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

NINETEENTH CONGRESS:
First Regular Session

50

HOUSE BILL NO.

Introduced by Representative Ivan Howard Guintu

EXPLANATORY NOTE

Section 9, Article XIII of the 1987 Constitution provides that “the State shall, by
law, and for the common good, undertake, in cooperation with the private 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 resettlement areas, It shall also promote adequate
employment opportunities to such citizens. In the implementation of such program,
the State shall respect the rights of small property owners.”

According to the census by the Philippine Statistics Authority there is an
estimated 2.3 million homeless Filipinos since 2015. A study by the Philippine
Statistical Research Institute projected that the counts housing demand would
balloon to 22.6 million units by the end of 2040. The country’s population is growing,
annually and with its rise includes the housing backlog that needs to be addressed.

The proposed bill will increase and strengthen funding and support for housing
projects from the government's annual budget as part of the completion of the major
components of National Housing Development, Production, and Financing Program.

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

Represepédfive, Pinuno Party list


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

NINETEENTH CONGRESS
First Regular Session

1150

HOUSE BILL NO.

Introduced by Representative Ivan Howard Guintu

AN ACT
PROVIDING FOR A NATIONAL HOUSING DEVELOPMENT, PRODUCTION
AND FINANCING PROGRAM, AND REGULARIZIN' APPROPRIATION FOR
ITS IMPLEMENTATION

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

SECTION 1. Short Title. — This Act shall be known as the “National Housing
Development, Production and Financing (NHDPF) Act.”

SI

2. Declaration of Polic It is hereby declared a policy of the state to:

a. Undertake, in cooperation with the private sector, a continuing program of housing and
urban development which shail make available at affordable cost, decent housing and
specially to the underprivileged and homeless citizens:

basic services

b. Pursue the realization of a modem, humane, economically viable and, environmentally~
sustainable society where the urbanization process is manifest in towns and cities being
centers of productive economic activity and is led by market forces; where urban and
rural areas have affordable housing. sustainable physical and social infrastructure and
services facilitated under the democratic and decentralized system of governance: and
where urban and rural areas provide the opportunities for an improved quality of life
and eradication of poverty’

¢. Ensure that poor divellers shall be provided with appropriate and innovative housing
program and support mechanisms to discourage further growth of blighted communities
and


4. Encourage on-site development, whenever feasible, in the implementation of housing
programs and shall promote the creation of new settlements with basic facilities and
utilities and development of sustainable urban renewal programs.

Cognizant of the role of housing as stimulus of economic growth and development, it
is hereby declared a state policy to strengthen, promote and support the component activities
of housing production and finance by ensuring continuous’sustained funding support to scale-
up the implementation of the major components of the National Housing Development and
Production Program

SEC. 3. Statement of Objectives. — Towards this end, the State shall.

a, Increase housing production by forging partnership among housing stakeholders to
address the housing needs of the Filipino families by 2040

b. Generate and mobilize funds for housing purposes of Filipino families, giving priority
to the homeless and underprivileged.

c. Ensure the provision of support mechanisms’ subsidy program to improve access of

Filipino families to a variety of housing options,

d. Guarantee the development of a strong, sustainable, accessible, and affordable housing
finanee system

Encourage public and private sector participation in the implementation of the
government National Housing Development and Production Financing Program

SEC. 4, National Housing Development Production Program Implementation. -
Consistent with the aforementioned policy and objectives, the Department of Human
Settlements and Urban Development (DHSUD) and its attached Key Shelter Agencies, shall
intensify the implementation of the vital components of the National Housing Development
Production and Financing Program, The implementation of this program shall be carried out
by the following agencies:

National Housing Authority (NHA) the sole national government agency tasked to implement
and develop the following housing programs intended for the bottom 30% of the income
population:

1 Resettlement ~ ‘this program addresses the requirements of families affected by a)
government infrastructure projects. b) those living along danger areas and c) those
affected by Supreme Court Mandamus. It entails the provision of vertical (Irom 5 to
1S-storey residential building) andor horizontal housing units, community facilities,
socio-economic and other community support programs,


6.

The program also involves the implementation of local/regional resettlement
projects as joint National Government-Local Government undertakings to address the
resettlement requirements of Local Government Units (LGUs) outside Metro Manila
involving families in danger areas, those affected by infrastructure projects, indigenous
peoples, and former rebels.

