Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City, Manila 
TWENTIETH CONGRESS 
First Regular Session 
HOUSE BILL NO. 3392 
Introduced by Representative Ma. Victoria Co-Pilar 
EXPLANATORY NOTE 
This measure entitled “Enhanced National Shelter Program Act” proposes a 
comprehensive, whole-of-government approach to human settlements and urban 
development. By institutionalizing a centerpiece housing program, strengthening the 
financial ecosystem, providing direct support to beneficiaries, offering tax exemptions, 
and streamlining processes, the measure seeks to significantly accelerate housing 
production and address the country’s housing backlog. The bill is a vital step toward 
ensuring that all Filipino families have access to a safe, adequate, and affordable home. 
The proposed measure tackles the housing backlog through several key strategies: 
Institutionalizing the 4PH Program: The Pambansang Pabahay Para sa Pilipino (4PH) 
Program is declared the centerpiece of the Enhanced National Shelter Program and is 
institutionalized to provide direct housing assistance to low- and middle-income families. 
The program will involve partnerships between the Department of Human Settlements 
and Urban Development (DHSUD), its attached agencies, and local government units 
(LGUs) to build socialized housing on LGU-owned land. LGUs can secure development 
loans from the Home Development Mutual Fund (HDMF) and other Government 
Financial Institutions (GFIs) or enter into joint ventures with private developers to co-
finance construction. Private developers can also participate by developing private lands 
in collaboration with LGUs and National Government Agencies (NGAs). 
Promoting a Robust Housing Finance Market: The bill aims to revitalize the housing 
finance ecosystem to support the increased housing production. The National Home 
Mortgage Finance Corporation (NHMFC) is mandated to expand its operations for the 
purchase and securitization of housing loans to enhance the stability and growth of the 
housing finance market. To support this, the authorized capital stock of the NHMFC will 
be increased from P5.5 billion to P50 billion, to be fully subscribed by the Government of 
the Republic of the Philippines. The measure also establishes a Housing Guarantee 
System, where the Philippine Guarantee Corporation (PHILGUARANTEE) can cover 
bonds and Asset-backed Securities (ABS) originated by the NHMFC and LGUs. 
Providing Housing Support and Financial Literacy: To ensure housing remains 
affordable, the DHSUD will provide amortization support to end-user finance providers 
for buyer-beneficiaries, using funds from the General Appropriations Act (GAA). The 
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interest subsidy per beneficiary will not exceed 5%, with the beneficiary paying at least 
1%. Additional financial assistance, such as mortgage redemption insurance, fire 
insurance, and time-limited rental subsidies, may be applied for beneficiaries in the 
bottom 30% income decile. To improve beneficiaries' creditworthiness, the DHSUD and 
Key Shelter Agencies (KSAs) will also implement a housing-related financial literacy 
program. 
Exemptions from Taxes and Regulatory Fees: To further improve housing 
affordability, projects under the 4PH Program and other socialized housing projects will 
be exempt from various taxes and fees. These include income tax, real property tax, value 
added tax, capital gains tax, and building permit fees. Lands for development under the 
4PH Program will also be exempt from documentary stamp tax, transfer tax, and 
registration fees. 
Streamlining and Land Identification: The bill mandates the establishment of "Green 
Lanes" within concerned NGAs and LGUs to expedite and streamline the process for 
housing-related permits, clearances, and licenses. Furthermore, the DHSUD is tasked 
with identifying national and local government lands suitable for housing development. 
All government departments and LGUs are required to submit an inventory of their 
owned lands to the DHSUD within ninety days of the act's enactment. Lands identified 
and designated for housing will be transferred to the DHSUD for administration and 
immediate development. 
By enhancing the National Shelter Program and strengthening the housing finance 
ecosystem, the state intends to create an environment where both public and private 
sectors can work together to increase and accelerate housing production. 
In view of the foregoing, the passage of this bill is earnestly sought. 


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City, Manila 
TWENTIETH CONGRESS 
First Regular Session 
HOUSE BILL NO. 3392 
Introduced by Representative Ma. Victoria Co-Pilar 
AN ACT 
ENHANCING 
THE 
NATIONAL 
SHELTER 
PROGRAM, 
REVITALIZING 
AND 
STRENGTHENING THE HOUSING FINANCE ECOSYSTEM, APPROPRIATING FUNDS 
THEREFOR 
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 NHMFC 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 groups 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.