NATIONAL HOUSING AUTHORITY “Bar Ai Building a Culture of Quality FIuPINo} NHA-Memorandum Circular No. 2021-22 SUBJECT OMNIBUS POLICY ON SALES AND DISPOSITION FOR RESIDENTIAL LOTS/LOTS WITH HOUSING — UNITS/ CONDOMINIUM UNITS, 1. BACKGROUND AND PURPOSE This Memorandum Circular is being issued to prescribe uniform guidelines to govem the sales, disposition and to secure tenure arrangement covering all residential units of the Authority. This Omnibus Policy on Sales and Disposition is @ consolidation and integration of all the existing policies contained in previously issued NHA Memorandum Circulars. The Policy shall standardize and simplify the processes and procedures and facilitate the implementation of disposition by the Operating Units. ll COVERAGE 2.1 This Circular shall cover the following projects: 2.1.1 Regular Projects 21.3 Disposition of residential lots/units in NHA-Administered projects under the following housing programs: Resettlement, Settlements Upgrading Sites & Services Completed Housing and Vertical Housing Development (Low- Rise Building (LRB), Medium Rise Housing (MRH) v. Joint Venture Projects Calamity Projects with Partial Cost Recoverability where the housing units shall be provided free and where land and iand development shall be cost recoverable. Community Based Initiative Approach (CBIA) Projects Disposition of all developed lots and completed housing units through the Community Based Initiative Approach (CBIA) scheme to Informal Settler Families (ISFs) occupying danger areas and infrastructure sites, and to members of the Armed Forces of the Philippines (AFP), Philippine National Police (PNP), Bureau of Jail Management and Penology (BJMP), Bureau of Fire Protection (BFP) and Bureau of Corrections (BuCor), Philippine Coast Guard (PCG) and other low salaried govermment/non-government personnel.‘Onmtus Paley on Stes and Disposition Page 20°24 ‘Also covered are beneficiaries of uniformed personnel Killed in Action (KIA) and Killed in Police Operations (KIPO) and those who are Wounded in Action (WIA) and Wounded in Police Operations (WIPO) ‘who availed of the Old AFP/PNP Projects under Memorandum Circukar No. 2733 dated June 22, 2015, and those covered by the Comprehensive Social Benefits Program (CSBP) as guided by NHA Memorandum Circular No, 2020-049 dated September 14, 2020. 2.2 Exclusion Projects covered by the calamity program under the full grant policy by virtue of Executive Pronouncement and for tum-over and disposition by the Provincial/Local Government Units. UL DEFINITION OF TERMS 3.1 Government Employees Housing Program (GEHP) — the program is intended to provide decent and affordable housing to uniformed personnel | including members of the Armed Forces of the Philippines (AFP), Philippine National Police (PNP), Bureau of Jail Management and Penology (BUMP), Bureau of Fire Protection (BFP), Bureau of Corrections (BuCor), Philippine Coast Guard (PCG) and other Govemment Employees, 3.2 Housing Assistance for Calamity Victims- The program is intended to respond to the housing need of low and marginal-income group and/or informal settler families for permanent shelter affected by calamities such as typhoons, landslides, earthquake and fire for relocation to safe areas. 3.3. Informal Settler Family - refers to the household living on a lot whether public or private without the consent of the property owner; those without legal claim over the property they are occupying or those living in danger areas such as esteros, railway tracks, garbage dump, river banks, shorelines and waterways. 3.4 Joint Venture - A strategy based on resource/expertise-sharing scheme with private landowners, private developers, local government units, civil society organizations (CSOs) with equity contribution taking the form of land or funds for development 3.5 Low-Income Family - a family whose income is below the poverty threshold as defined by the National Economic and Development Authority (NEDA). 3.6 LowRise Housing = an in-city housing program that entails the construction of up to five (6) storey walk up buildings 3.7. Professional squatters - refer to individuals or groups who occupy lands without the express consent of the landowner and who have sufficient income for legitimate housing. The term shall also apply to persons whoCOnmbus Paty on Sales ad Dispostion Page 30°21 have previously been awarded home lots or housing units by the Government but who sold, leased or transferred the same to settle illegally in the same place or in another urban area, and non-bona fide occupants and intruders of lands reserved for socialized housing. The term shall not apply to individuals or groups who simply rent land and housing from professional squatters or squatting syndicates. 3.8 Regional Resettlement Program — this is the program that involves the implementation of local/regional resettlement projects as joint National Govemment-Local Government undertakings. It addresses resettlement requirements of Local Government Units (LGUs) outside Metro Manila involving families living along danger areas, those affected by goverment infrastructure projects, indigenous people and former rebels. 3.9. Republic Act No. 7279 ~ An Act to provide for a Comprehensive and Continuing Urban development and Housing Program, establish the mechanism for its implementation and for other purposes, otherwise known as “Urban Development and Housing Act of 1992”. 3.10 Resettlement Areas ~ refers to sites identified by the appropriate national agency or by the local government unit with respect to areas within its jurisdiction, which shall be used for the relocation of the underprivileged and homeless citizens and other qualified households. 3.11 Resettlement Program- the program which addresses the requirements of families affected by government infrastructure projects and those living along danger areas. It entails the provision of housing units, community facilities, socio-economic and other community support programs. 3.12 Settlements Upgrading Program- the program which is intended to address security of tenure and infrastructure requirements of informal settlements on govemment owned lands proclaimed or designated as socialized housing sites. 3.13 Sites and Services Development- entails the acquisition and development of rawiands into service homelots which shall serve as an altemative informal settlement as well as catchment areas for in-migration and population growth. This approach shall be in urban centers whose population growth and overspill is anticipated and where beneficiaries intend to acquire housing on increment basis. 