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

FIFTEENTH CONGRESS
First Regular Session

4038

House Bill No.

Introduced by Honorable Carmelo F. Lazatin

EXPLANATORY NOTE

Article XIll Section 9 of the 1987 Philippine Constitution states that the State is mandated to
undertake a ‘continuing program of urban land reform and housing which will make available and
affordable cost decent housing and basic services...”

As a manifestation of commitment, the national govemment, in the 1st UN Conference on Human
Settlements or better known as Habitat 1, recognized the importance of providing decent shelter to
the people and that housing is a national responsibilty.

And many years after this famous Habitat 1 Conference, the national government is still hard
pressed to meet the growing need for decent housing by many, especially those families who fall in
the low and middle income bracket.

With these, it is important for the national govemment continuously enhance its program on
housing.

One sound and efficient way to address the above problem is to improve further the housing
program services of the Home Development Mutual Fund or better known as PAG-IBIG. And as
the present global economic crisis unfolds and affects the nation, itis necessary to provide some
relief to the Filipino salaried wage earners in the form of lower interest rates on housing loans.

bynd, %

CARMELO. TIN,


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

FIFTEENTH CONGRESS,
First Regular Session

4038

House Bill No.

Introduced by Honorable Carmelo F. Lazatin

AN ACT IMPROVING THE HOUSING PROGRAM SERVICES OF PAG-IBIG

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

Section 1. _ The Home Development Mutual Fund created under Presidential Decree 1752 is
hereby renamed as PAG-IBIG FUND.

Section 2. Declaration of Policy. - The PAG-IBIG Fund, or simply PAG-IBIG, shall be the
primary government institution that is tasked to meet the needs of low income and middle income
wage earners for decent housing through the creation of a provident savings system for
employees, private and public, who shall be the members, supported by matching contributions of
their respective employers, with housing as the primary investment. The system may cover self-
employed and other working groups, as herein provided

Section 3. Housing Loan Interest Rates.- To achieve the policy set herein, PAG-IBIG shall
institute a progressive interest rate system on its housing program. The rate of interest shall
depend on two factors: the amount of loan for housing and the number of years of the loan
program.

‘Amount of Loan No. of Years Interest Rate

Up to P400,000.00 1yt.to5 yrs. 2% per annum
6 yrs. to 10 yrs. 3% per annum
11 t0 15 yrs. 4% per annum
16yrs. to 30 yrs. 5% per annum

Over P400,000.00

Up to P750,000.00 tyr. to5 yrs. 4% per annum
6 yrs. to 10 yrs. 5% per annum
11 t0 15 yrs. 6% per annum
‘16yrs. to 30 yrs. 7% per annum

Over P750,000.00

up to P2,000,000.00 1yts. To 5 yrs. 8% per annum
6 yrs. to 10 yrs. 9% per annum
11 t0 15 yrs. 10% per annum

16yrs. to 30 yrs. 10.5% per annum


Section 4. Loan Amount Limitations. The maximum loanable amount of a married couple for
housing is only up Two Million Philippine Pesos (P2,000,000.00) and in no way PAG-IBIG shall
entertain and process two separate housing loan applications from a married couple.

Sec. 5. Repealing Clause. — All laws, executive orders, rules or regulations, or any part thereof,
inconsistent with any provisions of this Act are hereby repealed or modified accordingly.

Sec. 6. Effectivity. — This Act shall take effect fifteen (15) days after its complete publication in at
least two (2) national newspapers of general circulation

Approved,