[ REPUBLIC ACT NO. 12216, May 29, 2025 ]
AN ACT STRENGTHENING THE NATIONAL HOUSING AUTHORITY BY EXTENDING ITS CORPORATE TERM AND RATIONALIZING ITS POWERS, REPEALING PRESIDENTIAL DECREE NO. 757, SERIES OF 1975, AS AMENDED, AND FOR OTHER PURPOSES
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 "National Housing Authority Act".
Section 2. Declaration of Policy
It is the policy of the State to ensure a continuing and sustainable program for urban land reform and housing which shall make available affordable and decent housing, and provide basic services to underprivileged and homeless citizens, to guarantee freedom from poverty, raise the standard of living, and improve the quality of life for all.
The State, in partnership with stakeholders and the private sector, shall:
Section 3. Statement of Objectives
The State, through its primary national government agency engaged in direct housing production, shall endeavor to achieve the following objectives:
Section 4. Name and Corporate Existence
The National Housing Authority (NHA) herein referred to as the "Authority", created by virtue of Presidential Decree No. 757, series of 1975, as amended, shall continue to exist as a corporate body and shall operate under the provisions of this Act. It shall develop and implement a comprehensive, integrated, and affordable housing program. The Authority shall retain its principal office in Metro Manila but may have such regional and district offices, or subsidiaries in other areas all over the country, as it may deem proper and necessary. The Authority shall be under the administrative supervision of the Department of Human Settlements and Urban Development (DHSUD) pursuant to Republic Act No. 11201, or the "Department of Human Settlements and Urban Development Act" and shall exist for another twenty-five (25) years commencing on July 31, 2025, subject to mandatory review, as provided under Section 25 of this Act.
Section 5. Capitalization
The authorized capitalization of the Authority shall be increased from Five billion pesos (P5,000,000,000) to Ten billion pesos (P10,000,000,000) which shall be fully subscribed and paid by the Republic of the Philippines, as follows:
Section 6. Powers and Functions of the Authority
The Authority shall exercise the following powers and functions:
I. General Powers
Provided, further, That the terms and conditions of the condonation program may include the re-classification of additional interest, or interest on unpaid interest, as penalties, which may also be condoned. III. Housing Operations and Support Services
In case of failure or refusal of the obligor or debtor to comply with the demand, the Authority shall initiate and institute the necessary actions or suits, criminal, civil, administrative, or otherwise, before the courts, tribunals, commissions, boards or bodies of proper jurisdiction. The Authority may compromise or release, in whole or in part, any interest, penalty, or obligation in connection with the collection of amortizations from its awardees: Provided, That the Authority shall have the power to summarily eject and dismantle, without the necessary of judicial order, any and all informal settler families, as well as any illegal occupant in any homelot, apartment, or dwelling unit from government resettlement projects, as well as properties owned or administered by it. In all these cases, proper notice of ejectment, either by personal service or by posting the same on the lot or door of the apartment, as the case may be, shall be given to the informal settler family or illegal occupant concerned at least ten (10) days before the scheduled ejectment from the premises. In the exercise of such power, the Authority shall promulgate guidelines for the implementation of the eviction and dismantling process;
Section 7. The Board of Directors; Its Composition
The powers of the Authority shall be exercised through the Board of Directors herein referred to as the "Board", which shall be composed of nine (9) members, consisting of the following: Secretary of the DHSUD; Secretary of the DPWH; Secretary of the Department of Finance (DOF); Secretary of the Department of the Interior and Local Government (DILG); Secretary of the Department of Budget and Management (DBM); Director-General of the NEDA; General Manager of the Authority; and two (2) expert panel members with expertise in housing, urban planning and development.
The two (2) expert panel members shall be appointed by the President of the Philippines from a shortlist submitted by the Governance Commission for GOCCs (GCG).
