FIFTEENTH CONGRESS =
REPUBLIC OF THE PHILIPPINES
FIRST REGULAR SESSION

HOUSE OF REPRESENTATIVES

Introduced by Representative Rufus B. Rodriguez and
Representative Maximo B. Rodriguez, Jr.

House Bill No.

2277

EXPLANATORY NOTE

This bill seeks to amend certain provisions of Executive Order No. 209,
otherwise known as the Family Code of the Philippines, as amended, specifically
Articles 155 and 157 found on Title V, Chapter 2, entitled “The Family Home.”

Article 155 provides that the Family home shall be exempt from execution,
forced sale, or attachment, except in four (4) instances. Amendments are
proposed to cover two (2) of the four (4) exemptions, namely: for the nonpayment
of taxes, and for debts incurred prior to the constitution of the family home. First, it
is proposed that the words REAL ESTATE be added to qualify what type of tax is
exempted. The purpose of these amendments is to avoid any misinterpretation as,
to the true intent of the law, as it is a basic tenet that provisions granting
exemptions are strictly construed against the person invoking the exemption and
those which impose tax obligations are liberally construed in favor of the taxing
authority.

Second, it is also proposed that the family home should remain exempt
even for the payment of debts incurred prior to the constitution of the family home.
There is no compelling reason to hold otherwise, as it cannot be said that such
debts redounded to the benefit of the beneficiaries of the family home.

Another amendment introduced is that, in the event that an execution,
forced sale or attachment on the home is allowed, the family home shall become
exempt, if the proceeds of such sale are still insufficient to cover the entire
judgment or award. The reason for this amendment is to prevent a situation
wherein a family not only loses its home but remains in debt.


—. Finally, considering the present purchasing power of the peso, the Value of
the real property, and the high cost of constructing adequate shelter, the bill also
proposes to increase the value attached to the family home to update it with
present day economic realities, if only to give full meaning to the spirit of the law.

Upon these premises, approval of this bill is earnestly requested.

RUF! fi RIGUEZ

Wh

MAXIMO B. RODRIGUEZ, JR.


FIFTEENTH CONGRESS — y 7
REPUBLIC OF THE PHILIPPINES )
FIRST REGULAR SESSION

HOUSE OF REPRESENTATIVES

Introduced by Representative Rufus B. Rodriguez and
Representative Maximo B. Rodriguez, Jr.

House BillNo__2 27?

AN ACT
AMENDING ARTICLES 155 AND 157 OF EXECUTIVE ORDER NO. 209, AS
AMENDED, OTHERWISE KNOWN AS THE FAMILY CODE OF THE
PHILIPPINES, STRENGTHENING THE PROVISIONS OF THE LAW
GOVERNING THE FAMILY HOME

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

SECTION 1. Article 155 of Executive Order No. 209, as amended, is hereby
amended to read as follows:

“The family home shall be exempt from execution, forced sale or
attachment except:

(1) For nonpayment of REAL ESTATE taxes;

[(2) For nonpayment of debts incurred prior to the constitution of the family
home;]

(2) [3] For debts secured by mortgages on the premises before or after
such constitution; and

(3) [(4)] For debts due to laborers, mechanics, architects, builders, material

men and others who have rendered service or furnished material for the
construction of the building.

HOWEVER, IN NO INSTANCE SHALL THE FAMILY HOME BE SUBJECT
TO EXECUTION, FORCED SALE, OR ATTACHMENT, IF THE VALUE
OBTAINABLE AFTER SUCH SALE IS NOT SUFFICIENT TO COVER THE


ENTIRE JUDGEMENT-OR AWARD: PROVIDED, THAT THE COURT SHALL
BEFORE ISSUING THE ORDER, ENSURE THAT THE EXECUTION, FORCED
SALE OR ATTACHMENT OF THE FAMILY HOME IS DONE AS A LAST
RESORT, OR THAT THE DEBTOR HAS NO OTHER PROPERTIES AVAILABLE
TO SATISFY THE JUDGEMENT OR AWARD.

SEC 2. Article 157 of Executive Order No. 209, as amended, is hereby
amended to read as follows:

“The Actual value of the family home shall not exceed, at the time of its
constitution, the amount of [three hundred thousand] TWO MILLION pesos in
urban areas, and [two hundred thousand] ONE MILLION pesos in rural areas, or
such amounts as may hereafter be fixed by law.

In any event, if the value of the currency changes after the adoption of this
Code, the value favorable for the constitution of a family home shall be the basis of
evaluation

For purposes of this Article, urban areas are deemed to include chartered
cities and municipalities whose annual income at least equals that legally required
for chartered cities. All others are deemed to be rural areas.

SEC 3. This Act shall be given retroactive effect insofar as it does not
impair or prejudice vested or acquired rights.

SEC 4. All laws, presidential decrees, executive orders and issuances
inconsistent with this Act are hereby modified or repealed accordingly.

SEC 5. This Act shall take effect fifteen (15) days after its publication in two
(2) newspapers of general circulation

Approved.