Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
Second Regular Session 
HOUSE BILL NO. ____ 
Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR. 
EXPLANATORY NOTE 
The United Nations Committee on Economic, Social, and Cultural Rights emphasized 
that the right to housing equates to people’s right to live in security, peace, and dignity. 
Given that housing is highly associated with creating conducive conditions to achieve 
social objectives of improved health, sanitation, and overall well-being of our citizens, 
our local laws also manifested the commitment of the State to implement a 
comprehensive and continuing urban development and housing program.   
Despite these, the Philippine Statistics Authority revealed that in 2021, there are 4.5 
million homeless Filipinos that are mostly found in urban centers. Moreover, data 
showed that the Marcos administration inherited a backlog of around 6.7 million 
housing units from the previous administration. In October 2022, Department of 
Human Settlements and Urban Development (DHSUD) Assistant Secretary Avelino 
Tolentino III stated in a Senate Finance Committee Meeting that if the housing problem 
remained unresolved, the housing backlog may hit over 10 million by the end of the 
Marcos administration.  
These data crystallize that the housing condition in the Philippines is an ever-growing 
concern despite the government’s existing efforts for better housing services for poor 
Filipinos. Research shows that lack of access to housing has detrimental effects, 
especially on children’s mental and physical health. Indeed, decent and affordable 
housing is intricately woven into a healthy labor force and the young generation that 
will be instrumental in nation-building.  
Currently, the Philippines’ annual budget for pro-poor housing programs is inadequate. 
Given this concern, this bill seeks to address this issue by increasing and ensuring the 
continuing funding support to fully implement the major components of the National 
Development and Production Housing Program. Surely, this bill will pave the way to 
gradually address our long-standing housing backlogs.  
In view of the foregoing, the approval of this bill is earnestly sought. 
LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR. 
September 28, 2023
1:05 pm
9362


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
Second Regular Session 
HOUSE BILL NO. ____ 
Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR. 
AN ACT 
PROVIDING FOR A NATIONAL HOUSING DEVELOPMENT, PRODUCTION, 
AND FINANCING PROGRAM, REGULARIZING ITS APPROPRIATION FOR 
ITS IMPLEMENTATION 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
Section 1. Short Title. – This Act shall be known as the "National Housing 
Development, Production and Financing (NHDPF) Act". 
Section 2. Declaration of Policy. – It is hereby declared a policy of the state to: 
a)
undertake, in cooperation with the private sector, a continuing program
of housing and urban development which shall make available at affordable cost, 
decent housing and basic services especially to the underprivileged and homeless 
citizens;  
b)
pursue the realization of a modern, humane, economically viable and,
environmentally-sustainable society where the urbanization process is manifest in 
towns and cities being centers of productive economic activity and is led by market 
forces; where urban and rural areas have affordable housing, sustainable physical 
and social infrastructure and services facilitated under the democratic and 
decentralized system of governance; and where urban and rural areas provide the 
opportunities for an improved quality of life and eradication of poverty;  
9362


c)
ensure that poor dwellers shall be provided with appropriate and
innovative housing program and support mechanisms to discourage further growth of 
blighted communities; and  
d)
encourage 
on-site 
development, 
whenever 
feasible, 
in 
the
implementation of housing programs and shall promote the creation of new 
settlements with basic facilities and utilities and development of sustainable urban 
renewal programs. 
Cognizant of the role of housing as stimulus of economic growth and development, it 
is hereby declared a state policy to strengthen, promote and support the component 
activities of housing production and finance by ensuring continuous/sustained funding 
support to scale-up the implementation of the major components of the National 
Housing Development and Production Program. 
Section 3. Statement of 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 by 2040. 
(b)
Generate and mobilize funds for housing purposes of Filipino families,
giving priority to the homeless and underprivileged. 
(c)
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. 
(e)
Encourage public and private sector participation in the implementation
of the government’s National Housing Development and Production Financing 
Program. 
Section 4. National Housing Development Production Program Implementation. 
– Consistent with the aforementioned policy and objectives, the Department of Human


Settlements and Urban Development (DHSUD) and its attached key shelter agencies, 
shall intensify the implementation of the vital components of the National Housing 
Development Production and Financing Program. The implementation of this program 
shall be carried out by the following agencies: 
 
National Housing Authority (NHA)- the sole national government agency tasked to 
implement and develop the following housing programs intended for the bottom 30% 
of the income population: 
(1) 
Resettlement – This program addresses the requirements of families affected 
by: 
a)  
government infrastructure projects,  
b)  
those living along danger areas, and  
c)  
those affected by Supreme Court Mandamus. It entails the provision of vertical 
(from 5 to 15-storey residential building) and/or horizontal housing units, 
community facilities, socio-economic and other community support programs. 
 
