Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
Second Regular Session

House Bite no 180

Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.

SEE

EXPLANATORY NOTE

Metro Manila is one of the biggest and most densely populated megacities in the

World. It is home to almost 13 million people which makes it the 3" most populous urban

area in the world. This is also home to more than three million slum dwellers or individuals

illegally occupying improvised housing units in spaces owned by the government or

private entities without proper sanitation, safe water supply, electricity and/or other basic
human necessities.

Slum dwellers are mostly those-seeking for greener pastures in the Metro-only to.
find themselves unable to afford decent housing and end up being one of those who are
homeless. They are the ones that seek for better opportunities in the city because of
limited available jobs in their hometowns while some are internally displaced persons
(IDP) due to natural hazards and armed conflicts. There are also those that still await
relocation from the past typhoons that rendered them homeless — such as Yolanda,
Ondoy, Pepeng, Rolly, Quinta and Ulysses among others. The Urban Poor Associates
(UPA), a non-government organization monitoring eviction cases, reports that from the
years 1996 to June 2008, a total of 287 demolition cases have rendered more than 85,000
families or more than 400,000 persons homeless. They are the poorest, and the most
vulnerable in this country.

This bill intends to reduce, if not eradicate, homelessness in urban areas by
providing access to socialized housing units to our underprivileged and homeless citizens.
They shall be granted affordable and graduated amortization payment schemes, as well


as an opportunity to render manual service in the construction of their homes ~ reliving
the bayanihan spirit in these communities.

We also need to tap the inter-agency partnership of the National Housing Authority
(NHA), Home Development Mutual Funds (HDMF/PAG-IBIG), and the Department of
Interior and Local Government (DILG) to ensure the efficient implementation of this

A good housing is a necessity that provides not only shelter and security but also
@ sense of dignity. Hence, it is unfortunate that housing has remained a serious but
unresolved problem in this country. The- humble intent of this bill is to institutionalize the
Provision of socialized housing units in urban areas so that we will have fewer families
sleeping in the streets, or risking their health and safety in shanties subject to demolition,
‘The State has to meet the backlog of six million housing units to adequately cater to the
housing needs of our people, otherwise, the figures are only expected to go up given the
population increase, inept bureaucratic processes, and rapidly urbanizing areas.

In consideration of the foregoing premises, the passage of this bill is eamestly
sought.

ly a

LUIS RAYMU RAY” F.VLLAFUERTE, JR.


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Queson City

EIGHTEENTH CONGRESS
‘Second Regular Session

House BILL No8180

Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.
—

AN ACT

ESTABLISHING A BAYANIHAN HOMEBUILDING PROGRAM FOR LOW INCOME
GROUPS THROUGH GRADUATED AMORTIZATION PAYMENT (GAP) SCHEME
AND-FOR OTHER PURPOSES.

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

SECTION 1. Title. — This Act shall be known as the “Bayanihan Homebuilding Program
Act of 2020."

SECTION 2. Declaration of Pc
Promote the national shelter program and to implement a continuing program of socialized

y. ~ Itis hereby declared the policy of the State to

housing which will make available, at affordable cost, decent housing and basic services
to low-income families in urban centers and rural areas. Towards this end, a self-help

homebuilding mechanism, the Bayanihan Homebuilding Program, shall be established.

SECTION 3. Objectives. - The objectives of this Act shall be as follows:

a) Enhance the capability of low-income groups to acquire decent and low-cost

housing units through the introduction of self-help homebuilding mechanisms and

facil

ies which will render affordable such acquisitions;

b) Eradicate homelessness and poverty housing by means of conducting simple,
decent and affordable housing for low income families;


©) Enjoin the active participation of local government units and encourage people's
effective participation in the development process of socialized housing programs
through adequate measures for house construction in their respective areas;

4) Serve the housing requirement of the underprivileged and those gainfully
‘employed, and the members of the funding agencies such as the Government
Service Insurance System (GSIS), Social Security System (SSS), and Home
Development Mutual Fund (HDMF/PAG-IBIG).

SECTION 4. Definition of Terms. - As used in this Act, the following terms shall mean:

a) “Affordable cost” refers to the most reasonable price of land and shelter based on
the needs and financial capability of Bayanihan Homebuilding Program
beneficiaries and appropriate financing scheme.

b) “Graduated Amortization Payment” refers to the mode of payment wherein
Principal payments are deferred on the first few years of the term of the loan and
designed to enhance the affordability to the beneficiary through a mechanism of
increasing monthly amortization over the term of the loan.

©) “Socialized housing’ refers to housing programs and projects covering houses and
lots or home lots only undertaken by the government or the private sector for the
underprivileged and homeless citizens which shall include sites and services
development, long term financing, liberalized terms on interest payments and such
other benefits in accordance with the provisions of this Act.

