Republic of the Philippines DEPARTMENT OF THE INTERIOR AND LOCAL GOVERNMENT DILG-NAPOLCOM Center, EDSA corner Quezon Avenue, Quezon City M E S S A G E Housing is a basic human right. It is also a prerequisite for the dignity of the person and for the peace and economic development of the nation. It has been quite a while since Housing was devolved to Local Government Units by virtue of the Local Government Code (1991) and the Urban Development and Housing Act (1992) It is a legacy of the late Secretary Jess Robredo for LGUs to assume this responsibility. He advocated and succeeded in the allocation of Php50 Billion to provide safe, decent and affordable housing accessible to employment for the 104,000 informal settler families who live in the danger zone of the National Capital Region. It was also the dream of Secretary Robredo that this cascades to all over the country. Let me congratulate and thank DILG Region III for continuing this legacy. FRANCISCO L. FERNANDEZ Undersecretary for the Urban Poor, ISFs and Other Special Concerns
Transcript
Republic of the Philippines DEPARTMENT OF THE INTERIOR AND LOCAL GOVERNMENT DILG-NAPOLCOM Center, EDSA corner Quezon Avenue, Quezon City
M E S S A G E
Housing is a basic human right. It is also a prerequisite for the dignity of the person and for the peace and economic development of the nation.
It has been quite a while since Housing was devolved to Local Government Units by virtue of the Local Government Code (1991) and the Urban Development and Housing Act (1992)
It is a legacy of the late Secretary Jess Robredo for LGUs to assume this responsibility.
He advocated and succeeded in the allocation of Php50 Billion to provide safe, decent and affordable housing accessible to employment for the 104,000 informal settler families who live in the danger zone of the National Capital Region.
It was also the dream of Secretary Robredo that this cascades to all over the country.
Let me congratulate and thank DILG Region III for continuing this legacy.
FRANCISCO L. FERNANDEZ Undersecretary for the Urban Poor, ISFs and Other Special Concerns
Republic of the Philippines DEPARTMENT OF THE INTERIOR AND LOCAL GOVERNMENT
NATIONAL BARANGAY OPERATIONS OFFICE DILG-NAPOLCOM Center, EDSA corner Quezon Avenue, Quezon City
M E S S A G E
More than two decades ago, Republic Act 7279 otherwise known as the Urban and Development Housing Act (UDHA) was passed into law devolving to Local Government Units the mandate to implement housing programs. However, until today, only few Local Government Units have been successful or have venture in implementing their own local housing program despite the availability of funds from different key shelter agencies. Most often, the lack of technical capabilities and
reference materials to guide our LGUs results in these lost opportunities. I therefore commend the Department of the Interior and Local Government Region III, under the stewardship of Regional Director Florida M. Dijan, for coming out with this guidebook entitled: “Q & A on Local Housing Laws, Programs and Organizations” as a reference to guide our LGUs towards the successful implementation of their housing programs. I am very optimistic that through this very informative material our LGUs will be further strengthened in undertaking their mandate under the law and effectively implement their plans and programs towards the welfare of our fellow Filipino. Together, let us all strive for excellence in local governance!
LEOCADIO T. TROVELA, CESO IV OIC Director
Republic of the Philippines
DEPARTMENT OF THE INTERIOR AND LOCAL GOVERNMENT Region III
M E S S A G E
It is my great privilege to introduce this guidebook entitled “Q & A on Local Housing Laws, Programs and Organizations”.
This guidebook which is an initiative of the Department of the Interior and Local Government of Region 3 in collaboration with the Housing and Urban Development Coordinating Council which contains essential information about housing and urban development.
Today, more than ever, there is a great need for the national government, private organizations and LGUs to address the prevailing problem on informal settler which has now become a national concern.
With Capacity Development in mind, it is our desire, therefore, to assist the local government units to familiarize themselves with the Urban Development and Housing Act since its effectivity in 1992 and other related laws, and to address the gap by answering their frequently asked questions relative to the preparation of their housing and development plan. May this guidebook, organized to be reader friendly, inspire our local government executives, local development planners and other stakeholders, to come-up with a more feasible and comprehensive plan for their constituents.
Mabuhay po ang mga LGUs!
FLORIDA M. DIJAN, DPA, CESO III Regional Director, DILG Region 3
Republic of the Philippines HOUSING AND URBAN DEVELOPMENT COORDINATING COUNCIL
M E S S A G E
A little more than two decades following the enactment of the Local Government Code (LGC) of 1991 (RA 7160) and the Urban Development and Housing Act (UDHA) of 1992 (RA 7279), landmark pieces of legislation which clothed local government units (LGUs) with enormous powers to chart their own destinies, the Department of the Interior and Local Government (DILG) and the Housing and Urban Development Coordinating Council (HUDCC) have taken one bold step forward by forging a new partnership that would once and for all pool their respective resources to jointly address the pressing issues of informal settlements as well as the other equally crucial local housing concerns.
The pristine alliance has expectedly gone through some long hurdles but the gains it has initially won have far outweighed the challenges it has encountered along the way. More particularly, the DILG-HUDCC collaborative efforts in Region III have so far resulted in the conduct of Orientation-Seminars on UDHA (RA 7279) and Local Housing Board (LHB) to a total of 99 LGUs, Trainings on the Development of Local Shelter Plan (LSP) benefitting some 37 LGUs, and LSP Writeshops for 25 cities and municipalities, all within the last three quarters of CY 2013.
To further assist the LGUs in the planning process and make them more aware of existing laws and programs pertaining to housing and urban development, the DILG-HUDCC tandem in Region III agreed to develop an information material that would answer specific questions that LGU planners, policy and decision-makers would be very much eager to ask and would earnestly like to be enlightened on. The accompanying primer, “Q & A on Local Housing Laws, Programs and Organizations,” is one such material as it is written down in a reader-friendly question-and-answer format interspersed with visual aids to help the reader better understand its textual contents.
We sincerely hope that this guidebook will in no small measure help its intended end-users and that the LGUs concerned will greatly benefit from the valuable pieces of information it contains, particularly insofar as these significant facts and figures would contribute to their crafting of well-researched local shelter plans and aid them immensely in the drawing up of appropriate local housing programs and projects for the benefit of their homeless and underprivileged constituents.
Lastly, allow us the liberty of expressing our gratitude, both deep and abiding, to DILG Region III for its unwavering support to our novel partnership and for making the publication of this instructive material a reality.
ATTY. ALVIN T. CLARIDADES Director IV, HUDCC
Head, PRIACT for Region III
ACKNOWLEDGEMENT
The Department of the Interior and Local Government Region 3 wishes to extend
its earnest appreciation to all the partnering agencies that make this magnificent project feasible;
to Housing and Urban Development Coordinating Council (HUDCC) for relentlessly working hand-in-hand with the Department and for providing the necessary technical assistance in the development of the Local Shelter Plan (LSP) which we both hope to pave the way in resolving the challenges of formal and informal settlers;
to Housing and Land Use Regulatory Board (HLURB) for supplementing LGU’s with the technical assistance on Comprehensive Land Use Plan (CLUP) preparation and updating which is necessary to determine how to make proper and diligent use of the lands within their territories; and
to National Housing Authority (NHA), Home Development Mutual Fund (HDMF) and Social Housing Finance Corporation (SHFC) for guiding various local government units (LGUs) on their systems and processes on how they can avail of the housing funds that their respective agencies provide to be able to turn these plans into actualities.
Again, thank you very much and let us not cease in joining hands until we turn this dream into reality.
Mabuhay!!!
TABLE OF CONTENTS
PART 1 - LEGAL PROVISIONS ON LOCAL HOUSING AND RELATED
CONCERNS
1.1. Urban Development and Housing Act 1 - 13
1.2. Comprehensive and Integrated Shelter Finance Act 13 - 15
1.3. Local Government Code 15 - 18
PART 2 - LOCAL HOUSING ORGANIZATIONAL STRUCTURE
2.1. Local Housing Board 18 - 21
2.2. Local Housing Office 21 - 22
PART 3 - NATIONAL GOVERNMENT ASSISTANCE TO LOCAL HOUSING
3.1. National Government Agencies – Existing Programs for LGUs 22
3.2. Housing and Land Use Regulatory Board (HLURB)- Technical
Assistance to LGUs for CLUP Preparations and Updating 22 - 27
3.3. National Housing Authority (NHA) – Partnership Program
for LGUs 28 - 34
3.4. Social Housing Finance Corporation (SHFC) – Community
Mortgage Program (CMP) and Localized CMP for LGUs 34 - 39
3.5.1 Home Development Mutual fund (HMDF or Pag-IBIG Fund) – Group Housing Loan Program (GHLP) for LGUs 39 - 43
3.5.1 Home Development Mutual fund (HMDF or Pag-IBIG Fund) – End-User Home Financing Program (EHFP) 44 - 46
Q & A on Local Housing Laws, Programs and Organizations 1
PART I – LEGAL PROVISIONS ON LOCAL HOUSING AND RELATED CONCERNS
1.1 Urban Development and Housing Act (UDHA) of 1992 (Republic Act No. 7279)
QQ:: What is the policy of the state with respect to undertaking a comprehensive and continuing Urban Development and Housing Program at the local government level pursuant to Republic Act No. 7279 or
the Urban Development and Housing Act (UDHA) of 1992?
AA:: It shall be the policy of the State to undertake, in cooperation with the private sector, a comprehensive and continuing Urban Development and
Housing Program which shall improve the capability of Local Government Units (LGUs) in undertaking urban development and housing programs and projects. [Sec. 2 (f), RA 7279].
QQ:: What are “Resettlement areas”?
AA:: “Resettlement areas” are those identified by the appropriate national agency or by the LGU, with respect to areas within its jurisdiction, which shall be used for the relocation of the underprivileged and homeless
citizens. [Sec. 3 (n), RA 7279].
QQ:: Which lands are covered by the Urban Development and Housing Program
of the state envisioned under UDHA?
AA:: All lands in urban and urbanizable areas, including existing areas for priority development, zonal improvement sites, slum improvement and
resettlement sites, and other areas that may be identified by the LGUs as suitable for socialized housing, shall be covered under the Program. [Sec. 4, RA 7279].
