Republic of the Philippines 
House of Representatives 
Quezon City, Metro Manila 
NINETEENTH CONGRESS 
First Regular Session 
House Bill No. _______ 
INTRODUCED BY REP. PM VARGAS 
AN ACT 
ESTABLISHING A RENTAL HOUSING SUBSIDY PROGRAM FOR 
INFORMAL SETTLER FAMILIES AND APPROPRIATING FUNDS 
THEREFOR 
EXPLANATORY NOTE 
Well-designed housing programs create tremendous potential for 
employment creation, spurring investments in newly-created communities 
and of course, providing decent housing which every household dream of 
having.  These programs can also help relocate families who will be affected 
by government projects. 
This bill seeks to establish a Rental Housing Subsidy Program, which 
shall serve as a housing and social protection program by enabling Informal 
Settler Families (ISFs) to access the formal housing market. It  
This bill seeks to further add fuel to that potential by providing Informal 
Settler Families (ISFs) the option to either avail of housing rental subsidy or 
a straight-out housing equity subsidy.  It will be available not just for Metro 
Manila ISFS affected by infrastructure projects, but wherever there are delays 
in the provision of adequate resettlement sites as described in the Urban 
Development and Housing Act of 1992, as amended, for: 
Ø
families being resettled from project rights of way
Ø
families being evicted as a result of court-ordered demolitions
Ø
resettlement from danger zones or in the aftermath of natural
calamities
Ø
resettlement in the course of re-blocking or road clearing for slum
upgrading.
November 7, 2022
8:30 am
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The landmark passage of Republic Act 11201 creating the Department 
of Human Settlements and Urban Development (DHSUD) and its 
Implementing Rules and Regulations (IRR) include the formulation of public 
housing programs that should have the flexibility to provide assistance based 
on the needs and capacities of the recipients. The role of local government 
units, the Department of Social Welfare and Development, the Presidential 
Commission for the Urban Poor, and other agencies in putting together the 
information necessary for targeted and efficient housing intervention is 
critical.  Let us support the Department of Human Settlements and Urban 
Development in their worthwhile endeavor of providing safe and accessible 
housing for all Filipinos. 
In view of the foregoing, the immediate passage of this bill is earnestly 
sought.  
REP. PM VARGAS   
Fifth District, Quezon City


Republic of the Philippines 
House of Representatives 
Quezon City, Metro Manila 
NINETEENTH CONGRESS 
First Regular Session 
House Bill No. _______ 
INTRODUCED BY REP. PM VARGAS 
AN ACT 
ESTABLISHING A RENTAL HOUSING SUBSIDY PROGRAM FOR 
INFORMAL SETTLER FAMILIES AND APPROPRIATING FUNDS 
THEREFOR 
Be it enacted by the Senate and the House of Representatives of the Philippines 
SECTION 1. Short Title. – This Act shall be known as the “Rental Housing 
Subsidy Program Act.” 
SECTION 2. Declaration of Policy. – It is hereby declared the policy of the 
State to: 
(a) Promote a just, equitable, and inclusive urban development through
programs providing adequate social services, broader housing
options, livelihood and employment, and an improved quality of life
for the Filipino people, especially the underprivileged;
(b) Provide an innovative housing program providing affordable, livable,
and decent housing, as well as access to basic social services,
especially for the underprivileged;
(c) Protect the urban poor from the impacts of immediate dislocation
due to eviction and demolition arising from government projects and
their lack of tenure; and
(d) Provide for options for interim housing for dislocated families due to
natural and man-made disasters.
SECTION 3. Definition of Terms. For the purposes of this Act, the following 
terms or words and phrases shall be understood to mean as follows: 
(a) Danger Area - refers to areas which, when occupied for residential
purposes, actually pose a danger to the life and safety and property
of either the concerned residents or of the general community. The
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danger is due to an unavoidable source of probable harm to human 
life or well-being. 
 
(b) Demolition - refers to the dismantling by the local government units 
(LGUs), or any legally authorized agency of government, of all 
structures within the premises subject for clearing. 
 
(c) Dislocation – refers to the state of being displaced from one place to 
another due to causes such as but not limited to eviction and 
demolition; 
 
(d) Eviction – refers to the removal of persons and their belongings from 
a subject building/structure or area, or both, in accordance with 
law. 
 