They must have the following qualifications:
The Secretary of the DHSUD shall be the ex officio Chairperson of the Board. All appointive directors must have qualified under the Fit and Proper Rule, as defined by Republic Act No. 10149. An appointive director shall serve for one (1) year, unless sooner removed for cause. The director shall, however, continue to hold office until their successor is appointed.
The Board shall meet regularly at least once a month, but special meetings may be called either by the Chairperson or by five (5) members of the Board, as may be necessary. Five (5) members of the Board shall constitute a quorum and all decisions of the Board shall require the concurrence of at least five (5) members.
Section 8. Powers and Functions of the Board
The Board shall have the following powers and functions, as well as the usual corporate powers:
Section 9. Duties and Responsibilities of the General Manager
The General Manager shall be appointed by the President and shall have the following duties and responsibilities:
Section 10. Assistant General Manager
The General Manager shall be assisted by three (3) Assistant General Managers, who shall be appointed by the President, upon the recommendation of the General Manager. The General Manager is further authorized to delineate and assign other functional areas or responsibilities of the Assistant General Managers.
Section 11. Qualifications and Appointment
The General Manager and Assistant General Managers of the Authority must be citizens and residents of the Philippines, of good moral character, of proven integrity, competence, and expertise in housing, urban planning, and development, and must have qualified under Section 16 of Republic Act No. 10149.
Section 12. Organizational Structure and Staffing Pattern
Subject to the approval of the GCG, the Board shall determine the Authority's organizational structure, and create new divisions or units as it may deem necessary, in accordance with civil service laws, rules, and regulations.
Subject to the approval of the GCG, as provided under Section 8 and 9 of Republic Act No. 10149, the General Manager shall likewise determine the rates of allowances, honoraria, and other additional compensation of its officers, technical staff, and consultants, including necessary detailed personnel.
Section 13. Disaster and Emergency Response Housing Office (DERHO)
There shall be a DERHO under the Authority which shall formulate plans and programs addressing the needs of displaced families due to natural and human-induced disasters and calamities, and shall ensure effective implementation of post-disaster or emergency housing programs through sustainable, integrated, multi-sectoral, and community-based approaches and strategies, in coordination with the LGUs.
Section 14. Exemption from Taxes and Regulatory Fees
All laws to the contrary notwithstanding, the Authority, its assets, properties, and all accruals thereto and income or investment earnings therefrom, as well as supplies, equipment. papers, or documents, shall be exempt from any tax, assessment, fee, charge, or customs or import duty of any kind, whether imposed by local or national entities.
The exemption includes, but is not limited to, the following: income tax, real property tax, capital gains tax, transfer tax,value-added tax, donor's tax, and similar taxes, and building permit fee, fire inspection permit fee, environmental compliance certificate (ECC) fees, and other regulatory fees. The Authority shall be exempt from the payment of documentary stamp tax and registration fees, including fees required for the issuance of transfer certificates of titles.
Section 15. Lands for Authority Projects, Management, Conversion, and Classification
Lands identified and designated for Housing and Urban and Rural Development, pursuant to Section 24 of Republic Act No. 11201, shall be assessed by the Authority for program or project feasibility. Should the site evaluation be in the affirmative, said lots may be transferred to the Authority for administration.
This shall not, however, preclude the Authority from pursuing its continuing mandate of identifying, acquiring, and managing lands for the immediate and future needs of its beneficiaries. In pursuit thereof, the Authority must consider, among others, the degree of availability of basic services and utilities, access to modes of transport, proximity to economic opportunities, and the preservation of the social capital of beneficiaries.
