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FEATURES
CMP OVERVIEW AND OBJECTIVES
CMP is a people-led housing finance and community development program implemented by the Social Housing Finance Corporation (SHFC) which assists legally
organized associations of low-income groups to acquire and develop a tract of land under the concept of community ownership.
The primary objective of the program is to assist residents of blighted or depressed areas to own the lots they occupy, or where they choose to relocate to, and
eventually create sustainable and resilient communities in coordination with the local government units. CMP shall be implemented in various Flexible, Affordable,
Innovative, and Responsive (FAIR) shetter solutions.
Below is a schedule of how much a prospective member-beneficiary can borrow from CMP:
· For onsite P400,000.00
· For horizontal housing P480,000.00 up to P580,000.00
· For vertical housing P600,000.00 up to P750,000.00
· For farmlot P350,000 + P50,000 Farmer Support Assistance
The loan may be used for land acquisition (Phase 1), site development (Phase 2), and house construction or home improvement (Phase 3).
The determination of final loan amount shall be subject to existing CMP guidelines. The CMP loan will bear 6% interest per year based on the outstanding balance and
will be payable over a maximum period of 25 years in equal monthly amortizations.
DUE DILIGENCE
The processing of CMP loan applications will essentially involve due diligence verification by SHFC on the CMP loan application and the collateral. Upon acceptance of
complete documentary requirements, SHFC shall strive to devote no more than one hundred twenty (120) working days to complete the due diligence process from
CMP loan application to loan release.
CMP RESETTLEMENT MODALITIES
CMP LOAN COLLATERAL
The land to be acquired by the Community Association (CA) shall serve as the CMP loan collateral, and will be acceptable if the following criteria are met:
1. The title to the land is free from all liens and encumbrances at the time of release of the CMP loan;
2. The land is not classified as agricultural;
3. The land is not within environmentally-constrained/ hazardous or high-risk areas as certified by the DENR and the concerned local government unit;
4. The land has a road right of way or an access road lot to a city, municipal or barangay road; and
5. The landowner should have the legal capacity to sell or transfer the subject property for loan collateral under the CMP.
BORROWERS
Tenants/beneficiaries shall form and register a CA, which entity shall borrow and initially own and mortgage the land. Individual beneficiaries’ right over the land and eventual ownership of the lot is achieved through a Lease Purchase Agreement (LPA) with the CA.
ELIGIBILITY OF CMP BORROWERS
1. Filipino citizen, of legal age (18) at the time of the loan application and shall not be more than 60 years old upon loan release;
2. Certifies under oath that he/she has not been a recipient of any CMP loan or other govt. housing programs. Does not own or co-own a real property and is not a professional squatter as defined in RA 7279;
3. Must be a structure owner, a renter or a sharer at the site.
DELINQUENCY / DEFAULT
A CA account is considered in default if it is not up to date with its loan amortization payments equivalent to three consecutive months.
PENALTIES
In case of non-payment of monthly amortizations on the due date (one month after release of the loan), the CA shall pay a penalty equivalent to 1/15 of 1% for day of delay.
INSURANCE
For the duration of the loan, there shall be a Mortgage Insurance on the lives of the principal borrowers as identified in the Master List of Members on a yearly renewable term basis. The insurance premiums shall be included in the monthly amortizations of the members.
SUBSTITUTION OF BENEFICIARIES / FORECLOSURE
The Master list of members submitted as part of the CMP loan application are deemed final and may not be subject to substitution during loan application processing period. A member may be substituted due to the following:
Substitution of beneficiaries:
1. MB has executed a notarized Voluntary Waiver of Rights on his/her allocated lot unit;
2. MB is an absentee MB (absentee is defined as failure to occupy the assigned lot/ unit without justifiable reason within one [1] year from take-out);
3. Existence of a final and executory decision or order from the courts or quasi-judicial body directing the MB to be substituted;
4. Upon death of an MB and his/her Mortgage Redemption Insurance (MRI) proceeds is insufficient to cover arrears in loan amortization; and
5. When any of items as mentioned under CMP Circular No. 046 occurs constituting an event of default under the Lease Purchase Agreement or Lease Agreement signed by the MB and the CA with the community
Renters or sharers in the project sites shall be preferred or prioritized in the substitution process.
