Republic of the Philippines
HOUSE OF REPRESENTATIVES
Queson City

SEVENTEENTH CONGRESS
Second Regular Session

HOUSE BILL NO. iss

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

EXPLANATORY NOTE

The humble intent of this bill is to help alleviate the financial struggles that many of
our public school teachers face by instituting a housing program specially tailored to
them. This would allow them to purchase a housing unit of their choice through loans
with affordable interest and long-term repayment period. This legislation seeks to
engage the NHA, National Home Mortgage Finance Corporation, Home Guaranty
Corporation, and the Government Service insurance System to spearhead the
formulation and implementation of the proposed program.

In addition, this bill proposes the provision of on-site living quarters for public school
teachers in remote and hard-to-reach areas free of charge. This is meant to be a
boost to schools in rural areas, away from city centers, and promote quality

education in every nook and cranny of the country

Despite a higher net take-home pay and allowances from the tax reform this year, a
salary increase for public school teachers is still due. Some educators boast a 30-
year record in their profession yet remain in the lowest rank for public school
teachers’, as Teacher 1 who take home a monthly net income of PhP 16,000.00 only
under the Salary Standardization Law. These educators face the demands of the job,
coupled with the current demands of public schools across the country, every day
while tending to their own families. Calls for financial security for our teachers have

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' http://ennphilippines.com/life/culture/2018/02/28/teacher:


been heard, yet have to be acted upon. The bill proposed seeks to be a solution to

the woes of our educators and our education system as a whole.

It is unfortunate that housing has remained a serious problem in the country, with a
backlog of six million housing units needed to cater especially to the rapidly
urbanizing areas. However, the government has stepped up through President
Duterte's Joint Resolution, as approved by the House of Representatives and
Senate on May 9, 2018, to allow the National Housing Authority (NHA) to award the
unoccupied housing units of uniformed personnel to other qualified beneficiaries”

The housing needs of our people can no longer be delayed and homelessness by
the poorest and most vulnerable should not be prolonged

The approval of this bill is earnestly sought

LUIS UNI Y” F. VILLAFUERTE, JR.

” http://www. manilatimes.net/govt-to-award-empty-housi


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Queson City

SEVENTEENTH CONGRESS
Second Regular Session
793

HOUSE BILLNO.

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

AN ACT
INSTITUTING A COMPREHENSIVE HOUSING PROGRAM FOR PUBLIC.
SCHOOL TEACHERS, PROVIDING FUNDS THEREFOR AND FOR OTHER
PURPOSES

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 “Pabahay Para sa Guro
Program of 2018”

SECTION 2. Declaration of Policy. — |t is hereby declared the policy of the State to
uplift the living conditions of teachers and promote a housing program to enable
them to acquire their own housing units To this end, the State affirms its
commitment to strength, promote, and support the component activities of housing
production and finance to order to enable teachers to acquire decent housing and

basic services at the lowest affordable price

SECTION 3. Coverage. - The Comprehensive Housing Program shall cover the
teachers of the Department of Education (DepEd) with a permanent status

Likewise, the provision of free on-site living quarters shall apply to public school
teachers who are teaching in public schools far away from their respective homes
and families and are forced, or have opted, to live in said areas where the school

they teach at are located.


There shall be no distinction if the aforementioned public school teachers are new

hires or transferees.

SECTION 4. Role of Government Housing and Financing Agencies. — To ensure
the accomplishment of the objectives under this program, the hereunder mentioned
housing agencies shall perform the following in addition to their respective existing

powers and functions:

a. The National Housing Authority shall undertake special housing projects for
teachers. In addition, it may also provide technical and other forms of
assistance to private developers in the development of housing projects;

b. The National Home Mortgage Finance Corporation shall provide the mortgage
market for teacher's housing through the purchase of teacher's housing
mortgages and/or issuance of securities. It shall administer the funds provided
for housing loans and developer assistance under this Act as well as long-
term funds provided by the Government Service Insurance System and the
Home Development Mutual Fund for teacher's housing;

c. The Home Guaranty Corporation shall design an appropriate guarantee
scheme to encourage financial institutions and private developers to
undertake mass housing production for teachers. It shall administer the
Guarantee System Fund as provided for under this Act

d. The Government Service Insurance System and the Home Development
Mutual Fund shall be the primary provider of funds for long-term housing
mortgages.

SECTION 5. Role of the Department of Education. — The Department of
Education shall undertake the implementation of the program among its teachers
and shall ensure collection of amortization payments through a salary deduction

scheme. In line with this, the DepEd shall:

a. Create a Teacher's Housing Secretariat which shall issue and collect the
necessary documentation, receive and process application, and transfer the

same to the appropriate housing agencies:


b. Deduct amortization from their teachers on a monthly basis and remit the

same to the appropriate agency.

SECTION 6. Program Financing Scheme. ~ In the implementation of the Teacher's
Housing Program, the following shall consist the financing scheme:

a. Housing Loans for Teachers which shall be used for any of the following

purpose:

a
b,

Purchase of a lot and construction of a residential unit thereon;
Purchase of any of the following
i. Brand new or old existing units:
ii, Housing properties mortgaged with any institution;
iii. Housing assets being disposed off through public bidding or
negotiated sale;
Purchase of a fully developed lot within a residential area;

|. Construction of completion of a residential unit on a lot owned by the

beneficiary;
Home improvement or any alteration in an existing residential unit;
Restructuring of existing housing loan in any government housing of
financial institution, provided that the account is updated

Loans provided under this program shall be computed based on a net
take home pay which shall not be lower than Three Thousand Pesos
(Php 3,000.00). The interest rate on the loan shall not be more than ten
percent (10%) per annum and shall be fixed for the entire term of the
loan.

