Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH (18) CONGRESS
First Regular Session

HOUSE BILL NO.__157

Introduced by REP. JOSE CHRISTOPHER Y. BELMONTE.

EXPLANATORY NOTE

House Bill No. 8184 entitled “An Act Establishing a Rental Subsidy Program for
Informal Settler Families (ISF) and Appropriating Funds Therefor” was originally filed by this
Representation in the Third Regular Session of the 17" Congress.

This bill was filed cognizant of Section 9, Article XII (Social Justice and Human
Rights) of the 1987 Constitution, where the State is mandated to “undertake, in cooperation
with the public 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 resettlements areas.”

However, despite the expressed constitutional mandate of the State for adequate and
affordable housing, current Philippine laws and programs that aim to move and resettle
informal settler families (ISFs) have become insufficient given the growing demands of
urbanization. Past and existing resettlement programs have been unsustainable, with the
production of housing units below market prices or at subsidized mortgage rates for the poor.
Accordingly, the heavy reliance on underpriced loans and guaranty products has led to
significant financial losses, with government housing agencies regularly becoming insolvent.

A census of ISFs living in waterways in Metro Manila, conducted in 2014! revealed
that despite an offer of homeownership, 32% preferred to stay in their current residence, even
along the waterways or danger areas. The same census showed that 50% of ISFs in Metro

1 University of the Philippines Planning and Development Research Foundation Inc. (UP PLANADES) dataset. Component
1: Socio-Economic Profiling and Community Organizing of ISFs in Danger Areas. Submitted by The University of the
Philippines Planning and Development Research Foundation Inc. (UP PLANADES) to the Department of Interior and Local
Government and the Australian Embassy for the Australian Aid Technical Assistance to the Department ofthe Interior and
Local Government (DILG) on Government of the Philippines Program for Securing Safety of Informal Setter Families in
Metro Manila, 2014


Manila are not homeowners but, sharers or renters. Thus, a paradigm shift is necessary to solve
the problem of resettlement.

A rental subsidy is practicable and pragmatic. By granting ISF financial assistance, they
can immediately leave dangerous areas or infrastructure project sites and merge with the
mainstream populace within a city. This, can even spur the local economy and urban planning.
Moreover, local governments can maximize its role of housing provision and social protection
for the vulnerable ISFs in their respective jurisdiction through public and private rental
housing. This bill aims to lay out a clear-cut policy on the delineation and extent of a subsidy
that will affect an equitable rental assistance for ISFs.

The immediate passage of this timely measure is most earnestly sought.

Spied


ear aHwewne

10
1
12
2B
4

Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH (18) CONGRESS
First Regular Session

HOUSE BILLNO_22?

Introduced by REP. JOSE CHRISTOPHER Y. BELMONTE

AN ACT
ESTABLISHING A RENTAL SUBSIDY PROGRAM
FOR INFORMAL SETTLER FAMILIES (ISFS)
AND APPROPRIATING FUNDS THEREFOR

Be it enacted by the Senate and the House of Representatives of the Republic of the
Philippines in Congress assembled:

SECTION 1. Title. — This Act shall be known as the “Rental Subsidy Program for ISFs
Act.”

SEC 2. Declaration of Policy. — It is hereby declared the policy of the State to:

(a) Promote a just, equitable, and inclusive urban development through programs
providing adequate social services, broader housing options, livelihood and
employment, and an improved quality of life for the Filipino people;

(b) Provide an innovative housing program providing affordable, livable, and decent
housing, as well as access to basic social services, especially for the underprivileged:

(c) Protect the urban poor from the impacts of immediate dislocation due to eviction and
demolition arising from government projects and their lack of tenure.

