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  
PROVIDING FOR A NATIONAL HOUSING DEVELOPMENT, PRODUCTION 
AND FINANCING PROGRAM, REGULARIZING ITS APPROPRIATION FOR 
ITS IMPLEMENTATION 
EXPLANATORY NOTE 
The responsibility of the State to properly implement a land and 
housing reform program is enshrined in Article XIII of the 1987 Philippine 
Constitution:  
“Section 9. The 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 centers and 
resettlement areas. It shall also promote adequate employment 
of such programs that the Senate shall respect the rights of small 
property owners.”  
The housing situation in the Philippines remains a grave concern that 
demands to be addressed amidst the many efforts at improving institutional 
design for better housing services to poor Filipinos 
The Philippine Statistical Research and Training Institute projected 
that the country's housing demand will further balloon to 22.6 million units 
by the end of 2040. As the country’s population grows larger, these backlogs 
on housing will further affect the poverty incidence of Filipino families if 
remained unmet. 
August 18, 2025
9:50 am
3773


Safe and decent housing for all is a basic human right. This measure 
aims to provide better housing opportunities to Filipino families by making 
housing equitable and affordable. 
To institutionalize the country’s commitment to providing safe and 
equitable housing to the poor, this bill seeks to increase and strengthen 
funding and support for housing projects from the government’s annual 
budget as part of the completion of the major components of the National 
Development and Production Housing Program. 
In view of the foregoing, the immediate passage 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  
PROVIDING FOR A NATIONAL HOUSING DEVELOPMENT, PRODUCTION 
AND FINANCING PROGRAM, REGULARIZING ITS APPROPRIATION FOR 
ITS IMPLEMENTATION 
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 "National Housing 
Development, Production, and Financing (NHDPF) Act." 
SECTION 2. Declaration of Policy. – It is hereby declared a policy of the 
state to: 
(a) undertake, in cooperation with the private sector, a continuing
program of housing and urban development which shall make
available at affordable cost, decent housing and basic services,
especially to the underprivileged and homeless citizens;
(b) pursue the realization of a modem, humane, economically viable
and, environmentally-sustainable society where the urbanization
process is manifest in towns and cities being centers of productive
economic activity and is led by market forces; where urban and rural
areas have affordable housing, sustainable physical and social
infrastructure and services facilitated under the democratic and
decentralized system of governance; and where urban and rural
areas provide the opportunities for an improved quality of life and
eradication of poverty;
(c) ensure that poor dwellers shall be provided with appropriate and
innovative housing programs and support mechanisms to discourage
further growth of blighted communities; and
(d) encourage on-site development, 
whenever feasible, in the
implementation of housing programs, and shall promote the
creation of new settlements with basic facilities and utilities and the 
development of sustainable urban renewal programs.
3773


 
Cognizant of the role of housing as a stimulus of economic growth and 
development, it is hereby declared a state policy to strengthen, promote 
and support the component activities of housing production and finance 
by ensuring continuous/sustained funding support to scale-up the 
implementation of the major components of the National Housing 
Development and Production Program 
 
SECTION 3. Statement of Objectives. – Towards this end, the State shall: 
(a) Increase housing production by forging partnerships among 
housing stakeholders to address the housing needs of Filipino families 
by 2040. 
(b) Generate and mobilize funds for housing purposes of Filipino 
families, giving priority to the homeless and underprivileged. 
(c) Ensure the provision of support mechanisms/subsidy programs to 
improve access of Filipino families to a variety of housing options. 
(d) Guarantee the development of a strong, sustainable, accessible, 
and affordable housing finance system. 
(e) Encourage 
public 
and 
private 
sector 
participation 
in 
the 
implementation of the government National Housing Development 
and Production Financing Program. 
 
