Republic of the Philippines

Bouse of Representatives

Queson City, Metro Manila

Twentieth Congress
First Regular Session

20

HOUSE BILL NO.

Introduced by Representatives Ferdinand Martin G. Romualdez,
Andrew Julian K. Romualdez and Jude A. Acidre

EXPLANATORY NOTE

Article XIII, Section 9 of the 1987 Philippine Constitution provides that "The
State shall, by law, and for the common good, undertake, in cooperation with the
private 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." This constitutional mandate recognizes
housing as a fundamental human right and a cornerstone of social and economic
development. Yet, millions of Filipino families continue to struggle with
inadequate, unsafe, or unaffordable shelter. Recognizing the critical role of
housing in national development, this proposed measure seeks to enhance the
government's capability to provide sustainable, affordable, and inclusive housing
for all Filipinos—especially low- and middle-income families.

The Enhanced National Shelter Program Act institutionalizes and strengthens
existing housing programs and introduces critical reforms across the housing
finance ecosystem. Central to this bill is the Pambansang Pabahay Para sa
Pilipino (4PH) Program, the flagship housing initiative of the government. The
4PH Program focuses on delivering targeted housing assistance through direct
construction efforts, amortization support, and strategic public-private
partnerships

The bill mandates the Department of Human Settlements and Urban
Development (DHSUD) to implement a unified and integrated shelter program,
covering a wide array of programs of the key shelter agencies, including local
government unit led housing and the optimization of the use and productivity of



land and urban resources. The bill also establishes a housing guarantee system to
enhance the financing of human settlement projects.

To address systemic inefficiencies and optimize land utilization, the bill requires
all national agencies and LGUs to submit a comprehensive inventory of idle or
unused government-owned lands. These identified parcels may then be
transferred to DHSUD for housing development purposes,

Furthermore, the proposed measure emphasizes tax and fee exemptions for
housing-related projects to improve affordability, accelerates permit and license
processing through green lanes, and increases the capitalization of the National
Home Mortgage Finance Corporation to improve its leveraging and lending
capacity.

This proposed legislation envisions a responsive and inclusive national housing
framework that upholds human dignity, strengthens communities, and contributes
to long-term socioeconomic growth.

We acknowledge Representatives Ivan Howard A. Guintu, Joseph Gilbert F
Violago, Josephine Veronique “Jaye” R. Lacson-Noel, Aniela Bianca D.
Tolentino, Gus S. Tambunting, Juan Carlos “Arjo” C. Atayde, Patrick Michael
D. Vargas, Florida “Rida” P. Robes, Albert S. Garcia, Luis Raymond “Lray” F
Villafuerte, Jr., Ma. Victoria Co-Pilar, Ralph Wendel P. Tulfo, Jocelyn P. Tulfo,
and Erwin T. Tulfo for filing similar proposed measures to strengthen existing
housing programs and housing finance ecosystem during the 19" Congress.

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

ing Chl G. ROMUALDEZ

JUDE 44 ACIDRE ANDREW JULIAN K. ROMUALDEZ


Republic of the Philippines

Bouse of Representatives

Quezon City, Meteo Manila

Twentieth Congress
First Regular Session

HOUSE BILL NO. 20

Introduced by Representatives Ferdinand Martin G. Romualdez,
Andrew Julian K. Romualdez and Jude A. Acidre

AN ACT
ENHANCING THE NATIONAL SHELTER PROGRAM,
REVITALIZING AND STRENGTHENING THE HOUSING FINANCE
ECOSYSTEM, APPROPRIATING FUNDS THEREFOR

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 “Enhanced
National Shelter Program Act.”

