FIFTEENTHCongess of the)
of the Republic of the Philippines)
Second Regular Session )

House of Representatives

House Bill No, 08 28

Introduced by : Atty. MA. THERESA B. BONOAN-DAVID
Representative, 4” District Manila

EXPLANATORY NOTE

The scarcity of affordable housing affects all sectors of society especially our public
school teachers when an independent survey revealed that more than ninety thousand
(90,000) public school teachers have no homes to call their own,

Majority of these public school teachers cannot afford their own homes at market
prices since they eam a gross monthly income of Pi0,000 or less. In addition to this, more
than 20% of our public school teachers have unemployed spouses and thus, bears the
burden of providing for their family. There had been efforts to solve this problem by
providing for a special homing facility through the state pension fund, However, its
implementation got caught up in the web of politics and never materialized. Thus, it is
imperative that we provide for a stable housing program for our teachers through legislation

This bill seeks to institute @ housing program for teachers by providing funds through
loans at affordable interest and long-term repayment period, which our teachers can uge to
purchase a housing unit of their own choice. It also seeks to involve the private sector in
providing housing units exclusively for teachers through the grant of fiscal incentives

In view of the foregoing, the passage of this bill is earnestly sought.

Alans

Atty. MA. THERESA B. BONOAN-DAVID
Representative, 4" District Manila


7

FIFTEENTH Congress of the)
of the Republic of the Philippines)
Second Regular Session )

House of Representatives

House Bill No. 528

Introduced by : Atty. MA. THERESA B. BONOAN-DAVID
Representative, 4" District Manila

AN ACT TO PROVIDE FOR A HOUSING PROGRAM FOR TEACHERS, PROVIDING
FUNDS THEREOF, AND FOR OTHER PURPOSES.

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

SECTION 1. Title. This Act shall be known as the “Teacher's Housing Programs”

SEC. 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.

SEC. 3. Coverage. The Program shall cover the teachers of the Department of
Education (DepEd) with a permanent status.

SEC. 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 Development Mutual
fund shall be the primary provider of funds for long-term housing mortgages.

SEC. 5. Role of the DepEd. 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 avorooriate agency.


(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 off 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 an 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 (P3,000.00). The interest rate on the loan shall not be more
than twelve percent (12%) 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 rates 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 (P12,000,00) 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 (P120,000.00) 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 @ guarantee system fund for
Teacher's Housing Loans not exceeding One Hundred Fifty Thousand Pesos
(150,000.00) with an interest rate of not exceeding twelve percent (12 percent) 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 Programs 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

SEC. 7. Fiscal Incentives 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:

(2) 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:


(f) Exemption from donor's tax for lands certified by the local goverment units to
have been donated to teacher's housing purposes. Provided, that upon application for
exemption, the housing development pian shall have already been approved by the
appropriate government agencies concemed: 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 (I) after the approval of this Act

SEC. 8. Funding Source. The Government Service Insurance System and the
Home Development Mutual Fund shall contribute a total of Two Billion Pesos
(P2,000,000,000) 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 teachear'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 (PI,000,000,000)
annually for the continuous implementation of the Program,

SEC. 8. Appropriation. 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.

SEC. 10. Separability Clause. If for any reason, any provision of this Act is
declared invalid or unconstitutional, the remaining provisions not affected thereby shall
continue to be in full force and effect.

SEC. 11. Effectivity. This act shall take effect fifteen (15) days after its complete
publication in at least two (2) national newspapers of general circulation.

APPROVED.