SIXTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
) 
) 
SENATE 
SENATE BILL NO. 2230 
'14 MArlS P 4 :28 
RECEIVED B\,: ___ ~ 
.. 
INTRODUCED BY SENATOR JOSEPH VICTOR G, EJERCITO 
EXPLANATORY NOTE 
This bill seeks to create the Social Housing Development and 
Finance Corporation (SHDFC) which shall become the lead government 
agency in the development and administration of social housing programs. 
On 20 January 2004, the Social Housing Finance Corporation 
(SHFC) was created by virtue of an executive order (Executive Order No. 
272), upon the recommendation of the Housing and Urban Development 
Coordinating Council (HUDCC) Secretariat. SHFC, a wholly owned 
subsidiary of the National Home Mortgage Finance Corporation (NHMFC), 
was tasked to implement the CMP and AKPF programs under the NHMFC 
and undertake social housing programs for the formal and informal 
sectors in the low-income bracket. 
In its seven years of existence, SHFC's weaknesses were readily 
observable, if not glaring. EO 272 vaguely defined the powers of the 
President of the Corporation, of the Board of Trustees, and of the 
Corporation itself. As a consequence, the SHFC performed- limited 
functions to the detriment of the State's goal to make available affordable 
decent housing and basic services to underprivileged and homeless 
citizens in urban centers and resettlement areas. Furthermore, EO 272 
failed to provide a concrete set of qualifications for the President of the 
Corporation which could have adverse impact on the management of the 
institution. 
This bill seeks to address these weaknesses and concerns. The 
passage of this bill would establish a more independent, well-organized 
and transparent SHDFC that is more responsive to the housing needs of 
the Filipino people. It hopes to do this given its salient features: 
First, it defines the powers and functions of the SHDFC. One of 
the weaknesses of EO 272 is the vagueness and lack of enumeration of 
the powers and functions of SHFC. The EO merely mandated the NHMFC 
to define such. 
Second, the Board of Trustees of the SHDFC is likewise 
empowered to adopt the bylaws of the Corporation, formulated and revise 
policies related to housing, approve the Corporation's organizational and 
administrative structures and staffing pattern, and exercise other powers 
necessary to carry into effect the provisions and purposed of SHDFC. 


Third, it mandates the Secretary of Department of Finance to sit as 
ex-offido Vice Chairman of the Board of Trustees. This will guarantee that 
the acts and decisions of the Corporation shall be within the financial 
capabilities of the Government. Further, it provides qualifications for the 
four private sector representatives that will sit as members of the Board. 
Fourth, qualifications for the President are specified. This is to 
ensure that the President of the SHDFC will be experienced and 
competent to decide on matters related to housing. 
Fifth, this bill seeks to require the Chairman of the Commission 
on Audit to submit an annual report of the financial condition and 
operation of SHFDC to the President and both housing of Congress. This 
is to certify the transparency of and within the Corporation. 
Sixth, this bill institutionalizes and strengthens the foundation of 
SHDFC by enacting a legislation that is not vulnerable to ready repeal by 
subsequent Presidents of the Republic. 
In view thereof, the expedient approval of this bill is strongly 
recommended. 
-
JOSEPH VICTOR G. EJERCITO 


SIXTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
) 
'14 
MAY 15 P 4 :28 
. First Regular Session 
) 
• 
SENATE 
HECEIVEIJ B'r" __ (_ 
SENATE BILL NO. 2230 
INTRODUCED BY SENATOR JOSEPH VICTOR G, EJERCITO 
AN ACT 
TO CREATE THE SOCIAL HOUSING DEVELOPMENT AND FINANCE 
CORPORATION, PRESCRIBING ITS POWERS AND FUNCTIONS, AND 
FOR OTHER PURPOSES 
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 "Social Housing 
Development and Finance Corporation Act of 20 13." 
SEC, 2. Declaration of Policy.- It is hereby declared the policy of 
the State to undertake a comprehensive and continuing program of 
housing and urban development which will make available at affordable 
cost decent housing and basic services to the underprivileged and 
homeless Filipinos through the financing and administration of socialized 
housing programs. 
SEC. 3. Statement of Objectives. - Toward this end, the Senate 
shall integrate all laws, orders, issuances and administrative circulars 
relating to the provision of socialized housing to effectively achieve the 
following objectives: 
(a) To assist legally-organized associations of underprivileged and 
homeless citizens to purchase and develop tracts of land and to own lots 
they occupy or where they choose to relocate to under the concept of 
community ownership; and 
(b) To enhance the affordability of low-cost housing by low-income 
families and provide developmental financing for low-cast housing 
projects. 
SEC. 
4. 
The 
Social Housing 
Development and Finance 
Corporation. - To carry out the aforementioned policy and objectives, 
there is hereby created a Social Housing Development and Finance 
Corporation . (SHDFC), herein referred to as the "Corporation," with 
principal office in Metro Manila, which shall replace the Social Housing 
Finance Corporation (SHFC) created by virtue of Executive Order No. 272 
issued on 20 January 2004. 


