Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

18TH CONGRESS
First Regular Session

House Bill No. 1172

Introduced by Representatives Michael L. Romero and
Enrico A. Pineda

EXPLANATORY NOTE

There is an urgent need for more Funds to support the present and future
Community Mortgage Program (CMP) operations and other Social Housing
Finance Corporation (SHFC) programs. Given the abo’ “MP targets and SHFC
corporate developments, the Five hundred million (P500,000,000.00) annual

allocation of the government may not be enough to cover their current and future
operations.

For CMP alone, a total of 264 project application worth One billion and Nine
hundred million pesos (P1,900,000,000.00) have been received by SHFC as of
May 2008. In fact, an analysis of CMP pipeline data would reveal that a total of
P17 billion is needed this year to service CMP project funding requirements:
660 million for 138 projects approved to be taken out; P319 million for 121
projects waiting for final payments; and P978 million for 145 projects which are
already in the advance stage of processing.

This House Bill seeks to ensure that the community association (CAs) complies
to the submission of requirements, eliminate disputes among members of the
CAs, provide sufficient SHFC human resource complement for the program and
provide the proper financial assistance

Approval of this bill is therefore sought. , »

La aa
MICHAEL L. ROMERO Ph.D. ike A PINEDA
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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

18TH CONGRESS
First Regular Session

House Bill No. 1172

Introduced by Representatives Michael L. Romero and
Enrico A. Pineda

AN ACT

TO PROVIDE A SEPARATE BUDGET-SUBSIDY TO THE
LOCALIZED COMMUNITY MORTGAGE PROGRAM (LCMP), TO
EMPOWER LOCAL GOVERNMENT HOUSING PROGRAMS, AND

FOR OTHER PURPOSES

Be it enacted by the Senate and the House of Representatives of the Philippines
In Congress assembled:

SECTION 1. DECLARATION OF POLICY - the state shall hereby provide
sufficient SHFC human resource complement for its programs, provide the

adequate amount in terms of financial assistance for the associations of the
underprivileged.

The state shall hereby undertake social housing programs that will cater

to the formal and informal sectors in the low-income bracket

The state shall hereby take charge of developing and administering social

housing programs, particularly the Community Mortgage Program (CMP)

The state shall hereby provide amortization support program, development
program and financing program


SECTION 2. IMPLEMENTING RULES AND REGULATIONS - 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 local government unit (LGU) 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 Fifty million pesos (P50,000,000.00) made
available by SHFC to accommodate priority social housing project

's identified by
the partner-LGU. The partner LGU shall be required to put up Twenty five
percent (25%), minimum, of the total project cost as counterpart contribution
for the project. The counterpart maybe in the form of real estate property owned

by the LGU, site development or cash financing

SECTION 3. APPROPRIATION - The State shall hereby provide a separate
authorize capitalization of Two billion pesos (P2,000,000,000.00) to evolve and
implement a comprehensive national program to meet the housing and related

needs of marginal families in the country.

The state shall hereby authorize the Social Housing Finance Corporation
(SHFC) to re-align its appropriations, in the current year of the date of the

effectivity of this Act to conform with its mandate and requirements.

The amount necessary to carry out the purposes of this Act shall be

included in the annual budget of implementing agencies in the

neral

Appropriations Act (GAA) of the year following its enactment into law and every
year thereafter.

SECTION 4. ANNUAL REPORTS - The SHFC-NHMPC shall hereby submit
periodic reports on its findings and make recommendations on actions to be

taken by Congress and Senate and the appropriate department


SECTION 5. AUTOMATIC REVIEW

ery year after the effectivity of this
Act, an independent review panel composed of experts to be appointed by the
President shall review the policies and programs in the SHFC-NHMFC and shall
make recommendations, based on its findings, to the President and to both

Houses of Congress.

SECTION 6. SEPARABILITY CLAUSE - If any provision or section of this
Act or the application thereof to any person or circumstances is held invalid, the
other provisions or sections of this Act shall remain valid, and the application of
such remaining provisions or sections to the other persons or circumstances,
shall not be affected thereby.

SECTION 7. REPEALING CLAUSE - All provisions and any other
provisions inconsistent with the provision of this Act are hereby amended
accordingly.

SECTION 8. EFFECTIVITY CLAUSE - This Act shall take effect fifteen

(15) days from the date of its publication in the Official Gazette or in at least two

(2) newspapers of general circulation.

Approved