kfjffi ■' Ofi ;
TWENTIETH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
F/rst Regular Session
)
)
)
SENATE
S. No. 671
25 JUL 16 P4 :07
RLCEIVuL
Introduced by Senator Christopher Lawrence "Bong" T. Go
AN ACT
INSTITUTIONALIZING THE PAMBANSANG PABAHAY PARA SA PILIPINO 
PROGRAM
EXPLANATORY NOTE
Article XIII, Section 9 of the 1987 Constitution states that "the State shall, by 
law, and for the common good, undertake, in cooperation with the public 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 resettlements areas."
In pursuit of this constitutional mandate, the government has launched various 
housing initiatives aimed at addressing the country's growing housing backlog and 
improving the quality of life for millions of Filipinos living in informal settlements and 
inadequate dwellings. Despite these efforts, access to affordable, decent, and secure 
housing remains a persistent challenge, particularly for low-income families and 
marginalized communities in urban centers.
According to the UN-Habitat Philippines Country Report 2023, there is an 
estimated 3.7 million informal settler families (ISFs) across the country.1 About half a 
million informal settler families in the National Capital Region (NCR) are living in poor
1 https://unhabitat.org/sites/default/files/2023/06/5._un- 
habitat_philippines_country_report_2023_final_compressed.pdf


conditions, including in high-risk areas, which is made worse by the parallel effects of 
the COVID-19 pandemic and other disasters.2 These communities face heightened 
vulnerability due to unsafe living conditions, overcrowding, and lack of access to basic 
services.
Furthermore, the Department of Human Settlements and Urban Development 
(DHSUD) warned that the housing backlog of 6.5 million units, from 2017 to 2022, 
may eventually grow to 22 million units by 2040 if unaddressed.3 These predicaments 
could hamper the goal of sustainable housing development and the elimination of 
housing poverty.
The DHSUD initiated the Pambansang Pabahay para sa Pilipino Program (4PH) 
which establishes housing programs in partnership with local government units and 
the private sector, and implements an interest subsidy on mortgage payment of 
housing beneficiaries. This proposed measure institutionalizes the program to further 
elevate it as a national priority with sustainable funding and a clear set of guidelines 
and standards for its proper and successful implementation. This will create a holistic 
initiative that can provide adequate and affordable housing to several families who 
lack decent housing.
In view of the foregoing, the approval of this measure is earnestly sought
SENATOR CHRISTOPHER LAWFffiNCE "BONG" T. GO
2 https://www.philstar.eom/nation/2022/09/04/2207223/500k-families-ncr-living-poor-conditions
3 https://businessmirror.com.ph/2020/06/12/citing-22-million-backlog-forecast-government-steps-up-
housing-projects/


1
2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
'■Sif<r of t.'i'
TWENTIETH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
)
)
)
SENATE
25 JUL 16 P4 :07
Ri;CEiV;.L- u!
S. No.
b/I
Introduced by Senator Christopher Lawrence "Bong" T. Go
AN ACT
INSTITUTIONALIZING THE PAMBANSANG PABAHAY PARA SA PILIPINO 
PROGRAM
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 "Pambansang Pabahay para sa 
Pilipino Program Act of 2025."
SEC. 2. Declaration of Policy. - It is hereby declared a policy of the state to pursue a 
continuing program of housing and urban development which shall make available at 
affordable cost, decent housing and basic services especially to the underprivileged and 
homeless citizens by establishing a housing interest subsidy program with particular focus 
on assisting informal settler families (ISFs) acquire their own decent housing.
SEC. 3. The Pambansang Pabahay para sa Pilipino Program — The Department of 
Human Settlements and Urban Development (DHSUD) shall implement the Pambansang 
Pabahay para sa Pilipino Program, hereinafter referred as the "Program", which shall have 
the following objectives:
(a) Develop one million housing units every year;
(b) Prioritize the lowest 30% income decile of the population and low wage earners 
as primary beneficiaries of the Program;


