Republic of the Philippines

HOUSE OF REPRESENTATIVES
Quezon City

TWENTIETH CONGRESS
First Regular Session

HOUSE BILL NO. _770_

Introduced by Representative Ma. Victoria Co-Pilar

EXPLANATORY NOTE

Access to safe, affordable, and secure housing remains one of the most pressing
challenges for millions of Filipino families, especially the urban poor and those living in
disaster-prone and informal settlements. For many, homeownership remains out of reach
due to rising land and construction costs, limited income, and lack of access to affordable
financing. As a result, rental housing has become the only viable option for shelter, yet
even this is increasingly unaffordable for low-income households.

The 1987 Constitution, under Section 9, Article XIII, mandates the State to
undertake a continuing program of urban land reform and housing that will make decent
housing and basic services available at an affordable cost to underprivileged and
homeless citizens. It further directs the State to promote adequate employment
opportunities and to ensure that no resettlement takes place without proper consultation
with the affected communities.

Inline with this constitutional directive, this bill secks to establish a Rental Housing
Subsidy Program to assist low-income families in accessing decent and affordable rental
accommodations. By providing financial assistance to qualified beneficiaries, the program
offers an immediate, flexible, and dignified housing solution that respects the right of
families to choose where they live while maintaining access to jobs, education, healthcare,
and other essential services.

The rental subsidy will be especially beneficial in situations where relocation or in-
city resettlement is not yet feasible due to land availability or project timelines. It will also
serve as a vital safety net for vulnerable populations, such as those displaced by natural
disasters, evictions, or urban redevelopment projects.

More importantly, this program institutionalizes the role of government in
supporting rental housing as a legitimate and sustainable component of national housing
policy. It also complements other strategies such as socialized housing development,
community mortgage programs, and public-private partnerships for affordable housing.


Through the Rental Housing Subsidy Program, the government can promote
inclusive urban development, prevent the proliferation of informal settlements, and
ensure that the right to adequate housing becomes a reality for all Filipinos.

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

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Republic of the Philippines

HOUSE OF REPRESENTATIVES
Quezon City

TWENTIETH CONGRESS
First Regular Session

HOUSE BILL NO. _770.

Introduced by Representative Ma. Victoria Co-Pilar

AN ACT

ESTABLISHING A RENTAL HOUSING SUBSIDY PROGRAM FOR INFORMAL

SETTLER FAMILIES AND APPROPRIATING FUNDS THEREFOR

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

assembled:

SECTION 1. Short Title. - This Act shall be known as the “Rental Housing Subsidy

Program Act.”

SEC. 2. Declaration of Policy. - It is hereby declared the policy of the State to:

(a) Promote a just, equitable, and inclusive urban development through programs
providing adequate social services, broader housing options, livelihood and
employment, and an improved quality of life for the Filipino people, especially
the underprivileged;

(b) Provide an innovative housing program that makes available affordable, livable,
and decent housing, as well as access to basic social services, especially for the
underprivileged.

(©) Protect the urban poor from the impact of immediate dislocation due to
eviction and demolition arising from government projects; and

(d) Provide interim housing for dislocated families due to natural and man-made
disasters.

SEC. 3. Definition of Terms. - As used in this Act:

(a) Dislocation refers to the state of being displaced from one place to another due
to causes such as eviction and demolition;

(b) Informal settler families refer to households living on a lot, whether private or
public, without the consent of the property owner; or those without legal claim
over the property they are occupying; or those living in danger areas such as
esteros, railroad tracks, garbage dumps, riverbanks, shorelines, and
waterways, as defined in Section 3(e) of Republic Act No. 11201, otherwise


known as the “Department of Human Settlements and Urban Development
Act”; and

(©) Rental housing subsidy refers to the financial assistance provided by the
government to pay for the temporary use or occupancy of a residential unit in
the public and private rental housing market.

SEC. 4, Rental Housing Subsidy Program. - There is hereby established the Rental
Housing Subsidy Program, hereinafter referred to as the “Program”, to provide social
protection and support to informal settler families (ISFs) in accessing the formal housing
market under the Department of Human Settlements and Urban Development (DHSUD).
It shall be made an option to address the temporary relocation of displaced families due
to natural and man-made disasters.

Eligible ISFs shall receive a flat rental subsidy rate of Three thousand five hundred
pesos (PhP3,500.00) for those living in Metro Manila and a rental subsidy rate to be
determined by the DHSUD and the National Economic and Development Authority
(NEDA) for those living in all other regions, taking into consideration the prevailing
minimum wage and rental rates per region, but not to exceed Three thousand five
hundred pesos (PhP3,500.00): Provided, That the rental subsidy shall not exceed the actual
rent: Provided, further, That at any time, but not more often than once every two (2) years,
such subsidy may be reviewed or revised by the DHSUD and NEDA to conform with the
prevailing economic conditions.

