Title
IRR for SHFC CSO Accreditation in HDH Program
Law
Shfc Corporate Circular Hdh No. 14-004
Decision Date
Mar 31, 2014
The Social Housing Finance Corporation establishes guidelines for the accreditation of Civil Society Organization partners in the High Density Housing Program, outlining qualifications, functions, and performance evaluation criteria to ensure effective community development and project management.
accreditation
civil society
high density

Purpose and intent

  • The guidelines are formulated to prescribe and clarify the accreditation of Social Housing Finance Corporation (SHFC) CSO Partners in the HDH Program.
  • Accreditation is treated as an authorization process that depends on meeting program standards for CSO partners.

Definitions and core terms

  • Accreditation refers to the process of giving official authorization to an organization/group whose qualifications meet the HDH Program standards.
  • Civil Society Organization (CSO) refers to people’s organizations (POs) or non-government organizations (NGOs) whose principal role under the HDH Program is to assist the community association (Cooperative/Homeowners Association (HOA)) in its organization, completion of the project, and other post-occupancy activities.
  • Service Fee refers to a fee paid by SHFC to the CSO Partner for services rendered in functions under Section 4 (a) to (c).

Qualifications and eligibility for CSO accreditation

  • A CSO Partner must be accredited as an HDH Partner by acquiring all the following qualifications:
    • It must be a stock or non-stock corporation duly registered with the appropriate government agencies.
    • It must have no unfavorable records with SHFC or any other Key Shelter Agencies (KSA).
    • It must have at least two (2) years experience as an organization in community development and organizing work, certified by National Anti-Poverty Commission (NAPC) or Presidential Commission for the Urban Poor (PCUP).
    • It must have physical and financial capabilities to undertake responsibly the functions stated in Section 4, with documentary support tied to requirements under Section 8 (e), (f), (g) and (h).
    • It must have a well-defined organizational structure showing clear delineation of functions and management hierarchy, and one or more principal officers must have been engaged in shelter development/community housing programs and community organizing work.
    • It must have a good record in assisting community association performance, including satisfactory collection efficiency rating and absence of projects in litigation or foreclosure.
    • It must not have committed any violations enumerated in Section 6, unless the imposed sanction of suspension has been lifted.
  • An accredited CMP-Mobilizer shall be accredited anew for HDH, subject to review of performance by the Accreditation Team.
  • A CSO Partner must be accredited prior to the submission of the application for loan under HDH financing.

Functions required of accredited CSO partners

  • The accredited CSO Partner must perform functions in the three phases below:

    A. Community Organizing and Loan Documentation Phase

    • It must assist in developing the community association governance structure by acting as an adviser/consultant to develop mechanisms that empower the community to make decisions and to oversee and decide aspects of the project’s feasibility.
    • It must assist in developing People’s Plans and preparing technical, legal, and financial requirements.
    • It must assist the community association in the selection of the Contractor/Developer.
    • It must help develop technical capacities of the community association or create partnerships with organizations that have technical capacities.
    • It must conduct participatory technical workshops for site development planning and house design.
    • It must prepare plans and programs/projects to uplift the socio-economic status of members.
    • It must prepare and submit the loan documents.

    B. Construction Phase

    • It must facilitate linkage between a technical resource person and the community to capacitate members to participate in the construction phase.
    • It must capacitate the community association to monitor the project’s schedule/work plan, cost estimate, and project specification effectively.
    • It must assist in preparation and acceptance of reports and Statements of Work Accomplishment (SWA) of the contractor/developer.
    • It must ensure community participation in the construction phase through the community builders program.
    • It must regularly update the community association on developments of the project to promote transparency.

    C. Post Occupancy Phase

    • It must capacitate the community association in implementing community policies on estate and financial management.
    • It must facilitate the formation of community association committees for estate management, including but not limited to Sanitation Committee, Peace and Order Committee, and Committee on Finance.
    • It must ensure the community association is fully aware of its responsibilities in estate management by conducting regular meetings and performance review.
    • It must assist the community association in collecting or conducting monthly amortization for remittance to SHFC.

Accreditation review and performance checks

  • The CSO Partner’s performance must be reviewed for renewal every three (3) years.
  • In reviewing performance for renewal, SHFC evaluates:
    • The number of projects completed and actually occupied by community association member-beneficiaries.
    • The collection efficiency rate of the projects.
    • Performance of the functions enumerated in Section 4.
    • Existing valid complaints from community associations, if any.
    • Existing pending case before the appropriate SHFC Committee/Unit, if any.
    • Such other criteria as may be required.

Sanctions, due process, and consequences

  • Accreditation depends on integrity, and SHFC expects integrity to govern CSO Partner activities at all times.

  • SHFC must act on a complaint filed by a community association against the CSO Partner when there is substantial basis for the complaint.

  • SHFC may act on complaints from other parties pertaining to offenses listed in Section 6.

  • In acting on complaints and imposing sanctions, SHFC must create a Committee guided by the principles of due process.

  • The maximum period of suspension is six (6) months, imposed depending on the gravity of the violation and the presence or absence of justifying, mitigating, or aggravating circumstances as determined by the Committee.

  • The following violations and sanctions apply:

    • Bad track record in assisting community association (including failing collection efficiency rating, substantial number of projects in litigation or foreclosure): Suspension.
    • Directly negotiating with the landowner regarding purchase price of the property: Suspension.
    • Commission of fraudulent act and submission of spurious documents/statements: Disqualification.
    • Misrepresentation and withholding of information that affects the approval of the project: Disqualification.
    • Cases of abandonment of the community association with no formal termination of contract: Disqualification.
    • Using HDH Program to pursue his/her own business interests: Disqualification.

  • A CSO Partner that is sanctioned with suspension must be suspended for committing offenses carrying suspension sanction, and once the cause of suspension is rectified or corrected, the CSO Partner is allowed to continue to submit new projects.

  • A CSO Partner that is sanctioned with disqualification is disqualified to participate in the HDH Program.

  • A CSO Partner that has a third violation and has been suspended twice is disqualified from participating in the HDH Program.

  • The rule on third violation and after being suspended twice should not be applied to a CSO Partner suspended due to CER failure.

Responsible entity for CSO accreditation

  • The Accreditation Team for Community Mortgage Program/Localized Community Mortgage Program is responsible for the accreditation of CSO Partners for HDH Projects.

Required documents and filings

  • A CSO application must submit:
    • A duly accomplished application letter.
    • A duly accomplished CSO Partner Information Sheet.
    • SEC/CDA Certificate of Registration, Articles of Incorporation/Cooperation, and By-Laws.
    • A Notarized Board Resolution or Secretary’s Certificate regarding community coordinating activities on the project.
    • A list, description and status of on-going and/or completed programs in CMP.
    • Housing or social development projects showing experience in community development and organizing work, including dates and references.
    • Organizational structure, including the functional chart of officers and staff.
    • Annual audited financial statements for the last two years.
    • A Memorandum of Agreement (MOA) between SHFC and the CSO Partner.
    • Other requirements that may be deemed necessary.
  • For an accredited CMP-Mobilizer applying as an HDH CSO Partner, the Accreditation Team requires submission of updated documents, if necessary.

Transitory rule for existing projects and effect

  • The IRR applies prospectively.
  • CSO partners of approved projects for lot acquisition must apply for accreditation for site development and/or building construction phase.

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