SS N

Republic of the Philippines DA
HOUSE OF REPRESENTATIVES RECEIVED a
Quezon City paTE _10 SEP 2025
TIME _{)° yy
20th CONGRESS cn i J
First Regular Session Wo Inve: 1
HOUSE BILL NO._4494

Introduced by REP. JUAN CARLOS “ARJO” C. ATAYDE

AN ACT
PROVIDING FOR A NATIONAL HOUSING DEVELOPMENT, PRODUCTION
AND FINANCING PROGRAM REGULARIZING ITS APPROPRIATION FOR
ITS IMPLEMENTATION

EXPLANATORY NOTE

The 1987 Constitution recognizes the right of the Filipino people to decent
housing. Article XIII provides, “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 underprivileged and homeless citizens in urban centers and
resettlement areas. It shall also promote adequate employment opportunities to such
citizens. In the implementation of such a program, the State shall respect the rights of
small property owners.”

In furtherance of the afore quoted provision, this measure seeks to address the
right of the underprivileged to affordable and decent housing services. Likewise, this
measure aims to strengthen, promote, and support the component activities of
housing production and finance by ensuring continuous and sustained funding
support to scale up the implementation of the major components of the National
Housing Development and Production Program.

In view of the foregoing, the approval of this bill is edynestlySought.

REP. JUAN CARLOS “ARJO” ATAYDE



aR ON

Seana

Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

20th CONGRESS
First Regular Session

House BiLLNo. 4494

Introduced by REP. JUAN CARLOS “ARJO” C. ATAYDE

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 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 of 2020."

SEC. 2. Declaration of Policy.- _It is hereby declared a policy of the state to:
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. It
shalll likewise pursue the realization of a modern, 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.


af wn

Secorno

12
13
14

15
16
17
18
19

20
2
22
23
24

25
26
27
28
29

Cognizant of the role of housing as a stimulus for economic growth and
development, it is hereby also declared a state policy to strengthen, promote and
support the component activities of housing production and finance by ensuring
continuous and sustained funding support to scale up the implementation of the

major components of the National Housing Development and Production Program.

SEC. 3. 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 along danger areas;
and c) those affected by Supreme Court Mandamus. It entails the provision of vertical
(from 5 to 15-storey residential building) 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 its implementation and shall incorporate
in their respective project costs the amount needed for the relocation and resettlement
of affected families.


a

©aorno

14
15
16

7
18
19
20
21

22
23
24
25
26
27
28
29

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 with a view 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.

6. 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:

a. Community Mortgage Program (CMP) - this is a mortgage financing
program, which 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:

3


Noor ORN

10
"1
12
13

14
15
16
17
18
19
20

24
22
23
24

25
26
27
28

i, 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 assistance from
SHEC, including Indigenous Peoples (IPs), Indigenous Cultural
Communities (ICs), and other ethnic minority groups.

it Housing for Peace Process and Nation Building CMP - a CMP
modality that 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 of internally-
displaced persons (IDPs).

ili, 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
which adhere to the minimum standards and specifications of the
design and structural components of disaster-resilient housing

projects, as well as materials.

iv. 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.

v. 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.


Noon wn a

18
19
20
21

22
23
24
25
26

27
28

vi. 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)

B. 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.

7. 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:

8. 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


nv

Noaro

12
13

14
15
16
17
18

19
20
21

22
23
24
25
26
27

reason of economic or social status, ethni

, geographical isolation, and other
circumstances.

9. Subsidy - this is a financing assistance scheme intended to enhance the
affordability of well targeted and most financially incapable segment of the 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:

i, 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.

Payment for upfront cost equivalent to 5% of the project cost (e,

mortgage insurance, titling, etc.); and

iii, 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.

10. 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 families
and housing safety net for the vulnerable sectors (e.g., senior citizens, person with

disabilities, etc.).


18
19
20
21

22
23
24

25
26
27

The DHSUD shall formulate the guidelines for the implementation of public

rental housing assistance including the adoption of the lease/rental buy-back scheme.

11. 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 member and/or taken possession of

in their ordinary conduct of business.
12. Such other program components as may be determined by the DHSUD.

SEC. 4. Appropriations by the National Government. -The amount of One Hundred
Thirty-Five Billion One Hundred Fourteen Million Pesos (Php 135,114,000,000) 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 (Php  2,667,293,000,000) 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 (Php 1,722,446,000,000) for the implementation of the following
programs of NHA:

a. Eight hundred billion and six hundred ninety million pesos (Php
800,699,000,000) to finance the Resettlement Program under Section
3.A(1) of this Act;


20
21
22

23
24

25
26

2

r

Five hundred forty-three billion and four hundred nineteen million
pesos (Php 543,419,000,000) as subsidy for Government Employees
Housing under 3.A(2) of this Act;

. One hundred sixty-four billion and two hundred sixty-five million pesos
(Php 164,265,000,000) for the Settlements Upgrading under Section
3.A(3) of this Act;

a

|. One hundred one billion and seven million pesos (Php 101,007,000,000)
for the Housing Program for Calamity Victims Section 3.A(4) of this Act;
and

e, Sixty-three billion and fifty-six million pesos (Php 63,056,000,000) for the
Land Banking under Section 3.A(5) of this Act.

