Philippines Housing Laws, Rules, and Regulations PDF

## COMPENDIUM OF HOUSING LAWS, RULES, AND REGULATIONS, ANNOTATED ### CHAPTER 2 ### THE GOVERNMENT HOUSING STRUCTURE 2.1. The Department of Human Settlements and Urban Development (DHSUD) - The Department of Human Settlements and Urban Development (DHSUD) is the central housing authority in the Ph...

## COMPENDIUM OF HOUSING LAWS, RULES, AND REGULATIONS, ANNOTATED ### CHAPTER 2 ### THE GOVERNMENT HOUSING STRUCTURE 2.1. The Department of Human Settlements and Urban Development (DHSUD) - The Department of Human Settlements and Urban Development (DHSUD) is the central housing authority in the Philippines pursuant to Republic Act No. 11201. - The law consolidated and assumed the policy-making, planning, and regulatory functions of the defunct Housing and Urban Development Coordinating Council (HUDCC) and Housing and Land Use Regulatory Board (HLURB), except for the latter's adjudicatory functions which are now exercised by the Human Settlements Adjudication Commission (HSAC) 2.1.1. DHSUD's Oversight Functions over the Attached or Key Shelter Agencies (KSAS) - The DHSUD exercises oversight functions over its attached agencies or key shelter agencies (KSAS), namely: - National Housing Authority (NHA). It acts as the country's primary shelter production arm; - Home Development Mutual Fund (HDMF) or Pag-IBIG Fund. It focuses on the national savings program and affordable shelter financing for Filipino workers; - National Home Mortgage Finance Corporation (NHMFC). It ensures the availability of affordable housing loans to finance homebuyers through the secondary market for home mortgages. - Social Housing Finance Corporation (SHFC). It undertakes social housing programs catering to the formal and informal settlers belonging to the low-income bracket. - While the Human Settlements Adjudication Commission (HSAC) has assumed and continues to perform the independent adjudication functions of the former HLURB, it is also considered as an attached agency of the DHSUD but only for purposes of policy, planning, and program coordination. 2.1.2. The Bureaus Under The DHSUD - The DHSUD has three (3) bureaus that primarily perform policy development, regulatory functions, and advisory roles. - Environmental, Land Use and Urban Planning and Development Bureau (ELUPDB). Which performs human settlements planning-related functions, including the formulation of planning guidelines, national urban development policies and programs, technical assistance to relevant stakeholders, and land use monitoring. - Housing and Real Estate Development Regulation Bureau (HREDRB), which regulates the development of subdivision and condominium and other real estate projects, including the practice of real estate service by brokers and salespersons, through the formulation, promulgation, and imposition of administrative fines and penalties pursuant to Presidential Decree No. 957 and Batas Pambansa Blg. 220. - Homeowners' Association and Community Development Bureau (HOACDB), which formulates policies and programs to be implemented by the regional offices, monitors the proper implementation of the approved policies and programs, and capacitates the regional offices empowering the Homeowners' Associations (HOAS) within their respective jurisdictions. 2.1.3. DHSUD's Technical and Support Services and Regional Offices - The Department's operations are complemented by one (1) technical service, the Public Housing and Human Settlements Service, and seven (7) support services. - It also has sixteen (16) regional offices strategically located around the country to cater to the needs in the localities. 2.1.4. Planning Function Of The DHSUD - The DHSUD plays the key role of enhancing and strengthening rational housing and land use service delivery through its core functions, namely: policy, planning, and regulation: - As a planning agency, the Department recognizes that plan formulation is the key to the orderly and rational land use and development not only in the urban áreas but also in the countryside. - The development of the Comprehensive Land Use Plans (CLUPs) by the local government units (LGUs) is one such strategy that would address the need to prescribe the developmental pace at the local level and provide for directions and strategies for the optimum use of land resources in a community. - Cognizant of the immense contribution of a CLUP in local and national development and its crucial role in the regulatory environment, it being given flesh for purposes of enforcement through the zoning ordinances, the Department assists