QQ:: Which lands, among others, are exempt from the coverage of UDHA?
AA:: Lands used, reserved or otherwise set aside for government offices, facilities and other installations, whether owned by the National Government, its agencies and instrumentalities, including government-
owned or controlled corporations, or by the LGUs, shall be exempt from the coverage of UDHA: Provided, however, That the said lands, or portions thereof, which have not been used for the purpose for which they
have been reserved or set aside for the past ten (10) years from the effectivity of UDHA, shall be covered by said law. [Sec. 4, RA 7279].
Q & A on Local Housing Laws, Programs and Organizations 2
QQ:: What is a National Urban Development and Housing Framework (NUDHF)?
AA:: The NUDHF is the comprehensive plan for urban and urbanizable areas aimed at achieving the objectives of the Urban Development and Housing
Program of the state. [Sec. 5, RA 7279].
QQ:: What agency is tasked to formulate the NUDHF?
AA:: The Housing and Land Use Regulatory Board (HLURB) under the direction of the Housing and Urban Development Coordinating Council (HUDCC), in coordination with all LGUs and other concerned public and
private sectors, shall formulate the NUDHF within one (1) year from the effectivity of UDHA. [Sec. 5, RA 7279].
QQ:: What are the key factors to be considered in the formulation of the NUDHF?
AA:: In the formulation of the NUDHF, a review and rationalization of existing town and land use plans, housing programs, and all other projects and activities of government agencies and the private sector which may
substantially affect urban land use patterns, transportation and public utilities, infrastructure, environment and population movements shall be undertaken with the concurrence of the LGUs concerned. [Sec. 5, RA
7279].
QQ:: When should the LGUs conduct inventories of lands in their localities?
AA:: All city and municipal governments shall conduct an inventory of all lands and improvements thereon within their respective localities within one (1) year from the effectivity of UDHA. [Sec. 7, RA 7279].
QQ:: What lands should the inventory include?
AA:: The inventory shall include: a) Residential lands; b) Government-owned lands, whether owned by the National Government or any of its subdivisions, instrumentalities, or agencies, including government-owned
or controlled corporations and their subsidiaries; c) Unregistered or abandoned and idle lands; and d) Other lands. [Sec. 7, RA 7279].
QQ:: What specific data or information should the concerned LGUs indicate in their inventories?
Q & A on Local Housing Laws, Programs and Organizations 3
AA:: The LGUs concerned, in coordination with the HLURB and with the assistance of the appropriate government agencies, shall indicate in their
inventories the type of land use and the degree of land utilization, and other data or information necessary to carry out the purposes of UDHA. [Sec. 7, RA 7279].
QQ:: Which national government agency (NGA) should the LGU furnish a copy of its land inventory and for what purpose?
AA:: Each LGU shall, for planning purposes, furnish the HUDCC a copy of its inventory. [Sec. 7, RA 7279].
QQ:: How often should the LGU update its land inventory?
AA:: The inventory shall be updated every three (3) years. [Sec. 7, RA 7279].
QQ:: What should the LGUs do after the conduct of the inventory?
AA:: After the inventory, the LGUs, in coordination with the National Housing Authority (NHA), the HLURB, the National Mapping Resource Information Authority (NAMRIA), and the Land Management Bureau (LMB), shall
identify lands for socialized housing and resettlement areas for the immediate and future needs of the underprivileged and homeless in the urban areas. [Sec. 7, RA 7279].
QQ:: What factors should the LGUs take into consideration in their identification of sites for socialized housing?
AA:: The LGUs shall factor in the degree of availability of basic services and facilities, their accessibility and proximity to job sites and other economic opportunities, and the actual number of registered beneficiaries. [Sec. 8,
RA 7279].
QQ:: What should be done with government lands identified in the inventory as
idle lands?
AA:: Government-owned lands which have not been used for the purpose for
which they have been reserved or set aside for the past ten (10) years from the effectivity of UDHA and identified as suitable for socialized housing shall immediately be transferred to the NHA, subject to the
approval of the President of the Philippines or by the LGU concerned, as the case may be, for proper disposition in accordance with said law. [Sec. 8, RA 7279].
Q & A on Local Housing Laws, Programs and Organizations 4
QQ:: In the acquisition of lands for socialized housing, what type of land acquisition or development should the LGUs give priority to?
AA:: Where on-site development is found more practicable and advantageous to the beneficiaries, the priorities mentioned in Section 9 of UDHA shall
not apply. The LGUs shall give budgetary priority to on-site development of government lands. [Sec. 9, RA 7279].
QQ:: How should the LGUs acquire government-owned and foreclosed properties for the purpose of socialized housing?
AA:: For the purpose of socialized housing, government-owned and foreclosed
properties shall be acquired by the LGUs or by the NHA primarily through negotiated purchase: Provided, That qualified beneficiaries who are actual occupants of the land shall be given the right of first refusal. [Sec. 10, RA
7279].
QQ:: What are the schemes that the NHA and the LGUs may adopt for the
disposition of lands to the beneficiaries of the Urban Development and Housing Program?
AA:: The NHA, with respect to lands belonging to the National Government, and the LGUs, with respect to the other lands within their respective localities, shall coordinate with each other to formulate and make
available various alternative schemes for the disposition of lands to the beneficiaries of the Program. These schemes shall not be limited to those involving transfer of ownership in fee simple but shall include lease, with option to purchase, usufruct or such other variations as the LGUs or NHA
may deem most expedient in carrying out the purposes of UDHA. [Sec. 12, RA 7279].
QQ:: How should lands owned by the government be disposed of to their occupants?
AA:: Lands, including any improvements thereon, owned by the National Government or any of its agencies or instrumentalities and/or the LGUs, are allowed to be disposed of through direct negotiated sale to the
occupants thereof without need of public bidding, subject to the following conditions: a) The lands are within a residential zone as classified by the LGU concerned; b) X x x; c) The occupants are qualified beneficiaries in
accordance with Sec. 16 of UDHA and are registered as such by the LGU concerned in accordance with Sec. 17 of UDHA. [Sec. 12, RA 7279].
Q & A on Local Housing Laws, Programs and Organizations 5
QQ:: What factor/s should be considered in the valuation of lands for socialized housing?
AA:: For sites already occupied by qualified Program beneficiaries, the blighted status of the land as certified by the LGU or the NHA shall be factored
into the valuation by the Department of Finance (DOF). [Sec. 13, RA 7279].
QQ:: Which government agency is mandated to coordinate with the LGUs in designing a system for the registration of socialized housing beneficiaries?
AA:: The HUDCC, in coordination with the LGUs, shall design a system for the
registration of qualified Program beneficiaries in accordance with the NUDHF. [Sec. 17, RA 7279].
QQ:: Within what period should the identification and registration of socialized housing beneficiaries be conducted by the LGUs?
AA:: The LGUs shall identify and register all beneficiaries within their respective localities within one (1) year from the effectivity of UDHA. [Sec. 17, RA 7279].
QQ:: What is “Balanced Housing Development”?
AA:: This is a provision under Sec. 18 of UDHA whereby developers of proposed subdivision projects shall be required to develop an area for socialized housing equivalent to at least twenty percent (20%) of the total subdivision area or total subdivision project cost, at the option of the
developer, within the same city or municipality, whenever feasible, and in accordance with the standards set by the HLURB and other existing laws. [Sec. 18, RA 7279].
QQ:: In what other way may the developers concerned comply with the “Balanced Housing Development” provision of UDHA?
AA:: The balanced housing development may also be complied with by the developers concerned through, among other alternative modes, joint-
venture projects with either the LGUs or any of the housing agencies. [Sec. 18, RA 7279].
QQ:: What incentive/s may be extended to the private sector participating in socialized housing on the basis of certifications issued by the LGUs pertaining to lands donated by the former for socialized housing purposes?
Q & A on Local Housing Laws, Programs and Organizations 6
AA:: To encourage greater private sector participation in socialized housing and
further reduce the cost of housing units for the benefit of the underprivileged and homeless, the private sector participating in socialized housing shall be exempt from the payment of, among others, donor’s tax
for lands certified by the LGUs to have been donated for socialized housing purposes. [Sec. 20, RA 7279].
QQ:: What government agencies are principally mandated by law to provide socialized or resettlement areas?
AA:: The LGU or the NHA, in cooperation with the private developers and
concerned agencies, shall provide socialized housing or resettlement areas. [Sec. 21, RA 7279].
QQ:: What basic services should socialized housing or resettlement areas be provided with?
AA:: Socialized housing or resettlement areas shall be provided with the following basic services and facilities: a) Potable water; b) Power and electricity and an adequate power distribution system; c) Sewerage
facilities and an efficient and adequate solid waste disposal system; and d) Access to primary roads and transportation facilities. [Sec. 21, RA 7279].
QQ:: What other basic services and facilities should be planned and given priority for implementation?
AA:: The provision of other basic services and facilities such as health, education, communication, security, recreation, relief and welfare shall be planned and shall be given priority for implementation by the LGU and
concerned agencies in cooperation with the private sector and the beneficiaries themselves. [Sec. 21, RA 7279].
QQ:: What should the LGU primarily ensure in the provision of those basic services and facilities?
AA:: The LGU, in coordination with the concerned national agencies, shall ensure that these basic services are provided at the most cost-efficient rates, and shall set a mechanism to coordinate operationally the thrusts,
objectives and activities of other government agencies concerned with providing basic services to housing projects. [Sec. 21, RA 7279].
Q & A on Local Housing Laws, Programs and Organizations 7
QQ:: How should the LGUs guarantee the participation of Local Housing Program beneficiaries in the decision-making process?
AA:: The LGUs, in coordination with the Presidential Commission for the Urban Poor (PCUP) and concerned government agencies, shall afford Program
beneficiaries or their duly designated representatives an opportunity to be heard and to participate in the decision-making process over matters involving the protection and promotion of their legitimate collective
interests which shall include appropriate documentation and feedback mechanisms. They shall also be encouraged to organize themselves and undertake self-help cooperative housing and other livelihood activities. They shall assist the Government in preventing the incursions of
professional squatters and members of squatting syndicates into their communities. [Sec. 23, RA 7279].
