Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. ____ 
Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR., 
HON. MIGUEL LUIS R. VILLAFUERTE, HON. TSUYOSHI ANTHONY G. HORIBATA AND 
HON. NICOLAS ENCISO VIII 
EXPLANATORY NOTE 
Metro Manila is one of the biggest and most densely populated megacities in the 
World. As to date, it is home to almost thirteen million people which makes it the third 
most populous urban area in the world. This is also home to more than three million slum 
dwellers or individuals illegally occupying improvised housing units in spaces owned by 
the government or private entities without proper sanitation, safe water supply, electricity 
and/or other basic human necessities. 
Slum dwellers are mostly those seeking for greener pastures in the Metro only to 
find themselves unable to afford decent housing and end up being one of those who are 
homeless. They are the ones that seek for better opportunities in the city because of 
limited available jobs in their hometowns while some are internally displaced persons 
(IDP) due to natural hazards and armed conflicts. There are also those that still await 
relocation from the past typhoons that rendered them homeless – such as Yolanda, 
Ondoy, Pepeng, Rolly, Quinta and Ulysses among others. The Urban Poor Associates 
(UPA), a non-government organization monitoring eviction cases, reports that from the 
years 1996 to June 2008, a total of 287 demolition cases have rendered more than 85,000 
families or more than 400,000 persons homeless. They are the poorest, and the most 
vulnerable in this country. 
This bill intends to reduce, if not eradicate, homelessness in urban areas by 
providing access to socialized housing units to our underprivileged and homeless citizens. 
They shall be granted affordable and graduated amortization payment schemes, as well 
as an opportunity to render manual service in the construction of their homes – reliving 
the bayanihan spirit in these communities. 
We also need to tap the inter-agency partnership of the National Housing Authority 
(NHA), Home Development Mutual Funds (HDMF/PAG-IBIG), and the Department of 
Interior and Local Government (DILG) to ensure the efficient implementation of this bill. 
July 11, 2022
5:21 pm
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A good housing is a necessity that provides not only shelter and security but also 
a sense of dignity. Hence, it is unfortunate that housing has remained a serious but 
unresolved problem in this country. The humble intent of this bill is to institutionalize the 
provision of socialized housing units in urban areas so that we will have fewer families 
sleeping in the streets, or risking their health and safety in shanties subject to demolition. 
The State has to meet the backlog of six million housing units to adequately cater to the 
housing needs of our people, otherwise, the figures are only expected to go up given the 
population increase, inept bureaucratic processes, and rapidly urbanizing areas. 
 
In consideration of the foregoing premises, the passage of this bill is earnestly 
sought. 
 
 
 
 
LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.              MIGUEL LUIS R. VILLAFUERTE   
 
 
 
 
TSUYOSHI ANTHONY G. HORIBATA  
 
 
NICOLAS ENCISO VIII 
 
 


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. ____ 
Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR., 
HON. MIGUEL LUIS R. VILLAFUERTE, HON. TSUYOSHI ANTHONY G. HORIBATA AND 
HON. NICOLAS ENCISO VIII 
AN ACT 
ESTABLISHING A BAYANIHAN HOMEBUILDING PROGRAM FOR LOW INCOME 
GROUPS THROUGH GRADUATED AMORTIZATION PAYMENT (GAP) SCHEME 
AND FOR OTHER PURPOSES 
Be it enacted by the Senate and the House of Representatives in Congress assembled: 
SECTION 1. Short Title. – This Act shall be known as the “Bayanihan Homebuilding 
Program Act.” 
SECTION 2.  Declaration of Policy. – It is hereby declared the policy of the State to 
promote the national shelter program and to implement a continuing program of socialized 
housing which will make available, at affordable cost, decent housing and basic services 
to low-income families in urban centers and rural areas. Towards this end, a self-help 
homebuilding mechanism, the Bayanihan Homebuilding Program, shall be established. 
SECTION 3.  Objectives. – The objectives of this Act shall be as follows: 
a) Enhance the capability of low-income groups to acquire decent and low-cost
housing units through the introduction of self-help homebuilding mechanisms and
facilities which will render affordable such acquisitions;
b) Eradicate homelessness and poverty housing by means of conducting simple,
decent and affordable housing for low income families;
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c) Enjoin the active participation of local government units and encourage people’s 
effective participation in the development process of socialized housing programs 
through adequate measures for house construction in their respective areas; 
 
d) Serve the housing requirement of the underprivileged and those gainfully 
employed, and the members of the funding agencies such as the Government 
Service Insurance System (GSIS), Social Security System (SSS), and Home 
Development Mutual Fund (HDMF/PAG-IBIG). 
 
SECTION 4.  Definition of Terms. – As used in this Act, the following terms shall mean: 
a) “Affordable cost” refers to the most reasonable price of land and shelter based on 
the needs and financial capability of Bayanihan Homebuilding Program 
beneficiaries and appropriate financing scheme. 
 
b) “Graduated Amortization Payment” refers to the mode of payment wherein 
principal payments are deferred on the first few years of the term of the loan and 
designed to enhance the affordability to the beneficiary through a mechanism of 
increasing monthly amortization over the term of the loan. 
 
c) “Socialized housing” refers to housing programs and projects covering houses and 
lots or home lots only undertaken by the government or the private sector for the 
underprivileged and homeless citizens which shall include sites and services 
development, long term financing, liberalized terms on interest payments and such 
other benefits in accordance with the provisions of this Act. 
 
d) “Slum or blighted area” refers to any area where dwellings predominate which, by 
reason of dilapidation, overcrowding, faulty arrangement of these factors, are 
detrimental to safety, health, or morals. 
 


e) “Bayanihan Homebuilding” refers to the cooperative endeavor of volunteers and 
qualified beneficiaries of this Act to invest time and labor for the construction of 
their simple, decent and affordable homes. 
 
f) “Underprivileged and homeless citizens” refers to beneficiaries of this Act and to 
individuals or families residing in urban and urbanizable areas whose income or 
combine household income falls within the poverty threshold as defined by the 
National Economic and Development Authority (NEDA), and who do not own their 
own homes. This shall include those who live in makeshift dwelling units and do 
not enjoy security of tenure. 
 
