Republic of the Philippines 
House of Representatives 
Batasan Hills, Quezon City 
Eighteenth Congress 
Third Regular Session 
HOUSE BILL NO. ________ 
Introduced by: Representative Florencio Gabriel G. Noel 
EXPLANATORY NOTE 
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. It shall 
also promote adequate employment opportunities to such citizens. In the implementation of such 
program the State shall respect the rights of small property owners.” Furthermore it says that 
“Urban or rural poor dwellers shall not be evicted nor their dwellings demolished, except in 
accordance with law and in a just and humane manner. No resettlement of urban or rural dwellers 
shall be undertaken without adequate consultation with them and the communities where they are 
to be relocated.” 
The President made a call during his fifth State of the Nation Address urging for housing 
measures which would “enable all Filipinos—regardless of social status—to live in decent homes.” 
According to the Subdivision and Housing Developers Association (SHDA), an average of 
345, 941 housing units will be needed every year and the housing need can reach up to 12.5 million 
housing units by 2030. The projected need for 12.5 million housing units by 2030 assumes that we 
can produce 200,000 units per year against the demand of 345, 941 housing units. This is a problem 
as our average housing production for the past 31 years has only been 128, 407 housing units. 
Adding to this problem is the damage cause by calamities. In 2013, the super typhoon Yolanda 
displaced more than 4.4 million Filipinos or 1,143,332 families. 
The proposed measure seeks to address this challenge by pursuing a large-scale program 
that not only addresses the housing needs of the population but by giving them livelihood as well. 
This bill also aims to bolster the implementation of the major components of the National 
Development and Production housing program, that addresses the plight of informal settlers, the 
September 2, 2021
8:45 am
10127


displacement cause by calamities, the upgrading of settlements, giving decent and affordable 
housing to government employees and many more, through continuous funding. 
In view of the foregoing, the immediate passage of the bill is sought. 
FLORENCIO GABRIEL G. NOEL 
  An Waray Party-list Representative 


Republic of the Philippines
House of Representatives
Batasan Hills, Quezon City 
Eighteenth Congress 
Third Regular Session 
HOUSE BILL NO. ________ 
Introduced by: Representative Florencio Gabriel G. Noel 
AN ACT 
PROVIDING FOR A NATIONAL HOUSING DEVELOPMENT, PRODUCTION 
AND FINANCING PROGRAM, REGULARIZING ITS APPROPRIATION FOR ITS 
IMPLEMENTATION 
Section 1. Title. — This Act shall be known as the "National Housing Development, 
Production and Financing (NHDPF) Act."  
Sec. 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;
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
10127


 
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. 
 
Sec. 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 government 
National Housing Development and Production Financing Program. 
 
Sec. 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 to be affected by their projects and their location to the appropriate housing 
agencies at least two years prior to its implementation and shall incorporate in their 
respective project costs the amount needed for the 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 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 onsite 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). 
 
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 R.A. No. 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 Local Government Units (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 LGUs that shall construct and operate public rental 
accommodation to eligible low-income 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. 


Sec. 5. Appropriations by the National Government- . The amount of One Hundred Thirty-
Five billion, One Hundred Fourteen Million Pesos (P135,114,000,000.00) 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 
(Pl,722,446,000,000.00) for the implementation of the following programs of NHA: 
 
a. Eight hundred billion and six hundred ninety million pesos (P800,699,000,000.00) to 
finance the Resettlement Program under Section 4(1) of this Act;  
 
b. Five hundred forty-three billion and four hundred nineteen million pesos 
(P543,419,000,000.00) as subsidy for Government Employees Housing under 4(2) of 
this Act; 
 
c. One hundred sixty-four billion and two hundred sixty-five million pesos 
(P164,265,000,000.00) for the Settlements Upgrading under Section 4(3) of this Act;  
 
d. One hundred one billion and seven million pesos (P101,007,000,000.00) for the 
Housing Program for Calamity Victims Section 4(4) of this Act; and  
 
e. Sixty-three billion and fifty-six million pesos (P63,056,000,000.00) for the Land 
Banking under Section 4(5) of this Act. 
 
2. Four hundred fifty-three billion, two hundred million pesos (P453,200,000,000.00) for the 
implementation of the Community Mortgage Program under Section 4(6) of this Act.  
 
3. Fifty billion (P50,000,000,000.00) for the Capitalization of NHMFC under Section 4(8) of 
this Act. 
 
4. Four 
hundred 
seventy-six 
billion, 
six 
hundred 
forty-seven 
million 
pesos 
(P476,647,000,000.00) for the implementation of the following programs of the DHSUD:  
 
a. Three hundred sixty-five billion, nine hundred seventy-nine million pesos 
(P365,979,000,000.00) to finance the Public Housing under Section 4 (8);  
 
b.  Eighty-nine billion, one hundred thirty-one million pesos (P89,131,000,000.00) as 
subsidy under Section 9, broken down as follows:  
 


i. 
 Eighteen 
billion, 
five 
hundred 
thirty-one 
million 
pesos 
(P18,531,000,000.00) as interim shelter finance assistance for the informal 
settler-families who will be relocated under Section 4 (9a)  
 
ii. 
Sixty-three 
billion, 
seven 
hundred 
ninety-six 
million 
pesos 
(P63,796,000,000.00) as upfront subsidy under Section 4(9b)  
 
iii. 
Six billion, eight hundred four million pesos (P6,804,000,000.00) 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 (Pl,081,000,000.00) to finance survey of proclaimed 
lands and conduct of inventory of government idle lands suitable for socialized housing 
under Section 4 (11). 
 
 
Sec 6. LGU Sources of Funds. - Section 43 of R.A. No 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.  
 
Sec. 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. 
 
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 R.A. No. 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 (9.5%) per annum for medium-cost housing 
packages and eight and one half percent (8.5%) per annum for open housing packages. 
 
Sec. 8. Capitalization of National Home Mortgage Finance Corporation (NHMFC). - 
The authorized capital stock of the NHMFC is hereby increased from P5,500,000,000.00 pesos to 
P50,000,000,000.00 pesos 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 (P50,000,000,000.00), to be fully subscribed by the Government of the Republic of 
the Philippines, hereafter referred to as the Government: Provided, That the P25,000,000,000.00 
of the capitalization shall be funded from the General Appropriations Act and the remaining 


P25,000,000,000.00 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. 
 
Sec. 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.  
 
Sec. 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.  
 
Sec. 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 No. 
11032 or an Act Promoting Ease of Doing Business and Efficient Delivery of Government 
Services Amending for the Purpose Republic Act No. 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 R.A. No. 11032, the applicable administrative and 
criminal liability as stated in Section 22 of R.A. No 11032 shall be imposed.  
 
All the incentives enumerated under Section 20 of Republic Act No. 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 R.A. No. 10884.  
 


Sec. 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.  
 
Sec. 13. Implementing Rules and Regulations. - The DHSUD promulgate rules and 
regulations necessary for the implementation of this Act.  
 
Sec. 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.  
 
Sec. 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 R.A. No. 11032 or 
the Ease of Doing Business and Government Service Delivery Act of 2018.  
 
Sec. 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.  
 
Sec.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,