QQ:: Are the LGUs empowered by law to take action against professional squatters and squatting syndicates?
AA:: Yes. The LGUs, in cooperation with the Philippine National Police (PNP), the PCUP, and the PCUP-accredited urban poor organization in the area, shall adopt measures to identify and effectively curtail the nefarious and
illegal activities of professional squatters and squatting syndicates, as defined in UDHA. [Sec. 27, RA 7279].
QQ:: What is required of the LGUs in the implementation of eviction or demolition orders involving underprivileged and homeless citizens?
AA:: In the execution of eviction or demolition orders involving underprivileged
and homeless citizens, the following shall be mandatory on the part of the LGUs: (a) Presence of local government officials or their representatives during eviction or demolition; and, (b) Provision of adequate relocation,
whether temporary or permanent. [Sec. 28, RA 7279].
QQ:: What action/s should be undertaken by the concerned LGU in cases of
eviction and demolition involving the underprivileged and homeless citizens pursuant to a court order?
AA:: In cases of eviction and demolition pursuant to a court order involving underprivileged and homeless citizens, relocation shall be undertaken by the LGU concerned and the NHA with the assistance of other government
agencies within forty-five (45) days from service of notice of final judgment by the court, after which period the said order shall be executed. [Sec. 28, RA 7279].
Q & A on Local Housing Laws, Programs and Organizations 8
QQ:: What should the concerned LGU do in case relocation is not possible within the 45-day period?
AA:: Should relocation not be possible within the said period, financial assistance in the amount equivalent to the prevailing minimum daily wage
multiplied by sixty (60) days shall be extended to the affected families by the LGU concerned. [Sec. 28, RA 7279].
QQ:: Within what period should the LGUs relocate and resettle persons living in danger areas?
AA:: The LGUs, in coordination with the NHA, shall implement the relocation
and resettlement of persons living in danger areas such as esteros, railroad tracks, garbage dumps, riverbanks, shorelines, waterways, and in other public places such as sidewalks, roads, parks and playgrounds
within two (2) years from the effectivity of UDHA. [Sec. 29, RA 7279].
QQ:: In the implementation of the relocation and resettlement of persons living
in danger areas, what should the LGU provide?
AA:: The LGU, in coordination with the NHA, shall provide relocation or
resettlement sites with basic services and facilities and access to employment and livelihood opportunities sufficient to meet the basic needs of the affected families. [Sec. 29, RA 7279].
QQ:: Which of the LGUs are tasked under UDHA to enforce the prohibition against new illegal structures?
AA:: After the effectivity of UDHA, the barangay, municipal or city government units shall prevent the construction of any kind or illegal dwelling units or structures within their respective localities. [Sec. 30, RA 7279].
QQ:: Who should be held administratively and criminally responsible for allowing the construction of such new illegal structures?
AA:: The head of any LGU concerned who allows, abets or otherwise tolerates the construction of any structure in violation of Sec. 30 of UDHA shall be
liable to administrative sanctions under existing laws and to penal sanctions provided for under UDHA. [Sec. 30, RA 7279].
QQ:: What privileges or incentives may be granted to Government-Owned or Controlled Corporations (GOCCs) and LGUs which participate in the Community Mortgage Program (CMP)?
Q & A on Local Housing Laws, Programs and Organizations 9
AA:: To encourage its wider implementation, GOCCs and LGUs participating in the CMP may dispose of their idle lands suitable for socialized housing
under the CMP through negotiated sale at prices based on acquisition cost plus financial carrying costs. [Sec. 31, RA 7279].
QQ:: What is a Community Mortgage Program (CMP)?
AA:: CMP is a socialized housing program of the government that provides for
land acquisition by the occupying community association based on the concept of community ownership. It is being implemented through the Social Housing Finance Corporation (SHFC), a subsidiary of the National Home Mortgage Finance Corporation (NHMFC), and in accordance with
the provisions of UDHA. [Pursuant to Sec. 31, RA 7279].
QQ:: In case the CMP beneficiaries fail to form an association by and among
themselves, who shall initiate the organization of the same?
AA:: The beneficiaries of the CMP shall be responsible for their organization
into associations to manage their subdivisions or places of residence, to secure housing loans under existing CMP and such other projects beneficial to them. Associations so organized pursuant to UDHA may
collectively acquire and own lands covered by the CMP. Where the beneficiaries fail to form an association by and among themselves, the NHMFC (now the SHFC) shall initiate the organization of the same in
coordination with the PCUP and the LGUs concerned. [Sec. 31, RA 7279].
QQ:: Can the LGUs take the lead in the promotion of indigenous materials and technologies for socialized housing?
AA:: Yes. The LGUs, in cooperation with the NHA, Technology and Livelihood Resource Center (TLRC), and other concerned agencies, shall promote the
production and use of indigenous, alternative, and low-cost construction materials and technologies for socialized housing. [Sec. 31, RA 7279].
QQ:: What should the LGUs do in order to develop a viable transport system in the urban areas?
AA:: The LGUs, in coordination with the Departments of Transportation and Communications (DOTC), Budget and Management (DBM), Trade and Industry (DTI), Finance (DOF), and Public Works and Highways (DPWH),
the Home Guaranty Corporation (HGC), and other concerned government agencies, shall device a set of mechanisms including incentives to the private sector so that a viable transport system shall evolve and develop in the urban areas. [Sec. 35, RA 7279].
Q & A on Local Housing Laws, Programs and Organizations 10
QQ:: What key role should the LGUs play in preserving ecological balance?
AA:: The LGUs shall coordinate with the Department of Environment and Natural Resources (DENR) in taking measures that will plan and regulate
urban activities for the conservation and protection of vital, unique and sensitive ecosystems, scenic landscapes, cultural sites and other similar resource areas. [Sec. 36, RA 7279].
QQ:: What specific action/s should the LGUs undertake to make the implementation of the above function of planning and regulating urban activities more effective?
AA:: The LGUs shall recommend to the Environment and Management Bureau (EMB) the immediate closure of factories, mines and transport companies
which are found to be causing massive pollution. [Sec. 36, RA 7279].
QQ:: What mechanism/s should the LGUs put in place to keep track of
population movements in their respective territorial jurisdictions?
AA:: The LGUs shall set up an effective mechanism, together with the
appropriate agencies like the Population Commission (POPCOM), the National Economic and Development Authority (NEDA) and the National Statistics Office (NSO), to monitor trends in the movements of population
from rural to urban, urban to urban, and urban to rural areas. [Sec. 37, RA 7279].
QQ:: What specific actions should the LGUs undertake to influence population
movements such that the balance between urban capacities and population growth is achieved?
AA:: The LGUs shall identify measures by which such movements can be influenced to achieve balance between urban capabilities and population, to direct appropriate segments of the population into areas where they
can have access to opportunities to improve their lives and to contribute to national growth and recommend proposed legislation to Congress, if necessary. [Sec. 37, RA 7279].
QQ:: What data should the LGUs be provided with in order to be able to effectively monitor and take specific actions on population movements in
their respective areas of jurisdiction?
AA:: The LGU planners shall be provided by the POPCOM, NEDA and NSO with advanced planning information on population projections and the
Q & A on Local Housing Laws, Programs and Organizations 11
consequent level of services needed in particular urban and urbanizable areas. This service will include early-warning systems on expected
dysfunctions in a particular urban area due to population increases, decreases, or age structure changes. [Sec. 37, RA 7279].
QQ:: What measures should the LGUs carry out to minimize rural to urban migration and thus pursue urban decentralization?
AA:: The LGUs shall coordinate with NEDA and other government agencies in the formulation of national development programs that will stimulate economic growth and promote socioeconomic development in the countryside. [Sec. 38, RA 7279].
QQ:: What are the principal roles of the LGUs in the implementation of UDHA?
AA:: The LGUs shall be charged with the implementation of UDHA in their respective localities, in coordination with the HUDCC, the national housing agencies, the PCUP, the private sector and other non-government
organizations (NGOs); and, the LGUs shall also prepare a Comprehensive Land Use Plan (CLUP) for their respective localities in accordance with the provisions of UDHA. [Sec. 39, RA 7279].
QQ:: What kinds of assistance should the government housing agencies such as the HUDCC, NHA, SHFC and HGC provide the LGUs?
AA:: (a) The HUDCC shall, through the key housing agencies, provide LGUs with the necessary support such as: (1) Formulation of standards and guidelines as well as providing technical support in the preparation of
town and land use plans; (2) Provision of data and information, in coordination with NEDA and NSO, for forward-planning by the LGUs in their areas, particularly on projections as to the population and
development trends in their localities and the corresponding investment programs needed to provide appropriate types and levels of infrastructure, utilities, services and land use patterns; and (3) Assistance in obtaining
funds and other resources needed in the urban development and housing programs in their areas or responsibility.
(b) The NHA, upon request of LGUs, shall provide technical and other forms of assistance in the implementation of their respective urban development and housing programs with the objective of augmenting and
enhancing LGU capabilities in the provision of housing benefits to their constituents;
Q & A on Local Housing Laws, Programs and Organizations 12
(c) The NHMFC (now the SHFC) shall administer the CMP under UDHA and promulgate rules and regulations necessary to carry out the
provisions of UDHA; and (d) The HGC shall design an appropriate guarantee scheme to encourage
financial institutions to go into direct lending for housing. [Sec. 40, RA 7279].
QQ:: What are the key housing agencies?
AA:: The key housing agencies under the umbrella of the HUDCC are the National Housing Authority (NHA), Housing and Land Use Regulatory
Board (HLURB), National Home Mortgage Finance Corporation (NHMFC), Home Guaranty Corporation (HGC), Social Housing Finance Corporation (SHFC) and Home Development Mutual Fund (HDMF or Pag-IBIG Fund).
QQ:: Are the LGUs required by law to report on their implementation of UDHA?
