Republic of the Philippines f ZIVER <
HOUSE OF REPRESENTATIVES — ee
Quezon City, Metro Manila 4 biter ry al

Shon

NI ENTH CONGRESS

First Regular Session

HOUSE BILL NO. 203 o

Introduced by Representative Ivan Howard Guintu

EXPLANATORY NOTE

Affordable housing affects all sectors of society, especially public school
teachers. A stable housing program for public school teachers provided by the State
would ease the burden on our educators and improve their living conditions. Adequate
and decent housing for teachers is fitting to honor their service of educating the next
generation of citizens to be productive members of society.

The proposed bill will institute a housing program for teachers by providing
funds through loans at affordable interest rates and long-term repayment period. 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.

GUINTU
We, Pinuno Partylist


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

NINETEENTH CONGRE.
First Regular Session

uovse BiLLNO. 2030

Introduced by Representative Ivan Howard Guintu

AN ACT
TO PROVIDE A HOUSING PROGRAM FOR TEACHERS

Re it enacted by the Senute and the House of Representatives of the Philippines in
Congress assembled:

SECTION 1. Short Title, - This Act shall be known as the “Teacher's Housing
Program.

SEC. 2. Declaration of Policy. — \t 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 strengthen, promote, and
support the component activities of housing production and finance in 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 (Depld) with a permanent status,

SEC. 4. Role of Government Housing and Financing Agencies. 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 Department of Education, ‘Whe 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

sue and collect the necessary

(a) Create a Teacher's Housing Secretariat which shall i
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 Scheme. \n 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:

ii, housing assets being disposed of through public bidding or negotiated

sales:

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:

Home improvement or any alternation in an evisting 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 ona net take home
pay which shall not he 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

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 exctusively for
teachers, may avail ofa financing loa ty 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.

not exceedi

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 he 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:

a. Exemption from income taxes for housing projects exclusively dedicated for teachers;

b. Exemption fom capital gains tax on housing projects exclusively dedicated for
teachers,

¢. Exemption from documentary stamp tax for all project related documentation:

4d. Exemption from value-added tax for the project concerned:

¢. Exemption from transfer taxes for both raw and completed projects; and

{. 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 Department of Human Settlements
and Urban Development. 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 Sys
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 investable funds for long-term teacher's housing mortgages
and shal! 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.

SEC, 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.

SEC. 10. §
term of this Act is held invalid or unconstitutional, such parts not affected by such declaration

-parability Clause. \f. for any reason, any section, subsection. clause or

shall remain in full force and effect

SEC. 11. Repealing Clause. — Ail existing laws, orders, decrees. rules and regulations,
or parts thereof, inconsistent with the provisions of this Act are hereby amended, modified or
repealed accordingly.

~ This Act shall take effect fifteen (15) days after its publication
in the Official Gazette or in a newspaper of general circulation.

Approved,