The CA shall be responsible for the substitution of the member without prejudice to the right of SHFC to disqualify substitute members if they fail to meet the qualifications of a member or if there is proof of misrepresentation by the CA officers.
COMMUNITY MOBILIZERS (CMP-M)
Accredited CMP-Ms are tasked to assist informal settlers in organizing themselves into CAs. CMP-Ms may either be any government entity, non-government organizations (NGO) and People’s Organizations (PO) and must possess the needed skills to organize communities, document CMP project applications, and provide access to other government agencies involved in the program.
Community Mobilizers: Click here for information on the NEW Guidelines for the Accreditation of CMP-Ms
The land to be acquired by the Community Association (CA) shall serve as the CMP loan collateral, and will be acceptable if the following criteria are met:
1. The title to the land is free from all liens and encumbrances at the time of release of the CMP loan;
2. The land is not classified as agricultural;
3. The land is not within environmentally-constrained/ hazardous or high-risk areas as certified by the DENR and the concerned local government unit;
4. The land has a road right of way or an access road lot to a city, municipal or barangay road; and
5. The landowner should have the legal capacity to sell or transfer the subject property for loan collateral under the CMP.
BORROWERS
Tenants/beneficiaries shall form and register a CA, which entity shall borrow and initially own and mortgage the land. Individual beneficiaries’ right over the land and eventual ownership of the lot is achieved through a Lease Purchase Agreement (LPA) with the CA.
ELIGIBILITY OF CMP BORROWERS
1. Filipino citizen, of legal age (18) at the time of the loan application and shall not be more than 60 years old upon loan release;
2. Certifies under oath that he/she has not been a recipient of any CMP loan or other govt. housing programs. Does not own or co-own a real property and is not a professional squatter as defined in RA 7279;
3. Must be a structure owner, a renter or a sharer at the site.
DELINQUENCY / DEFAULT
A CA account is considered in default if it is not up to date with its loan amortization payments equivalent to three consecutive months.
PENALTIES
In case of non-payment of monthly amortizations on the due date (one month after release of the loan), the CA shall pay a penalty equivalent to 1/15 of 1% for day of delay.
INSURANCE
For the duration of the loan, there shall be a Mortgage Insurance on the lives of the principal borrowers as identified in the Master List of Members on a yearly renewable term basis. The insurance premiums shall be included in the monthly amortizations of the members.
SUBSTITUTION OF BENEFICIARIES / FORECLOSURE
The Master list of members submitted as part of the CMP loan application are deemed final and may not be subject to substitution during loan application processing period. A member may be substituted due to the following:
Substitution of beneficiaries:
1. MB has executed a notarized Voluntary Waiver of Rights on his/her allocated lot unit;
2. MB is an absentee MB (absentee is defined as failure to occupy the assigned lot/ unit without justifiable reason within one [1] year from take-out);
3. Existence of a final and executory decision or order from the courts or quasi-judicial body directing the MB to be substituted;
4. Upon death of an MB and his/her Mortgage Redemption Insurance (MRI) proceeds is insufficient to cover arrears in loan amortization; and
5. When any of items as mentioned under CMP Circular No. 046 occurs constituting an event of default under the Lease Purchase Agreement or Lease Agreement signed by the MB and the CA with the community
Renters or sharers in the project sites shall be preferred or prioritized in the substitution process.
The CA shall be responsible for the substitution of the member without prejudice to the right of SHFC to disqualify substitute members if they fail to meet the qualifications of a member or if there is proof of misrepresentation by the CA officers.
COMMUNITY MOBILIZERS (CMP-M)
Accredited CMP-Ms are tasked to assist informal settlers in organizing themselves into CAs. CMP-Ms may either be any government entity, non-government organizations (NGO) and People’s Organizations (PO) and must possess the needed skills to organize communities, document CMP project applications, and provide access to other government agencies involved in the program.
Community Mobilizers: Click here for information on the NEW Guidelines for the Accreditation of CMP-Ms
Community Mortgage Program > Fast Facts
A.On-Site and Site Upgrading/Development CMP. - A CMP modality intended for organized communities of informal settler families (ISFS) who are already residing in an area without the consent of the landowner. CMP financing may be availed of if the organized communities of ISFs have secured approval from the landowner for the purchase of the property where the former are currently residing.
