E REPRESS

coc oft on fu" Filed ™
public of the Philippines 2
HOUSE OF REPRESENTATIVES [RECEIVED a
Quezon City XL DATE August 31,2022 q
* TIME 4:45pm
NINETEENTH CONGRESS eS BY
First Regular Session FF

40 Inve’

HOUSE BILL NO. 4305

Introduced by the Honorable ANIELA BIANCA N. TOLENTINO

EXPLANATORY NOTE

Having a house is one of the basic needs of human beings. The proposed

measure herein will be the true catalyst for the efforts of the government to give
homes to less fortuante Filipinos. This representation seeks to have the housing
programs of the country properly funded, thru this proposed legislation.

The bill herein aims to increase housing production by forging partnership

among housing stakeholders to address the housing needs of the Filipino families.
After its passage into law, the bill herein will generate and mobilize funds for housing
purposes of Filipino families, giving priority to the homeless and underprivileged. It
will also ensure the provision of support mechanisms and have subsidy program to
improve access of Filipino families to a variety of housing options

This representation believes that the proposed law herein will guarantee the

development of a strong, sustainable, accessible, and affordable housing finance
system. At this point the Constituional mandate on the matter should be highlighted,
to wit: "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” (Section 9, Article |!, 1987
Constitution).

For the Filipino people, the approval of the bill is earnestly sought.


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
NINETEENTH CONGRESS.
First Regular Session

HOUSE BILL NO. _ 4305.

Introduced by the Honorable ANIELA BIANCA D. TOLENTINO

AN ACT ESTABLISHING A NATIONAL COMPREHENSIVE
HOUSING FINANCING PROGRAM, PROVIDING FOR
THE ANNUAL AUTOMATIC APPROPRIATION OF FUNDS,
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 “National
Comprehensive Housing Financing Act of 2022.”

SECTION 2. Declaration of Policy. - It Is hereby declared the policy of the State
to:

(a) 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;

(b) Promote social justice in all phases of national development; and

(c) Undertake, in cooperation with the private 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.

SECTION 3. Objectives. - Towards this end, the State shall:

(a) Increase housing production by forging partnership among housing
stakeholders to address the housing needs of the Filipino families;

(b) Generate and mobilize funds for housing purposes of Filipino families,
giving priority to the homeless and underprivileged;

(Cc) Ensure the provision of support mechanisms/subsidy program to
improve access of Filipino families to a variety of housing options;


(d) Guarantee the development of a strong, sustainable, accessible, and
affordable housing finance system; and

(e) _ Encourage public and private sector participation in the implementation
of government National Housing Development and Production Financing Program.

SECTION 4. Revolving Fund. - The amount of not less than Fifty Billion Pesos
(PhP50,000,000,000.00) is hereby authorized to be initially appropriated for the
Department of Human Settlements and Urban Development (DHSUD) and its
attached agencies in the General Appropriations Act to carry out the objectives of
this Act. The amount initially appropriated shall be replenished in the General
Appropriations Act of the following year over a period of twenty (20) consecutive
years commencing the year immediately succeeding the effectivity of this Act.

A total amount of One Trillion Pesos (PhP1,000,000,000,000.00) covering the
continuing requirement of this Act shall be appropriated to the DHSUD and its
attached agencies over the twenty (20) year period for the implementation of the
following housing programs:

(a) One hundred sixty-eight billion pesos (P168,000,000,000.00) for the
implementation of the following programs of the DHSUD:
(1)One hundred thirty billion pesos (P130,000,000,000.00) to finance the
Public Housing;
(2)Thirty billion pesos (P30,000,000,000.00) as subsidy, broken down as
follows:

i. Six billion, eight hundred fifty million pesos (P6,850,000,000.00)
as Interim Shelter Finance Assistance for the informal settler-
families who will be relocated;

ii. Twenty billion, six hundred million pesos (P20,650,000,000.00)
as upfront subsidy; and

iii. Two billion, five hundred million pesos (P2,500,000,000.00) as
amortization support.
(3)Seven billion, six hundred fifty million pesos (P7,400,000,000.00) to
finance public rental housing; and
(4)Six hundred million pesos (P600,000,000.00) to finance survey of
proclaimed lands and conduct of inventory of government idle lands
suitable for socialized housing.

