Pambansang Pabahay Para Sa Pilipino Program Act of 2025

- TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES JUL 16 P4:07 First Regular Session SENATE RECEIVES S. No. 671 Introduced by Senator Christopher Lawrence "Bong" T. Go AN ACT INSTITUTIONALIZING THE PAMBANSANG PABAHAY PARA SA PILIPINO PROGRAM EXPLANATORY NOTE Article XIII, Section 9 of the 1987 Constitution states that "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." In pursuit of this constitutional mandate, the government has launched various housing initiatives aimed at addressing the country's growing housing backlog and improving the quality of life for millions of Filipinos living in informal settlements and inadequate dwellings. Despite these efforts, access to affordable, decent, and secure housing remains a persistent challenge, particularly for low-income families and marginalized communities in urban centers. According to the UN-Habitat Philippines Country Report 2023, there is an estimated 3.7 million informal settler families (ISFs) across the country. About half a million informal settler families in the National Capital Region (NCR) are living in poor 1 https://unhabitat.org/sites/default/files/2023/06/5._un- habitat_philippines_country_report_2023_final_compressed.pdf

conditions, including in high-risk areas, which is made worse by the parallel effects of the COVID-19 pandemic and other disasters,? These communities face heightened vulnerability due to unsafe living conditions, overcrowding, and lack of access to basic services. Furthermore, the Department of Human Settlements and Urban Development (DHSUD) warned that the housing backlog of 6.5 million units, from 2017 to 2022, may eventually grow to 22 million units by 2040 if unaddressed. 3 These predicaments could hamper the goal of sustainable housing development and the elimination of housing poverty. The DHSUD initiated the Pambansang Pabahay para sa Pilipino Program (4PH) which establishes housing programs in partnership with local government units and the private sector, and implements an interest subsidy on mortgage payment of housing beneficiaries. This proposed measure institutionalizes the program to further elevate it as a national priority with sustainable funding and a clear set of guidelines and standards for its proper and successful implementation. This will create a holistic initiative that can provide adequate and affordable housing to several families who lack decent housing. In view of the foregoing, the approval of this measure is earnestly sought SENATOR CHRISTOPHER LAWRENCE "BONG" T. GO 2 https://www.philstar.com/nation/2022/09/04/2207223/500k-families-ncr-living-poor-conditions 3 https://businessmirror.com.ph/2020/06/12/citing-22-million-backlog-forecast-government-steps-up- housing-projects/

Offin of tree P4:07 JUL 16 TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES First Regular Session RECEN-UU! SENATE S. No._ 671 Introduced by Senator Christopher Lawrence "Bong" T. Go AN ACT INSTITUTIONALIZING THE PAMBANSANG PABAHAY PARA SA PILIPINO PROGRAM Be it enacted by the Senate and the House of Representatives of the Philippines in Congress assembled:

SECTION 1. Title. - This Act shall be known as the "Pambansang Pabahay para sa

Pilipino Program Act of 2025."

SEC. 2. Declaration of Policy. - It is hereby declared a policy of the state to pursue a

continuing program of housing and urban development which shall make available at affordable cost, decent housing and basic services especially to the underprivileged and homeless citizens by establishing a housing interest subsidy program with particular focus on assisting informal settler families (ISFs) acquire their own decent housing.

SEC. 3. The Pambansang Pabahay para sa Pilipino Program - The Department of

Human Settlements and Urban Development (DHSUD) shall implement the Pambansang Pabahay para sa Pilipino Program, hereinafter referred as the "Program", which shall have the following objectives: (a) Develop one million housing units every year; (b) Prioritize the lowest 30% income decile of the population and low wage earners as primary beneficiaries of the Program;

(c) Pursue innovative strategies to make housing finance accessible and housing units affordable to the target beneficiaries, through but not limited to the following: (1) Allocate government funds for the payment of housing interest support to lower the monthly interest rate payment of qualified program beneficiaries; (2) Utilize vacant, idle, blighted and/or under-utilized government and private- owned lands for housing and mixed-use development; (3) Tap government financing institutions (GFIs) and private banks to provide development loans & end-user financing; and (4) Promote varied forms of modalities in implementing housing and mixed-use development. (d) Capacitate and support the local government units (LGUs) as one of the main project proponents in implementing housing projects; and (e) Encourage and incentivize the private sector to participate in the program implementation.

