Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

TWENTIETH CONGRESS
First Regular Session

HoUsE BILL No, 852

Introduced by Representative MARK ANTHONY G. SANTOS

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 private 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 resettlement 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.

In the UN-Habitat Philippines Country Report 2023, it estimates that housing
need in the Philippines is projected to increase from 6.5 million to 22 million by 2040.
Informal settler families (ISFs) are estimated at 3.7 million, halfa million of which are
living in slums and high-risk areas in Metro Manila or National Capital Region.

In 2022, the "Pambansang Pabahay Para sa Pilipino Housing (4PH) Program"
was introduced. This groundbreaking initiative was launched with the noble objective
of providing affordable housing solutions to millions of our fellow Filipinos who find
themselves without a place to call home.

This bill aims to enhance and institutionalize the housing program of the
administration under the Department of Human Settlements and Urban Development
(DHSUD). It seeks to increase and strengthen housing development, production, and
financing towards the end of ensuring that informal settler families are able to avail
of safe and more permanent homes.

In view of the foregoing, the passage of this bill is earne

MARK ANTHONY G. Ly


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Manila

TWENTIETH CONGRESS
First Regular Session

HOUSE BILL NO. _§52

Introduced by Representative MARK ANTHONY G. SANTOS

AN ACT
ENHANCING THE NATIONAL SHELTER PROGRAM, REVITALIZING AND
STRENGTHENING THE HOUSING FINANCE ECOSYSTEM, APPROPRIATING
FUNDS THEREFOR

SECTION 1. Short Title. ~ This Act shall be known as the “Enhanced National Shelter
Program Act.”

SEC. 2. Declaration of Policy. ~The State hereby recognizes that access to adequate,
safe and affordable housing enhances quality of life and contributes to the wellbeing of the
community. It is hereby declared a policy of the State to create an enabling environment for
the public and private sectors, to, jointly or separately, increase and accelerate housing
production to address the housing needs of Filipino families. Accordingly, the State hereby
adopts the following policies

(a) Develop a diverse range of housing products and tenure options according to the
specific needs and financial means of targeted market segments,

(b) Implement system integration of housing programs to enhance efficiency and optimize
resource allocation;

(c) Encourage and enhance private sector participation in capital investment in public
housing

(d) Promote and support a robust housing finance market;

(e) Enhance the stability of the housing finance market by implementing comprehensive
financial risk management strategies to mitigate risk and reduce borrowing cost:

(f) Integrate principles of social inclusion, sustainability, and climate resilience in the
design of public housing; and

(g) Implement a whole of government approach in human settlements and urban
development

SEC. 3. Enhanced National Shelter Program -The Department of Human
Settlements and Urban Development (DHSUD) is hereby mandated to implement a


comprehensive program to provide targeted housing assistance, either direct or indirect, to low-
income and middle-income families, hereinafter referred to as the Enhanced National Shelter
Program. The DHSUD shall adopt an integrated and unified approach in implementing the
Enhanced National Shelter Program, The Enhanced National Shelter Program shall include the
following components:

(a) Pambansang Pabahay Para sa Pilipino (4PH) Program. — The 4PH, as administered by
the DHSUD, is hereby institutionalized and declared as the centerpiece program of the
Enhanced National Shelter Program. The 4PH shall provide direct housing assistance
to low-income and middle-income families. The DHSUD and its attached agencies
shall partner with local government units (LGUs) to undertake the construction of
socialized housing in LGU-owned lands and the allocation thereof to qualified
beneficiaries. LGUs may obtain development loans from the Home Development
Mutual Fund (HDMF) and other Government Financial Institutions (GFIs), or enter
into a joint venture with a property developer to co-finance the construction of housing
units, in accordance with applicable laws, rules and regulations. LGUs and National
Government Agencies (NGA) may also opt to enter into contracts with a private entity
through a Public-Private Partnership for the development of LGU-owned or NGA-
owned lands for housing,

Additionally, private developers or contractors may also participate in the 4PH program
thru the development of private lands in collaboration with LGUs and NGAs, subject
to applicable rules and regulations. HDMF shall provide mortgage financing to
qualified beneficiaries, who shall be eligible for amortization support and interest
credit. Other financial institutions may also provide mortgage financing to qualified
beneficiaries, who shall be eligible for amortization support and interest credit,

(b) Housing Programs. - The National Housing Authority (NHA) shall develop and
implement comprehensive shelter and human settlements programs for underserved
families: (1) upgrading of informal settlements program to improve blighted urban
areas including existing resettlement sites; (2) production and disposition of shelter for
underprivileged and homeless including the provision of housing grants and socialized
housing programs pursuant to Republic Act No. 7279 or Urban Development and
Housing Act of 1992; and (3) resettlement of informal settler families affected by
government infrastructure and disasters;

