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. 
EXPLANATORY NOTE 
Shelter is a basic human need. It is crucial for safety and protection from weather, 
sicknesses, and even hazards and conflicts. 
In recognition of this need, Article XIII, Section 9 of the 1987 Constitution states that 
"the State shall, by law, and for the common good, undertake, in cooperation with the 
public 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 resettlements areas." 
However, DHSUD reports a housing backlog of 6.5 million units, from 2017 to 2022, 
which may eventually grow to 22 million units by 2040 if unaddressed. The 
administration of President Ferdinand Marcos Jr. initiated the Pambansang Pabahay 
para sa Pilipino Program (4PH) through the DHSUD which establishes housing 
programs in partnership with local government units and the private sector, and 
implements an interest subsidy on mortgage payment of housing beneficiaries.  
This proposed measure institutionalizes the program for establishing sustainable 
funding and clear set of guidelines for its successful implementation. 
In view of the foregoing, the passage of this bill is earnestly sought. 
LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR. 
May 23, 2023
5:18 pm
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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. 
AN ACT 
INSTITUTIONALIZING THE PAMBANSANG PABAHAY PARA SA PILIPINO 
PROGRAM 
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 “Pambansang Pabahay 
para sa Pilipino Program Act of 2023”.  
SEC. 2. Declaration of Policy. – It is hereby declared a policy of the state to pursue 
a continuing program of housing and urban development which shall make available 
at affordable cost, decent housing and basic services especially the underprivileged 
and homeless citizens by establishing a housing interest subsidy program with 
particular focus on assisting informal settler families (ISFs) acquire their own decent 
housing. 
SEC. 3. The Pambansang Pabahay para sa Pilipino Program. – The Department 
of Human Settlements and Urban Development (DHSUD) shall implement the 
Pambansang Pabahay para sa Pilipino Program, hereinafter referred as the 
"Program", which shall have the following objectives: 
(a)
Develop one million housing units every year;
(b)
Prioritize the lowest 30% income decile of the population and low wage
earners as primary beneficiaries of the Program;
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(c) 
Pursue innovative strategies to make housing finance accessible and housing 
units affordable to the target beneficiaries, through but not limited to the 
following: 
(1)  Allocate government funds for the payment of housing interest support 
to lower the monthly interest rate payment of qualified program 
beneficiaries; 
(2)  Utilize vacant, idle, blighted and/or under-utilized government and 
private-owned lands for housing and mixed-use development; 
(3)  Tap government financing institutions (GFls) and private banks to 
provide development loans & end-user financing; and 
(4)  Promote varied forms of modalities in implementing housing and mixed-
use development. 
(d)  Capacitate and support the local government units (LGUs) as one of the main 
project proponents in implementing housing projects; and 
(e) 
Encourage and incentivize the private sector to participate in the program 
implementation. 
 
SEC. 4. Program Components. – 
(a) Site Identification. – As the main project proponents, the LGUs shall, in 
coordination with the DHSUD, be responsible for project site identification and 
the development of their respective residential project/s. LGUs may engage 
and/or enter into a joint venture with government entities or private developers 
or builders, to undertake and construct housing projects using DHSUD-guided 
housing parameters. 
The following lands may be used for the housing projects: 
(1)  LGU-owned property. The property identified for the project should have a 
"clean" or a "near-clean" title. For this purpose, a "clean title" shall be 
defined as one that is registered in the name of the LGU and is entirely free 
of any lien or encumbrance. On the other hand, a "near-clean title" shall be 
defined as one that is affected by a lien or encumbrance including any 
adverse claim or interest or any issue, complication or obstacle that can be 
resolved within the timeframe needed for its utilization and the completion 
of the project. 