It also intends to provide site development and housing/building construction loans for community associations which have already secured ownership of the property, as well as technical assistance loans for on-site community associations whose lands have been donated or awarded to them but who need loan assistance for the costs related to the transfer of registration/title of their donated or awarded properties into their association. This may apply to both on-site or resettlement projects.
B.Special Projects CMP. - A CMP modality initiated and funded by a government agency or private entity which comes in the form of relocation and resettlement project intended for Informal Settler Families (ISFs) or Project-Affected Families (PAFs) who are residing within government properties and/or will be affected by government infrastructure projects.
C.LGU CMP. - A CMP modality initiated and implemented by a Local Government Unit (LGU) which may come in the form of a CMP Resettlement Project, in accordance with the LGU's approved Local Shelter Plan (LSP) or other LGU shelter programs. An LGUinitiated resettlement project requires the LGU's participation and implementation of projects from conception until loan application. A project may be organized by the LGU itself, an accredited CMP Mobilizer, or SHFC.
D.Sectoral CMP. - A CMP modality that will cater to the different sectoral groups including but not limited to the basic sector groups needing resettlement assistance. A sectoral group represents a group or coalition of persons who share similar concerns and interests and intend to avail of resettlement assistance from SHFC.
E.Farm Lot CMP. - A CMP modality intended primarily for agricultural activities and secondarily for housing to benefit ISF-farmers and other legally organized ISFs who will venture into individual or communal farming. The Farm Lot CMP Resettlement Project shall have a maximum lot area allocation of 1,000 square meters per member-beneficiary and minimum allocation of 500 square meters; ten percent (10%) of which is intended for house construction
The planned community shall consist of the provision for basic utilities, judicious allocation of areas and good layout based on sound planning practices.
F.Industrial Workers CMP. - A CMP modality intended primarily for low-income employees of companies engaged in agro-industrial, industrial (processing zones), commercial, tourist, recreational, construction, and other enterprises similar thereto.
G.Housing for Peace Process & Nation Building CMP. - A CMP modality which would lead to the achievement of national peace and development through the provision of housing to a group of individuals who were previously involved in armed rebellions or insurgencies and voluntarily abandoned the armed struggle.
This modality also includes rebuilding damaged or destroyed homes in post-conflict areas of internally-displaced persons (IDPs).
H.Post-Disaster Recovery and Rehabilitation CMP. - A CMP modality which provides assistance to community housing projects in times of disaster. This program shall allow the communities to immediately embark on house consåuction and site development which adhere to the minimum standards and specifications of the design and structural components of disaster-resilient housing projects, as well as materials.
A disaster (which may be used interchangeably with calamity) under this modality is defined as an adverse event resulting from natural or man-made processes such as: (l) natural calamities or disasters which may include severe storms, tropical storms, floods, fires, earthquakes, volcanic eruptions, tsunamis and other geologic processes; and (2) human aggravated calamities or disasters which may include fire, chemical threats, hazardous materials, explosions, and other threats that may have resulted from human negligence, enor or intent.
I.Vertical CMP. - A CMP modality wherein a community of informal settler families (ISFs) are accommodated in a multi-storey building, usually a medium-rise vertical building. This may be implemented by either an in-city, near-site or near-city relocation or land sharing arrangement with LGUs or concerned government agencies.
L.Mixed-Use CMP. - A CMP modality aimed at developing a self-sustaining community by having a balanced mix of residential and commercial spaces, well-developed infrastructure and recreational amenities along with green and open spaces, and wellness areas.
Under this modality, a portion of the land (project area) is allotted for green spaces (9%) and PWD-friendly facilities (l %) over and above what is provided by law.
K.Culturally Sensitive CMP. - A CMP Modality that respects and responds to diverse ways of living, cultural traditions, customs, beliefs and practices of qualified Indigenous Peoples (IPs)/Indigenous Cultural Communities (ICCs) and ethnic and religious minority groups by adopting flexible and adaptable Culturally Sensitive Design (CSD) of housing units.
L.Turnkey CMP. - A CMP modality that aims to accelerate the socialized housing provision through the development of complete housing projects on a turnkey basis; and will allow developers of housing projects to comply with the provisions of Balanced Housing Development Program by participating in the CMP.
