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.
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. Accreditation of CMP Mobilizers;
2. Background Investigation of projects;
3. Site Inspection and appraisal of projects;
4. Loan examination; and
5. 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 partner-LGUs.
As partners in this undertaking, the LCMP will serve as a vehicle what will enable the LGUs to maximize their limited housing budget, with SHFC providing an additional maximum funding equivalent to:
a. Seventy-five percent (75%) of the project cost for 1st to 4th class cities; or
b. Ninety percent (90%) of the project cost for 5th and 6th class cities and all municipalities.
The remaining equity of the LGU can come in any of the following form:
a.land owned by the partner-LGU;
b.cash financing to pay-off the lot price; or
DETAILS OF THE CMP LOAN
Types of projects:
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||LOAN AMOUNT||MONTHLY AMORTIZATION|
|Lot Acquisition||P 100,000.00||P 685.30|
|Site Development||P 30,000.00||P 205.59|
|House Construction||P 120,000.00||P 834.60|
|Total Package||P 250,000.00||P 1,725.49|
Interest Rate: 6% per annum
Maximum Term: 25 years
Loan Repayment: one (1) month after the release of the loan proceeds
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 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.
SECURITY FOR THE OCL/CA LOAN
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 partner-LGU, 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.