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COVERAGE

These guidelines shall cover the development and construction of low cost housing units in Metro Manila and highly urbanized cities, and socialized housing units in the provinces by Pag-IBIG Fund.

OBJECTIVES

1. To provide low-cost and socialized house and lot packages/condominium units either for rent or for sale to low income Pag-IBIG members who cannot afford the housing packages available in the market.
2. To enable Pag-IBIG Fund to perform its mandate by using its funds to provide decent and affordable condominium units as well as house and lot packages for sale to eligible Pag-IBIG Fund members nationwide.
3. To stimulate competition that will bring about better housing packages in terms of price and development that will redound to the benefit not only of Pag-IBIG Fund members but also of the public in general.
4. To help solve the housing backlog by generating further demand for housing through the provision of affordable condominium units and house and lot packages.
5. To equitably distribute nationwide economic opportunities generated from housing production, and in the process, stimulate stability brought about by economic development.
6. To provide an opportunity for Local Government Units (LGUs) to comply with R.A. 7279 by identifying and providing land for socialized housing.
7. To simplify and facilitate the processing of end-user financing for eligible Pag-IBIG Fund members, given that the projects are owned by Pag-IBIG Fund.
8. To develop further sense of ownership, pride and confidence among members of the Fund, knowing fully well that the projects being constructed are direct investments made from their savings with the institution.
9. To generate more membership to Pag-IBIG Fund.
10. To develop and dispose acquired properties of the Fund.

PROGRAM DESCRIPTION

The Program seeks to mobilize the funds of Pag-IBIG into the development of Pag-IBIG Homes by constructing low-cost and socialized house and lot packages/condominium units to be sold to its eligible members nationwide. To be implemented initially in Metro Manila, the program shall strengthen the position of Pag-IBIG Fund as the leader in the housing industry by not just providing developers with loans and other Wholesale Lending facilities, but by being a direct participant in the development and construction of affordable residential projects for its members. Whereas at present, the Fund depends on applications for developmental loans and its other Wholesale Lending facilities from developers in order to generate additional housing units for Pag-IBIG members, this program shall provide an effective tool for Management to control such situation. In the process, the Fund can establish a pro-active approach in achieving its targets, particularly on loan take-outs and income from the use of its funds.

Sites for the projects shall be approved by/acceptable to the Fund, preferably owned by LGUs or other government agencies in order to reduce the cost of the packages. Where lands cannot be provided for free, sharing arrangements shall be agreed upon. If, however, lands shall be provided for free, the concerned LGUs shall be given the privilege to initially identify project buyers provided that they shall qualify to avail of housing loans from Pag-IBIG Fund. The project, however, shall be opened to other beneficiaries later on.

Condominium units as well as house and lot packages generated from the project shall be sold to eligible members of Pag-IBIG Fund through housing loans that they shall obtain in accordance with the Fund’s existing guidelines on the take-out of mortgages. However, housing units or packages that remain unsold after six (6) months shall be offered for rent, subject to the terms and conditions acceptable to Pag-IBIG.

In cases where restrictions exist such that the parcel of land or property cannot be subdivided for purposes of sale to HDMF members, the said land or property shall nonetheless be developed as Pag-IBIG Homes/ Medium/High-Rise Buildings under usufruct agreements between the landowner and Pag-IBIG Fund. Once the property has been developed, the member-beneficiaries shall in turn enjoy usufructuary rights over the units, subject however to the terms and conditions as provided therein. Finally, where there are acquired assets of the Fund that can be made available, such properties shall likewise be used on condition that all lands developed under the Program shall satisfy the standards as provided in Section E.2 herein.

A contractor selected after a bidding has been conducted for the purpose, and following HDMF standards shall undertake design, development, and construction of the project. Qualifications of contractor/s are likewise prescribed. Payment to the contractor shall be based on actual progress accomplishment, subject to existing rules and regulations and in accordance with the Construction/Development Agreement with Pag-IBIG Fund.

THE PROJECT

All projects developed and constructed under this program shall be called Pag-IBIG Homes. Said projects shall conform with the standards provided and must have the following general specifications:

1. For MHRBs, the project must be a medium/high-rise residential building with a minimum floor area of 30 square meters per unit. In the case of subdivision projects, the designs shall be subject to the approval of the Fund.
2. The project site must be characterized by the availability of basic socio-economic institutions such as government centers, churches, hospitals/health centers, schools, public markets and commercial establishments found within a five-kilometer radius, and must be accessible to public transport.
3. The selling price of the low-cost house and lot packages/condominium units in Metro Manila and those highly urbanized cities shall not exceed P500,000. In the provinces, the socialized house and lot packages shall not exceed P150,000.00.

Housing units or packages that remains unsold after 6 months will be made available for rent. Interested members would be required to apply under the Rent-to-Own (RTO) Program, subject to the guidelines of the program prevailing at the time of application.

4. As much as possible, land for the project/s shall be government lands that have already been zoned and declared as residential, and can be developed either for sale to Pag-IBIG Fund members, or under usufructuary agreements. The Fund, however, shall observe the following order of priority in the use of lands for the development of Pag-IBIG Homes projects:


1. HDMF acquired assets.
2. Government lands that may be provided for free, and conveyable by way of sale provided that these satisfy the standards provided in Section E.2 hereof. In case the property is owned by an LGU, the local government can support the undertaking by allowing the use of its equipment or personnel for the purpose of reducing the cost of the project.


5. An Estate Management Office (EMO) shall be established whenever practicable to perform not only on-site management of the project and its facilities but also for purposes of collection of monthly amortizations/rental. Fees to be paid by the homeowners for expenses such as security, utilities, electricity and water in the communal areas, as well as other community requirements shall be part of the monthly amortization/rental. The said costs, however, shall not be considered as part of the loan for purposes of determining the interest rates to be charged to the borrower.
6. Pag-IBIG Homes must provide for facilities in accordance with the minimum standards provided in P.D. 957 and/or B.P. 220.
7. Permits and licenses for purposes of sale of the units/packages to members, should there be any, shall be in the name of Pag-IBIG Fund.

CIVIL WORKS AND OTHER CONSULTANCY SERVICES

Procurement or availment of services requiring adequate technical expertise and financial capability to undertake the following shall be in accordance with E.O. 40, s. 2001, to list:

1. Advisory and review services;
2. Pre-investment or feasibility studies;
3. Design;
4. Construction supervision;
5. Management and related services; and
6. Other technical services or special studies

In accordance with Sec. 3 of the rules and regulations implementing E.O. 40, s. 2001, the Fund shall adopt the principles enumerated therein in the procurement or availment of civil works, consulting and other related services for the purpose of implementing the program, namely:

1. Eligibility checking of prospective bidders as specified in Sec. 16 and 17 of the IRR, E.O. 40, s. 2001;
2. The Lowest Calculated and Responsive Bid shall be use, as the criterion of award in the procurement of services for civil works, while the Highest Rated and Responsive Bid shall be adopted for consulting and other related services.
3. The budget to implement the program shall be approved, to be taken from the funds allocated for housing loan operations every year.
4. All criteria in the award for the procurement of services shall be part of the bidding documents not only as compliance with Sec. 3.1 d of the IRR of E.O. 40, s. 2001 but to address the Fund’s concerns as well, such as:


1. Project Feasibility
2. Return on Investment
3. Affordability to sectors not being served by developers, i.e. selling price of condominium units and house and lot packages shall not exceed P500,000.00 and P150,000.00 for Metro Manila and other highly urbanized cities and provinces, respectively.