 
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(2)  NGA-owned property. LGUs who intend to use the properties of National 
Government Agencies (NGAs) for their housing projects shall be mainly 
responsible for securing the issuance of authority to use such land and/or 
the disposal/transfer thereof to them from the NGAs concerned. 
(3)  Privately-owned property. Private landowners of blighted areas or land 
occupied by ISFs are encouraged to participate in the 4PH Program by (a) 
donating their land, or (b) selling their properties at a reduced/discounted 
price. Subject to the cap on the proposed selling price of the planned 
housing units, the LGUs may consider purchasing such land or entering 
into a joint venture agreement with the owner, subject to compliance with 
appropriate government laws and regulations. 
(b)  Housing Design. – LGUs shall be responsible for preparing the parameters of 
their proposed housing projects, in accordance with existing government 
prescribed laws and standards, and the following DHSUD design and proposed 
price ceiling parameters for projects to be accredited under the Program. 
(c)  Housing Construction. – LGUs shall procure or select qualified developers and/or 
contractors to construct the proposed housing project/s in accordance with 
applicable government rules and regulations. Notwithstanding the entry of new 
developers and contractors, the LGUs are encouraged to invite housing 
developers who are known to have good standing and have already undertaken 
projects within their areas of jurisdiction and need to develop corresponding 
socialized housing projects in compliance with the balanced housing 
development program requirement. 
(d)  Financing for the Housing Project. – The Pag-IBIG Fund (HDMF), as well as 
other GFIs and private banks, shall make their funds available for the LGUs' 
housing projects through their respective developmental loan programs. They 
shall also participate by providing end-user financing to homebuyers; 
(e)  Beneficiaries. – LGUs shall set the eligibility criteria for, and identify, the project 
beneficiaries. In formulating such criteria, they shall coordinate with GFIs and 
private banks that will provide end-user financing to ensure alignment of all their 
selection criteria particularly as regards the credit- worthiness and amortization 
capacity of potential buyer-beneficiaries. 
Beneficiaries must be capable of and committed to paying the monthly housing 
loan amortization over the 30-year loan term, to the GFIs or private banks. The 


 
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above notwithstanding, LGUs and their development partners are not prohibited 
from developing housing projects that incorporate or provide cross subsidies 
between different income classes so as to benefit more ISFs and lower- bracket 
wage earners. 
(f)  
Subsidy on amortization and interest. – The DHSUD shall, directly or through its 
attached corporations, provide amortization support payable to the end-user 
finance providers for the account of the buyer-beneficiaries' units, using funds 
that will be made available through the General Appropriations Act (GAA), and/or 
other identified funding sources. LGUs are also encouraged to provide monthly 
amortization support to buyer- beneficiaries of the units, if needed to enable them 
to meet their monthly amortization obligations. 
 
SEC. 5. Roles and Responsibilities. – The implementing agencies shall, at the 
minimum, undertake the following roles, functions, and responsibilities: 
(a)  Department of Human Settlements and Urban Development (DHSUD) 
(1)  Act as the overall initiator, coordinator, and facilitator, of the Program; 
(2)  Facilitate the provision of funds through the GAA, Key Shelter Agencies 
(KSAs), GFIs and private banks, for use as: (a) development loans, (b) interest 
support for the program's project beneficiaries, (c) end-user financing, (d) 
guarantee financing, and (e) purchase of loan accounts; 
(3)  Oversee and monitor the implementation of the Program, including the project 
implementation and performance of all participants; 
(4)  Provide parameters/specifications, extend support and technical assistance to 
LGUs, developers, and other program partners including facilitating the 
issuance of Development Permits and Licenses to Sell within its areas of 
responsibilities; and 
(5)  Perform such other roles, functions and acts which it may deem proper and 
necessary for the effective and full implementation of the Program; 
 
(b)  Local Government Units (LGUs) 
(1)  Act as the main proponent and major player in the planning, implementation 
and management of their respective housing projects; 
(2)  Have the primary responsibility of identifying lands for potential project 
locations as well as making it available for their proposed housing projects; 


