REPU BLIC
OF TH E PH ILIPPIN E5
Department of Human Settlements and Urban Development
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Pananahanang Pantao
DEPARTMENT CIRCULAR
Series of2022
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Kalunsaran
2022-00/
DECLARING THE PAMBANSANG PABAHAY PARA SA PILIPINO
(4PH) PROGRAM AS A PRIORITY PROGRAM OF THE DEPARTMENT OF
HUMAN SETTLEMENTS AND URBAN DEVELOPMENT (DHSUD) AND
PROVIDING GUIDANCE FOR THE IMPLEMENTATION THEREOF
WHEREAS, Section 9 of Article XIII of the Constitution ensures that underprivileged and
homeless citizens shall have access to an adequate, safe, secure, habitable, sustainable,
resilient and affordable homes;
WHEREAS, Section 2 of Republic Act (RA) No. 11201, otherwise known as the
"Department of Human Settlements and Urban Development Act', provides that "the
State shall, by Jawand for the common good, undertake, in cooperation with the private
sector, a continuing program of housing and urban development which shall make
available at affordable cost, decent housing and basic services to underprivileged and
homeless citizens in urban centers and resettlement areas';
WHEREAS, Section 2 of RA 11201 further ensures that"the State shall encourage on-site
developmentin the implementation ofhousingprograms and shallpromote the creation
ofnewsettlements and development ofsustainable urban renewalprograms.";
WHEREAS, Sub-paragraph V (g) of Section 5 of RA 11201 mandates DHSUD to
"implementprototypeprojectsin housing and urban development undertakings, with the
right to exercise the power ofeminent domain, when necessary";
WHEREAS, Section 4.3 of the Implementing Rules and Regulations of the RA 11201
mandates the DHSUD to develop and adopt a national strategy to address the provision
of adequate and affordable housing to all Filipinos, and ensure the alignment of the
policies, programs, and projects of all its Key Shelter Agencies (KSAs) to facilitate the
achievement of this objective;
WHEREAS, Cabinet Action/ Decision with File no. PBBM-081822-050 of the Office of the
President of the Philippines dated 18 August 2022 approved DHSUD's 4PH Program to
implement the Six Million Housing Priority Program;
WHEREAS, DHSUD undertakes to implement the Housing Priority Program pursuant to
the above cited laws, rules and regulations;
NOW, THEREFORE, this Department Circular is hereby issued to provide general
direction in the adoption and implementation of the Pambansang Pabahay Para sa
Pilipino (4PH) Program:
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Section 1. Objectives. This Department Circular aims to:
1.1 Provide an overview of 4PH Program, more specifically its vertical housing
emphasis, and its key features;
1.2 Direct all the offices of DHSUD and its KSAs to align their policies, programs,
targets and priorities to support the implementation of the 4PH Program; and
1.3 Identify the roles and responsibilities of DHSUD and its KSAs, the National
Government Agencies, Local Government Units (LGUs), Government Financial
Institutions (GFls), private banks and other stakeholders in the implementation
of the 4PH Program.
Section 2. Declaring the "Pambansang Pabahay Para sa Pilipino (4PH) Program" as a
Priority Program of the Department. The 4PH Program is hereby declared a Priority
Program of the DHSUD. The 4PH Program shall have the following key features:
2.1 Target the development of 1,000,000 housing units every year for the next six (6)
years, starting January 2023;
2.2 Prioritize the lowest 30% income decile of the population and low wage earners
as primary beneficiaries of the 4PH Program;
2.3 Pursue innovative strategies to make housing finance accessible and housing units
affordable to the target beneficiaries, through but not limited to the following:
a. Allocate government funds for the payment of housing interest support to
lower the monthly interest rate payment of qualified program beneficiaries;
b. Utilize vacant, idle, blighted and/or under-utilized government and privateowned lands for housing and mixed-use development;
c. Tap government financing institutions (GFis) and private banks to provide
development loans & end-user financing; and
ct. Optimize the use of lands, especially in highly urbanized cities and component
cities by prioritizing vertical housing and mixed-use development following
the township development model;
e. Promote varied forms of modalities in implementing housing and mixed-use
development.
2.4 Capacitate and support the LGUs as one of the main project proponents in
implementing housing projects; and
2.5 Encourage and incentivize the private sector to participate in the 4PH program/
project implementation.
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Section 3. Coverage. This Circular shall cover all DHSUD Offices, its KSAs, LGUs, and other
national government agencies (NGAs), government financial institutions, and other
stakeholders that are concerned in the formulation, implementation, and monitoring and
evaluation of the 4PH Program.