1
2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28 
29
(c) Pursue innovative strategies to make housing finance accessible and housing units 
affordable to the target beneficiaries, through but not limited to the following;
(1) Allocate government funds for the payment of housing interest support to 
lower the monthly interest rate payment of qualified program beneficiaries;
(2) Utilize vacant, idle, blighted and/or under-utilized government and private- 
owned lands for housing and mixed-use development;
(3) Tap government financing institutions (GFIs) and private banks to provide 
development loans & end-user financing; and
(4) Promote varied forms of modalities in implementing housing and mixed-use 
development.
(d) Capacitate and support the local government units (LGUs) as one of the main 
project proponents in implementing housing projects; and
(e) Encourage and incentivize the private sector to participate in the program 
implementation.
SEC. 4. Program components. -
(a) Site identification. - As the main project proponents, the LGUs shall, in coordination 
with the DHSUD, be responsible for project site identification and the development 
of their respective residential project/s. LGUs may engage and/or enter into a joint 
venture with government entities or private developers or builders, to undertake 
and construct housing projects using DHSUD-guided housing parameters.
The following lands may be used for the housing projects:
(1) LGU-owned property. The property identified for the project should have a 
"clean" or a "near-clean" title. For this purpose, a "clean title" shall be defined 
as one that is registered in the name of the LGU and is entirely free of any lien 
or encumbrance. On the other hand, a "near-clean title" shall be defined as 
one that is affected by a lien or encumbrance including any adverse claim or 
interest or any issue, complication or obstacle that can be resolved within the 
timeframe needed for its utilization and the completion of the project.


1
2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
(2) NGA-owned property. LGUs who intend to use the properties of National 
Government Agencies (NGAs) for their housing projects shall be mainly 
responsible for securing the issuance of authority to use such land and/or the 
disposal/transfer thereof to them from the NGAs concerned.
(3) Privately-owned property. Private landowners of blighted areas or land 
occupied by ISFs are encouraged to participate in the 4PH Program by (a) 
donating their land, or (b) selling their properties at a reduced/discounted 
price. Subject to the cap on the proposed selling price of the planned housing 
units, the LGUs may consider purchasing such land or entering into a joint 
venture agreement with the owner, subject to compliance with appropriate 
government laws and regulations.
(b) Housing design. - LGUs shall be responsible for preparing the parameters of their 
proposed housing projects, in accordance with existing government-prescribed 
laws and standards, and the following DHSUD design and proposed price ceiling 
parameters for projects to be accredited under the Program.
(c) Housing construction. - LGUs shall procure or select qualified developers and/or 
contractors to construct the proposed housing project/s in accordance with 
applicable government rules and regulations. Notwithstanding the entry of new 
developers and contractors, the LGUs are encouraged to invite housing developers 
who are known to have good standing and have already undertaken projects 
within their areas of jurisdiction and need to develop corresponding socialized 
housing projects in compliance with the balanced housing development program 
requirement.
(d) Financing for the housing project. - The Pag-IBIG Fund (HDMF), as well as other 
GFIs and private banks, shall make their funds available for the LGUs' housing 
projects through their respective developmental loan programs. They shall also 
participate by providing end-user financing to homebuyers;
(e) Beneficiaries. - LGUs shall set the eligibility criteria for, and identify, the project 
beneficiaries. In formulating such criteria, they shall coordinate with GFIs and 
private banks that will provide end-user financing to ensure alignment of all their


1
2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
selection criteria particularly as regards the credit- worthiness and amortization 
capacity of potential buyer-beneficiaries.
Beneficiaries must be capable of and committed to paying the monthly housing 
loan amortization over the 30-year loan term, to the GFIs or private banks. The 
above notwithstanding, LGUs and their development partners are not prohibited 
from developing housing projects that incorporate or provide cross subsidies 
between different income classes so as to benefit more ISFs and lower- bracket 
wage earners.
(f) Subsidy on amortization and interest. - The DHSUD shall, directly or through its 
attached corporations, provide amortization support payable to the end-user 
finance providers for the account of the buyer-beneficiaries' units, using funds that 
will be made available through the General Appropriations Act (GAA), and/or other 
identified funding sources. LGUs are also encouraged to provide monthly 
amortization support to buyer- beneficiaries of the units, if needed to enable them 
to meet their monthly amortization obligations.
SEC. 5. Roles and Responsibilities. The implementing agencies shall, at the 
minimum, undertake the following roles, functions, and responsibilities:
(a) Department of Human Settlements and Urban Development (DHSUD)
(1) Act as the overall initiator, coordinator, and facilitator, of the Program;
(2) Facilitate the provision of funds through the GAA, Key Shelter Agencies (KSAs), 
GFIs and private banks, for use as: (a) development loans, (b) interest support 
for the program's project beneficiaries, (c) end-user financing, (d) guarantee 
financing, and (e) purchase of loan accounts;
(3) Oversee and monitor the implementation of the Program, including the project 
implementation and performance of all participants;
(4) Provide parameters/specifications, extend support and technical assistance to 
LGUs, developers, and other program partners including facilitating the issuance 
of Development Permits and Licenses to Sell within its areas of responsibilities; 
and


