CAGAYAN de Oro City Councilor Edgar Cabanlas is pushing for the increase of housing financial equity assistance from 10 percent to 20 percent, if only to give the poor more access to the city's housing programs.
Cabanlas, the chairperson of the committee on subdivision and landed estate and urban and rural poor committee, said this would address the problem on informal settlers.
Under the scheme, informal settlers can organize and buy the property they are illegally occupying.
The City Government can loan them an amount to pay at least 20 percent of the down payment that the property owner is asking.
The property will now become an onsite relocation.
"The urban poor organization will borrow from City Government through a special scheme to pay the down payment and secure ang deal made by the residents and the owner," Cabanlas said in his special report Monday.
He said the remaining 80 percent balance will be paid by the residents eventually, or they can choose to apply a loan from the Social Housing Finance Corporation, or other housing financial institutions.
Since the Magtajas administration, Cabanlas said the city has been granting a 10 percent financial equity to urban poor organizations as down payment of the property they plan to buy. But he said, this has not been effective.
"This is to give meaning to our intention to help the poor especially the urban poor," he said.
To avail this scheme, Cabanlas pointed out the city will set strict conditions, such as accreditation of the urban poor organization and the organization should be strong.
The matter was referred to the committee of finance and the committee of urban and rural poor and housing development for further study.
Cabanlas said he will strive to pursue the proposal which is his campaign promise.