Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

17" Congress
First Regular Session

House Bill No. 4828,

Introduced by REP. 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 above CMP 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 faci, an analysis of CMP pipeline data would reveal that a total of
P1.7 billion is needed this year lo service CMP project funding requirements
P660 million for 138 projects approved fo 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 thje‘bill is therefore sought.

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MICHAEL L. ROMERO Ph.D ENRICO A. PINEDA


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

17! Congress
First Regular Session

House Bill No. 4828

Introduced by REP. 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 stale 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 pariner-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 projects identified by
the partner-LGU, The pariner 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 authorized 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 camy out the purposes of this Act shall be
included in the annual budge! of implementing agencies in the General
Appropriations Act (GAA\ of the year following its enactment into law and every
year thereafter.


SECTION 4, ANNUAL REPORTS- The SHFC-NHMFC 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 - Every year after the effectivily 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 — This Act shall take effect fifteen (15) days frorm
the date of its publication in the Official Gazette or in at least two (2)

newspapers of general circulation

Approved.