The government infrastructure agencies shall submit an inventory of Informal
Settler Families to be affected by their projects and their location to the appropriate
housing agencies at least two years prior to its implementation and shall incorporate in
their respective project costs the amount needed for then relocation and resettlement of
affected families.

Government Employees Housing Program ~ this program is intended to provide decent
and affordable housing to low-salaried government employees

Settlements Upgrading ~ this program aims to address the security of tenure and
infrastructure requirements of informal settlements on government-owned lands
proclaimed of designated as socialized housing sites

Housing Program for Calamity Victims ~ this program is intended to respond to the
housing needs of low and marginal-income and/or informal shelter families for
transitional and/or permanent shelter affected by calamities such as typhoons.
landslides, earthquakes, and fires for relocation to safe areas

Land Banking ~ this refers to the acquisition of land, which includes idle government
lands, at values based on existing use in advance of actual need to promote planned
development and socialized housing programs with a view to distribute the land to
qualified socialized housing beneficiaries, It covers survey and titling of individual lots
for disposition to qualified occupants, infrastructure development, housing construction
and rehabilitation of existing project sites

Social Housing Finance Corporation (SHFC) ~ mandated to undertake social housing programs
that will cater to the formal and informal sectors in the low-income bracket and to take charge
of developing and administering social housing programs, particularly the Community
Mortgage Program and its different modalities

im, which

Community Mortgage Program (CMP) ~ this is a mortgage financing pro
assists legally organized associations of underprivileged and homeless citizens to
purchase and develop a tract of land under the concept of community ownership. The
primary objective of the program is to assist residents of blighted or depressed areas to
own the lots they occupy, or where they choose to relocate to, and eventually improve
their neighborhood and homes to the extent of their affordability. The different
modalities of the CMP are as follows


a. Sectoral CMP — a CMP modality that caters to the different sectoral groups
including but not limited to the basic sector groups needing resettlement
assistance. A sectoral group represents. a group or coalition of'persons who share
similar concerns and interests and intend to avail of resettlement 45 assistance
from SIIFC, inclading Indigenous Peoples (IPs), Indigenous Cultural
Communities (ICCs) and other ethnic minority groups.

b. Housing for Peace Process and Nation Building CMP ~ a CMP modality which
would lead to the achievement of national peace and development through the
provision of housing to former rebels ‘rebel returnees (FR/RR). This also
includes rebuilding damaged or destroyed homes in post conflict-areas of
internally displaced persons (IDPS).

Post-Disaster Rehabilitation and Reconstruction CMP ~ a CMP modality which
provides assistance to community housing projects in times of disaster. ‘This,
program allows the communities to immediately embark on house construction
and site development which adhere to the minimum standards and specifications
of the design and structural components of disaster-resilient housing projects.

as well as materials.

d._ Industrial Workers CMP a CMP modality intended primarily for low-income
employees of companies engaged in agro-industrial, industrial processing 16
zone. tourist, recreational, commercial, and other enterprises.

ce. Site Upgrading Development CMP — a CMP modality intended to provide site
development and housing building construction loans for projects whose lands
are donated by private or public entities applicable to both on site or resettlement
projects.

sustaining

f Mixed -Use CMP — a CMP modality aimed at developing a sel
community by having a balanced mix of residential and commercial spaces.
well- developed infrastructure and recreational amenities along with green and
open spaces and wellness areas. Under this modality, 9% of the project area
shall be allotted for green spaces and 1% of project area for friendly facilities of
Persons with Disabilities (PWD).

National Home Mortgage Finance Corporation (NIIMFC) A government. corporation
mandated to increase the availability of affordable housing loans to finance the Filipino
homebuyers on their acquisition of housing units through the development and operation of a

secondary market for home mortgages

7. Securitization - this refers to the development of the secondary market for home
mortgages and other housing related receivables, conveyances and financial
instruments and the development promotion of and investments in new housing- related


financial instruments and investment vehicles and the capital markets thereof
Furthermore, this would also increase and sustain funds available for housing and home
development.

Department of Human Settlements and Urban Development (DHSUD) ~ the primary national
government entity responsible for the management of housing, human settlements and urban
development including the implementation of the following programs:

8. Public Housing ~ this is a housing program that is owned and/or managed by the
government for the purpose of providing security of tenure to the underserved families
including but not limited to the development of proclaimed socialized housing sites
intended to promote the establishment of new towns, new settlements, and urban
renewal. The term “underserved families” refers to those who are disadvantaged in
terms of access to basic services because of inability 10 pay or other disparities by
reason of economic or social status, ethnicity. geographical isolation, and other
circumstances.

