COMMUNITY MORTGAGE PROGRAM(CMP)

Foundation for the Development of the Urban PoorFDUP

August 17, 2005

CMP

Housing Program that enables organized urban poor community to:

Purchase the land Improve site Improve homes

Types: On-site Off-site

CMP(Financing Scheme)

Circular 18: November 1995

(secondary mortgage)o Community Association: Borrowero NHMFC: implementing agency (FI)o Originator: NGO, LGU, NHA

Titles in the name of CA.CA mortgages property to originator. Originator assigns mortgage to NHMFC.NHMFC releases loans direct to landowner.

CMP(Financing Scheme)

Circular 26: August 2001

(direct mortgage)o Community Association: Borrowero NHMFC: implementing agency (FI)o Facilitator: NGO, LGU, NHA

Titles in the name of CA.

CA mortgages property to NHMFC.

NHMFC releases loans direct to landowner.

CMP(Financing Scheme)

Circular 31: March 2005

(Contract to Sell)o Community Association: Buys land from

NHMFCo NHMFC: Buys the land from landownero Organizer: NGO, LGU, NHA

Titles are in the name of NHMFC.Contract to Sell executed between NHMFC and

CA.

CMP(Financing Schemes)

Circular 32: August 2005

o Revert to Circular 26: Direct mortgage to NHMFC

Titles in the name of CA.

CA mortgages property to NHMFC.

NHMFC releases loans direct to landowner.

CMP(Loan Ceiling Per Household)

Rawland Metro Manila & highly urbanized cities:

PhP 60,000 Other Cities: PhP 45,000

Developed Land Metro Manila & highly urbanized cities:

PhP 80,000 Other Cities: PhP 60,000

Developed Land with Home Improvements Metro Manila & highly urbanized cities:

Php 100,000 Other Cities: PhP 85,000

Features

Cost-effective: Average loan per family

Over-all: PhP 32,388 Current Year: PhP 47,610.00

Demonstrates the collaborative effort of POs, NGOs and government

Supports community initiatives to housing Supports self-help and incremental approach

to housing

CMP Performance

Period Projects HH Lot SD HC Total

1989-98 769 93,080 2.50 B 0.047 B 2.55 B

1999-2004

462 61707 2.42 B 0.023 B 2.45 B

2005(up to July)

45 5,536 0.264 B 0.003 B 0.002 0.269 B

TOTAL 1,276 160,323 5.193 B 0.073 B 0.002 5.367 B

CMP Problem

Problem: Under the present system of Program delivery, CMP is managed and implemented as a traditional end-users financing rather than as a major government response to alleviate urban poverty.

Based on this fundamental problem, all attendant policies, systems and procedures of the Program follow the highly centralized, cumbersome and tedious take-out process

Proposed Solutions: Advocacy Agenda (2003) Immediate (April 2003) Program take-over by the HUDCC

Chair (CMP to be implemented as an anti-Poverty Program – need to accelerate processing)

On Appraisals: recognition of non-NHMFC appraisers (HGC, Pag-IBIG and other accredited private appraisers) and the adoption of the DOF IRR on the valuation of properties

Full decentralization Creation of the Policy Committee and representation from stakeholders Suspension of new Program policies that have not undergone consultation

Creation of the Social Housing Finance Corporation through an NHMFC subsidiary. (Aside from CMP, agency will implement other programs/projects, i.e. post proclamations funding of sites and services & home improvements and financing of voluntary relocation projects for communities affected by infrastructure projects, e.g. South& North Rail)

It is proposed that the NHMFC Board approves the proposal by June 2003 Convene Technical Working Group to prepare the study for the creation of

the subsidiary for presentation to the NHMFC Board

Advocacy Agenda: (2005 UP-All)

Operationalization of the SHFC

Appointment of Atty. Quizon as SHFC President

Scrapping of circular 031

Removal of the NHMFC President