(e) Informal Settler Families (ISFs) – refers to individuals or 
households living under any of the following conditions: 
 
1. Where the individual or household is living in a lot or dwelling 
unit without the consent of the legal owner of such lot or dwelling 
unit; 
 
2. Where the individual or household is living in a danger area as 
determined by the Department of Human Settlements and Urban 
Development (DHSUD); 
 
3. Where the individual or household is living in an area reserved or 
used for the government infrastructure projects; 
 
4. Where the individual or household is living in an area which is 
classified as a protected or forest area, except indigenous peoples; 
 
5. Where the individual or household is living in an area declared 
as a priority development area under Proclamation No. 1967, 
series of 1980, as applicable; 
 
6. Where the individual or household is living on public lands, 
structures, or facilities not intended for human habitation; 
 
7. Any other places, after being displaced due to natural or man-
made hazards 
 
(f) Rental Housing Subsidy – refers to the financial assistance 
provided by the government to rent accommodation in the private 
rental market, the amount of which shall not exceed the rates as 
regulated under Republic Act No. 9653, otherwise known as the 
“Rent Control Act” 
 


SECTION 4. Rental Housing Subsidy Program. – A Rental Housing Subsidy 
Program, hereinafter referred to as the “Program,” shall be established as a 
housing and social protection program with the end view of enabling ISFs to 
lead decent lives and giving them access to the formal housing market. It shall 
be made an option to address the temporary ISFs who may avail of the 
program are those affected by government infrastructure programs which 
could include, but are not limited to: 
(a) families being resettled from project rights of way; 
 
(b) families being evicted as a result of court-ordered demolitions; 
 
(c) resettlement from danger zones or in the aftermath of natural 
calamities; and 
 
(d) resettlement in the course of re-blocking or road clearing for slum 
upgrading 
Eligible beneficiaries shall receive a rental subsidy, the amount of which shall 
be determined by the DHSUD taking into consideration, among others the 
prevailing rental rates in the concerned locality and the economic standing 
and potential of the family. The subsidy shall be a percentage of the total 
amount of rentals as determined by the rental or lease contract between the 
eligible beneficiary and the lessor, provided that for those eligible beneficiaries 
below the poverty threshold as determined by the Philippine Statistics 
Authority, the subsidy shall be at least 50% of the total amount of rentals. 
Notwithstanding any provisions to the contrary, at any time but not more than 
once every two (2) years, subsidies given under the program shall be reviewed 
or revised to conform to prevailing economic conditions. 
Rental subsidy shall be granted to eligible beneficiaries for a maximum of five 
(5) years or upon their availment or acquisition of permanent housing, 
whichever comes first. The amount of assistance shall be based on a set of 
criteria which shall include: 
(a) per capita income of the family 
 
(b) family size 
 
(c) location of the house vis-à-vis place of work 
Eligible ISFs may however opt for an outright conversion of the aggregate 
three-year rental subsidy into a housing equity contribution for those seeking 
to take out a PAG-IBIG fund loan. 
 
SECTION 5. Program Eligibility. – Eligible ISFs shall be evaluated by the 
City or Municipal Social Worker who shall recommend the monthly rental 
subsidy range to be determined by the DHSUD. To be an eligible beneficiary 
under this Act, an individual or household must: 
(a) Live under any of the conditions under Section 3, paragraph (e), of 
this Act; 
 


(b) Have a source of livelihood or have at least one (1) member of the 
household gainfully employed; and 
 
(c) Vacate the informal settlement area in which they are presently 
living and transfer or relocate to a safer area. 
 
SECTION 6. Conditions for Continued Entitlement or Eligibility. – All 
eligible beneficiaries shall comply with the following conditions for continued 
availment of the benefits under this Act: 
(a) The beneficiaries shall not move or relocate back to the area in 
which they were originally living in unless such move or relocation 
has been permitted by the proper government authorities taking 
into consideration the purpose of the program; and 
 
(b) The beneficiaries shall pay that portion of the rentals not subsidized 
under the program to the lessor. 
Benefits who maintain good payment standings shall be prioritized as 
beneficiaries in government housing programs. 
 
SECTION 7. Form of Payment. – The rental subsidy shall be distributed by 
the DSHUD in such form as may be identified by the DHSUD to be most 
beneficial and appropriate for the beneficiaries. 
 
