QuestionsQuestions (HDMF CIRCULAR NO. 345)
The purpose is to set guidelines for the classification of developers and the grant of incentives. It aims to (1) encourage developers to provide housing inventory available for sale to Pag-IBIG member-buyers via Pag-IBIG housing loans, (2) recognize developers’ performance in dealings with the Fund, and (3) incentivize continuous delivery of quality housing loan accounts.
Optional for accredited developers for six (6) months from the date of effectivity. During this period, developers may still be evaluated under Circular No. 259. After six months, coverage becomes mandatory and incentives/classification follow Circular No. 345.
They are classified as either (1) Regular or (2) Prime.
Newly accredited developers are automatically classified as Regular Developers for the first quarter of their accreditation with Pag-IBIG Fund.
At least: (1) 95% Complete Documentation Compliance Ratio (CDCR), (2) 90% Unit Specifications Compliance Ratio (USCR), (3) Conversion Performance—at least 90% of due-for-conversion accounts already converted (with substantial compliance rules using proof of payment to BIR and City/Municipal Assessor, presentation of CAR, and subsequent proof to Registry of Deeds), (4) no accounts overdue for buyback, and (5) 85% Performing Accounts Ratio (PAR) where accounts taken out in last 24 months are not in arrears for more than three months at evaluation.
Prime requires higher thresholds: CDCR at least 95%, USCR at least 95%, Conversion Performance at least 95% of due-for-conversion accounts converted (same substantial compliance policy applies), no accounts overdue for buyback, and PAR at least 95% (accounts not in arrears for more than three months at evaluation).
If the developer submits proof of payment to the BIR (EWT and DST) and City/Municipal Assessor’s Office (transfer tax), they are deemed to have substantially complied. The original receipts must be presented for authentication. Within 30 working days, the developer must submit a copy of the Certificate Authorizing Registration (CAR). If CAR issuance is delayed by BIR, the developer must report affected accounts. Within 15 working days thereafter, submit proof of payment to the Registry of Deeds. Full conversion requires that TCT/CCT be transferred in the borrower’s name, real estate mortgage properly annotated, and titles returned to the Fund.
It shall be downgraded to and be subject to the terms and conditions of the lower classification.
No. While the developer’s accreditation is suspended for the quarter or until deficiencies are cured/corrected (whichever comes later), it does not preclude the Pag-IBIG member-buyer to file the application directly to Pag-IBIG Fund for purchase in the suspended developer’s subdivision/condominium project.
Performance is evaluated at the end of every quarter to determine eligibility to maintain classification, upgrade, or be downgraded.
A developer classified as Regular in the first quarter that meets the Prime criteria shall be upgraded and enjoy Prime benefits/incentives in the immediately succeeding quarter.
The Pag-IBIG Fund Housing Business Center with jurisdiction over the developer’s principal place of business evaluates accreditation and classification. However, the Business Development Sector evaluates and determines classification when the developer has a project in the National Capital Region (NCR), regardless of principal place of business.
If the developer has related real estate development company/ies, the performance of one related entity determines whether the application for accreditation and classification will be approved or not, and vice versa. “Related entities” include parent company and subsidiaries, and business entities engaged in real estate where the developer or any key officer is also a key officer or shareholder—whether or not they transact with the Fund.
Prime developers’ housing loan applications are prioritized in advance evaluation of borrowers and inspection of completed units. Developers must submit only the member-buyer’s accomplished Buyer’s Information Sheet, income documents, and proof of payment of the filing fee. Pag-IBIG issues CIR and BVS within five (5) working days if eligibility is met; CIR and BVS are valid for six months.
The Fund shall evaluate complete applications within six (6) working days from complete submission of the listed requirements, issue a Notice of Approval (NOA) for those meeting program guidelines, and release takeout proceeds within three (3) working days from receipt of the NOA by the developer.
Examples include: Buyer’s Information Sheet; Deed of Absolute Sale; Certificate Authorizing Registration; TCT/CCT in the proper name (developer/land owner for joint venture); Deed of Conditional Sale or Loan and Mortgage Agreement depending on title holder; Notarized Promissory Note; individual tax declaration(s); updated real estate tax receipt; Occupancy Permit; Certificate of Acceptance; Transfer Tax Receipt for lot and building (and Pag-IBIG may require additional/alternative documents).
They may engage Pag-IBIG-accredited service providers to (1) transfer title in the name of the Fund or member-buyer as applicable, and (2) register the Loan and Mortgage Agreement in the TCTs in the member-buyer’s name. Transfer/registration costs and service fees are deducted from takeout proceeds.
Effectivity is immediate. The repealing clause states that inconsistent issuances are repealed except Circular Nos. 259, 287, and 298, which continue to be in force for six (6) months from the effectivity of these guidelines.