Republic of the Philippines
House of Representatives
Quezon City

TWENTIETH CONGRESS

First Regular Session
House Bill No._1089

Introduced by Representative Albert S. Garcia

EXPLANATORY NOTE

This bill aims to institutionalize the Pambansang Pabahay Para sa Pilipino program
(4PH). The flagship housing program of the Marcos administration under the Department of
Human Settlements and Urban Development (DHSUD), 4PH aims to provide 6 milion housing
Units to qualified informal settler families within a 6-year time span (with the goal of 1 million
units per year). Given the country’s ongoing challenges in housing, the sustained
implementation of the 4PH will be an important step towards ensuring that informal settler
families are able to avail of safe and more permanent homes. In view of the foregoing, approval
of this bill is earnestly sought from my colleagues.

—

(LBEBPS. GARCIA
econd District, Bataan


Republic of the Philippines
House of Representatives
Quezon City
‘TWENTIETH CONGRESS
First Regular Session

House Bill No. 1 035

Introduced by Representative Albert S. Garcia

AN ACT
INSTITUTIONALIZING THE PAMBANSANG PABAHAY PARA SA PILIPINO
PROGRAM

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

SECTION 1. Title. - This Act shall be known as the "Pambansang Pabahay para
sa Pilipino Program Act of 2025.”

SEC. 2. Declaration of Policy. - Its hereby declared a policy of the state to pursue
continuing program of housing and urban development which shall make available at
affordable cost, decent housing and basic services especially the underprivileged and
homeless citizens by establishing a housing interest subsidy program with particular
focus on assisting informal settler families (ISFs) acquire their own decent housing

‘SEC. 3. The Pambansang Pabahay para sa Pilipino Program — The Department
of Human Settlements and Urban Development (DHSUD) shall implement the
Pambansang Pabahay para sa Pilipino Program, hereinafter referred as the “Program”,
which shall have the following objectives:

(a) Develop one million housing units every year;

(b) Prioritize the lowest 30% income decile of the population and low wage earners

as primary beneficiaries of the Program;


(c) Pursue innovative strategies to make housing finance accessible and housing
units affordable to the target beneficiaries, through but not limited to the
following:

(1) Allocate government funds for the payment of housing interest support to
lower the monthly interest rate payment of qualified program
beneficiaries;

(2) Utilize vacant, idle, blighted and/or under-utilized government and private-
‘owned lands for housing and mixed-use development;

(3) Tap government financing institutions (GF ls) and private banks to provide
development loans & end-user financing; and

(4) Promote varied forms of modalities in implementing housing and mixed-
use development.

(d) Capacitate and support the local government units (LGUs) as one of the main
project proponents in implementing housing projects; and

(e) Encourage and incentivize the private sector to participate in the program
implementation.

‘SEC. 4. Program components. —

(a) Site identification. - As the main project proponents, the LGUs shall, in
coordination with the DHSUD, be responsible for project site identification and
the development of their respective residential projects. LGUs may engage
and/or enter into a joint venture with government entities or private developers
or builders, to undertake and construct housing projects using DHSUD-guided
housing parameters.

The following lands may be used for the housing projects:

(1) LGU-owned property. The property identified for the project should have a
“clean” or a “near-clean" title. For this purpose, a "clean title" shall be defined
as one that is registered in the name of the LGU and is entirely free of any
lien or encumbrance. On the other hand, a "near-clean title" shall be defined
as one that is affected by a lien or encumbrance including any adverse claim
or interest or any issue, complication or obstacle that can be resolved within
the timeframe needed for its utilization and the completion of the project.

(2) NGA-owned property. LGUs who intend to use the properties of National
Goverment Agencies (NGAs) for their housing projects shall be mainly


1 responsible for securing the issuance of authority to use such land and/or
2 the disposal/transfer thereof to them from the NGAs concemed.

3 (3) Privately-owned property. Private landowners of blighted areas or land
4 occupied by ISFs are encouraged to participate in the 4PH Program by (a)
5 donating their land, or (b) selling their properties at a reduced/discounted
6 price. Subject to the cap on the proposed selling price of the planned housing
7 units, the LGUs may consider purchasing such land or entering into a joint
8 venture agreement with the owner, subject to compliance with appropriate
9 government laws and regulations.

0 (b) Housing design. - LGUs shall be responsible for preparing the parameters of
ul their proposed housing projects, in accordance with existing government-

12 prescribed laws and standards, and the following DHSUD design and proposed
B price ceiling parameters for projects to be accredited under the Program.

14 (©) Housing construction. - LGUs shalll procure or select qualified developers and/or
15 contractors to construct the proposed housing projects in accordance with
16 applicable government rules and regulations. Notwithstanding the entry of new
7 developers and contractors, the LGUs are encouraged to invite housing
18 developers who are known to have good standing and have already undertaken
19 projects within their areas of jurisdiction and need to develop corresponding
20 socialized housing projects in compliance with the balanced housing
21 development program requirement.

2 (d) Financing for the housing project. - The Pag-IBIG Fund (HDMF), as well as other
2B Fs and private banks, shall make their funds available for the LGUs’ housing
24 projects through their respective developmental loan programs. They shall also
25 participate by providing end-user financing to homebuyers;

26 (e) Beneficiaries. - LGUs shall set the eligibility criteria for, and identify, the project
27 beneficiaries. In formulating such criteria, they shall coordinate with GFls and
28 private banks that will provide end-user financing to ensure alignment of all their
29 selection criteria particularly as regards the credit- worthiness and amortization
30 capacity of potential buyer-beneficiaries.

