EIGHTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
Second Regular Session
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SENATE 
S. No. 1774
Introduced by Senator Francis "Tol" N.
AN ACT
ESTABUSHING A NATIONAL COMPREHENSIVE 
PROGRAM, PROVIDING FOR THE ANNUAL AUTOM|A 
FUNDS, AND FOR OTHER PURPOSES
EXPLANATORY NOTE
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Section 9, Article XIII of the 1987 Constitution provide; 
in cooperation with the private sector, a continuing prog 
housing which will make available at affordable cost, decen 
under-privileged and homeless citizens in urban centers and 
The country has a growing need in socialized housi i 
there is a 6.57 million unit deficiency to attain one hundred 
Rlipinos. The Philippine Statistical Research and Training In 
country's housing need will grow to 22.6 million units by the 
Chapter 12 of the Philippine Development Plan pn 
permanent housing units are targeted to be constructed, witli 
and transitional resettlement assistance and additional com 
2017-2022, while Ambisyon Natin 2040 envisions that In 
together In a place of their own.
However, the country's ability to address the housing 
limited by the budget allocated for the housing agencies. Ovbi
2C4
INDEX
Tolentino
HOUSING FINANCING 
lire APPROPRIATION OF
that the State shall undertake, 
of urban land reform and 
housing and basic services to 
resettlement areas, 
g. For the period 2017-2022, 
percent housing security for 
stitute have projected that the 
end of 2040.
4vides that a total of 927,541 
34,900 housing units financed, 
t)iunity facilities provided within 
0, all Filipino families will live
problem and attain its goals is 
r the last decade, the housing


agencies' highest appropriation was only 1.66% of the njational budget, or Thirty-seven 
Billion Pesos.
The combined budget for the housing agencies in the proposed 2020 national budget 
is less than one half of one percent (0.5%) of the national budget. The DBM allotted Pi
billion for NHMFC; P3.277 blllton for NHA; P1.397 billion for 
the department proper. Based on the DBM's proposed budg 
up with 12,000 housing units In 2020.
During this time of pandemic, there is even a more
countrys attainment of its national housing goals must be on track as more Filipinos will be
the SHFC; and PCM million for 
at, the DHSUD could only come
jrgent need to ensure that the
in need of affordable, quality homes. According to DHSUD, 
housing production by the government with the imposition 
the construction to a standstill.1
To address the country's housing problem, this hill proposes to automatically 
appropriate funds for the government's housing agencies
program in order for our country to catch up with the its housing backlog, and to provide a 
home for every Filipinos
he health crisis has slowed the 
of the work stoppage bringing
In the light of the foregoing, the passage of this bill is earnestly sought.
Ordinario. Cai, "Housingand Covid-19 Response: Threats, Opportunities,"My 16.2020. Business Mirror
IS "TOL" N. TOLENTINO


EIGHTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
Second Regular Session
SENATE 
S. No. 1774
Introduced by Senator Francis "Tol" N,
AN ACT
ESTABUSHING A NATIONAL COMPREHENSIVE 
PROGRAM, PROVIDING FOR THE ANNUAL AUTOMa|t: 
FUNDS, AND FOR OTHER PURPOSES
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Be it enacted by the Senate and House of Represent itives of the Philippines in 
Congress assembled:
Section 1. Short Title. — This Act shall be 
Comprehensive Housing Financing Act of 2020.”
Section 2. Declaration of Policy. - It is hereby declared the policy of the State
The
1HE
[iJU r>ATg? .Aug 17 2020 D
by;
INOCX^
Tolentino
HOUSING FINANCING 
IC APPROPRIATION OF
known as the "National
to:
fr)i
for
(a) Promote a just and dynamic social order that wi 
independence of the nation and free the people 
that provide adequate social services, promote 
standard of living, and an improved quality of life
(b) Promote social justice in all phases of national
(c) Undertake, in cooperation with the private secto- 
urban land reform and housing which will make 
decent housing and basic services to under-privile 
urban centers and resettlement areas.
dev;
Section 3. Objectives. - Towards this end, the Stab; shall:
ensure the prosperity and 
m poverty through policies 
full employment, a rising 
all;
lopment; and 
■, a continuing program of 
Available at affordable cost, 
qed and homeless citizens in