SEC. 2. Declaration of Policy. — The State hereby recognizes that access
to adequate, safe and affordable housing enhances quality of life and contributes
to the wellbeing of the community. It is hereby declared a policy of the State to
create an enabling environment for the public and private sectors, to, jointly or
separately, increase and accelerate housing production to address the housing
needs of Filipino families. Accordingly, the State hereby adopts the following
policies:

(a) Develop a diverse range of housing products and tenure options according
to the specific needs and financial means of targeted market segments;

(b)Implement system integration of housing programs to enhance efficiency
and optimize resource allocation;


(c) Encourage and enhance private sector participation in capital investment
in public housing;

(d)Promote and support a robust housing finance market;
(e)Enhance the stability of the housing finance market by implementing
comprehensive financial risk management strategies to mitigate risk and

reduce borrowing cost;

(f) Integrate principles of social inclusion, sustainability, and climate
resilience in the design of public housing; and

(g)Implement a whole of government approach in human settlements and
urban development.

SEC. 3. Enhanced National Shelter Program. —The Department of

Human Settlements and Urban Development (DHSUD) is hereby mandated to
implement a comprehensive program to provide targeted housing assistance,
either direct or indirect, to low-income and middle-income families, hereinafter
referred to as the Enhanced National Shelter Program. The DHSUD shall adopt
an integrated and unified approach in implementing the Enhanced National
Shelter Program. The Enhanced National Shelter Program shall include the
following components:

(a)Pambansang Pabahay Para sa Pilipino (4PH) Program. — The 4PH, as
administered by the DHSUD, is hereby institutionalized and declared as
the centerpiece program of the Enhanced National Shelter Program. The
4PH shall provide direct housing assistance to low-income and middle-
income families. The DHSUD and its attached agencies shall partner with
local government units (LGUs) to undertake the construction of socialized
housing in LGU-owned lands and the allocation thereof to qualified
beneficiaries. LGUs may obtain development loans from the Home
Development Mutual Fund (HDMF) and other Government Financial
Institutions (GFIs), or enter into a joint venture with a property developer
to co-finance the construction of housing units, in accordance with
applicable laws, rules and regulations. LGUs and National Government
Agencies (NGA) may also opt to enter into contracts with a private entity
through a Public-Private Partnership for the development of LGU-owned
or NGA-owned lands for housing.

Additionally, private developers or contractors may also participate in the
4PH program thru the development of private lands in collaboration with
LGUs and NGAs, subject to applicable rules and regulations. HDMF shall


provide mortgage financing to qualified beneficiaries, who shall be eligible
for amortization support and interest credit. Other financial institutions
may also provide mortgage financing to qualified beneficiaries, who shall
be eligible for amortization support and interest credit;

(b) Housing Programs. - The National Housing Authority (NHA) shall develop
and implement comprehensive shelter and human settlements programs for
underserved families: (1) upgrading of informal settlements program to
improve blighted urban areas including existing resettlement sites; (2)
production and disposition of shelter for underprivileged and homeless
including the provision of housing grants and socialized housing programs
pursuant to Republic Act No. 7279 or Urban Development and Housing
Act of 1992; and (3) resettlement of informal settler families affected by
government infrastructure and disasters;

(c)Community-led Financing - The Social Housing Finance Corporation
(SHFC) is hereby mandated to develop a modified Community Mortgage
Program (CMP) to promote community-led housing program wherein
organized community associations shall obtain mortgage financing from
SHFC for land acquisition, site development, and construction of
residential units which shall be awarded to member-beneficiaries of the
community for long-term lease with option to purchase. SHFC shall
continue to implement existing CMP modalities, high-density housing
program, and Abot-Kaya Pabahay Fund under Republic Act No. 6846;

(d)Credit Counseling and Financial Literacy Program. — The DHSUD and
Key Shelter Agencies (KSAs) shall implement a housing-related financial
literacy program to improve creditworthiness of beneficiaries; Provided,
That the credit information of beneficiaries shall be protected under
Republic Act No. 9510, otherwise known as “Credit Information System
Act”;

(e)Estate Management. — An Estate Management and Welfare Council
(EMWC) shall be created to ensure the sustainability of every government
housing program. The EMWC shall serve as an oversight body providing
policy recommendations concerning property management, operation and
maintenance of structures, communal spaces, and other facilities;

(f) Securitization Program. — The National Home Mortgage Finance
Corporation (NHMFC) is hereby mandated as the government’s secondary
mortgage institution to expand its operations for the purchase and
securitization of housing loans and such other assets with predictable cash
flow from public or private originators, financial institutions, and KSAs, to


support the growth and stability of the housing finance market. The
NHMEFC will implement strategic measures to expeditiously dispose of its
non-performing assets to enhance the performance of its asset portfolio;

