HIGH DENSITY HOUSING PROGRAM

Overview and Objectives:

The High Density Housing (HDH) project is the Social Housing Finance Corporation’s (SHFC) participation to the informal settler families’ (ISFs) Housing Program being implemented by the incumbent administration with an allocated budget of P50 – billion for five (5) years. The ISFs’ Housing Program aims to ensure safe and flood-resilient permanent housing solutions for the ISFs living in danger areas of the National Capital Region (NCR).

The SHFC, through the HDH project as its flexible, affordable, innovative, and responsive (FAIR) shelter solution to address the housing and shelter needs of the ISFs, will be offering a near se relocation or in-city high density housing facilities of ISFs who have been organized by civil society organizations and adopting the Community Mortgage Program’s (CMP) community-driven approach in setting the people’s plan.

What is the HDH Project?

HDH project refers to a slum redevelopment strategy wherein a significant number of ISFs are accommodated in multi-storey buildings. This may be implemented either by an in-city or near site relocation or a land sharing arrangement.

Who are the SHFC partners implementing the HDH project?

• National Government Agencies and Local Government Units
• Community Associations
• Civil Society Organizations
• Private Sector

Who are eligible to become beneficiaries of the HDH project?

The beneficiaries of this financial assistance program are community associations of informal settlers who are living in danger areas and along the waterways in highly urbanized cities of the NCR.

What are the responsibilities of the Community Association (CAs)?

• Identification of ISF beneficiaries of the project
• Community profiling survey
• Mobilization of community resources that will respond to project needs
• Loan documentation
• Project planning and project management
• Estate management that will include collections of payments, maintenance of building and enforcement of community rules and regulations
  • Payment of taxes and permits relative to project implementation and management
  • Organizational maintenance

What are the loan purposes?

+ Loan and building construction

Loans for land may involve land acquisition and/or site development. However, site development may be financed only if the loan entitlement can cover the loan or through a two-phased line availment.

Building construction only

The CA may avail of loan for a building construction only if the land has either been donated, lease to, or subject to a usufruct arrangement with the CA. the lease contract or usufruct arrangement shall be for a period of at least 30 years.

How much is the loan entitlement?

The maximum amount of a loan a community member can avail is P450,000.00. The amount may be increased based on the loan ceiling for social housing as approved by the Housing and Urban Development Coordinating Council (HUDCC).

Interest rate and loan term:

The interest rate is 4.5% per annum for a maximum period of 30 years.

Repayment Scheme:

Modes of Amortization:

• 30 years – graduated amortization in the first 10 years (10%  annual increase); fixed amortization for the 11 h year-onwards.
• A grace period of one (1) month to pay the initial amount of amortization, reckoned from the time of occupancy of the building shall be granted to the CA. Option to avail of Rent-to-own Scheme:
• The CA, or any of its members duly registered as a beneficiary hereof, may, at the onset avail of the rent-to-own scheme entitling the availee/s to the right-of-possession and enjoyment over the building or unit.
• The rent-to-own scheme shall last up to five (5) years only, after which it shall be the legal obligation of the availee/s either to enter into a contract to sell with SHFC or voluntarily vacate the premises without the need of any demand to do so.

Other important information:

• The CMP policy guidelines for land acquisition shall be adopted with the subdivision plan and the building permits as additional requirements for building construction loans.
• Building standards shall be complied with.
• Contractor or developer shall be required to submit a Performance Bond as a security for the completion of the construction work.
• A retention fee equivalent to 10 % of the contract price shall be imposed and shall only be released after a Certificate of Completion and Acceptance from the CA has been received and validated by the SHFC. The validation process shall be within  maximum period of 15 calendar days after receipt of the Certificate of Completion and Acceptance.
• SHFC shall have the option to acquire/purchase the land and retain ownership of the same while allowing qualified families to acquire and pay only for the cost of the building.
• SHFC  may  also  opt  to  co-own  the  land,  including  the  building,  and implement a public rental scheme to be adopted in projects wherein a significant number of families may not be able to afford the monthly amortization.