HOUSE OF REPRESENTATIVES

Republic of the Philippine:
HOUSE OF REPRESENTAT|VES FRECES Vi D
Quezon City wal) 7 dul
TIME: Gn,
SEVENTEENTH CONGR BY:
First Regular Session REGISTRATION UNIT
on BILLS AND INDEX SERVICE
House Bill No, 1274

Introduced by HON. ROZZANO RUFINO B, BIAZO!

EXPLANATORY NOTE

This bill seeks to amend certain provisions of Executive Order No, 209, otherwise
known as the Family Code of the Philippines, as amended, specifically Articles 155 and 157
found on Title V, Chapter 2, entitled “The Family Home.”

Article 155 provides that the Family home shall be exempt from execution, forced
sale, ot attachment, except in four (4) instances. Amendments ate proposed to cover two (2)
of the four exemptions, namely: for the non-payment of taxes, and for debts incurred prior to
the constitution of the family home. First, i€ is proposed that the words REAL ESTATE be
added to qualify what type of tax is exempted. The purpose of these amendments is to avoid
any misinterpretation as to the true intent of the law, as it is a basic tenet that provisions
granting exemptions are strictly construed against the person invoking the exemption and
those which impose tax obligations are liberally construed in favor of the taxing authority.

Second, it is also proposed that the family home should remain exempt even for the
payment of debts incurred prior to the constitution of the family home, There is no
compelling reason to hold otherwise, as it cannot be said that such debts redounded to the
benefit of the beneficiaries of the family home.

Another amendment introduced is that, in the event that an execution, forced sale or
attachment on the home may be made, the family home would remain to be exempt if the
proceeds of such sale are still insufficient to cover the entire judgment credit. ‘The reason for
this amendment is to prevent a situation wherein a family not only loses the family home but
also is still in debt.

Finally, considering the present purchasing power of the peso, the value of the real
property, and the high cost of constructing adequate shelter, the bill also proposes to increase
the value attached to the family home to conform it with present day economic realities, if
only to give full meaning to the spirit of the law,

Approval of this bill is earnestly requested.
Hf i
ROZZANO'RUFINO'B.BIAZON
Representative
Lone District, Muntinlupa City



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS

First Regular Session

=
House Bill No. 1274
— eee

Introduced by HON. ROZZANO RUFINO B. BIAZON

AN ACT
AMENDING ARTICLES 155 AND 157 OF EXECUTIVE ORDER NO. 209 AS
AMENDED, OTHERWISE KNOWN AS THE FAMILY CODE OF THE
PHILIPPINES, SO AS TO STRENGTHEN THE PROVISIONS OF THE LAW
GOVERNING THE FAMILY HOME

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

Section 1. Article 155 of Executive Order No. 209, as amended, is hereby amended
to read as follows:

“The family home shall be exempt from execution, forced sale or

attachment except:

(1) For non-payment of REAL ESTATE taxes;

[@2) For non-payment of debts incurred prior to the constitution of the family

homes]

{(3)] 2) For debts secured by mortgages on the premises before or after such

constitution; and


{(4)] (3)For debts due to laborers, mechanics, architects, builders, material

men and others who have rendered service or furnished material for the

construction of the building,

“HOWEVER, IN NO INSTANCE SHALL THE FAMILY HOME

BE SUBJECT TO EXECUTION, FORCED SALE, OR ATTACHMENT,

IF THE VALUE OBTAINABLE AFTER SUCH SALE IS NOT

SUFFICIENT TO COVER THE ENTIRE JUDGMENT CREDIT:

PROVIDED, THAT THE COURT SHALL BEFORE ISSUING THE

ORDER, ENSURE THAT THE EXECUTION, FORCED SALE OR

ATTACHMENT OF THE FAMILY HOME IS DONE AS A LAST

RESORT, OR THAT THE DEBTOR HAS NO OTHER PROPERTIES

AVAILABLE TO SATISFY THE JUDGMENT CREDIT.”

Sec. 2. Article 157 of Executive Order No. 209, as amended, is hereby amended to
read as follows:

“The Actual value of the family home shall not exceed, at the time of its constitution,
the amount of [three hundred thousand] ONE MILLION pesos in urban areas, and [two]
FIVE hundred thousand pesos in rural areas, or such amounts as may hereafter be fixed by
law.

In any event, if the value of the currency changes after the adoption of this Code, the
value favorable for the constitution of a family home shall be the basis of evaluation,

For purposes of this Article, urban areas are deemed to include chartered cities and

municipalities whose annual income at least equals that legally required for chartered citi

All others are deemed to be rural areas.
Sec. 3. This Act shall be given retroactive effect insofar as it does not impair or

prejudice vested or acquired rights.


Sec. 4, All laws, presidential decrees, executive orders and issuances inconsistent with
this Act are hereby modified or repealed accordingly.

Sec. 5. This Act shall take effect fifteen (15) days after its publication in two (2)
newspapers of general circulation,

Approved,