AA:: Yes. The LGUs, along with the HUDCC, shall each submit a detailed annual report with respect to the implementation of UDHA to the
Q & A on Local Housing Laws, Programs and Organizations 13
President and the Congress of the Republic of the Philippines. [Sec. 41, RA 7279].
QQ:: What specific local funding sources can the LGUs access for their urban development and housing programs?
AA:: Funds for the urban development and housing program shall come from the proceeds from the social housing tax and, subject to the
concurrence of the LGUs concerned, from idle lands tax as provided in Section 236 of the Local Government Code (LGC) of 1991 and other existing laws. [Sec. 42(e), RA 7279].
QQ:: Do LGUs have the legal authority to levy a social housing tax in order to raise funds for their Urban Development and Housing Program?
AA:: Yes. All LGUs are authorized by UDHA to impose an additional one-half percent (0.5%) tax on the assessed value of all lands in urban areas in excess of Fifty thousand pesos (P50,000). [Sec. 43, RA 7279].
1.2 Comprehensive and Integrated Shelter Finance Act (CISFA) of 1994
(Republic Act No. 7835)
QQ:: What is CISFA?
AA:: CISFA stands for the Comprehensive and Integrated Shelter Finance Act of 1994 embodied in Republic Act No. 7835 enacted by Congress on December 16, 1994.
QQ:: What is the objective of the state with respect to its policy of strengthening, promoting and support the component activities of housing production and finance as provided for under CISFA?
AA:: Towards that end, the State shall enjoin the active participation of the Local Government Units (LGUs) in the socialized housing programs
through adequate measures for housing development in their respective areas. [Sec. 3(e), RA 7835].
QQ:: What is Medium-Rise Public and Private Housing as a component of the National Shelter Program (NSP)?
AA:: Medium-Rise Public and Private Housing shall entail the construction of medium-rise residential buildings by the government and/or private developers in all high-density urban areas of the country to maximize the utilization of scarce, high-cost urban land, except in areas where there are
Q & A on Local Housing Laws, Programs and Organizations 14
existing arrangements on housing and/or land utilization prior to the effectivity of CISFA. Low-income families and other beneficiaries as
defined in Republic Act No. 7279 (UDHA) shall gain access to the program either through direct sale with homebuyers' financing assistance or through lease arrangement depending on the affordability of the intended
beneficiaries. [Sec. 4(b), RA 7835].
QQ:: What are the roles of the LGUs in the implementation of the Medium-Rise
Public and Private Housing Program?
AA:: Upon the completion of all public rental housing facilities constructed under the NSP, the LGU or the Public Estates Authority (PEA) [now
Philippine Reclamation Authority (PRA)] shall assume the administration of the said facilities to include the implementation of the Estate Management Policies and to ensure the efficient and effective recovery and collection of
rental and other fees due the government from the beneficiaries of the public housing program. It shall maintain the physical integrity of the public rental housing facilities including those of its immediate environs.
The Housing and Urban Development Coordinating Council (HUDCC), National Housing Authority (NHA) and PRA are mandated to formulate the policies and guidelines, rules and regulations in the
administration and management of the public rental housing facilities, in consultation with the LGU and the Presidential Commission for the Urban Poor (PCUP). [Sec. 4(b)(3), RA 7835].
The concerned LGU shall, along with other national government agencies, be coordinated with by the PCUP in the identification and processing of qualified beneficiaries of public rental housing facilities provided for under
CISFA. [Sec. 4(b)(4), RA 7835].
QQ:: What are the Cost-Recoverable Programs which may be undertaken in
joint venture with the LGUs?
AA:: Cost-Recoverable Programs which involve the development of sites with
housing component and the provision of serviced homelots may be undertaken through joint-venture schemes with the private sector or the LGUs. Program beneficiaries shall fully repay on installment basis the
financial assistance granted for the purchase of the housing units. [Sec. 4(d), RA 7835].
QQ:: In what particular localities shall the cost-recoverable socialized housing projects (Local Housing Program) be implemented?
Q & A on Local Housing Laws, Programs and Organizations 15
AA:: To ensure the equitable distribution of housing benefits across the country, the NHA is tasked under CISFA to implement cost-recoverable
socialized housing projects (Local Housing Program) in selected urban and urbanizable areas in all congressional districts. Criteria for the selection of sites shall be formulated by the HUDCC and NHA pursuant to
Republic Act No. 7279 (UDHA). [Sec. 4(e), RA 7835].
QQ:: How shall the Medium-Rise Public and Private Housing and the Local
Housing Programs be funded under CISFA?
AA:: To enable the NHA to carry out the Medium-Rise Public and Private Housing and the Local Housing Programs, a Trust Fund to be managed
and administered by the NHA was created under CISFA. The mechanics of said Trust Fund shall be formulated by the NHA, the Department of Finance (DOF), the Department of Budget and Management (DBM) and
other concerned agencies in accordance with pertinent policies and subject to auditing and accounting procedures of the Commission on Audit (COA). [Sec. 5, RA 7835].
QQ:: How much fund was appropriated by the national government to finance the Local Housing Program provided for under CISFA?
AA:: The amount of Three Billion Pesos (P3,000,000,000) was appropriated annually for a period of five (5) years or until such time that the total fund
requirement provided for under CISFA shall have been fully released specifically for the Local Housing Program under Section 4(e) thereof. [Sec. 9, RA 7835].
1.3 Local Government Code (LGC) of 1991 (Republic Act No. 7160)
QQ:: Is there a provision in the Local Government Code (LGC) of 1991
(RA 7160) relative to the powers of the province to provide housing services for its constituents?
AA:: Yes. The province may undertake “programs and projects for low‐cost
housing and other mass dwellings, except those funded by the Social
Security System (SSS), Government Service Insurance System (GSIS), and the Home Development Mutual Fund (HDMF): Provided, That national funds for these programs and projects shall be equitably allocated among the regions in proportion to the ratio of the homeless to the population.”
[Sec. 17, par. (3), subpar. (viii), RA 7160].
QQ:: Can the LGU exercise its power of eminent domain for the benefit of its
poor and landless constituents?
Q & A on Local Housing Laws, Programs and Organizations 16
AA:: Yes. The LGU “may, through its chief executive and acting pursuant to an
ordinance, exercise the power of eminent domain for public use, or purpose, or welfare for the benefit of the poor and the landless, upon payment of just compensation, pursuant to the provisions of the
Constitution and pertinent laws: Provided, however, That the power of eminent domain may not be exercised unless a valid and definite offer has been previously made to the owner, and such offer was not accepted:
Provided, further, That the local government unit may immediately take possession of the property upon the filing of the expropriation proceedings and upon making a deposit with the proper court of at least fifteen percent (15%) of the fair market value of the property based on
the current tax declaration of the property to be expropriated: Provided, finally, That, the amount to be paid for the expropriated property shall be determined by the proper court, based on the fair market value at the
time of the taking of the property.” [Sec. 19, RA 7160].
QQ:: Does the LGC have a specific provision pertaining to the LGU’s mandate
to prepare its Comprehensive Land Use Plan (CLUP) as well as the incorporation therein of the requirements of housing or human settlements, among others?
AA:: Yes. The LGC provides that the LGU “shall, in conformity with existing laws, continue to prepare their respective CLUPs enacted through zoning
ordinances which shall be the primary and dominant bases for the future use of land resources: Provided, That the requirements for food production, human settlements, and industrial expansion shall be taken into consideration in the preparation of such plans.” [Sec. 20 (c), RA
7160].
QQ:: Is the provision of relocation sites mandatory for certain occupants
affected by government projects or programs?
AA:: Yes. The LGC provides that “no project or program shall be implemented
by government authorities unless the consultations mentioned in Secs. 2 (c) and 26 hereof are complied with, and prior approval of the sanggunian concerned is obtained: Provided, That occupants in areas where such
projects are to be implemented shall not be evicted unless appropriate relocation sites have been provided, in accordance with the provisions of the Constitution.” [Sec. 27, RA 7160].
QQ:: Can the LGU contract loans, credits, and other forms of indebtedness to finance its housing project?
Q & A on Local Housing Laws, Programs and Organizations 17
AA:: Yes. An LGU “may contract loans, credits, and other forms of indebtedness with any government or domestic private bank and other
lending institutions to finance the construction, installation, improvement, expansion, operation, or maintenance of public facilities, infrastructure facilities, housing projects, the acquisition of real property, and the
implementation of other capital investment projects, subject to such terms and conditions as may be agreed upon by the local government unit and the lender. The proceeds from such transactions shall accrue directly to
the local government unit concerned.” [Sec. 297, RA 7160].
QQ:: Can the President of the Philippines relend to the LGUs the proceeds of foreign loans contracted by the national government for the purpose of
funding local housing projects?
AA:: Yes. The President, or his duly authorized representative, may, through
any government financial or other lending institution, relend to any province, city, municipality, or barangay, the proceeds of loans contracted with foreign financial institutions or other international funding agencies
for the purpose of financing the construction, installation, improvement, expansion, operation, or maintenance of public utilities and facilities, infrastructure facilities, or housing projects, the acquisition of real
property, and the implementation of other capital investment projects, subject to such terms and conditions as may be agreed upon by the President and the local government unit. The proceeds from such loans
shall accrue directly to the local government concerned. [Sec. 301 (a), RA 7160].
QQ:: Can the LGU secure loans from government banks and lending
institutions for its house financing projects?
AA:: Yes. A local government unit may likewise secure from any government bank and lending institution short, medium and long‐term
loans and advances against security of real estate or other acceptable
assets for the establishment, development, or expansion of agricultural, industrial, commercial, house financing projects, livelihood projects, and other economic enterprises. [Sec. 301 (b), RA 7160].
QQ:: What are the specific mandates of the sangguniang bayan under the LGC pertaining to the adoption by the municipality of a CLUP and the enactment of zoning ordinances in accordance with the approved CLUP?
