TIMELY PARTNERSHIP. Social Housing Finance Corporation (SHFC) and the Bureau of Internal Revenue (BIR) agree to streamline their processes to expedite housing application for SHFC’s Community Mortgage Program (CMP). The agreement was signed to respond to the clamor of homeless Filipinos, especially the women, in time for the celebration of the International Women’s Day and the commemoration of the Urban Development and Housing Act of 1992.
Legally-organized community associations applying for housing loans through Social Housing Finance Corporation (SHFC) can now expect a faster application process following SHFC’s partnership with the Bureau of Internal Revenue (BIR). This government-to- government initiative will also unburden the community associations from paying documentary stamp tax.
A memorandum of agreement between the two government agencies, which is aimed at expediting the release of capital gains tax exemption (CGTE) for transfer of raw lands from landowners to community associations intended for SHFC’s Community Mortgage Program (CMP) projects, was signed today at the BIR office in Quezon City. The event was led by SHFC President Ma. Ana Oliveros, Executive Vice President Eduardo Manicio, BIR Commissioner Caesar Dulay, and Asst. Commissioner Marissa Cabreros.
Under the partnership, BIR commits to expedite the processing and issuance of Certificate of Tax Exemption (CTE), which is part of SHFC’s documentary requirements for CMP. BIR will streamline its processes by reducing and eliminating the unnecessary requirements and the Office of the Commissioner will directly accept applications from SHFC.
SHFC, on the other hand, pledges to observe due diligence in verifying documents that will be sent to BIR to ensure their authenticity and validity. SHFC will also bear the cost for the documentary stamp tax prior to the filing of CTE application.
Manicio said that the usual six months to one year duration of CGTE release is expected to be drastically reduced to five days. This will help SHFC approve more housing applications and provide better services to its beneficiaries, guided by its core values of excellence and servant leadership.
SHFC’s Oliveros said that the partnership is in time for the celebration of the International Women’s Day and the enactment of the Urban Development and Housing Act of 1992, because it will help respond to the clamor of poor families, especially women who dream of having their own homes.
Meanwhile, BIR Commissioner Dulay said that this partnership is one way of cutting down red tape in the bureaucracy. “We want to make it easy for the public to deal with the government. We cut down on the documentary requirements to ensure that there will be no duplication,” Dulay added.
This is SHFC’s third partnership with government agencies in relation to streamlining efforts to expedite its housing process. In 2016, SHFC has entered into an agreement with HLURB to speed-up release of documents for CMP housing loans and with the City Government of Cebu to hasten processing of projects within 30 working days.
SHFC is also exploring partnerships with Mines and Geosciences Bureau, Registry of Deeds, and various local government units to fully implement its streamlined housing application processes for the benefit of underprivileged communities.