the LGUs in the following aspects: - Updating of CLUP Guidelines; - Provision of Technical Assistance (TA) to the LGUs in CLUP preparation and to the members of the Provincial Land Use Committee (PLUC) and the Regional Land Use Committee (RLUC) in the review of CLUPs; - Review and approval of the CLUPs for Highly Urbanized Cities (HUCs), Independent Component Cities (ICCs) and Metro Manila Cities and the Provincial Physical Framework Plans (PPFPs). - Installation of an information system to monitor changes in the actual use of land resources and the implementation of CLUPs by the concerned LGUs. - Updating and revision of the National Urban Development and Housing Framework (NUDHF); and - Training of the LGUs in subdivision plan approval and zoning enforcement. 2.1.5. Regulatory Functions Of The DHSUD - In the area of real estate and housing regulations, the DHSUD performs the following functions: - Approval of condominium plans. - Approval of the expansion of a condominium corporation or integration of a condominium project with another project upon the affirmative vote of a simple majority of registered owners. - Approval of the Master Deed and Declaration of Restrictions of condominium projects and any amendment or revocation of it decided upon by a simple majority of all the registered owners (concurrently with the City or Municipal Engineer). - Assurance of completion of projects. - Assurance of compliance with the balanced housing development requirement. - Issuance of Licenses to Sell. - Issuance of Locational Clearances for projects considered to be of national or regional economic or environmental significance. - Issuance of sales and mortgage clearances for the protection of rights of tenants in the urban and land reform zones and areas for priority development. - Monitoring the development and construction of registered or licensed projects. - Registration and licensing of subdivision and condominium projects, farm lots, memorial parks, and columbaria. - Registration and supervision of HOAs. - Registration of real estate the brokers, dealers, and salesmen engaged in selling projects under the DHSUD's jurisdiction. - Updating and revision of the rules, guidelines, and standards on housing and real estate for residential subdivisions and condominiums and economic and socialized housing projects. 2.1.6. Regulation Of The Real Estate Trade And Business - The DHSUD has exclusive jurisdiction to regulate the real estate trade and business in accordance with the provisions of the Subdivision and Condominium Buyers' Protective Decree or PD 957, as amended by PD 1216. - This jurisdiction to regulate the real estate business is held to be broad enough to include the imposition of fines and other administrative sanctions, including the suspension or revocation of license (to sell) and issuance of a Cease-and-Desist Order (CDO) for violation of the laws, rules, and regulations being implemented by the Department. - A CDO refers to an order issued by the DHSUD directed against a developer enjoining it from committing certain acts in relation to its project by reason of a violation of PD 957, BP 220, or any of their IRRs, or any guidelines or circular issued under them. 2.1.7. Registration Of Subdivision And Condominium Projects; Submission Of Subdivision Plan - The registered owner of a parcel of land who wishes to convert the same into a subdivision project shall submit his subdivision plan to the concerned Sanggunian which shall act upon and approve the same upon a finding that the plan complies with the Subdivision Standards and Regulations enforceable at the time the plan is submitted. - The same procedure shall be followed in the case of a plan for a condominium project except that, in addition, the DHSUD shall act upon and approve the plan with respect to the building or buildings included in the condominium project in accordance with the National Building Code. - The subdivision plan, as approved, shall be submitted to the Director of Lands [now the appropriate office under the Department of Environment and Natural Resources (DENR)] for approval in accordance with the procedure prescribed in Sections 49 and 50 of Presidential Decree No. 1529 or the Property Registration Decree. - In case of complex subdivision plans, court approval shall no longer be required. - The condominium plan, as likewise approved, shall be submitted to the Register of Deeds (RD) of the province or city in which the property lies and the same shall be acted upon subject to the conditions and in accordance with the procedure prescribed in Section 4 of the Condominium Act or RA 4726. 