Republic of the Philippines 
House of Representatives 
Quezon City, Metro Manila 
NINETEENTH CONGRESS 
First Regular Session 
House Bill No. _______ 
INTRODUCED BY REP. PM VARGAS 
AN ACT 
TO PROVIDE A HOUSING PROGRAM FOR TEACHERS 
EXPLANATORY NOTE 
Teaching is the profession that creates all other professions. Teachers’ 
influence and knowledge shape the lives of their students and hone them to 
become productive members of society. But while teachers are genuinely 
fulfilled in their practice, they also struggle with the financial limitations of 
their career. 
Teaching has the reputation for being an underpaid and unrewarding 
profession. Many teachers cannot afford to purchase a home that they can 
call their own. Thus, it is only fitting that we reward teachers to honor their 
service to Filipino students and the nation. 
This bill seeks to establish a housing program for educators. It directs 
government housing and financing agencies to undertake special housing 
projects and provide housing funds for teachers. It also provides fiscal 
incentives for private sector developers who will participate in the 
implementation and development of the teachers’ housing program. 
Education is one of the best investments our country can put in. 
Quality education creates jobs, breaks the cycle of poverty, and helps us 
achieve national development. A great nation requires a highly competitive 
education system, which in turn requires world class and passionate 
teachers. 
August 24, 2022
8:00 am
4075


Through a housing program for teachers, we are helping Filipino 
educators to upgrade their living conditions, strengthen their dignity, and 
boost their morale and self-esteem. If approved, this proposal will help 
dissuade competent teachers from leaving our country to seek greener 
pastures abroad.  
In view of the foregoing, the immediate passage of this bill is earnestly 
sought. 
REP. PM VARGAS 
Fifth District, Quezon City 


Republic of the Philippines 
House of Representatives 
Quezon City, Metro Manila 
NINETEENTH CONGRESS 
First Regular Session 
House Bill No. _______ 
INTRODUCED BY REP. PM VARGAS 
AN ACT 
TO PROVIDE A HOUSING PROGRAM FOR TEACHERS 
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 “Housing Program 
for Teachers 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 Program shall cover the teachers of the 
Department of Education (DepEd) with a permanent status. 
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;
4075


 
 
(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. 
 
SECTION 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 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 purposes: 
 
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 sales; 


 
 
3. Purchase of a fully developed lot within a residential area; 
4. Construction of completing of a residential unit on a lot 
owned by the beneficiary; 
5. Home improvement or any alternation 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 (125) 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 earnings less than Twelve 
Thousand Pesos (P12,000.00) per month shall not be less than 
sixty percent (60%) of all available funds allotted to 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 a guarantee 
system fund for Teacher’s Housing Loans not exceeding One 
Hundred Fifty Thousand Pesos (P150,000.00) 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 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. 
 
SECTION 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: 
 
(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) after the 
approval of this Act. 
 
SECTION 8. Funding Source. – The Government Service Insurance System 
and the Home Development Mutual Fund shall contribute a total of Two 
Billion Pesos (P2,000,000,000.00) 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 (P1,000,000,000.00) annually 
for the continuous implementation of the Program. 
 
SECTION 9. Appropriation. – The amount necessary to carry out the 
purpose of this Act shall be included in the General Appropriations Act of the 
year following its enactment into law and every year thereafter. 
 
SECTION 10. Repealing Clause. – All laws, decrees, orders, rules and 
regulations, or other issuances or parts thereof inconsistent with the 
provisions of this Act are hereby repealed or modified accordingly. 
 
SECTION 11. Separability Clause. – If any portion or provision of this Act 
is declared unconstitutional, the remainder of this Act or any provision not 
affected thereby shall remain in force and effect. 
 
SECTION 12. Effectivity. – This Act shall take effect fifteen (15) days after 
its publication either in the Official Gazette or in a newspaper of general 
circulation in the Philippines. 
 
Approved,