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Wednesday, October 29, 2003
Osmeña: Low-profile HGC can spur mass housing
By Antonio V. Osmeña
Estatements
PUSH LOANS. The Home Guaranty Corp. (HGC) plays a very important role in helping developers undertake low- and middle-income mass housing production.
It also plays a role in encouraging private institutional funds and commercial leaders to finance such housing developments and long-term mortgages through a viable system of guaranties, loan insurance and other fiscal incentives.
It is amazing how a government corporation like the HGC continues to maintain a low profile in spite of its P50-billion authorized capital stock, of which P7.5 billion has been subscribed and paid in cash by the Government of the Republic of the Philippines.
It is very clear that HGC’s mission is to mobilize resources to ensure the effective delivery of housing solutions through a system of credit insurance, mortgage guarantees and incentives. It is through the insurance/guarantee coverage that HGC promotes and encourages the flow of funds or credit into uses that bring about housing production.
Most commercial lenders are not aware of the role of HGC to administer and control the cash flow guarantee system for the Abot-Kaya Pabahay Fund, thereby providing incentives for the funders to allocate a bigger portion of their loanable funds to the lowest income groups by emoving the risk of default on the payment of the loans (Republic Act 6846, 1990).
Another interesting feature is for HGC to supervise and regulate the sale or transfer of securities covering any right or interest in real property, including a subdivision lot or condominium unit, and exempting such securities from registration with the Securities and Exchange Commission (Batas Pambansa 178, 1982).
URBAN POOR. With the HGC, Mayor Tom will find it easy to fund the proposed urban poor homes at the South Reclamation Project since commercial lenders are guaranteed of default payment. Once the urban poor homes are in place, HGC will register, regulate and supervise a homeowners association (Executive Order 535, 1979).
To those real estate developers of mass housing projects, HGC also encourages, aids or initiates the organization of building and loan associations. Although building and loan associations were a failure many decades ago, default in payment was the major culprit due to the absence then of guarantees. Cooperatives all over the country could promote home building and land ownership through aided self-help (Republic Act 580, 1956) by way of HGC assistance. Next week, I will discuss the programs and products HGC can offer real estate developers.
B. RODRIGUEZ ANARCHY. The Citom should install a fence starting from the entrance of V. Sotto Hospital to TB Pavilion road to prevent pedestrian crossing and illegal parking by taxis and jeepneys, whose drivers eat at food stalls along the road. These cause traffic snarls. Traffic flow turning left to Chong Hua Hospital must also be prohibited. Pedestrian lanes need to be clearly placed.
(October 29, 2003 issue)
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