(b) Six hundred thirty billion pesos (P630,000,000,000.00) for the
implementation of the following programs of National Housing Authority (NHA):

(1)Two hundred ninety-seven billion, seven hundred million pesos
(P297,700,000,000.00) to finance the Resettlement Program;

(2)Two hundred three billion, five hundred million pesos
(P203,500,000,000.00) to finance as subsidy for Government
Employees Housing;

(3)Sixty-three billion, seven hundred million pesos (P63,700,000,000.00)
for the Settlements Upgrading;

(4)Thirty-nine billion, three hundred million pesos (P39,300,000,000.00)
for the Housing Program for Calamity Victims;


(5) Twenty-five billion, eight hundred million pesos (P25,800,000,000.00)
for Land Banking.

(©) One hundred fifty-two billion pesos (P152,000,000,000.00) for the
implementation of the Community Mortgage Program of Social Housing Finance
Corporation.

(d) _ Fifty billion pesos (P50,000,000,000.00) for the capitalization of
National Home Mortgage Finance Corporation (NHMFC).

SECTION 5. LGU Sources of Funds. - Section 43 of Republic Act (R.A.)
No. 7279, otherwise known as the “Urban Development and Housing Act of 1992,” is
hereby amended to read, thus:

"Sec. 43. Socialized Housing Tax. - Consistent with the constitutional
principle that the ownership and enjoyment of property bear a social function and
to raise funds for the Program, all local government units are hereby authorized to
impose an additional one-half percent (0.5%) tax on the assessed value of all lands
in urban areas [in—exeess-of-Fiftytheusand-peses{PS0,000)] THE PROCEEDS
FROM THE IMPOSITION OF SOCIALIZED HOUSING TAX SHALL ACCRUE TO
THE SPECIAL FUNDS OF THE LOCAL GOVERNMENT UNIT, WHICH SHALL
BE USED FOR THE DEVELOPMENT OF SOCIALIZED HOUSING PROJECTS
AND FOR THE CONSTRUCTION AND ESTATE MANAGEMENT OF PUBLIC
RENTAL HOUSING.”

SECCTION 6. Wational Housing Securitization Program. - The National
Housing Securitization Program for the development of the secondary market for
home mortgages and other housing related receivables, conveyances and financial
instruments and the development or promotion of and investments in new housing-
related financial instruments and investment vehicles and the capital markets
thereof, to increase and sustain funds available for housing and home development,
shall be implemented as follows:

(a) The NHMFC shall be the sole implementing agency for the
securitization program;

(b) The NHMFC in coordination with the DHSUD, DOF, BSP, and other
concerned agencies and private sector organizations, shall formulate a program
whose proceeds shall be earmarked for the housing programs of the government.

(c) The mortgages to be generated as a result of the implementation of
the housing programs shall be sold and transferred to the NHMFC, which shall also
serve as asset pool for securitization.

(d) The NHMFC shall manage the whole securitization process which
includes the following activities:

(1)Determining the eligibility criteria for the asset pool;


(2)Defining the preliminary structure of the notes, bonds, and or
instruments to be issued, as well as third parties to be hired; and
(3)Education or briefing of target investors for all the issues.

(e) The bonds, notes, and securities shall be exempt from the registration
requirements under the Securities Regulation Law to accelerate the issuance of their
housing related securities/financial instruments and, thus, more reasonably provide
the necessary fund for housing developments.

(f) Any socialized housing or economic housing-related bond or asset-
backed securities issued by NHMFC directly or through a special purpose entity shall
enjoy all the tax exemptions granted under R.A. No. 9267, or the “Securitization Act
of 2004,” pursuant to the State’s policy of promoting the securitization of mortgage
and housing-related receivables of government housing agencies, to generate
investment and accelerate the growth of the housing finance sector, especially for
socialized economic housing.

(g) Bonds purchased by private real estate developers shall be considered
as an alternative compliance to the balanced housing requirements under Section 18
of R.A. No. 7279, as amended by R.A. No. 10884, subject to the rules promulgated
by the DHSUD.