 
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(3)  Determine and prepare the project concept to be used for their housing 
projects; 
(4)  Determine the implementation modalities for each of their envisioned housing 
projects, including which project to undertake on its own, through joint venture, 
or using other options; 
(5)  Identify the project proponent that would undertake the development of each 
project, whether solely or in joint venture with third parties; 
(6)  Identify, select and enter into agreements with qualified developers and/or 
contractors to implement their proposed housing projects, in accordance with 
applicable government laws, rules and regulations; 
(7)  Provide support to their priority housing projects and beneficiaries, either 
through monthly amortization support and/or other commitments or 
forms/modes of assistance, such as land donation and site development, to 
make the units affordable to target buyer-beneficiaries; 
(8)  Issue the appropriate resolutions and/or ordinances needed for the proposed 
projects, including the allocation of land, funds and other necessary support 
for the successful implementation of the projects; 
(9)  Establish an office and provide qualified personnel to implement their housing 
program; 
(10) Conduct social preparation activities for target beneficiaries in coordination 
with the DHSUD and its pertinent KSAs; 
(11) Facilitate the expeditious issuance of local permits and clearances for their 
projects; 
(12) Take charge, to the extent possible and applicable, of all documentation 
necessary for the full implementation of their housing program; 
(13) Undertake estate/property management responsibilities for their projects and 
ensure the availability of funds for the purpose; 
 
(c)  National Housing Authority and Social Housing Finance Corporation 
(1)  As landowners, enter into appropriate partnership agreements with the 
concerned partner LGUs; 
(2)  As a developer and/or project manager, implement the project/s in 
coordination with LGUs and other entities in accordance with the roles and 
responsibilities as may be agreed upon by the parties involved; 


 
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(3)  Provide support to LGUs in social preparation, project development, and such 
other assistance needed for the successful implementation of the LGUs' 
housing program and projects under the Program; 
 
(d)  Home Development Mutual Fund (HDMF), participating Government Financial 
Institutions (GFIs) and Private Banks 
(1)  Establish special lending programs with simplified, streamlined and expedited 
guidelines, requirements, and processes, and allocate exclusive funds for the 
Program, such as those needed for developmental loans to developers, and 
end-user financing to project buyer-beneficiaries to allow the latter to purchase 
their housing units; 
 
(e)  National Home Mortgage Finance Corporation (NHMFC) 
(1)  Provide liquidity to GFIs and private banks to ensure the sustainability of the 
Program by purchasing eligible Real Estate Mortgage (REM) accounts from 
them, securitizing such loan portfolios, and issuing asset-backed securities to 
attract more funds for housing. 
 
SEC. 6. Annual Report of the Program. – The DHSUD shall annually publish a full 
report of the Program covering the implementation of the previous fiscal year. The said 
report shall include financial disclosures, number of clients or beneficiaries served, 
and recommendations to the President and to both chambers of Congress on how to 
further enhance the program. 
 
SEC. 7. Program Transparency. – The DSHUD shall regularly and timely post and 
update on its website a report of financial disclosures and information about 
beneficiaries based on geographical area, social, economic, and cultural 
circumstances. 
 
SEC. 8. Joint Congressional Oversight Committee. – Upon effectivity of this Act, a 
Congressional Oversight Committee, hereafter referred to as the Pambansang 
Pabahay Oversight Committee is hereby constituted. This Committee shall set the 
overall framework to review the implementation of this Act. It shall likewise determine 


 
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inherent gaps in the law and recommend necessary remedial legislation or executive 
measures. 
 
SEC. 9. Appropriation. – The amount necessary to implement this Act shall be 
included in the annual General Appropriations Act. 
 
SEC. 10. Separability Clause. – Any portion or provision of this Act that is declared 
unconstitutional shall not have the effect of nullifying other portions or provisions 
hereof as long as such remaining portions can still subsist and be given effect in their 
entirety. 
 
SEC. 11. Repealing Clause. – All laws, ordinances, rules, regulations, other 
issuances or parts thereof, which are inconsistent with this Act, are hereby repealed 
or modified accordingly. 
 
SEC. 12. Effectivity. – This Act shall take effect fifteen (15) days after its publication 
in the Official Gazette or in a newspaper of general circulation. 
 
Approved,