) “Slum or blighted area” refers to any area where dwellings predominate which, by
reason of dilapidation, overcrowding, faulty arrangement of these factors, are
detrimental to safety, health, or morals,


€) “Bayanihan Homebuilding’ refers to the cooperative endeavor of volunteers and
qualified beneficiaries of this Act to invest time and labor for the construction of
their simple, decent and affordable homes.

f) “Underprivileged and homeless citizens" refers to beneficiaries of this Act and to
individuals or families residing in urban and urbanizable areas whose income or
combine household income falls within the poverty threshold as defined by the
National Economic and Development Authority (NEDA), and who do not own their
own homes. This shall include those who live in makeshift dwelling units and do
not enjoy security of tenure,

SECTION 5. Eligibility Criteria for Bayanihan. - To qualify for the Bayanihan
Homebuilding Program, a beneficiary:

a) Must be a Filipino citizen;

'b) Must be underprivileged and homeless citizen, as defined in Section 4(f) of this
Act, or if gainfully employed, must be a member of the GSIS, SSS, or
HDMF/PAGIBIG, who applied for a socialized housing loan not exceeding One
Hundred Eighty Thousand Pesos (P180,000.00);

¢) Must not own any real property, whether in the urban or rural areas;

d) Must not be a professional squatter or a member of a squatting syndicate; and

e) Must render at least 400 hours of volunteer labor for the construction of his own
house.

SECTION 6. Registration of Bayanihan Homebuilding Program Beneficiaries. - The
Housing and Urban Development Coordinating Council (HUDCC), in coordination with


the local government units, shall design a system for the registration of qualified
Bayanihan Homebuilding Program beneficiaries.

The local government units, within one (1) year from the effectivity of this Act, shall identify
and register all beneficiaries within their respective localities,

SECTION 7. Participation of Volunteers. — Volunteers who are willing to render
community service in the construction of homes for beneficiaries under this Act may
Participate and register in the Bayanihan Homebuilding Program subject to the
requirements set by the local government units concerned within their respective
localities.

SECTION 8. Graduated Amortization Payment (GAP) Scheme. — All duly accredited
government financial institutions granting socialized housing loans to eligible Bayanihan
Homebuilding Program beneficiaries shall adopt and implement the graduated
amortization payment as the mode of payment for such loans,

‘The graduated increase in the amortization payment over the term of the loan shall be
jelines of duly

computed in accordance with the following conditions subject to the gi
accredited government financial institutions:

1) The initial payment of amortizations shall be made within thirty (30) days upon
occupancy of the home unit;

2) The monthly amortization payments for the first ten (10) years shall be fixed at a
minimum amount of Five Hundred Pesos (P500.00);

3) The graduated increase in the amortization payment not exceeding Two Hundred
Fifty Pesos (P 250.00) shall commence on the 11" year and every three (3) years
thereafter.

4) The amortization payments shall not exceed forty percent (40%) of the borrower's
net disposable income. For this purpose, the net disposable income shall be
defined as the gross verifiable monthly income less statutory deductions and


amortizations of outstanding loan obligations. The monthly income shall be based
on the income tax retumn(s) (ITR) with W-2 Form(s) duly received by the Bureau of
Internal Revenue (BIR) or other documents acceptable to duly accredited
government financial institutions.

SECTION 9. Loan Period. - The loan period shall not be more than thirty-five (35) years
ference between the age of the borrower

and shall be shortened correspondingly to the
at the time of the loan approval and retirement age.

SECTION 10. Interest Rate. — The goverment financial institutions (GFls) shall charge
the borrowers a fixed rate of nine percent (9%) per annum for the term of the location.

SECTION 11. Agency Responsibilities. — Anent the implementation of the Bayanihan

Homebuilding Program, and subject to the limitations and requirements of their respective
charters and other existing laws, and without impairing their financial or required reserve

positions, the following agencies are directed as follows:

a) National Housing Authority (NHA). — The NHA shall be the goverment agency
engaged in the direct shelter production. It shall focus its efforts in providing
housing assistance to the lowest 30% of urban income-eamers through sium
upgrading, squatter relocation, development of sites and services, and
construction of core-housing units. In addition, it shall formulate the mechanism for
the participation of the registered Bayanihan Homebuilding Program beneficiaries
and volunteers in the construction and building of their home units. Further, it shall
promote the use of indigenous, alternative and low-cost construction materials and
technologies for socialized housing.

b) Home Development Mutual Funds (HDMF/PAG-IBIG). — The HDMF/PAG-IBIG
shall administer provident fund contributions collected from member employee and
employers, utilizing funds not required for provident benefits for housing loans for
members, and, in addition will be charged with the development of saving scheme
for home acquisition.


c) Department of Interior and Local Government (DILG). - The DILG shall facilitate
coordination and ensure smooth implementation of the Bayanihan Homebuilding
Program at the local government level.

SECTION 12. Implementing Rules and Regulations. - The Chairman of HUDCC in
coordination with the NHA, HDMF/PAG-IBIG, and DILG shall promulgate rules and
regulations necessary for the implementation of this Act.

SECTION 13. Separability Clause. — If any part or provision of this Act shall be held
unconstitutional or invalid, other parts or provisions hereof which are not affected thereby
shall continue its full force and effect.

SECTION 14, Repealing Clause. - any law, decree, rules and regulations, executive
orders or parts thereof inconsistent with this Act are hereby repealed or modified
accordingly.

SECTION 15. Effectivity. — This Act shall take effect fifteen (15) days after its publication
in at least two (2) newspapers of general circulation in the Philippines.

Approved,