The corporation shall be the lead government agency to undertake 
social housing programs that will cater to the formal and informal sectors 
in the low-income bracket and shall take charge of developing and 
administering social housing program schemes. 
SEC. 5. Social Housing Programs.- Consistent with Republic Act No. 
7279, as amended, otherwise known as the "Urban Development and 
Housing Act of 1992," Republic Act No. 6864, as amended, otherwise 
known as the "Abot-Kaya Pabahay Fund or Social Housing Support Fund 
Act," and Republic Act No. 7835, otherwise known as the "Comprehensive 
and Integrated Shelter Financing Act of 1994," the corporation shan 
implement the fonowing programs: 
(a) Community Mortgage Program (CMP) - this program shall assist 
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 neighbourhood and 
homes to extent of their affordability. 
(b) Abot-Kaya Pabahay Fund Program (AKPFP) - this program seeks to 
implement a continuing program of social housing that shall make 
available to low-income families available for low income families to assist 
them in paying their housing loans; and (b) development financing where 
funds are utilized to support private developers, non-governmental 
organizations (NOOs) and landowners in providing affordable housing 
packages to low-income families. 
In addition to the foregoing major programs of the corporation, it is also 
tasked to develop and implement other social housing programs such as, 
but not limited to, the Localized Community Mortgage Program (LCMP), a 
CMP derivative that allows local government units (LOUs) to address the 
housing needs of informal settlers and low-income sectors in their 
respective jurisdictions. 
SEC.6. Powers and Functions of the Corporation. - The corporation 
shall have the fonowing powers and functions: 
(a) To promote land ownership, giving priority to the underprivileged 
and homeless citizens of the society; 
(b) To encourage maximum participation of LOU'S, NOOs, and people's 
organizations 
(Pos) 
to 
ensure 
that 
homeless 
citizens 
and 
the 
underprivileged can enjoy the benefits of the programs of the corporation; 
(c) To institutionalize and promote housing aided by self-help methods 
whereby families with their own and/or outside financing can build their 
homes with their labor and such other self-help approaches in home 
ownership, and introduce support facilities that will enhance the 
capabilities of low-income groups to acquire decent housing; 
(d) To assist LOUs to serve the housing requirements in their respective 
jurisdictions, such as resettlement, development of sites and services, and 
the renewal of blighted areas; 


(e) To formulate, adopt, amend and/or 
rescind such rules and 
regulations as may be necessary to carry out the provisions and purposes 
of this Act, as well as the effective exercise of the powers and functions, 
and the discharge of duties and responsibilities of the corporation, its 
officers and employees; 
(n To purchase, acquire, sell, discount, refinance or otherwise deal in 
community or home mortgages or participate therein or engage in estate 
management under such conditions and terms as maybe determined by 
the Board of Trustees of the corporation; 
(g) To provide a strong and sustainable finance program supporting the 
housing objectives and, in relation thereto, to borrow or raise money 
necessary to meet the financial requirements of its business by the 
issuance of bonds, promissory notes, and other evidences of indebtedness, 
and to secure the repayment thereof by mortgage, pledge, deed of trust 
upon the properties of the corporations 
(h) 
To invest and deal with the money and properties of the 
corporation in such manner as may, from time to time, be considered wise 
or expedient for the advancement of its interests and to sell, dispose of, or 
transfer the business, properties, and goodwill of the corporation, or any 
part thereof for such consideration and under such terms as it shall see fit 
to accept; 
(i) . To enter into any lawful arrangement for joint venture, profit-
sharing, union of interest, unitization, or trust agreement, reciprocal 
concession, or cooperation with any corporation, association, partnership, 
syndicate, entity, pe:rson, or governmental, municipal, or public authority, 
domestic or foreign, in the carrying on of any business or transaction 
deemed necessary, convenient, or incidental to the carrying out any of the 
purposes of this corporation; 
(j) To acquire or obtain from any government or authority, national, 
provincial, municipal or otherwise, or any corporation, company, or 
partnership, or person, such charter, contracts, franchise, privileges, 
exemption, licenses and concessions as may be conducive to any of the 
objectives of the corporation; 
(k) To establish and operate one or more branches, offices, or agencies 
and to carry on any or all of its operations and business without any 
restrictions as to place or amount, induding the right to hold, purchase or 
otherwise acquire, lease, mortgage, pledge, sell and convey, or otherwise 
deal with real and personal property anywhere in the Philippines, as may 
be necessary, or incidental to the conduct of the corporate business; 
(1) To conduct and transact any and all lawful activities, and to do or 
cause to be done anyone or more of the acts and purposes set forth 
herein, within or outside the Philippines, and in any and all foreign 
countries, and to do everything necessary, desirable, or incidental to the 
accomplishment of the purposes or the exercise of anyone or more of the 
powers herein enumerated or which shall, at any time, appear conducive 
to or expedient for the protection or benefit of this corporation; 
(m) To adopt, alter, and use corporate seal, to sue and be sued, and 
generally, to exercise all powers under the corporation laws which are not 
inconsistent herewith and/ or existing laws; and 