AA:: The sangguniang bayan, as the legislative body of the municipality, shall “[a]dopt a comprehensive land use plan for the municipality:
Provided, That the formulation, adoption, or modification of said plan shall
Q & A on Local Housing Laws, Programs and Organizations 18
be in coordination with the approved provincial comprehensive land use plan;” [and] “[e]nact integrated zoning ordinances in consonance
with the approved comprehensive land use plan, subject to existing laws, rules and regulations; x x x.” [Sec. 447 (2) (vii) and (ix), RA 7160].
QQ:: What are the specific mandates of the sangguniang panlungsod under the LGC pertaining to the adoption by the city of a CLUP and the enactment of zoning ordinances in accordance with the approved CLUP?
AA:: The sangguniang panlungsod, as the legislative body of the city, shall “[a]dopt a comprehensive land use plan for the city: Provided, That in the case of component cities, the formulation, adoption or modification
of said plan shall be in coordination with the approved provincial comprehensive land use plan;” [and] “[e]nact integrated zoning ordinances in consonance with the approved comprehensive land use
plan, subject to existing laws, rules and regulations; x x x.” [Sec. 458, (2) (vii) and (ix), RA 7160].
QQ:: What are the specific mandates of the sangguniang panlalawigan under the LGC pertaining to the adoption by the province of a provincial land use plan (PLUP) and the review of the CLUPs and zoning ordinances of
its of component cities and municipalities?
AA:: The sangguniang panlalawigan, as the legislative body of the province,
shall “[r]eview the comprehensive land use plans and zoning ordinances of component cities and municipalities and adopt a comprehensive provincial land use plan, subject to existing laws; x x x.” [Sec. 468 (2) (vii) and (ix), RA 7160].
PART II – LOCAL HOUSING ORGANIZATIONAL STRUCTURE
2.1 Local Housing Board (LHB)
QQ:: What is a Local Housing Board (LHB)?
AA:: The LHB is a local special body devoted to addressing local housing concerns through the formulation and development of a comprehensive
and integrated housing and urban development program of the Local Government Unit (LGU).
QQ:: How is the LHB created?
AA:: The Board may be created by an Ordinance duly enacted by the Sanggunian concerned. It may also be created by the Local Chief
Q & A on Local Housing Laws, Programs and Organizations 19
Executive (LCE) through an Administrative Order but the first option is preferred owing to its more permanent character and its funding
component.
QQ:: What are the legal bases for the creation of the LHB?
AA:: The creation of any of the organizational structures such as the LHB is authorized under Sec. 18 of the Local Government Code (LGC) of
1991 (RA 7160) which provides that “local government units shall have the power and authority to establish an organization that shall be responsible for the efficient and effective implementation of their development plans, program objectives and priorities. X x x.”
In addition, Sec. 39 of the Urban Development and Housing Act
(UDHA) of 1992 (RA 7279) devolved to the LGUs the task of
implementing socialized housing programs and projects within their respective territorial jurisdictions:
QQ:: Is there an existing presidential directive for the creation of LHBs?
AA:: Yes. In 2002, the President of the Philippines issued Memorandum Order
No. 74 directing the LGUs to “create their respective housing boards, or their equivalent, within thirty (30) days from the effectivity of this Order.”
QQ:: Are the LHBs also mandated, among others, to perform the function of a clearing house for eviction and demolition?
AA:: Yes. Pursuant to Executive Order No. 708, series of 2008, the LGUs,
through their respective LHBs or any similar body duly created by ordinance, shall assume the function of “clearing house for the conduct of demolition and eviction activities involving the homeless and
underprivileged citizens” in their respective territorial jurisdictions.
QQ:: Has the Department of the Interior and Local Government (DILG)
issued the necessary guidelines to implement the provisions of EO 708?
AA:: Yes. On Sept. 19, 2008, the DILG issued Memorandum Circular No.
2008-143 setting forth the guidelines for the creation of LHBs as well as the devolution of the clearing house function from the Presidential Commission for the Urban Poor (PCUP) to the LGUs.
QQ:: What are the specific functions of the LHB under DILG MC 2008-143?
AA:: The LHB shall perform the following functions:
Q & A on Local Housing Laws, Programs and Organizations 20
Monitor all evictions and demolitions, whether voluntary, extra-judicial, summary or court-ordered;
Require proponents to first secure the Checklist, Guidelines and Eviction and Demolition Compliance Certificate prior to actual implementation;
Issue Certificates of Compliance (CoCs) on proposed eviction and demolition activities; and
Require the LGU to cause the creation of the LHB through an
appropriate ordinance as a pre-requisite before the LGU can assume its clearinghouse function. For an existing LHB, an amendment of the ordinance creating the same shall be enacted to conform with the
guidelines without altering its original composition.
QQ:: In the meantime that there is no LHB yet created by the LGU, which
body is authorized to issue CoCs on proposed eviction and demolition activities?
AA:: Pursuant to the provisions of DILG MC 2009-05 issued on Jan. 20, 2009 which amended MC 2008-143, the Local Inter-Agency Committee (LIAC), if existing, is authorized to issue the CoC in the absence of or
pending the creation of the LHB, subject to the issuance by the LIAC of a resolution attesting to the substantial and sufficient compliance of the Project (with eviction and demolition components) with Secs. 28 and 30 of
the Urban Development and Housing Act (UDHA) of 1992 (RA 7279).
QQ:: What other functions may the LHB be ordained by the LGU to exercise
aside from the above clearing house functions?
AA:: The LHB may be made to perform any or all of the following suggested
functions: Act as the policy-making body on local housing and urban
development concerns;
Assist the LGU in the preparation of its Local Shelter Plan (LSP) and Comprehensive Land Use Plan (CLUP);
Identify and recommend housing-related projects to the SB/SP or
to the LCE; Assist the LGU in the review and approval of Subdivision Plans;
Assist the LGU in monitoring compliance by subdivision developers with the 20% balanced housing provision of UDHA (Sec. 18);
Recommend to the Sanggunian the imposition of socialized housing
tax [Sec. 42(e) of UDHA]; and
Q & A on Local Housing Laws, Programs and Organizations 21
Recommend to the LCE the allocation and/or utilization of the socialized housing tax and the idle lands tax (Sec. 236 of LGC) to
fund its urban development and housing programs.
QQ:: What is the suggested composition of the LHB?
AA:: The LHB may be composed of the LCE (Governor or Mayor) as Chairman, and the following as members:
Provincial/City/Municipal (P/C/M)PDC, P/C/MSWDO, UPAO, DILG Provincial Director, C/MLGOO, P/C/M Treasurer, P/C/M Assessor, Chief of Police, Chair of the Housing Committee of the SP/SB,
PGEnRO/CGEnRO/MEnRO; Representatives from any of the Key Housing Agencies: HUDCC,
NHA, HLURB, HDMF, SHFC;
Other government agencies such as PCUP, CHR, DENR, etc.; and Representatives from People’s Organizations (POs), Non-
Governmental Organizations (NGOs), Developers, Federation of
Homeowners’ Associations (HOAs) and Community or Neighborhood Associations.
2.2 Local Housing Office (LHO)
QQ:: What is a Local Housing Office (LHO)?
AA:: An LHO is an organic unit within the LGU established for the purpose of implementing the policies, plans and programs adopted by the LHB. It
shall also serve as the full-time secretariat of the LHB.
QQ:: Who shall head the LHO?
AA:: The LHO shall be headed by a General Manager or a Department Head duly appointed or designated by the LCE (Governor or Mayor, as the case may be) and who shall serve on a full-time basis.
QQ:: What divisions may comprise the LHO?
AA:: The LHO may be composed of the following divisions: Administrative; Technical Services; and Community Affairs.
QQ:: What specific functions may the LHO perform?
AA:: The LHO may be made to perform any or all of the following suggested
functions: Serve as the Secretariat of the LHB;
Q & A on Local Housing Laws, Programs and Organizations 22
Act as One-Stop Shop Processing Center for Housing Permits; Act as the clearinghouse for eviction and demolition;
Facilitate beneficiary selection and qualification of beneficiaries in the disposition of proclaimed government properties;
Identify lands suitable for housing development;
Adopt containment measures to prevent new illegal entrants and dwelling structures in government lands and danger areas;
Ensure the implementation of the provisions of RA 7279 (UDHA) and related laws and ordinances; and
Perform such other functions as may be assigned or delegated to it
by the LHB from time to time.
QQ:: Where will the LHB and LHO get their budgets?
AA:: The LGU may appropriate a portion [not less than one percent (1%)] of its Internal Revenue Allotment (IRA) for the year for the operations and
activities of its LHB and LHO.
PART III – NATIONAL GOVERNMENT ASSISTANCE TO LOCAL HOUSING
3.1 National Government Agencies – Existing Programs for LGUs
QQ:: What are the national government agencies which have existing programs
that assist LGUs in their local housing concerns?
AA:: The national government agencies and their respective housing programs
for the benefit of the LGUs are: 1. Housing and Land Use Regulatory Board (HLURB) – Technical
Assistance to LGUs for CLUP Preparation and Updating;
2. National Housing Authority (NHA) - (1) Resettlement Assistance Program to LGUs (RAPLGU); (2) Local Housing Program; and (3) Technical Assistance (TA) to LGUs;
3. Social Housing Finance Corporation (SHFC) – Community Mortgage Program (CMP) and Localized CMP for LGUs; and
4. Home Development Mutual Fund (HDMF or Pag-IBIG Fund) - Group Housing Loan Program (GHLP) for LGUs.
3.2.1 Housing and Land Use Regulatory Board (HLURB) – Technical
Assistance to LGUs for CLUP Preparation and Updating
QQ:: What is a Comprehensive Land Use Plan (CLUP)?
Q & A on Local Housing Laws, Programs and Organizations 23
AA:: A CLUP consists of a map showing how the use of land in a specific area will be regulated, as well as a written document containing a profile of the
LGU, its vision and the strategies on how it will achieve its vision.
QQ:: How is the CLUP approved by the LGU?
AA:: The CLUP shall be enacted by the concerned LGU through a Zoning Ordinance or as an integral part thereof.
QQ:: What are the benefits of a CLUP to an LGU?
AA:: An LGU will benefit from an approved CLUP by, among others, having
legal justification for its zoning laws and by providing a guide for its would-be investors where businesses within the LGU can be located.