(g)Guarantee System. — There is hereby established a Housing Guarantee
System wherein bonds originated by the NHMFC and LGUs, and Asset-
backed Securities (ABS) originated by the NHMFC and issued through a
Special Purpose Entity (SPE), may be covered by the Philippine Guarantee
Corporation (PHILGUARANTEE), in accordance with coverage limits
and eligibility criteria established by PHILGUARANTEE in collaboration
with the Department of Finance (DOF), and under such special preferential
guarantee rates and conditions, simplified requirements, and expedited
processes, agreed upon with NHMFC, as provided under Sections 3 (f) and
13 (h) of Republic Act No. 8763, enjoining the active participation of
LGUs in socialized housing programs through adequate measures for
housing development in their respective areas; and

(h)Housing Bonds. - KSAs and LGUs are hereby authorized to issue bonds
to finance their housing programs, subject to existing laws, rules, and
regulations.

SEC. 4. Targeting System. - The DHSUD and National Economic and
Development Authority (NEDA) shall establish eligibility requirements and a
standardized targeting system, utilizing income data of the Family Income and
Expenditure Survey (FIES), as basis for prioritizing of beneficiaries of programs
in the preceding Section to ensure that housing assistance is directed towards
families with the greatest need.

SEC. 5. Price Ceiling. — The DHSUD and NEDA shall jointly determine
the price ceiling for socialized, low cost or economic and middle-income housing,
in accordance with Section 23 of Republic Act No. 11201, by calculating land
and construction costs through price inflation analysis, using the previously
approved price ceiling as a baseline, and incorporating imputed rent based on
FIES and affordability as well as other methodologies that may be applicable.

SEC. 6. Housing Support. — The DHSUD shall, directly or through its
attached KSAs, 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 other
identified funding sources. LGUs are also encouraged to provide monthly
amortization support to buyer-beneficiaries of the units, if needed to enable the
latter to meet their monthly amortization obligations.


The interest subsidy per beneficiary shall not exceed 5%, and the remainder shall
be paid by the beneficiaries, provided that at no time shall the beneficiaries pay
interest amortization of less than 1%. For beneficiaries belonging to the bottom
30% income decile, the following additional financial assistance/subsidy may be
applied:

(a) Mortgage redemption insurance, fire insurance, and other property related
insurance;

(b)Real Estate Management Subsidy;

(c) Time-limited rental subsidies for the families provided that the households
availing the rental subsidy meet the following criteria: (a) they are in need
of temporary accommodations while awaiting their relocation/resettlement
to the 4PH housing units and (b) they do not have access to any similar
rental assistance program of the government.

SEC. 7. Additional Capitalization of NHMFC. — The authorized capital
stock of the NHMFC is hereby increased from P5,500,000,000.00 to
P50,000,000,000.00 to expand its leveraging capacity based on the volume of
mortgage loans and other financial receivables being serviced to improve its
profitability by reducing the average cost of its fund made available for its
programs.

The capital of the NHMFC shall be Fifty billion pesos (P50,000,000,000.00), to
be fully subscribed by the Government of the Republic of the Philippines,
hereafter referred to as the Government. Provided, That the increase in
capitalization shall be funded from a continuing annual appropriation under the
GAA, as well as, from all the declared dividends and tax payments of the NHMFC
in favor of the National Government and such other advances, funding, or
appropriations from the National Government as may be agreed upon between
the NHMFC and the DOF, until the above-mentioned amount of capitalization is
reached. For this purpose, any and all declared dividends and tax payments of the
NHMFC in favor of the National Government shall be deposited in a special
account in the General Fund, and earmarked for the payment of NHMFC’s
increase in capitalization.

