Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila  
TWENTIETH CONGRESS 
First Regular Session 
HOUSE BILL NO. 2111 
Introduced by Representative Ivan Howard A. Guintu 
EXPLANATORY NOTE 
Section 9, Article 13 of the 1987 Constitution provides that "[t]he 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 underprivileged and homeless citizens in urban centers and resettlement areas.” 
Furthermore, Section 2 (a) of Republic Act No. 7279 otherwise known as the Urban 
Development and Housing Act of 1992 provides that the State shall "[u]plift the conditions of the 
underprivileged and homeless citizens in urban areas and in resettlement areas by making available 
to them decent housing at affordable cost, … "  
Despite these provisions, socialized housing remains unattainable for the State's target 
beneficiaries. As reported by the Commission on Audit (COA), the National Housing Authority 
(NIIA) faces difficulties in collecting amortization payments regularly and within the scheduled 
payment from its beneficiaries despite the modemization of its collection methods. COA noted 
that this is due to the financial incapability of the beneficiaries to pay its dues.  
Furthermore, according to the 2022 Performance Scorecard of the NIIA ~ Estate 
Management Department, as of June 2022, the NHA has a total of 22,635 housing units that were 
already awarded but remained unoccupied or vacant.  
This bill seeks to condone all unpaid interests, including surcharges due from loans used 
for amortization of socialized housing units incurred by beneficiaries of socialized housing units 
awarded in 2004 and the preceding years. Furthermore, if the NHA has confirmed that socialized 
housing units are abandoned, unlawfully transferred, illegally occupied, or the beneflciary has 
violated occupancy rules and regulations, the right of the beneficiary to the socialized housing unit 
shall be canceled, and shall be acquired and re-awarded to other deserving beneficiaries.  
In line with the State's goal of providing a decent and affordable house to the 3.7 million 
informal settler families in the country, the State shall maximize its unutilized or illegally occupied 
socialized housing units in order to provide housing to deserving beneficiaries. It is likewise 
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imperative of the State to provide financial stability to existing socialized housing beneficiaries. 
This shall help reduce the financial burden of existing socialized housing beneficiaries in order for 
them to live a productive and fruitful life, free of financial burdens incurred from the payment of 
socialized housing units provided by the State. 
This proposed measure is the approved version on 3rd Reading in the House of 
Representatives during the 19th Congress. 
In view of the foregoing, the passage of this bill is earnestly sought. 
IVAN HOWARD A. GUINTU 
Representative, 1st District of Capiz


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila 
TWENTIETH CONGRESS 
First Regular Session  
HOUSE BILL NO. 2111 
Introduced by Representative Ivan Howard A. Guintu 
AN ACT 
ESTABLISHING A SOCIALIZED AND LOW-COST HOUSING LOAN 
RESTRUCTURING AND CONDONATION PROGRAM 
 Be it enacted by the Senate and the House of Representatives of the Philippines in Congress 
assembled: 
SECTION 1. Title. -  This Act shall be known as the “Socialized and Low-Cost Housing Loan 
Restructuring and Condonation Act”. 
SEC 2. Declaration of Policy. -It is the policy of the State to undertake a continuing program of 
urban land reform and housing that will make available at affordable cost decent housing and basic 
services to underprivileged and homeless citizens.  
To this end, a rational loan restructuring and condonation program shall be instituted that takes 
into consideration the credit worthiness and credit discipline of the borrowers, and the financial 
viability of the lending institutions. 
SEC. 3. Coverage of the Restructuring for Delinquent Socialized and Low-Cost Housing 
Loan Accounts. - There is hereby established a Socialized and Low-Cost Housing Loan 
Restructuring and Condonation Program of the National Housing Authority (NHA) and the Social 
Housing Finance Corporation (SHFC). Under this program: 
(a) For a period of twenty-four (24) months after the issuance of the implementing rules and
regulations of this Act, all socialized and low-cost housing loans with the NHA and SHFC
that have at least three (3) months of unpaid monthly amortizations as of the effectivity of
this Act are hereby declared covered by the benefits of this loan restructuring and
condonation program notwithstanding that the same accounts have availed of the benefits
of a previous restructuring or condonation program: Provided, That the original principal
amount of the housing loans shall not exceed One million eight hundred thousand pesos
(P1,800,000.00)


