Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH (17) CONGRESS
Third Regular Session

HOUSE BILL NO. a1e4

Introduced by Representative Jose Christopher Y. Belmonte

EXPLANATORY NOTE

Current Philippine laws and programs that aim to move and resettle informal
settler families (ISFs) have become insufficient given the growing demands of
urbanization. Past and existing resettlement programs have been unsustainable,
with the production of housing units below market prices or at subsidized mortgage
rates for the poor. Accordingly, the heavy reliance on underpriced loans and
guaranty products has led to significant financial losses, with government housing
agencies regularly becoming insolvent.

Housing choice for ISFs is determined by factors other than tenure, including
location, access to livelihood and support services, cost, and size/dwelling
characteristics. A census of ISFs living in waterways in Metro Manila, conducted in
2014! revealed that despite an offer of homeownership, 32% preferred to stay in their
current residence, even along the waterways or danger areas. The same census
showed that 50% of ISFs in Metro Manila are not homeowners but, sharers or
renters. Thus, a paradigm shift is necessary to solve the problem.

A rental subsidy is practicable and pragmatic. By granting ISF financial
assistance, they can immediately leave dangerous areas or infrastructure project sites

* University of the Philippines Planning and Development Research Foundation Inc. (UP PLANADES) dataset. Component
1: Socio-Economic Profiling and Community Organizing of ISFs in Danger Areas. Submitted by The University of the
Philippines Planning and Development Research Foundation Inc. (UP PLANADES) to the Department of Interior and Local
Government and the Australian Embassy for the Australian Aid Technical Assistance to the Department of the Interior and.
Local Government (DILG) on Government of the Philippines Program for Securing Safety of Informal Settler Families in
Metro Manila. 2014

RECEIVED

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and merge with the mainstream populace within a city. This, can even spur the local
economy and urban planning. Moreover, local governments can maximize its role of
housing provision and social protection for the vulnerable ISFs in their respective
jurisdiction through public and private rental housing. Public-private partnerships
are also key to generating in-city housing supply. The government only needs to lay
out a clear-cut policy on the delineation and extent of the subsidy to affect an
equitable rental assistance.

The immediate passage of this timely measure is most earnestly sought.

Sofood


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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH (17") CONGRESS
Third Regular Session
8184

HOUSE BILL NO.

Introduced by Representative Jose Christopher Y. Belmonte

AN ACT
ESTABLISHING A RENTAL SUBSIDY PROGRAM
FOR INFORMAL SETTLER FAMILIES (ISF)
AND APPROPRIATING FUNDS THEREFOR

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

Section 1. Title. - This Act shall be known as the “Rental Subsidy Program for ISF
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;

b) Provide an innovative housing program providing affordable, livable, and
decent housing, as well as access to basic social services, especially for the

underprivileged;


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©) Protect the urban poor from the impacts of immediate dislocation due to

eviction and demolition arising from government projects and their lack of

tenure.

Sec. 3. Definition of Terms. - For purposes of this Act, the following terms or words
and phrases shall mean or be understood as follows:
a) Informal Settler Families refers to individuals or households living under any of

the following conditions:

)
)
Co)
(iv)
)

(vi)

b)

A lot/dwelling unit without consent of the property owner;

Danger areas;

Areas for government infrastructure projects;

Protected forest areas (except for indigenous peoples);

Areas for Priority Development as declared under Proclamation No.
1967, Series of 1980, if applicable; and

Other government/public lands or facilities not intended for human
habitation.

Rental Subsidy refers to a financial assistance provided by the government to

low-income informal settler families to rent accommodations in the private
rental market. The rental subsidy is not a full subsidy. The amount of which
should not exceed the rates regulated under the Rent Control Act of 2009 and
is determined by the difference between the average amount renter ISFs are

paying every month and the average low-cost rental housing amount in the

area from previous census and surveys conducted by the government,

Sec. 4. Rental Housing Subsidy Program. - A Rental Housing Subsidy Program for
Informal Settler Families (ISF), herein referred to as the Program, shall hereby be
established as a housing and social protection program, with the end in view of
enabling ISFs to lead decent lives and giving them access to the formal housing
market. Eligible ISFs shall receive a flat-rate rental subsidy, the amount of which to
be jointly determined by the Housing and Urban Development Coordinating
Council (HUDCC) and the National Economic and Development Authority (NEDA);


Provided, that at any time, but not more often than once every two (2) years, such
subsidy may be reviewed or revised to conform to prevailing economic conditions.
Rental subsidy shall be granted to qualified beneficiaries for a maximum of five (5)
years or upon their availment of permanent housing, whichever comes first.

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Sec. 5. Program Eligib’

 ~ Eligible ISFs shall be those who are:
a) Living in danger areas as defined by the HUDCC;

b) Staying in areas identified for government infrastructure projects with
firm funding commitments, such as those of the Department of Public
Works and Highways (DPWH), Department of Transportation (DOT:),
and Local Government Units (LGUs), based on the alphalist of the
National Housing Authority (NHA), LGUs and Socialized Housing
Finance Corporation (SHFC), and actual validation by national
government implementing agencies such as, but not limited to DPWH,
DOT, and the Metro Manila Development Authority (MMDA);

©) Having at least one employed household member or any source of
livelihood;

) Willing to vacate the informal settlement area, transfer to a safer area,

and sign a maximum 5-year contract with the government.

