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collection of Philippine laws, statutes and codes
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This page features the full text of
Republic Act No. 6846
"Abot-Kaya
Pabahay Fund", otherwise known as the "Social Housing Support
Fund
Act."
AN
ACT CREATING THE ABOT-KAYA PABAHAY FUND, OTHERWISE KNOWN AS THE SOCIAL
HOUSING SUPPORT FUND ACT, AND FOR OTHER PURPOSES.
REPUBLIC
ACT NO. 6846
AN
ACT CREATING THE ABOT-KAYA PABAHAY FUND, OTHERWISE KNOWN AS THE SOCIAL
HOUSING SUPPORT FUND ACT, AND FOR OTHER PURPOSES.
Section
1. Title. — This Act shall be
known as the "Abot-Kaya Pabahay Fund", otherwise known as the
"Social Housing Support Fund Act."chanrobles virtuallaw libraryred
Sec.
2. Policy. — It is hereby declared
as the policy of the Government to promote the national shelter program
and to implement a continuing program of social housing that shall make
available to low-income families affordable houses and/or lots
equitably
distributed in the fourteen (14) regions of the country by establishing
a financial support system that shall encourage the active
participation
of the private sector.
Sec.
3. Fund System. — To carry out
the purpose of this Act, there is hereby created the Abot-Kaya Pabahay
Fund, hereafter referred to as the Fund, in the amount of Two billion
and
five hundred million pesos (P2,500,000,000.00) to be constituted over a
period of five (5) years through a continuing yearly appropriation of
Five
hundred million pesos (P500,000,000.00) from the National Government.
This
Fund shall be used exclusively for the objectives of enhancing
affordability
of low-cost housing by low-income families, providing developmental
financing
for low-cost housing projects, and eliminating risks for the funding
agencies
involved in housing, namely: Social Security System (SSS), the
Government
Service Insurance System (GSIS) and the Home Development Mutual Fund
(HDMF).
The
Fund shall be devoted to provide amortization support, expedite the
development
of land into suitable sites for social housing by providing
developmental
financing to developers of low-cost housing projects, and establish a
strong
guarantee system to ensure viable cash flow for the funding agencies
involved
in housing.chanrobles virtuallaw libraryred
To
augment the Fund, the President shall avail of portions of grants,
assistance,
programs and concessional loans from foreign governments with
maturities
of twenty-five (25) to thirty (30) years or more and carrying soft
interest
to generate the peso equivalent of Five hundred million pesos
(P500,000,000.00)
per year for five (5) years.
(a) Amortization
Support. — A borrower shall be eligible to apply for administration
support
to the National Home Mortgage and Finance Corporation pursuant to
Section
4(a) of this Act: Provided, That he has the following qualifications:chanroblesvirtualawlibrary(1) Has
a gross family income per month as hereinafter provided;chanrobles virtuallaw libraryred(2) Has
not been a recidivist or a habitual delinquent as to offenses involving
moral turpitude; and
(3) Is
not a homeowner and has not been the recipient of any housing loan or
housing
unit from any agency, financial institution or office for the last five
(5) years.
Level
A. Eligible borrowers with a
gross family income of not exceeding Four thousand pesos (P4,000.00)
per
month, who apply for loans of not exceeding Eighty thousand pesos
(P80,000.00),
shall be entitled to the following monthly amortization support for the
first five (5) years of the loan amortization period:
Amortization
Period Amortization Support
months
1 to 12 35% of monthly amortizationchanrobles virtuallaw libraryred
months
13 to 24 30% of monthly amortization
months
25 to 36 25% of monthly amortization
months
37 to 48 20% of monthly amortizationchanrobles virtuallaw libraryred
months
49 to 60 14% of monthly amortization
Level
B.Eligible borrowers with a gross
family income of not exceeding Five thousand pesos (P5,000.00) per
month,
who apply for loans of over Eighty thousand pesos (P80,000.00) but not
exceeding One Hundred thousand pesos (P100,000.00), shall be entitled
to
the following monthly amortization support for the first five (5) years
of the loan amortization period:
Amortization
Period Amortization Support chanrobles virtuallaw libraryred
months
1 to 24 25% of monthly amortization
months
25 to 36 20% of monthly amortization
months
37 to 48 14% of monthly amortizationchanrobles virtuallaw libraryred
months
49 to 60 7%
of monthly amortization
The
aforesaid amortization support shall apply only to loans granted from
the
approval of this Act to five (5) years thereafter on a
first-come-first-served
basis to eligible borrowers as herein defined.
