Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

SIXTEENTH CONGRESS

Second Regular Session

4710

House Bill No.

Introduced by Rep. EVELIO R. LEONARDIA

EXPLANATORY NOTE

‘The value of the Family Home under the Family Code was set at 200,000.00 and
‘300,000.00 for the rural area and urban area, respectively, when the Family Code was
enacted way back in 1988 yet.

The aforesaid value of the family home based on the present assessment made by the
National Economic Development Authority (NEDA) and the Housing and Urban
Development Corporation Council (HUDCC) reflected in HUDCC Resolution No. 1 (Series
of 2008) the price ceiling of socialized housing, is valued at P450,000.00 given the 31.1%
growth in housing and repairs of the Consumer Price Index.

‘Thus, the need to increase the value of the Family Home on the basis of aforesaid data
in that the Family Home in the rural area shall be set at P450,000.00 and for the urban area at
700,000.00, the Iatter value is based on the approximate ratio difference between the
original rural and urban family home values.

As such, the approval of this Bill is eamestly sought.

ian

REP, EVELIO R. LEONARDIA
Lone District, Bacolod City


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila
SIXTEENTH CONGRESS

Second Regular Session

House BitNo, 4710

Introduced by Rep. EVELIO R. LEONARDIA.

ANACT
AMENDING ARTICLES 157 AND 160 OF EXECUTIVE ORDER NO, 209 AS
AMENDED BY EXECUTIVE ORDER NO. 227, OTHERWISE KNOWN AS THE
FAMILY CODE OF THE PHILIPPINES

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

SECTION 1, Articles 157 and 160 of the Executive Order No. 209, as amended, are
hereby amended to read as follows:

“Art. 157. ‘The actual value of the farnily home shall not exceed, at
the time of its constitution, the amount of Seven Hundred
‘Thousand Pi i and Four Hundred Fit

Thousand P rural ‘or such amount as may hereafter
ie fixed by law.

In any event, if the value of the currency changes after the
adoption of this Code, the value most favorable for the constitution
of a family home shall be the basis of evaluation.”

For purposes of this Article, urban areas are deemed to
include chartered cities and municipalities whose annual income at
least equals that legally required for chartered cities. All others are
deemed to include chartered cities and municipalities whose annual
income at least equals that legally required for chartered cities. All
others are deemed to be rural areas


‘Art. 160, When a creditor whose claims is not among those
mentioned in Article 155 obtains a judgment in his favor, and he
has reasonable grounds to believe that the family home is actually
worth more than the maximum amount fixed in Article 157, as
‘amended, he may apply to the court which rendered the judgment
for an order directing the sale of the property under execution, The
court shall so order if it finds that the actual value of the family
home exceeds the maximum amount allowed by law as of the time
of its constitution. If the increased actual value exceeds the
maximum allowed in Article 17, as amended, and results from
subsequent voluntary improvements introduced by the person ot
persons constituting the family home, by the owner or owners of
the property, or by any of the beneficiaries, the same rule and
procedure shall apply.

At the execution sale, no bid below the value allowed for a family
home shall be considered, The proceeds shall be applied first to the
amount mentioned in Article 157, as amended, and then to the
liabilities under the judgment and the costs. The excess, if any,
shall be delivered to the judgment debtor.

SEC. 2. All existing laws or parts thereof inconsistent with the provision of this Act
are hereby repealed or modified accordingly.

SEC.3 This Act shall take effect fifteen (15) days after its publication in the Official
Gazette or in two (2) newspapers of general circulation.

Approved,