3.14 Socialized Housing- refers to housing programs and projects covering houses and lots or homelots only, or residential condominium units undertaken by the government or the private sector for the underprivileged and homeless citizens which shall include sites and services development, Jong term financing, liberalized terms on interest payments and such other benefits in accordance with the provisions of RA 7279. BP eceenen copy echton 7‘Omnibus Poiey on Stes and Disposition "Page $021 3.15 Solo Parent ~ any individual who falls under any of the categories mentioned in Republic Act No. 8972 dated November 7, 2000: Solo Parents Welfare Act of 2000, An Act providing for Benefits and Privileges to Solo Parent and their Children, Appropriating Funds Therefor and for other Purposes (Solo Parents’ Welfare Act of 20 dated November 7, 2000). 3.16 Squatting syndicates — refer to groups of persons engaged in the business of squatter housing for profit or gain as determined by the Department of Human Settlements and Urban Development (DHSUD). 3.17 Subsidy — economic benefit or financial aid provided by the government. 3.18 Successor-in-Interest ~a successor to anothers interest in property 3.19 Under Privileged and Homeless Citizens — refer to the beneficiaries of Republic Act No. 7279 and to individuals or families residing in the urban and urbanizable areas whose income or combined household income falls within the poverty threshold as defined by the National Economic and Development Authority (NEDA) and who do not own housing facilities. This shall include those who live in makeshift dwelling units and do not enjoy security of tenure. 3.20 Usufruct — gives a right to enjoy the property of another with the obligation of preserving its form and substance, unless the title constituting it or the law otherwise provides. Purchase of properties covered by a usufructuary agreement covers the unit only and not the land, in cases where ownership is retained by the Authority during the period of usufructuary. IV. ELIGIBILITY CRITERIA 4.4 Pursuant to Section 16 of Republic Act No. 7279, to qualify for award, the following General Eligibility Criteria shall be adopted: 4.1.1. Must be a Filipino citizen, of legal age, married or single but head of the family, or solo parent, 4.1.2 Must be an underprivileged and homeless citizen as defined in Section 3 of RA 7279; 4.1.3. Must not own any real property whether in urban or rural areas; 4.1.4 Must not be a professional squatter or a member of a squatting syndicate as defined under Section 3 of the Urban Development and Housing Act of 1992 or Republic Act No. 7279 4.2 in addition to the above general criteria set by section 16 of RA 7279, the following must be considered: 4.2.1 For Informal Settler Families (ISFs) |. Households living on a lot whether public or private without the ‘consent of the property owner or those without legal claim over the # CERTIFIED CoPyY U6 ee Tent aia‘Omnbus Policy on Sees and Diposiion Page $021 property they are occupying or those living in danger areas such as esteros, railway tracks, garbage dump, riverbanks, shorelines and waterways. li, Included in the official Master List of Affected Families/Households duly certified by the concemed LGU as endorsed by the Local Inter-Agency Committee (LIAC) and approved by the NHA and in the Masterlist of DSWD’s National Household Targeting System for Poverty Reduction (NHTS-PR) 4.2.2. For Low-Salaried Goverment/Non-Government Personnel: Included in the approved Masterlist of qualified beneficiaries for housing assistance as endorsed by the concemed Housing Board or by the Local Government Unit (LGU). 42.3. Qualified beneficiary must not have been a beneficiary/awardee of a residential lohousing unit or of any housing assistance program of ‘the government. (Le. RAP-LGU, CBTAP) V. GENERAL GUIDELINES/POLICIES 5.1 MODE OF DISPOSITION Residential lots/lots with housing units, condominium units shall be sold under the following modes of disposition: 5.1.1 Outright Cash Sale a. The total selling price of the unit shall be paid through a one-time cash payment within thirty (30) days from receipt of the Individual Notice of Award (INA). b. A Deed of Sale (DS) shall be executed. 5.1.2 Staggered Cash Sale a. The total selling price shall be payable in twelve (12) equal ‘monthly installments at zero percent (0%) interest. A one-half percent (0.5%) delinquency charge per month shall be collected for non-payment of the monthly installment. b. The first monthly payment and execution of Sales Contract shall be made within thirty (80) days from receipt of the Individual Notice of Award (INA). ©. Succeeding monthly payment shall be made on or before the fifth (5°) day of the month without demand . aa copy : ”513 514 ‘Ontos Paley on Sales and Cipastion Page 8021 4. Anytime within the one (1) year period, a Deed of Sale (DS) shall be executed in favor of the awardee upon full payment e. If the awardee is unable to complete the required payment within the one (1) year period, the Sales Contract shall be converted into Conditional Contract to Sell (CCS), upon notice to the concemed awardee All payments made shall be applied to the amortization under ‘CCS based on the effectivity date of the originally executed Sales Contract, wherein the resulting amortization is inclusive of the amortization and penalty interests depending on the actual amount paid and date of payment For Outright/Staggered Cash or upon full settlement of the account, the Accounting Data shall be prepared by the District Office-Finance Unit and certifies as to Payment, while the Estate Management Unit certifies as to Award and prepares the relevant documents pertaining to sale. A Certificate of Full Payment shall also be issued by the District Office upon the request of the awardee. Sale through End-user Financing The awardee must be qualified to purchase the lot/housing unit/lot with housing unit/condominium unit under the terms and conditions of the end-user financing program, i.e. Pag-lbig Fund or other financing institution. Installment Sale through In-House Financing a. Housing Package & Interest Rate Per Annum per HUDCC Resolution i. Price Ceiling for Socialized Subdivisions Projects as prescribed in HUDGC Resolution No.1 Series of 2018 (Annex “A”) PhP 480,000.00 = 22 sq. m. with loft of at least 50% of the base structure, or 24 sq.m.; PhP 530,000.00 = 24 sq. m. with loft of at least 50% of the base structure, or 28 sq.m.; PhP 