Republic of the Philippines
HOUSE OF REPRESENTATIVE!
Quezon City, Metro Manila

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NINETEENTH CONGRESS Vie
First Regular Session

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HOUSE BILL NO. 31 94

Introduced by Representative Ivan Howard A. Guintu

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|ATORY NOT!

Nurses provide care for patients, communicate with doctors, administer
medicine, and check vital signs. They comprise the largest component of most
healthcare environments. They work not only hospitals and clinics, but also in offices,
schools, pharmacies, ambulances, home health care setting, and senior living facilities.
They also educate the public and promote health and wellness.

The global pandemic stressed the necessity of having an adequate number of
healthcare professionals in the population. We should retain our nurses and make
living in the country an attractive option by offering them affordable housing. A stable
housing program for government nurses provided by the State would ease the burden
on our nursing professionals and improve their living conditions. Adequate and decent
housing for nurses is fitting to honor their service of providing healthcare to
generations of citizens.

The proposed bill will institute a housing program for government nurses by
providing funds through loans at affordable interest rates and long-term repayment
period. It also seeks to involve the private sector in providing housing units exclusively
for nurses through the grant of fiscal incentives.

ught.

In view of the foregoing, the passage of this bill is earnes

ARD A. GUINTU
Epresentative, PINUNO Partylist


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

NINETEENTH CONGRESS
First Regular Session

3194

HOUSE BILL NO.

Introduced by Representative Ivan Howard A. Guintu

AN ACT
TO PROVIDE A HOUSING PROGRAM FOR NURSES

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

SECTION 1. Short Title. -— This Act shall be known as the “Nurses Housing Program.”

SEC. 2. Declaration of Policy. — It is hereby declared the policy of the State to uplift
the living conditions of nurses and promote a housing program to enable them to acquire their
own housing units. To this end, the State affirms its commitment to strengthen, promote, and
support the component activities of housing production and finance in order to enable nurses
to acquire decent housing and basic services at the lowest affordable price.

SEC. 3. Coverage. ~ The Program shall cover the nurses of the Department of Health
(DepEd) with a permanent status.

SEC. 4. Role of Government Housing and Financing Agencies. — Role of
Government Housing and Financing Agencies. To ensure the accomplishment of the objectives
under this program, the hereunder mentioned housing agencies shall perform the following in
addition to their respective existing powers and functions

(a) The National Housing Authority shall undertake special housing projects for nurses. In
addition, it may also provide technical and other forms of assistance to private

developers in the development of housing projects:

(b) The National Home Mortgage Finance Corporation shall provide the mortgage market
for nurses housing through the purchase of nurses housing mortgages and /or issuance
of securities, It shall administer the funds provided for housing loans and developer
assistance under this Act as well as long-term funds provided by the Government
Service Insurance System and the Home Development Mutual Fund for nurses housing,


(c) The Home Guaranty Corporation shall design an appropriate guarantee scheme to
encourage financial institutions and private developers to undertake mass housing
production for nurses. It shall administer the Guarantee System fund as provided for
under this Act.

(d) The Government Service Insurance System and the Development Mutual fund shall be
the primary provider of funds for long-term hou

ing mort;

SEC. 5. Role of the Department of Education. The Department of Health shall
undertake the implementation of the program among its nurses and shall ensure collection of
amortization payments through a salary deduction scheme. In line with this, the DOH shall:

(a) Create a Nurses Housing Secretariat which shall issue and collect the necessary
documentation. receive and process application, and transfer the same to the appropriate

housing agencies;

(b) Deduct amortization from their nurses on a monthly basis and remit the same to the

appropriate agency
SEC. 6. Program Financing Scheme. — in the implementation of the Nurses Housing
Program, the following shall consist the financing scheme:
(a) Housing Loans for Nurses which shall be used for any of the following purposes:
1. Purchase ofa lot and construction of a residential unit thereon:

2. Purchase of any of the following:

brand new or old existing units;

ii, housing properties mortgaged with any institution:

housing assets being disposed of through public bidding or negotiated
sales:

3. Purchase of a fully developed lot within a residential area;

4. Construction of completing of a residential unit on a lot owned by the
beneficiary:

5. Home improvement or any alternation in an existing residential unit;


6. Restructuring of an existing housing loan in any government housing of
financial institution, provided that the account is updated.

