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THIRTEENTH CONGRESS OF THE REPUBLIC 
First Regular Session 
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OF THE PHILIPPINES 
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t? 
S E N A T E  
S. No. 
Introduced by Senator S. R. OsmeAa 111 
EXPLANATORY NOTE 
Housing is a public concern in the sense that adequate housing facilities 
contribute to public health, the stability of the family as a social institution, and 
the growth of cohesive communities. 
Residential home building also plays a key role in the cyclical movements 
of the economy. As a major part of gross national capital formation, residential 
building has been known to signal booms or busts in the economy. 
Government intervention in public housing consists of socialized housing 
programs for the poor who cannot afford to set aside a budget for housing, and 
financing programs giving access to financing for those families who have the 
long-term capability to amortize investments in housing. 
This bill seeks the creation of home financing facilities, or a housing bank 
within the Development Bank of the Philippines. The housing bank, to be 
capitalized at @ I O  billion, of which P5 billion will be exclusively used to support 
the shelter program, to ensure a steady supply of long-term capital for home 
financing. The housing bank will have the power to: 
a) invest and grant loans directly or indirectly for the establishment of 
services, infrastructures, housing and real estate; 
b) underwrite, purchase, own, sell, mortgage stocks bonds, debentures, 
securities, 
foreign or local currencies and other evidence of 
indebtedness issued for and in connection with any project or enterprise 
referred to in the preceding paragraphs; 
c) serve as the national housing bank, provide banking services to fulfill the 
requirements of the housing program of the government and meet the 
needs of homeowners, employees, and small and medium scale 
entrepreneurs in the acquisition, construction or development of their 
housing units. 
In view of the foregoing, passage of this bill is earnestly requested. 
SERGIO OSMENA Ill 
Senator 


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THIRTEENTH CONGRESS OF THE REPUBLIC 
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OF THE PHILIPPINES 
First Regular Session 
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S E N A T E  
S. No. 
Introduced by Senator S. R. Osmeiia 111 
AN ACT 
PROVIDING FOR THE COUNTRY’S URBAN DEVELOPMENT PROGRAM 
THROUGH THE CREATION OF A 
HOUSING BANK WITHIN THE 
DEVELOPMENT 
BANK OF THE 
PHILIPPINES, 
AMENDING 
THE 
PROVIDIONS 
OF EXECUTIVE ORDER NO EIGHTY ONE (E.O. 81), 
OTHERWISE KNOWN AS THE CHARTER OF THE DEVELOPMENT BANK 
OF THE PHILIPPINES 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. The second and third “WHEREAS” clauses of Executive 
Order No. 81, the revised DBP Charter, are hereby amended to read as follows: 
“WHEREAS, 
within the context of the general policy, 
there 
nevertheless exists a clear role for direct government participation in the 
banking system through a government development bank, particularly in 
INVESTMENTS AND servicing the medium and long term requirements of 
agriculture, and small and medium-scale industry, export development, 
S ERVl C ES , 
INFRASTRUCTURE, 
HOUSl NG, 
REAL 
ESTATE 
DEVELOPMENT, and the government sector; 
“WHEREAS, 
the Development Bank of the Philippines is the 
government 
financing institution 
charged with providing 
principally 
medium and long term credit facilities for agriculture, industry, export 
development, 
SERVICES, INFRASTRUCTURE, HOUSING, 
REAL 
ESTATE DEVELOPMENT, and the government sector”; 
SECTION 2. The second paragraph of Section 2 of the same Charter is 
hereby amended as follows: 
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“Sec. 2. Name, Purpose and Domicile. - xxx 
The primary purpose of the Bank shall be to provide banking services 
principally to service medium and long term CREDIT AND INVESTMENT 
needs of agriculture and industrial 
enterprises 
particularly 
in the 
countryside and preferably for small and medium scale enterprises, AND 
TO PROVIDE 
AN ADEQUATE 
FINANCIAL 
SUPPORT FOR THE 
EFFECTIVE 
IMPLEMENTATION 
OF 
THE 
HOUSING 
AND 
DEVELOPMENT PROGRAMS OF THE COUNTRY, BY ASSURING A 
STEADY SOURCE OF CHEAP AND LONG-TERM CAPITAL FOR 
HOUSING FINANCE AND MANAGEMENT; Provided, however, That the 
pursuit of these objectives shall be undertaken within the context of a 
financially viable and stable banking institutions; AND Provided, [further,] 
FINALLY, 
That the Bank 
shall [continue to] 
be classified 
as a 
[ d eve I o pme n t] S P EC I AL I ZE D bank , 
P E RFO R M I N G D EVE LO P M E NTAL 
FUNCTIONS AND ACTIVITIES, 
[and Provided, finally, That 
unless 
otherwise provided herein, the Bank may perform all other functions of a 
thrift bank.]” 
SECTION 3. Section 3, paragraphs (b) and (e) of the same Charter are 
also hereby amended to read as follows: 
“SEC 3. 
Corporate 
Powers - 
The Development Bank of the 
Philippines shall have the power: 
(a) 
xxx 
(b) 
To MAKE’INVESTMENTS AND grant loans, DIRECTLY OR 
INDIRECTLY, for the establishment, development or expansion of any 
agricultural or industrial enterprise, 
SERVICES, 
INFRASTRUCTURE, 
HOUSING AND REAL ESTATE; 
(c) 
To acquire, [assign,] UNDERWRITE, PURCHASE, OWN, 
SELL, MORTGAGE, 
or otherwise dispose of [marketable] 
STOCKS, 
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BONDS, DEBENTURES, securities, [and other debt instruments which are 


