Seventeenth Congress
First Regular Session

3738
HOUSE BILL NO.

Introduced by Honorable Rodante D. Marcoleta

EXPLANATORY NOTE

Section 9, Article XIII of the 1987 Constitution provides, “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 in urban centers and resettlement area. xx x.”

For the underprivileged, housing is variously a place on a city pavement, a part of
a room in a dilapidated tenement, a hut in a slum, or a small illegal structure on land
suited to squatter resettlement and encroachment.

As an option for eradicating homelessness, this bill seeks to establish a self-help
homebuilding mechanism to be known as the “Bayanihan Homebuilding Program”.
Under this program, qualified beneficiaries and volunteers will be directly involved in the
construction of their homes. Like the bayanihan concept, beneficiaries and volunteers
will render hours of labor as part of their investment. Since the construction of houses
will cost less to build, the savings will go to monthly amortization of payments.

Another feature of the proposed measure is to give eligible beneficiaries an option
to avail of the Graduated Amortization Payment (GAP) Scheme subject to the guidelines
of the financial institutions concerned. Under the GAP Scheme, principal payments of the
principal obligation are deferred on the first few years of the loan to help beneficiaries,
This is to ease the predicament of homebuyers who are unable to cope with meager
financial resources when availing of a housing loan.

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

—RODANTE D. MARCOLETA


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

Seventeenth Congress
First Regular Session

HOUSE BILL No.3 788

Introduced by Honorable Rodante D. Marcoleta

AN ACT
ESTABLISHING A BAYANIHAN HOMEBUILDING PROGRAM FOR
LOW INCOME GROUPS THROUGH GRADUATED AMORTIZATION
PAYMENT (GAP) SCHEME AND FOR OTHER PURPOSES

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

SECTION 1. Title. - This Act shall be known as the “Bayanihan
Homebuilding Program Act of 2016.”

SEC. 2. Declaration of Policy. — It is hereby declared the policy of
the State to promote the national shelter program and to implement a continuing
program of socialized housing which will make available, at affordable cost,
decent housing and basic services to low-income families in urban centers and
rural areas. Towards this end, a self-help homebuilding mechanism, the Bayanihan
Homebuilding Program, shall be established.

SEC.3. Objectives. — The objectives of this Act shall be as follows:


a)

b)

©)

dq)

SEC.4.

a)

Enhance the capability of low-income groups to acquire decent
and low-cost housing units through the introduction of self-help
homebuilding mechanisms and facilities which will render
affordable such acquisitions;

Eradicate homelessness and poverty housing by means of
constructing simple, decent and affordable housing for low-
income families;

Enjoin the active participation of local government units and
encourage people’s effective participation in the development
process of socialized housing programs through adequate
measures for house construction in their respective areas;

Serve the housing requirement of the underprivileged and those
gainfully employed, and the members of the funding agencies
such as the Government Service Insurance System (GSIS), Social
Security System (SSS), and Home Development Mutual Fund
(HDMF/PAG-IBIG).

Definition of Terms. — As used in this Act, the following

terms shall mean:

“Affordable cost” refers to the most reasonable price of land and
shelter based on the needs and financial capability of Bayanihan
Homebuilding Program beneficiaries and appropriate financing

scheme.


b) “Graduated Amortization Payment” refers to the mode of
payment wherein principal payments are deferred on the first few
years of the term of the loan and designed to enhance the
affordability to the beneficiary through a mechanism of
increasing monthly amortization over term of the loan.

)

“Socialized housing” refers to housing program and projects
covering houses and lots or home lots only undertaken by the
government or the private sector for the underprivileged and
homeless citizens which shall include sites and services
development, long term financing, liberalized terms on interest
payments and such other benefits in accordance with the
provisions of this Act.

d

“Slum or blighted area” refers to any area where dwellings
predominate which, by reason of dilapidation, overcrowding,
faulty arrangement or design, lack of ventilation, light or
sanitation facilities, or any combination of these factors, are
detrimental to safety, health or morals.

e

“Bayanihan Homebuilding” refers to the cooperative endeavor of
volunteers and qualified beneficiaries of this Act to invest time
and labor for the construction of their simple, decent and

affordable homes.


f) “Underprivileged and homeless citizens” refers to beneficiaries
of this Act and to individuals or families in urban and
urbanizable areas whose income or combined household income
falls within the poverty threshold as defined by the National
Economic and Development Authority, and who do not own their
homes. This shall include those who live in makeshift dwelling
units and do not enjoy security of tenure.

