Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
TWENTIETH CONGRESS 
First Regular Session 
HOUSE BILL NO. 1989 
Introduced by HON. MIGUEL LUIS R. VILLAFUERTE, HON. VINCENZO 
RENATO LUIGI R. VILLAFUERTE, HON. TSUYOSHI ANTHONY G. HORIBATA, AND 
HON. TERRY L. RIDON 
EXPLANATORY NOTE 
The Department of Human Settlements and Urban Development (DHSUD) reported 
that 6.7 million housing units remained unmet in 2022.1 With this baseline, the United Nations-
Habitat estimated that by 2040, the projected housing needs of the country can reach up to 
22 million housing units.2  With approximately 3.7 million informal settler families (ISFs) in the 
country, half a million of which are from Metro Manila, the intersectional concerns with 
sanitation, water, waste management, electricity, and health have become aggravated by the 
huge dilemma of a lack of adequate and affordable housing. 
Moreover, the public expenditures on the housing sector reached P161.4 billion in 
2021, but then had a steep decline in 2022, with P19.9 billion. In 2023, there is a slight increase 
with a P41.8 billion budget, but it decreased again to a P24.4 billion budget in 2024.3 
Considering this trend, the government must take proactive measures to increase the housing 
budget allocation and expedite the implementation of public housing projects, while assisting 
ISFs in their daily needs, contributing to their families' comfort, health, safety, and overall well-
being while waiting for a formal housing unit turnover. 
Section 9, Article XIII of the 1987 Constitution provides that “The State shall, by law, 
and for the common good, undertake, in cooperation with the private sector, a continuing 
program of urban land reform and housing which will make available at affordable cost, decent 
housing and basic services to under-privileged and homeless citizens in urban centers and 
resettlement areas.” In line with this constitutional mandate, this proposed measure seeks to: 
●
Establish a Rental Housing Subsidy Program, where eligible informal settler families
may receive a maximum of P3,500 monthly subsidy for rent while waiting for the
completion of a housing project intended for them. The said amount shall be reviewed
biennially by the DHSUD and the National Economic and Development Authority.
●
Lay down the conditions of the subsidy and identify the role of the DHSUD, the National
Housing Authority, the Home Development Mutual Fund, the Department of Social
Welfare and Development, the Presidential Commission for the Urban Poor, the
1 House of Representatives of the Philippines. Committees on Population and Demography & Housing and Urban 
Development. (2024, October). Facts in figures: The Philippine housing and household statistics. Congressional Policy and 
Budget Research Department. https://cpbrd.congress.gov.ph/wp-content/uploads/2024/10/FF2024-45-The-Phil-Housing-and-
Household-Stat.pdf 
2 United Nations Human Settlements Programme (UN-Habitat). (2023, June). UN-Habitat Philippines country report 2023. 
https://unhabitat.org/sites/default/files/2023/06/5._un-habitat_philippines_country_report_2023_final_compressed.pdf 
3 House of Representatives of the Philippines. Committees on Population and Demography & Housing and Urban 
Development. (2024, October). Facts in figures: The Philippine housing and household statistics. Congressional Policy and 
Budget Research Department. https://cpbrd.congress.gov.ph/wp-content/uploads/2024/10/FF2024-45-The-Phil-Housing-and-
Household-Stat.pdf 
July 16, 2025
11:25 am


Technical Education and Skills Development Authority, and local government units in 
the implementation of the program.  
This proposed measure was approved on third and final reading by the House of 
Representatives in the 19th Congress, showing the collective support of the legislators for the 
said measure.  
In view of the foregoing, the immediate passage of this bill is earnestly sought. 
HON. MIGUEL LUIS R. VILLAFUERTE 
HON. VINCENZO RENATO LUIGI R. VILLAFUERTE 
HON. TSUYOSHI ANTHONY G. HORIBATA 
HON. TERRY L. RIDON 


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
TWENTIETH CONGRESS 
First Regular Session 
HOUSE BILL NO. 1989 
Introduced by HON. MIGUEL LUIS R. VILLAFUERTE, HON. VINCENZO 
RENATO LUIGI R. VILLAFUERTE, HON. TSUYOSHI ANTHONY G. HORIBATA, AND 
HON. TERRY L. RIDON 
AN ACT ESTABLISHING A RENTAL HOUSING SUBSIDY PROGRAM FOR INFORMAL 
SETTLER FAMILIES AND APPROPRIATING FUNDS THEREFOR  
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 “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 that makes available affordable, livable, and
decent housing, as well as access to basic social services, especially for the
underprivileged;
(c) Protect the urban poor from the impact of immediate dislocation due to eviction and
demolition arising from government projects; and
(d) Provide interim housing for dislocated families due to natural and man-made disasters.
SECTION 3. Definition of Terms. – As used in this Act: 
(a) Dislocation refers to the state of being displaced from one place to another due to
causes such as eviction and demolition;
(b) Informal settler families refer to households living on a lot, whether private or public,
without the consent of the property owner; or those without legal claim over the
property they are occupying; or those living in danger areas such as esteros, railroad
tracks, garbage dumps, riverbanks, shorelines, and waterways, as defined in Section
3(e) of Republic Act No. 11201, otherwise known as the “Department of Human
Settlements and Urban Development Act”; and


(c) Rental housing subsidy refers to the financial assistance provided by the government 
to pay for the temporary use or occupancy of a residential unit in the public and private 
rental housing market.  
 