2.1.8. Devolution To The LGUs Of The Power To Approve Subdivision Plans - On March 23, 1993, then President Fidel V. Ramos issued Executive Order No. 71 devolving the powers of the HLURB (now the DHSUD) to approve subdivision plans to cities and municipalities pursuant to RA 7160, otherwise known as the LGC of 1991, which provides that the Sangguniang Bayan or Sangguniang Panlungsod shall process and approve subdivision plan for residential, commercial, or industrial purposes or other development purposes. - Thus, cities and municipalities shall assume the powers of the HLURB (now the DHSUD) over the following: - Approval of preliminary as well as final subdivision schemes and development plans of all subdivisions, residential, commercial, industrial, and for other purposes of the public and private sectors, in accordance with the provisions of PD 957, as amended, and its implementing standards, rules, and regulations concerning the approval of subdivision plans. - Approval of preliminary and final subdivision schemes and development plans of all economic and socialized housing projects as well as individual or group building and occupancy permits covered by BP 220 and its implementing standards, rules, and regulations. - Evaluation and resolution of oppositions against the issuance of development permits for any of the said projects, in accordance with the said laws and the rules of procedure promulgated by the HLURB (now the DHSUD) incident to them. - Monitoring the nature and progress of land development of projects it has approved, as well as housing construction, in the case of house and lot packages, to ensure their faithfulness to the approved plans and specifications and imposition of appropriate measures to enforce compliance with them. - Assessment and collection of fees incident to the foregoing. 2.1.9. Subdivision Development Permit - If the establishment of the subdivision project is physically feasible and does not run counter to the approved zoning ordinance and CLUP of the city or municipality and the subdivision plan complies with the Rules, the same shall be approved and a development permit shall be issued upon payment of the prescribed processing fee. - A subdivision development permit shall only be valid for a period of three (3) years from the date of its issuance, that is, if no physical development is introduced within that period. 2.1.10. Farmlot Subdivision - A "farmlot subdivision" is a planned community intended primarily for intensive agricultural activities, and secondarily for housing. - A planned community consists of the following: - Provision for basic utilities; - Judicious allocation of areas; and - Good layout based on sound planning principles. 2.1.11. Regulation of Farmlot Subdivisions - The Revised Rules And Regulations Implementing The Subdivision And Condominium Buyer's Protective Decree (PD 957) And Other Related Laws. - Cemetery with well-kept, landscaped lawns and wide roadways and footpaths separating the areas assigned for ground interments, tombs, mausoleums, and columbaria, with or without a mortuary chapel. - It is provided with a systematic supervision and maintenance and where park-like atmosphere is its outstanding quality. - "Cemetery," on the other hand, pertains to a public or private land used for the burial of the dead and other uses indicated for cemetery purposes, to include: - Landscaped grounds; - Driveways; - Walks; - Columbaria; - Crematories; - Mortuaries; - Mausoleums: - Niches; - Graveyards; and - Public comfort rooms. 2.1.13. Development Permit and Rules and Regulations for Memorial Parks or Cemeteries - The issuance of a Development Permit by the DHSUD or the city or municipality concerned shall cover the approval of the design as required by the Rules and Regulations for Memorial Parks or Cemeteries which were promulgated by the HLURB on September 21, 2000. - Said Rules and Regulations cover new development and/or expansion or alteration of existing memorial parks or cemeteries and other private burial grounds. 