The Social Housing Finance Corp. (SHFC) said the enhanced Community Mortgage Program (CMP) will be a transformative program that goes beyond land ownership.
SHFC President and Chief Executive Officer Federico Laxa said in a statement the program will include the provision of an additional credit component—on top of the initial loan for lot acquisition—dedicated to site upgrading. This aims to ensure that CMP communities are no longer considered informal or blighted settlements.
“We will be more transformative and will not stop on land acquisition. We can grant additional loans to develop the communities for site upgrade, the provision of road network, drainage, water and power utilities as well as for home improvement,” Laxa said in a television interview.
Those qualified are communities that are organized and are registered with agencies like the Department of Human Settlements and Urban Development or the Cooperative Development Authority, Laxa said.
Laxa said there are 34 CMP projects approved that can benefit more than 5,000 families especially in the low-income bracket.
Preparations are underway for the rollout of the first batch of CMP sites, with eight initial locations identified in Pasig, Valenzuela, Tanay in Rizal, San Fernando City in Pampanga, Roxas City, Iloilo City, Ilocos Sur, and Ilocos Norte, SHFC said.
The awarding of these sites to qualified beneficiaries is targeted to begin by October this year.
Some of these projects are meant for relocation of families affected by the construction of the South rail system, Laxa added.
Laxa said these homes will be affordable at as low as P500 in monthly amortization.
“Overall, we have completed 10,000 (units), and we can increase that with the CMP program. SHFC has also constructed vertical housing, and most of the deliveries have been made to intended beneficiaries. Formal awarding will take place in the next few months. We are currently reviewing applications, and by October, we will award those that can benefit from the enhanced CMP program,” Laxa said.
Established in 1988, the CMP is a people-led housing finance and community development program that assists legally organized associations of low-income groups to acquire and develop a tract of land under the concept of community ownership.
Laxa said the relaunch an initial batch of 34 on-site projects proposed by SHFC will reinforce the expanded Pambansang Pabahay para sa Pilipino (4PH) Program, which now includes all housing modalities to better address the nation’s housing backlog.
He said SHFC will collaborate with other agencies to ensure that beneficiaries can access a broader range of services offered by the government and other institutions. Among these is a planned partnership with the Technical Education and Skills Development Authority to provide skills training and capacity-building programs that can boost the long-term income prospects of community members.
To further streamline processes, a dedicated Task Force has been established to fast-track the evaluation and approval of CMP projects.
