
3 
Sec. 2. This Act shall take effect fifteen days after its publication in the Official
4 
Gazette or in at least (2) national newspapers of general circulation, whichever comes
5 
earlier.
Approved,