580,000.00 = 24 sq. m. with loft of at least 50% of the base structure, or 32 sq.m. ii, Price Ceiling for Socialized Condominium Projects as prescribed in HUDCC Resolution No. 2 Series of 2018 (Annex "B”)‘Omnis Paty on Sales and Dipostion Page 7a 24 © For the National Capital Region, San Jose Del Monte City in Bulacan Province, Cainta and Antipolo City in Rizal Province; San Pedro City in Laguna; Carmona and the cities of Imus and Bacoor in Cavite Province: a) PhP 700,000.00 = 22 sq.m. and b) PhP 750,000.00 = 24 sqm * For other areas: a) PhP 600,000.00 = 22 sqm; and b) PhP 650,000.00 = 24 sq.m ‘The above selling prices shall be in effect until a new pricing policy is approved by the NHA Board. . Pricing, as stated in Memorandum Circular No.2016-089 dated October 19, 2016. (Annex “C”), where disposition of all remaining unsold residential lots, housing units of existing housing project, shall be based at the latest approved selling prices. Retention of the latest approved selling prices for all remaining unsold residential lots shall remain in effect until the Revised Pricing Policy is approved by the NHA Board of Directors. Said pricing, however, should be updated every year or earlier as deemed necessary by the Regions. . The amortization interest for accounts/loan covering NHA horizontal and vertical housing projects is reduced to Three Percent (3%) per Annum per MC No. 2018-022 dated 25 July 2018 (Annex “D") |. The purchase price shall be payable over a maximum period of thirly (30) years but subject to age limit of 70 years, The repayment period can be shortened at the option of the awardee, In no case shall the repayment period exceed the difference between the buyer's age at the time of application and age Seventy (70). For buyers who are over 65 years old, a maximum payment period of five (5) years may be allowed on the condition that. they show proof of capacity to pay through an Affidavit of Income with supporting documents |i, Buyers who are over 65 years of age may avail of the following options: ‘* tobe substituted as awardee by next of kin who is qualified to be an awardee; or ae COPY | - : ae = i‘Omnibus Potty on Sales nd Diepastion Page 8027 + to be substituted as awardee, if reasonable under the circumstance, by a person from whom he or she depends for support, financially or otherwise, provided such person is qualified to be an awardee. * to retain their award upon written petition and submission of an Affidavit of Support (Annex “E") by their children to ay the amortization of the lovhousing unit within the 5- year repayment period 5.1.5 Lease a. The lease contract is for a period of five (5) years and may be renewed upon the application of the beneficiary and at the option of NHA, b. The monthly lease rate shall be equivalent to fifty (50%) percent of the current monthly amortization for the lot/housing unit/lot with housing unit/condominium unit but not less than three hundred fifty pesos (PhP 350.00). c. The monthly lease rate shall be uniform for the first five (6) years. The renewed lease shall be subject to a five percent (5%) increase every five (5) years thereafter. d. Lease rights are non-transferable exept by hereditary succession which shall take place only if account is updated. Failure of the heirs to assume such obligations, the unit shall revert back to NHA for disposition to other qualified beneficiaties, e. Non-Conferment of Preemptive Rights. The lease arrangement shall not confer preemptive rights on unit occupants affected by a legal case/confiict of claims and technical issues. Lease is subject to immediate revocation after resolution of the technical issue or legal case/confict of claims, where the appropriate/winning party ‘shall apply for purchase of the unit. If the occupant loses his claim, he/she shall voluntarily vacate the unit and dispose of the structurefhouse through sale to the winning party or by dismantling the same. 5.1.6 Lease with Option to Purchase ‘a. Adoption of Lease with Option to Purchase is prescribed for the following cases: @ CERTIFIED Cor af‘Omnibus Potty on Sales and Diepation Page 90°21 Occupants who, at the time of avail ment, are not financially capable of paying the required monthly amortization under a Conditional Contract to Sell; li. Occupants whose lots are subject of legal and technical issues b. Allthe terms and conditions under Lease shall also apply to Lease with Option to Purchase, c. The option to purchase the lot, housing unit or lot with housing uniticondominium unit may be exercised by the lessee any time during the lease period subject to the following terms and conditions: i, The account is up-to-date; Up-to-date rental payments shall be credited 2s partial payment of the purchase price. ‘The actual purchase price of the unit shall be equivalent to the balance of the selling price after crediting up-to-date rental payments. li, The legal and/or technical issues have been resolved. d. Total lease payments for the first five (5) years of up-to-date ‘accounts shall be credited to the selling price upon the purchase of the lot or unit by the lessee. However, beyond five (5) years, lease payments are no longer creditable to the selling price. Both delinquency and penalty interests/charges are not creditable for the whole term of lease. @. The selling price shall be the valid price at the time of execution of the lease contract. In case of resolved legal cases/conflict of claims and technical issues where the winning party is not the occupant, the selling price shall be the valid price at the time of purchase. 5.1.7 Usufruct a. Shall be adopted in low rise buildings/projects where ownership of the land cannot be conveyed. b. Period of usufruct is thirty (30) years and renewable for an ‘additional twenty (20) years, or life of the building and the mutual agreement of the parties. c. The usufructuary right shall not be transferable to other parties ‘except in cases of hereditary succession or to his substitute or next of kin. # CERTIFIED CO! > ‘Control Dale =COnmus Patty on Sales and Disposition Page 10027 d. All permanent improvements introduced by the beneficiary in the property shall be considered as attachment and shall form part of the subject property in the event of cancellation of usufructuary right by the NHA 5.1.8 Loan Documentation for Community Based Initiative Approach (CBIA). The beneficiary who is @ qualified member of the Community Association shall sign the Individual Loan Agreement (ILA) with Assignment of Loan Proceeds. The concerned District Office under whose jurisdiction the project site is located shall be responsible for the processing, approval of the individual loan documents, while the notarization of the document shall be for the account of the Partner/Developer. 