Subject to the approval of concerned government agencies, lands identified and approved by the Authority for rehabilitation projects to be developed within areas declared to be under a state of calamity by the President or any competent authority or upon the recommendation of the National Disaster Risk Reduction and Management Council (NDRRMC) or any Local Disaster Risk Reduction and Management Council (LDRRMC), shall be converted and/or re-classified, to facilitate its immediate development. For purposes of site selection under this modality, the Authority shall be guided by the hierarchy of priorities in the acquisition of land under Section 9 of Republic Act No. 7279, and ensure that protected lands, under special laws as Republic Act No. 8371, or the "Indigenous Peoples' Rights Act of 1997" and Republic Act No. 6657, or the "Comprehensive Agrarian Reform Law of 1988", as amended, and other agrarian reform laws, shall be preserved for equally important land uses. The Authority, in coordination with the DHSUD, the DILG, the Department of Agriculture (DA), the Department of Agrarian Reform (DAR), the Department of Environment and Natural Resources (DENR), and the National Commission on Indigenous Peoples (NCIP), shall craft the necessary rules and regulations to implement this provision within one hundred eighty (180) days after the approval of the Act.
The conversion and reclassification of lands for housing projects shall be without prejudice to the rights of the beneficiaries under Republic Act No. 6657, as amended.
The Authority, under the supervision of the DHSUD, shall take the lead in the disposition of the lands intended for calamity victims: Provided, That the Authority, in coordination with the LGUs, shall determine the beneficiaries according to existing rules and regulations and undertake the identification and evaluation of lands suitable for disposition.
Section 16. Management or Disposition of Completed Projects
The Authority shall determine, establish, and maintain the most feasible and effective program for the management or disposition of specific housing or resettlement projects. Unless otherwise decided by the Board, completed housing or resettlement projects shall be managed and administered by the Authority until it has been turned over to the concerned LGU or other concerned public or private entity, as the case may be.
Section 17. Cancellation of Awards.
The Authority shall be authorized to revoke the award to beneficiaries of socialized housing units which are unoccupied and abandoned, consistent with the constitutional requirement of due process: Provided, That the housing units have been unoccupied and abandoned for at least one (1) year since the disposition of the housing unit to the beneficiary, or abandoned for one (1) year after occupancy: Provided, further, That in case of occupation of housing units by a party other than the beneficiary or any member of the household, the award to the original beneficiary shall be revoked.
Section 18. Issuance of Bonds
Subject to the approval of the Secretary of the DOF, after consultation with the Monetary Board of the BSP, the Authority is hereby authorized to issue bonds and other securities to finance the implementation of its housing programs: Provided, That only such bonds or securities required by the annual project implementation shall be issued and sold: Provided, further, That no bonds or securities shall be issued unless eighty percent (80%) of those already issued have been sold: Provided, finally, That the total amount of the bonds or securities issued shall in no case exceed ten (10) times its paid-up capital and surplus. The Authority, in consultation with the Secretary of the DOF and the Monetary Board, shall prescribe the form, rate of interest, and denominations, maturity, negotiability, call or redemption features, and all other terms and conditions of the bonds and securities to be issued.
In promoting the sale of bonds or securities, the Authority is authorized to adopt the lottery scheme provided under existing laws, rules, and regulations.
The bonds and securities issued under this Act, including the income thereof, shall be exempt from all kinds of taxes and from attachment, execution, and seizure, which facts shall be stated on the dace thereof.
Section 19. Guarantee by the Government
The Republic of the Philippines may guarantee the payment of both the principal and the interest of the bonds, debentures, collaterals, notes, or such other obligations issued or incurred by the Authority by virtue of this Act, and may pay such principal interest in case the Authority fails to do do. In such event, the Republic of the Philippine shall succeed to all the rights of the holders of such bonds, debentures, collaterals, notes, or other instruments to the extent of the payment made, unless the sum paid by the Republic of the Philippines is refunded by the Authority within a reasonable time: Provided, that the issuance of the Republic of the Philippines guarantee shall be subject to necessary approvals from appropriate agencies such as the DOF, the Monetary Board, and the Office of the President.
Section 20. Reports
The Authority, upon approval of the Board, shall submit an annual report to the Office of the President, copy furnished the DHSUD, indicating, among others, the housing program being implemented, the stage of implementation, and the financial position of the Authority. It shall likewise submit such periodic or other reports, as may be required, from time to time.
