Social Housing Finance Corporation

a subsidiary of National Home Mortgage Finance Corporation

SHFC MANDATES
Created by Executive Order No. 272 (20 January 2004) Ma. Ana R. Oliveros President Eduardo T. Manicio Executive Vice President Wholly-owned subsidiary of the National Home Mortgage Finance Corporation Mandated: To undertake Social Housing Programs for informal and formal sectors in the low income bracket. To administer the Community Mortgage Program (CMP) and Abot-Kaya Pabahay Fund (Amortization Support Program and Developmental Loan Financing

Social Housing Finance Corporation

a subsidiary of National Home Mortgage Finance Corporation

WHAT IS THE CMP?

The Community Mortgage Program (CMP) utilizes an innovative system of mortgage financing whereby an undivided tract of land may be acquired by several beneficiaries through the concept of community ownership for subsequent individualization of the mother title under the name of the memberbeneficiaries.

Social Housing Finance Corporation

a subsidiary of National Home Mortgage Finance Corporation

LOAN DETAILS
Interest rate: 6% per annum Maximum term: 25 years payable in equal monthly payments Loan Repayment: one (1) month after the release of the loan proceeds
AMOUNT Metro Manila/ Other Areas HUA P 90,000.00 P616.77 P 60,000.00 P411.18

PURPOSE Lot Acquisition Monthly Amortization

(Inclusive of MRI)

Social Housing Finance Corporation

a subsidiary of National Home Mortgage Finance Corporation

Social Housing Finance Corporation

Local Government Unit (LGU)

Localized Community Mortgage Program

Social Housing Finance Corporation

a subsidiary of National Home Mortgage Finance Corporation

WHAT IS THE RATIONALE OF THE LCMP?

The LCMP seeks to contribute to the fulfillment of the LGUs mandate (per RA 7160 and RA 7279) of implementing a comprehensive and continuing urban development program and uplift the conditions of the underprivileged and the homeless in their respective localities. The LCMP will serve as a vehicle that will enable the LGUs to maximize the utilization of their limited housing budget, with SHFC providing an additional funding equivalent to 75% - 90% of the project cost thereby increasing their budget utilization to four times to ten times (4x 10x) the original amount.

Social Housing Finance Corporation

a subsidiary of National Home Mortgage Finance Corporation

WHAT IS THE LCMP?

Qualified partner-LGUs may apply for an Omnibus Commitment Line (OCL) with a one (1) year validity from date of approval made available by SHFC based on projects identified by the partner-LGUs. The OCL shall not exceed P50,000,000.00 per LGU.

The projects that may be enrolled under the partner LGUs OCL shall be as follows: > On-site projects for the purpose of acquiring the land occupied by their informal settlers; or > Off-site projects for the purpose of acquiring and developing the land where informal settlers (covered by court eviction order, residing in danger zones, or voluntary transfer of one or several communities from the locality) will be relocated through the concept of community ownership

Social Housing Finance Corporation

a subsidiary of National Home Mortgage Finance Corporation

As partners in this undertaking, the SHFC will have a 75% - 90% share in the project cost while the equity required from the partner-LGU are as follows: Twenty-five percent (25%) of the project cost for 1st to 4th class cities; or Ten percent (10%) of the project cost for 5th and 6th class cities and all municipalities

The equity of the LGU in the project cost can come in any of the following form:

Land owned by the partner-LGU to serve as site of the project; Cash financing to pay-off the lot price (privately owned land); or Site Development

Social Housing Finance Corporation

a subsidiary of National Home Mortgage Finance Corporation

WHAT ARE THE ROLES OF THE PARTNER-LGU?

Performs all pre take-out functions in accordance with SHFC policies and guidelines as follows: Accreditation of Non-Government Organizations/Private Organizations (POs) as CMP Mobilizers; Background Investigation of CA, Site Inspection and Appraisal of Project(s); Loan examination; and Mortgage examination SHFC shall train the LGU Housing Unit personnel in the conduct of the forgoing activities. To ensure the capability build-up , the LGU shall be assisted by SHFC in the processing of the first two (2) projects. Assists SHFC in its post take-out intensified collection of monthly amortization and also assists the CAs in the individualization of community loan and title consistent with the existing SHFC CMP guidelines

PROCESS FLOW
Identify the LCMP Projects Accredits CMP Mobilizer/s

Community Association

Partner-LGU (Process Loan and Mortgage Documents)

Landowner (private or LGU)

CMP Mobilizer/s (NGO, PO, GA or KSA)

Collecting Bank (LBP) or to SHFC

Social Housing Finance Corp. (SHFC)

Pays Landowner

Assist CA

Social Housing Finance Corporation

a subsidiary of National Home Mortgage Finance Corporation

WHAT ARE THE LGU BENEFITS FROM THE LCMP?

Early turn-around of LGU funded housing projects The LGU shall be entitled to 1/6 of actual amount of interest collected from the CA monthly loan amortization as incentive for collection services rendered if Collection Efficiency Rating (CER) of the project reaches 90-100% rating, provided further that they have assisted SHFC in its collection campaign. The 1/6 interest incentive shall however be released only after the issuance of post-audit clearances from SHFC.

Social Housing Finance Corporation

a subsidiary of National Home Mortgage Finance Corporation

SAMPLE COMPUTATION
1/6 of interest collected from the CAs monthly amortization (accumulated during the term of the loan) Php 50million = Php 7.4million

Social Housing Finance Corporation

a subsidiary of National Home Mortgage Finance Corporation

ACCREDITED LGUs
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. Island Garden City of Samal Naga City Talisay City, Cebu Lucena City, Quezon Talavera, Nueva Ecija Davao City Malolos City, Bulacan Pagbilao, Quezon Puerto Princesa City Tarlac City La Paz, Tarlac 13. Kidapawan City 14. Silay City 15. Calamba City 16. Tacloban City 17. Panabo City 18. Gingoog City 19. Cadiz City 20. Catbalogan City 21. Banaybanay, Davao Oriental 22. Butuan City 23. Bacolod City

12. Mati City

Social Housing Finance Corporation

a subsidiary of National Home Mortgage Finance Corporation

PROJECTS ENROLLED
Particulars Taken-out No of Projects 16 No. of Beneficiaries 985 Loan Amount P27,441,212.61

For Take-out
With OCL TOTAL

2
45 63

125
4,924 6,034

2,740,000.00
P182,465,905.97 P212,647,118.58

CONTACT US
SHFC Corporate Office: 5F BDO Plaza, Paseo de Roxas Avenue, Makati City Tel. no. (02) 7506337 loc. 120 http://www.shfcph.com