Leyte Rep. Martin G. Romualdez has filed a bill seeking to grant a monthly rental housing subsidy to millions of homeless Filipinos, or informal settler families (ISFs). The proposal is contained in House Bill 7230 with Rep. Jude Acidre of TINGOG Party-list as co-principal author.
The proposed Rental Housing Subsidy Program Act would provide social protection and support to informal settler families or ISFs in accessing the formal housing market under the Department of Human Settlements and Urban Development (DHSUD).
Philippine housing policy has traditionally emphasized home ownership through socialized housing projects, largely implemented by the National Housing Authority under the supervision of the Department of Human Settlements and Urban Development. However, production bottlenecks, land constraints, and financing gaps have slowed delivery. HB 7230 represents a paradigm shift toward demand-side subsidies rather than purely supply-side construction.
In a situation where permanent housing projects often face delays (right-of-way issues, budget constraints, contractor inefficiencies), a rental subsidy acts as a bridging mechanism.
Our housing backlog is caused by rapid urbanization; rural-to-urban migration; high land prices in economic centers; and proliferation of informal settler families or ISFs in danger zones.
Under Republic Act No. 11201, DHSUD is mandated to coordinate housing policy, yet relocation often pushes ISFs to distant areas lacking jobs and vital services. This results in return migration to informal settlements.
The proposed P3,500/month subsidy seeks to improve location flexibility (near employment centers); reduces disruption to livelihood and schooling; and may reduce the cycle of informal reoccupation.
In Metro Manila, average room rentals in low-income communities range roughly from ₱2,500–₱6,000 monthly. A ₱3,500 cap is meaningful but not fully sufficient; it likely covers only partial rent in many areas.
Thus, its effectiveness depends on actual rental market conditions and beneficiary capacity to shoulder the balance
The bill also positions the subsidy as a mechanism for families displaced by natural disasters and temporary relocation from danger zones.
The bill does not directly increase housing supply.
Without parallel measures such as socialized rental housing development, incentives for low-cost rental construction, and land reform acceleration, the subsidy risks addressing symptoms rather than structural deficits.
Nevertheless, HB 7230, if passed into law, is a big step forward because it provides immediate relief amid a massive backlog, and enhances disaster-response flexibility.
Its long-term success will depend, however, on strict targeting and anti-corruption safeguards, controls against rental price distortion, and timely completion of permanent housing projects.
