Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. 7008

Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.

AN ACT
ESTABLISHING THE RENTAL HOUSING SUBSIDY PROGRAM AND
PROVIDING FUNDS THEREFOR AND FOR OTHER PURPOSES

EXPLANATORY NOTE

According to the Philippine Statistics Authority (PSA), there are about 4.5 million
homeless people in our country, three million of which are in Metro Manila. This
number is possibly the most in any city in the world as estimated by some
organizations.

Poverty is not the sole reason for homelessness. The unique condition of the
Philippines being in the Asia Pacific Region exposes our citizens to various
disasters that are not apparent in other countries where housing is likewise a
problem. There are about 20 typhoons that pass by the Philippines and it also
experiences frequent seismic activity. For example, Supertyphoon Yolanda in 2013
left more than 4.4 million people homeless.

The administration’s medium term plan—the Philippine Development Plan (PDP)
2017-2022—ighlights the importance of healthy housing conditions and well
planned urban development in achieving inclusive growth and a globally
competitive economy. The PDP 2017-2022 approved by the board of the National
Economic and Development Authority (NEDA) identified housing as one of the nine
priority sectors “with the greatest potential’ to help the government realize its goals
under the Ambisyon 2040.

This bill humbly proposes to establish a Rental Housing Subsidy Program, which
shall serve as a housing and social protection program with the end view of
enabling Informal Settler Beneficiaries to lead decent lives and supporting them 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.

In this proposal, eligible beneficiaries shall receive a rental subsidy, the amount of
which shall be determined by taking into consideration, among others, the
prevailing rental rates in the concerned locality and the economic standing and
potential of the family. The subsidy shall be a percentage of the total amount of


rentals as determined by the rental or lease contract between the eligible
beneficiary.

The immediate passage of this bill is most earnestly sought

Ly Al

LUIS RA’ ID “LRA '. VILLAFUERTE JR.


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

House Bit no, _ 2008

Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.

AN ACT
ESTABLISHING THE RENTAL HOUSING SUBSIDY PROGRAM AND
PROVIDING FUNDS THEREFOR AND FOR OTHER PURPOSES

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 "Rental Housing Subsidy
Program Act of 2020."

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 providing affordable, livable, and
decent housing, as well as access to basic social services, especially for the
underprivileged;

c. Protect the urban poor from the impact of immediate dislocation due to
eviction and demolition arising from government projects; and

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

Sec. 3. Definition of Terms. For purposes of this Act, the following terms or words
and phrases shall be understood to mean as follows:


a. Dislocation — refers to the state of being displaced from one place to
another due to causes such as but not limited to eviction and demolition;

b. Informal Settler Beneficiary (ISB) refers to individuals or households
living under any of the following conditions:

1. Where the individual or household is living in a lot or dwelling unit
without the consent of the legal owner of such lot or dwelling unit;

2. Where the individual or household is living in a danger area as
determined by the Department of Human Settlements and Urban
Development (DHSUD);

3. Where the individual or household is living in an area reserved or
used for government infrastructure projects;

4. Where the individual or household is living in an area which is
classified as a protected or forest area, except indigenous peoples;

5. Where the individual or household is living in an area declared as a
priority development area under Proclamation No. 1967, series of 1980, as
applicable; or

6. Where the individual or household is living on public lands,
structures, or facilities not intended for human habitation.

c. Rental Housing Subsidy— refers to the financial assistance provided by
the government to rent accommodation in the private rental market, the amount
which shall not exceed the rates as regulated under Republic Act No. 9653,
otherwise known as the "Rent Control Act."

Sec. 4. Rental Housing Subsidy Program. — A Rental Housing Subsidy
Program, hereinafter referred to as the "Program," shall be established as a
housing and social protection program with the end view of enabling ISBs to lead
decent lives and supporting them 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 beneficiaries shall receive a rental subsidy, the amount of which shall
be determined by the DHSUD taking into consideration, among others, the
prevailing rental rates in the concerned locality and the economic standing and
potential of the family. The subsidy shall be a percentage of the total amount of
rentals as determined by the rental or lease contract between the eligible


beneficiary and the lessor, provided that for those eligible beneficiaries below the
poverty threshold as determined by the Philippine Statistics Authority, the subsidy
shall be at least 50% of the total amount of rentals.

Notwithstanding any provisions to the contrary, at any time but not more than
once every two (2) years, subsidies given under the program shall be reviewed or
revised to conform to prevailing economic conditions.

Rental subsidy shall be granted to eligible beneficiaries for a maximum of
five (6) years or upon their availment or acquisition of permanent housing,
whichever comes first.

Sec. 5. Eligibility. To be an eligible beneficiary under this Act, an individual or
household must:

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; and

c. Vacate the informal settlement area in which they are presently living
and transfer or relocate to a safer area.

Sec. 6. Conditions for Continued Entitlement or Eligibility. All eligible
beneficiaries shall comply with the following conditions for continued availment 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 that portion of the rentals not subsidized under
the program to the lessor.

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 DSHUD in
such form as may be identified by the DHSUD to be most beneficial and
appropriate for the beneficiaries.

Sec. 8. Roles of Government Agencies. The program shall involve the national
government agencies and instrumentalities with the following roles:


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 the DHSUD in line with the implementation of this program;
3. 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 on
the Urban Poor (PCUP), and the local government units; and

5, Recommend to Congress measures for the proper and responsive
implementation of this Act.

b. The National Housing Authority (NHA) shall:
1. Certify the eligibility of the beneficiaries under the program;

2. Coordinate with infrastructure program implementing agencies,
including but not limited to the Department of Public Works and Highways
(DPWH) and the Department of Transportation (DOT?) for the identification
of areas housing persons who need immediate resettlement;

3, Update the alphalist and socio-economic profiles of beneficiaries to
be resettled as part of the National Resettlement Program; and

4, Design and conduct appropriate monitoring and evaluation of the
implementations of this program, which shall include a grievance and
redress system.

c. The Home Development Mutual Fund (HDMF) shall enroll the
beneficiaries to the HDMF system so as to facilitate their entry into the formal
housing market.

d. The DSWD shall:

4. Design the social preparation activities and form 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:

4. Assist the DSWD in the design of social preparation activities,
workshops, and training programs for beneficiaries;


2. Conduct social preparation activities with the local government
units.

f. The Technical Education and Skills Development Authority (TESDA) shall
20 provide skills training to 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 ISBs in need of
immediate resettlement;

3. Assist the DSWD and PCUP in conducting social preparation
activities

4. Contain the vacated areas of ISBs to help achieve the objectives of
this program;

5. Assist the DSWD in monitoring and evaluating the implementation
of this program; and

6. Conduct field valuation of beneficiaries and their respective lessors
with DSWD in the rental housing units.

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.

Sec. 10. Appropriations. The amount necessary for the effective implementation
of this Act shall be charged against the current appropriations for the DHSUD.
Thereafter, such amounts as necessary for its continued implementation shall be
included in the General Appropriations Act.

Sec. 11. 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 (2"*) year from date of effectivity and every two (2) years thereafter.


Sec. 13. 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. 14. Repealing Clause. — All laws, executive orders, proclamations, rules,
regulations, and other issuances or parts thereof inconsistent with the provisions of
this Act are hereby repealed, amended, or modified accordingly.

Sec. 15. Effectivity. — This Act shall take effect fifteen (15) days following its
publication in the Official Gazette or in at least two (2) newspapers of general
circulation.

Approved,