Four hundred fifty-three billion, two hundred million pesos (Php

453,200,000,000) for the implementation of the Community Mortgage Program under
Section 3.A(6) of this Act.

3.

Fifty billion (Php 50,000,000,000) for the Capitalization of NHMFC

under Section 4(8) of this Act.

4,

Four hundred seventy-six billion, six hundred forty-seven million pesos

(Php 476,647,000,000) for the implementation of the following programs of the

DHSUD:

a. Three hundred sixty-five billion, nine hundred seventy-nine million
pesos (Php 365,979,000,000) to finance the Public Housing under Section
3.C(8);

b. Eighty-nine billion, one hundred hirty-one million pesos (Php
89,131,000,000) as subsidy under Section 3.C(9), broken down as follows:

i, Eighteen billion, five hundred thirty-one million pesos (Php
18,531,000,000) as interim shelter finance assistance for the


informal settler-families who will be relocated under Section
3.C(i);

ii. Sixty-three billion, seven hundred ninety-six million
pesos (Php 63,796,000,000) as upfront subsidy under Section
3.CQii);

iii, Six billion, eight hundred four million pesos (Php
6,804,000,000) as amortization support under Section 3.C (iii).

c. Twenty billion, four hundred fifty-six million pesos (Php 20,456,000,000)
to finance public rental housing under Section 3.C(10); and

d. One billion, eighty-one million (Php 1,081,000,000) to finance survey of
proclaimed lands and conduct of inventory of government idle lands

suitable for socialized housing under Section 3.C(11).

SEC. 5. LGU Sources of Funds. - Section 43 of RA 7279 on Socialized Housing,

Tax is hereby amended, to read as follows:

SEC. 43. Socialized Housing Tax. - 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 i#-exeess
of Fifty-thousand peses-(P50,000). 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


12
13
14

15
16
17

18
19
20
21
22

23
24
25
26

27
28

MANAGEMENT OF PUBLIC RENTAL HOUSING
OF THE LGUS.

SEC. 6. 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 NHMEC 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 NHMFCas 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 in
order to accelerate the issuance of its housing related securities financial instruments

and, thus, more reasonably provide the necessary fund 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

10


Soernaanreo

12
13
14

15
16
7
18
19
20
21

22
23
24
25
26

27
28
29

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 created 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 (9.5%) per annum for
medium-cost housing packages and eight and one-half percent (8.5%) per annum for

open housing packages.

SEC 7. Capitalization of National Home Mortgage Finance Corporation (NHMEC). -
The authorized capital stock of the NHMFC is hereby increased from Php
5,500,000,000 pesos to Php 50,000,000,000 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 fund made available for home lending programs.

The capital of the NHMFC shall be Fifty billion pesos (Php 50,000,000,000), to
be fully subscribed by the Government of the Republic of the Philippines, hereafter
referred to as the Government: Provide That the Php 25,000,000,000 of the

1


NOOR WN A

12
13
14
15
16
17
18
19

20
21
22
23
24
25
26
27
28
29
30

capitalization shall be funded from the General Appropriations Act and the remaining
Php 25,000,000,000 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.

SEC. 8. Tax Exemptions. - The NHMFC shall be exempt from all national,
provincial, municipal and city taxes on income derived from its governmental
functions, specifically income from its activities or transactions in the exercise of its

mandates,

SEC, 9, 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.

SEC. 10. 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

12


oe

Nooae

14
15
16

7
18
19

20
21

22
23
24
25

26
27
28

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
Io 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.

SEC. 11. Collection Efficiency. - In order to improve collection efficiency, the
NHA, SHFC and NHMEEC shall have authority to foreclose mortgages, and/or evict

beneficiaries in accordance with existing laws.

SEC. 12. Implementing Rules and Regulations. - The DHSUD shall promulgate

rules and regulations necessary for the implementation of this Act.

SEC. 13. Separability Clause. - Any portion or provision of this Act that is
declared unconstitutional shall not have the effect of nullifying other portions or
provisions hereof as long as such remaining portions can still subsist and be given

effect in their entirety.

SEC. 14. Repealing Clause. - All laws, ordinances, rules, regulations, other
issuances, or parts thereof, which are inconsistent with this Act, are hereby repealed

or modified accordingly.

13


SEC. 15. Effectivity. - This Act shall take effect after fifteen (15) days following

its publication in the official Gazette or in a newspaper of general circulation.

Approved,

14