SECTION 4. National Housing Development Production Program 
Implementation. – Consistent with the aforementioned policy and 
objectives, the Department of Human Settlements and Urban Development 
(DHSUD) and its attached Key Shelter Agencies shall intensify the 
implementation of the vital components of the National Housing Development 
Production and Financing Program. The implementation of this program shall 
be carried out by the following agencies: 
 
A. National Housing Authority (NHA) - the sole national government agency 
tasked to implement and develop the following housing programs intended for 
the bottom 30% of the income population: 
(1) Resettlement - This program addresses the requirements of families 
affected by a) government infrastructure projects, b) those living in 
danger areas, and c) those affected by Supreme Court Mandamus. It 
entails the provision of vertical (from 5 to 15-storey residential 
buildings) and/or horizontal housing units, community facilities, socio-
economic and other community support programs. 
 
The program also involves the implementation of local/regional 
resettlement projects as joint National Government-Local Government 
undertakings to address the resettlement requirements of Local 
Government Units (LGUs) outside Metro Manila 
involving families in danger areas, those affected by infrastructure 
projects, indigenous peoples, and former rebels. 
 
The government infrastructure agencies shall submit an 
inventory of Informal Settler Families to be affected by their projects 


and their location to the appropriate housing agencies at least two years 
prior to their implementation and shall incorporate in their respective 
project costs the amount needed for the relocation and resettlement of 
affected families. 
 
(2) Government Employees Housing Program – This program is intended to 
provide decent and affordable housing to low-salaried government 
employees. 
 
(3) Settlements Upgrading – this program aims to address the security of 
tenure and infrastructure requirements of informal settlements on 
government-owned lands proclaimed or designated as socialized 
housing sites. 
 
(4) Housing Program for Calamity Victims - this program is intended to 
respond to the housing needs of low and marginal-income and/or 
informal shelter families for transitional and/or permanent shelter 
affected by calamities such as typhoons, landslides, earthquakes, and 
fires for relocation to safe areas. 
 
(5) Land Banking - this refers to the acquisition of land, which includes 
idle government lands, at values based on existing use in advance of 
actual need to promote planned development and socialized housing 
programs to distribute the land to qualified socialized housing 
beneficiaries. It covers survey and titling of individual lots for 
disposition to qualified occupants, infrastructure development, housing 
construction, and rehabilitation of existing project sites. 
 
B. Social Housing Finance Corporation (SHFC) - mandated to undertake 
social housing programs that will cater to the formal and informal sectors in 
the low-income bracket and to take charge of developing and administering 
social housing programs, particularly the Community Mortgage Program and 
its different modalities: 
 
(6) Community Mortgage Program (CMP) – This is a mortgage financing 
program that assists legally organized associations of underprivileged 
and homeless citizens to purchase and develop a tract of land under 
the concept of community ownership. The primary objective of the 
program is to assist residents of blighted or depressed areas to own the 
lots they occupy, or where they choose to relocate to, and eventually 
improve their neighborhood and homes to the extent of their 
affordability. The different modalities of the CMP are as follows: 
 
a. Sectoral CMP - a CMP modality that caters to the different 
sectoral groups, including but not limited to the basic sector 
groups needing resettlement assistance. A sectoral group 
represents a group or coalition of persons who share similar 
concerns and interests and intend to avail of resettlement 45 
assistance from SHFC, including Indigenous Peoples (IPs), 


Indigenous Cultural Communities (ICCs), and other ethnic 
minority groups. 
b. Housing for Peace Process and Nation Building CMP - a CMP 
modality which would lead to the achievement of national 
peace and development through the provision of housing to 
former rebels/rebel returnees (FR/RR). This also includes 
rebuilding damaged or destroyed homes in post-conflict areas 
for internally displaced persons (IDPs). 
c. Post-Disaster Rehabilitation and Reconstruction CMP - a CMP 
modality that provides assistance to community housing projects 
in times of disaster. This program allows the communities to 
immediately embark on house construction and site development 
that adhere to the minimum standards and specifications of the 
design and structural components of disaster-resilient housing 
projects, as well as materials. 
d. Industrial Workers CMP - a CMP modality intended primarily for 
low-income employees of companies engaged in agro-industrial, 
industrial processing zone, tourist, recreational, commercial, and 
other enterprises. 
e. Site Upgrading/Development CMP - a CMP modality intended to 
provide site development and housing/building construction 
loans for projects whose lands are donated by private or public 
entities applicable to both on-site or resettlement projects. 
f. Mixed-Use CMP - a CMP modality aimed at developing a self-
sustaining community by having a balanced mix of residential 
and commercial spaces, well- developed infrastructure, and 
recreational amenities along with green and open spaces and 
wellness areas. Under this modality, 9% of the project area shall 
be allotted for green spaces and 1% of the project area for friendly 
facilities for Persons with Disabilities (PWD). 
 
