Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
Second Regular Session 
HOUSE BILL NO. ____ 
Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR. 
EXPLANATORY NOTE 
The right to adequate housing was recognized as part of the right to an adequate standard of 
living in Article 25 of the 1948 Universal Declaration of Human Rights and in Article 11.1 of the 
1966 International Covenant on Economic, Social and Cultural Rights. Section 9, Article 13 of 
the 1987 Constitution also provides that the State shall undertake 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 resettlement areas. 
However, data showed that the Marcos administration inherited a backlog of around 6.7 million 
housing units from the previous administration. If the housing problem remains unresolved, the 
housing backlog may hit over 10 million by 2028 as stated by Department of Human Settlements 
and Urban Development (DHSUD) Assistant Secretary Avelino Tolentino III in a Senate Finance 
Committee Meeting in October 2022. Moreover, public school teachers also face a serious 
concern. Despite a higher take-home pay with the Salary Standardization Law, a significant 
number of our teachers were forced to leave their families and rent bed spaces or apartments 
nearby schools just to ensure the provision of quality education to our learners. Some teachers 
also endure life-threatening means of transportation in traveling from their respective houses to 
public schools. These conditions mean higher cost of living expenses and safety risks to our 
teachers who for so long, calling for higher government support.  
Given the high demands of the job, the call for financial security for our teachers has yet to be 
acted upon. The bill proposed seeks to be a solution to the woes of our teachers as one 
fundamental pillar of our education system. 
The humble intent of this bill is to help alleviate the financial struggles faced by many of our 
public school teachers by instituting a housing program specially tailored for them. This measure 
would allow them to purchase a housing unit of their choice through loans with affordable 
interest and long-term repayment periods. The National Housing Authority, National Home 
Mortgage Finance Corporation, Home Guaranty Corporation, and the Government Service 
Insurance System will spearhead the formulation and implementation of the proposed program. 
In addition, this bill proposes the provision of on-site living quarters for public school teachers 
in remote and hard-to-reach areas free of charge. This is meant to incentivize teachers to enter 
schools in rural areas, away from city centers, and promote quality education in geographically 
isolated and disadvantaged areas. 
In view of the foregoing, the approval of this bill is earnestly sought. 
LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR. 
September 28, 2023
1:05 pm
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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
Second Regular Session 
HOUSE BILL NO. ____ 
Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR. 
AN ACT 
INSTITUTING A COMPREHENSIVE HOUSING PROGRAM FOR PUBLIC SCHOOL 
TEACHERS, PROVIDING FUNDS THEREFOR AND FOR OTHER PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Short Title. – This Act shall be known as the “Pabahay Para sa Guro 
Program Act". 
SECTION 2. Declaration of Policy. – It is hereby declared the policy of the State to 
uplift the living conditions of teachers and promote a housing program to enable them 
to acquire their own housing units. To this end, the State affirms its commitment to 
strength, promote, and support the component activities of housing production and 
finance to order to enable teachers to acquire decent housing and basic services at the 
lowest affordable price 
SECTION 3. Coverage. – The Comprehensive Housing Program shall cover the 
teachers of the Department of Education (DepEd) with a permanent status. Likewise, 
the provision of free on-site living quarters shall apply to public school teachers who are 
teaching in public schools far away from their respective homes and families and are 
forced, or have opted, to live in said areas where the school they teach at are located. 
There shall be no distinction if the aforementioned public-school teachers are new hires 
or transferees.
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SECTION 4. 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 
teachers. 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 teacher's housing through the purchase of teacher's 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 teacher's 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 teachers. It shall administer the 
Guarantee System Fund as provided for under this Act; 
d. 
The Government Service Insurance System and the Home Development Mutual 
Fund shall be the primary provider of funds for long-term housing mortgages. 
 
SECTION 5. Role of the Department of Education. – The Department of Education 
shall undertake the implementation of the program among its teachers and shall ensure 
collection of amortization payments through a salary deduction scheme. In line with this, 
the DepEd shall: 
a. 
Create a Teacher's 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 teachers on a monthly basis and remit the same to 
the appropriate agency. 
 
