Republic of the Philippines
HOUSE OF REPRESENTATIVES,
Quezon City

ETEENTH CONGRESS
First Regular Session

2879

HOUSE BILL NO.

Introduced by Representative Wilbert T. Lee

AN ACT ESTABLISHING A RENTAL SUBSIDY PROGRAM FOR INFORMAL
SETTLER FAMILIES, APPROPRIATING FUNDS THEREFOR, AND FOR
OTHER PURPOSES

EXPLANATORY NOTE

Article XIII, Section 9 of the 1987 Constitution provides that “[tJhe 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

Our country’s housing program has always struggled to keep up with the challenges of
building infrastructures and communities that would allow the beneficiaries to live full and
productive lives. Consequently, the economic challenges as a result COVID-19 pandemic has
put a spotlight on this predicament — bringing to light the fundamental role housing plays in
people’s lives, and the life and death implications when they cannot afford the rent.' The need
to uphold and protect their right to housing cannot be any more pronounced than today
Housing in these troubled times afier all, “has become the frontline defense against the
coronavirus.”?

This is especially challenging in cases where families had to be displaced urgently
without desirable or acceptable relocation sites for beneficiaries. In many instances, displaced
families refuse relocation sites because the sites are not yet ready due to lack of access to
sources of livelihood, reliable transportation, and even basic government services.

" Bailey. P. (27 July 2020). Pandemic Relief Must Include Comprehensive Housing Assistance for People
Experiencing the Most Severe Hardship, Retrieved last September 18. 2020. from

hutps:/vww.cbpp orp/researelvhousing/pandemic-relicF-must-include-comprchensive-housing-assistance-for-
people

= United Nations. (08 April 2020). CON D-19 Guidance Note, Retrieved last September 18, 2020 from
hups:/Avww obchr. ory/Documents/Issucs/Housing/SR_housing COVID-
19_guidance_rent_and_mortgage_payers pd



This bill seeks to establish a program which allows the government to enter into a rent
subsidy program for qualified families. This program will give the beneficiaries the option of
receiving rent subsidy for a limited period of time in lieu of relocation. This would allow the
families to stay in areas near to their source of livelihood at the time of displacement

This also creates a multi-agency effort that looks into various aspects relating to
housing and human settlements to ensure that the programs are effective and least disruptive
as possible to the beneficiaries.

In doing so, this representation believes that we are not only helping the families meet
their housing needs, but we are giving them the best opportunity to become contributing
members of the community themselves, This is an investment in the Filipino family

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

HO}. WILBERT T. LEE
Representative
GRI PARTYLIST


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

NINETEENTH CONGRESS

First Regular Session

“2979

HOUSE BILL NO.

Introduced by Representative Wilbert T. Lee

AN ACT ESTABLISHING A RENTAL SUBSIDY PROGRAM FOR INFORMAL
SETTLER FAMILIES, APPROPRIATING FUNDS THEREFOR, 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 be known as the “Rental Housing Subsidy
Act of 2022”.

SEC. 2. Declaration of Policy. — itis hereby declared the policy of the State to:

4) 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 disasters; and

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

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 Beneficiaries (ISBs) ~ refers to individuals or households
living in their own house or renting a dwelling unit
i. Without consent of the lot owner:
ii. In danger areas as defined under Republic Act No. 7279, otherwise
known as the “Urban Development and Housing Act of 1992”



iii, In government-owned lands to be used for government infrastructure
projects;
iv. In protected forest areas except for indigenous people;
v. _ Inareas of priority development as declared under Proclamation No.
1967, Series of 1980, if applicable; or
vi. _ In other government public lands or facilities not intended for human
habitation.
c) Lessee ~ refer to the person renting a residential unit
d) Owner/Lessor ~ refers to the owner, administrator, or agent of the owner of the
residential unit
e) Rent ~ refers to the amount paid for the use or occupancy of a r
whether payment is made on a monthly or other basi
f) Rental Housing Subsidy ~ refers to partial financial assistance provided by the
government to eligible program beneficiaries to rent accommodation in the
private rental market. The amount shall not exceed the rates as regulated under
Republic Act No. 9653, otherwise known as the "Rent Control Act of 2009".

dential unit

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 ISBs in accessing the formal housing market. It shall be made an
option to address the temporary relocation of displaced families due to natural and man-made
disasters

Eligible ISBs 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 jointly
determined by the Department of Human Settlements and Urban Development (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 than
once every two (2) years, such subsidy may be reviewed or revised jointly by the DHSUD and
NEDA to conform with 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 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.
household must:

Eligibility. To be an eligible beneficiary under this Act, an individual or

a) Live under any of the conditions under Sec. 3, paragraph b, of this Act:

b) Have a source of livelihood or have at least one (1) member of the household
gainfully employed. Provided, That the daily cumulative income of said family will
amount to the prevailing minimum wage in the region; and

©) Vacate the informal settlement area in which they are presently living and transfer
or relocate to a safer, decent, and formal settlement and sign a maximum five (5) ~
year contract with the government.