Provided, that if the borrower defaults on his amortization payment for
reasons of his own doing, the financing agency may subject the
borrower to a regular interest rate for the periods that he is in default

To increase the benefits provided to teachers, loans under this scheme
shall not be subject to such charges, fees or premiums except
minimum processing fees to be charged by the appropriate agencies.


Loans provided for teachers earning less than Twelve Thousand Pesos
(PhP 12,000.00) per month shall not be less than sixty percent (60%)
of all available funds allotted for this purpose. At least forty five percent
(45%) of the year appropriation for the Program shall be for Housing
Loans

b. Developer Assistance Fund. Proponents or developers of housing projects
exclusively for teachers and with a selling cost not exceeding One Hundred
Twenty Thousand Pesos (PhP 120,000.00) per house and/or lot package
which shall be available exclusively for teachers, may avail of a financing loan
not exceeding eighty percent (80%) of the entire project cost. The National
Home Mortgage and Finance Corporation, in coordination with the HUDCC,
shall issue the appropriate guidelines for this purpose.

At least fifteen percent (15%) of the early appropriation for the program shall
be for developer financing: Provided, that the unused funds for developer

financing shall be utilized for Housing Loans.

c. Guarantee System Fund. There is hereby created a guarantee system fund
for Teacher's Housing Loans not exceeding One Hundred Fifty Thousand
Pesos (PhP 150,000.00) with an interest rate of not exceeding twelve percent
(12%) per annum as originate by the funding agencies or their accredited
financial institutions. Such loans shall be assigned to the Fund immediately
after origination for which the Fund shall issue promissory notes.

At least forty percent (40%) of the yearly appropriation for the Program shall
be for the loan guarantee. The Home Guarantee Corporation shall undertake
the guarantee system under this act and shall act as the administrator and
trustee of the fund. The HGC shall issue the appropriate guidelines within one

(1) year from the approval of this Act.


SECTION 7. Fiscal Incentive for Private Sector participation in Teacher's
Housing. — Private sector developers who participate in the development of

teacher's housing shall be entitled to the following fiscal incentives:

a. Exemption from income taxes for housing projects exclusively dedicated for
teachers;

b. Exemption from capital gains tax on housing projects exclusively dedicated for

teachers;

Exemption from documentary stamp tax for all project related documentation:

Exemption from value-added tax for the project concerned

Exemption from transfer taxes for both raw and completed projects: and

Exemption from donor's tax for lands certified by the local government units to

~o@ a0

have been donated to teacher's housing purposes.

Provided, that upon application for exemption, the housing development plan shall
have already been approved by the appropriate government agencies concerned
Provided, further, that all the savings acquired by virtue of this provision shall be
used to minimize the cost of the housing units subject to the implementing guidelines
to be issued by the Housing and Urban Development Coordinating Council

The Department of Finance, in consultation with the Housing and Urban
Development Coordinating Council, shall prepare the necessary implementing
guidelines for the proper implementation of the tax exemption mentioned in this

section within one (1) after the approval of this Act

SECTION 8. Provision of Free On-Site Living Quarters. — The Department of
Education shall, free of charge, provide livable and human living quarters at the
nearest possible location to the public schools where the covered public school

teachers in Section 9 of this Act are teaching

Existing benefits and allowances already granted by law, rules, regulations and
issuances to the covered public school teachers in this Act shall not be diminished.

withdrawn or removed.


SECTION 9. Implementing Rules and Regulations. — The DepEd, in consultation
with the Department of Public Works and Highways (DPWH), Department of the
Interior and Local Government (DILG), the Department of Budget and Management
(DBM), as well as national agencies mentioned in Section 4 of this Act, shall
formulate and promulgate the necessary implementing rules and regulations for the
successful implementation of this Act not later than ninety (90) days from the
effectivity of this Act.

SECTION 10. Funding Source. - The Government Service Insurance System and
the Home Development Mutual Fund shall contribute a total of Two Billion Pesos
(PhP 2,000,000,000.00) for the initial implementation of the Program. Thereafter,
each institution shall allocate at least ten percent (10%) of their annual investible
funds for long-term teacher's housing mortgages and shall be made available to the
National Home Mortgage and Finance Corporation under terms which ensure their
repayment. The National Government shall contribute One Billion Pesos (PhP
1,000,000,000.00) annually for the continuous implementation of the Program

SECTION 11. Appropriations. - The amount necessary to carry out the purposes of
this Act shall be included in the General Appropriations Act of the year following its

enactment into law and every year thereafter.

SECTION 12. Separability Clause. — Should any provision herein be declared
unconstitutional, the same shall not affect the validity of the other provisions of this
Act.

SECTION 13. Repealing Clause. — A\l |aws, decrees, orders, rules, and regulations
or other issuances or parts inconsistent with the provisions of this Act are hereby

repealed, amended, or modified accordingly
SECTION 14. Effectivity Clause. — This Act shall take effect in fifteen (15) days
after publication in the Official Gazette or in one (1) newspaper of general circulation

in the Philippines.

Approved,