Sec. 6. Conditions for Entitlement. - All eligible ISF beneficiaries shall comply with
the following conditions as a requirement for continued program eligibilit

a) The ISF shall not move back to the danger area, government
infrastructure area, or private land;
b) The ISF shall pay the counterpart rental to the lessor.

The ISF beneficiary who shall maintain a good payment standing, shall be
prioritized as a beneficiary in future government housing programs.


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Sec. 8, Form of Payment, - The rental subsidy shall be distributed by the Department
of Social Welfare and Development (DSWD) on a monthly basis to the lessors of the
ISFs through a dedicated bank account in a government bank.

Sec. 9, Roles of Government Agencie:

- The rental subsidy program shall involve

national government agencies and instrumentalities with their specific roles outlined

below:

1, HUDCC shall:

a.

Coordinate with housing agencies to formulate Program targets
and integrate these to national housing policy;

. Promulgate appropriate housing policies among its Council

member agencies in line with the implementation of this Program,
along with housing agencies and NEDA;

. Set up monitoring and evaluation system, tools, exit strategy, and

methodologies on compliance of conditions, implementation,
output and impact assessments together with housing agencies,
DSWD, Presidential Commission on the Urban Poor (PCUP), and
LGUs; and,

. Recommend to the Congress measures and policies for the

responsive delivery of the commitments under this Act.

2. NHA shall:

a.

Certify the eligibility of the ISF to qualify as beneficiary for this
program;

. Coordinate with infrastructure program implementing agencies

such as DPWH and DOTr for the identification of areas for
immediate resettlement;

. Update the alphalist and come up with a Socio-Economic Profile of

ISFs to be resettled as part of the National Resettlement Program.

. Disburse the rental subsidy to the lessors of the ISFs through a

dedicated bank account in a government bank;


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e. Enlist ISF beneficiaries and their respective lessors for the Program;
and,

f. Design and conduct monitoring and evaluation, which includes a
Grievance and Redress System and exit strategy of this Program.

3. Home Development Mutual Fund (HDME) shall:
a. Enroll the ISFs to the HDMF (PAGIBIG) to facilitate beneficiaries’
entry to the formal housing market.

4. DSWD shall:
a. Design the social preparation phase, formation workshops and
training programs to ensure that a qualified ISF beneficiary and the
LGU are aware of the eligibility and conditions pertinent to this
Program; and,
b. Conduct social preparation activities with PCUP and LGUs.

5. PCUP shall:
a. Assist DSWD in the design of the social preparation activities,
workshops and training programs for ISFs; and,
b. Conduct social preparation activities with the LGUs and DSWD.

6. Technical Education and Skills Development Authority (TESDA) shall:
a. Provide skills training to ISF beneficiaries.

7. LGUs shall:
a. Register the lessors in their respective areas of jurisdiction through

the barangays;

b. Assist the NHA in conducting census and tagging of ISFs affected
for immediate resettlement;

c. Assist the DSWD and PCUP in conducting social preparation
activities;


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d. Contain the vacated areas of ISFs to help achieve the objectives of
this Program;

e. Assist the DSWD in monitoring and evaluation of this Program;
and,

f. Conduct field validation of ISFs and their respective lessors with
DSWD in the rental housing units.

Sec. 10. Additional Positions and Personnel for the NHA. - For purposes of this
Act, the NHA, shall upon its discretion, create positions and enlist additional
personnel to carry out this mandate.

Sec. 11. Appropriations, - The amount necessary for the effective implementation of
this Act shall be charged against the current appropriations for the NHA. Hereafter,
such amount as may be necessary for its continued implementation shall be included
in the annual General Appropriations Act.

Sec. 12. Implementing Rules and Regulations. - To fully implement the provisions
of this Act, the NHA, HUDCC, in close coordination with the DSWD, PCUP, and
LGUs, herein represented by the Union of Local Authorities of the Philippines
(ULAP), within six (6) months, shall issue rules, regulations, guidelines necessary to
carry out the intent and purpose of this Act.

Sec. 14, Mandatory Review on the Implementation of this Act. - The NHA shall
submit to Congress a report on the implementation of this Program at the end of the
second year from the date of the effectivity of this Act and every two years
thereafter.

Sec, 15, Separability Clause. - If any portion or provision of this Act shall be held
unconstitutional or invalid, the remaining provisions not affected thereby shall
continue to be in full force and effect.


1

Sec, 16. Repealing Clause. - All laws, executive orders, proclamations, rules,
regulations and other issuances or parts thereof which are inconsistent with the
provisions of this Act are hereby repealed, amended or modified accordingly.

Sec. 16. 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,