2.2.14. Need for Initial or Operational Clearance by the DOH - The initial or operational clearance by the Department of Health (DOH) to establish a memorial park or cemetery as required by PD 856 or the Sanitation Code of the Philippines shall be sought by the owner or developer before applying for preliminary approval and operational clearance from the DOH prior to the actual operation of the cemetery or memorial park. 2.2. The Human Settlements Adjudication Commission (HSAC) - The Human Settlements Adjudication Commission (HSAC) is vested with exclusive and original jurisdiction to hear and decide cases involving real estate developments and transactions. - Under RA 11201, the HSAC shall be composed of the following: - Commission en banc - Five (5) Commissioners appointed by the President shall comprise the Commission. The Executive Commissioner, chosen by the President from among the five (5) Commissioners, shall be responsible for the administration and operations of the Commission, including the supervision of personnel, and shall be assisted by the Executive Clerk of the Commission. - Regional Adjudication Branch (RAB) - There shall be as many Regional Adjudication Branches as there are Regional Offices of the DHSUD. The President shall appoint as many Regional Adjudicators as may be necessary, upon the recommendation of the DHSUD Secretary. 2.2.1. Adjudicatory Functions and Jurisdiction of the HSAC - The adjudication functions of the defunct HLURB have been given to the HSAC which, along with the DHSUD, was created by virtue of RA 11210. - It is a purely quasi-judicial body which is empowered to adjudicate controversies and disputes such as those concerning: - Real estate development; - Homeowners' association (HOA). and - Appeals from decisions of local and regional planning and zoning bodies. 2.2.2. Specific Disputes or Controversies Under The HSAC's Jurisdiction - Specifically, the proceedings before the HSAC shall apply to the following disputes or controversies: - Cases involving subdivisions, condominiums, memorial parks, and similar real estate developments. - Actions concerning unsound real estate business practices filed by buyers or homeowners against the project owner or developer which: - Cause prejudice to the buyers. or - Are committed with bad faith and in disregard of the buyer's rights. - Claims for refund, and other claims filed by a subdivision lot or condominium unit buyer against the: - Project owner; - Project developer; - Dealer; - Broker; or - Salesman: Cases involving specific performance of contractual and statutory obligations arising from the sale of the lot or unit and development of the subdivision or condominium project. - Disputes involving the open spaces or common areas and their use filed by the project owner or developer or the duly registered HOA, including the eviction of their illegal occupants, in accordance with the requirements of law, and the rules and regulations promulgated by the duly constituted authorities. - Suits to declare the subdivision, condominium, other real estate developments within the regulatory jurisdiction of the DHSUD as abandoned, as defined under Section 3(a) of RA 11201 for the purpose of Section 35 of PD 957. - Disputes involving easements within or among subdivision projects. - Actions to annul mortgages and other agreements executed in violation of Section 18 of PD 957 filed by a subdivision lot or condominium unit buyer against the project owner and/or developer and the mortgagee. - Cases involving HOAs: - Controversies involving the registration and regulation of HOAs. - When the cause of action arises from the buyer's rights under Section 23 of PD 957 and the purchase price of the property is paid through a housing loan from a bank or other financing institutions, the latter shall be impleaded as necessary party. - Abandoned subdivision or condominium refers to a project whose development has not been completed in accordance with the approved development plan despite the lapse of at least ten (10) years from the target date of completion and it appears that said project owner or developer has no intention to complete the project development or, despite diligent effort for at least the last five (5) years, the project owner or developer cannot be located. - Section 35. Take-over Development. The Authority (now the DHSUD), may take over or cause the development and completion of the subdivision or condominium project at the expenses of the owner or developer, jointly and severally, in cases where the owner or developer has refused or failed to develop or complete the development of the project as provided for in this Decree. - The Authority (DHSUD) may, after such take-over, demand, collect and receive from the buyers the installment payments due on the lots, which shall be utilized for the development of the subdivision. - Section 18. Mortgages. No mortgage on any unit or lot shall be made by the owner or developer without prior written approval of the Authority (now the DHSUD). Such approval shall not be granted uniess it is shown that the proceeds of the mortgage loan