SEC. 4. Program components. -

(a) Site identification. - As the main project proponents, the LGUs shall, in coordination with the DHSUD, be responsible for project site identification and the development of their respective residential project/s. LGUs may engage and/or enter into a joint venture with government entities or private developers or builders, to undertake and construct housing projects using DHSUD-guided housing parameters. The following lands may be used for the housing projects: (1) LG-owned property. The property identified for the project should have a "clean" or a "near-clean" title. For this purpose, a "clean title" shall be defined as one that is registered in the name of the LGU and is entirely free of any lien or encumbrance. On the other hand, a "near-clean title" shall be defined as one that is affected by a lien or encumbrance including any adverse claim or interest or any issue, complication or obstacle that can be resolved within the timeframe needed for its utilization and the completion of the project.

(2) NGA-owned property. LGUs who intend to use the properties of National Government Agencies (NGAs) for their housing projects shall be mainly responsible for securing the issuance of authority to use such land and/or the disposal/transfer thereof to them from the NGAs concerned. (3) Privately-owned property. Private landowners of blighted areas or land occupied by ISs are encouraged to participate in the 4PH Program by (a) donating their land, or (b) selling their properties at a reduced/discounted price. Subject to the cap on the proposed selling price of the planned housing units, the LGUs may consider purchasing such land or entering into a joint venture agreement with the owner, subject to compliance with appropriate government laws and regulations. (b) Housing design. - LGUs shall be responsible for preparing the parameters of their proposed housing projects, in accordance with existing government-prescribed laws and standards, and the following DHSUD design and proposed price ceiling parameters for projects to be accredited under the Program. (c) Housing construction. - LGUs shall procure or select qualified developers and/or contractors to construct the proposed housing project/s in accordance with applicable government rules and regulations. Notwithstanding the entry of new developers and contractors, the LGUs are encouraged to invite housing developers who are known to have good standing and have already undertaken projects within their areas of jurisdiction and need to develop corresponding socialized housing projects in compliance with the balanced housing development program requirement. (d) Financing for the housing project. - The Pag-IBIG Fund (HDMF), as well as other GFIs and private banks, shall make their funds available for the LGUs' housing projects through their respective developmental loan programs. They shall also participate by providing end-user financing to homebuyers; (e) Beneficiaries. - LGUs shall set the eligibility criteria for, and identify, the project beneficiaries. In formulating such criteria, they shall coordinate with GFIs and private banks that will provide end-user financing to ensure alignment of all their

selection criteria particularly as regards the credit- worthiness and amortization capacity of potential buyer-beneficiaries. Beneficiaries must be capable of and committed to paying the monthly housing loan amortization over the 30-year loan term, to the GFIs or private banks. The above notwithstanding, LGUs and their development partners are not prohibited from developing housing projects that incorporate or provide cross subsidies between different income classes so as to benefit more ISFs and lower- bracket wage earners. (f) Subsidy on amortization and interest. - The DHSUD shall, directly or through its attached corporations, 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/or other identified funding sources. LGUs are also encouraged to provide monthly amortization support to buyer- beneficiaries of the units, if needed to enable them to meet their monthly amortization obligations.

SEC. 5. Roles and Responsibilities. The implementing agencies shall, at the

minimum, undertake the following roles, functions, and responsibilities: (a) Department of Human Settlements and Urban Development (DHSUD) (1) Act as the overall initiator, coordinator, and facilitator, of the Program; (2) Facilitate the provision of funds through the GAA, Key Shelter Agencies (KSAs), GFis and private banks, for use as: (a) development loans, (b) interest support for the program's project beneficiaries, (c) end-user financing, (d) guarantee financing, and (e) purchase of loan accounts; (3) Oversee and monitor the implementation of the Program, including the project implementation and performance of all participants; (4) Provide parameters/specifications, extend support and technical assistance to LGUs, developers, and other program partners including facilitating the issuance of Development Permits and Licenses to Sell within its areas of responsibilities; and

(5) Perform such other roles, functions and acts which it may deem proper and necessary for the effective and full implementation of the Program; (b) Local Government Units (LGUs) (1) Act as the main proponent and major player in the planning, implementation and management of their respective housing projects; (2) Have the primary responsibility of identifying lands for potential project locations as well as making it available for their proposed housing projects; (3) Determine and prepare the project concept to be used for their housing projects; (4) Determine the implementation modalities for each of their envisioned housing projects, including which project to undertake on its own, through joint venture, or using other options; (5) Identify the project proponent that would undertake the development of each project, whether solely or in joint venture with third parties; (6) Identify, select and enter into agreements with qualified developers and/or contractors to implement their proposed housing projects, in accordance with applicable government laws, rules and regulations; (7) Provide support to their priority housing projects and beneficiaries, either through monthly amortization support and/or other commitments or forms/modes of assistance, such as land donation and site development, to make the units affordable to target buyer-beneficiaries; (8) Issue the appropriate resolutions and/or ordinances needed for the proposed projects, including the allocation of land, funds and other necessary support for the successful implementation of the projects; (9) Establish an office and provide qualified personnel to implement their housing program; (10) Conduct social preparation activities for target beneficiaries in coordination with the DHSUD and its pertinent KSAs; (11) Facilitate the expeditious issuance of local permits and clearances for their projects;

(12) Take charge, to the extent possible and applicable, of all documentation necessary for the full implementation of their housing program; (13)Undertake estate/property management responsibilities for their projects and ensure the availability of funds for the purpose; (c) National Housing Authority and Social Housing Finance Corporation (1) As landowners, enter into appropriate partnership agreements with the concerned partner LGUs; (2) As a developer and/or project manager, implement the project/s in coordination with LGUs and other entities in accordance with the roles and responsibilities as may be agreed upon by the parties involved; (3) Provide support to LGUs in social preparation, project development, and such other assistance needed for the successful implementation of the LGUs' housing program and projects under the Program; (d) Home Development Mutual Fund (HDMF), participating Government Financial Institutions (GFIs) and Private Banks (1) Establish special lending programs with simplified, streamlined and expedited guidelines, requirements, and processes, and allocate exclusive funds for the Program, such as those needed for developmental loans to developers, and end- user financing to project buyer-beneficiaries to allow the latter to purchase their housing units; (e) National Home Mortgage Finance Corporation (NHMFC) (1) Provide liquidity to GFIs and private banks to ensure the sustainability of the Program by purchasing eligible Real Estate Mortgage (REM) accounts from them, securitizing such loan portfolios, and issuing asset-backed securities to attract more funds for housing.

SEC. 6. Annual Report of the Program. - The DHSUD shall annually publish a full

report of the Program covering the implementation of the previous fiscal year. The said report shall include financial disclosures, number of clients or beneficiaries served, and

1 recommendations to the President and to both chambers of Congress on how to further 2 enhance the program.

SEC. 7. Program Transparency. - The DSHUD shall regularly and timely post and

update on its website a report of financial disclosures and information about beneficiaries based on geographical area, social, economic, and cultural circumstances.

SEC. 8. Joint Congressional Oversight Committee. - Upon effectivity of this Act, a

9 Congressional Oversight Committee, hereafter referred to as the Pambansang Pabahay 10 Oversight Committee is hereby constituted. This Committee shall set the overall framework to review the implementation of this Act. It shall likewise determine inherent gaps in the law and recommend necessary remedial legislation or executive measures.

SEC. 9. Appropriation. - The amount necessary to implement this Act shall be

included in the annual General Appropriations Act.

SEC 10. 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 11. Repealing Clause. - All laws, ordinances, rules, regulations, other

issuances or parts thereof, which are inconsistent with this Act, are hereby repealed or modified accordingly.

SEC 12. Effectivity. - This Act shall take effect fifteen (15) days after its publication

in the Official Gazette or in a newspaper of general circulation. Approved