6.2 CONDUCT OF PUBLIC RAFFLE 5.2.1 To give equal chances to qualified low-income applicants for government housing benefits in the award of real properties whether for sale or lease (house and lot packages, lots or housing units, condominium units), conduct of public raffle is prescribed in the following situation: a, Where the number of qualified applicants is more than the number of completed units for disposition; b. To determine the house and lot, housing unit or lot assignment of relocated beneficiaries, ly classify unit assignments based on applicants’ income wherein applicants with higher income are qualified to be awarded the foremost units located in the ground floor, along with Persons with Disability 5.2.2 A Raffie Committee in each Region shall be constituted with the following membership: Chairman: Regional Manager Members: Concemed District Manager or his representative Representative of pre-qualified applicants Observer: Representative of EMD and Accounting Department The Raffle Committee shall conduct the raffle at the scheduled date, time and place and thereafter shall post conspicuously the list of Raffle winners duly approved by the Regional Manager. An additional ten (10) names shall be drawn in cases of withdrawal by raffle winners. # CERTIFIED CoP 8Conus Patty on Sales and Dispoation Page 11021 Vi. DOCUMENTARY REQUIREMENTS The applicant shall submit to the concemed District Office the required documentary requirements in originalicertified copy as follows: 6.1 Duly notarized Swom Application To Purchase (SAP) Lot/Lots with Housing Units/Condominium Units (Annex “F-1” (English) Annex “F-2” (Tagalog)”) 6.2 Proof of Identity - Photocopies of any of the following Government-Issued Identification Card subject to verification/comparison with the original |.D. List of Valid Identification Cards: Primary Identification Cards Secondary Identification Cards ‘* Philippine Passport © TINID * SSS ID or SSS UMID ‘© Postal ID (Issued 2015 onwards) © GSISID or GSIS Barangay Certification * Driver's License © GSIS e-Card * PRCID DSWD Certification * OWWAID Police Clearance © iDOLE Card * Employment ID © Voters ID © Firearms License © Senior Citizen’s ID * PWDID © NBI Clearance © Philhealth ID (digitized PVC) Updated Solo Parent ID Pag-IBIG Membership 10 6.3. Proof of Civil Status a. For Single Applicants - Certificate of Live Birth issued by the Philippine Statistics Authority (PSA) b. ForMarried Applicants -- Marriage Certificate issued by the PSA ©. For Solo Parent - Updated Solo Parent ID issued by Dswo d. For Common-Law - Birth Certificate issued by PSA Relationship submitted by each applicants along with a Notarized Affidavit of Cohabitation 5 SB ceenmep copyOmnibus Paty on Stes and Dspostion "Page 1221 @. Forde Facto Separation - Birth Certificate issued by PSA submitted by each applicants along with @ Notarized Affidavit de Facto ‘Seperation by Applicant Spouse f. For Legally Separated = Certified True Copy of the Decree of Legal Separation issued by the Court 9. For Annulled Marriage ~ Certified True Copy of the Decree of Annulment issued by the Court Note: _In order to effect the immediate processing of awards, submission of the notarized Swom Application to Purchase (SAP) should suffice, subject to the completion of other requirements within three (3) months upon receipt thereof. Immediately upon submission of the notarized SAP, the District EMU shall require the applicants photograph to be taken for reference purposes, subject to existing provision of applicable laws, Upon submission of the said requirements, proper verification of the documents and IDs shall be made by the concemed Project Office by: 1. Reviewing the submitted originals and/or certified true copies of the required affidavits and or/documents; and 2, By examining the IDs and comparing it with the photocopies submitted by the applicant. If upon verification the submitted documents and/or IDs are found falsified, notwithstanding the fact that the applicant has already been awarded of or is already in possession their respective units, such ground shall cause the immediate disqualification and eviction of the occupant, without prejudice to the filing of appropriate civil and criminal actions against them. Vil TERMS AND CONDITIONS A. For Regular Projects 7.1 The down payment and processing fee requirement in all modes of disposition shall be waived. 7.2 Moratorium and Effectivity Date of first Monthly Amortization for Resettlement Projects covered by In-City relocation per MC No. 2645 dated August 7, 2014 (Annex “G”) | Moratorium | Effective date of first Program period Monthly Amortization In-city Resettlement | Three (3) months [4 month | ee | | TAS |‘omnbus Paley on Sales and Dipostion Page 13021 The moratorium period on payments and the effectivity of payment of first monthly amortization is from date of occupancy or issuance of Entry Pass whichever comes first. The issuance of Entry Pass was already devolved to the Regions per MC No. 2019-014 dated 11June 2018. A five-day grace period on the succeeding month is granted in the payment of the current monthly amortization without penalty. 7.3. Effectivity Date of the First Monthly Amortization/Installment Payments of Residential Lots/Units covered by Group Award/Sales Report (GA/SR) per Memorandum Circular No, 2383 dated October 13, 2014 (Annex "H"). [Date of Signing of Contract Effectivity Date ] | 4-45 day of current month Following month 16-31 day of current month —_| Two (2) months after 7.4 Assessment Fees ~ for Low Rise Buildings (LRBs) and Medium Rise Housing (MRH) ‘A monthly Assessment Fee (Security, garbage collection, utility and janitorial services) and other fees necessary to the operation and maintenance for the premises shall also be for the account of the awardee and shall be paid to NHA or to the Condominium Corporation/Awardees Association, as the case may be. 7.5 _ Insurance Fees/Premiums Fire and earthquake insurance premiums shall be for the account of the awardee and shall be paid to NHA together with monthly to amortization. Failure to pay the monthiy insurance premium shall have the same effect as failure to pay the required monthly amortization and subject to imposition of sanction 7.8 — Miscellaneous Fees Application for the installation of utilities such as power, water, telephone and use of other services and its consumption charges shall also be for the account of the awardee. 