Republic of the Philippines
HOUSE OF REPRESENTATIVES,
Quezon City. Metro Manila

NINETEENTH CON
First Regular Session

1325

ES!

HOUSE BILL NO. _~'

Introduced by Representative van Howard Guintu

EXPLANATORY NOTE

Shelter is a basic necd and as such, the state should always endeavor to
provide its citizens with affordable if not free housing especially to those who have
less in life. Though we may have existing housing policies that do just that, there
appears to be certain incongruities in them so much so that there are houses
available for distribution but there are no takers, mistakenly insinuating a seeming
surplus when in reality the perennial problem of housing shortage persists. Most of
the reasons were the location of the housing project where options for publie
transportation are lacking, unavailability of public utilities, or just that even if low-
cost housing appear truly affordable, the intended beneficiaries really have not much
or have little to be able to pay.

In order to discount the financial capacity as a criterion for an indigent
Filipino to finally have decent housing, this measure seeks to provide shelters to
qualified beneficiaries under a scheme legally known as a usufruct. In this manner,
housing beneficiaries will be allowed free use of the housing unit as a usufructuary,
with the state through its agencies retaining ownership and title to the subject
property. There will be no limitation as to how long the usufruct subsists, so long as
the beneficiary qualifies under conditions set forth under this act, one will enjoy the
benefits of the program. But controls will be in place so that the program will not be
exploited such that the beneficiary is not allowed to rent, lease, sell or in any manner
transfers and allow another person to enjoy the usufruct. Such violation will result in
the forfeiture of the benefits and the disqualit tion of the beneficiary from
participating in any housing program of the government.

Usufruct as a program to provide housing to citizens in need has been a
success in many of our other ASEAN neighbors namely Singapore and Malaysia, and
some of our local government units has made strides of success i
same for their constituents. It is high time that the state considers the
national policy thus discussion and consequent approval of this measure
sought.



In view of the foregoing, the passage of this bill is earnestly sought.

GUINTU
five. Pinuno Partylist


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

NINETEENTH CONGRESS
First Regular Session

uouse Bit Nno,_1325

Introduced by Representative Ivan Howard Guintu

ING A NATIONAL POLICY OF FREE HOUSING THROUGH
USUFRUCT, PROVIDING FUNDS THEREFOR, AND FOR OTHER PURPOSES

Be it enacted by the Senate and the House of Represematives of the Philippines in Congress
assembled:

SECTION I. Short title. This Act shall be known as the “Free Housing Through
Usufruct Act of 202.

SEC 2. Statement of Policy. As part of its mandate to promote a just and dynamic
order, it should be the policy of the state to institute programs aimed at prov’
people access to housing and should pursue avenues that would make housing free to its
citizens in need of it.

$0 ig its

SEC 3. Free Housing Through Usufruct Program, The National Housing Authority
(NHA), Local Government Units (LGU) and other government agencies engaged in housing,
in implementing their housing programs, shall as far as practicable. distribute housing units to
qualified beneficiaries for free through contracts of usufruct,

‘The NHA, LGU or other government agency engaged in housing or implementing
in ownership of title to the housing unit, with the
beneficiary as usufructuary, allowed to enjoy the use of the property.

1g projects. as usufructor, shall ret

SEC 4. Qualified Beneficiaries. Only underprivileged and homeless
without known ownership of any real property anywhere in the country may be bene!
of the free housing through usuftuct program. However. LGUs and other government
agencies may extend the benefit to qualified personnel as part of its employee housing
program provided that the beneficiary does not own any real property within the territory of
the LGU of employment.

SEC 5, Inclusions of the Usufruct. Usufruct shail only include use of the property.
Charges for utilities such as electricity, water and communication shall be for the account of


the beneficiary unless otherwise provided for by the LGU as included in the usufruct
contract,

SEC 6. Period of Usufruct. Vhe beneficiary shall continue to enjoy use of the
property until disqualified under Section 4 of this Act. In the event of death of the
beneficiary. the next of kin shail have priority to take over the usuftuct provided that the next
of kin is qualified under the same section of this Act.

SEC 7. Prohibitions on the Usufruct. The beneficiary shall not lease. rent. sell or in
any other manner transfer possession of the property under usufruct nor shall it be allowed to
be used in whatever manner by any person other than the beneficiary or his immediate
family. Further, the property shall only be used by the beneficiary for residential purposes.
Violation of these prohil
disqualification of the violator as beneficiary of any housing program by the government.

jons shalt result in the forfeiture of the usufruct and constitute

SEC 8. Financing, Ownership and Management, The NHA shall provide financial
and technical assistance to the LGUs in the implementation of the program. Regardless of
ownership of title to the properties subject of the program, the LGU where the housing
project is located shall be responsible with the management and maintenance of the
properties subject of the program. For purposes of this section, management shall include the
determination of the beneficiaries of the program and maintenance shall include insuring that
adequate utility services are accessible to the beneficiaries.

SEC 9. Appropriation. An appropriation in the amount of Five Billion Pesos
(P5.000,000.000.00) is hereby allocated to the NHA as seed fund which will be tapped as,
assistance to IGUs for the implementation of the program. Subsequent allocations shall be
appropriated in the annual General Appropriations Act as is needed to sustain the program

SEC 10. Implementing Rules and Regulations, The NIA, Department of the Interior
and |.ocal Government (DILG) and the Department of Human Settlements and Urban
Development (DHSUD) shall promulgate the rules and regulations for the effective
implementation of the provisions of this Act.

SEC 11. Separability Clause, Should any provision of this Act or any part thereof be
declared invalid, the other provisions. insofar as they are separable from the invalid ones,
shall remain in full force and effe

SEC 12. Repealing Clause. All laws. orders. issuances. rules and regulations or parts
thereof inconsistent with this Act are hereby repealed or modified accordingly.

SEC 13. Effectivity. This Act shall take effect fifteen (15) days after its complete
nat least two (2) newspapers of general circulation.

public

Approved.