Republic of the Philippines 
 HOUSE OF REPRESENTATIVES 
Quezon City 
19TH CONGRESS 
First Regular Session 
House Bill No. ____ 
Introduced by Representative Michael L. Romero 
EXPLANATORY NOTE 
It is imperative that the Local Government Units (LGUs) shall be charged with 
the implementation of this Act in their respective localities, in coordination with 
the DHSUD, housing agencies, the Presidential Commission for the Urban Poor 
(PCUP), the private sector and other nongovernment organizations.  
They shall prepare a comprehensive land use plan for their respective localities 
in accordance with the provisions of this Act.  
The DHSUD shall, through the key housing agencies, provide local government 
units with necessary support such to formulate standards and guidelines as well 
as providing technical support in the preparation of town and land use plans 
In coordination with the National Economic and Development Authority (NEDA) 
and the Philippine Statistics Authority (PSA), shall provide data and information 
for forward-planning by the local government units in their areas, particularly 
on projections as to the population and development trends in their localities 
and the corresponding investment programs needed to provide appropriate types 
and levels of infrastructure, utilities, services and land use patterns. 
This House Bill seeks to assure, upon request of local government units, shall 
provide technical and other forms of assistance in the implementation of their 
respective urban development and housing programs with the objective of 
augmenting and enhancing local government capabilities in the provision of 
housing benefits to their constituents; and shall design an appropriate guarantee 
scheme to encourage financial institutions to go into direct lending for housing. 
July 1, 2022 
11:29 am
854


Approval of this bill is therefore sought. 
MICHAEL L. ROMERO Ph.D. 


Republic of the Philippines 
 HOUSE OF REPRESENTATIVES 
Quezon City 
19TH CONGRESS 
First Regular Session 
House Bill No. ____ 
Introduced by Representative Michael L. Romero 
AN ACT 
RATIONALIZING THE COMMUNITY MORTGAGE PROGRAM (CMP) 
TO CREATE AN APPROPRIATE GUARANTY SCHEME, IMPROVE 
THE EXTENT OF ITS AFFORDABILITY, PROVIDING FUNDS 
THEREOF, INCREASING ITS PENALTIES AND SANCTIONS, AND 
FOR OTHER PURPOSES 
Be it enacted by the Senate and the House of Representatives of the Philippines 
In Congress assembled: 
SECTION 1. DECLARATION OF POLICY – the state shall hereby assist 
legally organized associations of underprivileged and homeless citizens to 
purchase and develop a tract of land under the concept of community ownership. 
The state shall assist residents of blighted or depressed areas to own the 
lots they occupy, or where they choose to relocate to, and eventually 
improve their neighbourhood and homes to the extent of their affordability. 
854


SECTION 2. PRIVILEGES — To encourage its wider implementation, the 
participants in the Community Mortgage Program (CMP) shall be granted with 
the following incentives:  
(1) Government-owned or -controlled corporations 
(GOCC) and Local Government units (LGUs), may dispose of 
their idle lands suitable for socialized housing under the CMP 
through negotiable sale at prices based on acquisition cost 
plus financial carrying costs;  
(2) Properties sold under the CMP shall be exempted 
from the capital gains tax; and  
(3) Beneficiaries under the CMP shall not be evicted nor 
dispossessed of their lands or improvements unless they have 
incurred arrangements in payments of amortizations for three 
(3) months. 
 
SECTION 3.  BENEFICIARIES. — Beneficiaries of this Program shall be 
responsible for their organization into associations to manage their subdivisions 
or places of residence, to secure housing loans under existing Community 
Mortgage Program and such other projects beneficiaries to them. Subject to such 
rules and regulations to be promulgated by the DHSUD, associations organized 
pursuant to this Act may collectively acquire and own lands covered by this 
Program.  
Where the beneficiaries fail to form an association by and among 
themselves, the National Home Mortgage Finance Corporation (NHMFC) 
shall initiate the organization of the same in coordination with the 
Presidential Commission for the Urban Poor (PCUP) and the local 
government units concerned.  
No person who is not a bona fide resident of the area shall be a 
member or officer of such association. 
 


SECTION 4. IMPLEMENTING RULES AND REGULATIONS - The local 
government units, in cooperation with the Department of Human Settlements 
and Urban Development (DHSUD), Technology and Livelihood Resource Center 
(TLRC), and other concerned agencies, shall promote the production and use of 
indigenous, alternative, and low-cost construction materials and technologies for 
socialized housing. 
The local government units shall coordinate with the Department of 
Environment and Natural Resources (DENR) in taking measures that will 
plan and regulate urban activities for the conservation and protection of 
vital, unique and sensitive ecosystems, scenic landscapes, cultural sites 
and other similar resource areas.  
To make the implementation of this function more effective, the 
active participation of the citizenry in environmental rehabilitation and in 
decision making process shall be promoted and encouraged. The local 
government 
units 
shall 
recommend 
to 
the 
Environmental 
and 
Management Bureau (EMB-DENR) the immediate closure of factories, 
mines and transport companies which are found to be causing massive 
pollution. 
 