The program also involves the implementation of local/regional resettlement projects 
as joint National Government-Local Government undertakings to address the 
resettlement requirements of Local Government Units (LGUs) outside Metro Manila 
involving families in danger areas, those affected by infrastructure projects, 
indigenous peoples and former rebels. 
 
The government infrastructure agencies shall submit an inventory of Informal Settler 
Families (ISFs) to be affected by their projects and their location to the appropriate 
housing agencies at least two (2) years prior to its implementation and shall 
incorporate in their respective project costs the amount needed for then relocation 
and resettlement of affected families. 
 
(2)  
Government Employees Housing Program – this program is intended to 
provide decent and affordable housing to low-salaried government employees. 
 
(3)  
Settlements Upgrading – this program aims to address the security of tenure 
and infrastructure requirements of informal settlements on government-owned lands 
proclaimed or designated as socialized housing sites. 


 
(4)  
Housing Program for Calamity Victims – this program is intended to respond to 
the housing needs of low and marginal-income and/or informal shelter families for 
transitional and/or permanent shelter affected by calamities such as typhoons, 
landslides, earthquakes, and fires for relocation to safe areas. 
 
(5)  
Land Banking – this refers to the acquisition of land, which includes idle 
government lands, at values based on existing use in advance of actual need to 
promote planned development and socialized housing programs with a view to 
distribute the land to qualified socialized housing beneficiaries. 
 
It covers survey and titling of individual lots for disposition to qualified occupants, 
infrastructure development, housing construction and rehabilitation of existing project 
sites. 
  
Social Housing Finance Corporation (SHFC) – mandated to undertake social housing 
programs that will cater to the formal and informal sectors in the low-income bracket 
and to take charge of developing and administering social housing programs, 
particularly the Community Mortgage Program and its different modalities: 
 
(6) 
Community Mortgage Program (CMP) – this is a mortgage financing program, 
which assists legally organized associations of underprivileged and homeless citizens 
to purchase and develop a tract of land under the concept of community ownership. 
The primary objective of the program is to assist residents of blighted or depressed 
areas to own the lots they occupy, or where they choose to relocate to, and eventually 
improve their neighborhood and homes to the extent of their affordability. The different 
modalities of the CMP are as follows: 
a)  
Sectoral CMP – a CMP modality that caters to the different sectoral groups 
including but not limited to the basic sector groups needing resettlement 
assistance. A sectoral group represents a group or coalition of persons who 
share similar concerns and interests and intend to avail of resettlement 45 
assistance from SHFC, including Indigenous Peoples (IPs), Indigenous 
Cultural Communities (ICCs) and other ethnic minority groups. 
 


b)  
Housing for Peace Process and Nation Building CMP – a CMP modality which 
would lead to the achievement of national peace and development through 
the provision of housing to former rebels/rebel returnees (FR/RR). This also 
includes rebuilding damaged or destroyed homes in post conflict-areas of 
internally-displaced persons (IDPs). 
 
c)  
Post-Disaster Rehabilitation and Reconstruction CMP – a CMP modality 
which provides assistance to community housing projects in times of disaster. 
This program allows the communities to immediately embark on house 
construction and site development which adhere to the minimum standards 
and specifications of the design and structural components of disaster-
resilient housing projects, as well as materials. 
 
d)  
Industrial Workers CMP – a CMP modality intended primarily for low-income 
employees of companies engaged in agro-industrial, industrial processing 
zone, tourist, recreational, commercial and other enterprises. 
 
e)  
Site Upgrading/Development CMP – a CMP modality intended to provide site 
development and housing/building construction loans for projects whose 
lands are donated by private or public entities applicable to both on site or 
resettlement projects. 
 
f)  
Mixed-Use CMP – a CMP modality aimed at developing a self-sustaining 
community by having a balanced mix of residential and commercial spaces, 
well-developed infrastructure and recreational amenities along with green and 
open spaces and wellness areas. Under this modality, 9% of the project area 
shall be allotted for green spaces and 1% of project area for friendly facilities 
of Persons with Disabilities (PWD). 
 
h)  
National Home Mortgage Finance Corporation (NHMFC) – A government 
corporation mandated to increase the availability of affordable housing loans 
to finance the Filipino homebuyers on their acquisition of housing units 
through the development and operation of a secondary market for home 
mortgages. 