9. Subsidy ~ this is a financing assistance scheme intended to enhance the affordability of
well targeted and most financially incapable segments of the society. It is a grant
extended to qualified low-income beneficiaries under the National Housing
Development and Production Financing Program under any of the following alternative
subsidy schemes

a. Extension of Interim Shelter Fund to each of the family-beneficiaries which they
can use to find sate resideney and livelihood to support their families, pending
the completion of their housing units in the relocation sites.

b. Payment for upfront cost equivalent to 5% of the project cost (e.g., mortgage
insurance, titling, etc.): and

©. Monthly payment subsidy for the first five years of the loan period in
accordance with Section 3 (a) of RA 6846 or the Social Housing Support Fund
Act. The department shall be authorized to establish the qualification and
income requirements of borrowers who will qualify for the amortization support
subsidy.

The DHSUD, in coordination with the LGUs and other national government
agencies, shall be authorized to formulate the criteria and guidelines to select the
beneficiaries that may qualify for the subsidy program.

10. Public Rental Housing ~ this program involves the extension of fiscal assistance of up
to a maximum of 50% of the total construction cost for the National Government
Agencies (NGAs) and Local Government Units (LGUs) that shall construct and operate


public rental accommodation to eligible low-income 36 families and housing safety net
for the vulnerable sectors (e.g,, senior citizens, person with disabilities, etc.)

11. Survey of proclaimed lands for socialized housing and inventory of government idle
lands ~ this involves the survey of all occupied government lands proclaimed by the
President as suitable for socialized housing and conduct of inventory of government
lands which have been idle for more than ten (10) years except lands owned by the
GOCCs and government financial institutions engaged in shelter financing as part of
its fiduciary obligations to its members and/or taken possession of in their ordinary
conduct of business,

12. Such other program components as may be determined by the DHSUD.

SEC. 5. Appropriations by the National Government. ~The amount of One Hundred
Thirty-Five Billion, One Hundred Fourteen Million Pesos (P135,114,000,000.00) or such
amount necessary to carry out the provision of this Act is hereby authorized to be appropriated
annually through the General Appropriations Act over a period of twenty (20) consecutive
years commencing from the year immediately succeeding the effectivity of this Act or until
such time that the total fund requirements provided for in this Act shall have been fully
released.

A total amount of Two Trillion, Six Hundred Sixty-Seven Billion, Two Hundred
Ninety- Three Million Pesos (P2.667,293,000,000.00) covering the continuing requirement of
this Act shall be appropriated to the DHSUD and Key Shelter Agencies for the implementation
of the following component programs of the NHDPF Program

1. One Trillion, Seven Hundred ‘Twenty-two Billion, Four Hundred Forty-six Million
Pesos (P1.722.446,000,000.00) for the implementation of the following programs
of NHA.

(a) Fight Hundred Billion and Six Hundred Ninety Million Pesos
(P800,699,000,000.00) to finance the Resettlement Program under Section 4(1)
of this Act:

(b) Five Hundred Forty-three Billion and Four Hundred Nineteen Million Pesos
(P543.419,000,000.00) as subsidy for Government Employees Housing under
Section 4(2) of this Act:

(c) One Hundred Sixty-four Billion and ‘Two Hundred Sixty-five Million Pesos
(P164,265,000,000.00) for the Settlements Upgrading under Section 4(3) of this
Act:

(d) One Hundred One Billion and Seven Million Pesos (101,007,000,000.00) for
the Housing Program for Calamity Victims Section 4(4) of this Act; and


ie) Sixty-three Billion and Fifty-six Million Pesos (P63.056,000.000.00) for the
Land Banking under Section 4(5) of this Act.