shall be used for the development of the condominium or subdivision project and effective measures have been provided to ensure such utilization. The loan value of each lot or unit covered by the mortgage shall be determined and the buyer thereof, if any, shall be notified before the release of the loan. The buyer may, at his option, pay his installment for the lot or unit directly to the mortgagee who shall apply the payments to the corresponding mortgage indebtedness secured by the particular lot or unit being paid for, with a view to enabling said buyer to obtain title over the lot or unit promptly after full payment thereto. (1) Appeals from the decisions of the HSAC Regional Adjudicators on the above cases: (m) Appeals from the decisions of local and regional planning and zoning bodies; and (n) Other analogous cases. 2.2.3. HSAC's Jurisdiction Over Cases Filed By Subdivision Lot Or Condominium Unit Buyers Against Subdivision Or Condominium Owners Or Developers; Rationale - The HSAC acquired the adjudication function of the defunct HLURB and has assumed jurisdiction over cases filed by subdivision lot or condominium unit buyers against subdivision or condominium owners or developers. - The rationale behind this can be found in the wording of Section 1 of PD 1344 which expressly qualifies that the cases cognizable by the HLURB (now the HSAC, with respect to adjudicatory functions) are those instituted by subdivision or condominium buyers against the project developer or owner, and not the other way around. - In the context of the evident objective of Section 1 of PD 1344, it is implicit that the "unsound real estate business practice" would, like the offended party in paragraphs (b) and (c), be the buyers of lands involved in development. (2). Intra-association disputes or controversies arising out of the relations: i. between and among members of HOAs; and ii. between any or all of them and the HOA of which they are members; (3). Inter-association disputes or controversies arising out of the relations between and among two (2) or more HOAS, or federations between and among and other umbrella organizations, on matters pertaining to the exercise of their rights, duties, and functions: (4). Disputes between such HOA and the State, insofar as it concerns their individual franchise or right to exist and those which are intrinsically connected with the regulation of HOAs or dealing with the internal affairs of such entity, including, but not limited, to violations of Sections 18 and 19 of RA 9904; and (5). Disputes between such HOA and the beneficial users of its services; (j). Disputes involving the implementation of Section 18 of RA 7279, as amended by RA 10884, and its Implementing Rules and Regulations (IRR); (k). Disputes or controversies involving laws and regulations being implemented by the DHSUD, except those cases falling within the jurisdiction of other judicial or quasi-judicial body; - Presidential Decree No. 1344, Empowering the National Housing Authority (now the Human Settlements Adjudication Commission) to issue Writ of Execution in the Enforcement of its Decision under Presidential Decree No. 957. - (b) claims involving refund and any other claims filed by subdivision lot or condominium unit buyer against the project owner, developer, dealer, broker, or salesman xxx - Balanced housing development provision. 2.3. The National Housing Authority (NHA) On July 31, 1975, the National Housing Authority (NHA) was created by virtue of PD 757 in place of the then existing housing agencies for the purpose of developing and implementing the comprehensive and integrated housing program which shall embrace, among others: - Housing development and resettlement; - Sources and schemes of financing; and - Delineation of government and private sector participation. 2.3.2. Housing Programs Of The NHA - The NHA is also mandated as the sole national government agency to engage in shelter production focusing on the housing needs of the lowest thirty percent (30%) of the urban population. - It was additionally tasked with the implementation of the following components of the National Shelter Program: - Resettlement Program; - Medium Rise Public and Private Housing; - Cost Recoverable Programs; and - Local Housing Program. - At present, the NHA, as the production and financing arm in housing, is implementing the following housing programs: - Housing program for the Informal Settler Families (ISFs) living along danger areas in Metro Manila; - Resettlement program for ISFs affected by the Supreme Court's mandamus to clean-up the Manila Bay