Saturday, September 15, 2007 Lower penalties for delinquent housing recipients
A CEBU City Council committee endorsed the reduction of the fines for delinquent housing beneficiaries from one-fifths of one percent a day to one percent a month.
The committee on laws, however, said the proponents of the proposed resolution should also consider the fact that other delinquents have already paid their penalties computed using the old rate.
As of last May, there are some P280 million in delinquent housing loans, which accumulated fines of over P20 million.
Councilors Jose Daluz III and Richard Osmeña proposed to reduce the penalties of all beneficiaries who have entered into memorandum of agreements (MOA) for housing programs to encourage them to lessen the burden on the delinquent homeowners.
“There is no question that it would be to the best interest of the beneficiaries that the penalties be reduced... There is no question that the City can do this for the best interest of poor and landless inhabitants of the city,” the committee on laws members said.
“But if there were already some beneficiaries who paid the old penalty of one-fifths a day, are they entitled to receive the differences in the form of a penalty credit,” the councilors asked in the report they submitted to the council.
The committee on laws, ordinances, public accountability and good government reviewed Daluz’s and Osmeña’s resolution changing the fines on delinquent accounts under the socialized housing program of the City Government.
But before the resolution was proposed, there were already 31 homeowners’ association or member-beneficiaries of the City who enjoyed the reduced one percent a month penalty under a new MOA.
“The proposed resolution should also ‘ratify’ all the City Government had done or caused to be done under such new MOA to correct the defect,” the report read.
The proposed resolution will be tackled for final reading after the proponents clarify the observations the committee raised. (LCR)