Four Hundred Fifty-three Billion, Two Hundred = Million — Pesos.
(P453,200,000,000.00) for the implementation of the Community Mortgage
Program under Section 4(6) of this Act

Fifty Billion (50.000,000.000.00) for the Capitalization of NHMFC under Section
4(8) of this Act:

4 Four Hundred Seventy-six Billion, Six Hundred Forty-seven Million Pesos
(P476,647,000,000.00) for the implementation of the following programs of the
DHSUD

(a) Three Hundred Sixty-five Billion, Nine Hundred Seventy-nine Million Pesos
(P365.979,000.000.00) to finance the Public Housing under Section 4(8);

(b) Lighty-nine Billion, One Hundred Thirty-one — Million Pesos
(P89,131,000,000,00) as subsidy under Section 9, broken down as follows:

i Highteen Billion, Five Hundred ‘Thirty-one Million Pesos
(PT8.531,000.000.00) as interim: shelter finance ance Tor the
informal settler-families who will be relocated under Section (9a)

it Sixty-three Billion. Seven Hundred Ninety-six Million Pesos
(P63.796,000.000,00) as upfront subsidy under Section 4(9b)

iii. Six Billion, Eight Hundred Four Million Pesos (P6,844.000,000.00) as

amortization support under Section 4(9¢)

(c) Twenty Billion, Four Hundred Fifty-six Million Pesos (P20,456,000.000.00) 10
finance public rental housing under Section 4(10); and

(d) One billion, Eighty-one million (P1.180,000.000,00) to finance survey of
proclaimed lands and conduct of inventory of government idle lands suitable
for socialized housing under Section 411)

SEC. 6. LGU Sources of Funds. - Section 43 of RA 7279 on Socialized Housing Tax.
is hereby amended, to read as follows:

“Consistent with the constitutional principle that the ownership and enjoyment of
property bear a social function and to raise funds for the Program. all local government units
are hereby authorized to impose an additional one-half percent (0.5%) tax on the assessed value


of all lands in urban areas. The proceeds from the imposition of Socialized Housing Tax shall
accrue to the special funds of the LGUs, which shall be used for the development of socialized
housing projects and construction and estate management of public rental housing of the
LGUs.”

SEC. 7. Implementation of the Securitization, Capital, and Secondary Mortgage

Operations Program. ~ The NHDP Securitization for the development of the secondary market
for home mortgages of and other housing related receivables, conveyances and financial
instruments and the development’ promotion of and investments in new housing related
financial instruments and investment vehicles and the capital markets thereof, to increase and
sustain funds available for housing and home development shall be implemented as follows:

The NHMFC shall be the sole implementing agency for the NHDP securitization: and

‘The NHMFC in coordination with the DHSUD, DOF and BSP and other concerned
agencies and private sector organizations, shall formulate a program, the proceeds of
which shall accrue to the Centralized Housing Fund.

The mortgages to be generated as a result of the implementation of the component
programs of the NHDP Program shall be sold and transferred to NHMFC, which shall
also serve as asset pool for securitization

‘The NHMFC as the sole agency for the implementation of the NHDPA Securitization
shall manage the whole securitization process which includes the following activities
determining the eligibility criteria for the asset pool: defining the preliminary structure
of the notes, bonds and or instruments to be issued, third parties to be hired: and
education/briefing of target investors for all the issues.

The NHMFC and NHDPFA-issued bonds. notes and securities shall be exempt from
the registration requirements under the Securities Regulation Law in order to accelerate
the issuance of its housing related securities/financial instruments and, thus, more
reasonably provide the necessary fund for housing developments,

‘Transactions by banks involving the purchase and sale of housing bonds, debentures
and such other similar instruments shall be exempt from the twenty percent (20%) final
tax on income, documentary stamps tax, gross receipts tax and value added tax

The investors’ yield or income from any socialized housing or economic housing:
related bond or asset-backed securities (ABS) issued by NHMFC directly or through a
special purpose entity under the Securitization Act shall be exempt from income tax.
Such issuances shall enjoy all the tax exemptions granted under Republic Act No. 9627
or the Securitization Act of 2004 pursuant to the State's policy of promoting the
securitization of mortgage and housing-related receivables of government housing



agencies, to generate investment and accelerate the growth of the housing finance
sector, especially for socialized and economic housing,

8. Bonds purchased by private real estate developers shall be considered as an alternative
compliance to the balanced housing requirements under section 18 of RA 7279 as
amended by RA 10884, subject to the rules promulgated by the Department of Human
Settlements and Urban Development.