area. - Resettlement Assistance Program to LGUs (RAP-LGU). - Housing Assistance Program for Indigenous Peoples (HAPIP). - Resettlement Assistance for Former Rebels. - Comprehensive Social Benefits Program (CSBP) for the AFP personnel who are Killed in Action or Wounded in Action (KIA / WIA) and the PNP personnel who are Killed in Police Operations or Wounded in Police Operations (KIPO/WIPO). - Government Employees Housing Program; - Settlements Upgrading (SU); - Marawi Rehabilitation; - Housing Assistance Program for Calamity Victims (HAPCV); and - Emergency Housing Assistance Program (EHAP). - https://nha.gov.ph/programs/-Last accessed on March 30, 2024 2.4. Home Development Mural Fund (HDMF) or Pag-IBIG Fund - The Home Development Mutual Fund (HDMF), or more popularly known as the Pag-IBIG Fund, was established on 11 June 1978 by virtue of PD 1530 in answer to the need for a national savings program and an affordable shelter financing for the Filipino workers. - Under the said law, there were two (2) agencies that administered the Fund, namely: - Government Service Insurance System (GSIS) with respect to the fund for government employees established and maintained by the contributions of government employees and the National Government. - Social Security System (SSS) with regard to the Fund for private employees established and maintained by the contributions of private employees and their respective employers. - On March 1, 1979, EO 527 was signed into law directing the transfer of the administration of the Fund to the National Home Mortgage Finance Corporation (NHMFC) which was one of the operating agencies of the then Ministry of Human Settlements (MHS). - EO 538 was issued on June 3, 1979 merging the Funds for the private and government employees into what was to be known as the Pag-IBIG Fund - However, it was only on December 14, 1980 that the Pag-IBIG Fund was made independent from the NHMFC with the enactment of PD 1752 which amended PD 1530. - Under the amendatory law, the Fund's rule-making power was vested in its own Board of Trustees and membership to the Fund was made mandatory for all SSS and GSIS member-employees 2.4.1. Home Development Mutual Fund Law of 2009 - On July 21, 2009, RA 9679 or the "Home Development Mutual Fund Law of 2009" was signed into law making membership to the Pag-IBIG Fund mandatory for: - All SSS and GSIS-covered employees; - Uninformed members of the: - Armed Forces of the Philippines (AFP); - Bureau of Fire Protection (BFP); - Bureau of Jail Management and Penology (BJMP); and - Philippine National Police (PNP); and - Filipinos employed by foreign-based employers. 2.4.2. Pag-IBIG Exemption From Tax Payments - RA 9679 also grants the HDMF or Pag-IBIG Fund exemption from tax payments like other government provident institutions. - With its tax-exempt status reinstated, Pag-IBIG has more funds to finance housing and short-term loans as well as investments in government securities. - Income from these endeavors is distributed exclusively to Pag-IBIG members in the form of dividends.. 2.4.3. Contribution Rates for Pag-IBIG Members - The HDMF Law of 2009 also gives the Board of Trustees the authority to set the contribution rates which will pave the way for members to save more for their future and bolster the Fund's resources for home financing as well. - Pursuant to such power, the Pag-IBIG Fund Board of Trustees approved last year a contribution increase for both employees and employers which took effect in February 2024. - This adjustment was designed to double the savings and increase the cash loan entitlements for members of the Fund. - With the Pag-IBIG contribution increase, both the employee's and employer's monthly savings to Pag-IBIG Fund will be two hundred pesos (P200.00) each, up from the current one hundred pesos (P100.00). - At the same time, the maximum monthly compensation used in calculating these savings will rise to ten thousand pesos (P10,000.00) from the previous five thousand pesos (P5,000.00). 2.4.4. Pag-IBIG Board Of Trustees - The Pag-IBIG Board of Trustees is composed of the DHSUD Secretary as the Ex Officio Chairman, the Secretary of the Department of Finance (DOF) as the Ex Officio Vice Chairman, and the following as Trustees: - Chief Executive Officer, Pag-IBIG Fund (HDMF), Ex Officio Member; - Secretary, Department of Budget and Management (DBM), Ex Officio Member. - Secretary, Department of Trade and Industry (DTI), Ex Officio Member: - Secretary, Department of Labor and Employment (DOLE), Ex Officio Member. - Two (2) Private Employers' Representatives, Members; - Two (2) Private Employees' Representatives, Members: and - One (1) Government Employees' Representative, Member. 