SECTION 4. Rental Housing Subsidy Program. – There is hereby established the Rental  
Housing Subsidy Program, hereinafter referred to as the “Program”, to provide social 
protection and support to informal settler families (ISFs) in accessing the formal housing 
market under the Department of Human Settlements and Urban Development (DHSUD). It 
shall be made an option to address the temporary relocation of displaced families due to 
natural and man-made disasters.  
 
Eligible ISFs shall receive a flat rental subsidy rate of Three thousand five hundred 
pesos (PhP3,500.00) for those living in Metro Manila and a rental subsidy rate to be 
determined by the DHSUD and the National Economic and Development Authority (NEDA) 
for those living in all other regions, taking into consideration the prevailing minimum wage and 
rental rates per region, but not to exceed Three thousand five hundred pesos (PhP3,500.00): 
Provided, That the rental subsidy shall not exceed the actual rent: Provided, further, That at 
any time, but not more often than once every two (2) years, such subsidy may be reviewed or 
revised by the  DHSUD and NEDA to conform with the prevailing economic conditions.  
 
Rental subsidy shall be granted to eligible beneficiaries until the date of completion of 
the permanent housing project intended for them or upon their actual transfer to the permanent 
housing project, whichever comes first: Provided, That in case of a delay in the completion of 
the permanent housing project, the rental subsidy shall be extended: Provided, further, That 
the agency implementing the permanent housing project shall bear the cost of the extended 
rental subsidy.  
 
SECTION 5. Eligibility. – To be eligible for rental subsidy under this Act, a beneficiary must:  
 
(a) Be an ISF as defined under Section 3(b) hereof; and  
 
(b) Vacate the informal settlement area presently being occupied and transfer to a safer 
and government-authorized area.  
 
SECTION 6. Conditions for Continued Entitlement or Eligibility. – All eligible rental 
subsidy beneficiaries shall comply with the following conditions to continuously avail of the 
benefits under this Act:  
 
(a) The beneficiaries shall not move or relocate back to the area in which they were 
originally living 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 to the lessor that portion of the rental fee not covered by 
the subsidy.   
Rental subsidy beneficiaries 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 DHSUD in 
such form it may determine to be most beneficial and appropriate for the beneficiaries.   
 
SECTION 8. Roles of Government Agencies. – The various national government agencies 
and instrumentalities involved in the Program shall perform specific responsibilities.   
 
(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  
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 for 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 applicants of the Program;   
(2) Coordinate with government agencies, including the Department of Public  
Works and Highways and the Department of Transportation, on the 
identification of areas suitable for housing projects and the persons who need 
immediate resettlement;   
(3) Update the masterlist of beneficiaries to be resettled as part of the National 
Resettlement Program, which shall include their socio-economic profiles; and 
(4) Design and conduct appropriate monitoring and evaluation of the 
implementation of this Program, which shall include a grievance and redress 
system.  
 
(c) The Home Development Mutual Fund shall enroll in its system at least one household 
member of the applicant-beneficiaries of the Program to facilitate their entry into the 
formal housing market. 
 
(d) The DSWD shall design the social preparation activities and conduct workshops and 
training programs to ensure that beneficiaries are aware of the benefits under the 
Program, including the 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 shall provide skills training 
to at least one household member of the 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 DSWD 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, with the DSWD, field valuation of beneficiaries and their respective 
lessors in the rental housing units.   
 


SECTION 9. Appropriations. – The amount necessary for the implementation of this Act shall 
be included in the annual General Appropriations Act.  
 
SECTION 10. Implementing Rules and Regulations. – The DHSUD shall, in coordination 
with relevant government agencies, issue rules, regulations, and guidelines necessary to carry 
out the intent and purposes of this Act within six (6) months from the date of effectivity.  
 
SECTION  11. Mandatory Review on the Implementation of this Act. – The DHSUD shall 
submit to both Houses of Congress a report on the implementation of this Program at the end 
of the second year from the date of effectivity of this Act and every two (2) years thereafter.  
 
SECTION 12. Separability Clause. – If any portion or provision of this Act is held 
unconstitutional or invalid, the remaining provisions not affected thereby shall continue to be 
in full force and effect.  
 
SECTION 13. Repealing Clause. – All laws, executive orders, proclamations, rules, 
regulations, and other issuances or parts thereof which are inconsistent with the provisions of 
this Act are hereby repealed, amended, or modified accordingly.  
 
SECTION 14. Effectivity. – This Act shall take effect fifteen (15) days after its publication in 
the Official Gazette or in a newspaper of general circulation.  
 
 
Approved,