9. ‘The Philippine Guaranty Corporation created pursuant to Executive Order No. 58 (S
2018) shall guaranty payment of the balance outstanding and due on the guaranteed
principal obligation, plus interest and yields thereon up to eleven percent (11 %) per
annum for socialized housing packages, ten percent (10%) per annum for low-cost
housing packages, nine and a half percent (9.5"») per annum for medium-cost housing
packages and eight and one half percent (8.5%) per annum for open housing packages.

SEC. 8. Capitalization of National Home Mortgage Finance Corporation (NHMFC).
~ The authorized capital stock of the NHMFC is hereby increased from P5,500.000,000.00
pesos to PS0,000,000,000,00 pesos to expand its leveraging capacity based on the volume of
mortgage loans being serviced to improve its profitability by reducing the average cost of its
fund made available for home lending programs

The capital of the National Home Mortgage Finance Corporation (NIIMEC) shall be
Fifty billion pesos (P50,000,000,000.00). to be fully subscribed by the Government of the
Republic of the Philippines, hereafter referred to as the Government: Provided, That the
P25,000,000.000.00 of the capitalization shall be funded from the General Appropriations Act
and the remaining P25,000,000,000.00 shall be funded from the declared dividends of the
NHMEC in favor of the National Government. For this purpose. any and all declared dividends
of the NHMEC in favor of the National Government shall be deposited in a special account in
the General Fund, and earmarked for the payment of NIIMFC's inerease in capitalization. Such
payment shall be released and disbursed immediately and shall continue until the increase in
capitalization has been fully paid

SEC. 9. Tax Exemptions, - The NIIMFC shail be absolutely exempt from all national
provineial, municipal and city taxes on income derived trom its governmental functions,
specifically income from its activities or transactions in the exercise of its mandates,

SEC. 10, Multi-Year Obligational Authority. - Vhe Secretary of the DHSUD and
Heads of its attached housing agencies, pursuant to the National Housing Development,
Production and Financing Program, projects and appropriations approved by Congress, shall.
subject to the provisions of existing laws and regulations including those of the Commission
on Audit and other such terms and conditions most favorable to the government, be given.
multi-year obligational authority for housing program or project which will take more than one
year to complete that requires multi-year appropriations,



SEC. 11. Private Sector Participation, — To fast track the approval and implementation
rojects and reduce the cost of socialized and low-cost housing units. the Bureau of
Internal Revenue, the Department of Agriculture. the National Irrigation Authority, the
Philippine Coconut Authority, the Sugar Regulatory Administration, the Department of
Agrarian Reform, the Department of Environment and Natural Resources, the Mines and
Geosciences Bureau, the Laguna |_ake Development Authority the Department of the Interior
and Local Government, the Local Government Units, the Land Registration Authority and the
Department of Human Settlements and Urban Development shall facilitate the release of the
required housing-related permits. licenses. certifications and tay exemptions rulings. in
accordance with Republic Act 11032 or an Act Promoting Ease of Doing Business and
Efficient Delivery of Government Services Amending tor the Purpose Republic Act 9485
Otherwise Known as the Anti-Red Tape Act of 2007 and for Other Purposes and l'xecutive
Order No. 45 (S. 2001).

of housing

ncies concerned {ail or refuse to dispose of
32. the applicable administrative

the application within the periods prescribed under RA 110.
and criminal liability as stated in Section 22 of RA 11032 shall be imposed.

In case the responsible officers of the

All the incentives enumerated under Section 20 of Republic Act 10884 or an Act
Strengthening the Balanced Housing Development Program, Amending for the Purpose

Republic Act No. 7279, as Amended, Otherwise known as the Urban Development and

Housing Act of 1992 shall be extended to the private sector engaged in socialized and low-cost

housing development including the construction and estate management of public rental

housing.

The participation of owners and:or developers in any of the component programs of the
DPEA shall be treated as one of the manners of compliance to the balanced housi
requirements subject to the conditions set forth under RA 10884

SEC. 12. Collection Efficiency. in order to improve collection efficiency. the NHI.
SHC and NHMEC shall have authority to foreclose mortgages, and/or eviet beneficiaries in
accordance with existing laws.

ate rules

SEC. 13. Implementing Rules and Regulations. ‘The DHSUD shall promul
lations necessary for the implementation of this Act

C. 14. Separability Clause. — \f, 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. 15. Repealing 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. 16, Effectivity. ~ This Act shall take effect fifteen (15) days after its publication
in the Official Gazette or ina newspaper of general circulation

Approved,