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

SIXTEENTH CONGRESS
SECONDREGULAR SESSION

House Bill No, __ 6122

Introduced by Honorable WINSTON “ WINNIE” CASTELO
EXPLANATORY NOTE

Socialized housing programs is the most appropriate solution
that resolves underprivileged and homeless families’ need for security
of tenure and shelter.

It is noteworthy that the Supreme Court, in the case of Heirs of
Juancho Ardona v. Reyes, has considered urban renewal or
development and the construction of low-cost housing as a public use
and the specific revisions in the Constitution, to wit:

The State shall promote a just and dynamic social
order that will ensure the prosperity and independence of
the nation and free the people from poverty through
policies that provide adequate social services, promote full
employment, a rising standard of living and an improved
quality of life for all. (Article II, Section 9)

The State shall, by law and for the common good,
undertake, in cooperation with the private sector, a
continuing program for urban land reform and housing
which will make available at affordable cost decent housing
and basic services to underprivileged and homeless
citizens in centers and resettlement areas. x xx In the
implementation of such program the State shall respect
the rights of small property owners. (Article XIII, Section
9)

Housing is a basic human need—a matter of concern since it
directly and significantly affects public healt, safety, the environment
and in sum, the general welfare.


It should be noted that aside from the regular fund for social
housing granted to the national government’s Key Shelter Agencies,
the President has provided P10B for high density housing program of
the informal settler families living in waterways and danger zones in
Metro Manila.

The private sector and cause-oriented institutions, in addition to
national and local government initiatives, people’s organizations or
cooperative associations, non-government organizations or civil society
organizations are now engaged in multi-stakeholders’ arrangement for
socialized housing programs and projects intended for underprivileged
and homeless Filipino citizens.

In recognition of this multi-stakehold



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

SIXTEENTH CONGRESS
SECOND REGULAR SESSION

6122

House Bill. No.

Introduced by Honorable Winston “Winnie” Castelo

AN ACT EXEMPTING ALL FORMS OF SOCIALIZED HOUSING
PROGRAMS AND PROJECTS FROM THE PAYMENT OF
CAPITAL GAINS TAX

Be it enacted by the Senate and the House of Representatives of
the Republic of the Philippines in Congress assembled.

SECTION 1. Short Title. This Act shall be known as “Exempting All Forms of
Socialized Housing Programs and Projects From the Payment of Capital
Gains Tax”.

SECTION 2. Declaration of Policy. It is the policy of the State to encourage
more participation in undertaking comprehensive and continuing urban
development and housing program as well as access to land and housing for
the underprivileged and homeless citizens; uplift their conditions by making
available decent housing at affordable cost; optimize the use and
productivity of land and urban resources; reduce urban dysfunctions which
affect public health, safety and ecology; and improve the capability of local
governments in undertaking urban development and housing programs and
projects, among others. And in so doing, the State shall provide tax
incentives to institutions engaged in any form of socialized housing programs
and projects.

SECTION 3. Incentives for Government and Private Sector or
Non-Government Organizations Participating in Socialized Housing Programs
and Projects. Institutions, whether national government’s Key Shelter
Agencies or Local Government Units, private sector, non-government
organizations or civil society organizations, people’s or cooperative
organizations engaged or who shall engage in any form of socialized housing

Vu


programs and projects for the benefit of the low-income families or
underprivileged and homeless citizens shall be exempt from the payment of
capital gains tax.

Any disposition by way of sale or donation of lands for socialized housing
programs and projects shall be exempt from the payment of capital gains
tax or donor’s tax, as the case may be.

SECTION 4. All Forms of Socialized Housing Programs and Projects are
Exempt Transactions From the Payment of Capital Gains Tax. The Bureau of
Internal Revenue shall, within fifteen days (15) days from notice of the
proponent’s request for exemption from the payment of capital gains tax,
issue a certification exempting such transaction from the payment of the
same.

SECTION 5. Promulgation of Rules and Regulations. The PCUP together with
Housing and Urban Development Coordinating Council, Social Housing
Finance Corporation, Quezon City Government, and the Bureau of Internal
Revenue shall promulgate the necessary rules and regulations for the orderly
enforcement of this Act within sixty (60) days from its approval.

SECTION 6. Penalties. Any person who shall be found liable for violating any
provision of this Act shall be administratively sanctioned and may be held
liable in accordance with the existing laws.

SECTION 7. Separability Clause. In the event that any provision of this Act
is declared unconstitutional, the provision not so affected shall continue to
be valid and enforceable.

SECTION 8. Effectivity. This Act shall take effect after its complete
publication in the Official Gazette or at least two (2) newspapers of general
circulation.

Approved.