SEC.5. Eligibility Criteria for Bayanihan Homebuilding Program
Beneficiaries. — To qualify for the Bayanihan Homebuilding Program, a
beneficiary:

a) Must be a Filipino citizen:

b) Must be an underprivileged and homeless citizen, as defined in
Section 4 (f) of this Act, or if gainfully employed, must be a
member of the SSS, GSIS, or HDMF/PAG-IBIG, who applies
for a socialized housing loan not exceeding One Hundred Eighty
Thousand pesos (P180,000.00);

c) Must not own any real property, whether in the urban or rural
areas;

d) Must not be a professional squatter or a member of a squatting
syndicate; and

e) Must render at least 400 hours of volunteer labor for the

construction of his own house.


SEC.6. Registration of Bayanihan Homebuilding Program
Beneficiaries. - The Housing and Urban Development Coordinating Council
(HUDCC), in coordination with the local government units, shall design a system
for the registration of qualified Bayanihan Homebuilding Program beneficiaries.

The local government units, within one (1) year from the effectivity of this
Act, shall identify and register all beneficiaries within their respective localities.

SEC.7. Participation of Volunteers. — Volunteers who are willing to
render community service in the construction of homes for beneficiaries under this
Act may participate and register in the Bayanihan Homebuilding Program subject
to the requirements set by the local government units concerned within their
respective localities.

SEC.8. Graduated Amortization Payment (GAP) Scheme. -All duly
accredited government financial institutions granting socialized housing loans to
eligible Bayanihan Homebuilding Program beneficiaries shall adopt and
implement the graduated amortization payment as the mode of payment for such
loans.

The graduated increase in the amortization payment over the term of the
loan shall be computed in accordance with the following conditions subject to the
guidelines of duly accredited government financial institutions:

1) The initial payment of amortizations shall be made within thirty

(3) days upon occupancy of the home unit;


2) The monthly amortization payments for the first ten (10) years
Shall be fixed at a minimum of Five hundred pesos (P500.00);

3) The graduated increase in the amortization payment not
exceeding Two hundred fifly pesos (P250.00) shall commence on
the eleventh year and every three (3) years thereafter;

4) The amortization payments shall not exceed forty percent (40%)
of the borrower's net disposable income. For this purpose, the net
disposable income shall be defined as the gross verifiable
monthly income less statutory deductions and amortizations of
outstanding loan obligations. The monthly income shall be based
on the income tax return(s) (ITR) with W-2 Form(s) duly
received by the Bureau of Intemal Revenue (BIR) or other
documents acceptable to duly accredited government financial
institutions.

SEC.9. Loan Period. — The loan period shall not be more than thirty-

five (35) years and shall be shortened correspondingly to the difference

between the age of the borrower at the time of loan approval and retirement

age.

SEC.10. Interest Rate. — The government financial institutions (GFIs)
shall charge the borrowers a fixed rate of nine percent (9%) per annum for the

term of the loan.


SEC. 11. Agency Responsibilities. - Anent the implementation of the
Bayanihan Homebuilding Program, and subject to the limitations and requirements
of their respective charters and other existing laws, and without impairing their
financial or required reserve positions, the following agencies are directed as
follows:

a) National Housing Authority (NHA). - The NHA shall be the
government agency engaged in direct shelter production. It shall focus
its efforts in providing housing assistance to the lowest 30% of urban
income-earners through slum upgrading, squatter __ relocation,
development of sites and services, and construction of core-housing
units. In addition, it shall formulate the mechanism for the participation
of the registered Bayanihan Homebuilding Program beneficiaries and
volunteers in the construction and building of their home units. Further,
it shall promote the use of indigenous, alternative and low cost
construction materials and technologies for socialized housing.

b) Home Development Mutual Funds (HDMF/PAG-IBIG). — The
HDMF/PAG-IBIG shall administer provident fund contributions
collected from member employees and employers, utilizing funds not
required for provident benefits for housing loans for members, and, in
addition, will be charged with the development of saving schemes for

home acquisition.


Bayanihan Homebuilding Program at the local government level.
SEC.12. Implementing Rules and Regulations. — The Chairman of the

HUDCC in coordination with the NHA, HDMF/PAG-IBIG and DILG shall
promulgate rules and regulations necessary for the implementation of this Act.

SEC.13. Separability Clause. — If any part or provision of this Act
shall be held invalid or unconstitutional, other parts or provisions hereof which are
not affected thereby shall continue in full force and effect

SEC.14. Repealing Cause. — Any law, decree, rule and regulation,
executive order or part thereof inconsistent with this Act is hereby repealed or
modified accordingly.

SEC.15. Effectivity Clause. — This Act shall take effect fifteen (15)
days after its publication in at least two (2) newspapers of general circulation in

the Philippines.

Approved,