SEC. 3. Definition of Terms. — For purposes of this Act, the following terms or words and

phrases shall mean or be understood as follows:

(a) Informal Settler Families (ISFs) refers to individuals or households living under any of
the following conditions:

(0) A lot/dwelling unit without consent of the property owner;


COV SHR WN

10
1
12
2B

15
16
17
18
19
20
2
22
23

25
26
27
28
29
30
31
32
33

(ii) Danger areas;
(iii) Areas for government infrastructure projects;
(iv)  Protected/forest areas (except for indigenous peoples);
(vy) Areas for Priority Development as declared under Proclamation No. 1967,

Series of 1980, if applicable; and
(vi) Other government/public lands or facilities not intended for human habitation.
(b) Rental Subsidy refers to a financial assistance provided by the government to low-

income ISFs to rent accommodation in the private rental market. The rental subsidy is
not a full subsidy. The amount of which should not exceed the rates regulated under
Republic Act No. 9653, otherwise known as Rent Control Act of 2009 and is
determined by the difference between the average amount renter ISFs are paying every
month and the average low-cost rental housing amount in the area from previous census
and surveys conducted by the government.

SEC. 4, Rental Housing Subsidy Program. ~ A Rental Housing Subsidy Program for ISFs,
herein referred to as the Program, shall hereby be established as a housing and social protection
program, with the end in view of enabling ISFs to lead decent lives and giving them access to
the formal housing market. Eligible ISFs shall receive a flat-rate rental subsidy, the amount of
which to be jointly determined by the Department of Human Settlements and Urban
Development (DHSUD) and the National Economic and Development Authority (NEDA);
Provided, that at any time, but not more often than once every two (2) years, such subsidy may
be reviewed or revised to conform to prevailing economic conditions. Rental subsidy shall be
granted to qualified beneficiaries for a maximum of five (5) years or upon their availment of
permanent housing, whichever comes first.

SEC. 5. Program Eligibility. — Eligible ISFs shall be those who are:

(a) Living in danger areas as defined by the DHSUD;

(b) Staying in areas identified for government infrastructure projects with firm
funding commitments, such as those of the Department of Public Works and
Highways (DPWH), Department of Transportation (DOTr), and Local
Government Units (LGUs), validated against the alphalist of the National
Housing Authority (NHA), Local Government Units (LGUs) and Socialized
Housing Finance Corporation (SHFC), and actual validation by national
government implementing agencies such as, but not limited to DPWH, DOTr,
and the Metro Manila Development Authority (MMDA);

(c) Having at least one employed household member or any source of livelihood;


© eVvauawne

10
co
12
13
4
15
16
7
18
19
20
2
22
23
24
25
26
27
28
29
30
31
32
33

(@) Willing to vacate the informal settlement area, transfer to a safer area, and sign

a maximum 5-year contract with the government.

SEC. 6. Conditions for Entitlement. — All eligible ISF beneficiaries shall comply with
the following conditions as a requirement for continued program eligibility:
(a) The ISF shall not move back to the danger area, government infrastructure
area, or private land; and,
(b) The ISF shall pay the counterpart rental to the lessor.
The ISF beneficiary who shall maintain a good payment standing, shall be prioritized
as a beneficiary in future government housing programs.
SEC. 7. Form of Payment. - The rental subsidy shall be distributed by the DHSUD on
a monthly basis to the lessors of the ISFs through a dedicated bank account in a government
bank.
SEC. 8. Roles of Government Agencies. - The rental subsidy program shall involve
national government agencies and instrumentalities with their specific roles outlined below:
(a) DHSUD shall:

(i) Coordinate with housing agencies to formulate Program targets and
integrate these to national housing policy;

(ii) Promulgate appropriate housing policies among the attached corporations
of DHSUD in line with the implementation of this Program;

(iii)Disburse the rental subsidy to the lessors of the ISFs through a dedicated
bank account in a government bank;

(iv)Enlist ISF beneficiaries and their respective lessors for the Program;

(v) Set up monitoring and evaluation system, tools, exit strategy, and
methodologies on compliance of conditions, implementation, output and
impact assessments together with its attached agencies, DSWD, Presidential
Commission on the Urban Poor (PCUP), and LGUs; and,

(vi)Recommend to the Congress measures and policies for the responsive
delivery of the commitments under this Act.