31 Beneficiaries must be capable of and committed to paying the monthly housing
32 loan amortization over the 30-year loan term, to the GFis or private banks. The
33 above notwithstanding, LGUs and their development partners are not prohibited
34 from developing housing projects that incorporate or provide cross subsidies


between different income classes so as to benefit more ISFs and lower- bracket
wage earners.

(f) Subsidy on amortization and interest. - The DHSUD shall, directly or through its
attached corporations, provide amortization support payable to the end-user
finance providers for the account of the buyer-beneficiaries’ units, using funds
that will be made available through the General Appropriations Act (GAA), and/or
other identified funding sources. LGUs are also encouraged to provide monthly
amortization support to buyer- beneficiaries of the units, ifneeded to enable them
to meet their monthly amortization obligations.

SEC. 5. Roles and Responsibilities. - The implementing agencies shall, at the
minimum, undertake the following roles, functions, and responsibilities:
(a) Department of Human Settlements and Urban Development (DHSUD)

(1) Act as the overall initiator, coordinator, and facilitator, of the Program;

(2) Facilitate the provision of funds through the GAA, Key Shelter Agencies (KSAs),
Fis and private banks, for use as: (a) development loans, (b) interest support
for the program's project beneficiaries, (c) end-user financing, (4) guarantee
financing, and (e) purchase of loan accounts;

(3) Oversee and monitor the implementation of the Program, including the project
implementation and performance of all participants;

(4) Provide parameters/specifications, extend support and technical assistance to
LGUs, developers, and other program partners including facilitating the
issuance of Development Permits and Licenses to Sell within its areas of
responsibilities; and

(6) Perform such other roles, functions and acts which it may deem proper and
necessary for the effective and full implementation of the Program;

(b) Local Government Units (LGUs)

(1) Act as the main proponent and major player in the planning, implementation

and management of their respective housing projects;

(2) Have the primary responsibilty of identifying lands for potential project locations

as well as making it available for their proposed housing projects;

(3) Determine and prepare the project concept to be used for their housing

projects;


(©)

4

Determine the implementation modalities for each of their envisioned housing
projects, including which project to undertake on its own, through joint venture,
or using other options;

Identify the project proponent that would undertake the development of each
project, whether solely or in joint venture with third parties;

Identify, select and enter into agreements with qualified developers and/or
contractors to implement their proposed housing projects, in accordance with
applicable government laws, rules and regulations;

Provide support to their priority housing projects and beneficiaries, either
through monthly amortization support and/or other commitments or
forms/modes of assistance, such as land donation and site development, to

)

6)

7

make the units affordable to target buyer-beneficiaries;

(8) Issue the appropriate resolutions and/or ordinances needed for the proposed
projects, including the allocation of land, funds and other necessary support for
the successful implementation of the projects;

(9) Establish an office and provide qualified personnel to implement their housing
Program;

(10) Conduct social preparation activities for target beneficiaries in coordination with
the DHSUD and its pertinent KSAs;

(11)Facilitate the expeditious issuance of local permits and clearances for their
projects;

(12)Take charge, to the extent possible and applicable, of all documentation
necessary for the full implementation of their housing program;

(13) Undertake estate/property management responsibilities for their projects and
ensure the availability of funds for the purpose;

National Housing Authority and Social Housing Finance Corporation

(1) As landowners, enter into appropriate partnership agreements with the
concemed partner LGUs;

(2) Asa developer and/or project manager, implement the project/s in coordination
with LGUs and other entities in accordance with the roles and responsibilities
as may be agreed upon by the parties involved;

(3) Provide support to LGUs in social preparation, project development, and such
other assistance needed for the successful implementation of the LGUs’
housing program and projects under the Program;


(d) Home Development Mutual Fund (HDMF), participating Goverment Financial

Institutions (GFls) and Private Banks

(1) Establish special lending programs with simplified, streamlined and expedited

guidelines, requirements, and processes, and allocate exclusive funds for the
Program, such as those needed for developmental loans to developers, and
end-user financing to project buyer-beneficiaries to allow the latter to purchase
their housing units;

(e) National Home Mortgage Finance Corporation (NHMFC)

(1) Provide liquidity to GFls and private banks to ensure the sustainability of the
Program by purchasing eligible Real Estate Mortgage (REM) accounts from
them, securitizing such loan portfolios, and issuing asset-backed securities to
attract more funds for housing.

SEC. 6. Annual Report of the Program. - The DHSUD shall annually publish a
full report of the Program covering the implementation of the previous fiscal year. The
said report shall include financial disclosures, number of clients or beneficiaries served,
and recommendations to the President and to both chambers of Congress on how to
further enhance the program.

SEC. 7. Program Transparency. - The DSHUD shall regularly and timely post
and update on its website a report of financial disclosures and information about
beneficiaries based on geographical area, social, economic, and cultural
circumstances.

SEC. 8. Joint Congressional Oversight Committee. - Upon effectivity of this
Act, a Congressional Oversight Committee, hereafter referred to as the Pambansang
Pabahay Oversight Committee is hereby constituted. This Committee shall set the
overall framework to review the implementation of this Act. It shall likewise determine
inherent gaps in the law and recommend necessary remedial legislation or executive
measures.

SEC. 9. Appropriation. - The amount necessary to implement this Act shall be
included in the annual General Appropriations Act.

SEC 10. Separability Clause. - Any portion or provision of this Act that is
declared unconstitutional shall not have the effect of nullifying other portions or
provisions hereof as long as such remaining portions can still subsist and be given effect
in their entirety.


ween

SEC 11. Repealing Clause. - All laws, ordinances, rules, regulations, other
issuances or parts thereof, which are inconsistent with this Act, are hereby repealed or
modified accordingly.

SEC 12. Effectivity. - This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in a newspaper of general circulation.

Approved