(7) National Home Mortgage Finance Corporation (NHMFC) – A government 
corporation mandated to increase the availability of affordable housing 
loans to finance Filipino homebuyers on their acquisition of housing 
units through the development and operation of a secondary market for 
home mortgages. 
 
(8) Securitization - this refers to the development of the secondary market 
for 
home 
mortgages 
and 
other 
housing-related 
receivables, 
conveyances, 
and 
financial 
instruments, 
and 
the 
development/promotion of and investments in new housing- related 
financial instruments and investment vehicles and the capital markets 
thereof. Furthermore, this would also increase and sustain funds 
available for housing and home development. 
 
C. Department of Human Settlements and Urban Development (DHSUD)- 
the primary national government entity responsible for the management of 
housing, human settlements, and urban development, including the 
implementation of the following programs: 


 
(9) Public Housing - this is a housing program that is owned and/or 
managed by the government for the purpose of providing security of 
tenure to the underserved families, including but not limited to the 
development of proclaimed socialized housing sites intended to promote 
the establishment of new towns, new settlements, and urban renewal. 
The term "underserved families" 
refers to those who are 
disadvantaged in terms of access to basic services because of 
inability to pay or other disparities by reason of economic or social 
status, ethnicity, geographical isolation, and other circumstances. 
 
(10) Subsidy - this is a financing assistance scheme intended to enhance the 
affordability of well-targeted and the most financially incapable segment 
of society. It is a grant extended to qualified low-income beneficiaries 
under the National Housing Development and Production Financing 
Program under any of the following alternative subsidy schemes: 
a. Extension of Interim Shelter Fund to each of the family-
beneficiaries, which they can use to find safe residency and 
livelihood to support their families, pending the completion of 
their housing units in the relocation sites. 
b. Payment for upfront cost equivalent to 5% of the project cost 
(e.g., mortgage insurance, titling, etc.); and 
c. Monthly payment subsidy for the first five years of the loan 
period in accordance with Section 3 (a) of RA 6846 or the 
Social Housing Support Fund Act. The department shall be 
authorized to establish the qualification and income 
requirements 
of 
borrowers 
who 
will 
qualify 
for 
the 
amortization support subsidy. 
 
The DHSUD, in coordination with the LGUs and other national 
government agencies, shall be authorized to formulate the criteria 
and guidelines to select the beneficiaries that may qualify for the 
subsidy program. 
 
(11) 
Public Rental Housing- this program involves the extension of fiscal 
assistance of up to a maximum of 50% of the total construction cost for 
the National Government 
Agencies 
(NGAs) 
and   Local 
Government 
Units (LGUs) 
that shall construct and operate 
public rental accommodation to eligible low-income 36 families and 
housing safety net for the vulnerable sectors (e.g., senior citizens, 
person with disabilities, etc.). 
 
(12) 
Survey of proclaimed lands for socialized housing and inventory of 
government idle lands - this involves the survey of all occupied 
government lands proclaimed by the President as suitable for socialized 
housing and conduct of inventory of government lands which have been 
idle for more than ten (10) years except lands owned by the GOCCs and 
government financial institutions engaged in shelter financing as part 
of its fiduciary obligations to its members and/or taken possession of 


in their ordinary conduct of business. 
(13) 
Such other program components as may be determined by the DHSUD. 
 