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


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a) The beneficiaries shall not move or relocate back to the area in which they were
originally living 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 by
the subsidy

©) Beneficiaries who maintain good payment standing 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
and instrumentalities involved in the Program shall perform specific responsibilities,

a) The DHSUD shall.

a) Coordinate with housing agencies to formulate Program targets and
integrate these to the national housing policy:

b) Promulgate appropriate housing policies among the attached corporations
of DHSUD and other concerned implementing agencies as necessary in line
with the implementation of this Program:

©) Maintain a national database of validated ISBs, their socio-economic
profile, and their respective lessors as well as the link to publicly accessible
registry of lessors, and the location and basic description of the rental
housing unit;

d) Enlist beneficiaries and their lessors for the Program,

©) Disburse the rental subsidy to the lessors of the ISBs through a dedicated
bank account in a government bank;

£) Formulate guidelines on the minimum design of a safe, decent, and adequate
rental housing unit that considers public health goals:

4) Set up a monitoring and evaluation system, tools, grievance and redress
system, 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 (PGUP), the Technical
Education and Skills Development Authority (TESDA), and the Local
Government Units (LGUs); and

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

b) The National Housing Authority (NHA) shall

a) Coordinate with infrastructure program implementing agencies, including
the Department of Public Works and Highways (DPWH) and the
Department of Transportation (DOT), regarding the identification of areas
suitable for housing projects and the persons who need immediate
resettlement,

b) Conduct census and tagging of affected ISBs for immediate resettlement;

c) Certify and submit to DHSUD the list of eligible ISBs living in
government-owned land to be used for government infrastructure project
and in areas for priority development as declared under Proclamation No.
1967, s. 1980, if applicable, in coordination with DOTr, DPWH, and LGUs;
and



d) Provide a national database of resettlement housing units ready for
occupancy by intended ISBs of the program

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4 ) The LGUs shall
5 a) Assist the NHA in conducting census and tagging of ISBs in need of
6 immediate resettlement;

7 b) Assist the DSWD and PGUP in conducting social preparation activities;

8 ©) Contain the vacated areas of ISBs to help achieve the objectives of this
9

Program,
10 d) Assist the DSWD in conducting field validation of beneficiaries and their
1 respective lessors for the rental housing units
12 e) Conduct an inventory of rental housing units that are compliant with the
3 minimum design and standard facilities set by the DHSUD in consultation
14 with other concerned agencies,
45 f) Assist in monitoring and evaluation of the Program, especially the
16 continued occupancy of rental housing units by ISBs,
ca g) Maintain a database of ISBs as defined in this Act and registered lessors in
18 their area of jurisdiction that can be linked to DHSUD's national database
19 and shared with other concerned government implementing agencies of the
20 Program: and
21 h) Maintain a publicly accessible registry of rental housing units with basic
22 description, which are compliant with minimum design and standard
23 facilities in their respective area of jurisdiction.
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25 d) The DSWD shall
26 a) Validate the list of eligible ISBs provided by DHSUD against the
27 “Listahanan” or the National Household Targeting System for Poverty
28 Reduction (NHTS-PR);
29 b) With the assistance of LGUs, conduct field validation of ISBs and their
30 respective lessors for the rental housing units,
31 ©) Submit the list of validated ISBs to DHSUD for funding:
32 d) Jointly undertake with the PGUP and the Department of the Interior and
33 Local Government (DILG) the design of the social preparation; and
34 ©) Jointly undertake with the PGUP and LGUs the conduct of the social
35 preparation
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37 e) The PGUP shall:
38 a) Jointly undertake, with the DSWD and the DILG, the design of the social
39 preparation; and
40 b) Jointly undertake, with the DSWD and LGUs, the conduct of social
a1 preparation
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43 £) The TESDA shall provide skills training to at least one (1) household member of
44 the beneficiaries. It shall ensure that the skills trainings provided to beneficiaries
45 are in line with the environment of the relocation site.
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47 g) The Home Development Mutual Fund (HDMF) shall enroll in its system at least
48 one (1) household member of the applicant-beneficiaries of the Program to
49 facilitate their entry into the formal housing market


Provided, that a national program steering committee, and regional, provincial, city,
and municipal technical working groups (TWGs) composed of the DHSUD, NHA, LGUs,
DSWD, TESDA, PGUP, and HDMF shall be constituted to define the line of coordination and
to ensure seamless program coordination

Provided, further, That DHSUD shall closely collaborate with the NHA, DSWD, DILG,
and Department of Budget and Management (DBM) in the development of a program design
and funding mechanism

SEC. 9. Additional Positions and Personnel for the DHSUD. For purposes of this Act,
the DHSUD shall, in accordance with pertinent civil service rules, create positions and enlist
additional personnel to ensure the proper and appropriate implementation of the Program under
this Act, subject to the evaluation and approval by the DBM.

SEC. 10, Appropriations. The amount necessary for the effective implementation of
this Act shall be charged against the current appropriations for DHSUD. Hereafter, such
amount as may be necessary for its continued implementation shall be included in the annual
General Appropriations Act: Provided, that funding support for agencies implementing the
Program shall be included in the necessary appropriations for this Act

SEC. U1. Implementing Rules and Regulations. The DHSUD, in coordination with
relevant government agencies, shall issue rules, regulations, and guidelines necessary to carry
out the intent and purposes of this Act within six (6) months from date of effectivity.

SEC. 12. Mandatory Review on the Implementation of this Act. The DHSUD shall
submit to the 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. 13. Separability Clause. If any provision of this Act, or parts thereof, is declared
unconstitutional, the same shall not affect the validity and effectivity of the other portions

SEC. 14. Repealing Clause. All laws, executive orders, presidential decrees,
implementing rules and regulations inconsistent with this Act are hereby repealed or modified
accordingly

SEC.
the Official Ga

. Effectivity. This Act shall take effect fifteen (15) days after its publication in
tte or in two (2) newspapers of general circulation

Approved,