(c) Community-led Financing - The Social Housing Finance Corporation (SHFC) is hereby
mandated to develop a modified Community Mortgage Program (CMP) to promote
community-led housing program wherein organized community associations shall
obtain mortgage financing from SHFC for land acquisition, site development, and
construction of residential units which shall be awarded to member-beneficiaries of the
community for long-term lease with option to purchase. SHFC shall continue to
implement existing CMP modalities, high-density housing program, and Abot-Kaya
Pabahay Fund under Republic Act No. 6846;

(d) Credit Counseling and Financial Literacy Program. ~ The DHSUD and Key Shelter
Agencies (KSAs) shall implement a housing-related financial literacy program to
improve creditworthiness of beneficiaries, Provided, That the credit information of
beneficiaries shall be protected under Republic Act No. 9510, otherwise known as
“Credit Information System Act”;


(e) Estate Management. - An Estate Management and Welfare Council (EMWC) shall be
created to ensure the sustainability of every government housing program. The EMWC
shall serve as an oversight body providing policy recommendations concerning
property management, operation and maintenance of structures, communal spaces, and
other facilities,

(f) Securitization Program. - The National Home Mortgage Finance Corporation
(NHMFC) is hereby mandated as the government’s secondary mortgage institution to
expand its operations for the purchase and securitization of housing loans and such
other assets with predictable cash flow from public or private originators, financial
institutions, and KSAs, to support the growth and stability of the housing finance
market. The NHMFC will implement strategic measures to expeditiously dispose of its
non-performing assets to enhance the performance of its asset portfolio;

(g) Guarantee System. - There is hereby established a Housing Guarantee System wherein
bonds originated by the NHMFC and LGUs, and Asset-backed Securities (ABS)
originated by the NHMFC and issued through a Special Purpose Entity (SPE), may be
covered by the Philippine Guarantee Corporation (PHILGUARANTEE), in accordance
with coverage limits and eligibility criteria established by PHILGUARANTEE in
collaboration with the Department of Finance (DOF), and under such special
preferential guarantee rates and conditions, simplified requirements, and expedited
processes, agreed upon with NHMFC, as provided under Sections 3 (f) and 13 (h) of
Republic Act No. 8763, enjoining the active participation of LGUs in socialized
housing programs through adequate measures for housing development in their
respective areas; and

(h) Housing Bonds. - KSAs and LGUs are hereby authorized to issue bonds to finance
their housing programs, subject to existing laws, rules, and regulations

SEC. 4. Targeting System. - The DHSUD and National Economic and Development
Authority (NEDA) shall establish eligibility requirements and a standardized targeting system,
utilizing income data of the Family Income and Expenditure Survey (FIES), as basis for
prioritizing of beneficiaries of programs in the preceding Section to ensure that housing
assistance is directed towards families with the greatest need

SEC. 5. Price Ceiling. - The DHSUD and NEDA shall jointly determine the price
ceiling for socialized, low cost or economic and middle-income housing, in accordance with
Section 23 of Republic Act No. 11201, by calculating land and construction costs through price
inflation analysis, using the previously approved price ceiling as a baseline, and incorporating
imputed rent based on FIES and affordability as well as other methodologies that may be
applicable

SEC. 6. Housing Support. - The DHSUD shall, directly or through its attached KSAs,
provide amortization support payable to the end-user finance providers for the account of the
buyer-beneficiaries’ units, using funds that will be made available through the General
Appropriations Act (GAA), and other identified funding sources. LGUs are also encouraged to
provide monthly amortization support to buyer-beneficiaries of the units, if needed to enable
the latter to meet their monthly amortization obligations.

The interest subsidy per beneficiary shall not exceed 5%, and the remainder shall be paid by
the beneficiaries, provided that at no time shall the beneficiaries pay interest amortization of


less than 1%. For beneficiaries belonging to the bottom 30% income decile, the following
additional financial assistance/subsidy may be applied:

(a) Mortgage redemption insurance, fire insurance, and other property related insurance;
(b) Real Estate Management Subsidy;

(©) Time-limited rental subsidies for the families provided that the households availing the
rental subsidy meet the following criteria: (a) they are in need of temporary
accommodations while awaiting their relocation/resettlement to the 4PH housing units
and (b) they do not have access to any similar rental assistance program of the
government.