Rental subsidy shall be granted to eligible beneficiaries until the date of completion of the
permanent housing project intended for them or upon their actual transfer to the
permanent housing project, whichever comes first: Provided, That in case of a delay in the
completion of the permanent housing project, the rental subsidy shall be extended:
Provided, further, That the agency implementing the permanent housing project shall
bear the cost of the extended rental subsidy.

SEC. 5. Eligibility. - To be eligible for rental subsidy under this Act, a beneficiary
must:

(a) be an ISF as defined under Section 3(b) hereof; and

(b) vacate the informal settlement area presently being occupied and transfer toa safer
and government-authorized area.

SEC. 6. Conditions for Continued Entitlement or Eligibility. - All eligible rental
subsidy beneficiaries shall comply with the following conditions to continuously avail of the
benefits under this Act:

(a) The beneficiaries shall not move or relocate back to the area in which they were
originally living in unless such move or relocation has been permitted by the proper
government authorities, taking into consideration the purpose of the Program; and

(b) The beneficiaries shall pay to the lessor that portion of the rental fee not covered


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by the subsidy.

Rental subsidy beneficiaries who maintain good payment standings shall be
prioritized as beneficiaries in government housing programs.

SEC. 7. Form of Payment. - The rental subsidy shall be distributed by the DHSUD
in such form it may determine to be most beneficial and appropriate for the beneficiaries.

SEC. 8 Roles of Government Agencies. - The various national government agencies
and instrumentalities involved in the Program shall perform specific responsibilities.

(a) The DHSUD shall:

(1) Coordinate with housing agencies to formulate Program targets and
integrate these to the national housing policy;

(2) Promulgate appropriate housing policies among the attached
corporations of DHSUD in line with the implementation of this Program;

(@) Enlist beneficiaries and their lessors for the Program;

(4) Set up monitoring and evaluation system, tools, exit strategy and
methodologies on compliance with conditions, implementation, output,
and impact assessments together with its attached agencies, the
Department of Social Welfare and Development (DSWD), the
Presidential Commission for the Urban Poor (PCUP), and the local
government units; and

(©) Recommend to Congress measures for the proper and responsive
implementation of this Act.

(b) The National Housing Authority (NHA) shall:

(1) Certify to the eligibility of the applicants of the Program;

(2) Coordinate with government agencies, including the Department of
Public Works and Highways and the Department of Transportation, on
the identification of areas suitable for housing projects and the persons
who need immediate resettlement;

(@) Update the masterlist of beneficiaries to be resettled as part of the
National Resettlement Program which shall include their socio-
economic profiles; and

(4) Design and conduct appropriate monitoring and evaluation of the
implementation of this Program which shall include a grievance and
redress system.

() The Home Development Mutual Fund shall enroll in its system at least one
household member of the applicant-beneficiaries of the Program to facilitate
their entry into the formal housing market.

(d) The DSWD shall design the social preparation activities and conduct workshops
and training programs to ensure that beneficiaries are aware of the benefits under
the Program, including the parameters and conditions for eligibility.

(e) The PCUP shall:


(1) Assist the DSWD in the design of social preparation activities, workshops,
and training programs for beneficiaries; and
(2) Conduct social preparation activities with the local government units.
(£) The Technical Education and Skills Development Authority shall provide skills
training to at least one household member of the beneficiaries.
(g) The local government units shall:
(1) Maintain a publicly accessible register of lessors in their respective areas of
jurisdiction;
(2) Assist the NHA in conducting census and tagging of ISFs in need of
immediate resettlement;
(3) Assist the DSWD and PCUP in conducting social preparation activities;
(4) Contain the vacated areas of ISFs to help achieve the objectives of this
Program;
(5) Assist the DSWD in monitoring and evaluating the implementation of this
Program; and
(6) Conduct with the DSWD field valuation of beneficiaries and their respective
lessors in the rental housing units.

SEC. 9. Appropriations. - The amount necessary for the implementation of this Act
shall be included in the annual General Appropriations Act.

SEC. 10. Implementing Rules and Regulations. - The DHSUD shall, in coordination
with relevant government agencies, issue rules, regulations, and guidelines necessary to
carry out the intent and purposes of this Act within six (6) months from the date of
effectivity.

SEC. 11. Mandatory Review on the Implementation of this Act. - The DHSUD
shall submit to both Houses of Congress a report on the implementation of this Program
at the end of the second year from the date of effectivity of this Act and every two (2) years
thereafter.

SEC. 12, Separability Clause. - If any portion or provision of this Act is held
unconstitutional or invalid, the remaining provisions not affected thereby shall continue
to be in full force and effect.

SEC. 13. Repealing Clause. - All laws, decrees, executive orders, proclamations,
rules and regulations, and other issuances, or parts thereof which are inconsistent with
the provisions of this Act are hereby repealed, amended or modified accordingly.

SEC. 14. Effectivity. - This Act shall take effect fifteen (15) days after its publication
in the Official Gazette or in a newspaper of general circulation.

Approved,