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SIXTEENTH CONGRESS OF THE) 
REPUBLIC OF THE PHILIPPINES) 
First Regular Session 
SENATE 
SENATE BILL NO. 83G 
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'13 
JUL 17 
1\ 9 :05 
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INTRODUCEDBY SENATOR JOSEPH VICTOR G. EJERCrrO 
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EXPLANATORY NOTE 
The scarcity of affordable housing affects all sectors of s.ociety 
especially our public school teachers when an independent survey 
revealed that more than ninety thousand (90,000) public school 
teachers have no homes to can their own. 
Majority of these public school teachers cannot afford their own 
homes at market prices since they earn a gros8 monthly income of 
PIO,OOO 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 a housing program for teachers by 
providing funds through loans at affordable interest and long-term 
repayment period, which ollr teachers can use 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 incen ti ves. 
In view of the foregoing, the passage of this bill is earnestly 
sought. 
, 
G"~ 
JOSEPH VICTOR G. EJERCITO 


SIXTEENTH CONGRESS OF THE) 
REPUBLIC OF THE PHILIPPINES ) 
First Regu.lar Session 
'13 
JUL 17 
1\ ~l :05 
SENATE 
SENATF~ BILL NO . 
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INTRODUCEDBYSENATOR ,JOSEPH VICTOR G. EJERClTO 
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AN ACT TO PROVIDE FOR A HOUSING PROGRAM FOR TEACHERS 
Be it enacted by the Senate and Hou.se of Representatives of the 
Philippines in Congress assembled: 
SECTION 1. 
TItle,This Act shall be known as the "Teo.cher's 
Housing Progl'am." 
SEC. 2.Dedara.tion 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 
Agen.cies. 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: 
I 
(a) 
The National Housing Authority shall undertal<e special 
housing projects for teachers. 
In 8ddition, it may also 
provide technical and other forms of assistance to private 
developers in the development of howling 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 Horne 
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 oj the DepEd.The Department of E;ducation shall 
undertake the implementation of the program among its teachcrs and 
shall ensure collection of amortization payment.s 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. 
SEC. 6.Program. Financing Schem.e. 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 off through 
public bidding or negotiated saJe; 
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 (1'3,000.00). 
The 
interest rate on the loan shall not be more tllan 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 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 (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 project.s exclusively for teachers and with a selling 
cost not exceeding One Hundred Twenty Thousand pesos 
(P120,OOO.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 
(IS%) 
of the 
early 
appropriation for the program shall be for developer 
ilnancing: 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 
(PlSO,OOO.OO) 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 Horne 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 tbis Act. 
SEC. 7.Fiscallnceniives for Private Sector' participation in 
Teacher'sHousing. Private sector developers who participate in the 
development of teacher's hOllsing shall be entitled to the following 
fiscal incentives: 
(a) 
Exemption from income taxes for bousing 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 docllmentation; 
(d) 
Exemption from value-added tax for the project concerned; 
(e) 
Exemption from transfer taxes for botb 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) after the approval of this Act. 
SEC. 8. Funding Source. The Government Service Insurance 
System and the Horne Development Mutual Fund shall contriLJute a 
total of Two Billion 
Pesos (P2,OOO,000,000.OO) 
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 t.eacher'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 (Pl,OOO,OOO,OOO.OO) annually f6r the 
continuous implementation of the Program. 
SEC. 9.Appl'opriation.. 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. 
SJ!:':C. lO.Separability. 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 ilfteen (15) days 
after its complete publication in at least two (2) national newspapers of 
general circulation. 
Approved,