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essential to the effective conduct of its general banking activities] 
FOREIGN OR LOCAL CURRENCIES AND OTHER EVIDENCE OF 
INDEBTEDNESS ISSUED FOR OR IN CONNECTION WITH ANY 
PROJECT OR ENTERPRISE REFERRED TO IN THE PRECEDING 
PARAGRAPHS’; 
SECTION 4. Section 3 of the said Charter is further amended by adding a 
new paragraph (h) which reads as follows: 
SEC. 3. Xxx 
(H) 
TO SERVE AS THE NATIONAL HOUSING BANK. PROVIDE 
BANKING SERVICES 
TO FULFILL 
THE REQUIREMENTS OF THE 
HOUSING PROGRAM OF THE GOVERNMENT AND MEET THE NEEDS 
OF HOMEOWNERS, EMPLOYEES, AND SMALL AND MEDIUM SCALE 
ENTERPRENEURS 
IN THE ACQUISITION, 
CONSTRUCTION, 
OR 
DEVELOPMENT OF THEIR HOUSING UNITS.” 
SECTION 5. Section 4 of the same Charter is hereby amended to read as 
follows: 
“SECTION 4. Loans and Other Investments. - Loans and other 
investments of the Bank shall be subject to the [same] MAXIMUM limits and 
ceilings applicable to [thrift] banks under existing provisions of law and 
regulations promulgated by the Monetary Board [, including but not limited 
to prescribed limits and ceilings: Provided, That loans and investments 
would exceed the prescribed limits as the result of the implementation of 
its rehabilitation program, as well as those investments authorized under 
Section 6 hereof, which are in excess of the prescribed limits shall be 
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reduced within five years in accordance with such program of reduction as 
may be approved by the Monetary Board. The period of reduction may be 
extended to another five years by the President of the Philippines upon 
recommendation of the Monetary Board.]” 