Loans provided under this program shall be computed based on a net take home
pay which shall not be lower than Three Thousand Pesos (P3.000.00). The interest rate
on the loan shall not be more than twelve percent (12%) per annum and shall be fixed
for the entire term of the loan.

Provided, that if the borrower defaults on his amortization payment for reasons
of his own doing, the financing agency may subject the borrower to a regular interest
rate for the periods that he is in default.

To increase the benefits provided to nurses’ loans under this scheme shall not
be subject to such charges, fees or premiums except minimum processing fees to be
charged by the appropriate agencies.

Loans provided for nurses earnings less than Twelve Thousand Pesos
(P12,000.00) per month shall not be less than sixty percent (60%) of all available funds
allotted to this purpose. At least forty five percent (45%) of the year appropriation for
the Program shall be for Housing Loans.

it)

Developer Assistance Fund. Proponents or developers of housing projects exclusively
for nurses and with a selling cost not exceeding One Hundred Twenty Thousand Pesos
(P120,000.00) per house and/or lot package which shall be available exclusively for
nurses, may avail of a financing loan not exceeding eighty percent (80%) of the entire
project cost. The National Home Mortgage and Finance Corporation, in coordination
with the HUDCC, shall issue the appropriate guidelines for this purpose.

At least fifteen percent (15%) of the early appropriation for the program shall
be for developer financing: Provided, that the unused funds for developer financing
shall be utilized for Housing Loans.

(c) Guarantee System Fund. There is hereby created a guarantee system fund for Nurses
Housing Loans not exceeding One Hundred Fifty Thousand Pesos (P150,000.00) with
an interest rate of not exceeding twelve percent (12%) per annum as originate by the
funding agencies or their accredited financial institutions. Such loans shall he assigned
to the Fund immediately after origination for which the Fund shall issue promissory

notes,

At least forty percent (40%) of the yearly appropriation for the Programs shall
be for the loan guarantee, The Home Guarantee Corporation shall undertake the
guarantee system under this act and shall act as the administrator and trustee of the


fund. The HGC shall issue the appropriate guidelines within one (1) year from the
approval of this Act.

SEC. 7. Fiscal Incentives for Private Sector Participation in Nurses Housing.
Private sector developers who participate in the development of nurses housing shall be entitled

to the following fiscal incent

a. Exemption from income taxes for housing projects e9

b. Exemption from capital gains tax on housing projects exclusively dedicated for nurses;

¢. Exemption from documentary stamp tax for all project related documentation:

cemption from value-added tax for the project concerned:

¢. Exemption from transfer taxes for both raw and completed projects; and

Exemption from donor's tax for lands certified by the local government units to have
been donated to nurses housing purposes.

Provided, that upon application for exemption, the housing development plan shall have
already been approved by the appropriate government agencies concerned: Provided further,
that all the savings acquired by virtue of this provision shall be used to minimize the cost of
the housing units subject to the implementing guidelines to be issued by the Housing and Urban
Development Coordinating Council

‘The Department of Finance, in consultation with the Department of Human Settlements
and Urban Development, shall prepare the necessary implementing guidelines for the proper
implementation of the tax exemption mentioned in this section within one (1) after the approval
of this Act.

SEC. 8. Funding Source. ~The Government Service Insurance System and the Home
Development Mutual Fund shall contribute a total of Two Billion Pesos (P2,000,000,000.00)
for the initial implementation of the Program. Thereafter, each institution shall allocate at least
ten percent (10%) of their annual investable funds for long-term nurses housing mortgages and
shall be made available to the National Home Mortgage and Finance Corporation under terms
which ensure their repayment. The National Government shall contribute One Billion Pesos
(P1,000,000,000.00) annually for the continuous implementation of the Program

SEC. 9. Appropriation. ~ The amount necessary to carry out the purpose of this Act
shall be included in the General Appropriations Act of the year following its enactment into
law and every year thereafter.


SEC. 10. Separability Clause. - If, 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. 11. 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

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

Approved,