Section 4. Roles and Responsibilities. The roles and responsibilities of the implementing
agencies pursuant to their respective charters and governing laws are, but not limited to,
the following:
4.1 DHSUD
a. Act as the implementor, initiator, coordinator, and facilitator of the 4PH
Program;
b. Assign 4PH Program housing production targets to its KSAs which shall form
part of their Performance Commitments;
c. Provide housing design specifications, parameters, and price ceilings for
projects enrolled under the 4PH Program;
d. Facilitate the allocation of funds for interest subsidy payment in the General
Appropriations Act (GAA) and other potential fund sources to make the
monthly amortizations affordable to the qualified beneficiaries;
e. Coordinate with KSAs, LGUs, GFis, private banks, and stakeholders to ensure
the implementation of the 4PH Program;
f. Develop policies and programs together with its KSAs, LGUs, and NGAs and
GFis to provide incentives and promote private sector participation in the 4PH
Program;
g. Extend support and technical assistance to the LGUs, developers, and other
program partners such as but not limited to the simplification of
documentation and establishment of express lanes for the issuance of national
and local permits and clearances for projects under the 4PH Program; and
h. Oversee and monitor the implementation of projects under the 4PH Program.
4.2 HOME DEVELOPMENT MUTUAL FUND (HDMF), PARTICIPATING GOVERNMENT
FINANCIAL INSTITUTIONS (GFIS) AND PRIVATE BANKS
a. Allocate funds for the 4PH Program, such as for developmental loans and/or
end-user financing; and
b. Simplify the guidelines and requirements to facilitate the access to financing
by the LGUs, developers/contractors and homebuyers.
4.3 NATIONAL HOUSING AUTHORITY (NHA) AND SOCIAL HOUSING FINANCE
CORPORATION (SHFC)
a. As landowners, enter into appropriate partnership agreements with the
concerned partner LG Us and other partner institutions/ entities;
b. As a developer and/or project manager, implement projects in coordination
with the LGUs and other groups according to the roles and responsibilities as
may be agreed by the parties involved; and
c. Provide support to the LGUs in the social preparation, project development,
and other assistance needed by the LG Us; and
d. Develop supporting policies and programs as may be applicable and allowed
under their mandate to achieve their target housing production and other
deliverables for the 4PH Program.
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4.4 NATIONAL HOME MORTGAGE FINANCE CORPORATION (NHMFC)
Support the financial sustainability of the 4PH Program by (1) providing liquidity
to GFis and private banks through purchase of eligible Contract-to-Sell (CTS) and
Real Estate Mortgages (REMs) among others, and securitize such loan portfolios,
and (2) issue asset-backed securities to attract more funds for housing.
4.5 PARTICIPATING LOCAL GOVERNMENT UNITS(LGUs)
a. Act as the lead/ main proponent in the implementation of the housing projects
under the 4PH Program;
b. Identify suitable sites for the housing and mixed-use development;
c. Apply for developmental loans for the housing project subject to applicable
laws, government rules, and requirements;
d. Identify, select, and facilitate the application of target housing beneficiaries
under the program;
e. Develop the project concept, following DHSUD's design specifications and
price ceiling parameters; and
f. Formulate local policies and programs to support and facilitate project
financing, construction, and property management including necessary
financial and social services assistance for the target beneficiaries.
4.6 Other Concerned Government Agencies and Stakeholders. Participation and
engagement hereto of the other concerned government agencies and
stakeholders, as the case maybe, shall be subject to their respective mandate,
nature, and powers.
Section 5. Price Ceiling. The Price Ceilings for the 4PH program, specifically for units
within multi-rise buildings, shall be based on the Joint Determination set by DHSUD and
NEDA pursuant to RA 11201.
Section 6. Project Monitoring. DHSUD reserve its right to exercise random and or periodic
site inspection to verify compliance with standards and specification of the development
plan of the 4PH Program.
Participating LGUs, developers, and/or contractors shall submit to DHSUD monthly
accomplishment report based on its progress billing.
Section 7. Property Management Operations: Trust Account DHSUD may create
specialized account, as it may deem fit, in trust of its beneficiaries to defray the cost and
expenses of initial property management and maintenance of the 4PH program.
Section 8. Formulation of the Implementing Guidelines for the 4PH Program (Operations
Manual). The department shall formulate the 4PH Program Operations Manual in
coordination with the concerned KSAs and partner institutions. The Operations Manual
shall contain the details on the requirements and processes for the implementation of the
program, roles of participating organizations and other pertinent documents for the
reference of the program partners.
Section 9. Repealing Clause. All provisions of existing issuance that are inconsistent with
this Department Circular are hereby repealed/amended accordingly.
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Section 10. Effectivity. This Department Circular shall take effect immediately upon its
publication in a newspaper of general circulation and after certified copies hereof are
furnished to the Office of the National Administrative Register at the University of the
Philippines Law Center pursuant to Executive Order No. 292, otherwise known as the
Administrative Code of 1987.
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Records Division
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