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The government hopes to give more poor families access to affordable shelter through the “localized” version of the highly successful Community Mortgage Program (CMP), to be implemented starting this year.

Under the CMP, informal settler families, slum dwellers or residents of blighted areas can avail of loans to purchase privately-owned land for housing purposes by organizing themselves into community association, with a non-government organization (NGO) or their local government acting as loan originator.

“The CMP is designed to engage LGUs more in social housing in order to leverage greater funds for poor communities by combining their resources with that of SHFC. This will also promote better planning and implementation of local housing programs,” he stated.

With the localized program, the SHFC will initially grant the local government units an Omnibus Commitment Line of up to P50 million for priority projects identified in its Comprehensive Shelter Plan and Comprehensive Land Use Plan. The LGU shall put up 25% of the total project cost as equity.

The requested amount will be released by SHFC to the LGU at 5% per annum, to be relent to the community association at 6% per annum. The LGU will pay the amortization directly to the SHFC.

“We have already identified possible pilot LUGs for the LCMP and we will begin consultations with them before the end of January,” de Castro said.