Localized Community Mortgage Program Fast Facts

SHFC fast facts about localized community mortgage program

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maximum funding equivalent to:

SHFC
LOCALIZED COMMUNITY
MORTGAGE PROGRAM
WHAT IS THE LCMP?
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.
ELIGIBLE PARTNERS
1. Cities
2. Municipalities
Provinces are encouraged to extend assistance to their
respective cities and municipalities.
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 such as;
1.
2.
3.
4.
5.

Accreditation of CMP Mobilizers;
Background Investigation of projects;
Site Inspection and appraisal of projects;
Loan examination; and
Mortgage Examination.

The LGU is subsequently provided with an Omnibus
Commitment Line (OCL) not to exceed P50 Million, with
one (1) year validity on projects identified by the partnerLGUs.
As partners in this undertaking, the LCMP will serve as a
vehicle what will enable the LGUs to maximize their limited

a.
b.

Seventy-five percent (75%) of the project cost for 1st
to 4th class cities; or
Ninety percent (90%) of the project cost for 5th and
6th class cities and all municipalities.

Remittance
of
monthly
payments:
Community
Associations (CA) shall collect the share of its members in
the monthly amortization and remit the same to SHFC or to
its accredited collecting bank (Land Bank of the Philippines)
Defaulting members: CA shall find a substitute member
who shall assume the obligation of the defaulting member
BENEFITS FROM THE LCMP

The remaining equity of the LGU can come in any of the
following form:
a.
b.
c.

land owned by the partner-LGU;
cash financing to pay-off the lot price; or
site development.

DETAILS OF THE CMP LOAN

The partner-LGU shall be entitled to 1/6 of actual amount of
interest collected from the CA monthly loan amortization as
incentive for collection services rendered if the Collection
Efficiency Rating (CER) of the project reaches 90%-100%
rating, provided further that they have assisted SHFC in its
collection campaign. The 1/6 interest incentive shall however
be released only after the issuance of post-audit clearances
from SHFC.

Types of projects:
SECURITY FOR THE OCL/CA LOAN
1. On-site Projects – for the purpose of acquiring the land
occupied by informal settlers of the partner-LGUs.
2. Off-site projects – for the purpose of acquiring and
developing the land where informal settlers will be
relocated through the concept of community ownership.
Loan Amount: A beneficiary can avail of a maximum loan
amounting to P100,000 for lot acquisition loan; P30,000 for
site development loan; and P120,000 house construction loan;
for a maximum total loan of P250,000.

LOAN PURPOSE
LOT ACQUISITION
SITE DEVELOPMENT
HOUSE CONSTRUCTION
TOTAL PACKAGE

AMOUNT
LOAN
MONTHLY
AMOUNT
AMORTIZATION
P 685.30
P100,000.00
P 205.59
P 30,000.00
P 834.60
P 120,000.00
P 1,725.49
P 250,000.00

Interest Rate: 6% per annum
Maximum Term: 25 years
Loan Repayment: one (1) month after the release of the loan
proceeds

The partner-LGU shall put up a refundable cash deposit to
SHFC equivalent to six (6) months amortization of the CA
loan as a performance warranty to cover the projects enrolled
under the OCL to be paid prior to issuance of LOG.
The CA, on the other hand, with the assistance of the partnerLGU, shall be responsible for the payment of advance
payment equivalent to three (3) months amortization of the
CA loan and one (1) year Mortgage Redemption Insurance
(MRI) to be paid prior to loan release. This payment maybe
applied to the CA loan in case of default.
Should you have additional questions on the LCMP, you may
call our LCMP Dept. at tel. no. (02)750-6337 local 120 or
visit their office at the 5th Floor, BDO Plaza Bldg., 8737
Paseo de Roxas, Salcedo Village, Makati City.

