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MEMORANDUM OF UNDERSTANDING

KNOW ALL MEN BY THESE PRESENTS:

This Memorandum of Understanding is entered into by and between:

(Indicate name of local government unit) a local government unit


existing under Philippines laws, with principal office located at
(complete address of LGU), Philippines, represented in this Act by its
(designation/title), (name of representative), duly authorized for the
purpose, hereinafter referred to as the “LGU”;

-And -

HOME DEVELOPMENT MUTUAL FUND, a government financial


institution governed and existing in accordance with Republic Act
9679, with principal office address at Petron Mega Plaza, 358 Sen. Gil
J. Puyat Avenue, Makati City, represented in this Act by its
(designation/title), (name of representative), duly authorized for the
purpose, hereinafter referred to as “Pag-IBIG Fund”.

WITNESSETH:

WHEREAS, Pag-IBIG Fund is one of the premier financial institutions in the


country which aims to establish, develop, promote and integrate a nationwide mutual
provident savings system suitable for the needs of the employed and other earnings
groups, and to motivate them to be better plan and provide for their housing needs
by becoming qualified members of Pag-IBIG Fund, with mandatory contributory
support of the employers in the spirit of social justice and the pursuit of national
development.

WHEREAS, Republic Act No. 9679 otherwise known as “The Home


Development Mutual Fund Law of 2009” seeks to strengthen the Pag-IBIG Fund’s
capability as an instrument that will effectively achieve the following objectives:

• Improve the quality of life of Filipinos by promoting home


ownership through extension of affordable housing loans;

• Improve the quality of life of its members by developing and


promoting an integrated, nationwide, sound and viable mutual
provident savings system suitable to the needs of the employed
and other earning groups, and

• Stimulate and assist the shelter industry through the extension of


development and institutional financing.

WHEREAS, the LGU envisioned to improving the quality of life of the LGU
employees, teachers and other government employees by promoting home
ownership;

WHEREAS, pursuant to the said vision, the LGU, in partnership with Pag-
IBIG Fund, and through its housing loan program seeks to support the financing
requirements of its target beneficiaries for individual home ownership;
WHEREAS, the LGU will identify a site/land which is suitable for the Housing
Project to complement and address the housing backlog of the
Province/City/Municipality of (indicate name of LGU);

WHEREAS, the LGU and Pag-IBIG Fund have expressed their willingness to
complement each other and jointly help to pursue the government programs and
provide the necessary support and assistance to develop and implement the housing
loan program for LGU employees, teachers and other government employees
working in the Province/City/Municipality;

WHEREAS, the Pag-IBIG Fund extends affordable housing loans to qualified


Pag-IBIG members under its End-User Home Financing Program;

NOW THEREFORE, for and in consideration of the foregoing premises,


herein parties have mutually agreed to undertake the following:

I. UNDERTAKINGS

1. LGU undertakes

a. To provide land that can be developed as its Housing Project for LGU
employees, teachers and other government agency employees (the
beneficiaries) who are capable of paying housing loan amortization and
possessing good moral character;

b. To provide the land development of the Site with basic utilities such as but not
limited to electricity, water, drainage, cable, telephone and road networks in
accordance with the HLURB standards and regulations;

c. To process, facilitate and cause the survey, partition and individualization of


titles of the land;

d. To provide a master developmental plan for the Site and design of the houses
that is affordable to the Homebuyers/beneficiaries;

e. To issue the necessary construction permits/ licenses and clearances for the
project;

f. To support Pag-IBIG Fund in the implementation of its housing projects,


particularly of ensuring the eligibility of its beneficiaries and payment of the
housing loans extended by Pag-IBIG Fund;

g. To develop a set of selection criteria and screen housing applicants-


beneficiaries;

h. To qualify eligible beneficiaries for Pag-IBIG Fund housing loans;

i. To guarantee payment of housing loans extended by Pag-IBIG Fund to the


beneficiaries and provide acceptable assets/securities therefor;

j. To encourage the beneficiaries to be Pag-IBIG Fund members;

k. To promote to the beneficiaries the housing loan programs of Pag-IBIG Fund


and assist the beneficiaries in their application for Pag-IBIG Fund Housing
Loans through orientation of the guidelines and loan requirements of Pag-
IBIG Fund; and

l. To enter into a Collection Servicing Agreement with Pag-IBIG Fund for the
collection of the monthly amortization and payment of the beneficiaries.
2. Pag-IBIG Fund undertakes

a. To extend development financing loan in accordance with its existing


guidelines on Group Housing Loan Program for the land and house
construction of the proposed LGU Housing Project;

b. To extend individual housing loan to qualified beneficiaries, subject to its


prevailing housing loan policies and guidelines;

c. To provide housing loan counseling to identified project beneficiaries;

d. To enter into a Collection Servicing Agreement with the LGU for the collection
of the monthly amortization and payment of loan of the beneficiaries.

e. To assist the LGU in coordinating with other Key Shelter Agencies for the
successful implementation of the housing project.

II. AMENDMENTS

The Memorandum of Understanding may be amended only in writing duly


signed by authorized representative of the parties hereto.

III. EFFECTIVITY AND TERMINATION

This Memorandum of Understanding shall take effect upon the signing hereof
by the parties and shall remain in force until terminated at any time by service of
notice by either party.

IN WITNESS WHEREOF, the parties hereunto set their hands this ___ the
day of __________ 20 ___, in _________________ Philippines.

MUNICIPAL GOVERNMENT HOME DEVELOPMENT MUTUAL FUND


OF ___________________

by: by:

__________________________ __________________________
(Name & title of representative) (Name & title of representative)

Signed in the presence of:

_____________________________ _____________________________
ACKNOWLEDGMENT

Republic of the Philippines )


City of _______________ ) S.S.

BEFORE ME, a Notary Public for and in the City of________________, this
___day of _____________20___, personally appeared Mr/Ms (name of LGU
representative), who has satisfactorily proven to me his/her identity through his/her
I.D. No. (ID name & number) valid until (expiry date), that he/she is the same person
who executed and voluntarily signed the foregoing Memorandum of Understanding
which he/she acknowledged before me as his/her free and voluntary act and deed,
that he/she is acting as the representative/attorney-in-fact of (indicate local
government unit), and that he/she has the authority to sign in such capacity.

This foregoing Memorandum of Understanding consisting of (number of


pages) (_) pages including the page on which this acknowledgment is written, has
been signed on the left margin of each and every page by the parties and their
witnesses.

WITNESS MY HAND AND SEAL.

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ACKNOWLEDGMENT

Republic of the Philippines )


City of _______________ ) S.S.

BEFORE ME, a Notary Public for and in the City of________________, this
___day of _____________20___, personally appeared Mr/Ms (name of the Pag-
IBIG FUND representative), who has satisfactorily proven to me his/her identity
through his/her I.D. No. (ID name & number) valid until (expiry date), that he/she is
the same person who executed and voluntarily signed the foregoing Memorandum of
Understanding which he/she acknowledged before me as his/her free and voluntary
act and deed, that he/she is acting as the representative/attorney-in-fact of Home
Development Mutual Fund, and that he/she has the authority to sign in such
capacity.

This foregoing Memorandum of Understanding consisting of (number of


pages) (_) pages including the page on which this acknowledgment is written, has
been signed on the left margin of each and every page by the parties and their
witnesses.

WITNESS MY HAND AND SEAL.

Doc. No.:
Page No.:
Book No.:
Series of: