Republic of the Philippines HOUSE OF REPRESENTATIVES Quezon City
‘ THIRTEENTH CONGRESS
1“ Regular Sessipn
House Bill N0. 2 4 1
Introduced by RODRIGUH D. DADIVAS
Explanatory Note
The lack of decent and affordable housing facilities remains to be one of the most pervasive sooio-economic problems that our government needs to confront. At present, there are more than 60% of Filipino households belong to the poverty threshold or whose family income is below P14,000.00 a month. These people do not have a home to cali their own not because they don’t need it but the unavailabiiity of affordabie housing units that prevented them from having one. Furthermore, if there are housing programs available, its loan mechanisms are still not proportion insofar as the income of these more than 60% Filipino househoids.
This biii seeks to establish a mechanism that would provide low-cost housing loan restructuring program. It provides ince
Under this bill, all penalties and surcharges will be condoned upon approval of the application, provided, that all accrued interests shall be added to the remaining balance of the principal, the aggregate of which shall be considered as the new principal amount.
There are other pmvisions under this biii that wouid make housing loan facilities avaiiabie jqmhgpoor Fiiipinos.
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In lightfof the foregoing approval of this om is eamestly sought.
Republic of the Phiiippines HOUSE OF REPRESENTATIVES Quezon City
THIRTEENTH CONGRESS 1* Regular Session
241
HOUSE Bill NO.
Introduced by RODRIGUEZ D. DADIVAS
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TO ESTABLISH A sOc|ALlzEO ANO LOW-COST HOUSING LOAN RI’-:sTRuO1’uRmO PROGRAM, PROVIDING THE MECHANISMS THEREFOR, ANO FOR OTHER PURPOSES
Be .1 enacted by the Senate and the House of Representatives of the Phmppines in Congress assembled:
Section 1. Title. – This Act shall be known as “Socialized and Low-Cost Housing Loan Restructuring Act of2004.”
Sec. 2. Restructuring of Delinquent Socialized and Low-Cost Housing Loan Accounts. — In keeping with the Constitutionai mandate for the State to undertake a continuing program of urban land reform and housing that will make avaiiabie at affordable cost decent housing and basic services, ‘there is hereby established a Socialized and Low-Cost Housing Loan Restructuring Program. Under this program:
a) For three (3) years from the effectivity of this Act, aii socialized housing ioans or loans amounting to Two Hundred Twenty Five Thousand Pesos (P225,000.D0) and beiow, and all low-cost housing loans or ioans amounting to over Two Hundred Twenty Five Thousand Pesos (P225,0D0.00) but not exceeding Five Hundred Thousand Pesos (P500,000.00) with any of the govemment financing institutions and agencies involved in the National Shelter Program (NSP), inciuding but not iimited to, the Government Service insurance System (GSIS), Social Security System (sss), Home Development Mutual Fund (HDMF), National Home Mortgage Finance corporation (NHMFC), Home Guaranty Corporation (HGC), and the National Housing Authority (NHA) that have at ieast a six-month unpaid monthly amortization area hereby declared covered by the benefits of this restructuring program notwithstanding that the same account has availed of the benefits of a previous restructuring or condonation program and even if the annual total family income of the borrower-applicant exceeds Three Hundred Thousand Pesos (30Ei,0O0.00);
b) An applicant for restructuring shall only be charged a processing fee which shall be lower than those charged under previous restructuring or conolonation programs and no down payment shall be required for a borrower to apply for the benefits of this restructuring program;
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o) Ail penalties and surcharges shaii be condoned upon approval of the application under this Act: Provided, that aii accmed interests shall be added to the remaining balance of the principal, the aggregate of which shaii be considered as the new prinoipai amount; d) A borrower-appiicant may be aiiowed to use the totai accumulated value of hislher membership contribution or savings with the GSlS, SSS, or HDMF to pay in fuil or in part hismer housing ioan;
e) The term of a housing loan account being appiied for restructuring may be extended for a period longer than its original tenn in order to lower the amount of the monthly amortization to a maximum of One Thousand Five Hundred (P‘l,500.00) for a period of three (3) years from the approval of the application, after which, the monthly amortization will revert back to its original amount. The unservioed portion ensuing from the three~year towered monthly amortization shaii be paid on the last year of the term of the housing loan along with the last monthly amortization. in the event that the borrower fails to pay any amortization during the three-year period, helshe shall voluntarily surrender his-‘her property without need of judicial proceedings;
f) In case of incapacity of a borrower, hisfner heirs and successors-in interest may assume payment of hisiher outstanding housing loan; and
g) Loan restructuring under this Act may be availed only once.
AI! corresponding penalties and surcharges with NHMFC may have to pay its funders as a resuit of the implementation of this Act shalt be automatically adjusted and condoned.
Sac. 3. Exclusion from Coverage. – In no instance shall the following housing loan accounts be covered by this Act:
a) Any account without a single payment since takeout;
b) An account whose housing unit has been abandoned by the borrower
cwner for more than two (2) years;
c) An account whose housing unit has remained unoccupied for a period of
at least two (2) years; d) An account whose housing unit is occupied by a third party other than the
original registered beneficiaiy; and
e) An account that has been foreclosed, the title of which has already been consoiidatedltransferred in the name of the govemment financing institution.
Sec. 4. Declaration of Dividends. – The declaration ofdividends of the funds managed by the GSIS, sss, and HDMF shall be limited to their members who have not avaiied ofthe restructuring program under this Act
Sec. 5. Contribution of Government Financing Institutions to the National Shelter Program. — The contribution of the govemrnent financing institutions to the NSP shall be limited to the net eamings derived from their housing programs.
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Sec. S. Incentive for Prompt Payment of Monthly Amortization. — Upon the effectivity of this Act, all accounts whose monthly amorlizations are paid on time shall be entitled to a reasonable discount on loan interest.
Sec. 7. Applicability on Delinquent Accounts Due to Defective Housing Units. – This Act shaii likewise apply to borrowers who faiiecl or refused to pay their monthly amortizations due to structurally defective or substandard housing units andior subdivisions lacking in basic amenities such as water, light, drainage, good roads, and others and as required by iaw.
Sec. 8. implementing Rules and Regulations. – There is hereby created an inter-agency committee headed by the Housing and Urban Development Coordinating Council and composed of all govemment institutions and agencies enumerated in Section 2 hereof tasked to promulgate the implementing rules and regulations within sixty (60) days from the effectivity of this Act.
Sec. s. Congressional Oversight Committee. – There is hereby created a Congressional Oversight Committee composed of the Chairman of the House Committee on Urban Planning, Housing and Resettlement, five (5) members of the Senate and six (6) members of the House of Representatives. The members from the Senate shall be appointed by the Senate President from among the members of the Senate Committee on Urban Planning, Housing and Resettlement based on the proportional representation of the parties or coalitions therein. The members from the House of Representatives shali be appointed by the Speaker from among the members of the House Committee on Housing and Urban Development based on the proportionai representation of the parties or coalitions therein.
The Oversight Committee shall review and approve the Implementing Rules and Regulations. it shall also review the performance of the gcvemment financing institutions and agencies involved in the implementation of this Act.
Sec. 10. Repealing Clause. Ail laws, executive orders, rules or reguiations, or any part thereof, inconsistent with any provisions of this Act are hereby repealed or modified accordingly.
Sec. 11. Effiectivlty Clause. This Act shail take elfect fifteen (15) days after its complete pubiication in the Officiai Gazette or in at least two (2) national newspapers ofgenerai circulation.