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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session
House Bit no. 1738

Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.

EXPLANATORY NOTE

The humble intent of this bill is to protect children of incarcerated parents from all
forms of neglect and development problems, as the State must defend the rights of
children and treat humanely all persons deprived of their liberty. It proposes
placement and guardianship options for the minor children of the accused, specifying
the persons the minor children are allowed to be placed under the care of. The bill
also proposes child-friendly visitation programs for solo parents and children and
establishment of special visitation rooms for this purpose.

Solo parents, who are for some reason incarcerated, are forced to leave their
children behind. This hinders the growth and development of the otherwise innocent
child. The bill aims to establish mechanisms in order to help solo parents raise their
children regardless of their circumstance.

The approval of this bill is earnestly sought.

LUIS RAYM 4 \Y” F. VILLAFUERTE, JR.


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

1738
HOUSE BILL NO.

Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.

AN ACT
INSTITUTING A COMPREHENSIVE HOUSING PROGRAM FOR PUBLIC

SCHOOL TEACHERS, PROVIDING FUNDS THEREFOR AND FOR OTHER
PURPOSES:

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 'Pabahay Para sa Guro

Program of 2018"

SECTION 2. Declaration of Policy. — It is hereby declared the policy of the State to.
uplift the living conditions of teachers and promote a housing program to enable them
to acquire their own housing units. To this end, the State affirms its commitment to
strength, promote, and support the component activities of housing production and
finance to order to enable teachers to acquire decent housing and basic services at
the lowest affordable price

ECTION 3. Coverage. — The Comprehensive Housing Program shall cover the
teachers of the Department of Education (DepEd) with a permanent status.
Likewise, the provision of free on-site living quarters shall apply to public school
teachers who are teaching in public schools far away from their respective homes and
families and are forced, or have opted, to live in said areas where the school they teach
atare located. There shall be no distinction if the aforementioned public school teachers
are new hires or transferees.


SECTION 4. Role of Government Housing and Financing Agencies. — To ensure the
accomplishment of the objectives under this program, the hereunder mentioned
housing agencies shall perform the following in addition to their respective existing
powers and functions:

a. The National Housing Authority shall undertake special housing projects for
teachers. In addition, it may also provide technical and other forms of assistance
to private developers in the development of housing projects;

b. The National Home Mortgage Finance Corporation shall provide the mortgage
market for teacher's housing through the purchase of teacher's housing
mortgages and/or issuance of securities. It shall administer the funds provided
for housing ioans and deveioper assistance under this Act as well as iongterm
funds provided by the Government Service Insurance System and the
Home Development Mutual Fund for teacher's housing;

c, The Home Guaranty Corporation shall design an appropriate guarantee
scheme to encourage financial institutions and private developers to undenake
mass housing production for teachers. It shall administer the
Guarantee System Fund as provided for under this Act;

d. The Government Service Insurance System and the Home Development
Mutual Fund shall be the primary provider of funds for long-term housing
mortgages.

SECTION 5. Role of the Department of Education. — The Department of Education
shall undertake the implementation of the program among its teachers and shall ensure
collection of amortization payments through a salary deduction scheme. In line with
this, the DepEd shall
a. Create a Teacher's Housing Secretariat which shall issue and collect the
necessary documentation, receive and process application, and transfer the
same to the appropriate housing agencies;
b. Deduct amortization from their teachers on a monthly basis and remit the same
to the appropriate agency.

SECTION 6. Program Financing Scheme. — In the implementation of the Teacher's
Housing Program, the following shall consist the financing scheme:
a. Housing Loans for Teachers which shall be used for any of the following purpose:
a. Purchase of a lot and construction of a residential unit thereon;
b. Purchase of any of the following.
i. Brand new or old existing units; ji. Housing properties mortgaged
with any institution; iii, Housing assets being disposed of through
public bidding or negotiated sale;


