Condonation of penalties on govt housing loans

All unpaid penalties on housing loans from government institutions and agencies involved in the National Shelter Program are condoned.
Institutions covered include the GSIS, SSS, Pag-ibig Fund, NHMFC, and NHA.
Preconditions for condonation:
- Principal and interest arrearages must be restructured and paid within the remaining loan period.
- Partial payment of arrearages allows condonation only for penalties proportional to the amount paid.
- Borrowers must not have received previous condonation from any government shelter program institution.
Penalties due to NHMFC funders on delinquent accounts are condoned to the extent paid by borrowers.

The Pag-ibig Fund is empowered to condone penalties on loans subject to conditions:
1. Borrower may only apply once for penalty condonation on the entire loan amount.
2. Loan must be at least two years in arrears.
3. Annual total family income must not exceed P300,000.
The Board has authority to condone penalties on employers who fail to remit employee contributions timely.
Board's powers include policy formulation, administration, expenditures approval, personnel appointments, and other necessary powers.

The Act extends to borrowers refusing or failing to pay amortizations due to structurally defective or substandard housing units.
Covers issues such as lack of basic amenities like water, electricity, drainage, and roads.

All government shelter program institutions must issue implementing rules and regulations within 60 days from the Act's effectivity.

Any laws, executive orders, rules or regulations inconsistent with this Act are repealed or modified accordingly.

The Act takes effect 15 days after publication in the Official Gazette or at least two national newspapers of general circulation.