Thursday, February 07, 2008 Socialized housing penalties reduced
AFTER several delays, the Cebu City Council approved yesterday the reduction of the penalties on delinquent accounts under the City’s socialized housing program.
Instead of one-fifths of one percent per day, which amounts to six percent per month, the fine was reduced to one percent per month.
The approved resolution will only cover future housing beneficiaries and those covered by 31 existing memorandum of agreement (MOA) for housing projects that the City Government previously entered into.
Proponents
Councilor Jose Daluz III, one of the proponents of the resolution, said they were constrained to pass the measure after learning that the Division for the Welfare of the Urban Poor (DWUP unilaterally reduced the charges.
With a monthly surcharge of one-fifths of one percent per day, the beneficiaries ended up paying more for penalties than for the principal amount for the mortgage.
“DWUP changed it on their own when in fact, it’s only the council that can authorize changes in the penalties. Nasipyat pa gyud sila sa (They erred in pegging the) new rates, that is why we had to pass this resolution. Otherwise, luoy gyud ang mga beneficiaries kay dagko kaayo ang penalties (They are at a disadvantage because the penalties are very high),” he told Sun.Star Cebu.
The resolution was first presented to the council sometime in the middle of 2007 yet but the approval was deferred several times because it did not have the endorsement of the local housing board.
In the original draft, Councilors Daluz and Richard Osmeña also proposed to reduce surcharges of beneficiaries covered by all existing MOAs, which some councilors were opposed to.
The committee on laws sought to amend the resolution, since there may have already been beneficiaries who paid the old penalty of one-fifths of one percent per day.
“There may be a possibility that they will claim the difference in the form of a penalty charge credit and this might require the City to pay them the difference,” the committee members said.
Last month, Vice Mayor Michael Rama also called for further review of the resolution, fearing the City would lose projected income if it reduces the charges. (LCR)
