Republic of the Philippines
HOUSE OF REPRESENTATIVES
‘Quezon City

THIRTEENTH CONGRESS
1* Regular Session

House Bill No 24

introduced by RODRIGUEZ D. DADIVAS
Explanatory Note

The lack of decent and affordable housing facilities remains to be one of the most
pervasive socio-economic problems that our government needs to confront. At
present, there are more than 60% of Filipino households belong to the poverty
threshold or whose family income is below P14,000.00 a month. These people do
not have a home to call their own not because they don't need it but the
unavailability of affordable housing units that prevented them from having one.
Furthermore, if there are housing programs available, its loan mechanisms are still
not proportion insofar as the income of these more than 60% Filipino households.

This bil seeks to establish a mechanism that would provide low-cost housing loan
restructuring program. It provides incentives to those who pay monthly amortizations
on time by giving them reasonable discounts on their loan interest

Under this bill, all penalties and surcharges will be condoned upon approval of the
application, provided, that all accrued interests shall be added to the remaining
balance of the principal, the aggregate of which shall be considered as the new
Principal amount.

There are other provisions under this bill that would make housing loan facilities
available forthe poor Filipinos.

In tight(of the foregoing, approval of this bill is eamestly sought.

Fn:billrestuctuinghousingloan


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

THIRTEENTH CONGRESS
1* Regular Session
241

House Bill No.

Introduced by RODRIGUEZ D. DADIVAS

AN ACT
TO ESTABLISH A SOCIALIZED AND LOW-COST HOUSING LOAN
RESTRUCTURING PROGRAM, PROVIDING THE MECHANISMS THEREFOR,
AND FOR OTHER PURPOSES

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 "Socialized and Low-Cost
Housing Loan Restructuring Act of 2004."

Sec. 2. Restructuring of Delinquent Socialized and Low-Cost Housing
Loan Accounts. — In keeping with the Constitutional mandate for the State to
undertake a continuing program of urban land reform and housing that will make
available at affordable cost decent housing and basic services, there is hereby
established a Socialized and Low-Cost Housing Loan Restructuring Program. Under
this program:

@) For three (3) years from the effectivity of this Act, all socialized housing
loans or loans amounting to Two Hundred Twenty Five Thousand Pesos
(P225,000.00) and below, and ali low-cost housing loans or foans
amounting to over Two Hundred Twenty Five Thousand Pesos
(P225,000.00) but not exceeding Five Hundred Thousand Pesos
(P500,000.00) with any of the govemment financing institutions and
agencies involved in the National Shelter Program (NSP), including but not
limited to, the Government Service Insurance System (GSIS), Social
Security System (SSS), Home Development Mutual Fund (HDMF),
National Home Mortgage Finance Corporation (NHMFC), Home Guaranty
Corporation (HGC), and the National Housing Authority (NHA) that have at
feast a sixmonth unpaid monthly amortization area hereby declared
covered by the benefits of this restructuring program notwithstanding that
the same account has availed of the benefits of a previous restructuring or
condonation program and even if the annual total family income of the
borrower-applicant exceeds Three Hundred Thousand Pesos
(800,000.00);

An applicant for restructuring shall only be charged a processing fee which
shall be lower than those charged under previous restructuring or
condonation programs and no down payment shall be required for a
borrower to apply for the benefits of this restructuring program:

b)


¢) All penalties and surcharges shall be condoned upon approval of the
application under this Act: Provided, that all accrued interests shall be
‘added to the remaining balance of the principal, the aggregate of which
shall be considered as the new principal amount;

¢) A borrower-appiicant may be allowed to use the total accumulated value of
his*her membership contribution or savings with the GSIS, SSS, or HDMF
to pay in full or in part hisner housing loan;

e) The term of a housing loan account being applied for restructuring may be
extended for a period longer than its original term in order to lower the
amount of the monthly amortization to a maximum of One Thousand Five
Hundred (P1,500.00) for a period of three (3) years from the approval of
the application, after which, the monthly amortization will revert back to its
orginal amount. The unserviced portion ensuing from the three-year
lowered monthly amortization shail be paid on the last year of the term of
the housing loan along with the last monthly amortization. in the event that
the borrower fails to pay any amortization during the three-year period,
hefshe shall voluntarily surrender his her property without need of judicial
proceedings;

f) In case of incapacity of a borrower, his/her heirs and successors.in-
interest may assume payment of his/her outstanding housing loan; and

9) Loan restructuring under this Act may be availed only once

All corresponding penalties and surcharges with NHMFC may have to pay its
funders as a result of the implementation of this Act shall be automatically adjusted
and condoned.

‘Sec. 3. Exclusion from Coverage. - in no instance shall the following
‘housing loan accounts be covered by this Act:

a) Any account without a single payment since takeout;

b) An account whose housing unit has been abandoned by the borrower-
‘owner for more than two (2) years;

©) An account whose housing unit has remained unoccupied for a period of
at least two (2) years;

4) An account whose housing unit is occupied by a third party other than the
original registered beneficiary; and

e) An account that has been foreciosed, the title of which has already been
consolidatedfransferred in the name of the govemment financing
institution,

Sec. 4. Declaration of Dividends. - The declaration of dividends of the funds
managed by the GSIS, SSS, and HDMF shail be limited to their members who have
not availed of the restructuring program under this Act.

Sec. 5. Contribution of Government Financing Institutions to the
National Shelter Program. — The contribution of the govemment financing
institutions to the NSP shall be limited to the net eamings derived from their housing
programs.


Sec. 6. Incentive for Prompt Payment of Monthly Amortization. - Upon
the effectivity of this Act, all accounts whose monthly amortization are paid on time
shall be entitied to a reasonable discount on loan interest

Sec. 7. Applicability on Delinquent Accounts Due to Defective Housing
Units. ~ This Act shail likewise apply to borrowers who falled or refused to pay their
monthly amortizations due to structurally defective or substandard housing units
and/or subdivisions lacking in basic amenities such as water, light, drainage, good
roads, and athers and as required by law.

‘Sec. 8. Implementing Rules and Regulations. - There is hereby created an
inter-agency committee headed by the Housing and Urban Development
Coordinating Council and composed of all govemment institutions and agencies
enumerated in Section 2 hereof tasked to promulgate the implementing rules and
Tegulations within sixty (60) days from the effectivity of this Act.

Sec. 8. Congressional Oversight Committee. - There is hereby created a
Congressional Oversight Committee composed of the Chairman of the House
Committee on Urban Planning, Housing and Resettlement, five (5) members of the
Senate and six (6) members of the House of Representatives. The members from
the Senate shall be appointed by the Senate President from among the members of
the Senate Committee on Urban Planning, Housing and Resettlement based on the
proportional representation of the parties or coalitions therein. The members from
the House of Representatives shall be appointed by the Speaker from among the
members of the House Committee on Housing and Urban Development based on
the proportional representation of the parties or coalitions therein.

The Oversight Committee shall review and approve the implementing Rules
and Regulations. it shall also review the performance of the govemment financing
institutions and agencies involved in the implementation of this Act.

Sec. 10, Repealing Clause. All laws, executive orders, rules or regulations,
or any part thereof, inconsistent with any provisions of this Act are hereby repealed
or modified accordingly.

Sec. 11. Effectivity Clause. This Act shall take effect fifteen (15) days after
its complete publication in the Official Gazette or in at least two (2) national
newspapers of general circulation.

Approved,