Republic of the Philippines
HOUSE OF REPRESENTATIVES,
Quezon City, Metro Manila f

NINETEENTH CONGRES!
First Regular Session

3195

HOUSE BILL N

Introduced by Representative Ivan Howard A. Guintu

EXPLANATORY NOTE

In March 2020, the Philippines reported its first case of COVID-19 which has then
spread all throughout the country. With the lockdown of Metro Manila in the latter half of
March, the country was effectively thrust into an abrupt economic halt. forcing many
businesses to shut down due to insufficient income and causing workers to lose their jobs.

According to the International Labour Organization (ILO). The Philippines recorded
its highest unemployment rate of 17.7% in April 2020. This is equivalent to about 7.3 million
unemployed individuals.'In November 2021, the unemployment rate lowered to 6.5%, the
lowest since the start of the COVID-19 Pandemic. according to the Philippine Statistics
Authority

‘At the height of the pandemic, many struggled to meet their recurring financial
obligations including rent, water and electric utilities, among others. Low-income renters who
had struggled to pay rent before the pandemic were in a more vulnerable position because of
loss of work and increased expenses.

ce the peak of the pandemic. there

Despite the improvement of economic activity si
still remain households that have not recovered from its severe impact. In order to ease the
financial burden of those who have lost their jobs or livelihood due to the COVID-19
Pandemic, financial aid and assistance must be given to them, However, such aid must also
be fair to lessors who rely on rental income as their source of income.

* CoviO-19 Labour Market Impact in the Philippines, 2020, International Labour Organization
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nedaf~"tex=The¥420Philippine%420Statstics s20Authority%20reported, oP%20the"+20COVID%2D19%20pandemic.



Thus, this bill seeks to mandate concerned government financial institutions to offer a
rent-refinancing loan, to impose a three (3) month moratorium on eviction upon effectivity of
the bill, and to set-up rental assistance centers by the Department of Human Settlements and
Urban Development, among others.

In view of the foregoing, the passage of this bill is earnestly sought.

I
Representati

 GUINTU
Pinuno Partylist



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City. Metro Manila

NINETEENTH CONGRESS
First Regular Session

3195

HOUSE BILL NO. _

Introduced by Representative Ivan Howard A, Guintu

AN ACT
INTRODUCING A RENT RELIEF PLAN TO ASSIST RESIDENTIAL TENANTS,
ADVERSELY IMPACTED BY THE 2020 ECONOMIC CRISIS, AND FOR OTHER
PURPOSES:

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

SECTION 1. Short Title. — This Act shall bc known as the “Rent Relief Act.”

SEC, 2. Rent refinancing loans by government financial institutions. ~The Social
ity System, the Government Service Insurance System (GSIS), and the Pag-IBIG
Fund are hereby mandated to make available to cligible members rent refinancing loans with
the following specifications:

a. Eligible members shall qualify for loans of up to one year's worth of the member's
rent, Provided that the loan shall not exceed Two Hundred Thousand Pesos
(P200,000):

b. ‘The interest rate for these loans shall not exceed the lowest interest imposed by the
SSS. GSIS, and Pag-IBIG Fund for their respective active loan products:

¢, The loans shall be payable for at least five (5) years.

Provided, that these loans shall be made available within one (1) year upon the date of
effectivity of this Act.

. GSIS. and Pag-IBIG Fund shall jointly issue the rules and regulations necessary
for the implementation of this Section within thirty (30) days upon the effectivity of this Act.


SEC. 3. Rent refinancing loans by government banks. ~ The Land Bank of the
Philippines (LBP) and the Development Bank of the Philippines (DBP) shall offer rent
refinancing and restructuring loans with the following specifications:

a. Eligible borrowers shall qualify for loans of up to one year's worth of residential rent.
Provided that the loan shall not exceed Two Hundred Thousand Pesos (P200.000):

b. The interest rate for these loans shal! not exceed the lowest interest imposed by the
LBP and DBP for active loan products with similar terms;

‘The loans shall be payable for at least five (5) years:

d. LBP and DBP may require a lease agreement, promissory notes, and similar
suance of these loans.

documents for the

Provided, that these loans shal! be made available within one (1) year upon the date of
effectivity of this Act.

‘The Department of Finance (DOF). with the LBP and DBP, shall issue the rules and
regulations necessary for the implementation of this Section within thirty (30) days upon the
effectivity of this Act.

SEC. 4. Promissory notes as rent relief agreements. — Lessors who honor promissory
notes from tenants may also, with the tenant, apply for the loans under Sections 2 and 3 of
this Act. Provided that funds from the loan shall be disbursed directly to the lessor. in
installments as may be agreed upon with the bank, and that, for the entire rental period paid
for by the loan and an additional three (3) months thereafter, the tenant shall not be evicted
from the property. Provided further, that should this prohibition against early eviction be
violated by the lessor. the lessor shall assume all unpaid obligations of the tenant pursuant to
this Act

SEC. 5. Eviction moratorium, . To ensure that stay-at-home orders are enforced. any
landlord, owner of a residential property, or other person with a legal right to pursue eviction
or possessory action, shall not evict any tenant from any residential property for three (3)
months upon the effectivity of this Act. Provided that the President may extend this
moratorium twice. in increments of three (3) months

Provided further that this section does not preclude local and national authorities from
imposing additional requirements that provide greater public-health protection and are more
restrictive than the requirements in this Section.

SEC. 6. Financial obligations of tenants. ~ This Act does not relieve any individual
of any obligation to pay rent, make a housing payment, or comply with any other obligation

that the individual may have under a tenancy, lease, or similar contract. Nothing in this Act


precludes the charging or collecting of fees, penalties, or interest as a result of the failure to
pay rent or other housing payment on a timely basis, under the terms of any applicable
contract. Provided that financial obligations under such contracts may be refinanced or
restructured with loans under Section 2 and 3 of this Act.

SEC. 7. Rent renegotiation and refinancing assistance. - ‘The Department of Human
Settlements and Urban Development (DHSUD) shall establish, in coordination with Local
Government Units (LGU) assistance centers that would assist tenants and lessors renegotiate
towards more mutually beneficial terms for both parties and access the
applicable under this Act. These assistance centers shall

rent. contract
refinancing and loan arrangements
also compile inventories of available government assistance programs for residential tenants
experiencing financial difficulties due to the COVID-19 pandemic.

The DHSUD shall also set up a national hotline and contact center which shall
remotely provide the services of the assistance centers established pursuant to this Section.

SEC. 8, Implementing Rules and Regulations (IRR). — Unless otherwise specifically
stated, the DHSUD shall issue the rules and regulations necessary for the implementation of
this Act, within thirty (30) days upon the effectivity of this Act. Provided. that the
moratorium under Section 5 of this Act shall take effect immediately upon the effectivity of
this Act.

SEC. 9 Separability Clause. — If, for any reason, any section, subsection, clause or
term of this Act is held invalid or unconstitutional, such parts not affected by such declaration
shall remain in full force and effect.

SEC. 10. Repeating Clause. ~ All existing laws, orders, decrees. rules and regulations,
or parts thereof, inconsistent with the provisions of this Act are hereby amended, modified or
repealed accordingly

SEC. 11. Effectivity. — Vhis Act shall take effect fifteen (15) days after its publication
in the Official Gazette or ina newspaper of general circulation.

Approved,