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(a) Increase housing production by forging pa "tnership among housing 
stakeholders to address the housing needs of the :iiipino families;
(b) Generate and mobilize funds for housing purpose s of Filipino families/ giving
priority to the homeless and underprivileged;
(c) Ensure the provision of support mechanisms/si 
access of Filipino families to a variety of housing o
(d) Guarantee the development of a strong, sustainab 
housing finance system; and
(e) Encourage public and private sector participation in the implementation of 
government National Housing Development and Production Rnancing Program. 
Section 4. Revolving Fund. - The amount of not
bsidy program to improve 
)tlons;
e, accessible and affordable
12 (P50/000/000/000.00) is hereby authorized to be ini
ess than Fifty Billion Pesos 
Jaily appropriated for the
the DHSUD and its Attached 
mentation of the following
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Department of Human Settlements and Urban Developme it and its attached agencies
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in the General Appropriations Act to carry out the object!' es of this Act. The amount
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initially appropriated shall be replenished in the GeneicI Appropriations Act of the
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following year over a period of twenty (20) consecutive rears commencing the year
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immediately succeeding the effectivity of this Act.
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A total amount of One Trillion Pesos (PI,000,00),000,000.00) covering the
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continuing requirement of this Act shall be appropriated to
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Agencies over the twenty (20) year period for the impicr
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housing programs:
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(1) One hundred sixty-eight billion pesos (P168,000,000,000.00) for the 
implementation of the following programs of tie Department of Human 
Settlement and Urban Development:
a) One hundred thirty billion pesos (P130,000,(|00,000.00) to finance the 
Public Housing;
b) Thirty billion pesos (P30,000,000/000.00) as 
follows:
i. Six billion, eight hundred fifty million pesbs (P6,850,000,000.00) as 
interim shelter finance assistance for the informal settler-families who 
will be relocated;
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subsidy, broken down as


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s (P2/500/000/000.00) as 
400,000/000.00) to finance
il. Twenty billion, six hundred fifty million pe^os (P20,650,000,000.00) as 
upfront subsidy; and
iii. Two billion/ five hundred million pesc 
amortization support.
c) Seven billion/ four hundred million pesos (P7( 
public rental housing; and
d) Six hundred million pesos (P600,000,000.( 0) to finance survey of 
proclaimed lands and conduct of inventory of gc vernment idle lands suitable 
for socialized housing.
(2) Six hundred thirty billion pesos (P630,000,000,000[00) for the implementation 
of the following programs of National Housing Autf lority:
a) Two hundred ninety-seven billion, seven
(P297/700,000/000.00) to finance the Resettlement Program;
hundred million pesos
liundred million pesos
b) Two hundred three billion, five 
(P203,500,000,000.00) as subsidy for Governm snt Employees Housing;
c) Sixty-three billion, seven hundred million peso^ (P63,700,000/000.00) for 
the Settlements Upgrading;
d) Thirty-nine billion, three hundred million pesos 139,300,000,000.00) for the 
Housing Program for Calamity Victims;
e) Twenty-five billion, eight hundred million peso; (P25,800,000,000.00) for 
Land Banking.
(3) One hundred fifty-two billion pesos (P152, )00,000,000.00) for the 
implementation of the Community Mortgage Prograi n of Social Housing Finance 
Corporation.
(4) Fifty billion pesos CP50,000,000,000.00) for the Cap talization of National Home 
Mortgage Finance Corporation.
Section 5. LGU Sources of Funds. - Section 43 o Republic Act No. 7279 is
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hereby amended to read as follows:
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"Sec. 43. Socialized Housing Tax. — Consistent with the constitutional principle
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that the ownership and enjoyment of property be ir a social function and to
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raise funds for the Program, all local government t nits are hereby authorized
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to impose an additional one-half percent (0.5%) ta < on the assessed value of


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all lands In urban areas [In excess of Fifty thousand pesos (P50,000)]. THE
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PROCEEDS FROM THE IMPOSITION OF SOCIALIZED HOUSING TAX
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SHALL ACCRUE TO THE SPECIAL FUNDS OF 1 HE LOCAL GOVERNMENT
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UNIT, WHICH SHALL BE USED FOR 1 HE DEVELOPMENT OF
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SOCIALIZED HOUSING PROJECTS AND FOR THE CONSTRUCTION
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AND ESTATE MANAGEMENT OF PUBUC REN TAL HOUSING."
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Section 6. National Housing Securitization Prognim. - The National Housing
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Securitization Program for the development of the s icondary market for home
conveyances and financial 
nvestments in new housing 
the capital markets thereof, 
home development shall be
9 mortgages of and other housing related receivables,
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Instruments and the development or promotion of and
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related financial Instruments and investment vehicles anc
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to increase and sustain funds available for housing and
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implemented as follows:
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1. The National Home Mortgage Finance Corporati( >n (NHMFC) shall be the sole
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implementing agency for the securitization program;
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2. The NHMFC in coordination with the DHSUI), DOF and BSP and other
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concerned agencies and private sector organizations, sh jII formulate a program, the
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proceeds of which shall be earmarked for the housing pr jgrams of the government.
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3. The mortgages to be generated as a result o
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housing programs shall be sold and transferred to the NHMFC, which shall also serve
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as asset pool for securitization.
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4. The NHMFC shall manage the whole securitlz^t
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the following activities:
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a) determining the eligibility criteria for the asset poc I;
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b) defining the preliminary structure of the notes, bopds and or instruments to be
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issued, third parties to be hired; and
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c) Education or briefing of target investors for all thel issues.
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5. The bonds, notes and securities shall be e>empt from the registration
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requirements under the Securities Regulation Law In ord< :r to accelerate the issuance
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of its housing related securities/financial instruments iind, thus, more reasonably
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provide the necessary fund for housing developments.
ition process which includes


