END USER FINANCING OPTIONS __________ By: EDUARDO T. MANICIO Executive Vice President, SHFC
22nd SHDA-HUDCC National Developers Convention (26-27 September 2013)
OUTLINE OF PRESENTATION FINANCING OPTIONS: SHFC COMMUNITY MORTGAGE PROGRAM (CMP) Localized CMP Express Lane ABOT KAYA PABAHAY FUND DEVELOPMENTAL LOAN (AKPF-DL) HIGH DENSITY HOUSING (HDH) PROGRAM
FUND SOURCES GENERAL APPROPRIATIONS ACT (GAA) Balance of CISFA for CMP P3.6B for the HDH Program COLLECTION (Internally Generated Funds) PROPOSED BOND FLOTATION Sale of AKPF Non-Performing Loans (NPLs)
22nd SHDA-HUDCC National Developers Convention (26-27 September 2013)
THE COMMUNITY MORTGAGE PROGRAM (CMP) ď ą A mortgage financing program that assists legally organized associations of informal settler families (ISFs) purchase and develop a tract of land where they are currently situated (on-site) or where they choose to relocate to (off-site). Loan Stages &Loanable Amounts
Types of Loan
MM/ HUA
Monthly Amort
Provincial Areas
Monthly Amort
Lot Acquisition
P90,000.00
616.77
P45,000.00
308.38
Site Development
15,000.00
102.80
15,000.00
102.80
Housing Material Acquisition
60,000.00
411.18
60,000.00
411.18
P165,000.00
P1,130.75
Loan Package
Loan Term
25 years
Interest
6%
P120,000.00
P822.36
22nd SHDA-HUDCC National Developers Convention (26-27 September 2013)
THE LOCALIZED COMMUNITY MORTGAGE PROGRAM (LCMP) A derivative of CMP wherein SHFC enables partner LGUs to implement shelter projects by: Financing 75% - 90% of total project cost (LGU equity maybe: land, site development or cash financing)
Accrediting and capacitating LGUs to perform pretakeout functions of SHFC under the CMP
22nd SHDA-HUDCC National Developers Convention (26-27 September 2013)
THE EXPRESS LANE PROGRAM Offers immediate financing to purchase land for victims of eviction, demolition and disaster and those threatened therewith Loan amount, loan term and interest rate is based on the regular CMP Guidelines (25 years at 6%) CMP documentary requirements are not immediately required, a guaranty* from an NGO, LGU, NGA or any private individual is required to ensure complete submission of the deferred documents within 1 year from date of take-out. *May be in the form of cash, escrow account, time deposits and savings, stocks and securities 22nd SHDA-HUDCC National Developers Convention (26-27 September 2013)
THE ABOT KAYA PABAHAY FUND DEVELOPMENTAL LOAN (AKPF-DL) ď ą Provides low-income families in key urban areas affordable houses by financing site development/improvements and house/building construction for CMP, LCMP and HDH projects Loan Amount
(a) P15 million for projects covered by CMP and LCMP; (b) P75 million for projects under the HDH Program.
Loan Term
Thirty six (36) months after each drawdown but shall have earlier maturity based on project feasibility and the availability of the take-out window
Interest
6%
22nd SHDA-HUDCC National Developers Convention (26-27 September 2013)
THE HIGH DENSITY HOUSING (HDH) PROGRAM SHFC (along with NHA, DSWD and LGUs) was identified as an implementing agency of the P50 Billion ISF Housing Program Fund. Financing assistance to organized communities living in danger areas and waterways in NCR; provides in-city, near city or near site housing relocations (multi-storey buildings).
Adopts CMP’s “Community creating People’s Plan
Driven
Approach”
in
Loan ceiling is P400,000.00/beneficiary family at 4.5% for 30 years
THE HIGH DENSITY HOUSING (HDH) PROGRAM Loan Purpose
(1) Building Only (2) Building with Land
Loan Entitlement
Maximum of P400,000 .00 per family
Interest Rate Repayment Scheme
4.5% for a maximum loan term of 30 years Graduated amortization with a yearly increment of 10%. Fixed monthly amortization will start on the 11th month Monthly Amortization (PhP)
Loan (PHP)
250,000.00
300,000.00
350,000.00
400,000.00
1st Year
609.58
731.50
853.42
975.33
2nd Year
670.54
804.65
938.76
1,072.86
3rd Year
737.60
885.11
1,032.63
1,180.15
4th Year
811.35
973.62
1,135.89
1,298.16
5th Year
892.49
1,070.99
1,249.48
1,427.98
6th Year
981.74
1,178.08
1,374.43
1,570.78
7th Year
1,079.93
1,295.89
1,511.87
1,727.86
8th Year
1,187.90
1,425.48
1,663.06
1,900.64
9th Year
1,306.69
1,568.03
1,829.37
2,090.70
10th year
1,437.36
1,724.83
2,012.30
2,299.77
11th year (level point)
1,581.10
1,897.31
2,213.53
2,529.75
FUND SOURCES GENERAL APPROPRIATIONS ACT (GAA) – Balance of CISFA For the period 2005 to June 2013, CISFA releases to SHFC amounted to P4.764B. SHFC has paid out a total of P5.019B, showing a negative balance (255M) and indicating that SHFC currently operates under INTERNALLY GENERATED funds (collections) COLLECTION for the period Jan to Jun 2013 is P298.5M.
DBM has approved a total of P3.6B for implementation of six (6) HDH projects in 2014
the
22nd SHDA-HUDCC National Developers Convention (26-27 September 2013)
FUND SOURCES PROPOSED BOND FLOATATION SHFC has firmed up bond features and has secured the necessary approvals for its issuance and inclusion in the HLURB Guidelines as alternative compliance to BP 220. This is expected to generate P1.4B to P2B of additional funds for SHFC SALE OF AKPF NON-PERFORMING LOANS (NPLs) SHFC has published Notice of Sale for 12 AKPF properties, 4* of which have already been sold (P78.9M). The remaining 8** projects have a total offered price of P135.5M Location of the Properties *Pampanga, Tarlac, Isabela, Bulacan
**Nueva Vizcaya, Nueva Ecija, Laguna, Tarlac, Bataan, Lanao Del Sur
22nd SHDA-HUDCC National Developers Convention (26-27 September 2013)
THANK YOU
22nd SHDA-HUDCC National Developers Convention (26-27 September 2013)