Sec. 2. The first two types of projects shall be self-liquidating projects, while the last two shall be non-self-liquidating and non-revenue-producing projects. When a slum area is to be acquired and cleared for construction of a low-cost housing project, the cost of acquiring and clearing the area shall be non-self-liquidating, while the cost of constructing the housing project thereon shall be self-liquidating.cralaw

Sec. 3. To bring the dwelling units in its housing projects within the reach of families belonging to the lowest economic class possible, the People's Homesite and Housing Corporation is authorized to amortize the cost of said projects for a period longer than, but not exceeding twice the redemption period of the bonds, and to contribute to the sinking fund under section two of Republic Act Numbered One thousand only the net income of said projects. However, when the bonds near maturity, the estimated deficiency and the People's Homesite and Housing Corporation contribution to the sinking fund shall be raised from another set of bonds to be sold under the provisions of this Act and Republic Act Numbered One thousand.

Sec. 4. Any housing project to be financed under this Act shall be undertaken through public bidding, but if there are no bidders or if the project can be executed at a reasonably lower cost than the lowest bid, such project may be executed by administration.cralaw

Sec. 5. The acquisition of landed estates that may be financed under this Act shall be limited only to urban lands intended for residential purposes, without prejudice to setting aside appropriate areas for public and semi-public areas needed by the community.cralaw

Sec. 6. The construction of housing for destitutes and paupers shall not be undertaken, unless the Social Welfare Administration or any government agency designated by the President to operate the same, is provided with, or assured of, funds to maintain and operate the same.cralaw

Sec. 7. All the projects of the People's Homesite and Housing Corporation financed under this Act shall be exempt from national and local taxes and fees of any kind.

Sec. 8. This Act shall take effect upon its approval.cralaw

Approved: June 16, 1955