 
(7)  
Securitization – this refers to the development of the secondary market for 
home mortgages and other housing related receivables, conveyances and financial 
instruments and the development/promotion of and investments in new housing-
related financial instruments and investment vehicles and the capital markets thereof. 
Furthermore, this would also increase and sustain funds available for housing and 
home development. 
 
Department of Human Settlements and Urban Development (DHSUD)- the primary 
national government entity responsible for the management of housing, human 
settlements and urban development including the implementation of the following 
programs: 
 
(8)  
Public Housing – this is a housing program that is owned and/or managed by 
the government for the purpose of providing security of tenure to the underserved 
families including but not limited to the development of proclaimed socialized housing 
sites intended to promote the establishment of new towns, new settlements, and 
urban renewal. 
 
The term "underserved families" refers to those who are disadvantaged in terms of 
access to basic services because of inability to pay or other disparities by reason of 
economic or social status, ethnicity, geographical isolation, and other circumstances. 
 
(9)  
Subsidy – this is a financing assistance scheme intended to enhance the 
affordability of well targeted and most financially incapable segment of the society. It 
is a grant extended to qualified low-income beneficiaries under the National Housing 
Development and Production Financing Program under any of the following alternative 
subsidy schemes: 
a. 
Extension of Interim Shelter Fund to each of the family-beneficiaries which 
they can use to find safe residency and livelihood to support their families, 
pending the completion of their housing units in the relocation sites. 
 
b. 
Payment for upfront cost equivalent to 5% of the project cost (e.g. mortgage 
insurance, titling, etc.); and 


 
c. 
Monthly payment subsidy for the first five years of the loan period in 
accordance with Section 3 (a) of RA 6846 or the Social Housing Support Fund 
Act. The department shall be authorized to establish the qualification and 
income requirements of borrowers who will qualify for the amortization support 
subsidy. 
 
The DHSUD, in coordination with the LGUs and other national government agencies, 
shall be authorized to formulate the criteria and guidelines to select the beneficiaries 
that may qualify for the subsidy program. 
 
(10)  Public Rental Housing – this program involves the extension of fiscal 
assistance of up to a maximum of 50% of the total construction cost for the National 
Government Agencies (NGAs) and Local Government Units (LGUs) that shall 
construct and operate public rental accommodation to eligible low-income 36 families 
and housing safety net for the vulnerable sectors (e.g. senior citizens, person with 
disabilities, etc.). 
 
The DHSUD shall formulate the guidelines in the implementation of public rental 
housing assistance including the adoption of the lease/rental buy-back scheme. 
 
(11)  Survey of proclaimed lands for socialized housing and inventory of government 
idle lands – this involves the survey of all occupied government lands proclaimed by 
the President as suitable for socialized housing and conduct of inventory of 
government lands which have been idle for more than ten (10) years except lands 
owned by the GOCCs and government financial institutions engaged in shelter 
financing as part of its fiduciary obligations to its members and/or taken possession 
of in their ordinary conduct of business. 
 
(12)  Such other program components as may be determined by the DHSUD. 
 
Section 5. Appropriations by the National Government. – The amount of One 
Hundred 
Thirty-Five 
Billion, 
One 
Hundred 
Fourteen Million 
Pesos 
(Php  
135,114,000,000.00) or such amount necessary to carry out the provision of this Act 


is hereby authorized to be appropriated annually through the General Appropriations 
Act over a period of twenty (20) consecutive years commencing from the year 
immediately succeeding the effectivity of this Act or until such time that the total fund 
requirements provided for in this Act shall have been fully released. 
 
A total amount of Two Trillion, Six Hundred Sixty-Seven Billion, Two Hundred Ninety-
Three Million Pesos (P2,667,293,000,000.00) covering the continuing requirement of 
this Act shall be appropriated to the DHSUD and Key Shelter Agencies for the 
implementation of the following component programs of the NHDPF Program: 
  
