NINETEENTH CONGRESS OF THE
)
REPUBLIC OF THE PHILIPPINES
)
First Regular Session
HOUSE OF REPRESENTATIVES
HOUSE BILL NO. ____
Introduced by REPRESENTATIVE VIRGILIO S. LACSON
EXPLANATORY NOTE
Housing improvement is one of the most important sectors of the economy. It ensures the
prosperity of urban development and sustainability. It provides not only shelter, but dignity to the
people. As such, it is incumbent upon the government to place heavy emphasis on sheltering in place.
It is worth noting, however, that as of end of December 2016, there are at least 799,780
households in the Philippines which are in unacceptable housing and 493,427 households
involuntarily doubled-up with other households in living quarters of an acceptable type.
The government has very limited resources to address the housing need. For the last 22
years, average annual infrastructure budget under the National Housing Authority (NHA), which is
the sole national government agency mandated to engage in shelter production focusing on the
needs of the lowest 30% of the urban population, is at PHP 6.34 billion. This translates to housing
assistance for 56,427 households annually. For 2020, the infrastructure budget under the NHA is
only PHP 3.28 billion, which is 48% below average. 
In order to address the demand for decent and quality housing, the government needs private
sector participation. However, the private sector encounters many challenges that hamper the
development of low-cost housing projects in the country. The rapid increase in the prices of real
estate and construction costs is a major barrier for housing developers. 
Considering the limited resources of the government to aid the housing industry, the
provision of tax incentives to private players is the fastest and most effective way to address housing
affordability.  For the reasons stated above, the passage of this bill is urgently requested.
VIRGILIO S. LACSON
Manila Teachers Party-list
July 27, 2022
3:28 pm
2571


NINETEENTH CONGRESS OF THE
)
REPUBLIC OF THE PHILIPPINES
)
First Regular Session
HOUSE OF REPRESENTATIVES
HOUSE BILL NO. ____
Introduced by REPRESENTATIVE VIRGILIO S. LACSON
AN ACT
PROVIDING
FOR
TAX
INCENTIVES
ON
DEVELOPMENT OF
ECONOMIC
AND
MEDIUM-COST HOUSING 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress
assembled: 
Section 1. Short Title. - This act shall be known as the “ BAHAY NI JUAN ACT”.. 
Sec. 2. Declaration of Policy. - It is hereby declared a policy of the State to address the
housing demand, encourage private participation, and provide incentives to needed investments for
mass housing taking into consideration the following:
a. Housing is a key industry in the economy due to its strong linkages to other industries;
b. Government has limited resources that it can allocate for mass housing;
c. Current housing supply is insufficient to meet housing demand;
d. The cost of housing production is constantly increasing.
Sec. 3. Incentives for Mass Housing. - Enterprises engaged in the development of economic
and medium-cost housing and its related activities duly registered with the Department of Human
Settlements and Urban Development (DHSUD) shall be entitled to the same incentives granted to
enterprises registered with the Board of Investments pursuant to Executive Order No. 226,
otherwise known as the "Omnibus Investment Code of 1987”.
Such incentives shall include: 
a. Income tax holiday;
b. Exempt from the coverage of the expanded value-added tax law;
c. Duty-free importation on imported capital equipment and imported raw materials
For this purpose, the industry shall be included in the annual Investment Priorities Plan
(IPP). 
2571


Sec. 4. Definition of Terms. - For the purpose of this Act, the terms below shall be construed
to mean, except where explicitly indicated or where the context clearly indicates otherwise, as
follows: 
a. Economic Housing. Residential subdivision and condominium units which conforms with
the development standards of Batas Pambansa Blg. 220 (BP 220), and are sold to the public
within the current maximum selling price of PHP 1,700,000.00 as prescribed by the DHSUD
per Housing and Land Use Regulatory Board (HLURB) Memorandum Circular No. 09,
Series of 2015. 
b. Medium-Cost Housing. Residential subdivision and condominium units which conforms
with the development standards of Presidential Decree No.957 (BP 220), and are sold to the
public within the current maximum selling price of PHP 4,000,000.00 as prescribed by the
DHSUD per HLURB Memorandum Circular No. 04, Series of 2006.
c. Related Activities. The domestic manufacturing industries which have direct bearing on
the long-term viability of the housing industry. 
Sec. 5. Price Ceiling Adjustment. – The price ceiling for economic and medium cost housing
shall be jointly determined by the DHSUD and the National Economic Development Authority
(NEDA); provided, that every three (3) years thereafter, the price ceiling shall be adjusted to its
present value using the Consumer Price Index (CPI) as published by the National Statistics Office
(NSO); Provided, further, that such adjustment shall be published through a Memorandum Circular
to be issued not later than 31 March of each year. 
Sec. 6. Implementing Rules and Regulations. - The DHSUD, in consultation with the BOI,
Bureau of Customs (BOC), and other appropriate agencies from the private and government
sectors, shall issue guidelines and prescribe rules and regulations for within one hundred twenty
(120) days after the effectivity of this Act which shall be published in two (2) newspapers of
general circulation. 
A copy of such guidelines, rules and regulations shall be furnished to the Congress of the
Philippines. 
Sec. 7. Repealing Clause. - All other laws, decrees, rules, regulations, and other
administrative issuances or provisions thereof which are contrary to or inconsistent herewith are
hereby repealed or modified accordingly. 
Sec. 8. Separability Clause. – If, for any reason, any section or provision of this Act is held
unconstitutional or invalid, the other sections or provisions hereof shall not be affected thereby.
Sec. 9. Effectivity. · This Act shall take effect after fifteen (15) days following its publication
in the Official Gazette or in any newspaper of general circulation. 
Approved,