The Abot-Kaya Pabahay Fund Development 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.


1. Site upgrading/development and housing construction for eligible CMP projects as compliance to balanced housing requirements under Section 18 of RA 7279.

2. 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.


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 – Interest rate shall be at six percent (6%) per annum.

Loan MaturityThe 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.


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.

Collateral coverage for the loan shall be 80% of appraisal value and total AKPF exposure shall not exceed 80% of project value when completed.


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.

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 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.

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.

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).


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.


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.

Loan Security

A mortgage shall be duly constituted on the property. Owner’s Duplicate Title, free from liens and encumbrances.