Question & AnswerQ&A (Republic Act No. 8501)
The short title of Republic Act No. 8501 is the "Housing Loan Condonation Act of 1998."
It aims to rescue the National Shelter Program of the Government by condoning penalties on all outstanding or delinquent housing loan accounts with government institutions involved in the National Shelter Program and amending Presidential Decree No. 1752.
The covered institutions and agencies include the Government Service Insurance System (GSIS), Social Security System (SSS), Home Development Mutual Fund (Pag-ibig Fund), National Home Mortgage Finance Corporation (NHMFC), and the National Housing Authority (NHA).
All unpaid penalties on housing loans from government institutions involved in the National Shelter Program are condoned, provided that all due and demandable arrearages composed of principal and interest are restructured and paid within the remaining loan period.
No, a borrower must not have availed of any previous condonation program from any government institution or agency involved in the National Shelter Program to benefit again under this Act.
Only the penalties corresponding to the portion of the arrearages paid shall be condoned.
The Home Development Mutual Fund is granted the power to condone, in whole or in part, penalties imposed on loans of members who for justifiable reasons failed to pay obligations on time, subject to specific conditions.
The conditions include: (1) a member-borrower may apply only once for condonation, (2) the loan must be in arrears for at least two years, and (3) the annual total family income must not exceed Three Hundred Thousand pesos (P300,000.00).
Yes, Section 4 states that the Act applies to borrowers who failed or refused to pay monthly amortizations due to structurally defective or substandard housing units or neighborhoods lacking basic amenities as required by law.
The Act shall take effect fifteen (15) days after its complete publication in the Official Gazette or in at least two national newspapers of general circulation.
They are required to promulgate implementing rules and regulations within sixty (60) days after the effectivity of the Act.
All laws, executive orders, rules, or regulations inconsistent with any provision of this Act are repealed or modified accordingly.