Cut interest for housing: Councilor

A MOVE that seeks to reduce the yearly interest rate for Cebu City’s socialized housing beneficiaries is being pushed at the City Council.

Councilor Alvin Dizon has filed a proposal to lower the nine percent interest rate to six percent per annum.

The move is expected to benefit an estimated 5,000 urban poor families of the city, the councilor said.

In his proposed legislation, Dizon, chairperson of the council’s committee on housing, said the reduction of the interest rate will cover all beneficiaries of the City’ socialized housing program.

The move enjoys the support of the Cebu City Local Housing Board.

Condonation

In June 2012, Dizon said the council approved City Ordinance (CO) 2329 or the ordinance amending CO 1998, otherwise known as the Cebu City Housing Loan Restructuring and Penalty Condonation Ordinance of 2004.

The amendment lowered the interest rate under the City’s socialized housing program from nine percent to six percent in order to make it easier for the urban poor families to fully pay the amortization of their home lots.

However, Dizon said the privilege was granted only to the socialized housing beneficiaries who applied for the restructuring and condonation of their loans.

Beneficiaries

Because of this, Dizon filed another measure that seeks to apply the lowered interest rate to all socialized housing beneficiaries of the city.

u201cThere is a need to impose the six percent interest rate to all socialized housing beneficiaries especially since there are beneficiaries who have not applied for the restructuring and condonation of their loans,” he said.

Contracts

He said there are also socialized housing beneficiaries who still have to start paying the City because they don’t have contracts yet or their contracts have just expired.

u201cIn view with the thrust of the City Government to provide adequate, affordable and decent housing, the imposition of a six percent interest rate would be most beneficial to the socialized housing beneficiaries,” said Dizon.

During their regular session last week, Dizon’s proposal was referred to the committee on laws and ordinances headed by Councilor Sisinio Andales for report and recommendations.

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