2.4.5. Benefits Of Membership In Pag-IBIG Fund - Among the benefits that can be derived from being a member of the Pag-IBIG Fund can be found in the following programs: - Housing Loan; - Multi-Purpose Loan (MPL); - Calamity Loan; - Provident Savings: and - Pag-IBIG MPII (MP2). - https://cloudcfo.ph/blog/payroll/pagibig-contribution-increase-2024 - Last accessed on April 21, 2024. - The most popular program benefit of the Pag-IBIG Fund offers assistance to its members by providing affordable financing for their housing needs. HDMF accomplishes this by working in partnership with the local Real Estate Developers and arranging affordable loans to real estate buyers (Pag-IBIG members). The loan had a lower interest rate compared to the prevailing rate in the market and payable in longer terms. Pag-IBIG Fund offers a home loan at a low interest rate of 4.5% (for 450.000 loan) with a loan term of up to 30 years. A qualified member can get a maximum loan amount of up to P 6 Million. [Pag-IBIG Fund - Wikipedia - Last accessed on March 30, 2024] - This program aims to provide financial assistance to members for house repair, minor home improvement, home enhancement, tuition or educational expenses, health and wellness, livelihood; or other purposes. To avail the program, a member must made at least twenty-four-month membership savings, or the total savings is equivalent to twenty-four (24) membership savings and must have at least one (1) contribution within the last six (6) months as of month prior to date of loan application. - For members affected by unforeseen calamity like flood, fire, tropical cyclones/ typhoons volcanic eruption and other similar cases. Members can borrow up to eighty percent (80%) of their Total Accumulated Value (TAV) subject to the terms and conditions of the program. Calamity Loan Interest rate is 5.95% per annum. The loan is amortized over twenty-four (24) months, with a grace period of three (3) months. Paying period begins on the 4th month following their check date. - Membership contributions to the Pag-IBIG fund is a member's individual savings, which a member can withdraw at the maturity date. Pag-IBIG Fund makes clear that members' contributions, plus that their employer will earn dividend. All that money, called Total Accumulated Value (contributions plus dividend) can be withdrawn when it reaches maturity or two hundred forty (240) months of contributions for at least forty-five (45) years old. Unlike the money in a bank regular savings where the interest rate is given, member's earnings in the fund is not readily foreseen ahead of time. It essentially participating in investment and membership earnings will depend on the overall performance of that investment. - Pag-IBIG MPII, Modified Pag-IBIG II, or simply MP2 is a government-backed voluntary savings program that provides tax-free annual dividend, which is fifty (50) basis points higher than those given to the mandatory, regular membership. Dividend varies annually and is determined according to the fund's financial performance for the said year It has a five-year term that requires a minimal requirement of P500 and without any maximum capital ceiling. Contributions can be made through various payment channels or via salary deduction through employer arrangement. - https://www.pagibigfund.gov.ph/history.html - Last accessed on March 30.2024 2.5. National Home Mortgage Finance Corporation (NHMFC) - The National Home Mortgage Finance Corporation (NHMFC) was created in 1977 by virtue of PD 1267 with the mandate of developing and providing for a secondary market for home mortgages granted by public and/or private home financing institutions. - Under EO 90 which was signed into law on December 17, 1986, the NHMFC was tasked to operate a viable home mortgage market by utilizing long-term funds principally provided by the Social Security System (SSS), the Government Services Insurance System (GSIS), and the Home Development Mutual Fund (HDMF) for the purchase of mortgages originated by both private and public institutions that are within the government-approved guidelines. - It was also charged with the development of a system that will attract private institutional funds into long-term housing mortgages. 