Relief in Sight: House Approves Housing Loan Restructuring Bill

On Wednesday, January 22, 2025, the House of Representatives passed House Bill No. 11202 on its third and final reading. With an overwhelming majority of 178 affirmative votes against three negatives and zero abstentions, the measure aims to alleviate financial burdens on beneficiaries of government housing programs.

The bill, authored by San Jose Del Monte City Representative Florida Robes, focuses on a socialized and low-cost housing loan restructuring and condonation program. By addressing financial hardships, the measure hopes to combat low occupancy rates in government housing projects, a problem exacerbated by unpaid amortizations and association dues.

housing loan restructuring
Credits: PNA

What the Bill Offers

At the heart of the measure are provisions designed to provide meaningful financial relief:

  • Condonation of Penalties and Interests: Unpaid penalties and interests related to delinquent housing loans will be forgiven.
  • Restructured Loan Terms: Payment periods can be extended, and monthly amortizations reduced.
  • Incentives for Timely Payments: Borrowers who consistently pay on time will receive benefits.
  • Provisions for Heirs: In cases of borrower incapacity or death, legal heirs or successors may assume the loan. Proceeds from Mortgage Redemption Insurance will be fully applied to outstanding balances.

These strategies aim to empower beneficiaries and restore the original intent of government housing programs: to provide affordable and decent housing for underprivileged Filipinos.

Challenges in Housing Program Occupancy

Representative Robes cited alarming trends that undermine the success of government housing projects. Many beneficiaries resort to selling their rights or leasing their units to third parties due to the financial strain of monthly payments. Others use their units as collateral for private loans, a practice that can transfer ownership to creditors and defeat the purpose of the housing initiative.

“The inability to meet financial obligations drives beneficiaries into cycles of debt, ultimately compromising their stability and security,” Robes stated.

Exclusions and Limitations

The bill, however, has clear boundaries. Housing accounts that fall into the following categories are excluded from coverage:

  • Units with no initial payments.
  • Units abandoned for more than a year from the delinquency date.
  • Units occupied by third parties other than the original beneficiary or their heirs.
  • Foreclosed properties.

By setting these limitations, the measure ensures that only qualified accounts benefit from the program, maintaining the integrity of government resources.

A Step Towards Affordable Housing

The approval of this measure strengthens the National Housing Authority’s (NHA) mandate to provide affordable and quality homes. Robes emphasized that this program represents an adaptive strategy to address the pressing housing needs of underprivileged and marginalized citizens.

Next Steps

With the House’s approval, the bill will move to the Senate for deliberation. If enacted, it is expected to transform the lives of countless Filipinos struggling to maintain their government-provided housing.

By offering financial reprieve and restructuring options, House Bill No. 11202 brings hope to those burdened by housing loans, aiming to turn these houses into lasting homes for the Filipino people.

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