Question & AnswerQ&A (EXECUTIVE ORDER NO. 272)
The primary purpose is to authorize the creation of the Social Housing Finance Corporation (SHFC) and direct the transfer of the Community Mortgage Program (CMP), Abot-Kaya Pabahay Fund Program (AKPF), and related social housing powers and functions from the National Home Mortgage Finance Corporation (NHMFC) to the SHFC.
The Constitution mandates the State to undertake a continuing program of urban land reform and housing to make available affordable, decent housing and basic services to underprivileged and homeless citizens in urban centers and resettlement areas.
The NHMFC was primarily tasked with developing and providing a secondary market for home mortgages granted by public and/or private home financing institutions, and administering the CMP and AKPF programs.
The SHFC is a wholly-owned subsidiary of the NHMFC, created to be the lead government agency focused on social housing programs, especially targeting the formal and informal low-income sectors and managing the CMP and AKPF programs.
The NHMFC is authorized to organize and establish the SHFC as a wholly-owned subsidiary, under the Corporation Code and SEC regulations, with the SHFC under the administrative supervision of the Housing and Urban Development Coordinating Council (HUDCC).
The Community Mortgage Program (CMP), the Abot-Kaya Pabahay Fund Program (AKPF) including its amortization support and developmental financing programs, and other social housing functions determined by the NHMFC Board.
The Board includes the HUDCC Chairman (ex-officio Chairman), SHFC President (ex-officio Vice Chairman), key Cabinet Secretaries or their representatives (Finance, Interior and Local Government, Budget and Management), a representative from the Bangko Sentral ng Pilipinas designated by the BSP Governor, a representative from the NHMFC designated by its Board, and four private sector representatives nominated by the President.
The SHFC is mandated to undertake social housing programs catering to low-income formal and informal sectors, develop and administer social housing schemes, specifically the CMP and AKPF programs.
The President of the Republic of the Philippines nominates the President of the SHFC.
During the transfer, NHMFC personnel currently performing the social housing functions shall continue their duties. They may remain with NHMFC, retire, or be separated, and are entitled to applicable benefits. The SHFC's position structure and staffing need approval from the Department of Budget and Management (DBM).
The Transfer Committee, composed of the HUDCC Chairman, NHMFC President, DBM representative, and two HUDCC representatives, is tasked to prepare plans and effect the transfer of assets, liabilities, and records of CMP and AKPF programs to SHFC within 30 days of the Executive Order's issuance.
Existing policies, guidelines, rules, and regulations remain in effect until amended or modified accordingly.
It took effect immediately upon issuance, January 20, 2004.