(1)  
One trillion, seven hundred twenty-two billion, four hundred forty-six million 
pesos (Php 1,722,446,000,000.00) for the implementation of the following programs 
of NHA: 
a. 
Eight 
hundred 
billion 
and 
six 
hundred 
ninety 
million 
pesos  
(Php 800,699,000,000.00) to finance the Resettlement Program under 
Section 4 (1) of this Act; 
 
b.  
Five hundred forty-three billion and four hundred nineteen million pesos  
(Php 543,419,000,000.00) as subsidy for Government Employees Housing 
under (2) of this Act; 
 
c.  
One hundred sixty-four billion and two hundred sixty-five million pesos  
(Php 164,265,000,000.00) for the Settlements Upgrading under Section 4 (3) 
of this Act; 
 
d.  
One hundred one billion and seven million pesos (Php 101,007,000,000.00) 
for the Housing Program for Calamity Victims Section 4 (4) of this Act; and 
 
e.  
Sixty-three billion and fifty-six million pesos (Php 63,056,000,000.00) for the 
Land Banking under Section 4 (5) of this Act. 
 
(2) 
Four 
hundred 
fifty-three 
billion, 
two 
hundred 
million 
pesos  
(Php 453,200,000,000.00) for the implementation of the Community Mortgage 
Program under Section 4 (6) of this Act. 


 
(3)  
Fifty billion (Php 50,000,000,000.00) for the Capitalization of NHMFC under 
Section 4(8) of this Act. 
 
(4)  
Four hundred seventy-six billion, six hundred forty-seven million pesos  
(Php 476,647,000,000.00) for the implementation of the following programs of the 
DHSUD 
a.  
Three hundred sixty-five billion, nine hundred seventy-nine million pesos (Php 
365,979,000,000.00) to finance the Public Housing under Section 4 (8); 
 
b. 
Eighty-nine 
billion, 
one 
hundred 
thirty-one 
million 
pesos  
(Php 89,131,000,000.00) as subsidy under Section 9, broken down as follows: 
b.1  Eighteen billion, five 
hundred 
thirty-one 
million 
pesos  
(Php 18,531,000,000.00) as interim shelter finance assistance for the 
informal settler-families who will be relocated under Section 4 (9a) 
b.2 Sixty-three 
billion, 
seven 
hundred 
ninety-six 
million 
pesos  
(Php 63,796,000,000.00) as upfront subsidy under Section 4 (9b) 
b.3  Six billion, eight hundred four million pesos (Php 6,804,000,000.00) as 
amortization support under Section 4 (9c) 
 
c.  
Twenty billion four hundred fifty-six million pesos (P20,456,000,000.00) to 
finance public rental housing under Section 4(10); and 
 
d.  
One billion, eighty-one million (Php 1,180,000,000.00) to finance survey of 
proclaimed lands and conduct of inventory of government idle lands suitable 
for socialized housing under Section 4 (11). 
 
Section 6. LGU Sources of Funds. – Section 43 of RA 7279 on Socialized Housing 
Tax is hereby amended, to read as follows: 
 
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. The proceeds from the imposition of 


Socialized Housing Tax shall accrue to the special funds of the LGUs, which shall be 
used for the development of socialized housing projects and construction and estate 
management of public rental housing of the LGUs.  
 
Section 7. Implementation of the Securitization, Capital and Secondary 
Mortgage Operations Program. – The NHDP Securitization for the development of 
the secondary market for home mortgages of and other housing related receivables, 
conveyances and financial instruments and the development/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: 
1.  
The NHMFC shall be the sole implementing agency for the NHDP 
securitization; and 
 
2.  
The NHMFC in coordination with the DHSUD, DOF and BSP and other 
concerned agencies and private sector organizations, shall formulate a 
program, the proceeds of which shall accrue to the Centralized Housing Fund. 
 
3.  
The mortgages to be generated as a result of the implementation of the 
component programs of the NHDP Program shall be sold and transferred to 
NHMFC, which shall also serve as asset pool for securitization. 
 
4.  
The NHMFC as the sole agency for the implementation of the NHDPA 
Securitization shall manage the whole securitization process which includes 
the following activities: determining the eligibility criteria for the asset pool; 
defining the preliminary structure of the notes, bonds and or instruments to be 
issued, third parties to be hired; and education/briefing of target investors for 
all the issues. 
 
5.  
The NHMFC and NHDPFA-issued bonds, notes and securities shall be 
exempt from the registration requirements under the Securities Regulation 
Law in order to accelerate the issuance of its housing related 
securities/financial instruments and, thus, more reasonably provide the 
necessary fund for housing developments. 


 
6.  
Transactions by banks involving the purchase and sale of housing bonds, 
debentures and such other similar instruments shall be exempt from the 
twenty percent (20%) final tax on income, documentary stamps tax, gross 
receipts tax and value added tax. 
 
