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Group proposes P65-b housing fund

By Othel V. Campos | Jun. 03, 2014 at 12:01am [ manilastanardtoday.com ]

A group of home builders has proposed the creation of a P65-billion assistance program for all income-earners who have not yet availed of housing loans from any government institution.

The Chamber of Real Estate and Builders Association Inc. said the proposed Omnibus Housing and Urban Development Act of 2014 aimed to give all duly-employed individuals a chance to have their own home.

The group said the proposed program would be administered by the National Home Mortgage Finance Corp.  The program will also include under its network all direct home lending operations of Social Security System, Government Service Insurance System and Home Development Mutual Fund or Pag-IBIG Fund.

The proposed bill also seeks the creation of the Housing and Urban Development Department that will undertake a just and comprehensive solution to the perennial housing problem and ensure the optimum utilization of land resources in improving the quality of life of the Filipino people.

It aims to stimulate private homebuilding activity to levels that will promote and sustain economic growth and development in terms of expanded opportunities for employment, business and government revenues as well as promote the orderly development and growth of urban and urbanizing communities nationwide.

Creba said all employed individuals whether or not members of SSS, GSIS or Pag-IBIG Fund but have not availed of any housing loan from any government agency would be eligible to avail of housing loans under the proposed program.

The P65-billion fund will be sourced from the unused portion of the Agri-Agra funds of banks, P10 billion each from the SSS and GSIS and P70 billion from the HDMF and such other funds as may be generated, pursuant to the law.

Under the proposed bill, all financing entities such as banks, SSS, GSIS and Pag-IBIG shall remit in cash to the NHMFC their respective contributions in exchange for NHMFC bonds, promissory notes and/or other similar instruments with maturities of not less than five years but not more than 10 years and fully guaranteed by the Home Guaranty Corp. as to principal and interest.

The said fund shall be used exclusively for homebuyer financing and no part of the fund shall be used for administrative or operating expenses of the NHMFC.  The NHMFC will create a sinking fund to ensure repayment of the maturing notes, bonds and/or similar instruments.
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