QuestionsQuestions (Republic Act No. 6846)
The official title is the Abot-Kaya Pabahay Fund, otherwise known as the Social Housing Support Fund Act.
The government policy is to promote the national shelter program and implement a continuing social housing program that provides affordable houses and/or lots to low-income families across the fourteen regions of the Philippines by establishing a financial support system.
The Fund is constituted with an amount of Two billion five hundred million pesos (P2,500,000,000.00), appropriated over five years with a continuing yearly appropriation of Five hundred million pesos (P500,000,000.00) annually from the National Government.
The Fund is exclusively used for enhancing affordability of low-cost housing for low-income families, providing developmental financing for low-cost housing projects, and eliminating risks for funding agencies involved in housing, such as SSS, GSIS, and HDMF.
The National Home Mortgage and Finance Corporation (NHMFC) and the Home Insurance and Guaranty Corporation (HIGC) are the administering agencies and trustees of the Fund.
A borrower must have a qualifying gross family income, not be a recidivist or habitual offender involving moral turpitude, and not have been a homeowner or beneficiary of any housing loan or unit from any agency for the past five years.
Level A borrowers earn not more than P4,000/month and are entitled to monthly amortization support ranging from 35% to 14% depending on the amortization period. Level B borrowers earn not more than P5,000/month with loans above P80,000 up to P100,000 and receive amortization support from 25% decreasing to 7% over the first five years.
Developmental financing provides loans of up to 80% of the project cost to proponents of low-cost housing projects priced up to P60,000 to make housing available exclusively for Level A borrowers.
Loans not exceeding P150,000 at interest rates not exceeding 12% per annum originated by funding agencies or accredited financial institutions are assigned to the Fund, which issues promissory notes guaranteed by the Republic of the Philippines to support cashflow.
The Fund's administrative and development costs shall not exceed one percent (1%) of the net Fund assets of the previous year.
The NHMFC and HIGC must submit annual reports to the President and Congress, quarterly detailed reports to Congress including a list of beneficiaries, and make information available to the public regarding operations and performance.
The Act took effect upon its approval on January 24, 1990, and after its publication in at least two national newspapers of general circulation.