SECTION 5. Appropriations by the National Government. – The amount 
of One Hundred Thirty-Five Billion, One Hundred Fourteen Million Pesos (Pl 
35,114,000,000.00) or such amount necessary to carry out the provision of 
this Act is hereby authorized to be appropriated annually through the General 
Appropriations Act over a period of twenty (20) consecutive years commencing 
from the year immediately succeeding the effectivity of this Act or until such 
time that the total fund requirements provided for in this Act shall have been 
fully released. 
 
A total amount of Two Trillion, Six Hundred Sixty-Seven Billion, Two Hundred 
Ninety- Three Million Pesos (P2,667,293,000,000.00), covering the continuing 
requirement of this Act, shall be appropriated to the DHSUD and Key Shelter 
Agencies for the implementation of the following component programs of the 
NHDPF Program: 
 
(1) One trillion, seven hundred twenty-two billion, four hundred forty-six 
million pesos (Pl,722,446,000,000.00) for the implementation of the 
following programs of NHA: 
(a) Eight hundred 
billion 
and 
six 
hundred 
ninety 
 
million pesos (P800,699,000,000.00) to finance the Resettlement 
Program under Section 4 (1) of this Act; 
(b) Five hundred forty-three billion and four hundred nineteen million 
pesos (P543,419,000,000.00) as subsidy for Government Employees 
Housing under (2) of this Act; 
(c) One hundred sixty-four billion and two hundred sixty-five million pesos 
(P164,265,000,000.00) for the Settlements Upgrading under Section 4 
(3) of this Act; 
(d) One hundred one billion and seven million pesos for the Housing 
Program for Calamity Victims, Section 4 (4) of this Act; and 
(e) Sixty-three billion and fifty-six million pesos (P63,056,000,000.00) 
for the Land Banking under Section 4 (5) of this Act. 
 
(2) 
Four 
hundred 
fifty-three 
billion, 
two 
hundred 
million 
pesos 
(P453,200,000,000.00) for the implementation of the Community Mortgage 
Program under Section 4 (6) of this Act. 
 
(3) Fifty billion for the Capitalization of NHMFC under Section 4 (8) of this Act. 
 
(4) Four hundred seventy-six billion, six hundred forty-seven million pesos 
(P476,647,000,000.00} for the implementation of the following programs of 
the DHSUD: 
(a) Three hundred sixty-five billion, nine hundred seventy-nine million 
pesos (P365,979,000,000.00) to finance the Public Housing under 
Section 4 (8); 
(b) Eighty-nine billion, one hundred thirty-one million pesos 
(P89,131,000,000.00) as subsidy under Section 9, broken down as 


follows: 
i. 
Eighteen billion, five hundred thirty-one million pesos 
(P18,531,000,000.00) as interim shelter finance assistance 
for the informal settler-families who will be relocated under 
Section 4 (10a) 
ii. 
Sixty-three billion, seven hundred ninety-six million pesos 
(P63,796,000,000.00) as upfront subsidy under Section 4 
(10b) 
iii. 
Six billion, eight hundred four million pesos as amortization 
support under Section 4 (10c) 
(c) Twenty billion, four hundred fifty-six million pesos 
(P20,456,000,000.00) to finance public rental housing under Section 
4(10); and 
(d) One billion, eighty-one million {Pl,180,000,000.00) to finance a survey 
of proclaimed lands and conduct of inventory of government idle lands 
suitable for socialized housing under Section 4 (11). 
 
SECTION 6. LGU Sources of Funds. – Section 43 of RA 7279 on Socialized 
Housing Tax is hereby amended to read as follows; 
 
Consistent with the constitutional principle that the ownership and 
enjoyment of property bear a social function and to raise funds for 
the Program, all local government units are hereby authorized to 
impose an additional one-half percent (0.5%) tax on the assessed 
value of all lands in urban areas. The proceeds from the imposition 
of Socialized Housing Tax shall accrue to the special funds of the 
LGUs, which shall be used for the development of socialized housing 
projects and construction and estate management of public rental 
housing of the LGUs. 
 