c. Purchase of a fully developed lot within a residential area;
d. Construction of completion of a residential unit on a lot owned by the
beneficiary;
e. Home improvement or any alteration in an existing residential unit;
f. Restructuring of existing housing loan in any government housing of
financial institution, provided that the account is updated.
Loans provided under this program shall be computed based on a net
take home pay which shall not be lower than Three Thousand Pesos
(Php 3,000.00). The interest rate on the loan shall not be more than ten
percent (10%) per annum and shall be fixed for the entire term of the
loan,
Provided, that if the borrower defaults on his amortization payment for
reasons of his own doing, the financing agency may subject the borrower
to a regular interest rate for the periods that he is in default.
To increase the benefits provided to teachers, loans under this scheme
shall not be subject to such charges, fees or premiums except minimum
processing fees to be charged by the appropriate agencies.
Loans provided for teachers earning less than Twelve Thousand Pesos
(PhP 12,000.00) per month shall not be less than sixty percent (60%) of
ail available funds allotted for this purpose. At ieast forty-five percent
(45%) of the year appropriation for the Program shall be for Housing
Loans.
b. Developer Assistance Fund. Proponents or developers of housing projects
exclusively for teachers and with a selling cost not exceeding One Hundred
Twenty Thousand Pesos (PhP 120,000.00) per house and/or lot package which
shall be available exclusively for teachers, may avail of a financing loan not
exceeding eighty percent (80%) of the entire project cost. The National Home
Mortgage and Finance Corporation, in coordination with the HUDCC, shall issue
the appropriate guidelines for this purpose,
At least fifteen percent (15%) of the early appropriation for the program shall be
for developer financing: Provided, that the unused funds for developer financing
shall be utilized for Housing Loans.
Guarantee System Fund. There is hereby created a quarantee system fund for
Teacher's Housing Loans not exceeding One Hundred Fifty Thousand Pesos
(PhP 150,000.00) with an interest rate of not exceeding twelve percent (12%)
Per annum as originate by the funding agencies or their accredited financial
institutions. Such loans shall be assigned to the Fund immediately after
origination for which the Fund shall issue promissory notes.

9


At least forty percent (40%) of the yearly appropriation for the Program shall be
for the loan guarantee. The Home Guarantee Corporation shall undertake the
guarantee system under this act and shalll act as the administrator and trustee
of the fund, The HGC shall issue the appropriate guidelines within one

(1) year from the approval of this Act.

SECTION 7. Fiscal Incentive for Private Sector participation in Teacher's Housing. —
Private sector developers who participate in the development of teacher's housing
shall be entitled to the following fiscal incentives:

a. Exemption from income taxes for housing projects exclusively dedicated for

teachers; b. Exemption from capital gains tax on housing projects exclusively

dedicated for teachers,

Exemption from documentary stamp tax for all project related documentation;

4. Exemption from value-added tax for the project concemed,

e. Exemption from transfer taxes for both raw and completed projects; and

*. Exemption from donor's tax for lands certified by the local government units to

have been donated to teacher's housing purposes.

Provided, that upon appiication for exemption, the housing development pian shail
have already been approved by the appropriate government agencies concemed+
Provided, further, that all the savings acquired by virtue of this provision shall be used
to minimize the cost of the housing units subject to the implementing guidelines to be
issued by the Housing and Urban Development Coordinating Council
The Department of Finance, in consultation with the Housing and Urban Development
Coordinating Council, shall prepare the necessary implementing guidelines for the
proper implementation of the tax exemption mentioned in this section within one (1)
after the approval of this Act.

SECTION 8. Provision of Free On-Site Living Qui — The Department of
Education shall, free of charge, provide livable and human living quarters at the nearest
possible location to the public schools where the covered public school teachers in
Section 9 of this Act are teaching

Existing benefits and allowances already granted by law, rules, regulations and
uancas to the covered p in this Act shall not be di
withdrawn or removed.

SECTION 9. Implementing Rules and Regulations. — The DepEd, in consultation with
the Department of Public Works and Highways (DPWH), Department of the Interior
and Local Government (DILG), the Department of Budget and Management (DBM),
as well as national agencies mentioned in Section 4 of this Act, shall formulate and


promulgate the necessary implementing rules and regulations for the successful
implementation of this Act not later than ninety (90) days from the effectivity of this Act.

SECTION 10. Funding Source. — The Government Service Insurance System and the
Home Development Mutual Fund shall contribute a total of Two Billion Pesos (PhP
2,000,000,000.00) for the initial implementation of the Program. Thereafter, each
institution shail allocate at least ten percent (10%) of their annual investibie funds for
long-term teacher's housing mortgages and shall be made available to the National
Home Mortgage and Finance Corporation under terms which ensure their repayment.
The National Government shall contribute One Billion Pesos (PhP 1,000,000,000.00)
annually for the continuous implementation of the Program.

SECTION 11. Appropriations. — The amount necessary to carry out the purposes of
this Act shall be included in the General Appropriations Act of the year following its
enactment into law and every year thereafter.

SECTION 12. Separability Clause. — Should any provision herein be declared

unconstitutional, the same shall not affect the validity of the other provisions of this

Act.

SECTION 13. Repealing Clause. — All laws, decrees, orders, rules, and regulations
or other issuances or parts inconsistent with the provisions of this Act are hereby
repealed, amended, or modified accordingly.

SECTION 14. Effectivity Clause. — This Act shall take effect in fifteen (15) days after
publication in the Official Gazette or in one (1) newspaper of general circulation in the
Philippines.

Approved,