SEC. 7. Additional Capitalization of NHMFC. ~ The authorized capital stock of the
NHMFEC is hereby increased from P5,500,000,000.00 to PS0,000,000,000.00 to expand its
leveraging capacity based on the volume of mortgage loans and other financial receivables
being serviced to improve its profitability by reducing the average cost of its fund made
available for its programs

The capital of the 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 increase in capitalization shal! be funded from a continuing
annual appropriation under the GAA, as well as, from all the declared dividends and tax
payments of the NHMFC in favor of the National Government and such other advances,
funding, or appropriations from the National Government as may be agreed upon between the
NHMFC and the DOF, until the above-mentioned amount of capitalization is reached. For this
purpose, any and all declared dividends and tax payments 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,

SEC. 8, Exemption from Tax and Regulatory Fees. - To promote the policy of
improving housing affordability, projects under the 4PH Program, in cooperation with LGUs,
other socialized housing projects of SHFC and NHA, and private sector participating in the
housing programs shall also enjoy exemptions from fees, charges, and taxes enumerated
including but not limited to the following: income tax, creditable withholding tax, real property
tax, capital gains tax, value added tax, donor’s tax, and other similar taxes; and building permit
fee, fire inspection permit fee, Environmental Compliance Certificate fees, and other regulatory
fees. Similarly, lands for development under the 4PH Program shall be exempt from the
payment of documentary stamp tax, transfer tax, registration fees, including other fees required
for the issuance of transfer certificates of titles.

Additionally, the investors’ yield or income from any socialized housing or economic housing-
related bond or ABS originated by the NHMFC issued through a Special Purpose Entity under
the Securitization Act of 2004 shall be exempt from income tax. All NHMFC issuances,
transactions, and documents shall enjoy tax, regulatory fees and other exemptions, incentives,
and benefits granted under the Securitization Act of 2004

For this purpose, the DOF shall issue the appropriate revenue regulations, exempting projects
under the Enhanced National Shelter Program of DHSUD, SHFC, NHA, and NHMFC within
ninety (90) days of the approval of this Act.


SEC. 9. Identification of Lands for Housing and Human Settlement. - The DHSUD
shall, pursuant to applicable laws and executive issuances, identify national and local
government lands that are suitable for housing development, particularly for housing
production programs enumerated in Section 4 of this Act, and including new townships and
estates development, in coordination with concerned NGAs and LGUs, and undertake the
required activities to develop the same in an efficient manner.

The DHSUD shall likewise identify available public lands and shall exercise exclusive
jurisdiction on the management and disposition of all lands of the public domain suitable for
human settlements. DHSUD shall be responsible for the classification, sub-classification,
surveying and titling of lands in consultation with appropriate agencies, and recommend to the
President, the issuance of proclamations declaring said public land as alienable and disposable,
and reserving the same for housing and human settlement purposes, subject to existing laws,
rules and regulations

For purposes of site selection, DHSUD shall ensure that protected lands under special laws
such as Republic Act No. 8371, Republic Act No. 8435, Republic Act No. 6657, and other
agrarian reform laws, shall be preserved for equally important land uses

SEC. 10. Mandatory Submission of Land Inventory by NGAs and LGUs. - The
National Government departments, agencies, and instrumentalities, including Government
Owned- and Controlled Corporations (GOCCs) and their subsidiaries, as well as LGUs, shall
conduct an inventory of the lands that they own and administer, and submit the complete list
to the DHSUD within ninety (90) calendar days from the enactment of this Act and to be
updated every three (3) years thereafter.

The inventory of lands shall include government-owned idle lands or lands that have not been
used for the purpose for which they have been originally reserved or set aside for at least ten
(10) years, and on which no improvements have been made by the owner as certified by the
concerned LGU, except lands owned by GOCCs and government financial institutions engaged
in shelter financing as part of its fiduciary obligation to its members and/or are taken possession
of in their ordinary conduct of business, pursuant to Section 8 of Republic Act (RA) No. 7279,
as amended, and Sections 5 and 24 of RA No, 11201

The Land Registration Authority (LRA) shall assist these agencies in the preparation of their
respective inventories by providing a list of titles and the corresponding certified true copies
thereof that are registered in the name of said agencies.

SEC 11, Acquisition and Development of Identified Lands. - Lands identified and
designated for Housing and Urban and Rural Development, pursuant to Section 24 of Republic
Act No. 11201, shall be assessed by the Department for program or project feasibility. Should
the site evaluation be in the affirmative, said lots shall forthwith be transferred to DHSUD for
administration.

DHSUD shall acquire ownership and/or administration of the identified lands of concerned
agencies, for housing and human settlement purposes, and shall carry out the immediate
development of the aforementioned lands.