(h) The Philippine Guaranty Corporation created pursuant to Executive
Order No. 58, series of 2018, shall guaranty the payment of the balance outstanding
and due on the guaranteed principal obligation, plus interest and yields thereon for
socialized housing packages, for low-cost housing packages, for medium-cost
housing packages, and for open housing packages, the rates of which is to be
determined by the Philippine Guaranty Corporation.

SECTION 7. Capitalization of NHMFC. - The authorized capital stock of the
NHMFC is hereby increased from Five billion, five hundred million pesos
(P5,500,000,000.00) to Fifty billion pesos (P50,000,000,000.00) to expand its
leveraging capacity based on the volume of mortgage loans being service to improve
its profitability by reducing the average cost of its fund made available for home
lending programs.

The Fifty billion peso (P50,000,000,000.00) capital shall be fully subscribed by
the Government of the Republic of the Philippines; Provided, That the
P25,000,000,000.00 of the capitalization shall be funded from the General
Appropriations Act and the remaining P25,000,000,000 shall be funded from the
declared dividends of the NHMFC in favor of the National Government. For this
Purpose, any and all declared dividends of the NHMFC in favor of the National
Government shall be deposited in a special account in the General Fund, and
earmarked for the payment of NHMFC's increase in capitalization. Such payment
shall be released and disbursed immediately and shall continue until the increase in
capitalization has been fully paid.


SECTION 8. Tax Exemptions. - The NHMFC shall be exempt from all national,
provincial, municipal, and city taxes on income derived from its governmental
functions, specifically income from its activities or transactions in the exercise of its
mandates.

SECTION 9. Multi-Year Obligational Authority. - The DHSUD and its attached
agencies shall be given a multi-year obligational authority for housing programs or
projects which will take more than one year to complete that requires multi-year
appropriations, subject to the provisions of existing laws and regulations including
those of the Commission on Audit and other terms and conditions most favorable to
the government.

SECTION 10. Private Sector Participation. - To fast-track the approval and
implementation of housing projects and reduce the cost of socialized and low-cost
housing units, the Bureau of Internal Revenue, the Department of Agriculture, the
National Irrigation Authority, the Philippine Coconut Authority, the Sugar Regulatory
Administration, the Department of Agrarian Reform, the Department of Environment
and Natural Resources, the Mines and Geosciences Bureau, the Laguna Lake
Development Authority, the Department of the Interior and Local Government, local
government units, the Land Registration Authority, DHSUD, and all other agencies,
shall facilitate the release of the required housing-related permits, licenses,
certifications, and tax exemptions/rulings in accordance with R.A. No. 11032,
otherwise known as the “Ease of Doing Business and Efficient Delivery of
Government Service Delivery Act of 2018.”

In case the responsible officers of the agencies concerned fail or refuse to
dispose of the application within the periods prescribed under R.A. No. 11032, the
applicable administrative and criminal liability stated in Section 22 of R.A. No. 11032
shall be imposed.

All the incentives enumerated under Section 20(d) of R.A. No. 7279, as
amended by R.A. No. 10884, shall be extended to the private sector engaged in
socialized and low-cost housing development including the construction and estate
management of public rental housing.

The participation of owners and/or developers in any of the component
programs of this Act shall be treated as one of the manners of compliance to the
balanced housing requirements subject to the conditions set forth under R.A. No.
7279.

SECTION 11. Collection Efficiency. — In order to improve collection efficiency,
the NHA, NHMFC, and the Social Housing Finance Corporation shall have authority to
foreclose mortgages and/or evict beneficiaries in accordance with existing laws.

SECTION 12. Implementing Rules and Regulations, - The DHSUD, in
consultation with its attached agencies, shall promulgate rules and regulations
necessary for the implementation of this Act within ninety (90) days from its
effectivity.


SECTION 13. Separability Clause. - If any provision of this Act is declared invalid
or unconstitutional, the remaining provisions not affected thereby shall continue to
be in full force and effect.

SECTION 14. Repealing Clause. - All laws, decrees, executive orders,
proclamations, rules and regulations, and issuances, or parts thereof which are
inconsistent with the provisions of this Act, are hereby repealed, amended, or
modified accordingly.

SECTION 15. Effectivity. — This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in a newspaper of general circulation.

Approved,