7.7 Taxation Real Estate Tax/Beneficial User's Tax shall be for the account of the awardee upon execution of contract and shall be paid directly to the government agency concemed. ' $B cernrico cor78 79 COnus Paty en Sales and ispostion Page 14021 Conditions and Restrictions Except by hereditary succession, the AWARDEE shall not sell, encumber, morigage, lease, sublet or in any manner alter or dispose of his/her lotfot with housing unitcondominium unit or rights and interests thereon at any time, in whole or in part, within ten (10) years from issuance of the title in his/her name without prior written approval of the NHA or its successor-in-interest, Provided, further, that the loot with housing uni’condominium unit shall be disposed only to those eligible under Section 16 of RA 7279/or LIAC guidelines, as applicable, including but not limited to other Conditions and restrictions stipulated in the enabling laws governing the specific project/s shall apply. ‘The encumbrance/restriction above mentioned shall be annotated on the Transfer Certificate of Titie/Condominium Certificate of Title to be issued in favor of the Awardee. Further, the said encumbrance/restriction shall be cancelled upon the lapse of the restrictive period stated therein as per request by the awardee and Payment of the required cancellation fee. Stipulations in the Contract 7.9.1 The Awardee shall not change nor convert the use of the residential lot/lot with housing unit/condominium unit 7.92 In case the Awardee abandons the lotlot with housing unit/condominium unit without informing NHA or its successor- ininterest, the Awardee's award shall be cancelled and shall be disqualified from any assistance under the govemment's housing program and the lot/iot with housing unit/condominium unit including its improvements shall revert to NHA or its successor-in-interest. 7.9.3 Upon occupancy of the lot/lot with housing unit/condominium unit, the Awardee shall assume payment of power and water charges including real property taxes for the lot/lot with housing unit/condominium unit and its improvements. The Awardee shall likewise pay monthly assessment fees to the homeowner's association/condominium corporation for_maintenance, ‘security, garbage collection and other appropriate fees, if any. 7.9.4 Incase of: ute and/or litigation the venue of actions shall be in the proper court within the concemed region. 7.9.5 Agreements and restrictions shall be binding upon the heirs, executors, administrators, assigns and suocessors-in-interest of the respective parties hereto.‘Onis Poly on Sales and Opostion Page 1502 B. For Community-Based Initiative Approach (CBIA) Projects 7.9.6 Pricing. The price of the lot and housing unit shall be based on the Board approved pricing for the specific project. 7.9.7 Loan Terms i. A housing assistance in the form of a subsidy shall be given per loan package based on the pronouncement of the President or as approved by the NHA Board of Directors upon the recommendation of the Pricing Committee. li. The loan shall be payable over a maximum period of thirty (30) years subject to the age limit of seventy (70) years. ll, The loan for the developed lot/ot with housing unit shall be subject to Three percent (3%) interest rate per annum. If the Joan amount exceeds PhP 400,000.00, the interest rates defined under MC No. 2223 dated April 28, 2009 shall apply (Annex “1") or until such time that the new pricing policy is approved by the NHA Board. Beneficiaries shall have the option to pay the amount loaned under a shorter repayment period subject to the same interest. iv For the relocated Informal Settler Families (ISFs), the first monthly amortization payment based on the Schedule of Amortization shall be due and payable immediately on the month following the end of one year from date of ‘occupancy / issuance of Entry Pass whichever comes first. per MC No. 1996 dated October 3, 2006 (Annex “J”) and succeeding payments for the loan shall be made without the need of any demand within the first five (5) days of each month, Failure or delay in payment shall entitle the NHA to charge delinquency interest at the rate of % percent (0.50%) er month on the amount due and payable. v. For AFP/PNP Housing Phases 1, 2 and 3, amortization payment shall be done through salary deduction under the Collection Servicing Agreement entered into and among the NHA, AFP and PNP. The first monthly amortization payment for the Individual Loan Agreement (ILA) duly signed and notarized within the first 15 days of the month hall commence on the 4" month thereafter. For ILA duly signed and notarized from the 16" up to the end of the month shall commence on the 5® month thereafter. ‘Succeeding payments for the loan based on the Schedule of Amortization Payments shall be made without the need of any demand within the first ten (10) days of each month. Failure or a copy‘Omnibus Poly on Sees and iepostion "Page 16021 delay in payment shall entitle the NHA to charge delinquency interest at the rate of % percent (0.50%) per month on the amount due and payable. In cases, where there is no Collection Servicing Agreement executed between the AFPIPNP Housing Board and the beneficiary, direct payment to NHA shall be considered. The beneficiary shall pay in full the outstanding balance of the loan account in case of separation, retirement or dismissal from service. Failure to settle the outstanding obligation will cause the cancellation of the contract. vi, For Goverment Employees Housing Projects, mode of disposition is through Outright Cash or loan take out with HDMF-Pag-IBIG Fund or other Goverment Financing Institutions (GF). Effectivity shall be upon receipt of loan proceeds. In-house financing may be considered in the event that the awardee-applicant does not qualify with the terms of HDMF- Pag-IBIG Fund or other Govemment Financing Institutions, C. For Calamity Projects with Partial Cost Recoverability per Memorandum Circular No. 2018-006 dated February 21, 2018 entitled (Guidelines prescribing the Disposition of Developed Lots with housing Units in NHA | Permanent Resettlement Projects for calamity victims) 7.9.8 A Usufruct Agreement shall be executed by NHA and the awardee 7.9.9 The awardee shall pay a processing fee of Two Hundred Pesos (PhP 200.00) 7.9.10 The Usufruct period shall be for a period of five (5) years. and shall be deemed automatically terminated anytime within the usuftuct period should the awardee exercise his/her option to purchase the property or if found to have violated the stipulated conditions in the usufruct agreement. 