THE Senate has advanced a legislative measure aimed at easing the country’s housing crisis by incentivizing private developers to construct affordable rental units for low-income households.
Sponsored by Senator Francis “Chiz” Escudero, Senate Bill No. 2507 passed its second reading on Wednesday, fulfilling a constitutional mandate for public-private cooperation in addressing national housing needs.
Highlighting Article XIII, Section 9 of the Constitution regarding urban land reform, Escudero stressed during his sponsorship speech that the state cannot tackle housing challenges alone.
The proposed “Affordable and Decent Rental Housing Incentives Act” provides str ategic incentives for private entities to develop, construct, rehabilitate, and operate budget-friendly housing options.
To qualify, housing providers must register and secure certification, offering units at regulated rental rates set by the Department of Human Settlements and Urban Development (DHSUD).
These rates will depend on household income, prevailing local market prices, and the size and type of the accommodation.
Participating developers and operators stand to gain a robust package of perks under SB 2507. These include Value-Added Tax (VAT) exemptions on leases, tax incentives under the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act, and a 25-percent tax credit on gross rental income for five years.
Furthermore, they can access preferential financing terms through the Pag-IBIG Fund, the Land Bank of the Philippines, and the Development Bank of the Philippines, backed by risk-sharing mechanisms like credit guarantees and interest subsidies.
The bill also authorizes the use of idle government lands and assets for affordable housing projects via usufruct, leases, concessions, and public-private partnership arrangements.
Escudero noted that these provisions harmonize public and private resources toward achieving decent housing for every Filipino family.
Ultimately, the measure is designed to expand market supply rather than merely enforce regulations.
Implementation funding will be integrated into the annual General Appropriations Act and corporate budgets of concerned government agencies.