Republic of the Philippines
House of Representatives
Quezon City
NINETEENTH CONGRESS
First Regular Session
HouseBill No.   8083
Introduced by Representative Albert S. Garcia
EXPLANATORY NOTE
This  bill  aims to  institutionalize the Pambansang Pabahay Para sa P/.//.p/.no program
(4PH).  The flagship  housing  program  of the  Marcos administration  under the  Department of
Human Settlements and Urban Development (DHSUD), 4PH aims to provide 6 million housing
units to qualified  informal  settler families within a  6-year time span  (with the goal of 1  million
units   per   year).    Given   the   country's   ongoing   challenges   in   housing,   the   sustained
implementation  of the  4PH  will  be  an  important  step  towards  ensuring  that  informal  settler
families are able to avail of safe and more permanent homes. In view of the foregoing, approval
of this bill is earnestly sought from my colleagues.
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Republic of the Philippines
House Of Representatives
Quezon City
NINETEENTH CONGRESS
First Regular Sessio.n
HouseBillNo.    8083
Introduced by Representative Albert S. Garcia
AN ACT
INSTITUTloNALIZING    THE    PAMBANSANG    PABAHAY    PARA    SA    PILIPINO
PROGRAM
Be it enacted  by the  Senate and the  House of Representatives of the  Philippines in
Congress assembled-.
I             SECTION 1.  Tit/e. -This Act shall be known as the   "Pambansang Pabahay para
2       sa pilipino programActof2023."
3            SEC. 2. Dec/arati.on ofpo//.cy.  -lt is hereby declared a policy of the state to pursue
4      a continuing program of housing and urban developmentwhich shall make available at
5      affordable cost, decent housing and basic services especially the underprivileged and
6       homeless citizens  by establishing  a  housing  interest subsidy  program with  particular
7      focus on assisting informal settler families (lsFs) acquire their own decent housing.
8           SEC. 3. The pambansang pabahay para sa pilipino program -The Departrmeut
9      of   Human   Settlements   and   Urban   Development   (DHSUD)   shall   implement   the
10      Pambansang pabahay para sa pilipino program, hereinafter referred as the "Program",
11       which shall have the following objectives:
12              (a) Develop one million housing units every year;
13             (b) Prioritize the lowest 30% income decile of the population and low wage earners
14                    as primary beneficiaries of the program;
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(c) Pursue innovative strategies to make housing finance accessible and  housing
units  affordable  to  the  target  beneficiaries,  through   but  not  limited  to  the
following:
(1 ) Allocate government funds for the payment of housing interest support to
lower    the    monthly    interest    rate    payment    of    qualified    program
beneficiaries;
(2) Utilize vacant, idle, blighted and/or under-utilized government and private-
owned lands for housing and mixed~use development;
(3) Tap government financing institutions (GFls) and private banks to provide
development loans & end-user financing; and
(4) Promote varied forms of modalities in implementing housing and mixed-
use development.
(d) Capacitate and support the local government units (LGUs) as one of the main
project proponents in implementing housing projects; and
(e) Encourage  and  incentivize  the  private  sector  to  participate  in  the  program
implementation.
SEC. 4. Program components. -
(a) Site   identification.   -As   the   main   project   proponents,   the   LGUs   shall,   in
coordination with the DHSUD.  be responsible for project site identification and
the  development  of their  respective  residential  projecvs.  LGUs  may  engage
and/or enter into a joint venture with government entities or private developers
or builders, to undertake and construct housing  projects using  DHSUD-guided
housing parameters.
The following lands may be used for the housing projects:
(1 )  LGU-owned property. The property identified for the project should  have a
"clean" or a "near-clean" title. For this purpose, a "clean title" shall be defined
as one that is registered in the name of the LGU and is entirely free of any
lien or encumbrance. On the other hand, a "near-clean title" shall be defined
as one that is affected by a lien or encumbrance including any adverse claim
or interest or any issue, complication or obstacle that can be resolved within
the timeframe needed for its utilization and the completion of the project.
(2)  NGA-owned  property.  LGUs who  intend  to  use  the  properties  of National
Government  Agencies  (NGAs)  for  their  housing  projects  shall  be  mainly
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responsible for securing the issuance of authority to use such land and/or
the disposal/transfer thereof to them from the NGAs concerned.