  
(b) An application for restructuring shall not be charged a processing fee and no downpayment 
shall be required for a borrower to apply for the benefits of this loan restructuring and 
condonation program; 
 
(c) All existing interests on principal, penalties, and surcharges shall be condoned upon 
approval of the restructuring application under this Act: Provided, That an interest rate of 
three percent (3%) or the interest rate of the original loan, whichever is lower, shall be 
imposed upon the restructured loan; 
 
(d) The term of a housing loan account being applied for restructuring may be extended for a 
period longer than its original term in order to lower the amount of the monthly 
amortization: Provided, That in no instance shall the extension of the restructured loan 
exceed the difference between the borrower's age at the time of application and the age of 
seventy (70); 
 
(e) In case of permanent physical incapacity of a borrower, the legal heirs and successors-in-
interest may assume payment of outstanding housing loan: Provided, That such legal heirs 
and successors-in-interest must pass the NHA and SHFC’s eligibility requirement before 
they are allowed to assume payment of the borrower's loan obligation: Provided, further, 
That in case of death of the borrower, the proceeds of the Mortgage Redemption Insurance 
shall have been fully applied; 
 
(f) The loan restructuring under this Act may be availed of only once except in case of force 
majeure affecting the ability to fulfill the financial obligation of the borrower; and 
 
(g) The loan restructuring and condonation program provided for in this Act shall be construed 
as a separate and distinct program from the ones being implemented by the NHA and 
SHFC, and the borrower has the option to choose which loan restructuring and condonation 
program will be availed. 
 
SEC. 4. Authority to Continue the Restructuring Program. - Notwithstanding the lapse of the 
period provided in Section 3(a) of this Act, the governing boards of the NHA and SHFC are hereby 
authorized to continue the loan restructuring and condonation program under this Act. 
 
SEC. 5. Exclusion from Coverage- In no instance shall the following housing loan 41 accounts 
be covered by this Act: 
 
 
(a) Any account without a single payment since takeout; 
 
(b) An account which housing unit has been abandoned by the borrower-owner for more than 
one (1) year from the date of delinquency; 
 
(c) An account which housing unit is occupied by a third party other than the original 
registered beneficiary or the legal heirs of the beneficiary; and 


(d) An account that has been foreclosed or a contract-to-sell that has been cancelled, or has 
been surrendered to the NHA or SHFC through dacion en pago, the title of which has 
already been consolidated or transferred in the name of the NHA or SHFC. 
 
SEC. 6. Incentive for Prompt Payment of Monthly Amortization. - Upon the effectivity of this 
Act, all accounts, the monthly amortizations of which are paid on time, shall be entitled to 
incentives, including a reasonable discount on loan interest, the amount or percentage of which 
shall be determined by the respective boards. 
 
SEC. 7. Implementing Rules and Regulations. - The Department of Human Settlements and 
Urban Development, NHA, and SHFC shall, in consultation with the relevant stakeholders, 
promulgate within ninety (90) days from the effectivity of this Act the rules and regulations to 
implement the provisions of this Act. 
 
SEC. 8. Separability Clause. - If any portion or provision of this Act is declared unconstitutional, 
the remaining parts or provision not affected thereby shall remain in force and effect.  
 
SEC. 9. Repealing Clause. - All laws, decrees, charters, executive orders, administrative orders, 
proclamations, rules and regulations, or parts thereof insofar as they are inconsistent with the 
provisions of this Act are hereby repealed or modified accordingly. 
SEC. 10. Effectivity. - This Act shall take effect fifteen (15) days after completion of publication 
in the Official Gazette or in a newspaper of general circulation. 
 
Approved,