Millions of low-income Filipinos stand to benefit on a proposed law that seeks to institutionalize free housing through usufruct, a legal arrangement that grants families the right to occupy and enjoy government land and housing without owning them.
Senator Francis “Chiz” Escudero pointed this out when he endorsed Senate Bill No. 2421 or the Free Housing Through Usufruct Act under Committee Report No. 79 on Wednesday, August 26. The bill is now pending second reading.
“Through usufruct, this bill seeks to grant Filipino families the right to occupy, use, and enjoy government land and improvements for residential purposes, while ownership remains with the State,” Escudero said of the measure.
Under the bill, only underprivileged, homeless citizens who do not own real property and have no affiliation with squatting syndicates will qualify, the chairman of the Senate Committee on Urban Planning, Housing and Resettlement further said.
Each usufruct agreement, Escudero said, will be covered by a written contract detailing rights and obligations, including maintenance of the property and payment of utilities.
“Section 5 outlines who may benefit from adequate and decent housing under this proposal: underprivileged Filipinos who do not own a home or real property, and who are not professional squatters or members of squatting syndicates,” Escudero said.
Under the bill, the housing units are strictly for residential use and warned that occupants cannot sell, transfer, mortgage, or rent out the units to others—acts that will cancel their right to use the property and ban them from government housing program for 10 years.
SB 2421 also requires registration of usufruct contracts with the Registry of Deeds, ensuring transparency and legal protection for beneficiaries.
Under the measure, the Department of Human Settlements and Urban Development (DHSUD) will monitor the implementation, while local government units (LGUs) will be tasked to manage properties and guarantee access to basic services.
Escudero said the bill is designed to prevent abuse while securing tenure for genuine beneficiaries.
“Each usufruct agreement is embodied in a written contract specifying the parties’ rights and obligations, as well as the conditions for the continued use and enjoyment of the property,” he said.
According to the senator, the concept of usufruct dates back to Roman civil law but remains relevant today as a tool to address the persistent problem of homelessness.
“If usufruct is the right to use a property and enjoy its fruits, may this proposal yield adequate and decent housing for the millions of Filipinos in need,” he emphasized.