7.9.11. The awardee has the option to purchase the lot/unit anytime within the usufruct period at the appraised value of the land at the time of purchase. if this option is exercised the usuffuct agreement is automatically terminated and a Conditional Contract to Sell (CCS) documenting the sale of the lot inclusive of the land development cost will be executed. The awardee shall be provided various repayment options (6.9. 5,10,15 years) to be amortized at a fixed amortization scheme 7.9.12 On the 6" year, awardees who have not opted for the option to purchase shall have to execute an Affidavit of indigency and submit any of the following: a. Proof of Income (e.g. ITR, Affidavit of Income) : eee copyvil. COnmius Potty on Sales and Dispostion Page 1724 b. Certificate of Indigency from the Local Social Welfare and Development Office having jurisdiction over the project site 7.9.13 The usufruct shall be extended for another two (2) years if the awardee has been evaluated to be incapable of ‘acquiring the property. 7.9.14 If evaluated to be capable, the usufruct agreement shall ease to be in effect and @ CCS shall be executed to document the sale under a repayment period most affordable to awardee. 7.9.18 An awardee if evaluated to be still indigent and unable to pay after the lapse of the two(2) year usufruct extension, can still file an appeal with the NHA or its successor- in -interest and shall be decided upon on a case to case basis. SANCTIONS Grounds for imposition of sanctions: 8.1 Failure of occupants to apply for award within fifteen (15) days from Issuance of a Final Notice to Apply, the Authority shall summarily eject without the necessity of the judicial order any illegal occupant in any home. lot, or dwelling unit owned or administered by it. 8.2 Failure of the awardee to comply with the Individual Notice of Award (INA) within the 30-day grace period, and Final Notice to Comply within the ten (10) days period, shall cause the cancellation of Award and re- award the ‘Subject property to other qualified beneficiary. 8.3 Delinquency charges of one-half percent (0.5%) shall be imposed on monthly delayed payment. 84 Failure to pay three (3) consecutive monthly amortizationsilease payments shall cause the cancellation of the contract. Thereafter, the beneficiary shall be given a final grace period of thirty (30) days to update the account or to voluntarily vacate and surrender the unit within ten (10) days from the expiration of the said grace period, Jn the event that the beneficiary failed to exercise any of the abovementioned options, the Notice of Canceliation of Contract by notarial act signed by the Manager, Legal Department for non -compliance with the three (3) Demand Notices to comply with contractual obligations, such 28 payment of atrearages of three (3) or more months, shall constitute the fourth notice leading to eviction. The Notice of Eviction shall be signed by the Regional Manager. Further, the guidelines governing the preparation and issuance of the Demand Notices both for non ~ compliance to the Individual Notice of Award (INA) and violation of contractual obligation as, stipulated in MC No. 2374 dated September 12, 2011 shall be adapted. (Annex "K”) * eee copy‘Omnibus Poly on Sales and Ospostion 1Pop0 1824 8.5 Any violation of the awardee of the Occupancy Rules and Regulations as stipulated in the Contract, shall be reported to the District Manager by the concerned staff who are undertaking area work (EMU, CSSU or Finance Unit), The said awardee shall be given two (2) wamings for the reported violation. Cancellation of the Award shall be rendered, if despite wamings, the said awardee continues violating the said Occupancy Rules and Regulations. The National Housing Authority shall have the power to summarily eject, without the necessity of judicial order, any and all squatters’ colonies on goverment resettiement projects, as well as any illegal occupant in any home lot, apartment or dwelling unit owned or administered by it as embodied in PD 1472 Section 2. Further, the processes governing summary eviction of illegal occupants and /or dismantling of structure as stated in Memorandum Circular No. 2508 dated April 25, 2013 (Annex “L”) shall be observed. 8.6 Should the Awardee unlawfully sell, transfer, mortgage, or otherwise dispose of his/her lotlot with housing unit’condominium unit or any right there on within the ten (10)-year restrictive period, the transaction shall be null and void. He/she shall also lose his/her right to the land/housing unit, forfeit the payment of fees made thereon, and shall be barred from the benefits of RA 7279 fora period of ten (10) years from the date of violation. IX. DISPOSITION OF CANCELLED AWARDS TO OTHER QUALIFIED BENEFICIARY The disposition of lots with cancelled awards shall be categorized as: 9.1 New Disposition - Disposition of lot with cancelled award due to non- compliance to the individual of Award (INA) to another qualified beneficiary. 9.2 Tenurial Disposition - Re-award to other qualified applicants lots with cancelled awards/accounts due to the violation of contractual obligations. ‘The process of awarding the cancelled awards to other qualified beneficiary shall follow the same manner of disposition for reguiar awards. X. DISPOSITION OF ABANDONED/VACATED OR ILLEGALLY SOLD UNITS (Lot, house and lot, Medium Rise Buildings) including improvements and rights thereon in all NHA Projects. 10.1 The awards granted for the units which are_abandoned/ vacated without Payment continuously for more than three(3) months or those sold illegally by the original awardees shall be cancelled pursuant to Memorandum, Circular No. 2374 dated September 12, 2011. 7 ie CERTIFIED cory‘Ontos Pateyon Sales ana Page 19027 10.2. Disposition of cancelled award shall be treated as tenurial disposition. The process of awarding to qualified beneficiary shall follow the same manner for regular awards 10.3 The following may become awardees of the lots/house and loticondominium units which awards were cancelled provided they pass the existing eligibility criteria: 10.3.2. actual occupants of abandoned/vacated units who were verified by the Project Office per Occupancy Verification Report (OVR) 10.3.b. walk in applicants and other interested parties who are homeless citizens defined under RA 7279 for vacant abandoned units 10.3.