Housing Program for Teachers Act
Fifth District Quezon City Representative Patrick Michael D. Vargas introduced House Bill No. HB04075 – An Act To Provide A Housing Program For Teachers which is now on referral to the Committee on Housing and Urban Development.
In its explanatory note, it says:
Teaching is the profession that creates all other professions. Teachers’ influence and knowledge shape the lives of their students and hone them to become productive members of society. But while teachers are genuinely fulfilled in their practice, they also struggle with the financial limitations of their career.
Teaching has the reputation for being an underpaid and unrewarding profession. Many teachers cannot afford to purchase a home that they can call their own. Thus, it is only fitting that we reward teachers to honor their service to Filipino students and the nation.
This bill seeks to establish a housing program for educators. It directs government housing and financing agencies to undertake special housing projects and provide housing funds for teachers. It also provides fiscal incentives for private sector developers who will participate in the implementation and development of the teachers’ housing program.
Education is one of the best investments our country can put in. Quality education creates jobs, breaks the cycle of poverty, and helps us achieve national development. A great nation requires a highly competitive education system, which in turn requires world class and passionate teachers.
Through a housing program for teachers, we are helping Filipino educators to upgrade their living conditions, strengthen their dignity, and boost their morale and self-esteem. If approved, this proposal will help dissuade competent teachers from leaving our country to seek greener pastures abroad.
House Bill No. HB04075
INTRODUCED BY REP. PM VARGAS
AN ACT
TO PROVIDE A HOUSING PROGRAM FOR TEACHERS
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 “Housing Program for Teachers Act.”
SECTION 2. Declaration of Policy. – It 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 strength, promote, and support the component activities of housing production and finance to order to enable teachers to acquire decent housing and basic services at the lowest affordable price.
SECTION 3. Coverage. – The Program shall cover the teachers of the Department of Education (DepEd) with a permanent status.
SECTION 4. 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.
SECTION 5. Role of the DepEd. – The 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:
(a) Create a Teacher’s Housing Secretariat which shall issue and collect the necessary 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.
SECTION 6. Program Financing Scheme. – In 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;
iii. housing assets being disposed of through public bidding or negotiated sales;
3. 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;
5. Home improvement or any alternation in an existing 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 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 exclusively for teachers, may avail of a financing loan not exceeding eighty 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.
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 be 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.
SECTION 7. Fiscal Incentives for Private Sector Participation in Teacher’s Housing. – Private sector developers who participate in thedevelopment of teacher’s housing shall be entitled to the following fiscalincentives:
(a) Exemption from income taxes for housing projects exclusively dedicated for teachers;
(b) Exemption from capital gains tax on housing projects exclusively dedicated for teachers;
(c) Exemption from documentary stamp tax for all project related documentation;
(d) Exemption from value-added tax for the project concerned;
(e) Exemption from transfer taxes for both raw and completed projects; and
(f) 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 Housing and Urban Development Coordinating Council, 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.
SECTION 8. Funding Source. – The Government Service Insurance System and the Home 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 investible funds for long-term teacher’s housing mortgages and shall 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.
SECTION 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.
SECTION 10. Repealing Clause. – All laws, decrees, orders, rules and regulations, or other issuances or parts thereof inconsistent with the provisions of this Act are hereby repealed or modified accordingly.
SECTION 11. Separability Clause. – If any portion or provision of this Act is declared unconstitutional, the remainder of this Act or any provision not affected thereby shall remain in force and effect.
SECTION 12. Effectivity. – This Act shall take effect fifteen (15) days after its publication either in the Official Gazette or in a newspaper of general circulation in the Philippines.
Approved,
Source:
- House Bill No. HB04075 – An Act to Provide a Housing Program for Teachers
- https://hrep-website.s3.ap-southeast-1.amazonaws.com/legisdocs/basic_19/HB04075.pdf