2.5.1. Programs Which By Law Are Under The Administration Of The NHMFC - The NHMFC has also administered the: - Community Mortgage Program (CMP) which was amended under RA 7279 (UDHA); and - Abot-Kaya Pabahay Fund (AKF) Program which was created under RA 6846. - Community Mortgage Program (CMP) is a component of the National Shelter Program under RA 7279 (UDHA) which assists legally-organized associations of underprivileged and homeless citizens to purchase and develop a tract of land and to own lots they occupy or where they choose to relocate to, under the concept of community ownership." - The Abot Kaya Pabahay Fund (AKPF), otherwise known as the Social Housing Support Fund Act, was created under RA 6846 on January 24, 1990, in support to the National Shelter Program (NSP) of the government. 2.5.2. NHMFC Board Of Directors - The NHMFC Board of Directors is made up of the following: - DHSUD Secretary as Ex Officio Chairman: - NHMFC President as Chairman Ex Officio Vice-Chairman - Governor, Bangko Sentral ng Pilipinas (BSP), Ex Officio Member; - Secretary, Department of Budget and Management (DBM), Ex Officio Member; and - Secretary, Department of Finance (DOF), Ex Officio Member. 2.6. Social Housing Finance Corporation (SHFC) - The Social Housing Finance Corporation (SHFC) was created under Executive Order No. 272 which was issued by former President Gloria Macapagal-Arroyo on January 20, 2004. - EO 272 directs the transfer of the Community Mortgage Program (CMP), Abot Kaya Pabahay Fund (AKPF) Program, and other social housing powers and functions of the NHMFC to the SHFC, a wholly-owned subsidiary of the former, formed in accordance with the Corporation Code and the pertinent rules and regulations issued by the SEC. - On June 21, 2005, the SHFC registration was approved by the SEC. 2.6.1. SHFC Board Of Directors - to implement a continuing program on social housing that shall make available to low-income families affordable houses and/or lots by establishing a financial support system that shall encourage the active participation of the private sector. - The SHFC Board of Directors is composed of. - DHSUD Chairman as Ex Officio Chairman; - SHFC President as Ex Officio Vice-Chairman: - Secretary of the Department of Finance (DOF) or his designated representative; - Secretary of the Department of the Interior and Local Government (DILG) or his designated representative: - Secretary of the Department of Budget and Management (DBM) or his designated representative; - Representative from the Bangko Sentral ng Pilipinas (BSP) designated by the BSP Governor; - President of the National Home Mortgage Finance Corporation. (NHMFC); and - Four (4) Private Sector Representatives. 2.6.2. Programs Administered By The SHFC - As mandated by EO 272, the SHFC is administering the following programs: - Community Mortgage Program (CMP); - Abot-Kaya Pabahay Fund Development Loan Program (AKPF-DLP).. - CMP is a people-led housing finance and community development program implemented by SHFC which assists legally organized associations of low-income groups to acquire and develop a tract of land under the concept of community ownership. - The primary objective of the program is to assist residents of blighted or depressed areas to own the lots they occupy, or where they choose to relocate to, and eventually create sustainable and resilient communities in coordination with the LGUs. - AKPF-DLP aims to provide low-income families in key urban areas affordable houses by financing site development or improvements and house/building construction in CMP and other socialized housing projects. - High Density Housing (HDH) Program; - Localized Community Mortgage Program (LCMP); and - Pambansang Pabahay para sa Pilipino Housing (4PH) Program. - The program is open to corporations single proprietorship, and LGUs with partner developer of socialized housing projects. - The HDH program is the SHFC's participation to the ISFs Housing Program being implemented by the incumbent administration with an allocated budget of P50-billion for five (5) years. - The ISFs Housing Program aims to ensure safe and flood-resilient permanent housing solutions for the ISFs living in danger areas of the NCR. - The LCMP was approved by the SHFC Board of Directors on 27 July 2007 as a derivative of the CMP that would assist and empower the LGUs in achieving their housing programs for the informal sector in their respective areas. - Under the LCMP, a qualified partner-LGU may apply for an omnibus commitment line (maximum of P50 million) made available by SHFC to accommodate priority social housing projects identified by the partner-LGU. - The partner LGU shall be required to put up 25% (minimum) of the total project cost as counterpart contribution for the project. - The counterpart maybe in the form of real estate property owned