The LRA shall cancel the titles of identified lands registered in the name of concemed agencies,
and re-issue new titles in the name of the DHSUD, subject to relevant provisions of Presidential
Decree No. 1529 or the “Property Registration Decree.”


Lands identified and acquired by the DHSUD under the 4PH program shall be automatically
converted or reclassified, in order to facilitate its immediate development.

SEC. 12. Green Lanes for Housing-Related Permits, Clearances, and Licenses. ~The
concerned NGAs, including their regional and provincial offices when applicable, and LGUs
shall establish or designate, whichever is applicable, a Green Lane within their offices in charge
of expediting and streamlining the processes and requirements for the issuance of housing-
related permits, clearances, and licenses, including but not limited to: Environmental
Compliance Certificate (ECC) or Certificate of Non-coverage (CNC) duly issued by the
Department of Environment and Natural Resources, whichever is applicable; Certified true
copy of Department of Agrarian Reform conversion order (if applicable); Permit to drill from
NWRB; and, Approved Technical Plans. The said Green Lanes shall be integrated and not be
duplicative of the Housing One-Stop Processing Centers (HOPCs) established under Republic
Act No. 11201

For this purpose, the above agencies or offices shall designate an account officer for the Green
Lane who shall be responsible for coordinating with the relevant government offices or
agencies in streamlining and simplifying permitting and licensing processes, and
recommending modifications or amendments to existing procedures that are outdated,
redundant, and adds undue regulatory burden and cost to the transacting public, in coordination
with the Anti-Red Tape Authority (ARTA).

ARTA, together with the appropriate agencies, shall issue the implementing rules and
regulations for this provision not later than ninety (90) days from the approval of this Act.

Permits, licenses, and clearances not acted upon within seven (7) days upon submission shall
complete requirements shall be deemed approved

SEC. 13. Simplification and Streamlining of NHMFC’s Securitization. - The
NHMFC and all regulatory or oversight agencies involved in or affecting the expeditious
accomplishment of the NHMFC’s securitization and related mandates and functions shall, in
coordination with the ARTA, agree upon and jointly establish and implement simplified and
streamlined requirements and processes, to facilitate and expedite the NHMFC’s securitization
and provision of liquidity to the housing sector.

SEC. 14, System Evaluation. ~ The DHSUD shall be the lead agency responsible for
monitoring and evaluating the performance of the component programs of the Enhanced
National Shelter Program. In relation to this mandate, the DHSUD shall monitor and analyze
conditions in the housing ecosystem that impact supply and affordability, including
demographic change, economic conditions, credit market conditions, taxation, macro-
prudential regulation, zoning regulation, and climate change impacts, and, based on this
analysis, shall recommend enhancements or modifications to housing programs.

SEC. 15. Implementing Rules and Regulations. - The DHSUD, in coordination with
other concerned agencies, shall prepare and issue the Implementing Rules and Regulations
(IRR) within ninety (90) days upon the effectivity of this Act, in addition to the other IRRs to
be issued by Bureau of Internal Revenue and ARTA in accordance with this Act

SEC. 16. Appropriations. - The funds necessary for the implementation of this Act
shall be charged against current and available appropriations of concerned agencies, subject to
pertinent budgeting, accounting, and auditing laws, rules and regulations. Thereafter, the


funding requirements for succeeding years shall be included in the annual GAA, subject to the
usual budget preparation process.

SEC. 17. Oversight Committee. - There is hereby created a Joint Congressional
Committee to oversee the implementation of this Act. The Committee shall be composed of
the Chairperson of the Senate Committee on Urban Planning, Housing and Resettlement and
four (4) members thereof appointed by the Senate President and the Chairperson of the House
Committee on Housing and Urban Development and four (4) members thereof to be appointed
by the Speaker of the House of Representatives. The minority groups in the Senate and the
House of Representatives shall each have one seat in the Joint Congressional Committee. The
DHSUD shall submit annually to the Joint Congressional Committee a detailed report on the
implementation of this Act.

SEC. 18, Separability Clause. ~ Any portion or provision of this Act that is declared
unconstitutional shall not have the effect of nullifying other portions or provisions hereof as
long as such remaining portions can still subsist and be given effect in their entirety

SEC. 19. Repealing Clause. — Sections 3, 4, 5 and 8 of Presidential Decree No. 1267,
(NHMFC) all laws, executive orders, proclamations, rules, regulations, and other issuances or
parts thereof which are inconsistent with the provisions of this Act are hereby amended or
modified accordingly.

SEC. 20, Effectivity. - This Act shall take effect fifteen (15) days after its publication
in the Official Gazette or in any newspaper of general circulation