QuestionsQuestions (OWWA MEMORANDUM OF INSTRUCTIONS NO. 033, s.1993)
The MOI is issued in response to a presidential pronouncement and pursuant to the policy direction of the Board of Trustees to improve existing benefits by creating implementing guidelines for an OWWA Housing Program for overseas contract workers (OCWs). Its purpose is to provide affordable shelters and socio-economic corollary components for reintegration and sustained productivity, implemented in collaboration with HDMF and other government institutions.
The general objective is to provide mechanisms to assist OCWs in acquiring housing units individually or in groups that may lead to an exclusive self-reliant OCW community.
The MOI states specific objectives: (1) provide affordable housing units in accordance with BP 220 design standards; (2) provide socio-economic corollary components (income-generating venues, educational facilities for children, and other amenities); and (3) provide other support services such as equity financing and marketing services.
Qualified OCWs must be beneficiaries/members of OWWA and, at the same time, members of HDMF, SSS, or GSIS.
The three strategies are: (1) full development of an exclusive housing village; (2) allocation of a certain percentage of existing housing packages to OCWs; and (3) forging agreements with various developers.
OWWA acts as marketing arm through OWWA Overseas Centers (information dissemination, referral, and market survey support), organizes OCW groups for registration with proper agencies, maintains inventory of available units (with HDMF coordination), extends equity financing, and acts as lead executing agency coordinating financial and marketing operations. It also certifies bona fide OWWA membership registration.
HDMF provides financial assistance for land acquisition and land development/new construction (or partially developed land and construction) under GLAD or Direct Development Loan Program; provides technical assistance to OWWA (market survey formulation, appraisal, evaluation of developer costing estimates, loan documentation, and technical requirements adhering to BP 220); and certifies bona fide HDMF membership registration.
The Accredited Developer prepares subdivision schemes and detailed architectural/engineering plans; undertakes land development and housing construction; ensures installation of basic utilities and services; maintains the project until turn-over; and secures necessary permits and clearances.
Because the MOI states that OWWA does not possess the capability to accredit developers and appraise land to be acquired; therefore, OWWA participates in HDMF’s pre-qualification and bidding processes to facilitate that part of the program.
The text provides requirements: member of the FILOW Program for at least 6 months; at least 12 monthly contributions; contributing member upon loan application; not more than 70 years old at loan maturity; legal capacity to enter into contracts and purchase real property under Philippine laws; and must not have availed housing loan except lot purchase with PAG-IBIG (principal or co-borrower).
Listed documents include: accomplished Pag-ibig Housing Loan Application with ID photo; ITR with W2 or employment contract/certification of salary range (for certain OCWs); Pag-ibig Premium Payment certificate for latest 12 months; marriage contract (if applicable); residence certificate; birth certificate; payslip; special power of attorney (if applicable); certificate of loan eligibility; collection servicing agreement; TIN; medical questionnaire for loans once P200,000; full medical examination for borrowers over 60; and other documents that HDMF may request.
The maximum loan term shall not exceed 25 years, and the borrower must not be more than 70 years old upon loan maturity.
Interest rates are: 9% p.a. for P150,000 and below; 12% p.a. for over P150,000–P225,000; 16% p.a. for over P225,000–P375,000; and 17% p.a. for over P375,000–P500,000.
Equity financing assists OCWs in paying the equity portion of the housing loan. Eligible borrowers are OCWs who applied housing loan with HDMF and made partial payments with accredited developers. The equity financing has a maximum term of 2 years and depends on actual equity requirement but must not exceed P100,000.
Equity financing bears an interest rate of 14% per annum. Security is via post-dated checks corresponding to monthly amortization due payable to OWWA covering the whole term; charges are filed for checks with insufficient funds.
The MOI requires the OCW to pay the interest of the equity financing from the date the check was issued until the whole amount has been returned to OWWA.
For equity financing: amortization payments commence one month after the equity financing is released; late payments carry a 2% monthly penalty charge; and default computation is based on existing HDMF guidelines (for the housing loan portion, the MOI references HDMF default basis/computation).
FILOW members earning below US$1,000 monthly may be entitled to a maximum loanable amount of P250,000, while those earning more than US$1,000 monthly may be entitled to a maximum loanable amount of P500,000 (note: the text contains a probable typographical error showing 'P500,000,000.00').
OWWA must send duly registered demand letters at least three times giving time to settle. If respondents deliberately fail to settle, OWWA’s legal officer files a case of estafa with the Fiscal’s Office by filing a sworn statement within 20 days after the third collection letter. The Fiscal’s Office furnishes the respondent for answer within 15 days, conducts preliminary investigation, and if probable cause exists, files with the RTC or MTC depending on amount (RTC if P20,000 or more; otherwise MTC).
If the respondent pays after preliminary investigation, the case closes automatically. If the respondent promises to pay within a period not exceeding one month and fails to comply, OWWA requires execution of a promissory note with a penalty clause and the case continues. If the respondent fails to pay despite promises, OWWA files a petition for issuance of a warrant of arrest with the proper court (MTC/RTC), furnishes copies of the warrant to PNP-CIS or NBI, and if the respondent absconds, publicizes in a newspaper to indicate whereabouts.