SECTION 7. Implementation of the Securitization, Capital, and 
Secondary Mortgage Operations Program. – The NHDP Securitization for 
the development of the secondary market for home mortgages of and other 
housing related receivables, conveyances and financial instruments and 
the development/promotion of and investments in new housing related 
financial instruments and investment vehicles and the capital markets 
thereof, to increase and sustain funds available for housing and home 
development shall be implemented as follows: 
(1) The NHMFC shall be the sole implementing agency for the NHDP 
securitization; and 
(2) The NHMFC in coordination with the DHSUD, DOF and BSP, and other 
concerned agencies and private sector organizations, shall formulate a 
program, the proceeds of which shall accrue to the Centralized Housing 
Fund. 
(3) The mortgages to be generated as a result of the implementation of the 
component programs of the NHDP Program shall be sold and 
transferred to NHMFC, which shall also serve as an asset pool for 
securitization. 
(4) The NHMFC as the sole agency for the implementation of the NHDPA 


Securitization shall manage the whole securitization process which 
includes the following activities: determining the eligibility criteria for 
the asset pool; defining the preliminary structure of the notes, bonds 
and or instruments to be issued, third parties to be hired; and 
education/briefing of target investors for all the issues. 
(5) The NHMFC and NHDPFA-issued bonds, notes, and securities shall be 
exempt from the registration requirements under the Securities 
Regulation Law to accelerate the issuance of their housing-related 
securities/financial instruments and, thus, more reasonably provide 
the necessary funds for housing developments. 
(6) Transactions by banks involving the purchase and sale of housing 
bonds, debentures, and such other similar instruments shall be exempt 
from the twenty percent (20%) final tax on income, documentary stamps 
tax, gross receipts tax, and value-added tax. 
(7) The investors' yield or income from any socialized housing or economic 
housing-related bond or asset-backed securities (ABS) issued by 
NHMFC directly or through a special purpose entity under the 
Securitization Act shall be exempt from income tax. Such issuances 
shall enjoy all the tax exemptions granted under Republic Act No. 9627 
or the Securitization Act of 2004 pursuant to the State's policy of 
promoting the securitization of mortgage and housing-related 
receivables of government housing agencies, to generate investment 
and accelerate the growth of the housing finance sector, especially for 
socialized and economic housing. 
(8) Bonds purchased by private real estate developers shall be considered 
as an alternative compliance to the balanced housing requirements 
under section 18 of RA 7279, as amended by RA 10884, subject to the 
rules promulgated by the Department of Human Settlements and 
Urban Development. 
(9) The Philippine Guaranty Corporation pursuant to Executive Order No. 
58 (S. 2018) shall guaranty payment of the balance outstanding and 
due on the guaranteed principal obligation, plus interest and yields 
thereon up to eleven percent (11%) per annum for socialized housing 
packages, ten percent (10%) per annum for low-cost housing packages, 
nine and a half percent 1 (9.5%) per annum for medium cost housing 
packages and eight and one half percent (8.5%) per annum for open 
housing packages. 
 
SECTION 8. Capitalization of National Home Mortgage Finance 
Corporation (NHMFC). – The authorized capital stock of the NHMFC is hereby 
increased from pesos to pesos to expand its leveraging capacity based on the 
volume of mortgage loans being serviced to improve its profitability by 
reducing the average cost of its funds made available for home lending 
programs. 
 
The capital of the National Home Mortgage Finance Corporation (NHMFC) 
shall be Fifty billion pesos to be fully subscribed by the Government of the 
Republic of the Philippines, hereafter referred to as the Government: Provided, 
That the of the capitalization shall be funded from the General Appropriations 


Act and the remaining shall be funded from the declared dividends of the 
NHMFC in favor of the National Government. For this purpose, any and all 
declared dividends of the NHMFC in favor of the National Government shall 
be deposited in a special account in the General Fund and earmarked for the 
payment of NHMFC's increase in capitalization. Such payment shall be 
released and disbursed immediately and shall continue until the increase in 
capitalization has been fully paid. 
 