6. Any socialized housing or economic housing-related bond or asset-backed 
securities Issued by NHMFC directly or through a special jurpose entity shall enjoy all 
the tax exemptions granted under Republic Act No. 926/ or the Securitization Act of 
20M pursuant to the State's policy of promoting the se :uritlzation of mortgage and 
housing related receivables of government housing agen: 
and accelerate the growth of the housing finance sector, 
economic housing.
7. Bonds purchased by private real estate developers shall be considered as an 
alternative compliance to the balanced housing requlrerr e
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7279 as amended by RA 10884, subject to the rules pror lulgated by the Department
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of Human Settlements and Urban Development.
8. The Philippine Guaranty Corporation created Pursuant to Executive Order 
No. 58 (S. 2018) shall guaranty the payment of the bala ice outstanding and due on
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the guaranteed principal obligation, plus interest and yields thereon for socialized
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housing packages, for low-cost housing packages, for medium-cost housing packages 
and for open housing packages, the rates of which is to be determined by the
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Section 7. Capitalization of National Home Mo. ■
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(NHMFC). - The authorized capital stock of the NHMFI is hereby Increased from
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P5,500,000,000.00 pesos to P50,000,000,000.00 peso ; to expand its leveraging
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capacity based on the volume of mortgage loans beiig serviced to Improve its
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profitability by reducing the average cost of its fund mad»available for home lending
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programs.
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The Rfty billion peso (PS0,000,000,000.00) capita
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the Government of the Republic of the Phllippiies: Provided, That the
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P25,000,000/000.00 of the capitalization shall be funded from the General
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Appropriations Act and the remaining P25,000,000,000.(p0 shall be funded from the
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;ies, to generate Investment 
especially for socialized and
tgage Finance Corporation
shall be fully subscribed by
declared dividends of the NHMFC in favor of the Nat
purpose, any and all declared dividends of the NHMFC In favor of the National
Government shall be deposited In a special account
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ional Government. For this
in the General Fund, and


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be released and disbursed Immediately and shall corjtinue until the increase in
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capitalization has been fully paid.
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Section 8. Tax Exemptions. - The NHMFC shall tie exempt from all national,
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provincial, municipal and city taxes on Income derh ed from Its governmental
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functions, specifically income from its activities or transactions in the exercise of its
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mandates.
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Section 9. Multi-Year Obllgational Authority - T\
8 agencies shall be given a multi-year obllgational author
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St track the approval and
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projects which will take more than one year to compi :te that requires multi-year
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appropriations, subject to the provisions of existing lavs and regulations including
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those of the Commission on Audit and other terms and conditions most favorable to
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the government.
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Section 10. Private Sector Participation - To fis
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implementation of housing projects and reduce the cost of socialized and low-cost
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housing units, the Bureau of Internal Revenue, the Department of Agriculture, the
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National Irrigation Authority, the Philippine Coconut Auth irity, the Sugar Regulatory
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Administration, the Department of Agrarian Reform, the I )epartment of Environment 
and Natural Resources, the Mines and Geosciences 
Development Authority the Department of the Interior
e DHSUD and Its attached 
ty for housing programs or
Bureau, the Laguna Lake 
and Local Government, the
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Local Government Units, the Land Registration Authorityl the Department of Human
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Settlements and Urban Development, and all other agencl »s, shall facilitate the release
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of the required housing-related permits, license^, certifications and tax
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exemptions/rulings in accordance with Republic Act No.
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the Ease of Doing Business and Efficient Delivery of Gov^r
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of 2018.
In case the responsible officers of the agencies
dispose of the application within the periods prescribe< under RA No. 11032, the
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applicable administrative and criminal liability as stated in
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shall be imposed.
All the incentives enumerated under Section 20(d)
amended by Republic Act. No 10884, shall be extended ti i the private sector engaged
11032, otherwise known as 
mment Service Delivery Act
concerned fail or refuse to
Section 22 of RA No. 11032
of Republic Act No. 7279, as


in any of the component 
nners of compliance to the
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in socialized and low-cost housing development including
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management of public rental housing.
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The participation of owners and/or developers
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programs of this Act shall be treated as one of the mer
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balanced housing requirements subject to the conditions: ;et forth under RA No. 7279.
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Section 11. Collection Efficiency. - In order to impr Dve collection efficiency, the
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NHA, SHFC and NHMFC shall have authority to foreclose mortgages, and/or evict
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beneficiaries in accordance with existing laws.
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Section 12. Implementing Rules and Regulations. - The DHSUD, in consultation
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with its attached agencies, shall promulgate rules and regulations necessary for the
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implementation of this Act within ninety (90) days from Hs effectivity.
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Section 13. Repealing Clause. - All laws, (ecrees, executive orders,
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proclamations, rules and regulations and issuances, < r parts thereof which are
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inconsistent with the provisions of this Act, are hereby rep ealed, amended or modified
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accordingly.
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Section 14. Separability Clause. - If for any reason, any provision of this Act is
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declared invalid or unconstitutional, the remaining provi: ions shall continue to be In
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full force and effect.
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Section 15. Effectivity Clause. - This Act shall take feffect fifteen (15) days after
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Its cornplete publication In at least two (2) national newsp apers of general circulation.
Approved,
the construction and estate