SOCIAL HOUSING FINANCE CORPORATION
A Subsidiary of National Home Mortgage Finance Corporation

WWW.SHFCPH.COM

18/22/2014

SOCIAL HOUSING FINANCECORPORATION

Localized Community Mortgage Program

DOCUMENTARY REQUIREMENTS FOR
ACCREDITATION OF ELIGIBLE PARTNER
CITIES/MUNICIPALITIES
 Filled up Pro-forma Application Form;
 An updated inventory of local housing backlog;
 Municipal/City Council Resolution for the creation of a
Local Housing Board (LHB) with equitable multi sectoral
representation that must have a NGO/PO representative
involved in housing and urban development;
 Municipal/City Council approved organizational
structure and personnel complement of the
unit/department in-charge of socialized housing or other
housing programs;
 Municipal/City Council Resolution authorizing the Local
Chief Executive to make a refundable cash deposit
equivalent to six (6) months amortization of CA loan in
favor of SHFC as performance warranty for the project/s
to be enrolled under the OCL as well as authorizing the
said Local Chief Executive to sign, negotiate and transact
with SHFC and other LCMP partners to fully
operationalize and implement LCMP in the locality;

 An updated Comprehensive Land Use Plan (CLUP) and
Comprehensive Shelter Plan (CSP) approved by LHB;

(10%) for 5th or 6th class cities and municipalities as partnerLGU participation of the project (for privately-owned land).

 Municipal/City Council ratified Annual Investment Plan
(AIP) indicating the prioritized LCMP project/s for the
year and the approved regular budget allocation for
housing; and

The partner-LGU shall likewise include its warranty on the
project stating the following:

 Commission on Audit (COA) Audited
Statements for the past three (3) years.

1. The CA is a bonafide association and its acts are the
voluntary acts of the members for the purpose of
acquiring and keeping the property for themselves; and
that the CA MBs are the rightful occupants of the
property and are aware of their obligations under the
CMP;

Financial

ACCREDITATION AND GRANTING OF OCL TO
PARTNER-LGU
1. SHFC shall evaluate the submitted documents as to
completeness and authenticity.

Warranty issued by the partner-LGU

2. The MBs have not availed of any government housing
program;

2. To ensure the viability of the project, SHFC shall conduct
a background investigation with regard to the occupancy
of the MBs. It shall also validate the LGU appraisal of
the project. Both activities shall be made prior to
accreditation and granting of OCL to the prospective
Partner-LGU.

3. The physical existence of the identified project/s has been
established; The TCT is authentic and is free from liens
and encumbrances; and the registered owner, for
privately owned property, is still living; and

3. SHFC shall present a report regarding the results of the
evaluation for approval by the Credit Committee of
SHFC.

4. Any violation of any warranty shall be a ground for SHFC
to impose any or all of the penalties provided under
Section 11 of the Amended Implementing Guidelines for
the LCMP thereof, without prejudice to resort to other
remedies as provided for by law.

4. Upon accreditation and approval of the OCL, a MOA
shall be executed between SHFC and the partner-LGU.

PROCESSING TIME

 Municipal/City Council Resolution specifying the list of
priority projects together with its respective funding
allocations;

5. SHFC shall subsequently conduct trainings, orientations
and seminars for partner-LGUs on the roles, duties and
responsibilities to the implementation of LCMP

SHFC’s processing time for the release of loan proceeds shall
not exceed thirty (30) calendar days from receipt of the
complete set of LCMP documents from the partner-LGU.

 Project Profile of projects to be enrolled including:
1. Appraisal Report; and
2. Masterlist of Beneficiaries.

RELEASE OF LOAN PROCEEDS

 Municipal/City approved Ordinance indicating the
procedure and criteria for accreditation of CMP
Mobilizers;

After the partner-LGU completes the full LCMP processing
cycle for each project, it shall submit all of the loan
documents required under the new revised CMP guidelines to
SHFC in four (4) sets including a certification from the
Landowner that he/she has received full payment of the
twenty-five percent (25%) for 1st to 4th class or ten percent

SOCIAL HOUSING FINANCE CORPORATION
A Subsidiary of National Home Mortgage Finance Corporation

WWW.SHFCPH.COM

18/22/2014