QQ:: Who are the key players in the CLUP formulation process?
AA:: The City and Municipal Planning Coordinators (CPDC and MPDC) shall be
in charge of preparing the work program, setting the timeframe, providing the logistical requirements, and overseeing the entire planning process. The concerned Sanggunian (SP and SB), on the other hand, shall approve
the necessary logistical support, budget, and the creation of the ad hoc technical working groups (TWGs).
QQ:: Who shall review and approve the CLUPs?
AA:: The Provincial Land Use Committee (PLUC), in the case of component cities and municipalities, or the Regional Land Use Committee (RLUC), in
the case of Highly Urbanized Cities (HUCs) and Independent Component Cities (ICCs), shall conduct the review of the CLUPs while the Sangguniang Panlalawigan and the HLURB shall approve the CLUPs of
the component cities and municipalities and of the HUCs and ICCs, respectively.
QQ:: In what ways can the HLURB assist the LGUs in the preparation or updating of their CLUPs?
AA:: The HLURB conducts capacity-building trainings in CLUP preparation for LGUs. It also gives assistance to LGUs in the actual preparation of their respective CLUPs.
QQ:: What is a GIS?
Q & A on Local Housing Laws, Programs and Organizations 24
AA:: A Geographic Information System (GIS) is a computerized system for dealing with information about geographically located features.
Geographic information is embedded in over 80% of all the goods and services an LGU provides. In its simplest form, GIS can be used to create a map for the user on demand; in its more complex form, it becomes a
database with millions of pieces of data that are geographically related, and can be displayed in a format that the user may select to make complex interrelationships visually understandable. GIS is not only a
software but is a system that includes the hardware, data, including the users and the organization needed to manage the data.
QQ:: What are the advantages of using the GIS in the LGU environment and in
the CLUP preparation process?
AA:: Among the various uses and advantages of GIS relative to CLUP
preparation and updating by the LGUs are: (1) Management, analysis and presentation of information, in map form; (2) Showing the location, distribution, and qualitative information on services, facilities,
infrastructure, and other sectoral aspects that are useful in sectoral studies, needs determination, and planning for provision of services. For example, it can show the distribution of public health centers, the types
and capability of roads in the LGU, and other objects with a defined location; and (3) Identification of hazardous areas in an LGU and overlaying them with the population density map in order to determine
the risk factor as well as the suitability of the area for urban development vis-à-vis land management policies.
QQ:: Will the use of GIS be a factor in the sharing of information among the
concerned LGUs and how?
AA:: The use of GIS within the LGUs will certainly be a vital factor in terms of
data sharing in the preparation of the Provincial Physical Framework Plans (PPFPs) and CLUPs as well as in the review of the CLUPs by the province. With the province coordinating with the cities and municipalities
under its jurisdiction, they can share the available digital data acquired by the province for thematic mapping purposes. It not only enhances the presentation of the maps but increases the accuracy of the information as
well.
QQ:: What are the advantages that can be derived by the LGU from a CLUP
that has GIS maps?
AA:: Having a CLUP with GIS maps will also be beneficial because it would be easy for the provincial planners to review and compare the CLUPs of
Q & A on Local Housing Laws, Programs and Organizations 25
cities and municipalities within their jurisdiction and check if it is consistent within the thrust of the PPFP. Further, with the use of GIS,
digital CLUPs can be easily incorporated to see and check if the adjacent land uses among cities and municipalities are synchronized.
QQ:: Since not all cities and municipalities can afford a GIS and not all of them has the technical expertise to operate the GIS, what is the recommended approach to solve this problem?
AA:: A province that has the GIS and technical expertise can provide assistance to its component cities and municipalities by means of a shared GIS. It can also give hands-on trainings on the use of GIS in cooperation with the
HLURB. Meanwhile, a province without a GIS could establish one with financial counterpart from its component cities and municipalities and thereafter share technical expertise and information among them.
QQ:: What particular role is played by the LGU in the use of the GIS for coordination and cooperation with the private sector?
AA:: The LGU plays a dominant role in the capture and use of geographic information for all stages of development-related planning. The use of GIS
supports more open, collaborative planning processes and improves public access to geographic information in resolving urban and rural planning issues. The private sector is also mobilized in local governance and
planning. A more accessible public database will enable investors to analyze the impact of development projects in relation to the LGU’s land use plans and objectives.
3.2.2 Housing and Land Use Regulatory Board (HLURB) – Subdivision and Condominium Development
QQ:: What is a Subdivision Project?
AA:: Subdivision Project refers to a parcel of land registered under Act No.
496 which is partitioned into individual lots for residential, commercial, industrial or other purposes with or without improvements thereon, and offered for sale to the public.
QQ:: What is a Condominium Project?
AA:: Condominium Project refers to the entire parcel of real property divided or to be divided into condominium units for residential, commercial, industrial or other purposes, including the structure thereon.
Q & A on Local Housing Laws, Programs and Organizations 26
QQ:: Who approves the subdivision plan and issues the corresponding development permit?
AA:: The power to approve subdivision plans was devolved from the HLURB to the local sanggunian under the Local Government Code (LGC) of
1991 (RA 7160). A registered owner or developer of a parcel of land who wishes to convert the same into a subdivision project shall apply with the LGU concerned for the issuance of the subdivision development permit
(DP).
QQ:: What subdivision projects are subject to the issuance of subdivision development permits (DPs) by the LGUs concerned?
AA:: The subdivision projects subject to DPs are residential projects under PD 957 and BP 220 and other subdivision projects such as farm lot
subdivision, commercial subdivision, industrial subdivision, and memorial parks.
QQ:: With what government agency shall the owner or developer of a residential or commercial condominium project or of a columbarium project apply for DP?
AA:: The owner or developer of a condominium or columbarium project is required to apply for DP, as well as for Certificate of Registration and
License to Sell, with the HLURB prior to the actual development and selling of the units therein.
QQ:: What is the so-called “Balanced Housing” provision of UDHA (RA 7279)?
AA:: This is a provision under Section 18 of UDHA, or the balanced housing development requirement, with which developers of main subdivision
projects have to comply by developing an area for a socialized housing project (compliance project) equivalent to at least twenty percent (20%) of the total subdivision area or developing a socialized housing project
with a cost equivalent to at least twenty percent (20%) of the total subdivision project cost of the main subdivision project.
QQ:: How is the balanced housing requirement complied with by the subdivision developer?
AA:: The developer of the main subdivision project shall develop a socialized housing project (compliance project) either with an area equivalent to at least twenty percent (20%) of the total subdivision area of the main subdivision project or with a cost equivalent to at least twenty percent
Q & A on Local Housing Laws, Programs and Organizations 27
(20%) of the total subdivision project cost of the main subdivision project. [Sec. 4, HLURB MC 1, S. 2013].
QQ:: Can the compliance project be a socialized condominium project?
AA:: Yes. A socialized condominium project can be a compliance project to satisfy the balanced housing requirement of UDHA.
QQ:: If the compliance project is a socialized condominium project, what should the total cost or total area of the compliance project be?
AA:: in case the compliance project is a socialized condominium project, its
total area shall be the gross land area and the gross floor area, and its total condominium project cost shall be the cost of raw land based on its zonal value at the time of application for condominium development
permit and total building construction cost.
QQ:: Where should the compliance project be located?
AA:: The compliance project shall be located in the same city or municipality as the main subdivision project, whenever feasible. Otherwise, it may be
allowed elsewhere in the country, preferably within a zone designated in the comprehensive land use plan and zoning ordinance as a socialized housing site or in a settlement area where it is allowed. [Sec. 8,
HLURB MC 1, S. 2013].
QQ:: What is an “Open Space” in a subdivision project?
AA:: "Open Space" is an area reserved exclusively for parks, playgrounds, recreational uses, schools, roads, places of worship, hospitals, health centers, barangay centers and other similar facilities and amenities. [Sec.
1, PD 1216].
QQ:: To what entity should the open space be donated?
AA:: The open space consisting of “the roads, alleys, sidewalks and playgrounds shall be donated by the owner or developer to the city or
municipality and it shall be mandatory for the local governments to accept provided, however, that the parks and playgrounds may be donated to the Homeowners Association of the project with the consent of
the city or municipality concerned. No portion of the parks and playgrounds donated thereafter shall be converted to any other purpose or purposes.” [Sec. 31, PD 957, as amended].
Q & A on Local Housing Laws, Programs and Organizations 28
QQ:: Can a Developer sell the subdivision’s open space?
AA:: No, because a subdivision’s open space is beyond the commerce of man.
QQ:: Can a chapel be constructed in an open space reserved for parks and
playgrounds?
AA:: No. An open space reserved for parks and playground is non-buildable
and the construction of a chapel or other subdivision facilities may only be done in an open space not reserved for parks and playground.
3.3 National Housing Authority (NHA) - Partnership Programs with LGUs
QQ:: What are NHA’s Partnership Programs with the LGUs?
AA:: NHA’s Partnership Programs with the LGUs include: (1) Resettlement Assistance Program to LGUs (RAPLGU); (2) Local Housing Program; and (3) Technical Assistance (TA) to LGUs.
QQ:: What specific assistance or participation is provided by NHA under the RAPLGU?
AA:: Under the RAPLGU, NHA shall provide funding for land development. Fifty percent (50%) of NHA’s contribution shall be provided as a grant to
LGU while the balance shall be treated as a loan. NHA shall undertake the implementation of land development pursuant to RA 9184 and turn over the completed development to the concerned LGU.
QQ:: What are the terms of NHA’s loan to the LGU?
AA:: The interest rate shall be pegged at six percent per annum (6% p.a.); the
repayment period shall be for a maximum of ten (10) years; and, the grace period for the loan amortization shall be one (1) year from release of the loan.
QQ:: What is the process flow for the availment of assistance under the RAPLGU?
AA:: The general procedure for availment of assistance under RAPLGU shall observe the following flow:
Q & A on Local Housing Laws, Programs and Organizations 31
QQ:: What is CISFA?
AA:: CISFA stands for the Comprehensive and Integrated Shelter Finance Act or Republic Act No. 7835.
