QuestionsQuestions (SHFC CORPORATE CIRCULAR HDH NO. 14-004)
It formulates implementing rules to prescribe and clarify the accreditation of SHFC Civil Society Organization (CSO) Partners for the High Density (HDH) Program.
Accreditation is the process of granting official authorization to an organization/group that meets the standards of the HDH Program.
Among others: (1) must be a registered stock/non-stock corporation; (2) must have no unfavorable records with SHFC or other key shelter agencies; (3) at least 2 years experience in community development/organizing work certified by NAPC or PCUP; (4) physical and financial capacity; (5) well-defined organizational structure with shelter development/community organizing experience by principal officers; (6) good record assisting community associations (e.g., satisfactory collection efficiency, no projects in litigation/foreclosure); and (7) no violations under Section 6 unless suspension is lifted.
The CSO Partner must be accredited prior to the submission of the application for loan under HDH financing.
It must assist in building governance structures; developing People’s Plans and preparing technical/legal/financial requirements; assisting selection of contractor/developer; building technical capacities/partnerships; conducting participatory technical workshops; preparing socio-economic uplift plans/programs; and preparing/submitting loan documents.
Facilitate linkage with technical resource persons; capacitate community association to monitor schedule/work plan/cost/specifications; assist preparation/acceptance of contractor/developer reports and Statements of Work Accomplishment (SWA); ensure community participation (community builders program); and regularly update the community association for transparency.
Capacitates the community association in estate and financial management policies; facilitates formation of estate management committees (e.g., sanitation, peace and order, finance); ensures responsibilities are understood through regular meetings and performance review; and assists collection/monthly amortization remittances to SHFC.
Performance is reviewed every three (3) years, and SHFC evaluates: number of completed and occupied projects; collection efficiency rate; performance of Section 4 functions; existing valid complaints; pending cases before SHFC committees/units; and other criteria SHFC may require.
Accreditation is predicated on integrity; SHFC expects integrity at all times and may act on complaints (including from community associations) with substantial basis, following due process through a committee.
Sanctions include suspension and disqualification. The maximum period of suspension is six (6) months, depending on gravity and mitigating/aggravating circumstances as determined by the committee.
Examples include: commission of fraudulent acts and submission of spurious documents/statements; misrepresentation and withholding information affecting approval of the project; abandonment of the community association without formal termination of contract; and using the HDH Program to pursue the CSO’s own business interests.
Bad track record in assisting community association (e.g., failing collection efficiency rating or substantial number of projects in litigation/foreclosure) leads to suspension; directly negotiating with the landowner regarding purchase price leads to suspension.
A CSO Partner suspended for offenses with suspension sanction may continue to submit new projects upon rectifying/correcting the cause of suspension. If disqualified or if a third violation occurs after suspension twice, disqualification from the HDH Program applies (with an exception for CER-failure suspensions).
The third-violation disqualification rule should not apply to CSO Partners suspended due to CER failure.
The Accreditation Team for the Community Mortgage Program/Localized Community Mortgage Program is also responsible for accreditation of CSO Partners for HDH projects.
For example: (a) duly accomplished application letter; (b) duly accomplished CSO Partner Information Sheet; (c) SEC/CDA certificate of registration, Articles/By-Laws; (d) notarized board resolution/secretary’s certificate re: community coordinating activities; (e) list/description/status of on-going and/or completed programs in CMP; (f) housing or social development projects showing experience (with dates/references); (g) organizational structure; (h) annual audited financial statements for last two years; and (i) MOA between SHFC and CSO Partner.
The IRR applies prospectively, but CSO partners of approved projects for lot acquisition must apply for accreditation for site development and/or building construction phase, ensuring coverage across project stages.
It becomes effective immediately upon publication by posting on the SHFC website.