Republic of the Philippines 
House of Representatives 
Quezon City, Metro Manila 
TWENTIETH CONGRESS 
First Regular Session 
House Bill No. _______ 
INTRODUCED BY REPRESENTATIVE PM VARGAS 
AN ACT 
ESTABLISHING A RENTAL HOUSING SUBSIDY PROGRAM FOR 
INFORMAL SETTLER FAMILIES AND APPROPRIATING FUNDS 
THEREFOR 
 EXPLANATORY NOTE 
Article XIII, Section 9 of the Constitution provides that: 
“The State shall, by law, and for the common good, 
undertake in cooperation with the private sector, a continuing 
program or 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”. 
Further, Section 10 states that “…No resettlement or urban or 
rural dwellers shall be undertaken without adequate consultation with 
them and the communities where they are to be relocated”. 
As a part of the State’s promise to promote decent housing 
programs for the marginalized, this measure proposes to establish a 
Rental Housing Subsidy Program, which shall serve as a housing and 
social protection program by enabling Informal Settler Families (ISFs) 
to access the formal housing market. 
This bill seeks to further add fuel to that potential by providing 
ISFs the option to either avail of a housing rental subsidy or a straight-
out housing equity subsidy. It will be available not just for Metro 
Manila ISFs affected by infrastructure projects but wherever there are 
delays in the provision of adequate resettlement sites as described in 
the Urban Development and Housing Act of 1992, as amended for: 
➢Families being resettled from project rights of way
➢Families being evicted as a result of court-ordered demolitions
July 24, 2025
3:16 pm
2272


➢Resettlement from danger zones or in the aftermath of natural
calamities
➢Resettlement in the course of re-blocking or road clearing for
slum upgrading
Well-designed housing programs create tremendous potential for 
employment 
creation, 
spurring 
investments 
in 
newly 
created 
communities and more importantly, providing decent housing to the 
underprivileged sector. 
This version of the proposed measure was deliberated during 
both the 18
th and 19th Congress, successfully passed on third reading 
in each, and was duly transmitted to the Senate. 
In view of the foregoing, approval of this bill is earnestly sought. 
REP. PM VARGAS 
Fifth District, Quezon City 


Republic of the Philippines 
House of Representatives 
Quezon City, Metro Manila 
TWENTIETH CONGRESS 
First Regular Session 
House Bill No. _______ 
INTRODUCED BY REPRESENTATIVE PM VARGAS 
AN ACT 
ESTABLISHING A RENTAL HOUSING SUBSIDY PROGRAM FOR 
INFORMAL SETTLER FAMILIES AND APPROPRIATING FUNDS 
THEREFOR 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Short Title. — This Act shall be known as the “Rental 
Housing Subsidy Program Act.” 
SECTION. 2. Declaration of Policy. — It is hereby declared the policy of 
the State to: 
a) Promote a just, equitable, and inclusive urban development
through programs providing adequate social services, broader
housing options, livelihood and employment, and improved
quality 
of 
life 
for 
the 
Filipino 
people, 
especially 
the
underprivileged;
b) Provide an innovative housing program that makes available
affordable, livable, and decent housing, as well as access to basic
social services, especially for the underprivileged;
c) Protect the urban poor from the impact of immediate dislocation
due to eviction and demolition arising from government projects;
and
d) Provide interim housing for dislocated families due to natural and
man-made disasters.
SECTION. 3. Deﬁnition of Terms. — As used in this Act: 
(a) Dislocation refers to the state of being displaced from one place to
another due to causes such as eviction and demolition;
2272


(b) Informal Settler Families refer to households living on a lot, 
whether private or public, without the consent of the property 
owner; or those without legal claim over the property they are 
occupying; or those living in danger areas such as esteros, 
railroad tracks, garbage dumps, riverbanks, shorelines, and 
waterways, as deﬁned in Section 3(e) of Republic Act No. 11201, 
otherwise known as the “Department of Human Settlements and 
Urban Development Act" 
 
(c) Rental housing subsidy refers to the financial assistance provided 
by the government to pay for the temporary use or occupancy of 
a residential unit in the public and private housing rental 
market. 
SECTION. 4. Rental Housing Subsidy Program - There is hereby 
established the Rental Housing Subsidy Program, hereinafter referred 
to as the “Program,” to provide social protection and support to 
informal settler families (ISFs) in accessing the formal housing market. 
It shall be made an option to address the temporary relocation of 
displaced families due to natural and man-made disasters. 
 
Eligible ISFs shall receive a ﬂat rental subsidy rate of Three 
thousand five hundred pesos (PhP3,500.00) for those living in Metro 
Manila and a rental subsidy rate to be determined by the Department 
of Human Settlements and Urban Development (DHSUD) and the 
National Economic Development Authority WEDA) for those living in all 
other regions, taking into consideration the prevailing minimum wage 
and rental rates per region, but not to exceed Three thousand five 
hundred pesos (PhP3,500.00): Provided, That the rental subsidy shall 
not exceed the actual rent: Provided, further, That at any time, but not 
more often than once every two (2) years, such subsidy may be 
reviewed or revised by the DHSUD and NEDA to conform with the 
prevailing economic conditions. 
 