1
2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28 
29
(5) Perform such other roles, functions and acts which it may deem proper and 
necessary for the effective and full implementation of the Program;
(b) Local Government Units (LGUs)
(1) Act as the main proponent and major player in the planning, implementation and 
management of their respective housing projects;
(2) Have the primary responsibility of identifying lands for potential project locations 
as well as making it available for their proposed housing projects;
(3) Determine and prepare the project concept to be used for their housing projects;
(4) Determine the implementation modalities for each of their envisioned housing 
projects, including which project to undertake on its own, through joint venture, 
or using other options;
(5) Identify the project proponent that would undertake the development of each 
project, whether solely or in joint venture with third parties;
(6) Identify, select and enter into agreements with qualified developers and/or 
contractors to implement their proposed housing projects, in accordance with 
applicable government laws, rules and regulations;
(7) Provide support to their priority housing projects and beneficiaries, either through 
monthly amortization support and/or other commitments or forms/modes of 
assistance, such as land donation and site development, to make the units 
affordable to target buyer-beneficiaries;
(8) Issue the appropriate resolutions and/or ordinances needed for the proposed 
projects, including the allocation of land, funds and other necessary support for 
the successful implementation of the projects;
(9) Establish an office and provide qualified personnel to implement their housing 
program;
(10) Conduct social preparation activities for target beneficiaries in coordination with 
the DHSUD and its pertinent KSAs;
(11) Facilitate the expeditious issuance of local permits and clearances for their 
projects;


1
2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28 
29
(12) Take charge, to the extent possible and applicable, of all documentation 
necessary for the full implementation of their housing program;
(13) Undertake estate/property management responsibilities for their projects and 
ensure the availability of funds for the purpose;
(c) National Housing Authority and Social Housing Finance Corporation
(1) As landowners, enter into appropriate partnership agreements with the 
concerned partner LGUs;
(2) As a developer and/or project manager, implement the project/s in coordination 
with LGUs and other entities in accordance with the roles and responsibilities as 
may be agreed upon by the parties involved;
(3) Provide support to LGUs in social preparation, project development, and such 
other assistance needed for the successful implementation of the LGUs' housing 
program and projects under the Program;
(d) Home Development Mutual Fund (HDMF), participating Government Financial
Institutions (GFIs) and Private Banks
(1) Establish special lending programs with simplified, streamlined and expedited 
guidelines, requirements, and processes, and allocate exclusive funds for the 
Program, such as those needed for developmental loans to developers, and end- 
user financing to project buyer-beneficiaries to allow the latter to purchase their 
housing units;
(e) National Home Mortgage Finance Corporation (NHMFC)
(1) Provide liquidity to GFIs and private banks to ensure the sustainability of the 
Program by purchasing eligible Real Estate Mortgage (REM) accounts from them, 
securitizing such loan portfolios, and issuing asset-backed securities to attract 
more funds for housing.
SEC. 6. Annual Report of the Program. - The DHSUD shall annually publish a full 
report of the Program covering the implementation of the previous fiscal year. The said 
report shall include financial disclosures, number of clients or beneficiaries served, and


1
2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
recommendations to the President and to both chambers of Congress on how to further 
enhance the program.
SEC. 7. Program Transparency. - The DSHUD shall regularly and timely post and 
update on its website a report of financial disclosures and information about beneficiaries 
based on geographical area, social, economic, and cultural circumstances.
SEC. 8. Joint Congressional Oversight Committee. - Upon effectivity of this Act, a 
Congressional Oversight Committee, hereafter referred to as the Pambansang Pabahay 
Oversight Committee is hereby constituted. This Committee shall set the overall 
framework to review the implementation of this Act. It shall likewise determine inherent 
gaps in the law and recommend necessary remedial legislation or executive measures.
SEC. 9. Appropriation. - The amount necessary to implement this Act shall be 
included in the annual General Appropriations Act.
SEC 10. Separability Clause. - Any portion or provision of this Act that is declared 
unconstitutional shall not have the effect of nullifying other portions or provisions hereof 
as long as such remaining portions can still subsist and be given effect in their entirety.
SEC 11. Repealing Clause. - All laws, ordinances, rules, regulations, other 
issuances or parts thereof, which are inconsistent with this Act, are hereby repealed or 
modified accordingly.
SEC 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