 
SECTION 5. MECHANICS - The local government units shall set up 
an effective mechanism, together with the appropriate agencies like the 
Population Commission, the National Economic and Development Authority 
(NEDA) and the Philippine Statistics Authority (PSA), to monitor trends in the 
movements of population from rural to urban, urban to urban, and urban to 
rural areas.  
They shall identify measures by which such movements can be 
influenced to achieve balance between urban capabilities and population, 
to direct appropriate segments of the population into areas where they can 


have access to opportunities to improve their lives and to contribute to 
national growth and recommend proposed legislation to Congress, if 
necessary. The Population Commission, the National Economic and 
Development Authority (NEDA), and the Philippine Statistics Authority 
shall likewise provided advanced planning information to national and 
local government planners on population projections and the consequent 
level of services needed in particular urban and urbanizable areas.  
This service will include early-warning systems on expected 
dysfunctions in a particular urban area due to population increases, 
decreases, or age structure changes. 
 
SECTION 6. APPROPRIATION – The State shall hereby provide an 
additional 
authorize 
capitalization 
of 
Five 
hundred 
million 
pesos 
(₱500,000,000.00) to evolve and implement a comprehensive national program 
to meet the housing and related needs of marginal and low-income families in 
Metro Manila and other urban centers of the country. The state shall hereby 
authorize the DHSUD to re-align its appropriations, in the current year of the 
date of the effectivity of this Act to conform with its mandate and requirements. 
The amount necessary to carry out the purposes of this Act shall be 
included in the annual budget of implementing agencies in the General 
Appropriations Act (GAA) of the year following its enactment into law and every 
year thereafter. 
SECTION 7. FUNDING – Funds for the urban development and housing 
program shall come from the following sources:  
(1) A minimum of fifty percent (50%) from the annual net 
income of the Public Estate Authority, to be used by the 
National Housing Authority to carry out its programs of land 
acquisition for resettlement purposes under this Act;  


(2) Proceeds from the disposition of ill-gotten wealth, not 
otherwise previously set aside for any other purpose, shall be 
applied to the implementation of this Act shall be administered 
by the National Home Mortgage Finance Corporation;  
(3) Loans, grants, bequests and donations, whether from 
local or foreign sources;  
(4) Flotation of bonds, subject to the guidelines to be set 
by the Monetary Board;  
(5) Proceeds from the social housing tax and, subject to 
the concurrence of the local government units concerned, idle 
lands tax as provided in Section 236 of the Local Government 
Code of 1991 and other existing laws;  
(6) Proceeds from the date or disposition of alienable 
public lands in urban areas; and  
(7) Domestic and foreign investment or financing through 
appropriate arrangements like the build-operate-and-transfer 
scheme.  
The amount of Five hundred million pesos (₱500,000,000.00) as may be 
necessary to carry out the provisions of this Act shall be included in the General 
Appropriations Act of the year following its enactment into law. 
SECTION  8. PENALTIES — Any person who violates any provision of this 
Act shall be imposed the penalty of not less than six (6) years of imprisonment 
or a fine of not less than One hundred fifty thousand pesos (P150,000), or both, 
at the discretion of the court:  
Provided, That, if the offender is a corporation, partnership, association or 
other juridical entity, the penalty shall be imposed on the officer or officers of 
said corporation, partnership, association or juridical entity who caused the 
violation. 


SECTION 9. ANNUAL REPORTS - The DHSUD shall hereby submit 
periodic reports on its findings and make recommendations on actions to be 
taken by Congress and Senate and the appropriate department. 
SECTION 10. AUTOMATIC REVIEW - Every year after the effectivity of 
this Act, an independent review panel composed of experts to be appointed by 
the President shall review the policies and programs in the DHSUD and shall 
make recommendations, based on its findings, to the President and to both 
Houses of Congress. 
SECTION 11.  SEPARABILITY CLAUSE - If any provision or section of 
this Act or the application thereof to any person or circumstances is held invalid, 
the other provisions or sections of this Act shall remain valid, and the application 
of such remaining provisions or sections to the other persons or circumstances, 
shall not be affected thereby. 
 
SECTION 12. REPEALING CLAUSE - All provisions and any other 
provisions inconsistent with the provision of this Act are hereby amended 
accordingly. 
 
 
          SECTION 13.  EFFECTIVITY CLAUSE – This Act shall take effect fifteen 
(15) days from the date of its publication in the Official Gazette or in at least two 
(2) newspapers of general circulation. 
 
 
Approved.