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Social Housing Finance Corporation

Social Housing Finance Corporation. a subsidiary of National Home Mortgage Finance Corporation. WHAT IS THE LCMP?.

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Social Housing Finance Corporation

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  1. Social Housing Finance Corporation a subsidiary of National Home Mortgage Finance Corporation WHATIS 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-LGU’s OCL shall be as follows: • > On-site projects – for the purpose of acquiring the land occupied by informal settlers of the partner-LGUs; 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

  2. Social Housing Finance Corporation a subsidiary of National Home Mortgage Finance Corporation • As partners in this undertaking, the SHFC will have a 75% share in the total project cost while the LGU will shoulder the remaining 25% for every project/s enrolled by the partner-LGU in the OCL. The 25%* contribution 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 at least 25% of the lot price (privately owned land); or • Site development • * Reduced to 10% for 5th and 6th Class Cities and Municipalities as approved by POLCOM

  3. PROCESS FLOW Identify the LCMP Projects Accredits CMP Mobilizer/s Landowner (private or LGU) Community Association Partner-LGU (Process Loan and Mortgage Documents) Pays Landowner Amortize Loan Assist CA Delivers documents Submits complete loan documentation Collecting Bank (LBP) or to SHFC CMP Mobilizer/s (NGO, PO, GA or KSA) Social Housing Finance Corp. (SHFC)

  4. Social Housing Finance Corporation a subsidiary of National Home Mortgage Finance Corporation ROLES OF THE PARTIES INVOLVED IN THE LCMP

  5. Social Housing Finance Corporation a subsidiary of National Home Mortgage Finance Corporation ROLES OF THE PARTIES INVOLVED IN THE LCMP

  6. Social Housing Finance Corporation a subsidiary of National Home Mortgage Finance Corporation ROLES OF THE PARTIES INVOLVED IN THE LCMP

  7. Social Housing Finance Corporation a subsidiary of National Home Mortgage Finance Corporation ROLES OF THE PARTIES INVOLVED IN THE LCMP

  8. Social Housing Finance Corporation a subsidiary of National Home Mortgage Finance Corporation ROLES OF THE PARTIES INVOLVED IN THE LCMP

  9. Social Housing Finance Corporation a subsidiary of National Home Mortgage Finance Corporation ROLES OF THE PARTIES INVOLVED IN THE LCMP

  10. 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.

  11. 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

  12. Social Housing Finance Corporation a subsidiary of National Home Mortgage Finance Corporation WHAT ARE THE DOCUMENTARY REQUIREMENTS IN THE ACCREDITATION OF AN LGU IN THE LCMP? • Proforma Application Form; • Updated inventory of local housing backlog; • Municipal/City Council Resolution for the creation of a Local Housing Board (LHB) with equitable multi sectoral representation and must have a NGO/PO representative involved in housing and urban development; • Municipal/City Council approved organizational structure and personnel complement of the unit/department in-charge of socialized housing or other housing programs;

  13. Social Housing Finance Corporation a subsidiary of National Home Mortgage Finance Corporation • Municipal/City Council Resolution authorizing the Local Chief Executive to make a refundable cash deposit equivalent to six (6) months amortization of CA loan in favor of SHFC as performance warranty for the project (s) to be enrolled under the OCL as well as authorizing the said Local Chief Executive to sign, negotiate and transact with SHFC and other LCMP partners to fully operationalize and implement LCMP in the locality; • Municipal/City Council Resolution specifying the list of priority projects together with its respective funding allocations; • Project Profile of projects to be enrolled including: - Appraisal Report; - Masterlist of Beneficiaries • Municipal/City approved Ordinance indicating the procedure and criteria for accreditation of CMP Mobilizers.

  14. Social Housing Finance Corporation a subsidiary of National Home Mortgage Finance Corporation If available, the following documents shall also be submitted: • An updated Comprehensive Land Use Plan (CLUP) and Comprehensive Shelter Plan (CSP) approved by their respective LHB; • Municipal/City Council ratified Annual Investment Plan (AIP) indicating the prioritized LCMP project/s for the year and the approved regular budget allocation for housing; and • Commission on Audit (COA) Audited Financial Statements for the past three (3) years.

  15. Social Housing Finance Corporation a subsidiary of National Home Mortgage Finance Corporation • Amendments • The CLUP, CSP and 3 years audited Financial Statements requirements are now optional depending on their availability • The LGU equity was reduced from 25% to 10% for 5th and 6th class Cities and Municipalities. However, the 25% equity stays for 1st to 4th class Cities and Municipalities • Concerns • Difficulty in complying with LGU accreditation requirements • Limited or no funding allocation for housing for small LGUs resulting in difficulty in putting up the required 25% equity

  16. Social Housing Finance Corporation a subsidiary of National Home Mortgage Finance Corporation Amendments 3. The assignment of IRA as guarantee for the P50 Million OCL is now replaced with a refundable deposit equivalent to 6 months monthly amortizations of the project, refundable upon completion of post audit of the project by SHFC within 4 months from release of loan. 4. The collection function is no longer passed on to the LGU, it remains with SHFC. However, the LGU will provide assistance in the collection activities of SHFC. As incentive, the LGU gets 1/6 of the interest collected monthly provided the CER of the project is 90%-100%. • Concerns • 3. Difficulty in assigning the IRA as guaranty to the OCL to ensure immediate post audit regarding LGU compliance of Loan documentation and refund of the Project Performance Warranty • 4. Difficulty of LGU in hiring of additional manpower for collection and setting up of collection system

  17. Social Housing Finance Corporation a subsidiary of National Home Mortgage Finance Corporation • Amendments • 5. The LGU will no longer pay the processing fee of their accredited mobilizer, instead SHFC shall pay the LGU accredited Mobilizer 2% of the loan amount as processing fee. Concerns 5. Origination fee / service fee of the LGU Accredited CMP Mobilizers

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