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as follows: 
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“SEC. 5. Issuance of NOTES and Bonds. - The Bank may issue all 
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kinds of NOTES, bonds, debentures and securities, and/or the renewal of 
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refunding thereof 
[hereinafter called ‘Conds’], 
AND INCUR OTHER 
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OBLIGATIONS within 
and/or outside the Philippines, 
as such terms, 
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rates, and conditions as the Board of Directors of the Bank may determine 
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subject to compliance with provisions of applicable law, and rules and 
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regulations promuIgated.by the Monetary Board. 
SECTION 6. Section 5 of the same Charter is also hereby amended to read 
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The Bank shall, WHEN NECESSARY, provide 
for appropriate 
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reserves for the redemption or retirement of the bonds. These bonds and 
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other obligations shall be redeemable at the option of the Bank at or before 
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maturity and in such manner as may be stipulated therein and shall bear 
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such rate of interest as may be fixed by the Bank.” 
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“[The] FOR PURPOSES OF SERVICING AS THE NATIONAL 
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HOUSEING BANK, THE DEVELOPMENT BANK OF THE PHILIPPINES IS 
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HEREBY AUTHORIZED TO HAVE A capital stock [of the Bank shall be 
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Five] AMOUNTING TO TEN Billion Pesos (PI 0,000,000,000.00) to be 
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one hundred million common shares with par value of PI00 
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These shares are available for subscription by the National 
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Government. 
OF THIS AMOUNT, 
FIVE BILLION SHALL BE USED 
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EXCLUSIVELY FOR THE SUPPORT OF THE SHELTER PROGRAM AS 
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MANDATED BY EXISTING LAWS, PAYABLE BY THE NATIONAL 
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GOVERNMENT 
WITHIN TWO YEARS FROM THE EFFECTIVITY OF 
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THIS ACT. [Upon the effectivity of this Charter, the National Government 
SECTION 7. 
Sec. 7 of the same Charter is also hereby amended by 
inserting a new paragraph which reads as follows: 
divided into 
per share. 
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shall subscribe to Twenty-Five Million common shares of stock worth Two 
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Billion Five Hundred Million which shall be deemed paid for by the 


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Government with the net asset values of the Bank remaining after the 
transfer of assets and liabilities as provided in Section 30 hereofl. 
UPON THE EFFECTIVITY OF THIS ACT, THE NATIONAL 
GOVERNMENT SHALL SUBSCRIBE TO FIFTY [Twenty-five] MILLION 
COMMON SHARES OF STOCK WORTH FIVE [Two] BILLION [and Five 
hundred million] 
PESOS 
THE REMAINING 
COMMON SHARES OF 
STOCK ARE AVAILABLE FOR SUBSCRIPTION BY THE NATIONAL 
GOVERNMENT 
AGENCIES 
AND 
GOVERNMENT 
OWNED 
AND 
CONTROLLED CORPORATIONS OR MAY BE OFFERED FOR SALE OR 
FOR SUBSCRIPTION BY PRIVATE INDIVIDUALS CONSISTENT WITH 
EXISTING BANKING LAWS." 
SECTION 8. The first'and third paragraphs of Section 8 of the same 
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"SEC. 8. Board of Directions; Composition; Tenure; Per Diems. - 
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The affairs and business of the Bank shall be directed and its properties 
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managed and preserved 
and its corporate powers exercised, 
unless 
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otherwise provided for in this Charter, by a Board of Directors consisting of 
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seven members to be appointed by the President of the Philippines. The 
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term of office of the Chairman [,I AND THE Vice Chairman [,I SHALL BE 
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FOR A PERIOD OF THREE YEARS, and [the] ALL OTHER members of the 
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Board of Directors shall be for a period of [one year] TWO YEARS AND 
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until such time as their successors are appointed. 
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Charter are also hereby amended to read as follows: 
No person shall be [elected] APPOINTED Director of the Bank unless 
he is a natural born citizen of the Philippines, no less than thirty-five years 
of age, of good moral character and has attained proficiency, expertise and 
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recognized competence in one or more of the following: Banking, finance, 
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economics, law, agriculture, business management, public management, 
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public utility or government administration: 
PROVIDED, 
THAT ONE 


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MEMBER OF THE BOARD SHOULD BE EXPERIENCED IN URBAN 
DEVELOPMENT AND HOUSING MANAGEMENT.” 
SECTION 9. Rules and Regulations. - The Board of Directors of the 
Development Bank of the Philippines is hereby authorized to promulgate such 
rules and regulations as may be necessary to implement the provisions of this Act: 
Provided, That the issuance of the same shall be subject to the applicable 
provisions of the General Banking Law and within the corporate limitations given to 
it. 
SECTION I O .  Repealing Clause. - 
All laws, 
executive 
orders, 
resolutions, ordinances, and any rules and regulation which may be inconsistent 
with the provisions of this Act are hereby deemed repealed, amended or modified 
accord i n g I y . 
SECTION 11. Efiecfivify Clause. - This Act shall take upon its approval. 
Approved