SEC. 8. Exemption from Tax and Regulatory Fees. — To promote the
policy of improving housing affordability, projects under the 4PH Program, in
cooperation with LGUs, other socialized housing projects of SHFC and NHA,
and private sector participating in the housing programs shall also enjoy
exemptions from fees, charges, and taxes enumerated including but not limited to
the following: income tax, creditable withholding tax, real property tax, capital


gains tax, value added tax, donor’s tax, and other similar taxes; and building
permit fee, fire inspection permit fee, Environmental Compliance Certificate fees,
and other regulatory fees. Similarly, lands for development under the 4PH
Program shall be exempt from the payment of documentary stamp tax, transfer
tax, registration fees, including other fees required for the issuance of transfer
certificates of titles.

Additionally, the investors’ yield or income from any socialized housing or
economic housing-related bond or ABS originated by the NHMFC issued through
a Special Purpose Entity under the Securitization Act of 2004 shall be exempt
from income tax. All NHMFC issuances, transactions, and documents shall enjoy
tax, regulatory fees and other exemptions, incentives, and benefits granted under
the Securitization Act of 2004.

For this purpose, the DOF shall issue the appropriate revenue regulations,
exempting projects under the Enhanced National Shelter Program of DHSUD,
SHFC, NHA, and NHMFC within ninety (90) days of the approval of this Act.

SEC. 9. Identification of Lands for Housing and Human Settlement. —
The DHSUD shall, pursuant to applicable laws and executive issuances, identify
national and local government lands that are suitable for housing development,
particularly for housing production programs enumerated in Section 4 of this Act,
and including new townships and estates development, in coordination with
concerned NGAs and LGUs, and undertake the required activities to develop the
same in an efficient manner.

The DHSUD shall likewise identify available public lands and shall exercise
exclusive jurisdiction on the management and disposition of all lands of the
public domain suitable for human settlements. DHSUD shall be responsible for
the classification, sub-classification, surveying and titling of lands in consultation
with appropriate agencies, and recommend to the President, the issuance of
proclamations declaring said public land as alienable and disposable, and
reserving the same for housing and human settlement purposes, subject to
existing laws, rules and regulations.

For purposes of site selection, DHSUD shall ensure that protected lands under
special laws such as Republic Act No. 8371, Republic Act No. 8435, Republic
Act No. 6657, and other agrarian reform laws, shall be preserved for equally
important land uses.

SEC. 10. Mandatory Submission of Land Inventory by NGAs and LGUs.
— The National Government departments, agencies, and instrumentalities,
including Government Owned- and Controlled Corporations (GOCCs) and their


subsidiaries, as well as LGUs, shall conduct an inventory of the lands that they
own and administer, and submit the complete list to the DHSUD within ninety
(90) calendar days from the enactment of this Act and to be updated every three
(3) years thereafter.

The inventory of lands shall include government-owned idle lands or lands that
have not been used for the purpose for which they have been originally reserved
or set aside for at least ten (10) years, and on which no improvements have been
made by the owner as certified by the concerned LGU, except lands owned by
GOCCs and government financial institutions engaged in shelter financing as part
of its fiduciary obligation to its members and/or are taken possession of in their
ordinary conduct of business, pursuant to Section 8 of Republic Act (RA) No.
7279, as amended, and Sections 5 and 24 of RA No. 11201.

The Land Registration Authority (LRA) shall assist these agencies in the
preparation of their respective inventories by providing a list of titles and the
corresponding certified true copies thereof that are registered in the name of said
agencies.

SEC 11. Acquisition and Development of Identified Lands. — Lands
identified and designated for Housing and Urban and Rural Development,
pursuant to Section 24 of Republic Act No. 11201, shall be assessed by the
Department for program or project feasibility. Should the site evaluation be in the
affirmative, said lots shall forthwith be transferred to DHSUD for administration.

DHSUD shall acquire ownership and/or administration of the identified lands of
concerned agencies, for housing and human settlement purposes, and shall carry
out the immediate development of the aforementioned lands.

The LRA shall cancel the titles of identified lands registered in the name of
concerned agencies, and re-issue new titles in the name of the DHSUD, subject
to relevant provisions of Presidential Decree No. 1529 or the “Property
Registration Decree.”

Lands identified and acquired by the DHSUD under the 4PH program shall be
automatically converted or reclassified, in order to facilitate its immediate
development.