¢ buyer of rights with proof of sale from the original awardee Who are the actual occupants of the units per occupancy verification conducted by the Project Office 10.4 Pricing shall be subject to price adjustment based on the current appraised value of the unit. 10.5 The award shall be documented through a Conditional Contract to Sell or Deed of Sale whichever is applicable 10.6 Legalization and Occupancy Fee shall be collected from applicants who are buyer of rights and those who illegally occupied the abandoned/vacated units which shall be tacked- in to the selling price, The amount shall be recommended by the Regional Office 10.7 _ Incentives for cash /full payment and updated account shall apply. XI. RESTORATION OF CANCELLED AWARD | A cancelled award may be restored if the following conditions exist: 11.1. Ifthe unit or lot subject of request for restoration of award has not yet been awarded to a new awardee-beneficiary; 14.2. If the unit or lot subject of request for restoration is presently occupied by the legal awardee who is requesting the restoration of cancelled award and is being used exclusively as residence by his family members and not by other persons who are not members of his immediate family, either on lease or rent-free basis. 11.3 Account has not yet matured é ae CERTIFIED copy114 ‘Onmbus Potty on Sales and Dispoxtion Page 20624 ‘The legal awardee is willing to pay the lo¥unit in full A restoration fee of PhP 500.00 shall be imposed. Restoration of Award shall be approved by the General Manager and can be availed of only once. Xi, SWAPPING AND CHANGE OF LOT AWARD. 12.1 12.2 123, 12.4 ‘Swapping shall be allowed between two (2) awardees under the following circumstance subject to the submission of a notarized Joint Affidavit of ‘Swapping of LowUnit: = Beneficiaries who were awarded lots won through raffie conducted by the Authority and who find it necessary to exchange their lots/housing units for bigger/smaller sized lots depending on their capabilities to pay and accommodation requirements or simply for locational convenience. Change of lot award within the same Project shall be allowed if the title cannot be issued immediately by NHA provided that: 12.2.1 Awardee files an application to change the lot assignment indicating therein his/her reason/s and commitment to construct occupy the structure 122.2 Awardee's total payment shall be applied to the new lot assignment 12.2.3. Awardee shall update the account upon approval of the change of lot assignment. Change of Lot Award to another NHA Project may be considered for those who retumed/waived their original award to NHA and provided further that the awarded lot/unit is still unoccupied/vacant. A processing fee of Two Hundred Pesos (PhP 200.00) shall be charged to the awardee /applicant for an approved swapping of lol/change of Lot Award. XII IMPLEMENTATION PROCEDURES 13.4 13.2 ‘An Orientation Seminar shall be conducted by the Estate Management Department (EMD) for the operating units within one month after the approval of this Memorandum Circular. The Corporate Operations and Systems Development Department (COSDD) shall immediately undertake the necessary modification in the existing computer program essential for the implementation of this Circular.‘Omnis Potty an Sales and postion Page 21 of XIV. MONITORING OF IMPLEMENTATION 14.1. All Regional Offices shall monitor the implementation of this Circular and submit a quarterly report to EMD during its implementation period using the prescribed format of the Sales and Disposition Performance Report) (Annex “M"). 14.2 The EMD shall, in tum, submit a consolidated report every 5" day of the following quarter to Management on the overall implementation of this Circular. XV. SUPPLEMENTAL PROVISION Amendatory guidelines may be issued to supplement this Circular. XVI. REPEALING CLAUSE All Memorandum Circulars (MC 1807 dated May 9, 2003, 1807-A dated November 24, 2009 are hereby repealed. All other Advisories and related issuances which are inconsistent with this Memorandum Circular are modified accordingly. XVI, EFFECTIVITY This Memorandum Circular shall take effect fifteen (15) days from the date of filing with the Office of the National Administrative Register, UP Law Center Diliman, Quezon City. ‘guidance of all concemed. INO P. ESCALADA, JR. General Manager yur Date; _ 08 dune 2021 FY 22 certiFIED COPY 34ANNEXES: | Annex "A" - © HUDCC Resolution No. 4 | Price Ceiling for Socialized Subdivisions Projects Annex *B” - HUDCC Resolution No. 2 | Price Ceiling for Socialized Condominium Projects | Annex *C* - Memorandum Circular No. 2016-089 Annex “D" - Memorandum Circular No. 2018-022 | Annex “E* - Affidavit of Support | Annex *F-1" - Som Application To Purchase (SAP) Lot/Lots with Housing Units/Condominium Units Annex *F- - Sinumpaang Aplikasyon Para Sa Pagbili/Pag-Upa ng Lote/Yunit na Residensyal | ‘Annex "G" - Memorandum Circular No. 2645 Annex ‘H* - Memorandum Circular No. 2383 | Annex “I” - Memorandum Circular No. 2223 Annex “J" - Memorandum Circular No. 1996 Annex *K” = Memorandum Circular No. 2374 Annex *L? = Memorandum Circular No. 2506 ‘Annex ‘Mt - Sales and Disposition Performance Report BP cennmen cory —__amerrnivoae |Republic ofthe Philippines Office of the President Ay HOUSING AND URBAN DEVELOPMENT Cooroinatine CoUNCIL aaron HUDCC RESOLUTION NO. 1 Series of 2018 PRICE CEILING FOR SOCIALIZED SUBDIVISION PROJECTS | WHEREAS, Section 2(b) of Republic Act No. 10884, otherwise known as the "Balanced Housing Development Program Amendments” mandates thet the Housing and Urban Development Coordinating Council (HUDCC) and the National Economic and Development Authority (NEDA) shall jointly determine and eet Separate socialized housing price cellings for socialized subdivisions and Socialized condominium projects which shall be mandatorily reviewed or reviced every two (2) years; WHEREAS, the current price ceiling of PhP 450,000.00 for horizontal Socialized housing was last adjusted on 16 October 2013 under HUDCC. Resolution No. 1, Series of 2013; WHEREAS, the inter-agency Housing Policy Working Committee, in its Series of meetings, reviewed the existing price ceiling for socialized subdivision Projects and recommended the setting of a tiered price ceilings based on WHEREAS, after the presentation to and evaluation of the proposed price Celing by the Heads of the Key Shelter Agencies, the following price ceilings with ‘the corresponding revised minimum floor area requirements were recommended: 2) PhP.480,000.00 = 22 sq.m. with loft of at least 50% of the base structure, or 24 sq.m.; 5) PhP530,000.00 = 24 sq.m. with loft of at least 50% of the base structure, or 28 sq.m.; and ©) PhP 580,000. 