Senate Office of the Secretatp TWENTIETH CONGRESS OF THE ) REPUBLIC OF THE PHILIPPINES First Regular Session 25 OCT 22 P1:21 SENATE 1458 RECEIVED BY: S. No. _ Introduced by SENATOR CAMILLE A. VILLAR AN ACT ORDAINING A NATIONAL POLICY OF FREE HOUSING THROUGH USUFRUCT, AND APPROPRIATING FUNDS THEREFOR EXPLANATORY NOTE Under the 1987 Philippine Constitution, the State shall, by law, and for the common good, undertake, in cooperation with the public 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 resettlements areas. 1 This bill seeks to mandate a policy that institute programs aimed at providing its people free access to housing through a usufruct or free use of government housing property, subject to certain qualifications of the beneficiary. Only underprivileged and homeless Filipinos without known ownership of any real property anywhere in the country may be beneficiaries of the free housing through the usufruct program. However, local government units (LGUs) and other government agencies may extend the benefit to qualified personnel as part of its employee housing program provided that the beneficiary does not own any real property within the territory of the LGU of employment. Should this bill be enacted into law, it will also complement the government's efforts in managing the housing backlog, which if not arrested could reach 22 million units by 2040.2 1 Section 9, Article XIII, 1987 Constitution 2 https://unhabitat.org/sites/default/files/2023/06/5._un- habitat_philippines_country_report_2023_final_compressed.pdf ]
In view of the foregoing, I humbly request the swift passage of this bill. umeecnua CAMILLE A. VILLAI
Sentate Office of the Secretary TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES ) First Regular Session ) 25 OCT 22 P1:21 SENATE RECEIVED BY: 1458 S. No. - Introduced by SENATOR CAMILLE A. VILLAR AN ACT ORDAINING A NATIONAL POLICY OF FREE HOUSING THROUGH USUFRUCT, AND 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 "Free Housing
Usufruct Act.
SEC 2. Statement of Policy. The State shall undertake, in cooperation with
5 the public sector, a continuing program of urban land reform and housing which will 6 make available at affordable cost decent housing and basic services to underprivileged and homeless citizens in urban centers and resettlements areas. As part of its mandate to promote a just and dynamic social order, it is also the policy of the State to institute programs aimed at pursuing avenues that would make housing free to its citizens in need.
SEC 3. Free Housing Through Usufruct Program. The National Housing
Authority (NHA), Local Government Units (LGU) and other government agencies engaged in the National Shelter Program, in implementing their housing programs, shall as far as practicable, distribute housing units to qualified beneficiaries for free through contracts of usufruct.
The NHA, LGU or other government agencies engaged in housing or implementing housing projects, as owner, shall retain ownership of title to the housing 3 unit, and the beneficiary, as usufructuary, shall be allowed to enjoy the use of the property.
SEC 4. Qualified Beneficiaries. Only underprivileged and homeless Filipinos
without known ownership of any real property anywhere in the country may qualify as beneficiaries of the free housing through usufruct program. However, LGUs and other government agencies may extend the benefit to qualified personnel as part of its employee housing program.
SEC 5. Inclusions of the Usufruct. Usufruct, as defined and understood
13 under the law, shall include the right to the enjoyment and use of the property. 14 Charges for utilities such as electricity, water and communication shall be for the 15 account of the beneficiary, unless otherwise provided for in the usufruct contract.
SEC 6. Period of Usufruct. The beneficiary shall continue to enjoy the use of
the property until disqualified under this Act. In the event of death of the beneficiary, the immediate family, which includes the spouse, children and parents living with the beneficiary, shall have priority to take over the usufruct provided that the immediate family is qualified under this Act.
SEC 7. Prohibitions on the Usufruct. The beneficiary shall not lease, rent,
sell or in any other manner transfer possession of the property under usufruct nor shall it be allowed to be used in whatever manner by any person other than the beneficiary or his immediate family which includes the spouse, children and parents living with the beneficiary. Further, the property shall only be used by the beneficiary or his immediate family for residential purposes. Violation of these prohibitions shall result in the immediate forfeiture of the usufruct and constitute disqualification of the violator and his immediate family as beneficiary of any housing program of the government.
SEC 8. Financing, Ownership and Management. The NHA shall provide
financial and technical assistance to the LGUs in the implementation of the program. 3 Regardless of ownership of title to the properties subject of the program, the LGU 4 where the housing project is located shall be responsible with the management and 5 maintenance of the properties subject of the program. For purposes of this section, management shall include the determination of the beneficiaries of the program and maintenance shall include ensuring that adequate utility services are accessible to the 8 beneficiaries. The LGU may contract with private entities for the maintenance of the 9 properties subject of the program.
SEC 9. Appropriation. The funds necessary to carry out the initial
12 implementation of this Act shall be charged against available appropriations of the 13 NHA, LGUs, and other government agencies engaged in the National Shelter Program subject to existing budgeting, accounting and auditing laws, rules, and regulations. 15 The appropriations necessary for the continued implementation of this Act in succeeding years shall be prepared in accordance with regular government budget procedures and shall be included in the budget under the annual General Appropriations Act (GAA).
SEC 10. Implementing Rules and Regulations. The NHA, Department of
the Interior and Local Government (DILG) and the Department of Human Settlements 22 and Urban Development (DHSUD) shall promulgate the rules and regulations for the effective implementation of the provisions of this Act within ninety (90) days from its effectivity.
SEC 11. Separability Clause. Should any provision of this Act or any part
thereof be declared invalid, the other provisions, insofar as they are separable from the invalid ones, shall remain in full force and effect.
SEC 12. Repealing Clause. All laws, orders, issuances, rules and regulations
or parts thereof inconsistent with this Act are hereby repealed or modified accordingly.
SEC 13. Effectivity. This Act shall take effect fifteen (15) days after its
complete publication in at least two (2) newspapers of general circulation. Approved,