QQ:: What is the scope of the Local Housing Program provided for under CISFA?
AA:: The Program covers the implementation of cost-recoverable socialized housing projects in urban and urbanizable areas in all congressional districts.
QQ:: Who are the intended beneficiaries of the Program?
AA:: The Program beneficiaries include the homeless and underprivileged families and low-income families in need of housing assistance.
QQ:: Who are the project proponents?
AA:: The project proponents are the congressional district representatives of the legislative districts concerned.
QQ:: What are the uses of the Local Housing Fund under CISFA?
AA:: The Fund may be used for any of the following: land acquisition; land
development and/or housing construction; interim financing for land acquisition under the CMP of SHFC or the GLAD of Pag-IBIG Fund; compliance with the requirements related to CMP: defraying the cost of surveys and equity requirements; survey works and titling; and, provision,
installation, or repair of project components and community facilities.
QQ:: What is the general process flow to be observed in the implementation of
the Program?
AA:: The following procedures shall be followed:
Q & A on Local Housing Laws, Programs and Organizations 32
LOCAL HOUSING PROGRAM
Process Flow
STEP REQUIREMENTS RESPONSIBLE ENTITY
1. SUBMISSION OF
LETTER-REQUEST AND SUPPORTING DOCUMENTS TO
DISTRICT REPRESENTATIVE
Letter-request with
description of proposed project
List of beneficiaries
LGU
2. ENDORSEMENT OF REQUEST/ PROJECT PROPOSAL TO NHA
Letter-Endorsement LGU letter-request List of Beneficiaries
Q & A on Local Housing Laws, Programs and Organizations 34
5. PROJECT PACKAGING Topographic map (if
applicable) Detailed engineering and
architectural plans,
specifications, cost estimates, PERT/CPM and Cash flow signed by
Project Implementor and countersigned by NHA Project Engineer and
Project Manager (if applicable)
Project Pre-Feasibility or
Feasibility Study
LGU with NHA
Assistance / NHA
6. PROJECT
ENDORSEMENT TO AREA MANAGEMENT OFFICE (AMO)
All documents including the
following: Memo-endorsement to
AMO
Draft Memorandum of Agreement (MOA)
Sanggunian Resolution
– Endorsing proposed project
– Authorizing Mayor to
enter into and sign project agreement
NHA Project
Office LGU
7. PROJECT EVALUATION AND ENDORSEMENT FOR APPROVAL
Memo-endorsement to the General Manager
All required documents
under items 1 to 6
NHA Area Management Office
8. PROJECT APPROVAL NHA General
Manager
9. SIGNING OF MOA
10. RELEASE OF FUNDS
QQ:: What forms of Technical Assistance (TA) does the NHA provide the LGUs?
AA:: The NHA can extend TA to the LGU in the areas of: project planning and packaging; project implementation; policy formulation: beneficiary
Q & A on Local Housing Laws, Programs and Organizations 35
selection, disposition of housing units and cost recovery; and housing design and technology.
3.4 Social Housing Finance Corporation (SHFC) – Community Mortgage
Program (CMP) and Localized CMP for LGUs
QQ:: What is a Community Mortgage Program (CMP)?
AA:: CMP is a financing program of the National Home Mortgage Finance Corporation (NHMFC) and a shelter program for the homeless and underprivileged citizens. [Sec. 31, RA 7279]. It is also a government financing assistance window for organized communities of informal settler
families (ISFs) that provides community loans payable in 25 years at an interest rate of 6% annually.
QQ:: What are the types of loans under the CMP?
AA:: The kinds of loans under the CMP are as follows:
Particulars Location of Land to be Purchased
Types of Loan Metro Manila /
HUCs
Monthly Amort.
Provincial Areas
Monthly Amort.
Lot Acquisition P90,000.00 616.77 P45,000.00 308.308
Site Development 15,000.00 102.80 15,000.00 102.80
QQ:: Which national government agency implements the CMP?
AA:: Pursuant to UDHA (RA 7279), it is the National Home Mortgage Finance
Corporation (NHMFC) that is mandated to implement the CMP. However, in 2004, the President of the Philippines issued Executive Order No. 272 creating the Social Housing Finance Corporation (SHFC), a subsidiary of
NHMFC was mandated to develop and implement social housing programs for the low-income groups in the formal and informal sectors and administer the CMP.
QQ:: How are CMP Projects classified?
Q & A on Local Housing Laws, Programs and Organizations 36
AA:: CMP Projects are classified either as on-site or off-site.
ON-SITE CMP PROJECT OFF-SITE CMP PROJECT
The members of the community association (CA) are already living or residing in the project site.
Community has been in existence for five (5) years;
85% occupancy rate at the time of application and 100% after two (2)
years from loan release; and Maximum of 200 beneficiaries.
Homogeneous group that decides to voluntarily to transfer to another area. Community-driven;
Under threat of eviction, calamities, disruptive effects of govt. infrastructure projects;
CA of which 30% of its members
come from an existing core group of residents from low-income or informal sector of the same city
(geographical); and A group that has been formally
organized for at least one (1) year
prior to application, and is bound by commonalities such as low-income occupation and sense of
purpose or objective (occupational or sectoral).
QQ:: What are the eligibility requirements under the Program?
AA:: To be eligible under the CMP, the beneficiary: 1. must be a Filipino citizen; 2. must be homeless and underprivileged;
3. must be of legal age (18-60 years old); 4. must have no lot nor housing loan; and 5. must not be a professional squatter or a member of a squatting
syndicate.
QQ:: How does the CMP process flow?
AA:: The CMP process generally goes this way:
Q & A on Local Housing Laws, Programs and Organizations 37
QQ:: How much are the monthly amortizations for the P60,000 and P90,000 loans?
AA:: The computations of the monthly amortizations for the P60,000 and P9,000 loans are as follows:
Q & A on Local Housing Laws, Programs and Organizations 38
QQ:: What is a Localized Community Mortgage Program (LCMP)?
AA:: LCMP is a local housing program of the SHFC that aims to strengthen the partnership between the SHFC and the LGUs to effect a more systematic and focused approach in reducing local housing backlog.
QQ:: How does the LCMP work?
AA:: As shown in the figure below, the LCMP ideally works this way:
QQ:: Who are the eligible LGU Partners under the Program?
AA:: Cities, municipalities and barangays situated in Highly Urbanized Cities (HUCs) are the eligible partners under the LCMP.
QQ:: What is an Omnibus Commitment Line (OCL)?
AA:: An OCL is a Commitment Line facility with a one (1) year validity made available by SHFC based on projects identified by the partner-LGUs not to
exceed Fifty Million pesos (P50,000,000.00) and Twenty Million pesos (P20,000,000.00) for cities/municipalities and eligible barangays, respectively.
QQ:: What are the projects that may be enrolled under the LCMP?
AA:: The projects that may be enrolled in LCMP are:
Q & A on Local Housing Laws, Programs and Organizations 39
1. On-site Projects which involve the acquisition of lands occupied by informal settler families (ISFs); or
2. Off-Site Projects which involve the acquisition and development of the lands where the ISFs (covered by court eviction orders, residing in danger zones, or voluntary transfer of one or several
communities from the locality) will be relocated under the concept of community ownership.
QQ:: What is the share of the SHFC in the project and what is the equity requirement from the partner-LGU?
AA:: As partners, the SHFC will have a 75% - 90% share in the project cost
while the equity required from the partner-LGU is 25% of the project cost for 1st to 4th class cities, or 10% of the project cost for 5th and 6th class cities including municipalities and barangays.
QQ:: What are the forms by which the partner-LGU can fulfill its equity requirement?
AA:: The LGU can comply with the equity required of it in the form of: 1. Land owned by the partner-LGU which will serve as site of the
project; 2. Cash financing to pay off the lot price (privately owned land); or 3. Site Development.
QQ:: What are the potential benefits that the LGU can get from the Program?
AA:: The partner-LGU can have an early turn-around of the LGU-funded
housing projects; it shall be entitled to 1/6 of the actual amount of interest collected from the Community Association (CA) monthly loan amortization as incentive for collection services rendered.
QQ:: What is the flow of the entire LCMP process?
AA:: In sum, the process flow of the LCMP is illustrated thus:
Q & A on Local Housing Laws, Programs and Organizations 40
3.5.1 Home Development Mutual Fund (HDMF or Pag-IBIG Fund) - Group Housing Loan Program (GHLP) for LGUs
QQ:: What is GHLP?
AA:: GHLP stands for the Group Housing Loan Program which was approved under HDMF Circular No. 293. Under the GHLP, Pag-IBIG Fund
offers its technical insights and an initial P20 million in loans to construct subdivisions or condominium buildings intended for the LGU’s eligible
constituents. The land should be provided by the LGU as its counterpart.
QQ:: What are the principal objectives of the GHLP?
AA:: GHLP has the following key objectives: to involve proponents in housing development; to encourage proponents to provide subsidy; and to
promote home ownership.
QQ:: What are the general requirements of GHLP?
AA:: GHLP generally requires the following: provision of land intended for housing; and identified target beneficiaries.
QQ:: What are the financing schemes available under the GHLP?
AA:: The financing schemes under the GHLP include developmental loan and
end-user financing.
Q & A on Local Housing Laws, Programs and Organizations 41
QQ:: What entities are qualified to become project proponents under the GHLP?
AA:: LGUs, employers, employees’ associations and cooperatives shall be given access to developmental loan under the GHLP.
QQ:: For what specific purposes shall the developmental loan be used?
AA:: The developmental loan shall only be used to fund site development and house construction, where the units from the project to be financed will be offered for sale to their intended beneficiaries.
QQ:: Who are the target beneficiaries of the GHLP?
AA:: The target beneficiaries of the GHLP are: LGU personnel; teachers;
policemen; other government employees; privately employed individuals; other qualified Pag-IBIG members; cooperatives; and associations.
QQ:: What are the purposes for which the GHLP loan shall be used?
AA:: The GHLP loan may be used for: development of residential subdivision
with housing component; construction of units eligible for mortgage financing under the existing guidelines of GHLP; or development of medium-rise buildings in highly urbanized areas.
