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COMMUNITY MORTGAGE PROGRAM (CMP)

COMMUNITY MORTGAGE PROGRAM (CMP). Foundation for the Development of the Urban Poor FDUP August 17, 2005. Housing Program that enables organized urban poor community to: Purchase the land Improve site Improve homes Types: On-site Off-site. CMP. CMP (Financing Scheme).

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COMMUNITY MORTGAGE PROGRAM (CMP)

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  1. COMMUNITY MORTGAGE PROGRAM(CMP) Foundation for the Development of the Urban Poor FDUP August 17, 2005

  2. Housing Program that enables organized urban poor community to: Purchase the land Improve site Improve homes Types: On-site Off-site CMP

  3. CMP(Financing Scheme) • Circular 18: November 1995 (secondary mortgage) • Community Association: Borrower • NHMFC: implementing agency (FI) • 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.

  4. CMP(Financing Scheme) • Circular 26: August 2001 (direct mortgage) • Community Association: Borrower • NHMFC: implementing agency (FI) • Facilitator: NGO, LGU, NHA Titles in the name of CA. CA mortgages property to NHMFC. NHMFC releases loans direct to landowner.

  5. CMP(Financing Scheme) • Circular 31: March 2005 (Contract to Sell) • Community Association: Buys land from NHMFC • NHMFC: Buys the land from landowner • Organizer: NGO, LGU, NHA Titles are in the name of NHMFC. Contract to Sell executed between NHMFC and CA.

  6. CMP(Financing Schemes) • Circular 32: August 2005 • 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.

  7. 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

  8. 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

  9. CMP Performance

  10. 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

  11. 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

  12. 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

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