Housing projects for the people in the provinces shall be undertaken in each municipality and city by the Pabahay Handog sa Pilipino, Inc. through the Group Land Acquisition and Development (G.L.A.D.) Program of the Home Development Mutual Fund (HDMF) more popularly known as 'Pag-I.B.I.G.' which aims to provide financial assistance to organized groups of formally employed members for the acquisition and development of rawland or partially developed land, which shall serve as the site of their housing units. For this purpose, community associations are organized from among the members of the communities to qualify under the program and assist the association make this objective a reality for the members giving the opportunity to own a house and lot they can call their "own" and a legacy to give to their children.
 
 FINANCING MECHANISM
 
 FINANCING ASSISTANCE
 Financing assistance for land acquisition and site development shall be in the form of a direct loan to the community association.

LOAN PROCEEDS
The loan proceeds for land acquisition shall be released directly to the landowner/s while that for site development shall be paid to the developer/contractor engaged to undertake the development for the community association.
 
HOUSE CONSTRUCTION
Financial assistance for house construction shall be in accordance with guidelines on additional loan for house construction.
 
ELIGIBILITY REQUIREMENTS
The beneficiaries or project proponents must be organized into community associations, with a minimum of 30 members to a maximum of 250 members, duly registered with the proper agencies which will vest them with legal personality (e.g. the Securities and Exchange Commission (SEC) or the Cooperative Development Authority (CDA) and the Housing and Land Use Regulatory Board (HLURB).
 
 The community association must have been existing for at least six (6) months prior to loan application.
 
 The officers of the association must satisfy the following requirements:
 1. Must have a minimum term of office of at least two (2) years without prejudice to removal from office due to disciplinary action.
 2. Must have been regularly paying the dues under the group loan.
 3. Must have an updated account and in good credit standing.
 
 As members of the housing project must be active and formally employed members, eligible for loans under the existing guidelines of housing loan program at the time of loan availment.
 
 All members of the community association must also attend the seminar/workshop on the program.
    
 LOAN REQUIREMENTS:
 The community association must comply with the following :
  
 1. The land proposed for acquisition must be covered by an Original Certificate of Title (OCT) or Transfer Certificate of Title (TCT) free from lines and encumbrances.
 2. There must be an appraisal report certifying that the subject property is a rawland or partially developed land and indicating therein the appraised value of land.
 3. The subject property must be duly classified as residential per zoning classification of the town/city plans prior to June 15, 1988. Otherwise DAR conversion clearance must be presented.
 4. A written document must be drawn up clearly stating the commitment to sell on the part of the landowner/s and intent to buy on the part of the community association.
 5. The subdivision plan and development plans of the subject property are already approved by the concerned Local Government Unit (LGU) or by the Housing and Land Use Regulatory Board (HLURB).
 6. The community association must have already collected and deposited in a bank the required equity for land acquisition and land development as well as interest payments equivalent to three (3) months.
 7. The community association must engage the services of a qualified housing developer/contractor to undertake land development and to assist the community association in the process of individualizing the mother title and in the process of converting the group/association loan into individual lot purchase loans.
 8. There must be a written agreement duly concurred to by all the beneficiaries stating the following:
 8.1. The timetable for land development, to commence not later than six (6) months from date of initial loan release, and to be completed within two (2) years therefrom.
 8.2 The timetable for individualization of the mother title and conversion of the group/association loan into individual lot purchase loans, not to exceed two (2) years from date of initial loan release.
 8.3 The consent of individual beneficiaries to abide by the majority decision with regards to lot subdivision/allocation, choice of developer and physical development plans.
 8.4 Guidelines on the substitution/addition of beneficiaries and sanction against defaulting member-beneficiaries.
  
 LOAN TERMS :
 
 LOAN AMOUNT
 The total loan to the community association shall be the aggregate of the amounts extended to the individual member-beneficiaries.
 
 The member's loan entitlement per individual beneficiary shall be proportionate to his Pag-IBIG contributions (inclusive of the employer counterpart contributions) based on the following schedule:
 
 Membership Monthly Loan
  Category      Contribution                     Entitlement
 
 Pag-IBIG I            P100                  Up to               P   125,000
 Pag-IBIG II              200        Over P125,000    -      P   250,000
                              300         Over P 250,000   -      P   375,000
                              400         Over P 375,000   -      P   500,000
                              600         Over P 500,000   -      P   750,000
                              800         Over P 750,000   -      P1,000,000
                           1,000         Over P1,000,000 -      P1,250,000
                           1,200         Over P1,250,000 -      P1,500,000
                           1,400         Over P1,500,000 -      P1,750,000
                           1,600         Over P1,750,000 -      P2,000,000
 
 INTEREST RATES
 The interest rate on the total loan of the community association for land acquisition and site development shall be nine percent (9%) per annum. Once the loan share of the community association's member is converted into lot purchase loan, the interest rate shall be adjusted in accordance with the Consolidated Guidelines of the Housing Loan Program rates prevailing at the time of loan availment.
 