SECTION 9. Tax Exemptions. – The NHMFC shall be exempt from all 
national, provincial, municipal,s and city taxes on income derived from its 
governmental functions, specifically income from its activities or transactions 
in the exercise of its mandates. 
 
SECTION 10. Multi-year Obligational Authority. – The Secretary of the 
DHSUD and Heads of its attached housing agencies, pursuant to the National 
Housing Development, Production and Financing Program, projects and 
appropriations approved by Congress, shall, subject to the provisions of 
existing laws and regulations including those of the Commission on Audit and 
other such terms and conditions most favorable to the government, be given 
multi-year obligational authority for housing program or project which will 
take more than one year to complete that requires multi-year appropriations. 
 
SECTION 11. Private Sector Participation. – To fast track the approval 
and implementation of housing projects and reduce the cost of socialized 
and low-cost housing units, the Bureau of Internal Revenue, the 
Department of Agriculture, the National Irrigation Authority, the 
Philippine Coconut Authority, the Sugar Regulatory Administration, the 
Department of Agrarian Reform, the Department of Environment and 
Natural Resources, the Mines and Geosciences Bureau, the Laguna 
Lake Development Authority the Department of the Interior and Local 
Government, the Local Government Units, the Land Registration 
Authority and the Department 
of Human Settlements and Urban 
Development shall facilitate the release of the required housing-related 
permits, licenses, certifications and tax exemptions/rulings in accordance 
with Republic Act 11032 or an Act Promoting Ease of Doing Business and 
Efficient Delivery of Government Services Amending for the Purpose 
Republic Act 9485 Otherwise Known as the Anti-Red Tape Act of 2007 and 
for Other Purposes and Executive Order No. 45 (S. 2001). 
 
In case the responsible officers of the agencies concerned fail or refuse to 
dispose of the application within the periods prescribed under RA 11032, 
the applicable administrative and criminal liability as stated in Section 22 
of RA 11032 shall be imposed. 
 
All the incentives enumerated under Section 20 of Republic Act 10884 or 
an Act Strengthening the Balanced Housing Development Program, 
amending for the Purpose Republic Act No. 7279, as Amended, otherwise 
known as the Urban Development and Housing Act of 1992 shall be 
extended to the private sector engaged in socialized and low-cost housing 


development including the construction and estate management of public 
rental housing. 
 
The participation of owners and/or developers in any of the component 
programs of the NHDPFA shall be treated as one of the manners of 
compliance to the balanced housing requirements subject to the 
conditions set forth under RA 10884. 
 
SECTION 12. Collection Efficiency. – In order to improve collection 
efficiency, the NHA, SHFC and NHMFC shall have authority to foreclose 
mortgages, and/or evict beneficiaries in accordance with existing laws. 
 
SECTION 13. Implementing Rules and Regulations. – Within ninety (90) 
days upon the effectivity of this Act, the DHSUD shall promulgate rules and 
regulations necessary for the implementation of this Act. 
 
SECTION 14. Repealing Clause. – All laws, decrees, executive orders, 
proclamations, rules and regulations and the issuances, or parts thereof 
which are inconsistent with the provisions of this Act, are hereby repealed, 
amended, or modified accordingly. 
 
SECTION 15. Penal Clause. – Any person who violates any provision of this 
Act shall be imposed the applicable administrative and criminal liability as 
stated in Section 22 of RA 11032 or the Ease of Doing Business and 
Government Service Delivery Act of 2018. 
 
SECTION 16. Non-Impairment Clause. – Nothing in this Act shall be 
construed as to diminish, impair, or repeal rights recognized, granted, or 
made available to disadvantaged, marginalized, or specific sectors under 
existing laws. 
 
SECTION 17. Separability Clause. – If for any reason, any provision of this 
Act is declared invalid or unconstitutional, the remaining provisions not 
affected thereby shall continue to be in full force and effect. 
 
SECTION 18. Effectivity. – This Act shall take effect fifteen (15) days after 
its complete publication in at least two (2) national newspapers of general 
circulation. 
 
Approved,