SECTION 8. Roles of Government Agencies. – The program shall involve the 
national government agencies and instrumentalities with the following roles: 
(a) The DHSUD shall: 
 
1. Coordinate with housing agencies to formulate program targets 
and integrate these to the national housing policy; 
 
2. Promulgate appropriate housing policies among the attached 
corporations of the DHSUD in line with the implementation of 
this program; 
 
3. Enlist beneficiaries and their lessors for the program; 
 
4. Set up monitoring and evaluation system, tools, exit strategy, 
and 
methodologies 
on 
compliance 
with 
conditions, 
implementation, output, and impact assessments together with 
its attached agencies, the Department of Social Welfare and 
Development (DSWD), the Presidential Commission on the Urban 
Poor (PCUP), and the local government units; and 
 
5. Recommend to Congress measures for the proper and responsive 
implementation of this Act. 
 
 


(b) The National Housing Authority (NHA) shall: 
 
1. Certify the eligibility of the beneficiaries under the program; 
 
2. Coordinate with infrastructure program implementing agencies, 
including but not limited to the Department of Public Works and 
Highways (DPWH) and the Department of Transportation (DOTr) 
for the identification of areas housing persons who need 
immediate resettlement; 
 
3. Update the alphalist and socio-economic profiles of beneficiaries 
to be resettled as part of the National Resettlement Program; and 
 
4. Design and conduct appropriate monitoring and evaluation of 
the implementations of this program, which shall include a 
grievance and redress system. 
 
(c) The Home Development Mutual Fund (HDMF) shall enroll the 
beneficiaries to the HDMF system so as to facilitate their entry into 
the formal housing market. 
 
(d) The DSWD shall design the social preparation activities and form 
and conduct workshops and training programs to ensure that 
beneficiaries are aware of the benefits under the Program, including 
parameters and conditions for eligibility. 
 
(e) The PCUP shall: 
 
1. Assist the DSWD in the design of social preparation activities, 
workshops, and training programs for beneficiaries; and 
 
2. Conduct social preparation activities with the local government 
units. 
 
(f) The Technical Education and Skills Development Authority (TESDA) 
shall provide skills training to beneficiaries. 
 
(g) The local government units shall: 
 
1. Maintain a publicly accessible register of lessors in their 
respective areas of jurisdiction; 
 
2. Assist the NHA in conducting census and tagging of ISFs in need 
of immediate resettlement; 
 
3. Assist the DSWF and PCUP in conducting social preparation 
activities; 
 


4. Contain the vacated areas of ISFs to help achieve the objectives 
of this program; 
 
5. Assist 
the 
DSWD 
in 
monitoring 
and 
evaluating 
the 
implementation of this program; and 
 
6. Conduct field valuation of beneficiaries and their respective 
lessors with DSWD in the rental housing units. 
SECTION 9. Additional Positions and Personnel for the DHSUD. – For 
purposes of this Act, the DHSUD shall, in accordance with pertinent civil 
service rules, create positions and enlist additional personnel to ensure the 
proper and appropriate implementation of the program under this Act. 
 
SECTION 10. Appropriations. – The amount necessary for the effective 
implementation of this Act shall be charged against the current 
appropriations for the DHSUD. Thereafter, such amount as may be necessary 
for its continued implementation shall be included in the annual General 
Appropriations Act. 
 
SECTION 11.  Implementing Rules and Regulations. – To fully implement 
the provisions of this Act, the Department of Human Settlements and Urban 
Development, the National Housing Authority, in close coordination with the 
Department of Social Welfare and Development, the Presidential Commission 
for the Urban Poor, and Local Government Units represented by the Union of 
Local Authorities of the Philippines (ULAP) shall issue rules, regulations, 
guidelines necessary to carry out the intent and purpose of this Act. 
 
SECTION 12. Separability Clause. – If any portion or provision of this Act 
shall be held unconstitutional or invalid, the remaining provisions not affected 
thereby shall continue to be in full force and effect. 
 
SECTION 13. Repealing Clause. – All law, executive order, proclamations, 
rules, regulations and other issuances or part thereof which are inconsistent 
with the provisions of this Act are hereby repealed, amend or modified 
accordingly. 
 
SECTION 14. Effectivity. – This Act shall take effect fifteen (15) days 
following its publication in the Official Gazette or in at least two (2) 
newspapers of general circulation. 
 
Approved,