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Abot - Kaya Pabahay Fund Fast Facts
SHFC facts about abot - kaya pabahay fund
Your Browser Doesn't Support Canvas. Showing the Text Content of the PDF Instead: ABOT-KAYA PABAHAY FUND
DEVELOPMENT LOAN PROGRAM
OBJECTIVE
The Abot-Kaya Pabahay Fund Developmental Loan Program
(AKPF - DLP) aims to provide low-income families in key
urban
areas
affordable
houses
by
financing
site
development/improvements and house/building construction
in CMP and other socialized housing projects.
LOAN PURPOSE
1.
2.
Site
upgrading/development
and
housing
construction for eligible CMP projects as compliance
to balanced housing requirements under Section 18
of RA 7279.
LGU sponsored housing projects where end-user
financing shall be provided either through CMP/LCMP
or the High Density Housing (HDH) Program.
3.
Site development and/or construction of high density
housing units for the HDH Program.
4.
Small scale inner city housing projects providing
house and lot packages for socialized housing
borrowers with assured end-user financing either
through CMP/LCMP or the HDH program. Banks’
ROPOA, foreclosed/idle properties of pension funds
like SSS, GSIS as well as those of other institutions
provided there is end-user financing through the
afore-cited facilities.
LOAN AMOUNT
The maximum loanable amounts shall be as follows: (a) P15
million for projects covered by CMP and LCMP; and (b) P75
million for projects under the HDH Program.
INTEREST RATE/LOAN MATURITY
Interest Rate - Interest rate shall be at six percent (6%)
per annum.
Revised March 2014
Loan Maturity -The loan shall have a maximum term of 36
months after each drawdown but shall have earlier maturity
based on project feasibility and the availability of the take-out
window.
be in accordance with the project requirement as
reflected in the approved work schedule. Prior to
the initial loan release, the developer must infuse at
least 5% of
the total cost in terms of horizontal
development.
COLLATERAL APPRAISAL
If the landowner and the borrower are two different
entities, initial development equivalent to 5% of the
total project cost is required prior to initial loan
release.
Appraisal of the property shall be conducted either by SHFC
or private appraisal companies.
SHFC shall appraise the property using the principles,
practices and approaches applied in the valuation of CMP
projects. In the event that SHFC’s appraisal value is lower
than the selling price, private appraisers may also be
engaged provided they are accredited by the Banko Sentral
ng Pilipinas (BSP).
In the event that a landowner initially tenders a selling price
previously certified by an appraiser duly accredited by Banko
Sentral ng Pilipinas (BSP), then SHFC shall validate the said
amount.
In case of disagreement on what the Current Fair Market
Value (CFMV) of the property ought to be, then such matter
shall be fully disclosed to, and decided by, the Board of
Directors.
2.
Subsequent releases shall be based on the total
collateral value consisting of the value of the land
and improvements made thereon net of the
previous drawdowns multiplied by eighty percent
(80%)
3.
Apart from meeting the minimum collateral
coverage of 125%, the project should also meet the
required accomplishment for both land development
and house construction (as may be applicable).
LOAN REPAYMENT
Collateral coverage for the loan shall be 80% of appraisal
value and total AKPF exposure shall not exceed 80% of
project value when completed.
Payment to principal shall be made quarterly with the first
payment due on or before the end of the eighteenth (18th)
month from date of initial loan release which shall be
covered by post-dated checks to be issued in advance by
the developer, or upon take-out by the end-user financing
window, whichever comes first.
LOAN AVAILMENT
PENALTY RATE/LOAN SECURITY
Upon approval of the loan, the developer should avail of the
loan within one (1) year. Failure to do so would mean that
the facility is cancelled.
Penalty Rate
Penalty rate is 1/20 of 1% per day (18.0%per annum) of
delay of the defaulted amount which covers principal and
interest accrued
The loan shall be released on staggered basis depending on
project requirement and collateral coverage. The other
conditions for loan releases are as follows:
1. The initial release shall not be more than fifty
percent
(50%) of the appraised value of the
collateral and shall
Loan Security
A mortgage shall be duly constituted on the property.
Owner’s Duplicate Title, free from liens and encumbrances.
3.
BORROWER PREQUALIFICATION
1.
Open
for
institutions/
corporations,
single
proprietorship, partnership and LGUs with qualified
partner developers of socialized housing projects.
The borrower or his partner-developer must have a
proven record of success in undertaking development
of real estate projects and must have track records
of at least three (3) years.
2.
Validity of prequalification is one (1) year.
3.
Project subject of financing must be eligible under
the CMP or the HDH Program administered by SHFC.
4.
A borrower who will put up at least 5% of the project
cost as equity counterpart/contribution shall be
preferred over other loan applicants who do not offer
a greater amount.
PROJECT REQUIREMENTS
Site Suitability
The project must meet SHFC minimum requirements for site
suitability criteria.
Project Size
Project size beyond 10 has. shall be subject to the reevaluation of proponent’s resources as to (i) equipment (ii)
manpower (iii) finance
Title Subject of Collateral
1.
2.
The property/ies must be registered under Torrens
Title System and should be free from litigations,
encumbrances, liens and adverse claims. In case of
properties subject of CMP, the obligation shall be
annotated as additional encumbrances.
If the property is encumbered, the proponent must
ensure cancellation of such liability before execution
of the loan agreements. The proponent has sixty
(60) days to facilitate the cancellation.
The proponent and the landowner shall each assign a
project controller who will certify to the validity of
the project accomplishment report.
Project Implementation
Completion
Schedule
and
Delays
SOCIAL HOUSING FINANCE CORPORATION
BDO Plaza, 8737 Paseo De Roxas, Makati City
www.shfcph.com
in
If for any reason the proponent fails to implement the project
per schedule after the initial loan drawdown, except for
fortuitous events and reasons of force majeur, the proponent
shall pay a commitment charge of 0.5% per month of the
succeeding drawdown after 60 days of project stalemate on
non-accomplishment based on targeted completion.
The
charge shall be deducted from the succeeding loan releases.
In case the proponent fails to avail the succeeding drawdown
within six (6) months, all unreleased loan shall be
automatically cancelled while the released loan(s) shall be
deemed due and demandable.
Contractor’s All Risk Insurance
Regardless of project location, vertical works should be
insured against allied perils/calamities.
The insurance
coverage shall be enforced until such time the project is
turned-over to end-user.
10% Retention Fee
A retention fee equivalent to ten percent (10%) of project
cost shall be imposed to answer for possible project
deficiency/defects and shall be released only after correction
of such defects and a certificate of completion and
acceptance has been issued by the CA beneficiary. The SHFC
shall validate said correction within 15 calendar days from
receipt of Certificate of Completion and Acceptance.
TRANSITORY PROVISIONS
The AKPF-DLP shall be utilized for the purpose of Land
Acquisition under HDH Program and other socialized housing
programs similar thereto, with its commencement reckoned
from the time of the issuance of the legal opinion by the
Office of the Government Corporate Counsel (OGCC)
upholding the validity and lawfulness of such kind of
utilization.
For inquiries please call:
Trust Administration
Department
(02) 750-6337/750-6346
locals 211, 212 & 213
