Question & AnswerQ&A (Republic Act No. 8763)
The official title of Republic Act No. 8763 is the "Home Guaranty Corporation Act of 2000."
The declared policy of the State is to undertake, in cooperation with the private sector, a continuing nationwide housing program that makes available affordable, decent housing, and to support housing production and finance as catalysts of economic growth.
The Home Insurance and Guaranty Corporation is renamed as the Home Guaranty Corporation.
Objectives include ensuring continuous funding for housing programs, enhancing low-income groups' capability to acquire housing, promoting a strong housing finance program, increasing private sector participation, and institutionalizing aided self-help homeownership.
The Corporation has powers to promote homebuilding, guarantee mortgages and loans for residential purposes, assist private developers, develop a secondary mortgage market, underwrite securities, borrow money with government approval, promote aided self-help housing, and acquire and dispose of properties.
The authorized capital stock is Fifty billion pesos (P50,000,000,000), divided into fifty million shares of common stock with a par value of One thousand pesos (P1,000) per share.
At least 40% for socialized housing, 30% for low-cost housing, 20% for medium-cost housing, and not more than 10% for open housing, distributed equitably among all regions to the extent practicable.
The Board has seven members: the Secretary of the Department of Finance (Chairman), Chairman of HUDCC (Vice Chairman), Director General of NEDA, President of the Corporation, and three members appointed by the President of the Philippines with expertise and integrity.
Obligations must meet loan-to-production cost or appraised value limits depending on housing type, be secured by a first lien on real estate or rights in rem, be intended for residential purposes, have amortization provisions, maturity not exceeding 30 years, and meet other terms set by the Corporation.
Penalties include fines at least equal to the loan amount, imprisonment for not more than ten years, or both, for acts like making false statements, forging documents, overvaluing security, or circulating untrue information derogatory to the Corporation's financial condition.
The Corporation guarantees interest up to eleven percent (11%) per annum for socialized housing packages.
The Republic fully and unconditionally guarantees the payment of principal and interest of bonds and obligations issued by the Corporation and the guaranty obligations incurred, subject to limits prescribed by the Act.
Government and private financial institutions are authorized to invest funds and participate in loans and mortgage obligations guaranteed by the Corporation.
The Housing and Land Use Regulatory Board (HLURB) has jurisdiction over homeowners’ associations.