Section 21. Audit
The Chairperson of the Commission on Audit (COA) shall appoint a representative and other subordinate personnel to perform and report on such audit duties, responsible to and removable only by the COA Chairperson.
Section 22. Establishment and Upgrading of Operational Systems
Within one (1) year after the approval of this Act and its implementing rules and regulations, the Authority shall establish and maintain the following systems and mechanisms to ensure the effective performance of its mandate:
Section 23. Transitory Provision
Nothing in this Act shall operate to abolish the Authority and affect the validity or legality of any right, duty, or obligation created by or in respect of the Authority prior to the effectivity of this Act. The Authority shall continue to assume all rights, obligations and liabilities that it had during the effectivity of its original character.
The DHSUD shall cause the Board to deliberate and reach agreements on the reorganization of the Authority, pursuant to Republic Act No. 11201, especially with regard to the mandates of the Authority and its relations to other key shelter agencies (KSAs) and LGUs. An advisory group composed of the GCG, NEDA, and the DHSUD shall assist the Board in formalizing the reorganization as it pertains to the Authority.
The DHSUD shall ensure the translation of the KSA reorganization into operational approaches, staffing patterns, and resources for the Authority. In support of the Board, the NEDA and GCG shall periodically evaluate the fitness of the programs, activities, projects, and personnel deployment of the Authority, corresponding to its revised role.
Section 24. Absorption or Separation from Service of Employees
The existing employees of the Authority holding permanent appointments shall enjoy security of tenure and be given priority by the Authority in filling up the positions that may be created upon the approval of the new organizational staffing pattern. The formulation of the new organizational staffing pattern shall be completed within one (1) year after the effectivity of this Act and implemented within a period of six (6) months thereafter.
Employees who opt to be separated from the service shall, within one (1) month from separation, receive separation benefits in accordance with existing laws. Those who are qualified may retire and be entitled to all the benefits provided under existing retirement laws.
Section 25. Mandatory Review
Five (5) years after the effectivity of this Act, and every five (5) years thereafter, the DHSUD, COA, and GCG shall conduct a systematic evaluation of the Authority, its performance, and organizational structure and, if necessary, recommend the reorganization, consolidation, or abolition and transition of the Authority. Indicators shall include housing production, occupancy rates, collection efficiency, number of families served, findings of the COA, and beneficiary feedback. This evaluation report shall be released and made available to stakeholders and the public.
Section 26. Implementing Rules and Regulations
The Authority shall formulate the implementing rules and regulations necessary to effectively carry out the provisions of this Act which shall be approved and promulgated by the Board of Directors of the Authority not later that ninety (90) days after the approval of this Act.
Section 27. Separability Clause
If any provision of this Act is declared invalid or unconstitutional, the remainder thereof not otherwise affected shall remain in full force and effect.
Section 28. Repealing Clause
Presidential Decree No. 757, series of 1975, as amended, is hereby repealed. All laws, presidential decrees, executive orders, letters of instruction, proclamations, or administrative regulations that are inconsistent with the provisions of this Act are hereby repealed, amended, or modified accordingly.
Section 29. Effectivity
This Act shall take effect fifteen (15) days after its publication in the Official Gazette or in a newspaper of general circulation.
Approved,
| (Sgd.) FERDINAND MARTIN G. ROMUALDEZ Speaker of the House of Representatives | (Sgd.) FRANCIS "CHIZ" G. ESCUDERO President of the Senate |
This Act was passed by the Senate of the Philippines as Senate Bill No. 2818 and adopted by the House of Representatives as an amendment to House Bill No. 10172 on February 3, 2025.
REGINALD S. VELASCO
Secretary General House of Representatives
RENATO N. BANTUG, JR.
Secretary of the Senate
Approved: MAY 29 2025
FERDINAND ROMUALDEZ MARCOS JR.
President of the Philippines
For information and research only, and not legal advice. This text may not reflect later amendments. For certified copies, refer to the Official Gazette or the issuing agency.