SECTION 5.  Eligibility Criteria for Bayanihan. – To qualify for the Bayanihan 
Homebuilding Program, a beneficiary: 
a) Must be a Filipino citizen; 
b) Must be underprivileged and homeless citizen, as defined in Section 4(f) of this 
Act, or if gainfully employed, must be a member of the GSIS, SSS, or 
HDMF/PAGIBIG, who applied for a socialized housing loan not exceeding One 
Hundred Eighty Thousand Pesos (P180,000.00); 
c) Must not own any real property, whether in the urban or rural areas; 
d) Must not be a professional squatter or a member of a squatting syndicate; and 
e) Must render at least 400 hours of volunteer labor for the construction of his own 
house. 
 
SECTION 6.  Registration of Bayanihan Homebuilding Program Beneficiaries. – The 
Housing and Urban Development Coordinating Council (HUDCC), in coordination with 
the local government units, shall design a system for the registration of qualified 
Bayanihan Homebuilding Program beneficiaries. 
The local government units, within one (1) year from the effectivity of this Act, shall 
identify and register all beneficiaries within their respective localities. 
 


SECTION 7.  Participation of Volunteers. – Volunteers who are willing to render 
community service in the construction of homes for beneficiaries under this Act may 
participate and register in the Bayanihan Homebuilding Program subject to the 
requirements set by the local government units concerned within their respective 
localities. 
SECTION 8.  Graduated Amortization Payment (GAP) Scheme. – All duly accredited 
government financial institutions granting socialized housing loans to eligible Bayanihan 
Homebuilding Program beneficiaries shall adopt and implement the graduated 
amortization payment as the mode of payment for such loans. 
The graduated increase in the amortization payment over the term of the loan shall be 
computed in accordance with the following conditions subject to the guidelines of duly 
accredited government financial institutions: 
1) The initial payment of amortizations shall be made within thirty (30) days upon 
occupancy of the home unit; 
 
2) The monthly amortization payments for the first ten (10) years shall be fixed at a 
minimum amount of Five Hundred Pesos (P500.00); 
 
3) The graduated increase in the amortization payment not exceeding Two Hundred 
Fifty Pesos (P 250.00) shall commence on the 11th year and every three (3) years 
thereafter. 
 
4) The amortization payments shall not exceed forty percent (40%) of the borrower’s 
net disposable income. For this purpose, the net disposable income shall be 
defined as the gross verifiable monthly income less statutory deductions and 
amortizations of outstanding loan obligations. The monthly income shall be based 
on the income tax return(s) (ITR) with W-2 Form(s) duly received by the Bureau of 
Internal Revenue (BIR) or other documents acceptable to duly accredited 
government financial institutions. 
 


SECTION 9.  Loan Period. – The loan period shall not be more than thirty-five (35) years 
and shall be shortened correspondingly to the difference between the age of the borrower 
at the time of the loan approval and retirement age. 
 
SECTION 10.  Interest Rate. – The government financial institutions (GFIs) shall charge 
the borrowers a fixed rate of nine percent (9%) per annum for the term of the location. 
 
SECTION 11.  Agency Responsibilities. – Anent the implementation of the Bayanihan 
Homebuilding Program, and subject to the limitations and requirements of their respective 
charters and other existing laws, and without impairing their financial or required reserve 
positions, the following agencies are directed as follows: 
a) National Housing Authority (NHA). – The NHA shall be the government agency 
engaged in the direct shelter production. It shall focus its efforts in providing 
housing assistance to the lowest 30% of urban income-earners through slum 
upgrading, squatter relocation, development of sites and services, and 
construction of core-housing units. In addition, it shall formulate the mechanism for 
the participation of the registered Bayanihan Homebuilding Program beneficiaries 
and volunteers in the construction and building of their home units. Further, it shall 
promote the use of indigenous, alternative and low-cost construction materials and 
technologies for socialized housing.  
 
b) Home Development Mutual Funds (HDMF/PAG-IBIG). – The HDMF/PAG-IBIG 
shall administer provident fund contributions collected from member employee and 
employers, utilizing funds not required for provident benefits for housing loans for 
members, and, in addition will be charged with the development of saving scheme 
for home acquisition. 
 
c) Department of Interior and Local Government (DILG). – The DILG shall facilitate 
coordination and ensure smooth implementation of the Bayanihan Homebuilding 
Program at the local government level. 
 


SECTION 12.  Implementing Rules and Regulations. – The Chairman of HUDCC in 
coordination with the NHA, HDMF/PAG-IBIG, and DILG shall promulgate rules and 
regulations necessary for the implementation of this Act. 
 
SECTION 13.  Separability Clause. – If any part or provision of this Act shall be held 
unconstitutional or invalid, other parts or provisions hereof which are not affected thereby 
shall continue its full force and effect. 
 
SECTION 14.  Repealing Clause. – any law, decree, rules and regulations, executive 
orders or parts thereof inconsistent with this Act are hereby repealed or modified 
accordingly. 
 
SECTION 15.  Effectivity. – This Act shall take effect fifteen (15) days after its publication 
in at least two (2) newspapers of general circulation in the Philippines. 
 
Approved,