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FOURTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILPPINES 
First Regular Session 
S I  
1 .  
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Introduced by Senator Biazon 
EXPLANATORY NOTE 
This measure seeks to establish a socialized and low-cost housing loan restructuring 
program. It is motivated by the primordial need for government to provide fiesh hope to those 
who have failed to avail of the provisions of RA 8501 but wish to keep their homes and pay their 
loans at rates affordable and in keeping with their current economic status. 
From the perspective of creditors, borrowers must stick to the agreement originally 
drafted and signed by both parties when the loan was availed. However, such scenario at this 
time is far from realistic, given the prevailing socio-economic conditions of the country. It is 
perhaps best purely to look at this problem from a more humanitarian and compassionate point 
of view than from a purely economic standpoint. 
A country's laws, policies, rules, and regulations are created not to make life a rigid line 
for its citizens to toe, but to improve the quality of life for its people. As such, this bill responds 
to such a need from the many borrowers and their families affected by a crisis that has already 
inflicted much suffering on their lives. Apart from the previously stated premises, this measure 
also seeks to rescue the ailing National Shelter Program. 
Given the foregoing, passage of this bill is earnestly urged. 
RODOLFO G@IAZON 
Senator 


FOURTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILPPINES 
1 
First Regular Session 
1 
S E N A T E  
S.B.No. 8T 
Introduced by Senator Biazon 
AN ACT 
RESTRUCTURING 
PROGRAM, 
PROVIDING 
THE 
MECHANISMS 
THEREFOR, AND FOR OTHER PURPOSES 
TO ESTABLISH A SOCIALIZED AND LOW-COST HOUSING LOAN 
Be it enacted by the Senate and the House ofRepresentatives of the Philippines in 
Congress assembled: 
SECTION 1. Title. - This Act shall be known as the "Socialized and Low-Cost 
Housing Loan Restructuring Act." 
Sec. 2. Restructuring of Delinquent Socialized and Low-Cost Housing Loan 
Accounts. - In keeping with the constitutional mandate for the State to undertake a 
continuing program of urban land reform and housing that will make available at 
affordable cost decent housing and basic services, there is hereby established a Socialized 
and Low-Cost Housing Loan Restructuring Program. Under this program: 
a) For three (3) years from the effectivity of this Act, all socialized housing loan 
or loans amounting to Two Hundred Twenty Five Thousand Pesos 
(P225,OOO.OO) and below, all low-cost housing loans or loans amounting to 
over Two Hundred Twenty five Thousand Pesos (P225,OOO.OO) but not 
exceeding Five Hundred Thousand Pesos (PSO0,OOO.OO) with any of the 
government financing institutions and agencies involved I the National Shelter 
Program (NSP) including but not limited to, the Government Service 
Insurance System (GSIS), Social Security System (SSS), Home Development 
Mutual Fund (HDMF), 
National Home Mortgage Finance Corporation 
("MFC), 
Home Guaranty Corporation (HGC), and the National Housing 
Authority ("A) 
that have at least a six-month unpaid monthly amortization, 
are hereby declared covered by the benefits of this restructuring program 
notwithstanding that the same account has availed of the benefits of a previous 
restructuring or condonation program and even if the annual total family 
income of the borrower-applicant exceeds Three Hundred Thousand Pesos 
(P300,OOO.OO); 
b) An application for restructuring shall only be charged under previous 
restructuring or condonation programs and no down payment shall be required 
for a borrower to apply for the benefits of this restructuring program; 
c) All penalties, surcharges and fifty percent (50%) of the interest on the housing 
loans of borrowers shall be condoned upon approval of the restructuring 
application under this Act; 
d) A borrower-applicant may be allowed to use the total accumulated value of 
hidher membership contribution or saving with the GSIS, SSS, or HDMF to 
pay in full or in his part hidher housing loan; 


e) The term of a housing loan account being applied for restructuring may be extended 
for a period longer than its original term in order to lower the amount of the monthly 
amortization to a maximum of One Thousand Five Hundred Pesos (P1,500.00) for a 
period of three (3) years from the approval of the application, after which, the 
monthly amortization will revert hack to its original amount. The unserviccd portion 
ensuing from the three-year lowered monthly amortization shall he paid on the last 
year of the term of the housing loan along with the last monthly amortization. In the 
event, that the borrower fails to pay an amortization during the tree-year period, 
helshe shall voluntarily surrender hisher property without need of judicial 
proceedings; 
f) In case of incapacity of a borrower, hidher legal heirs and successors-in-interest may 
assume payment of hidher outstanding housing loan; and 
g) Loan restructuring under this Act may he availed of only once, 
All corresponding penalties and surcharges which NHMFC may have to pay its funders 
as a result of the implementation of this Act shall he automatically adjusted and condoned. 
Sec. 3. Exclusion from Coverage. - In no instance shall the following housing loan 
accounts he covered by this Act: 
a) Any account without a single payment since take out; 
b) An account whose housing unit has been abandoned by the borrower-owner for more 
than two (2) years; 
c) An account whose housing unit has remained unoccupied far a period of at least two 
(2) years; and 
d) An account that has been foreclosed, the title of which has already been 
consolidatedtransferred in the name of the government financing institution (GFI). 
Sec. 4, Remedies Against Delinquent Accounts. - The government financing institutions 
shall continue to exercise their fight to foreclose properties covered by accounts excluded in sub- 
paragraphs (a) through (d) under Section 3 hereof or of delinquent accounts or borrowers who 
shall fail to avail of the benefits of this Act and that such foreclosure proceedings shall be 
exempt from publication and from the payment of filing fees, capital gains tax and documentary 
stamp tax: Provided, That in lieu of publication, posting date and place of auction shall be made 
in at least three (3) conspicuous public places similar to that provided for under Act 3135: 
Providedhrther, That a notice to the borrower at his last known address shall likewise be made. 
Sec. 5. Incentive for Prompt Payment ofMonthly Amortization. - Upon the effectivity of 
this Act, all accounts whose monthly amortizations are paid on time shall be entitled to a 
reasonable discount on loan interest. 
Sec. 6. Implementing Rules and Regulations. - There is hereby created an inter-agency 
committee headed by the Hoiisjng and Urban Development Coordinating Council (HUDCC) and 
composed of all the government institutions and agencies enumerated in Section 2 hereof, tasked 
to promulgate the implementing rules and regulations within sixty (60) days from the effectivity 
of this Act. 
Sec. 7. Congressional Oversight Committee. - There is hereby created a Congressional 
Oversight Committee composed of the Chairman of the House Committee on Housing and 
Urban Development and the Chairman of the Senate Committee on Urban Planning, Housing 
and Resettlement, five (5) members of the Senate and six (6) members of the House of 
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Representatives. The members from the Senate shall be appointed by the Senate President from 
among the members of the Senate Committee on Urban Planning, Housing and Resettlement 
based on the proportional representation of the parties or coalitions therein. The members from 
the House of Representative shall be appointed by the Speaker from among the members of the 
House Committee on Housing and Urban Development based on the proportional representation 
of the parties or coalitions therein. 
The Oversight Committee shall review and approve the Implementing Rules and 
Regulations. It shall also review the performance of the government financing institutions and 
agencies involved in the implementation of this Act. 
Sec. 8. Repealing Clause. - All laws, executive orders, rules or regulations, or any part 
thereof, inconsistent with any provisions of this Act are hereby repealed or modified accordingly. 
Sec. 9. Effectivity Clause. - This Act shall take effect fifteen (15) days after its complete 
publication in the Official Gazette or in at least (2) national newspapers of general circulation. 
Approved, 
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