(b) NHA shall:

(i) Certify the eligibility of the ISF to qualify as beneficiary for this program;

(ii) Coordinate with infrastructure program implementing agencies such as
DPWH and DOTr for the identification of areas for immediate resettlement;

(iii) Update the alphalist and come up with a Socio-Economic Profile of ISFs to
be resettled as part of the National Resettlement Program,


COV anneune

te
12
13
14
15
16
7
18
19
20
2
22
23
24
25
26
27
28
29

31
32
33

(iv) Disburse the rental subsidy to the lessors of the ISFs through a dedicated
bank account in a government bank;

(v) Enlist ISF beneficiaries and their respective lessors for the Program; and,

(vi)Design and conduct monitoring and evaluation, which includes a Grievance
and Redress System and exit strategy of this Program.

(c) Home Development Mutual Fund (HDMF) shall:

(i) Enroll the ISFs to the HDMF (PAGIBIG) to facilitate beneficiaries’ entry

to the formal housing market.
(@) DSWD shall:

(i Design the social preparation phase, formation workshops and training
programs to ensure that a qualified ISF beneficiary and the LGU are aware
of the eligibility and conditions pertinent to this Program; and,

(ii) Conduct social preparation activities with PCUP and LGUs.

(©) PCUP shall:

(Assist DSWD in the design of the social preparation activities, workshops
and training programs for ISFs; and,

(ii) Conduct social preparation activities with the LGUs and DSWD.

() Technical Education and Skills Development Authority (TESDA) shall:

(i) Provide skills training to ISF beneficiaries.

(g) LGUs shall:

(i) Register the lessors in their respective areas of jurisdiction through the
barangays;

(ii) Assist the NHA in conducting census and tagging of ISFs affected for
immediate resettlement;

(iii)Assist the DSWD and PCUP in conducting social preparation activities,

(iv)Contain the vacated areas of ISFs to help achieve the objectives of this
Program;

(v) Assist the DSWD in monitoring and evaluation of this Program; and,

(vi)Conduct field validation of ISFs and their respective lessors with DSWD in
the rental housing units.

SEC. 9. Additional Positions and Personnel for the NHA. — For purposes of this Act,
the NHA, shall upon its discretion, create positions and enlist additional personnel to carry out
this mandate.


CoV aunrewne

10
1
12
13
14
15
16
7
18
19
20

SEC. 10. Appropriations. — The amount necessary for the effective implementation of
this Act shall be charged against the current appropriations for the DHSUD. Hereafter, such
amount as may be necessary for its continued implementation shall be included in the annual
General Appropriations Act.

SEC. 11. Implementing Rules and Regulations. ~ To fully implement the provisions of
this Act, the DHSUD, the NHA, in close coordination with the DSWD, PCUP, and LGUs,
herein represented by the Union of Local Authorities of the Philippines (ULAP), within six (6)
months, shall issue rules, regulations, guidelines necessary to carry out the intent and purpose
of this Act.

SEC. 12. Mandatory Review on the Implementation of this Act. - The DHSUD shall
submit to Congress a report on the implementation of this Program at the end of the second
year from the date of the effectivity of this Act and every two years thereafter.

SEC. 13. Separability Clause. ~ If any portion or provision of this Act shall be held
unconstitutional or invalid, the remaining provisions not affected thereby shall continue to be
in full force and effect.

SEC. 14. Repealing Clause. — All laws, executive orders, proclamations, rules,
regulations and other issuances or parts thereof which are inconsistent with the provisions of
this Act are hereby repealed, amended or modified accordingly.

SEC. 15. Effectivity. — This Act shall take effect fifteen (15) days following its
publication in the Official Gazette or in at least two (2) newspapers of general circulation.

Approved,