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

EIGHTEENTH CONGRESS
Second Regular Session

House Bill No, 7865

Introduced by REP. JOEY SARTE SALCEDA

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

EXPLANATORY NOTE

‘As economic activity has retreated significantly under the mobility restrictions and general lack
of market confidence due to COVID-19, income security, and consequently, consistency of
rent payments has also declined.

The latest Labor Force Survey as of July 2020 shows that unemployment is currently at 10
percent. Although the economy is expected to recover in 2021, employment may not return to
their record lows in 2019 until industries have reconstructed at their pre-COVID-19 output
levels. As a result, we expect income security, and with it, the consistency of residential rent
payments, to lag behind economic recovery.

While current grace periods under the Bayanihan emergency measures allow for amortizations
to be distributed among succeeding months of rent, these grace periods may not be of much
help to tenants that have totally lost their sources of income.

‘At the same time, grace periods which disrupt the consistency of payments to lessors may also
harm property owners, typically the elderly or the retired who rely on rental income as their
main source of income. The lack of consistent rental income may hamper the property owner's
ability to maintain the quality of the property, to the detriment of both the tenant and the owner.

Clearly, more sustainable rent relief measures that are also fairer to both lessor and tenant are
necessary.

The Philippine Statistics Authority, in the 2015 Census of Population and Housing, estimates
that some 2.7 million households occupy rented housing. We estimate this number to have
increased to 3.1 million in 2020. Our analysis of the newly unemployed shows that up to 3%
of these households, or some 93,000 households, may be in danger of eviction duc to
nonpayment of rent dues even with the Bayanihan measures to provide rent relief.


For these households, measures that not only defer payment schedules, but actually get the rent
paid for a period that is long enough to regain meaningful employment are urgently needed.

In view of this urgent need, and given the heightened necessity of having a home during the
COVID-19 pandemic, this bill proposes the following:

1, Mandating the Social Security System (SSS), the Government Service Insurance
System (GSIS), and the Pag-IBIG Fund to offer rent refinancing loans to their members,
at favorable rates;

2. Mandating the Landbank of the Philippines and the Development Bank of the
Philippines to offer rent refinancing loans at rates not higher than their lowest-yielding
loans;

3. Allowing promissory notes to be accepted, under an arrangement where government
financial institutions finance the promissory note, and the rent obligation is converted
into a loan with a government financial institution, to ensure that the tenant is not
evicted during the period paid for with the loan;

4, Imposing an eviction moratorium for three (3) months upon the effectivity of the bill,
to provide the implementing agencies enough time to rollout the measures contained in
this bill; and

5. Setting up rental assistance centers by the Department of Human Settlements and Urban
Development (DHSUD) to help tenants and lessors renegotiate terms of lease, access
programs under this bill, and find other assistance programs available that would
prevent tenants from being evicted.

These measures would complement our rent payment deferment strategies, and are a more
financially sustainable approach that would restore stability and consistency in the rent
agreements for both tenants and lessors.

In view of the foregoing, the approval of this bill is urgently sought.

JOEY SARTE SALCEDA


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

EIGHTEENTH CONGRESS
Second Regular Session

House Bill No. 7665

Introduced by REP. JOEY SARTE SALCEDA

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 House of Representatives of the Philippines in Congress
assembled:

SECTION 1. Short Title. — This Act shall also be known as the “Rent Relief Act of
2020.”

SEC. 2. Rent refinancing loans by government financial institutions. — The Social
Security System (SSS), the Government Service Insurance System (GSIS), and the Pag-IBIG
Fund are hereby mandated to make available to eligible 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.

SSS, 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);

a) The interest rate for these loans shall not exceed the lowest interest imposed by the
LBP and DBP for active loan products with similar terms;

b) The loans shall be payable for at least five (5) years;


c) LBP and DBP may require a lease agreement, promissory notes, and similar
documents for the issuance of these loans.

Provided, that these loans shall 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
rent contracts towards more mutually beneficial terms for both parties and access the
refinancing and loan arrangements applicable under this Act. These assistance centers shall
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. — 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 any part or provision of this Act is held invalid or
unconstitutional, the remaining parts or provisions not affected shall remain in full force and
effect.

SEC. 10. Repealing Clause. — All other laws, decrees, executive orders and rules and
regulations contrary to or inconsistent with the provisions of this Act are hereby repealed or
amended accordingly.

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

Approved,