(n) To exercise such powers and perform such acts as may be 
necessary, useful, incidental or auxiliary to carry out the provisions of this 
Act. 
SEC. 7. Board oj" Trustees. -The corporation shall be governed and its 
activities directed, controlled, and managed by a Board of Trustees, 
hereinafter referred to as the "Board" which shall be composed of the 
following: 
(a) The Chairperson of the Housing and Urban Development and 
Coordinating Council, as the ex officio Chairman; 
(b) The Secretary of the Department of Finance as the ex-officio Vice 
Chairman; 
(c) The Secretary of the Department of the Interior and Local 
Government, or her/his duly designated representative; 
(d) The Secretary of the Department Budget and Management (DBM) or 
his/her duly designated representative; 
(f) The President of the National Home Mortgage Finance Corporation; 
(g) The President of the Corporation; and 
(h) Four (4) representatives of the private sector who shall each be 
appointed by the President of the Philippines for a term of five (5) years; 
Provided, That he/ she shall be a citizen and a resident of the Philippines, 
of good moral character, of known probity, and of proven competence and 
integrity, a holder of a degree in law, public administration, urban 
planning, development studies, economics, civil engineering or other 
related course with special training in housing and urban development 
programs, preferable in shelter finance management, from a recognized 
college or university: Provided, fUrther, That he/she must have an 
experience in the development of housing projects, organizations of 
housing associations, or management of shelter finance programs and 
other related activities for at least five (5) years. 
The Chairman, Vice Chairman and members of the Board shall be 
entitled to a reasonable per diem for each meeting actually attended at 
such amounts as may be fixed by the Board in accordance with existing 
laws, rules and regulations. 
SEC. 8. Powers oj" the Board. - The Board shall have the following 
powers: 
(a) To adopt the bylaws of the corporation, and to revise or amend the 
same as may be expedient to carry out effectively the functions of the 
corporation under this Act; 
(b) To formulate, revise, or adjust periodically all policies, and to 
promulgate such rules and regulations and manuals of procedure as are 
necessary to ensure the effective implementation of the provisions of this 
Act; 
(c) To direct the management, operation, and administration of the 
corporation; 


(d) To authorize such expenditures by the corporation as are in the 
interest of its effective administration and operation; 
(e) To approve the corporation's organizational and administrative 
structures and staffing pattern, and create offices or positions necessary 
for the efficient management, operation, and administration of the 
corporation, and to establish the appropriate compensation package for 
the officers and employees of the corporation: Provided, That all positions 
in the corporation shall not be exempt from Republic Act No. 6758, 
otherwise known as the Salary Standardization Law, and other existing 
laws, rules and regulations on salaries and compensation; and 
(f) To exercise such powers as may be necessary to carry out into effect 
the provisions of this Act and to accomplish the purposes for which the 
corporation is established. 
SEC. 9. President of the Corporation.-
The President of the 
Corporation shall be appointed by the President of the Philippines for a 
term of five (5) years: 
Provided. That he/she shall be a person of good 
moral character, unquestionable integrity, of known probity and 
patriotism, a holder of a degree in law, public administration, urban 
planning, development studies, business or economics, or other related 
course with special training in housing and urban development programs, 
preferably in shelter finance management, from a recognized college or 
university: Provided, further, That he/she must have expertise and 
experience of at least ten (10) years in business, finance, the professions, 
development of programs and other related activities. He/ she shall 
represent the corporation in all its dealings with other offices, agencies 
and instrumentalities of the government and with all persons and entities, 
public or private, domestic or foreign. He/she shall exercise such other 
powers, functions, and duties as may be delegated by the Board and she 
shall receive such reasonable compensation, allowances and other 
emoluments as Board may be determine. 
SEC. 10. Powers and Duties of the President of the Corporation. -
The President of the Corporation shall prepare the agenda of the Board of 
Trustees, execute and administer the policies and resolutions approved by 
it, and direct and supervise the operations and management of the 
corporation. Subject to the approval by the board in the case of 
managerial positions and above and subject to the confirmation by the 
board in the case of positions below managerial level, the president shall 
appoint the personnel of the corporation, prescribe their duties and 
qualifications, in accordance with existing civil service laws, rules and 
regulations, to the end that only competent personnel may be employed, 
and, when warranted, remove, suspend or otherwise discipling them for 
cause. 
SEC. 11. Abolition of the SHFC and Transfer of its Powers and 
Functions, Rights, Assets, and Liabilities. -
The SHFC is hereby 
abolished. Within six (6) months from the approval of this Act, the powers 
and functions of the SHFC and the programs under its administration, in 
particular the CMP and the amortization support and the developmental 
financing programs under the AKPFP, and such other related social 
housing programs being implemented by it, shall be transferred to and be 
exercised by the corporation. The corporation shall, by virtue of this Act, 
be subrogated to all the rights and assume all the contracts and liabilities 


