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FOURTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
) 
SENATE 
(In substitution of S. Nos. 37, 422 and 1570) 
Prepared jointly by the Committees on Urban Planning, Housing and Resettlement, and 
Local Government with Senators Biazon, Estrada and Zubiri 
as authors thereof 
AN ACT 
RESTRUCTURING PROGRAM, PROVIDING THE MECHANISMS THEREFOR, AND 
FOR OTHER PURPOSES 
TO ESTABLISH A SOCIALIZED AND LOW-COST HOUSING LOAN 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Title. - This Act shall be known as the "Socialized and Low-Cost 
Housing Loan Restructuring Act of 2007." 
SECTION 2. Declaration of Policy. - It is the policy of the State to undertake a 
continuing program of urban land reform and housing that will make available at 
affordable cost decent housing to underprivileged and homeless citizens taking into 
consideration credit worthiness and credit discipline of the borrowers, and financial 
viability of the lending institution. 
SECTION 3. Coverage of the Restructuring Program for Delinquent Socialized 
and Low-Cost Housing Loan Accounts. - There is hereby established a Socialized and 
Low-Cost Housing Loan Restructuring Program. Under this program: 
a. for three (3) years from the effectivity of this Act, all socialized and low-cost 
housing loans, the original principal amount of which are within the housing 
loan ceilings as determined by the Housing and Urban Development 
Coordinating Council (HUOCC), with any of the government financing 
institutions and agencies involved in the National Shelter Program (NSP), 
including but not limited to, the Government Service Insurance System 
(GSIS), Social Security System (SSS), Home Development Mutual Fund 
(HDMF), National Home Mortgage Finance Corporation (NHMFC), Social 
Housing Finance Corporation (SHFC), Home Guaranty Corporation (HGC), 


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and the National Housing Authority (NHA) that have at least six (6)-months of 
unpaid monthly amortizations as of the effectivity Of this Act are hereby 
declared covered by the benefits of this restructuring program notwithstanding 
that the same accounts have availed of the benefits of a previous 
restructuring or condonation program. Provided, That the original principal 
amount of the housing loans shall not exceed Two Million Five Hundred 
Thousand Pesos (P2,500,000.00). Provided, further, That every year after 
the effectivity of this Act, HUDCC is authorized to adjust the amount herein 
stated; 
b. an application for restructuring shall only be charged a processing fee which 
shall be lower than the previous restructuring or condonation programs and 
no downpayment shall be required for a borrower to apply for the benefits of 
this restructuring program; 
c. all penalties and surcharges shall be condoned upon approval of the 
restructuring application under this Act. Provided, That a reasonable portion 
of the interest on the housing loan shall also be condoned, the amount or 
percentage of which shall be determined by the respective boards of the 
government financing institutions (GFls) and housing agencies mentioned in 
Section 3(a) hereof. Provided, further, That all accrued interests shall be 
treated as non-interest bearing principal to be equally repaid during the term 
of the restructured loan. Provided, finally, That all corresponding penalties 
and surcharges which the NHMFC and SHFC may have to pay its funders as 
a result of the implementation of this Act shall be automatically adjusted and 
condoned; 
d. the term of a housing loan account being applied for restructuring may be 
extended for a period longer than its original term in order to lower the 
amount of the monthly amortization. Provided, That in no instance shall the 
extension of the restructured loan exceed the difference between the 
borrower’s age at the time of application and age sixty-five (65). In the event 
that the borrower fails to pay six (6) consecutive monthly amortization during 
the term of the restructured loan, the concerned GFI or housing agency may 
pursue foreclosure proceedings on the property; 
e. in case of incapacity of a borrower, hidher legal heirs and successors-in- 
interest may assume payment of his/her outstanding housing loan; 
f. loan restructuring under this Act may be availed of only once; and 
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g. the loan restructuring and condonation program provided for in this Act shall 
be construed as a separate and distinct program being implemented by the 
respective GFls and housing agencies mentioned in Section 3(a) hereof and 
the borrower has the option to choose which condonation program he may 
avail of. 
SECTION 4. Authority to Continue the Restructuring Program. Notwithstanding 
Section 3 (a) of this Act, the governing boards of NHMFC, SHFC, HGC and NHA are 
hereby authorized to continue the restructuring program under this Act. 
SECTION 5. 
Exclusion from Coverage. - In no instance shall the following 
housing loan accounts be covered by this Act: 
a. any account without a single payment since take out; 
b. an account whose housing unit has been abandoned by the borrower-owner 
for more than two (2) years from the date of delinquency; 
c. an account whose housing unit is occupied by a third party other than the 
original registered beneficiary; and 
d. an account that has been foreclosed, the title of which has already been 
consolidated/transferred in the name of the GFI or the housing agency. 
SECTION 6. Remedies Against Delinquent Accounts. - Without prejudice to the 
resort to foreclosure as provided for by law or contract in proper cases, the GFls and 
housing agencies shall continue to exercise their right to foreclose properties covered 
by accounts excluded in subparagraphs (a) through (d) under Section 5 hereof or of 
delinquent accounts of borrowers who shall fail to avail of the benefits under this Act 
and that such foreclosure proceedings shall be exempt from publication in newspapers 
and from the payment of filing fees, Provided, that posting of the date and place bf 
auction shall be made in at least three (3) conspicuous public places similar to that 
provided for under Act 3135: Provided, further, That notice to the borrower at his last 
known address shall likewise be made. 
SECTION 7. lncenfive for Prompt Payment of Monthly Amortization. - Upon the 
effectivity of this Act, all accounts whose monthly amortizations are paid on time shall 
be entitled to incentives, including but not limited to, a reasonable discount on loan 
interest, the amount or percentage of which shall be determined by the respective 
boards of the government financing institutions (GFls) and housing agencies. 
SECTION 8. Implementing Rules and Regulations. - There is hereby created an 
inter-agency committee, headed by the Housing and Urban Development Coordinating 
Council and composed of all the government institutions and agencies enumerated in 
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Section 3(a) hereof, tasked to promulgate the implementing rules and regulations within 
sixty (60) days from the effectivity of this Act. 
SECTION 9. congressional Oversight Committee. - There is hereby created a 
Congressional Oversight Committee composed of the Chairman of the Senate 
Committee on Urban Planning, Housing and Resettlement and the Chairman of the 
House Committee on Housing and Urban Development, six (6) members of the Senate 
and six (6) members of the House of Representatives. The members from the Senate 
shall be appointed by the Senate President from among the members of the Senate 
Committee on Urban Planning, Housing and Resettlement based on the proportional 
representation of the parties or coalition therein. The members from the House of 
Representatives shall be appointed by the Speaker from among the members of the 
House Committee on Housing and Urban Development based on the proportional 
representation of the parties or coalitions therein. 
The Oversight Committee upon review and approval of the Implementing Rules 
and Regulations shall become functus officio and therefore cease to exist. 
SECTION 10. 
Repealing Clause. - All laws, executive orders, rules or 
regulations, or any part thereof, inconsistent with any provisions of this Act are hereby 
repealed or modified accordingly. 
SECTION 11. Effectivity Clause. - This Act shall take effect fifteen (15) days 
after its complete publication in the Official Gazette or in at least two (2) newspapers of 
general circulation. 
Approved, 
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