SEC. 12. Green Lanes for Housing-Related Permits, Clearances, and
Licenses. - The concerned NGAs, including their regional and provincial offices
when applicable, and LGUs shall establish or designate, whichever is applicable,
a Green Lane within their offices in charge of expediting and streamlining the
processes and requirements for the issuance of housing-related permits,


clearances, and licenses, including but not limited to: Environmental Compliance
Certificate (ECC) or Certificate of Non-coverage (CNC) duly issued by the
Department of Environment and Natural Resources, whichever is applicable;
Certified true copy of Department of Agrarian Reform conversion order (if
applicable); Permit to drill from NWRB; and, Approved Technical Plans. The
said Green Lanes shall be integrated and not be duplicative of the Housing One-
Stop Processing Centers (HOPCs) established under Republic Act No. 11201.

For this purpose, the above agencies or offices shall designate an account officer
for the Green Lane who shall be responsible for coordinating with the relevant
government offices or agencies in streamlining and simplifying permitting and
licensing processes, and recommending modifications or amendments to existing
procedures that are outdated, redundant, and adds undue regulatory burden and
cost to the transacting public, in coordination with the Anti-Red Tape Authority
(ARTA).

ARTA, together with the appropriate agencies, shall issue the implementing rules
and regulations for this provision not later than ninety (90) days from the approval
of this Act.

Permits, licenses, and clearances not acted upon within seven (7) days upon
submission shall complete requirements shall be deemed approved.

SEC. 13. Simplification and Streamlining of NHMFC’s Securitization.
— The NHMFC and all regulatory or oversight agencies involved in or affecting
the expeditious accomplishment of the NHMFC’s securitization and related
mandates and functions shall, in coordination with the ARTA, agree upon and
jointly establish and implement simplified and streamlined requirements and
processes, to facilitate and expedite the NHMFC’s securitization and provision
of liquidity to the housing sector.

SEC. 14. System Evaluation. — The DHSUD shall be the lead agency
responsible for monitoring and evaluating the performance of the component
programs of the Enhanced National Shelter Program. In relation to this mandate,
the DHSUD shall monitor and analyze conditions in the housing ecosystem that
impact supply and affordability, including demographic change, economic
conditions, credit market conditions, taxation, macro-prudential regulation,
zoning regulation, and climate change impacts, and, based on this analysis, shall
recommend enhancements or modifications to housing programs.

SEC. 15. Implementing Rules and Regulations. ~ The DHSUD, in
coordination with other concerned agencies, shall prepare and issue the
Implementing Rules and Regulations (IRR) within ninety (90) days upon the


effectivity of this Act, in addition to the other IRRs to be issued by Bureau of
Internal Revenue and ARTA in accordance with this Act.

SEC. 16. Appropriations. - The funds necessary for the implementation
of this Act shall be charged against current and available appropriations of
concerned agencies, subject to pertinent budgeting, accounting, and auditing
laws, rules and regulations. Thereafter, the funding requirements for succeeding
years shall be included in the annual GAA, subject to the usual budget preparation
process.

SEC. 17. Oversight Committee. - There is hereby created a Joint
Congressional Committee to oversee the implementation of this Act. The
Committee shall be composed of the Chairperson of the Senate Committee on
Urban Planning, Housing and Resettlement and four (4) members thereof
appointed by the Senate President and the Chairperson of the House Committee
on Housing and Urban Development and four (4) members thereof to be
appointed by the Speaker of the House of Representatives. The minority sroups
in the Senate and the House of Representatives shall each have one seat in the
Joint Congressional Committee. The DHSUD shall submit annually to the Joint
Congressional Committee a detailed report on the implementation of this Act.

SEC. 18. 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. 19. Repealing Clause. — Sections 3, 4, 5 and 8 of Presidential Decree
No. 1267, (NHMFC) all laws, executive orders, proclamations, rules, regulations,
and other issuances or parts thereof which are inconsistent with the provisions of
this Act are hereby amended or modified accordingly.

SEC. 20. Effectivity. — This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in any newspaper of general circulation.