Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
TWENTIETH CONGRESS 
First Regular Session 
HOUSE BILL NO. 2783
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 proposed Enhanced National Shelter Program Act aims to establish affordable 
housing for low-income and middle-income sectors as part of our State’s mandate to uplift the 
standard way of living of every Filipino. 
The right to a safe, adequate, and affordable housing is a fundamental human right 
specifically enshrined in the 1987 Constitution, which states: “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…” (Article XIII, Section 9). 
Currently, the Philippines is experiencing critical housing problems, as there is still a 
massive shortage of safe and affordable housing. According to the Philippine Institute of 
Development Studies, the country’s housing backlog needs further attention because of the 
projection of the United Nations-Habitat stating that the housing needs might increase from 6.5 
million to 22 million by 2040 if we do not aim to address this concern. Unfortunately, we 
continue to experience this backlog due to bureaucratic inefficiencies and inadequate budget 
allocation. There are about 4.5 million Filipinos who are homeless, with 3 million of them 
residing in Metro Manila.  
Securing a residence in the Philippines is not an easy feat, as housing prices continue 
to surge while our take home wages have not improved over time. Thus, majority of Filipinos 
resort to rent instead of investing in permanent homes. For low-income families, even the idea 
of renting a dwelling place is financially unachievable, leading many to live in slums, which 
congest urban areas. This further leads to all kinds of pollution such as air, water, noise, and 
land. Instead of creating a friendly and hospitable environment for everyone to settle in, the 
growing population in urban areas makes it difficult for the government to exercise its powers 
to manage and regulate pollution.  
It is reported that an estimated 3.7 million informal settler families choose to live in high-
risk zones that are mostly flood-prone and pose health and safety hazards. Thus, the 
government institutionalized the Pambansang Pabahay Para sa Pilipino (4PH) Program in 
2022 to establish one million housing units per year until 2028, with the main goal of eliminating 
informal settlements. As per the Department of Human Settlements and Urban Development, 
several housing buildings were completed in 2024 and are ready for turnover.  
Therefore, to further support the government’s initiative to provide safe, healthy, and 
July 31, 2025
10:47 pm


affordable housing, the passage of this bill is earnestly sought for. 
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. 2783 
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 ENHANCING THE NATIONAL SHELTER PROGRAM, REVITALIZING AND 
STRENGTHENING THE HOUSING FINANCE ECOSYSTEM, 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 "Enhanced National Shelter 
Program Act." 
SECTION 2. Declaration of Policy. – It is hereby the policy of the State to establish a 
continuing program of housing which will make available at affordable cost to under-privileged 
and homeless citizens to uplift their standard way of living. Through the different policies and 
initiatives of the government to ensure that every Filipino will have access to affordable 
housing, the State’s goal, aligned with the Philippine Development Plan 2023-2028, will be 
achievable and sustainable.  
SECTION 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. 
 
SECTION 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. 
 
SECTION 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. 
 
SECTION 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; 
 
(c) Time-limited rental subsidies for the families provided that the households availing the 
rental subsidy meet the following criteria: (1) they are in need of temporary 
accommodations while awaiting their relocation/resettlement to the 4PH housing units 
and (2) they do not have access to any similar rental assistance program of the 
government. 
 
SECTION 7. Additional Capitalization of NHMFC. – The authorized capital stock of the 
NHMFC is hereby increased from P5,500,000,000.00 to P50,000,000,000.00 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 shall be funded from a continuing 
annual appropriation under the GAA, as well as, from all the declared dividends and tax 
payments of the NHMF C 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. 
 
SECTION 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. 
 
SECTION 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 GAs 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. 
 
SECTION 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. 
 
SECTION 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 concerned 
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. 
 
SECTION 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. 
 
SECTION 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. 
 


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