00 28 sq.m. with loft of at least 50% of the base structure, or | | 32 sq.m. | | 7 8 cerririen coryWHEREAS, in the review and revision of the housing price ceiling for Socialized subdivision projects the following factors were considered: @) Definition of socialized housing under Batas Pambansa Big. 220 which is “housing units which are within the affordability level of the average and low-income earners which is thirty percent (30%) of the gross family income as determined by the National Economic and Development Authority from time to time”; b) The cost of production and the affordability level of the target market for socialized Housing based on the average income of families belonging to the bottom 30% of income population using the 2015 Family Income and Expenditure Survey data of the | Philippine Statistics Authority; and ©) Section 20 of Republic Act No. 7279, otherwise known as the “Urban Development and Housing Act of 1992”, as amended by Section 2 (c) of Republic Act No. 10884 requiring that all savings realized by virtue of the incentives to the private sector Participating in socialized housing shall accrue in favor of the beneficiaries. WHEREAS, having considered the foregoing, the Council finds the Proposed tiered price celling for socialized subdivision projects reasonable. THEREFORE, BE IT RESOLVED, AS IT IS HEREBY RESOLVED, that a ered price celling for socialized subdivision projects be adopted and the current Price ceiling for socialized subdivision projects be revised and set as follows: 2) PhP 480,000.00 = 22 sq.m. with loft of at least 50% of the base structure, or 24 sq.m.; ») PhP 530,000.00 = 24 sq.m. with loft of at least 50% of the | base structure, or 28 sq.m.; and | ©) PhP 580,000.00 = 28 sq.m. with lof of at least 50% of the base structure, or 32 sq.m. RESOLVED FURTHER, that the Housing and Land Use Regulatory Board | be directed to formulate and Issue the appropriate technical design and standards for subdivision projects as may be necessary for the implementation of the new price ceilings for socialized subdivision projects. ah \

Housing and Urban Development Coordinating Council ATTY. FALCONI V. MILLAR, CPA Secretary General Housing and Urban Development Coordinating Council ACMAD RIZALDY P, MOTI ATTY. LLOYD CI President & CEO Home Development Mutual Fund PHER A. LAQ CEO & Commissioner Housing and Land Use Regulatory Board LPUZ MARCELINO P. ESCALADA, JR. Officer-in-Chaye General Manager Home Guaranty Corporation National Housing Authority Lia — FELIXBERTO A. BUSTOS, Ph.D. ATTY. ARN President National Home Mortgage Corporation (CARDO B. CABLING President Social Housing Finance Corporation APPROVED THIS 27" day of April 2048 at Quezon City, Philippines.ERNESTO M, PERNIA Secretary ue National Economic Development thority BENJAMIN E. DIOKNO Secretary Department of Budget and Management Metro Manila Develo; it Authority INT O. ARANAS Presidenf and General Manager Governmeni{ Service Insurance System n Department of Public Works and MARK A. VILLAR CARLOS G. DOMINGUEZ Secretary Department of Finance Secretary Highways cece MONG a we | President & CEO Development Bank of the Philippines i ! j i EMMANUEL F. DOOC President & CEO Social Security System B “eH CERTIFIED copy ‘Doead 7 7OFFICE OF THE PRESIDENT | NATIONAL HOUSING AUTHORITY MEMORANDUM CIRCULAR No. 089 SUBJECT: RETENTION OF APPROVED SELLING PRICES FOR ALL REMAINING UNSOLD RESIDENTIAL LOTS AND HOUSING UNITS OF THE NATIONAL HOUSING AUTHORITY 1.0 BACKGROUND AND PURPOSE 2.0 SCOPE AND COVERAGE This Circular shail cover all unsold residential lots, housing units and house and Gt packages under various housing programs: Resettlement, Settlement Rbstading, Sites & Services, Completed Housing, Medium Rise Buildings. Lew Rise Buildings. 3.0 GENERAL GUIDELINES Disposition of ali remaining unsold residential lots and housing units of existing housing projects at the latest approved selling prices. Retention of selling prices will be in effect while the Pricing policy is being reviewed and the Revised Pricing Policy is finally approved by the NHA Board of Directors, | 4.0 REPEALING CLAUSE | All provisions of Memorandum Circular No. 1805 dated 29 April 2003 except he adjustment in selling prices shall remain in effect until the Revised Pricing Policy 's approved by the NHA Board of Directors. 5.0 EFFECTIVITY This Memorandum Circular shall take effect immediately and shall remain in force Unless otherwise superseded or revised / For implement guidance of all concerned. 7 MARCELINO P. ESCALADA, JR. (General Manan | 19 Ustober 2016 $ eer FIED CoPY DasNHA MEMORANDUM NO. 2018 -_ 022 SUBJECT : REDUCTION OF RATE OF AMORTIZATION INTEREST fa Suat fo Board Resolution No 6387 dated 07 June 2018 (ey acountsloan covering NHA horizontal and wenn housing (3) PERCENT PER ANNUM, 10 20 Ria Office of the President NATIONAL HOUSING AUTHORITY ALA FOR GESOUNTS! LOANS COVERING NIWA HORIZONTAL AND. VERTICAL HOUSING PROJECTS the rate of Amortization Interest '9 Proyects 1s reduced to THREE SCOPE AND CoveRacE: TY The duced interest rate of 3% shal cover OUTSTANDING ACC ONTS!LOANS THAT ARE UPDATED AS OF Jot 34 2018 and NEW ACCOUNTS, & piated Accounts are those accounts with zero arrearages as of 31 July 2018 and those accounis with 1 to 2 monihe arrearages provided they are updated as of 05 August 2018 New Accounts are accounts crested beginning 01 August 2018 12 Covered Accounts/Loans Recounts under Sales Contacts, Lease wih Purchase Arrangements and Loan Agreements > Accounts under the Land Tenure Assistance Program (LTAP) and Community Land Aequisiton Support Progra (CLASP) © Asgouns Under projects covered by Project cy iba® agreements between NHA and project impiementors, 4 LGU/ Institutional Accounts covered by Project or Loan Agreements +9 For outstanding accounts already documented rior to the approval of this Gisulat. only the remaining balance of the love oe collected over the interest?“ OF We contract shall be subjected to the age amortization interest 14 For accounts that nave aveady been condoned under the previous Restructuring and Condonation Program mpiomoney y2 2008. they can sti Apply for the Fowering of 3% interest | DOCUMENTATION REQUIREMENTS Darke Govered by the reduced interest amortization rate Of 3% effective 01 August 2018. the awardees shall have 10 sgn the Adgena n to thew Contracts which CERTIFIED copy | K perenne esl owe msc yr ae ashe Dddinfedl ControterDan |