The Philippine House of Representatives has given the green light to a bill aimed at restructuring and forgiving government housing loans, marking a significant step towards easing the financial burden on low-income families. On January 22, 2025, the bill passed its final reading with a strong majority of 178 votes in favor, only three against, and no abstentions. This legislation, House Bill No. 11202, targets beneficiaries of the National Housing Authority (NHA) and the Social Housing Finance Corporation, offering them relief by waiving interests and penalties on unpaid housing amortizations.
Florida Robes, the representative from San Jose Del Monte City and the bill’s author, highlighted the low occupancy rates in government housing projects, attributing this to the financial strain of monthly payments and association fees on beneficiaries. This situation has led many to either sell their housing rights or rent out their units, undermining the government’s goal of providing affordable homes to the underprivileged. Robes also pointed out that some beneficiaries have resorted to using their units as collateral for private loans, which can result in the units being taken over by creditors.
The proposed legislation aims to reinforce the NHA’s mission by implementing flexible strategies to offer quality, affordable housing. Key features of the bill include the forgiveness of accrued interests and penalties on overdue loans, the restructuring of loan terms to extend repayment periods and reduce monthly payments, and incentives for timely payments. Additionally, the bill allows for the transfer of loan obligations to legal heirs or successors in the event of the borrower’s permanent disability. In cases of the borrower’s death, the full amount from the Mortgage Redemption Insurance will be utilized.
However, the bill does not cover all accounts. Exemptions include units without initial payments, those abandoned for over a year since delinquency, units occupied by individuals other than the original beneficiaries or their legal heirs, and properties that have been foreclosed.