Loans
under this Fund shall not be subject to such charges, fees or premiums
except minimum processing fees to be charged by developers, mortgage
redemption
insurance and fire insurance premiums. If during the amortization
period
the property acquired or built on the proceeds of the loans is lost or
seriously damaged due to force majeure for which the borrower is not in
any way responsible, the administering agencies are authorized to
liberalize
the terms of repayment or waive the same depending on the equities of
the
situation.chanrobles virtuallaw libraryred
Amortization
support for Level A borrowers shall not be less than sixty percent
(60%)
of all available funds allotted for the purpose.
At
least forty percent (40%) of the yearly appropriation for the Fund
shall
be for amortization support to Level A and Level B borrowers.
(b) Development
Financing. — There is hereby established a developmental financing
system
whereby proponents of low-cost housing projects with a selling cost of
not exceeding Sixty thousand pesos (P60,000.00) per house and/or lot
package,
which shall be available exclusively for Level A eligible borrowers,
shall
be entitled to a developmental financing loan of not exceeding eighty
percent
(80%) of the entire project cost.
At
least fifteen percent (15) and not more than twenty percent (20%) of
the
yearly appropriation for the Fund shall be for developmental financing:
Provided, That the unused funds for developmental financing shall be
utilized
for Level A amortization support.chanrobles virtuallaw libraryred
(c) Cash
flow Guarantee. — There is hereby established a cash flow guarantee
system
such that loans of not exceeding One hundred fifty thousand pesos
(P150,000.00)
with an interest rate of not exceeding twelve percent (12%) per annum
originated
by the funding agencies or their accredited financial institutions
shall
be assigned to the Fund immediately after origination for which the
Fund
shall issue promissory notes of similar cash flows as the assigned
loans
guaranteed by the Republic of the Philippines.
Forty
percent (40%) of the yearly appropriation for the Fund shall be for the
cash flow guarantee.
Sec.
4. Corporate Powers. — (a) National
Home Mortgage and Finance Corporation (NHMFC). In addition to its
powers
and functions vested under Presidential Decree No. 1267, the National
Home
Mortgage and Finance Corporation, hereinafter referred to as the NHMFC,
shall establish the amortization support and developmental financing
systems
in accordance with subsections (a) and (b) of Section 3 hereof,
exercise
administration and control over the fund allotted for amortization
support
and developmental financing, and act as trustee thereof.
(b) Home
Insurance and Guaranty Corporation (HIGC). — In addition to its powers
and duties vested under Executive Order No. 535, as amended, the Home
Insurance
and Guaranty Corporation, hereinafter referred to as the HIGC, shall
establish
the cash flow guarantee system in accordance with subsection (c) of
Section
3 hereof, exercise administration and control over the fund allotted
for
cash flow guarantee, and act as trustee thereof.chanrobles virtuallaw libraryred
(c) Powers
and functions of administering agencies. — The NHMFC and the HIGC as
administering
agencies and trustees of the Fund shall exercise the following powers
and
functions:chanroblesvirtualawlibrary
(1) To
make policies and guidelines as well as adopt, amend and rescind such
rules
and regulations as may be necessary to carry out the provisions and
purposes
of this Act;(2) To
submit annually to the President of the Philippines and to the Congress
of the Philippines, not later than March 15, and make available to the
general public a detailed report covering its investments, operations
and
other activities in the implementation of this Act, including
information
and recommendation for the development and improvement of the Fund.
