WHEREAS, a
prime concern of the New Society is the quality of human life, which
cannot be improved without providing the citizens with sufficient human
shelters and structures;chanroblesvirtualawlibrary
WHEREAS, the Constitution of the Philippines, in its Article II,
Section 7, mandates that: "The State shall establish, maintain, and
ensure adequate social services in the field of.housing.to
guarantee the enjoyment by the people of a decent standard of living;"
WHEREAS, the government has concentrated its efforts in establishing
decent human settlements and in uplifting the conditions in our
communities;chanroblesvirtualawlibrary
WHEREAS, up to this time there exist an acute housing shortage which
has remained a persistent problem due to the burgeoning population, the
absence of adequate house financing, and increasing construction costs,
which place satisfactory housing beyond the reach of the masses;chanroblesvirtualawlibrary
WHEREAS, there is an urgent need to provide massive financing to help
solve the housing problem that impedes national development; and
WHEREAS, the difficulties in house financing may be greatly alleviated
by establishing a system of voluntary contributions from government and
private employees.
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Republic of
the Philippines, by virtue of the powers vested in me by the
Constitution, do hereby order and decree the following:cralaw:red
Section 1. There are hereby created the Home
Development Mutual Funds, one for the government employees and the
other for private employees.
Section 2. The Fund for government employees shall
be established and maintained by the contributions of government
employees and the National Government to be administered by the
Government Service Insurance System (GSIS) separately from all its
other funds.
The Home Development Mutual Fund for private employees shall be
established and maintained by the contributions of private employees
and their respective employers, to be administered by the Social
Security System (SSS). With respect to the government and private
employees, their contributions shall be on a voluntary basis, based on
three per cent (3%) of their basic salaries. The National Government
and the employer concerned shall give a counterpart contribution
equivalent to the amount collected from their employees.
Section 3. An employee who contributes to the Fund
in accordance with the rules and regulations to be adopted by the GSIS
or the SSS, shall be considered a member thereof. He shall be a member
of good standing if he is up to date in his monthly contributions. The
employee's contributions shall earn interest annually at such rate as
shall be provided in the implementing rules and regulations of this
Decree. In case the financial condition of the Fund warrants, as
determined by the GSIS or the SSS, dividends from the surplus profits
of the Fund may be distributed annually to members of good standing.
Section 4. An employee who is a member of good
standing shall be eligible to apply with the Fund for a housing loan,
subject to the rules and regulations to be adopted by the GSIS or the
SSS.
Section 5. The loan shall be secured by a real
estate mortgage. The amount of the loan shall be equivalent to eighty
per cent (80%) of the appraised value of the collateral, but not to
exceed P80,000.00, subject to the applicant's paying capacity and such
other requirements which may be imposed by the GSIS or the SSS.
Section 6. All moneys of the Fund, as are not needed
to meet current administrative and operational requirements, shall be
invested with due and prudent regard for the liquidity need of the
Fund.
Section 7. The GSIS or the SSS may contribute to the
Fund its lands and the housing units thereon, if any at their appraised
values for developmental purposes for resale to qualified employees.
All contributions of the GSIS or the SSS shall earn interest on a
yearly basis as shall be provided in their respective implementing
rules and regulations of this Decree. chanroblesvirtualawlibrary
Section 8. Notwithstanding any provision of existing
law, decree executive or administrative order, rule or regulation to
the contrary, the Fund, as well as the interests and dividends received
by the members thereof, shall be exempt from the payment of any and all
forms of taxes, tariffs and duties, fees, imposts and assessments, and
other charges, and no law hereafter enacted shall repeal this provision
unless it is provided therein that the same is applicable to the Fund
by specifically stating its name.
Section 9. The GSIS or the SSS shall advance such
amounts necessary for the initial operation of the Fund it respectively
administers, which shall also earn interest as provided in Section 7
hereof.
Section 10. In case a member of the Fund is
separated from the service by reason of retirement, death, disability,
resignation or dismissal, he shall cease to be a member of the Fund,
provided, however, that he may continue at the option of the GSIS or
the SSS to be a member of the Fund, and provided, further, that in any
event, if the separated employee has an existing real estate mortgage
loan with the Fund at the time of his separation, the real estate
mortgage shall continue to be valid and subsisting until fully
liquidated but the member-mortgagor must continue paying monthly
contributions based on his last salary received prior to
separation. chanroblesvirtualawlibrary
Section 11. In case an employee ceases to be a
member of the Fund due to retirement, death, disability and separation
from the service, he shall be entitled to a return of his contributions
in accordance with the implementing rules and regulations.
Section 12. The GSIS or the SSS shall respectively
promulgate the necessary rules and regulations to implement this
Decree.
Section 13. The GSIS or the SSS is hereby authorized
to employ such executives and workers as may be necessary for the
administration of the Fund and/or for the implementation of the
objectives of this Decree. Such executives and workers shall not be
subject to the Civil Service Law and the rules and regulations of the
Wage and Position Classification Office and Section two hundred
fifty-nine of the Revised Administrative Code.
Section 14. Any provision of law, decree, executive
order, rule or regulation in conflict with, or contrary to this Decree
or its purposes, is hereby repealed or modified accordingly.
Section 15. This Decree shall take effect upon its
approval.
Done in the City of Manila,
this 11th day of June, in the year of Our Lord, nineteen hundred and
seventy-eight.
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