The LCMP is a modified community mortgage program which extends financial assistance for the acquisition of the land occupied by the constituents of the local government unit or the land where they will be relocated through the concept of community ownership, with the land primarily mortgaged to SHFC.
Under this program, a qualified Local Government Unit is accredited by SHFC as partner-LGU and as such shall perform all pre take-out functions of SHFC under the CMP. The LGU is subsequently provided with an Omnibus Commitment Line (OCL), not to exceed P50 Million, to accommodate priority social housing projects identified by the partner-LGUs.
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% counterpart contribution of the LGU in the project cost can come in any of the following form:
a.land owned by the partner-LGU to serve as site of the project
b.cash financing to pay-off at least 25% of the lot price (privately owned land)
c.site development and/or construction/ improvement of residential units or Medium Rise Residential Buildings (MRRBs)
Loan Amount: A beneficiary can avail of a maximum loan amounting to P80,000 for properties located in Metro Manila and in highly urbanized areas; P45,000 for undeveloped properties; and P60,000 for developed properties located outside Metro Manila
Monthly Amortization:
P60,000 loan = P411.18 (inclusive of P24.60 MRI)
P80,000 loan = P548.24 (inclusive of P32.80 MRI)
| PURPOSE |
AMOUNT |
| |
METRO MANILA |
OTHER AREAS |
| LOT ACQUISITION |
| Undeveloped |
P 80,000.00 |
P 45,000.00 |
| Developed |
P 80,000.00 |
P 60,000.00 |
| 1. Baguio City |
6. Angeles City |
11. Olongapo City |
| 2. Lucena City |
7. Bacolod City |
12. Iloilo City |
| 3. Cebu City |
8. Mandaue City |
13. Zamboanga City |
| 4. Butuan City |
9. Davao City |
14. Gen. Santos City |
| 5. Iligan City |
10. Cagayan De Oro City |
15. Metro Manila |
Rate: 6% per annum
Maximum Term: 25 years payable in equal monthly payments
Loan Repayment: one (1) month after the release of the loan proceeds
Remittance of montly payments: CA shall collect the share of its members in the monthly amortization and remit the same to SHFC or to its accredited collecting bank (Landbank)
Defaulting members: CA shall find a substitute member who shall assume the obligation of the defaulting member
The partner-LGU shall be entitled to 1% of the loan payable upon completion of the post-audit or 90 days from release of the loan proceeds whichever comes first.
The partner-LGU shall be entitled to an additional 1/6 of actual amount of interest collected from the CA monthly loan amortization as incentive for intensified collection services rendered if CER of the project reaches 90-100% rating.
The partner-LGU shall secure/guaranty the OCL granted by any of the following: assignment of receivables and/or Internal Revenue Allotment (IRA) or a cash deposit to SHFC equivalent to six (6) months amortization of the CA loan representing performance warranty. The guaranty shall be refundable upon issuance of post-audit clearance by SHFC.
The Community Association, on the other hand, will open a saving account assigned to Social Housing Finance Corporation which will have a balance equivalent to three (3) months amortization of the Community Association loan to cover for any unpaid monthly amortization of the member-beneficiary.
Should you have additional questions on the LCMP, you may call our
LCMP Dept. at tel. no. 7506337 local 120 or visit their office at the 5th Floor, BDO Plaza Bldg., 8737 Paseo de Roxas , Salcedo Village, Makati City.
.