(3) To
submit annually to Congress for approval through the Department of
Budget
and Management its budget of expenditures to carry out of the purposes
of this Act;chanrobles virtuallaw libraryred
(4) To
acquire, utilize or dispose of, in any manner recognized by law, real
or
personal properties to carry out the purpose of this Act.
(5) To
set up its own accounting and computer system; to conduct continuing
actuarial
and statistical studies and valuations to determine the financial
viability
of the Fund and its projects; to acquire reports, compilation and
analysis
of statistical and economic data, as well as make such other studies
and
surveys as may be needed for the proper administration and development
of this Fund.
(6) To
have the power of succession; to sue and be sued; to adopt and use a
corporate
seal;
(7) To
enter into and carry out contracts of every kind and description with
any
person, firm, association or corporation, domestic or foreign, to carry
out the purpose of this Act;chanrobles virtuallaw libraryred
(8) To
invest, own or otherwise participate in or establish and maintain a
subsidiary
or subsidiaries in relation to the purpose of the Fund under this Act;
and
(9) To
exercise such powers and perform such acts as may be necessary, useful,
incidental or auxiliary to carry out the provisions of this Act.
Sec.
5. Powers and Duties. — The management
of the NHMFC and the HIGC shall have the following powers and duties
relative
to the Fund:chanroblesvirtualawlibrary
(a) To
formulate policies, rules and regulations to carry out effectively the
purpose of the Fund under this Act and to publish such policies, rules
and regulations in Filipino and English at least once in a newspaper of
general circulation.(b) To
direct the operations and administration of the Fund;chanrobles virtuallaw libraryred
(c) To
authorize expenditures of the Fund in the interest of effective
administration
and operations; to adopt, from time to time, the budgets for said
purposes;
(d) To
approve appointments of personnel; and
(e) To
exercise such other duties as may be necessary to carry out the
corporate
powers under Section 4 hereof and accomplish the purposes for which the
Fund is established.
Sec.
6. Investments. — Without prejudice
to its primary purpose, all moneys of the Fund not needed to meet
current
amortizations support, developmental financing, cash flow guarantees,
administrative
and other operational requirements shall be invested in government
securities
and/or deposited in government banks to ensure its liquidity, safety
and
growth.chanrobles virtuallaw libraryred
Sec.
7. Administrative Cost. — The
Fund shall bear the costs of its administration and development in such
amounts and/or limits as the administering agencies shall deem
appropriate,
but not exceeding one percent (1%) of the Fund assets of the previous
year.
Expenses for organization and initial operations shall be provided by
the
administering agencies as advances, subject to reimbursement.
All
appropriations under this Act shall be released quarterly in four (4)
equal
installments to the administering agencies in accordance with the
allotment
of the Fund under Section 3 hereof.
Sec.
8. Appropriations. — The amount
needed to implement this Act shall be included in the General
Appropriations
Bill next submitted following its approval.
Sec.
9. Audit. — The Chairman of the
Commission on Audit shall act as the auditor of the Fund and,
accordingly,
is empowered to appoint a representative and other subordinate
personnel
to perform and report on such audit duties, responsible to and
removable
only by the chairman of the Commission on Audit.chanrobles virtuallaw libraryred
Sec.
10. Reports. — In addition to
the annual report provided for under paragraph 2, subsection (c), of
Section
4 hereof, the administering agencies are hereby mandated to submit
quarterly
detailed reports of its operations and performance to the Congress of
the
Philippines, including a list of beneficiaries.
Sec.
11. Fund Supervision. — Particular
aspects of the Fund's administration may be subject to supervision,
visitation
or verification by appropriate agencies of the Government as may be
designated
and authorized by the President of the Philippines or the Congress of
the
Philippines.
Sec.
12. Repealing Clause. — Any provision
of law, decree, executive order, rule and regulation in conflict or
inconsistent
with the provisions and/or purposes of this Act is accordingly
repealed,
amended or modified.
Sec.
13. Effectivity. — This Act shall
take effect upon its approval and publication in at least two (2)
national
newspapers of general circulation.chanrobles virtuallaw libraryred
Approved:
January 24, 1990
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