Rental subsidy shall be granted to eligible beneﬁciaries until the 
date  of completion of the permanent housing project intended for them 
or upon their actual transfer to the permanent housing project, 
whichever comes first: Provided, That, in case of a delay in the 
completion of the permanent housing project, the rental subsidy shall 
be extended: Provided Further, That the agency implementing the 
permanent housing project shall bear the cost of the extended rental 
subsidy. 
SECTION. 5. Eligibility. — To be eligible under this Act, a beneﬁciary 
must: 
 
a) be an ISF as defined under section 3(b) hereof; and 
 
b) vacate the informal settlement area presently being 
occupied and transfer or relocate to a safer area. 


SECTION 6. Conditions for Continued Entitlement or Eligibility — All 
eligible beneficiaries shall comply with the following conditions to 
continuously avail of the beneﬁts under this Act: 
 
a) The beneﬁciaries shall not move or relocate back to the area in 
which they were originally living in unless such move or 
relocation has been permitted by the proper government 
authorities, taking into consideration the purpose of the 
Program; and 
 
b) The beneficiaries shall pay to the lessor that portion of the rental 
fee not covered by the subsidy. 
 
Beneﬁciaries who maintain good payment standings shall be 
prioritized as 
beneficiaries in government housing programs. 
SECTION 7. Form of Payment. — The rental subsidy shall be 
distributed in such form it may determine to be most beneficial and 
appropriate for the beneficiaries. 
 
a) To have similar participation rights accorded to NGOs in the 
Local 
SECTION 8. Roles of Government Agencies — The various national 
government agencies and instrumentalities involved in the Program 
shall perform speciﬁc responsibilities. 
 
a) The DHSUD shall: 
i. 
Coordinate with housing agencies to formulate Program 
targets and integrate these to national housing policy; 
 
ii. 
Promulgate appropriate housing policies among the attached 
corporations of DHSUD in line with the implementation of this 
Program; 
 
iii. 
Enlist beneficiaries and their lessors for the Program; 
 
iv. 
Set up monitoring and evaluation system, tools, exit strategy 
and 
methodologies 
on 
compliance 
with 
conditions, 
implementation, output, 
 
v. 
and impact assessments together with its attached agencies, 
the Department of Social Welfare and Development (DSWD), 
the Presidential Commission on the Urban Poor (PCUP), and 
the local government units; implementation of this Act. 
 
b) The National Housing Authority (NHA) shall: 
i. 
Certify the eligibility of the applicants of the Program; 
 
ii. 
Coordinate 
with 
infrastructure 
program 
implementing 
agencies, including the Department of Public Works and 
Highways and the 


Department of Transportation, the identification of areas 
suitable for housing projects and the persons who need 
immediate resettlement; 
 
iii. 
Update the master list of beneficiaries to be resettled as part 
of the National Resettlement Program which shall include their 
socio-economic profiles; and 
 
iv. 
Design and conduct appropriate monitoring and evaluation of 
the implementations of this Program which shall include a 
grievance and redress system. 
 
c) The Home Development Mutual Fund (HDMF) shall enroll in its 
system at least one household member of the applicant—
beneficiaries of the Program to facilitate their entry into the 
formal housing market. 
 
d) The DSWD shall design the social preparation activities and 
conduct workshops and training programs to ensure that 
beneficiaries are aware of the benefits under the Program, 
including the parameters and conditions for eligibility. 
 
e) The PCUP shall: 
i. 
Assist the DSWD in the design of social preparation 
activities, workshops, and training programs for 
beneficiaries; 
ii. 
Conduct social preparation activities with the local 
government units. 
 
(f) The Technical Education and Skills Development Authority shall 
provide skills training to at least one household member of the 
beneﬁciaries. 
 
(g) The local government units shall: 
i. 
Maintain a publicly accessible register of lessors in their 
respective areas of jurisdiction; 
 
ii. 
Assist the NBA in conducting census and tagging of ISFs in 
need of immediate resettlement; 
 
iii. 
Assist the DSWD and PCUP in conducting social preparation 
activities; 
 
iv. 
Contain the vacated areas of ISFs to help achieve the 
objectives of this Program; 
 
v. 
Assist the DSWD in monitoring and evaluating the 
implementation of this Program; and 
 
vi. 
Conduct ﬁeld valuation of beneﬁciaries and their respective 
lessors with DSWD in the rental housing units. 


SECTION 9. Appropriations. — The amount necessary for the 
effective implementation of this Act shall be charged against the 
current appropriations for the DHSUD. Hereafter, such amount as 
may be necessary for its continued implementation shall be included 
in the annual General Appropriations Act. 
SECTION 10. Implementing Rules and Regulations. — The 
DHSUD, in coordination with relevant government agencies, shall 
issue rules, regulations, and guidelines necessary to carry out the 
intent and purposes of this Act within six (6) months from the date 
of effectivity. 
SECTION 11. Mandatory Review on the Implementation of this Act. 
— The DHSUD shall submit to Congress a report on the 
implementation of this Program at the end of the second year from 
the date of effectivity of this Act and every two (2) years thereafter. 
SECTION 12. Separability Clause. — If any portion or provision of 
this Act is held unconstitutional or invalid, the remaining provisions 
not affected thereby shall continue to be in full force and effect. 
SECTION 13. Repealing Clause. – All laws, executive orders, 
proclamations, rules, regulations, and other issuances or parts thereof 
which are inconsistent with the provisions of this Act are hereby 
repealed, amended, or modiﬁed accordingly. 
SECTION 14. Efficiency - This Act shall take effect fifteen (15) days 
after its publication in the Official Gazette or in a newspaper of 
general circulation. 
 
Approved,