(3)  Privately-owned  property.   Private  landowners  of  blighted  areas  or  land
occupied by ISFs are encouraged to participate in the 4PH Program by (a)
donating  their land,  or (b)  selling  their properties at a  reduced/discounted
price. Subject to the cap on the proposed selling price of the planned housing
units, the LGUs may consider purchasing such land or entering  into a joint
venture agreement with the owner, subject to compliance with appropriate
government laws and regulations.
(b) Housing  design.  -  LGUs shall  be  responsible for preparing the  parameters of
their  proposed   housing   projects,   in   accordance  with  existing   government-
prescribed laws and standards, and the following DHSUD design and proposed
price ceiling parameters for projects to be accredited under the Program.
(c) Housing construction. - LGUs shall procure or select qualified developers and/or
contractors  to  construct  the  proposed  housing  project/s  in  accordance  with
applicable government rules and regulations.  Notwithstanding the entry of new
developers   and   contractors,   the   LGUs   are   encouraged   to   invite   housing
developers who are known to have good standing and have already undertaken
projects  within  their  areas  of jurisdiction  and  need  to  develop  corresponding
socialized    housing    projects    in    compliance    with    the    balanced    housing
development program requirement.
(d) Financing for the housing project. -The Pag-lBIG Fund (HDMF), as well as other
GFls and private banks, shall make their funds available for the LGUs' housing
projects through their respective developmental loan programs. They shall also
participate by providing end-user financing to homebuyers;
(e) Beneficiaries. - LGUs shall set the eligibility criteria for, and identify. the project
beneficiaries.  In formulating  such criteria,  they shall  coordinate with  GFls and
private banks that will provide end-user financing to ensure alignment of all their
selection criteria particularly as regards the credit- worthiness and amortization
capacity of potential buyer-beneficiaries.
Beneficiaries must be capable of and committed to paying the monthly housing
loan amortization over the 30-year loan term, to the GFls or private banks. The
above notwithstanding, LGUs and their development partners are not prohibited
from  developing  housing  projects that  incorporate  or provide  cross  subsidies
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between different income classes so as to benefit more ISFs and lower- bracket
wage earners.
(f)  Subsidy on amortization and interest. -The DHSUD shall, directly or through its
attached  corporations,  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/or
other identified funding sources.  LGUs are also encouraged to provide monthly
amortization support to buyer-beneficiaries of the units, if needed to enable them
to meet their monthly amortization obligations.
SEC. 5. Ro/es and Responsi.bi./i-tr.es. -The implementing agencies shall, at the
11       minimum, undertake the following roles, functions, and responsibilities:
12      (a)  Department of Human settlements and urban Development (DHSUD)
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(1 ) Act as the overall initiator, coordinator, and facilitator, of the Program;
(2)  Facilitate the provision of funds through the GAA, Key Shelter Agencies (KSAs),
GFls and private banks, for use as: (a) development loans, (b) interest support
for the  program's  project  beneficiaries,  (c) end-user financing,  (d)  guarantee
financing, and (e) purchase of loan accounts;
(3) Oversee and monitor the implementation of the Program, including the project
implementation and performance of all participants;
(4) Provide parameters/specifications, extend support and technical assistance to
LGUs,   developers,   and   other   program   partners   including   facilitating   the
issuance  of  Development  Permits  and  Licenses  to  Sell  within  its  areas  of
responsibilities; and
(5) Perform  such  other roles,  functions and  acts which  it may deem  proper and
necessary for the effective and full implementation of the Program;
26      (b)  Local Government units (LGUs)
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(1)   Act as the  main  proponent and  major player in the  planning,  implementation
and management of their respective housing projects;
(2)   Have the primary responsibility of identifying lands for potential project locations
as well as making it available for their proposed housing projects;
(3)   Determine  and  prepare  the  project  concept  to  be  used  for  their  housing
projects;
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(4)   Determine the implementation modalities for each of their envisioned housing
projects, including which project to undertake on its own, through joint venture,
or using other options;
(5)   Identify the project proponent that would  undertake the development of each
project, whether solely or in joint venture with third parties;
(6)   Identify,  select  and  enter  into  agreements  with  qualified  developers  and/or
contractors to implement their proposed housing projects, in accordance with
applicable government laws, rules and regulations;
(7)   Provide  support  to  their  priority  housing  projects  and  beneficiaries,  either
through    monthly    amortization    support    and/or    other    commitments    or
forms/modes of assistance,  such as  land  donation and  site development,  to
make the units affordable to target buyer-beneficiaries;
(8)   Issue the appropriate resolutions and/or ordinances needed for the proposed
projects, including the allocation of land, funds and other necessary support for
the successful implementation of the projects;
(9)   Establish an office and provide qualified personnel to implement their housing
Program;
(10) Conduct social preparation activities for forget beneficiaries in coordination with
the DHSUD and its pertinent KSAs;
(11) Facilitate  the  expeditious  issuance  of local  permits  and  clearances  for their
projects;
(12)Take  charge,  to  the  extent  possible  and  applicable,  of  all  documentation
necessary for the full implementation of their housing program;
(13) Undertake estate/property management responsibilities for their projects and
ensure the availability of funds for the purpose;
26      (c)   National Housing Authority and social Housing Finance corporation
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(1)  As   landowners,   enter   into   appropriate   partnership   agreements   with   the
concerned partner LGUs;
(2)  As a developer and/or project manager, implement the project/s in coordination
with LGUs and other entities in accordance with the roles and responsibilities
as may be agreed upon by the parties involved;
(3)  Provide support to LGUs in social preparation, project development, and such
other  assistance  needed  for  the  successful  implementation  of  the  LGUs'
housing program and projects under the Program;
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I       (d)  Home  Development  Mutual   Fund   (HDMF),   participating  Government  Financial
2               Institutions (GFls) and private Banks
3               (1 )  Establish special lending programs with simplified, streamlined and expedited
4                     guidelines, requirements, and processes, and allocate exclusive funds for the
5                     Program,  such as those needed for developmental  loans to developers,  and
6                     end-user financing to project buyer-beneficiaries to allow the latter to purchase
7                       their housing units;
8       (e)  National Home Mortgage Finance corporation (NHMFC)
9             (1) Provide  liquidity to  GFls and  private  banks to  ensure the  sustainability of the
10                   Program  by  purchasing  eligible  Real  Estate  Mortgage  (REM)  accounts  from
11                    them,  securitizing  such  loan  portfolios,  and  issuing  asset-backed  securities to
12                   attract more funds for housing.
13                  SEC. 6. Amua/ Report oflhe program. -The DHSUD shall annually publish a
14      full report of the program covering the implementation of the previous fiscal year. The
15       said report shall include financial disclosures, number of clients or beneficiaries served,
16      and recommendations to the president and to both chambers of congress on how to
17      furtherenhance the program.
18                  SEC. 7. Program 7fansparency. -The DSHUD shall regulariy and timely post
19      and  update  on  its  website  a  report  of  financial  disclosures  and  information  about
20      beneficiaries    based    on    geographical    area,    social,    economic,    and    cultural
21       circumstances.
22                 SEC. 8. Joint congressional oversight committee. -Upen effectiiv.fry of lhiis
23      Act, a congressional oversight committee, hereafter referred to as the pambansang
24      Pabahay  Oversight  Committee  is  hereby  constituted.  This  Committee  shall  set  the
25       overall framework to review the implementation of this Act.  It shall likewise determine
26      inherent gaps in the law and recommend necessary remedial legislation or executive
27      measures.
28                   SEC. 9. Appropr7.afi.on. -The amount necessary to implement this Act shall be
29       included in the annual General Appropriations Act.
30                  SEC  10. Separabi./i.fy  C/arse.  -Any  portion  or  provision  of this  Act  that  is
31       declared  unconstitutional  shall   not  have  the  effect  of  nullifying  other  portions  or
32      provisions hereof as long as such remaining portions can still subsist and be given effect
33       intheirentirety.
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I                   SEC  11. Repea//.ng  C/arse.  -All  laws,  ordinances,  rules,  regulations,  other
2      issuances or parts thereof, which are inconsistent with this Act, are hereby repealed or
3       modified accordingly.
4                   SEC  12. Eifecli.yify.  -This  Act  shall  take  effect  fifteen  (15)  days  after  its
5       publication in the official Gazette or in a newspaper of general circulation.
Approved
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