Guidelines on Pag-IBIG Developer Housing Program

Voluntary participation for accredited developers during the first six months from effectivity.
Post six months, coverage becomes mandatory.
Developers may still be subject to terms of previous Circulars Nos. 259, 287, and 298 during the voluntary period.

Pag-IBIG Fund accredits qualified developers.
Developer and Fund enter into a Memorandum of Agreement (MOA) with conditions including funding allocation, application processing, and documentation execution.
Developers pre-process and submit Pag-IBIG member-buyers' applications.
Fund approves eligible applications within 15 working days and issues Notice of Approval (valid for 90 days).
Developers can request advance borrower evaluation or inspection subject to filing fees.
Developer executes Deed of Absolute Sale (DOAS) to Fund; Fund executes Deed of Conditional Sale (DCS) to member-buyer.
Processing and transfer of titles to Fund's name are undertaken by the Developer.
Ensures buyback of accounts affected by breach of warranties.
Developers may also enter into Collection Servicing Agreement as collecting agents.

Annual accreditation based on:
- No blacklisting of key officers/shareholders.
- SEC/BDT registration as an authorized developer.
- Satisfactory financial standing supported by latest audited financial statements.
- Not listed in bank/financial institutions' Negative List.
Related real estate entities considered in evaluation and classification.

Funding allocation based on projected applications per project assessed annually.
Allocation valid from MOA signing to year-end; unutilized funds roll over quarterly but are forfeited after December.
Commitment fee of 0.5% on succeeding quarter's allocation if less than 80% utilization per quarter, refundable if targets met in next quarter.
Loan proceeds released within three working days upon submission of complete documents.
Additional allocation subject to performance, buyback obligations, available funds, and classification stability.

Validity and enforceability of submitted documents.
Lawful ownership of property free from liens or defects.
Compliance with development plans, building specifications, and local ordinances.
Solidary liability for construction defects for six months post-unit acceptance.
Delivery of units upon loan proceeds release with immediate occupant eligibility.
No acts of misrepresentation by developer or agents; liable for damages caused.
Compliance with all relevant laws and regulations.

Developer must buy back accounts affected by breach of warranties if not corrected in specified period.
Buyback value includes outstanding principal, unpaid interest, penalties plus 8.5% interest and daily delay penalties.
Payment options: direct payment or offsetting from takeout proceeds.
Developer can appeal buyback computation within 30 working days, suspending penalties during appeal.

Only eligible developers with collection infrastructure, internet access, and satisfactory finances may enter CSA.
Fund may reject or not renew CSA applications.
CSA details developer's role as collecting agent for designated accounts.
Surety bond or acceptable security must be posted to guarantee remittance.
Monthly reporting and strict remittance schedules apply.
Collection Service Fee (CSF) paid based on collection performance with scaled incentives.
Penalties imposed for late remittances; sanctions include CSA cancellation, suspension of loan applications acceptance, or accreditation cancellation.
CSA valid for one year, renewable upon meeting performance and eligibility criteria.

All previous inconsistent memoranda and rules repealed except Circulars 259, 287, 298 which remain effective for six months.
Existing contracts prior to these guidelines remain unaffected.

Interpretation disputes resolved by Department Manager III or escalated to higher authority as necessary.

Senior Management Committee authorized to amend or update guidelines as needed consistent with program objectives and Fund's mandate.