The House of Representatives has approved on third and final reading the Housing Loan Restructuring and Condonation Act, a landmark measure that seeks to provide long-awaited relief to beneficiaries of socialized and low-cost housing programs.

Specifically, the measure establishes a comprehensive loan restructuring and condonation program covering housing loans under the National Housing Authority (NHA), Social Housing Finance Corporation (SHFC), National Home Mortgage Finance Corporation (NHMFC), and the Philippine Guarantee Corporation (PGC).

Hailing this development thsi plenary was Cavite 1st district Rep. Lani Mercado-Revilla, one of the primary authors of the measure.

Mercado-Revilla says the designed to give distressed homeowners a fair and realistic opportunity to keep their homes by easing the financial burden caused by accumulated interests, penalties, and surcharges.

“Marami sa ating mga kababayan ang gustong magbayad ng tama at tapat, pero nilamon na ng interes at penalties ang kanilang utang. Ang panukalang ito ay magbibigay na pagkakataon para sa kanila na makabangon at manatili sa sariling tahanan,” Mercado-Revilla said.

(Many of our fellow citizens want to pay correctly and honestly, but their debts have already been consumed by interest and penalties. This proposal will give them the chance to recover and remain in their own homes.)

Upon approval of a borrower’s application, existing interests, penalties, and surcharges may be condoned, while the restructured loan will be subject to a significantly lower interest rate to make monthly amortizations more affordable.

The bill also removes barriers to access by waiving processing fees and down payment requirements for borrowers applying for restructuring. Loan terms may be extended, within reasonable limits, to further reduce monthly amortizations and help prevent future defaults.

“Hindi dapat maging habambuhay na pasanin ang pabahay. Ang bahay ay pundasyon ng dignidad at seguridad ng pamilya, lalo na para sa mga low-income earners (Housing should not be a lifelong burden. A home is the foundation of a family’s dignity and security, especially for low-income earners),” stressed the lady solon.

Mercado-Revilla emphasized that the measure strikes a balance between compassion and responsibility, as she noted that many Filipino families genuinely want to meet their housing loan obligations but were overwhelmed by compounding charges beyond their control.

With its approval on third and final reading, the Housing Loan Restructuring and Condonation Act now moves closer to becoming law; the other legislative chamber, the Senate, needs to come up with a counterpart measure.

Once the Senate approves its measure on third and final reading, the two versions will be harmonized and then sent to the President for his signature.