:l 'I ' 
,
NINETEENTH CONGRESS OF THE) 
REPUBLIC OF THE PHILIPPINES ) 
Third Regular Session 
)
24 NOV 12 /111
SENATE
s.B. No. 2877
iiix::
Introduced by SENATOR IMEE R. MARCOS
AN ACT
PROVIDING FOR A SOCIALIZED AND LOW-COST HOUSING LOAN 
RESTRUCTURING AND CONDONATION PROGRAM UNDER THE NATIONAL 
HOUSING AUTHORITY, AND FOR OTHER PURPOSES
EXPLANATORY NOTE
Article XIII, Section 9 of the 1987 Constitution provides that, "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 housing and basic services to under-privileged and homeless 
citizens in urban centers and resettlement areas, xxx."
The National Housing Authority (NHA) was created and tasked to develop and 
implement a comprehensive and integrated housing program which shall embrace, 
among others, housing development and resettlement, sources and schemes of 
financing, and delineation of government and private sector participation. Further, 
the NHA was mandated to engage in shelter production focusing on the housing 
needs of the lowest 30% of the urban population. However, due to unexpected 
factors such as high inflation, disasters and calamities, some borrowers/beneficiaries 
of the housing loan programs under the NHA experience and deal with various 
financial constraints. Thus, this measure seeks to provide a Socialized and Low-Cost 
Housing Loan Restructuring and Condonation Program under the NHA shall be 
provided to attain this Constitutional mandate, thereby providing safe, affordable, 
and decent dwelling for the Filipino people. Upon application by the 
borrower/beneficiary and approval of the NHA of such application, penalties and 
surcharges may be condoned. This will encourage continuous payment and good 
standing among the borrowers/beneficiaries, at the same time, also providing 
affordable housing for the Filipino people.
Given the abovementioned circumstances, the approval of this bill is earnestly
sought.
COS


NINETEENTH CONGRESS OF THE) 
REPUBLIC OF THE PHILIPPINES ) 
Third Regular Session 
)
SENATE
s.B. No. 2877
24 NOV 12 AH 53
ru:cL
c5-
Introduced by SENATOR IMEE R. MARCOS
AN ACT
PROVIDING FOR A SOCIALIZED AND LOW-COST HOUSING LOAN 
RESTRUCTURING AND CONDONATION PROGRAM UNDER THE NATIONAL 
HOUSING AUTHORITY, AND FOR OTHER PURPOSES
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled'.
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SECTION 1. Tide. — This Act shall be known as the "National Housing
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Authority (NHA) Socialized and Low-Cost Housing Loan Restructuring and
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Condonation Act".
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SEC. 2. Declaration of Policy. — It is the policy of the State to undertake a
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continuing program of urban land reform and housing which will make available at
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affordable cost, decent housing and basic services to under-privileged and homeless
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citizens in urban centers and resettlement areas. Towards this end, a socialized and
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low-cost housing loan restructuring and condonation program shall be provided by
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the national government to attain this Constitutional mandate, thereby providing
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safe, affordable, and decent dwelling for the Filipino people.
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SEC. 3. Coverage of the Housing Loan Restructuring Program for Delinquent
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Socialized and Low-Cost Housing Loan Accounts. — There is hereby established a
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Socialized and Low-Cost Housing Loan Restructuring and Condonation Program
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under the National Housing Authority (NHA). The Program shall be:
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a. For a period of twenty-four (24) months after the issuance of the
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necessary implementing rules and regulations of this Act, all socialized and


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low-cost housing loans with the NHA that have at least three (3) months 
of unpaid monthly amortizations as of the effectivity of this Act are hereby 
declared covered by the benefits of this loan restructuring and 
condonation program notwithstanding that the same accounts have 
availed of the benefits of a previous restructuring or condonation 
program: Provided, that the original principal amount of the housing loans 
shall not exceed one million eight hundred thousand pesos (Php 
1,800,000.00);
b. An application for restructuring shall not be charged of a processing fee 
and no downpayment shall be required from a borrower who shall apply 
for a Housing Loan Restructuring and Condonation Program provided 
under this Act;
c. All penalties and surcharges shall be condoned upon approval of the 
application, as provided under this Act: Provided, That a reasonable 
portion of the accrued interest on the housing loan shall also be 
condoned, the amount or percentage of which shall be determined by the 
NHA: Provided, further. That all remaining accrued interests shall be 
treated as non-interest bearing principal to be equally repaid during the 
term of the restructured loan: Provided, moreover. That an interest rate of 
not more than the interest of the original loan or not more than three 
percent (3%), whichever is lower, shall be imposed upon the restructured 
loan;
d. 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: Provided, That in no instance shall 
the extension of the restructured loan exceed the difference between the 
borrower's age at the time of application and seventy (70) years of age;
e. In case of permanent physical incapacity of a borrower, the legal heirs and 
successors-in-interest may assume payment of outstanding housing loan: 
Provided, That, in case of death of the borrower, the proceeds of the 
Mortgage Redemption Insurance (MRI) shall have been fully applied: 
Provided, further. That such legal heirs and successors-in-interest must


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pass the NHA's eligibility requirement before they are allowed to assume 
payment of the borrower's loan obligation;
f. The loan restructuring under this Act may be availed of only once except 
in cases of force majeure which shall affect the ability of the borrower to 
fulfill his/her financial obligation; and
g. The Program, as provided in this Act, shall be construed as a separate and 
distinct program from the existing programs of the NHA, and the borrower 
has the option to choose which loan restructuring and condonation 
program he/she may avail of.
SEC. 4. Authority to Continue the Restructuring Program. — Notwithstanding 
the expiration of the period provided in Section 3(a) of this Act, the governing board 
of the NHA shall be authorized to continue the loan restructuring and condonation 
program under this Act.
SEC. 5. 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 which housing unit has been abandoned by the borrower- 
owner for more than one (1) year from the date of delinquency;
c. An account which housing unit is occupied by a third party other than the 
original registered beneficiary or his/her legal heirs; and
d. An account that has been foreclosed or a contract-to-sell that has been 
cancelled or has been surrendered to the NHA through dacion en pago, the title of 
which has already been consolidated/transferred in the name of the NHA.
SEC. 6. Incentive for Prompt Payment of Monthly Amortization. — Upon the 
effectivity of this Act, all accounts, the monthly amortizations of which are paid on 
time, shall be entitled to incentives, including, but not limited to, a reasonable 
discount on loan interest, the amount or percentage of which shall be determined by 
the board of the NHA.


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SEC. 7. Implementing Rules and Regulations. — The NHA shall promulgate 
the implementing rules and regulations within ninety (90) days from the effectivity 
of this Act.
SEC. 8. Separability Clause. — If any provision of this Act is held invalid or 
unconstitutional, the provisions not otherwise affected shall remain valid and 
subsisting.
SEC. 9. Repealing Clause. — All laws, executive orders, rules or regulations, 
or any part thereof, inconsistent with any provision of this Act are hereby repealed 
or modified accordingly.
SEC. 10. Effectivity. — This Act shall take effect fifteen (15) days after its 
complete publication in the Official Gazette or in a newspaper of general circulation.
Approved,