SECTION 6. Program Financing Scheme. – In the implementation of the Teacher's 
Housing Program, the following shall consist the financing scheme: 
a.  
Housing Loans for Teachers which shall be used for any of the following purpose: 


 
1. 
Purchase of a lot and construction of a residential unit thereon; 
2. 
Purchase of any of the following: 
i. 
Brand new or old existing units;  
ii. 
Housing properties mortgaged with any institution;  
iii. 
Housing assets being disposed of through public bidding or negotiated sale; 
3. 
Purchase of a fully developed lot within a residential area; 
4. 
Construction of completion of a residential unit on a lot owned by the beneficiary; 
5. 
Home improvement or any alteration in an existing residential unit; 
6. 
Restructuring of 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 (Php 3,000.00). The interest rate 
on the loan shall not be more than ten percent (10%) 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 teachers, 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 teachers earning less than Twelve Thousand Pesos (PhP 12,000.00) 
per month shall not be less than sixty percent (60%) of all available funds allotted for this 
purpose. At least forty-five percent (45%) of the year appropriation for the Program shall 
be for Housing Loans. 
 
b. 
Developer Assistance Fund. Proponents or developers of housing projects 
exclusively for teachers and with a selling cost not exceeding One Hundred Twenty 
Thousand Pesos (PhP 120,000.00) per house and/or lot package which shall be available 
exclusively for teachers, 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 
Teacher's Housing Loans not exceeding One Hundred Fifty Thousand Pesos (PhP 
150,000.00) 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 
be 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 Program 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. 
 
SECTION 7. Fiscal Incentive for Private Sector participation in Teacher's Housing. 
– Private sector developers who participate in the development of teacher's housing 
shall be entitled to the following fiscal incentives: 
a.  
Exemption from income taxes for housing projects exclusively dedicated for 
teachers;  
b.  
Exemption from capital gains tax on housing projects exclusively dedicated for 
teachers, 
c. 
Exemption from documentary stamp tax for all project related documentation; 
d. 
Exemption from value-added tax for the project concerned, 
e. 
Exemption from transfer taxes for both raw and completed projects; and 
f. 
Exemption from donor's tax for lands certified by the local government units to 
have been donated to teacher's 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 Housing and Urban Development 
Coordinating Council, shall prepare the necessary implementing guidelines for the proper 
implementation of the tax exemption mentioned in this section within one (1) year after the 
approval of this Act. 
 
SECTION 8. Provision of Free On-Site Living Quarters. – The Department of 
Education shall, free of charge, provide livable and human living quarters at the nearest 
possible location to the public schools where the covered public-school teachers in 
Section 9 of this Act are teaching. 
Existing benefits and allowances already granted by law, rules, regulations and 
issuances to the covered public school teachers in this Act shall not be diminished, 
withdrawn or removed. 
 
SECTION 9. Implementing Rules and Regulations. – The DepEd, in consultation with 
the Department of Public Works and Highways (DPWH), Department of the Interior and 
Local Government (DILG), the Department of Budget and Management (DBM), as well as 
national agencies mentioned in Section 4 of this Act, shall formulate and promulgate the 
necessary implementing rules and regulations for the successful implementation of this 
Act not later than ninety (90) days from the effectivity of this Act. 
 
SECTION 10. Funding Source. – The Government Service Insurance System and the 
Home Development Mutual Fund shall contribute a total of Two Billion Pesos (PhP 
2,000,000,000.00) for the initial implementation of the Program. Thereafter, each 
institution shall allocate at least ten percent (10%) of their annual investible funds for long-
term teacher's 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 (PhP 1,000,000,000.00) annually 
for the continuous implementation of the Program. 
 


 
SECTION 11. Appropriations. – The amount necessary to carry out the purposes of this 
Act shall be included in the General Appropriations Act of the year following its enactment 
into law and every year thereafter. 
 
SECTION 12. Separability Clause. – Should any provision herein be declared 
unconstitutional, the same shall not affect the validity of the other provisions of this Act. 
 
SECTION 13. Repealing Clause. – All laws, decrees, orders, rules, and regulations or 
other issuances or parts inconsistent with the provisions of this Act are hereby repealed, 
amended, or modified accordingly. 
 
SECTION 14. Effectivity Clause. – This Act shall take effect in fifteen (15) days after 
publication in the Official Gazette or in one (1) newspaper of general circulation in the 
Philippines. 
 
Approved,