7.  
The investors' yield or income from any socialized housing or economic 
housing-related bond or asset-backed securities (ABS) issued by NHMFC 
directly or through a special purpose entity under the Securitization Act shall 
be exempt from income tax. Such issuances shall enjoy all the tax exemptions 
granted under Republic Act No. 9627 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 and economic housing. 
 
8.  
Bonds purchased by private real estate developers shall be considered as an 
alternative compliance to the balanced housing requirements under section 
18 of RA 7279 as amended by RA 10884, subject to the rules promulgated by 
the Department of Human Settlements and Urban Development. 
 
9.  
The Philippine Guaranty Corporation created pursuant to Executive Order No. 
58 (S. 2018) shall guaranty payment of the balance outstanding and due on 
the guaranteed principal obligation, plus interest and yields thereon up to 
eleven percent (11%) per annum for socialized housing packages, ten percent 
(10%) per annum for low-cost housing packages, nine and a half percent 1 
(9.5%) per annum for medium-cost housing packages and eight and one half 
percent (8.5%) per annum for open housing packages. 
 
Section 8. Capitalization of National Home Mortgage Finance Corporation 
(NHMFC). – The authorized capital stock of the NHMFC is hereby increased from Php 
5,500,000,000.00 to Php 50,000,000,000.00 to expand its leveraging capacity based 
on the volume of mortgage loans being serviced to improve its profitability by reducing 
the average cost of its fund made available for home lending programs. 


 
The capital of the National Home Mortgage Finance Corporation (NHMFC) shall be 
Fifty billion pesos (Php 50,000,000,000.00) to be fully subscribed by the Government 
of the Republic of the Philippines, hereafter referred to as the Government: Provided, 
That the   of the capitalization shall be funded from the General Appropriations Act 
and the remaining 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 9. 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 10. Multi-year Obligational Authority. – The Secretary of the DHSUD and 
Heads of its attached housing agencies, pursuant to the National Housing 
Development, Production and Financing Program, projects and appropriations 
approved by Congress, shall, subject to the provisions of existing laws and regulations 
including those of the Commission on Audit and other such terms and  conditions most 
favorable to the government, be given multi-year obligational authority for housing 
program or project which will take more than one year to complete that requires multi-
year appropriations. 
 
Section 11. 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, the 
Local Government Units, the Land Registration Authority and the Department of 


Human Settlements and Urban Development shall facilitate the release of the required 
housing-related permits, licenses, certifications and tax exemptions/rulings in 
accordance with Republic Act 11032 or an Act Promoting Ease of Doing Business 
and Efficient Delivery of Government Services Amending for the Purpose Republic 
Act 9485 Otherwise Known as the Anti-Red Tape Act of 2007 and for Other Purposes 
and Executive Order No. 45 (S. 2001). 
 
In case the responsible officers of the agencies concerned fail or refuse to dispose of 
the application within the periods prescribed under RA 11032, the applicable 
administrative and criminal liability as stated in Section 22 of RA 11032 shall be 
imposed. 
 
All the incentives enumerated under Section 20 of Republic Act 10884 or an Act 
Strengthening the Balanced Housing Development Program, amending for the 
Purpose Republic Act No. 7279, as Amended, Otherwise known as the Urban 
Development and Housing Act of 1992 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 
the NHDPFA shall be treated as one of the manners of compliance to the balanced 
housing requirements subject to the conditions set forth under RA 10884. 
 
Section 12. Collection Efficiency. – In order to improve collection efficiency, the 
NHA, SHFC and NHMFC shall have authority to foreclose mortgages, and/or evict 
beneficiaries in accordance with existing laws. 
 
Section 13. Implementing Rules and Regulations. – The DHSUD shall promulgate 
rules and regulations necessary for the implementation of this Act. 
 
Section 14. Repealing Clause. – All laws, decrees, executive orders, proclamations, 
rules and regulations and the issuances, or parts thereof which are inconsistent with 
the provisions of this Act, are hereby repealed, amended or modified accordingly. 
 


Section 15. Penal Clause. – Any person who violates any provision of this Act shall 
be imposed the applicable administrative and criminal liability as stated in Section 22 
of RA 11032 or the Ease of Doing Business and Government Service Delivery Act of 
2018. 
 
Section 16. Separability Clause. – If for any reason, 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 17. Effectivity Clause. – This Act shall take effect fifteen (15) days after its 
complete publication in at least two (2) national newspapers of general circulation. 
 
Approved,