QQ:: Can the loan or any part of it be used for land acquisition?
AA:: No. No part of the loan shall be used to purchase or redeem land.
QQ:: What are the loan amounts that can be granted under the GHLP?
AA:: The loanable amount is P20M per phase for subdivision projects (land development and house construction) and P40M per building for medium-rise condominium.
QQ:: What is the term of the loan?
AA:: The loan maturity shall be based on the project’s cashflow but not to
exceed three (3) years.
QQ:: What are the applicable rates of interest?
AA:: The interest rates are as follows:
Q & A on Local Housing Laws, Programs and Organizations 42
Developmental Loan
Selling Price of House & Lot Interest Rate
Up to P 400K 6%
Over P 400K to P 750K 7%
QQ:: What are the requirements for eligibility of the project proponent?
AA:: The proponent must possess the following qualifications: juridical personality; ownership and provision of the land for housing; financial capability; good credit standing; not being engaged in the housing business; key officers must be in good credit standing; must have a
minimum of 30 beneficiaries; and, the selling price must not be more than P750,000.00.
QQ:: What loan collaterals are required?
AA:: The principal collateral shall be the first real estate mortgage on a titled
property while the additional collaterals may be in the form of offsite real estate or assignment of rental payments from commercial concessions.
QQ:: What are the major considerations in the design of the project?
AA:: The project design considerations are as follows:
Technical Financial Market Site/Location
Project Design Legitimate Title
Conformity with Pag-
IBIG Standard on Financial Viability
Project marketability
Target market must be Pag-IBIG members
QQ:: What is the project timetable?
AA:: The project must be completed within a maximum duration of three (3)
years.
QQ:: When can the project proponent secure another loan for the development
of another project?
AA:: The development of another project maybe availed upon payment of at least fifty percent (50%) of the previous loan.
QQ:: How much is the loan processing fee charged by Pag-IBIG Fund?
AA:: The loan processing fee is P100 per unit or P10,000, whichever is higher.
Q & A on Local Housing Laws, Programs and Organizations 43
QQ:: What is the procedural flow generally observed in GHLP?
AA:: The following illustrates the GHLP process flow:
GHLP Process Flow
L G U Pag-IBIG Fund
A. Loan Processing
Receives documents from LGU
Conducts the following: - Market Evaluation - Technical Evaluation of the proposed project - Financial Evaluation that includes evaluation of the submitted Cashflow Projection. Determines loan amount based on project need but not to exceed P20M per phase.
Endorses the project to Senior Management Committee (SMC) for approval / Board of Trustees (BOT) for information.
If the project is approved, sends Notice of Approval (NOA) to the LGU.
If project is disapproved, sends Notice of Disapproval to LGU.
Receives requirements in compliance to conditions prior to Signing of Agreements.
Prepares LA and ATOP w/ REM. Transmits LA and ATOP w/ REM to LGU for
signature and notarization.
Applies for Developmental Loan Program
Submit documents required to Pag-IBIG Fund
NHA to provide technical assistance such as preparation of plans, designs, specifications and estimates
HLURB to provide assistance through issuance of the necessary permits and licenses.
Receives NOA, which will be used in the certification of the Municipal/City/Provincial Treasurer on Availability of Funds. Upon receipt of the NOA, the LGU proceeds with the procurement of a developer/JV partner or contractor and in the execution of JV Agreement or Construction Agreement.
Submit to HDMF requirements in compliance to the conditions on the approval of the loan prior to signing, if any.
Receives and sign LA and ATOP w/ REM
Annotates the ATOP w/ REM on the TCT in favor of HDMF.
Submits to HDMF Notarized copy of Agreements and the Owner duplicate of the TCT covering the project securing the loan.
Receives notarized copy of the LA and ATOP w/
REM and the TCT with mortgage duly annotated
thereon thereon
Q & A on Local Housing Laws, Programs and Organizations 44
L G U Pag-IBIG Fund
B. Loan Release
Receives NOB from LGU
Conducts site inspection
Determines if utilization requirement has been met on previous loan release
Determines amount for release based on Cashflow projection
Prepares Collateral Analysis
Prepares Promissory Note (PN)
Forwards PN to LGU for signature
Receives PN and copy of proof of Doc Stamp payment
Process Request for Payment and DV / Check Releases Check to LGU
Receives OR from LGU
Note: If the LGU will hire the services of a private contractor, HDMF will conduct the following on the contractor: 1. Financial Statement Analysis on its financial position and result of operation for the last three (3) years. 2. Track record on housing development 3. Credit worthiness with Banks and Suppliers 4. Verification with SEC, BIR, BOA, RTC, HLURB
3.5.2 Home Development Mutual Fund (HDMF or Pag-IBIG Fund) - End-User Home Financing Program (EHFP)
QQ:: Who are eligible to avail of housing loan under Pag-IBIG Fund’s End-User Home Financing Program as contained in HDMF Circular No. 310?
AA:: Eligible under the Program are those active Pag-IBIG members: with at least 24 months savings; who are not more than 65 years old at the date
of loan application, insurable and are not more than 70 years old at the date of loan maturity; who have the legal capacity to acquire and encumber real property; who have no Pag-IBIG housing loan (foreclosed,
Submit Notice of Borrowing
(NOB) to HDMF.
Receives PN from HDMF
Signs PN
Submits notarized PN together with proof of Doc Stamp
payment to HDMF
Q & A on Local Housing Laws, Programs and Organizations 45
cancelled, bought back or subject to dacion en pago); and, whose Multi-Purpose / Calamity Loans are updated at the time of loan application.
QQ:: What are the loan purposes allowed?
AA:: The purpose of the member in applying for the loan under the Program should be any of the following: purchase of a residential lot or adjoining lots (max 1,000 sq. m.; min 28 sq. m.); purchase of a house & lot,
townhouse or condominium unit (adjoining units); construction of a house; improvement of a house; and, refinancing of an existing loan. Combination of loan purposes is allowed under the Program.
QQ:: What is the maximum loan amount?
AA:: The maximum amount that a borrower can borrow is P6 Million.
QQ:: What is the maximum loan term?
AA:: The term of the loan shall not exceed thirty (30) years and shall in no case exceed the present age and age seventy (70) of the principal borrower.
QQ:: What is the amount of loan entitlement of each borrower?
AA:: The loan entitlement of each borrower shall be based on his monthly savings as shown in the table below:
MONTHLY SAVINGS LOAN ENTITLEMENT
P200 Up to 500T
P250 Over 500T – 600T
P350 Over 700T – 800T
P450 Over 900T – 1.0M
P700 Over 1.4M – 1.5M
P950 Over 1.9M – 2.0M
P1,450 Over 2.9M – 3.0M
P1,950 Over 3.9M – 4.0M
P2,450 Over 4.9M – 5.0M
P2,950 Over 5.9M – 6.0M
Q & A on Local Housing Laws, Programs and Organizations 46
QQ::
A
What are the other bases of the loanable amount?
A:: The loan amount shall be based on the borrower’s actual need, capacity to pay and on the loan-to-collateral value ratio.
QQ::
A
What are the actual needs of a borrower?
A:: A borrower may actually need to purchase a lot or a residential unit, construct a house, or refinance an existing housing loan. The selling price, the total construction cost or the outstanding balance of the loan, respectively, shall be considered in the computation of the loanable
amount.
QQ::
A
How is the capacity to pay of the borrower measured?
A:: The capacity of the borrower to repay the loan is determined by setting the following monthly repayment limits: For loan not exceeding P1.25
Million, monthly repayment shall not exceed 35% of Gross Monthly Income (GMI); and, for loans above P1.25 Million, monthly repayment shall not exceed 30% of Gross Monthly Income (GMI).
QQ::
A
Is there a tacking provision under the Program?
A:: Yes. A maximum of three (3) qualified Pag-IBIG members may be tacked into a single loan which is secured by the same collateral.
QQ::
A
What are the acceptable modes of payment?
A:: The loan shall be paid in equal monthly amortizations through: Salary Deduction; Post-Dated Checks (12 PDC’s); Over-the-Counter (OTC);
Collection Servicing Agreement (CSA) with Accredited Developers; Auto Debit Arrangement with Banks; or Bayad Centers, G-Cash, I-remit, etc.
QQ:: Is there a compulsory coverage for Mortgage Redemption Insurance (MRI) and Fire and Allied Perils Insurance (FAPI)?
AA:: Yes. The principal borrower and his co-borrowers shall each be compulsorily covered by MRI and PAPI.
QQ::
A
What are the fees charged for the processing of the loan?
A:: The borrower shall pay a processing fee of P1,000 upon filing of the application and P2,000 upon takeout of the loan.
Q & A on Local Housing Laws, Programs and Organizations
Republic of the Philippines
Department of the Interior and Local Government
Housing and Urban Development Coordinating Council
Region III
LOCAL SHELTER PLANNING
REGION III TEAM
DILG Region III
Director Florida M. Dijan
MED Chief Lerrie S. Hernandez
Asst. MED Chief Ener P. Cambronero
MB-ISF Program Officer Celvin John T. Mendoza
HUDCC
Atty. Alvin T. Claridades
Engr. Aida J. Ceros
Engr. Luisita May L. Monje
Ms. Corazon P. de Leon
Mr. Arthur N. Martinez
KEY SHELTER AGENCIES:
NHA - Ms. Ines C. Gonzales
HMDF - Ms. Elaine G. Pecson
SHFC - Mr. Antonio L. Alvarado
HLURB - Mr. Eleador F. Balgos
Q & A on Local Housing Laws, Programs and Organizations
Republic of the Philippines
DEPARTMENT OF THE INTERIOR AND LOCAL GOVERNMENT
Region III
FLORIDA M. DIJAN, DPA, CESO III
Regional Director
ABRAHAM A. PASCUA, PhD, CESO III
OIC-Asst. Regional Director
LERRIE S. HERNANDEZ
Chief, Monitoring and Evaluation Division
Regional Focal Person, Manila Bay Clean Up, Rehabilitation and Preservation Project