, 
• 
of the SHFC and all its pertinent funds and appropriations, including 
unexpended allocations, records, property, assets, equipment and 
personnel as are necessary: Provided, 
That the existing officers and 
employees of the SHFC shall continue to assume their posts in a holdover 
capacity until their new appointments are issued. 
SEC. 12. Structure and Staffing Pattern.- The position structure 
and staffing pattern of the corporation shall be subject to the approval of 
the DBM. To ensure the continued implementation of the CMP and the 
. AKPFP during the period of transfer and transition, the SHFC personnel 
who are performing the functions transferred to the SHDFC shall continue 
to perform their duties; Provided, That the said personnel may, at their 
option, retire or be separated from the service for which they shall be 
entitled to the benefits provided by law at the time of retirement or 
separation. 
SEC. 13. Appropriations. -
The amount needed for the initial 
implementation of this Act shall be charged against the current year's 
appropriation for the CMP and the funds for the AKPFP being 
administered by the SHFC. Thereafter, such sums as may be necessary for 
the continued implementation of this Act shall be included in the General 
Appropriations Act. 
SEC. 14. Interim Applicability of Existing Policies, Guidelines, 
and Rules. -
Existing policies, guidelines, rules and regulations with 
respect to the functions of the SHFC which have been transferred to the 
SHDFC shall continue to be applicable and in effect until amended or 
modified accordingly. 
SEC. 15. Audit. - The Chairman of the Commission on Audit shall 
appoint and assign to the corporation a Resident Auditor and other 
subordinate personnel, responsible to and removable only by the said 
Commission on Audit Chairman, to perform audit duties, without 
prejudice, however, to the power of the Board of Trustees to contract 
another mode of independent audit service, in addition to that provided by 
the Commission on Audit as provided for under the Presidential Decree 
No. 1445, otherwise known as the Government Auditing Code of the 
Philippines. The Auditor shall submit, through the Commission, and 
annual report on the financial condition and the result of the operations of 
the corporation to the President of the Republic of the Philippines and to 
the Senate and the House of Representatives. 
SEC. 16. Reports.- The corporation shall submit an annual report to 
the President of the Philippines and to both chambers of the Congress of 
the Philippines. 
SEC. 17. Suppletory Application of the Corporation Code. - The 
provision of the Corporation Code shall have suppletory application on 
matters not provided in this Act. 
SEC. 18. Implementing Rules and Regulations. - The implementing 
rules and regulations to effectively carry out the provisions of this Act 
shall be adopted and promulgated by the Board of Trustees of the 
corporation not later than ninety (90) days after the approval of this Act 
which shall be published in at least one (1) national newspaper of general 
circulation. 


, • 
SEC. 19. Repealing Clause.- All laws, decrees, executive orders, or 
rules and regulations and other issuances, or parts thereof which are 
inconsistent with or contrary to the provisions of this Act or its purposes 
are hereby repealed, amended, or modified accordingly. 
SEC. 20. Separability Clause. -
If, for any reason, any provision of 
this Act, or the application thereof to any person or circumstances, is held 
invalid or unconstitutional, the remaining provisions not affected thereby 
shall continue to be in full force and effect. 
SEC. 21. Effectivity. - This Act shall take effect fifteen (15) days after 
its complete publication in the Official Gazette or in at least two (2) 
national newspaper of general circulation. 
Approved,