 Likewise, for projects up to house construction, the interest rate shall be based on the individual beneficiaries' total loam entitlements in accordance with the Consolidated Guidelines of the Housing Loan Program rates prevailing at the time of housing loan availment. This rate shall be charged once loan releases for house construction are effected.
  
 
 LOAN TO COLLATERAL RATIO
 The loan shall be secured by a First Real Estate Mortgage (REM) on the land itself and all improvements thereon. The loan amount shall not exceed ninety percent (90%) of the appraised value of the collateral.
 
 LOAN RELEASES
 Loan proceed for rawland acquisition shall be released in full subject to either the loan-to-collateral value ratio of ninety percent (90%), the actual need or the approved loan, whichever is lowest. Loan releases for land development, on the other hand, shall be made on staggered basis, based on the approved work schedule and work progress of the developer, not to exceed two (2) years from date of initial loan release.
 
 LOAN PAYMENTS
 The community association shall be responsible for the collection of loan payments from member-beneficiaries and the remittance of the same to fund while the loan is still considered as an obligation of the group. During this period, only the interest shall be paid, with the first payment due 30 days from the date of the initial loan release.
 
 The loan principal shall be paid by the proceeds of the conversion of the community association's share in the loan obligation of the community association's group loan into individual lot purchase loan. The member-beneficiary's share in the loan obligation of the community association is deemed paid once the title of the lot assigned to him is transferred to his name and the mortgage covering his lot purchase loan in annotated on the said title.
 
 Once individual Promissory Notes are executed, the member-beneficiaries themselves shall remit loan amortizations directly to the fund.
 
 Any member-beneficiary of the community association can fully pay anytime his share in the obligation of the community association (group loan) in cash or through lot purchase loan subject to the following:
 
 1) Land development is already completed and the mother title has been individualized.
 
 2) He has secured a clearance from the community association allowing him to fully pay his loan in cash or through lot purchase loan.
 
 3) His membership contribution is updated.
 
 In case of delinquent group loan accounts, the member-beneficiary shall also pay his corresponding share in the penalty and overdue interest obligations of the community association. If payment is through lot purchase loan, the member beneficiary shall pay the penalty and interest portfolio in cash.
 
 LOAN PERIOD
 The total loan amount granted to the community shall be paid within two (2) years from date of initial loan release.
 
 PROCESSING FEE
 A loan processing fee equivalent to P 100 per project beneficiary or P10,000.00 whichever is higher, shall be charged to the community association, to be paid as follows:
  * 7,000 upon filing of application (non-refundable); and
  * Balance upon loan approval.
 
 PENALTY CHARGES
 Failure to pay the loan obligation when due shall subject the community association to a penalty charge equivalent to 1/20 of 1% of any unpaid amount for each day of delay or 18% per annum.
 
 INSURANCE
 The community association shall be covered by a Group Mortgage Redemption Insurance (GMRI).
 
 In case of death of any member-beneficiary, his principal share in the loan obligation of the community association shall be paid by the GMRI claims proceeds.
 
 DEFAULT
 The community association shall be considered in default if it fails to complete land development and if it fails to convert the group's loan obligation to individual lot purchase loans within two (2) years from date of initial loan release.
 
 OTHER CONDITIONS
 a. The resulting per square meter cost of the community association's saleable
     lots must be significantly lower than the prevailing selling prices of similarly
     developed lots in the vicinity.
 
 b. Majority of the members of the community association must come from only
     one agency/company or employee-group.
 
 c. Structures to be erected in the project site may take the form of medium-rise
     buildings comprised of at least 16 units (four storeys with four units per
     floor), with a minimum floor area of 18 square meters per unit.
 
 EFFECTIVITY
 The amendments included herein shall take effect immediately and shall be applicable also to all outstanding group loans.

"The homeless make up a group that is still poorer than the poor; all of us need to help them. We are convinced that a house is much more than a simple roof over our head. The place where a person creates and lives out his or her life also serves to be found, in the same way, that person's deep identity and his relations with others."
                                                                    --- POPE JOHN PAUL II

       If you own a real estate property (with a minimum area of 1,500 sqm for highly urbanized areas; or minimum area of 1 hectare for rural areas) that you wish to develop into subdivision or housing project, you may participate in the Pabahay Handog sa Pilipino Program, please send email to [email protected] or call +63920-4259973.
        And if your property is classified as "Agricultural" in your Tax Declaration and needs to be converted to non-agricultural use (e.g. Residential Classification), Pabahay Handog sa Pilipino can help with DAR Conversion.
        People who have tried our program have discovered how wonderful it is to help the poor people acquire land to build their homes and get appropriate value for their property.

      We also welcome your inquiries, comments and suggestions. Please click 'Here'.