Millions of underprivileged Filipinos may soon secure safe, decent shelter through a proposed legislative measure that establishes free housing using usufruct—a legal arrangement permitting families to reside on government-owned property without acquiring land ownership.
Senator Francis “Chiz” Escudero presented Senate Bill No. 2421, titled the Free Housing Through Usufruct Act, under Committee Report No. 79 on Wednesday, August 26. The legislation has advanced to the Senate floor for 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 stated.
The chairperson of the Senate Committee on Urban Planning, Housing, and Resettlement clarified that the program strictly targets homeless, low-income citizens who possess no real estate and are unaffiliated with squatting syndicates.
“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 explained.
Under the bill, beneficiaries must sign a binding contract detailing their duties, which include paying for utilities and maintaining the units. The homes are restricted solely to residential use. Any attempt to sell, rent out, mortgage, or transfer the unit will lead to the immediate termination of usufruct rights and a 10-year ban from all state housing programs.
To guarantee legal enforceability, all usufruct agreements must be officially filed with the Registry of Deeds.
The Department of Human Settlements and Urban Development (DHSUD) will lead the program’s overall execution, while local government units (LGUs) will handle day-to-day property operations and utility access.
“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 noted.
Escudero highlighted that while usufruct originates from ancient Roman law, it serves as a modern, realistic tool to combat systemic homelessness in the Philippines.
“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 added.