It also intends to provide site development and housing/building construction loans for community associations which have already secured ownership of the property, as well as technical assistance loans for on-site community associations whose lands have been donated or awarded to them but who need loan assistance for the costs related to the transfer of registration/title of their donated or awarded properties into their association. This may apply to both on-site or resettlement projects.
B.Special Projects CMP. - A CMP modality initiated and funded by a government agency or private entity which comes in the form of relocation and resettlement project intended for Informal Settler Families (ISFs) or Project-Affected Families (PAFs) who are residing within government properties and/or will be affected by government infrastructure projects.
C.LGU CMP. - A CMP modality initiated and implemented by a Local Government Unit (LGU) which may come in the form of a CMP Resettlement Project, in accordance with the LGU's approved Local Shelter Plan (LSP) or other LGU shelter programs. An LGUinitiated resettlement project requires the LGU's participation and implementation of projects from conception until loan application. A project may be organized by the LGU itself, an accredited CMP Mobilizer, or SHFC.
D.Sectoral CMP. - A CMP modality that will cater to the different sectoral groups including but not limited to the basic sector groups needing resettlement assistance. A sectoral group represents a group or coalition of persons who share similar concerns and interests and intend to avail of resettlement assistance from SHFC.
E.Farm Lot CMP. - A CMP modality intended primarily for agricultural activities and secondarily for housing to benefit ISF-farmers and other legally organized ISFs who will venture into individual or communal farming. The Farm Lot CMP Resettlement Project shall have a maximum lot area allocation of 1,000 square meters per member-beneficiary and minimum allocation of 500 square meters; ten percent (10%) of which is intended for house construction
The planned community shall consist of the provision for basic utilities, judicious allocation of areas and good layout based on sound planning practices.
F.Industrial Workers CMP. - A CMP modality intended primarily for low-income employees of companies engaged in agro-industrial, industrial (processing zones), commercial, tourist, recreational, construction, and other enterprises similar thereto.
G.Housing for Peace Process & Nation Building CMP. - A CMP modality which would lead to the achievement of national peace and development through the provision of housing to a group of individuals who were previously involved in armed rebellions or insurgencies and voluntarily abandoned the armed struggle.
This modality also includes rebuilding damaged or destroyed homes in post-conflict areas of internally-displaced persons (IDPs).
H.Post-Disaster Recovery and Rehabilitation CMP. - A CMP modality which provides assistance to community housing projects in times of disaster. This program shall allow the communities to immediately embark on house consåuction and site development which adhere to the minimum standards and specifications of the design and structural components of disaster-resilient housing projects, as well as materials.
A disaster (which may be used interchangeably with calamity) under this modality is defined as an adverse event resulting from natural or man-made processes such as: (l) natural calamities or disasters which may include severe storms, tropical storms, floods, fires, earthquakes, volcanic eruptions, tsunamis and other geologic processes; and (2) human aggravated calamities or disasters which may include fire, chemical threats, hazardous materials, explosions, and other threats that may have resulted from human negligence, enor or intent.
I.Vertical CMP. - A CMP modality wherein a community of informal settler families (ISFs) are accommodated in a multi-storey building, usually a medium-rise vertical building. This may be implemented by either an in-city, near-site or near-city relocation or land sharing arrangement with LGUs or concerned government agencies.
L.Mixed-Use CMP. - A CMP modality aimed at developing a self-sustaining community by having a balanced mix of residential and commercial spaces, well-developed infrastructure and recreational amenities along with green and open spaces, and wellness areas.
Under this modality, a portion of the land (project area) is allotted for green spaces (9%) and PWD-friendly facilities (l %) over and above what is provided by law.
K.Culturally Sensitive CMP. - A CMP Modality that respects and responds to diverse ways of living, cultural traditions, customs, beliefs and practices of qualified Indigenous Peoples (IPs)/Indigenous Cultural Communities (ICCs) and ethnic and religious minority groups by adopting flexible and adaptable Culturally Sensitive Design (CSD) of housing units.
L.Turnkey CMP. - A CMP modality that aims to accelerate the socialized housing provision through the development of complete housing projects on a turnkey basis; and will allow developers of housing projects to comply with the provisions of Balanced Housing Development Program by participating in the CMP.