EIGHTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
S E N A T E  
s. No. 
6 B 0
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aclil
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ot i:’f &l'trftnr?
Introduced by SENATOR RAMON BONG REVILllX, Jll1!' 22 P2 °
R EC EI/ l D L
AN ACT
TO PROVIDE FOR A HOUSING PROGRAM FOR TEACHERS
EXPLANATORY NOTE
The state of our economy today makes it almost impossible for our public school 
teachers to achieve something so basic to a quality of life they deserve, and that is to have 
a place to call home. Realistically, the current economic climate makes searching for 
affordable housing almost impossible and this dilemma resonates through almost all sectors 
of society, especially for our noble public school teachers.
Most of these teachers cannot afford to have their own homes since property rates 
have gone up to unattainable numbers. Despite the salary adjustment our public school 
teachers received, it still doesn't permit them to own a home in this trying economic weather. 
In addition to this, more than 20% of our public school teachers have unemployed spouses, 
they bear the burden of putting food on the table and being the breadwinner struggling with 
a limited income, just trying to make ends meet.
There have been efforts to solve this dilemma by providing for a special homing 
facility through the state pension fund. However, its implementation got caught up in the 
web of politics and never pushed through. Thus, it is imperative that we provide for a stable 
housing program for our teachers through legislation.
This Act aims to institute a housing program for teachers by providing funds through 
loans at very affordable interest and flexible repayment period, which our teachers can use


to purchase a housing unit of their own choice. It also seeks to involve the private sector in 
providing housing units exclusively for teachers through the grant of fiscal incentives.
The State recognizes the plight of our noble teachers, hence, the passage of this bill 
is into law is earnestly sought.
RAMO|/b6 nG r e v il l a , JR.


EIGHTEENTH CONGRESS OF THE 
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REPUBLIC OF THE PHILIPPINES 
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First Regular Session 
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S E N A T E  
S. No. 
RRO
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(©Kicf of Ilje fri'crrtnrp
*19 
Jill 22 P2 :Q7
Introduced by SENATOR RAMON BONG REVILLA, JR.
_________________________________ ________________________________ RECEi liL li'
AN ACT
TO PROVIDE FOR A HOUSING PROGRAM FOR TEACHERS
Be it enacted by the Senate and House o f Representatives o f the Philippines in 
Congress Assembled:
Section 1. Title. - This Act shall be known as the 'Teacher's Housing Program". 
Sec. 2. Declaration o f Policy. - It is hereby declared the policy of the State to 
uplift the living conditions of teachers and promote a housing program to enable them 
to acquire their own housing units. To this end, the State affirms its commitment to 
strength, promote, and support the component activities of housing production and 
finance in order to enable teachers to acquire decent housing and basic services at 
the lowest affordable price.
Sec. 3. Coverage. -The Program shall cover the teachers of the Department of 
Education (DepEd) with a permanent status.
Sec. 4. Role o f Government Housing and Financing Agencies. -To ensure the 
accomplishment of the objectives under this program, the hereunder mentioned 
housing agencies shall perform the following in addition to their respective existing 
powers and functions:
(a) The National Housing Authority shall undertake special 
housing projects for teachers. In addition, it may also provide 
technical and other forms of assistance to private developers 
in the development of housing projects;


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(b) The National Home Mortgage Finance Corporation shall 
provide the mortgage market for teacher’s housing through the 
purchase of
Teacher's housing mortgages and/or issuance of securities. It 
shall administer the funds provided for housing loans and 
developer assistance under this Act as well as long-term funds 
provided by the Government Service Insurance System and the 
Home Development Mutual Fund for teacher's housing.
(c) The Home Guaranty Corporation shall design an appropriate 
guarantee scheme to encourage financial institutions and 
private developers to undertake mass housing production for 
teachers. It shall administer the Guarantee System Fund as 
provided for under this Act.
(d) The Government Service Insurance System and the 
Development Mutual fund shall be the primary provider of 
funds for long-term housing mortgages.
Sec. 5. Role o f the DepEd. -The Department of Education shall undertake the 
implementation of the program among its teachers and shall ensure collection of 
amortization payments through a salary deduction scheme In line with this, the DepEd 
shall:
(a) Create a Teacher's Housing Secretariat which shall issue 
and collect the necessary documentation, receive and process 
application, and transfer the same to the appropriate housing 
agencies;
(b) Deduct amortization from their teachers on a monthly basis 
and remit the same to the appropriate agency.
Sec. 6. Program Financing Scheme. - In the implementation of the Teacher's 
Housing Program, the following shall consist the financing scheme:
(a) Housing Loans for Teachers which shall be used for any of 
the following purpose:


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ii.
III.
1. Purchase of a lot and construction of a residential unit 
thereon;
2. Purchase of any of the following: 
i. 
brand new or old existing units;
housing 
properties 
mortgaged 
with 
any 
institution;
housing assets being disposed through public 
bidding or negotiated sale;
3. Purchase of a fully developed lot within a residential area;
4. Construction of completion of a residential unit on a lot 
owned by the beneficiary;
5. Home' improvement or any alteration in an existing 
residential unit;
6. Restructuring of an existing housing loan in any government 
housing of financial institution, provided that the account is 
updated.
Loans provided under this program shall be computed based on a net take 
home pay which shall not be lower than Three Thousand Pesos (Php 3,000.00). The 
interest rate on the loan shall not be more than twelve percent (12%) per annum and 
shall be fixed for the entire term of the loan. Provided, That if the borrower defaults 
on his amortization payment for reasons of his own doing, the financing agency may 
subject the borrower to a regular interest rate for the periods that he/she is in default.
To increase the benefits provided to teachers, loans under this scheme shall 
not be subject to such charges, fees or premiums except minimum processing fees to 
be charged by the appropriate agencies.
Loans provided for teachers earning less than Twelve Thousand Pesos (Php 
12,000.00) per month shall not be less than sixty percent (60%) of all available funds 
allotted for this purpose. At least forty five percent (45%) of the year appropriation 
for the Program shall be for Housing Loans.
(b) Developer Assistance Fund -  Proponents or developers of 
housing projects exclusively for teachers and with a selling cost


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not exceeding One Hundred Twenty Thousand pesos (Php 
120,000.00) per house and/or lot package which shall be 
available exclusively for teachers, may avail of a financing loan 
not exceeding eighty percent (80%) of the entire project cost.
The National Home Mortgage and Finance Corporation, in 
coordination with the HUDCC, shall issue the appropriate 
guidelines for this purpose.
At least fifteen percent (15%) of the early appropriation for the program shall 
be for developer financing: Provided, that the unused funds for developer financing 
shall be utilized for Housing Loans.
(c) Guarantee System Fund -  There is hereby created a 
guarantee system fund for Teacher's Housing Loans not 
exceeding One Hundred Fifty Thousand Pesos (Php 150,000.00) 
with an interest rate of not exceeding twelve percent (12 
percent) per annum as originate by the funding agencies or 
their accredited financial institutions. Such loans shall be 
assigned to the Fund immediately after origination for which 
the Fund shall issue promissory notes.
At least forty percent (40%) of the yearly appropriation for the Programs shall 
be for the loan guarantee. The Home Guarantee Corporation shall undertake the 
guarantee system under this act and shall act as the administration and trustee of the 
fund. The HGC shall issue the appropriate guidelines within one (1) year from the 
approval of this Act.
Sec. 7. Fiscal Incentives for Private Sector participation in Teacher's Housing. - 
Private sector developers who participate in the development of teacher's housing 
shall be entitled to the following fiscal incentives:
(a) Exemption from income taxes for housing projects 
exclusively dedicated for teachers;
(b) Exemption from capital gains tax on housing projects 
exclusively dedicated for teachers;


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(c) Exemption from documentary stamp tax for all project 
related documentation;
(d) Exemption from value-added tax for the project concerned;
(e) Exemption from transfer taxes for both raw and completed 
projects; and,
(f) Exemption from donor's tax for lands certified by the local 
government units to have been donated to teacher's housing 
purposes.
Provided, That upon application for exemption, the housing development plan 
shall have already been approved by the appropriate government agencies concerned: 
Provided further, that all the savings acquired by virtue of this provision shall be used 
to minimize the cost of the housing units subject to the implementing guidelines to be 
issued by the Housing and Urban Development Coordinating Council.
The Department of Finance, in consultation with the Housing and Urban 
Development Coordinating Council, shall prepare the necessary implementing 
guidelines for the proper implementation of the tax exemption mentioned in this 
section within one (1) after the approval of this Act.
Sec. 8. Funding Source. - The Government Service Insurance System and the 
Home Development Mutual Fund shall contribute a total of Two Billion Pesos 
(P2,000,000,000) for the initial implementation of the Program. Thereafter, each 
institution shall allocate at least ten percent (10%) of their annual investible funds for 
long-term teacher's housing mortgages and shall be made available to the National 
Home Mortgage and Finance Corporation under terms which ensure their repayment. 
The National Government shall contribute One Billion Pesos (P1,000,000,000) annually 
for the continuous implementation 
of the Program.
Sec. 9. Appropriation. - The amount necessary to carry out the purposes of this 
Act shall be included in the General Appropriations Act of the year following its 
enactment into law and every year thereafter.
Sec. 10. Separability. - If for any reason, any provision of this Act is declared 
invalid or unconstitutional, the remaining provisions not affected thereby shall 
continue to be in full force and effect.


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Sec. 11. Effectivity. - This act shall take effect fifteen (15) days after its 
complete publication in at least two (2) national newspapers of general circulation.
Approved,