Creation and Role of the NHMFC
- The National Home Mortgage Finance Corporation (NHMFC) was created under Presidential Decree No. 1267.
- Its primary role is to develop and provide a secondary market for home mortgages from public and private institutions.
Social Housing Support Funds and Administration
- Republic Act No. 6846 created the Abot-Kaya Pabahay Fund (AKPF) aimed at supporting low-cost housing projects by low-income families.
- NHMFC acts as trustee and administrator of the AKPF's amortization support and developmental financing programs.
Community Mortgage Program
- Established under Republic Act No. 7279, the Community Mortgage Program (CMP) assists organized associations of underprivileged citizens to purchase and develop land.
- It promotes community ownership of lots occupied or relocated to by beneficiaries.
- NHMFC is designated as the CMP administrator.
Establishment of the Social Housing Finance Corporation (SHFC)
- The SHFC is authorized as a wholly-owned NHMFC subsidiary, created per the Corporation Code and SEC regulations.
- SHFC takes over social housing functions, including administration and management of CMP and AKPF programs.
- SHFC operates under the administrative supervision of the Housing and Urban Development Coordinating Council (HUDCC).
Mandate of SHFC
- SHFC serves as the lead government agency for social housing programs targeting low-income formal and informal sectors.
- It develops and administers social housing schemes, especially CMP and AKPF programs.
Capitalization, Powers, and Functions
- NHMFC determines SHFC's capitalization, powers, and functions as its incorporator and holding company.
SHFC Board of Directors Composition
- Chair: HUDCC Chairman (ex-officio)
- Vice Chair: SHFC President (ex-officio)
- Members include Secretaries or representatives from Finance, Interior and Local Government, Budget and Management, Bangko Sentral ng Pilipinas, NHMFC, plus four private sector representatives nominated by the President.
Appointment of SHFC President
- The President of the Philippines nominates the SHFC President.
Transfer of Programs and Funds
- Upon SHFC incorporation, CMP, AKPF (amortization support and developmental financing), and other social housing functions and funds are transferred from NHMFC to SHFC.
- All related powers, rights, and duties of NHMFC concerning these programs transfer to SHFC.
Formation of Transfer Committee
- Includes HUDCC Chairman, NHMFC President, DBM representative, and two HUDCC representatives.
- Tasked with planning and effecting the transfer of all assets, liabilities, and records related to CMP and AKPF within 30 days.
- NHMFC, SHFC, and the Committee must submit a joint report to the President on actions taken.
Personnel Considerations During Transfer
- SHFC’s staffing and position structure require DBM approval.
- NHMFC personnel currently performing transferred functions continue during transition, with options to remain, retire, or separate, receiving lawful benefits.
Continuity of Existing Policies
- Existing NHMFC policies, guidelines, and rules on transferred functions remain effective until amended.
Repealing Clause
- Executive issuances, guidelines, or rules inconsistent with this Executive Order are repealed or modified accordingly.
Effectivity
- This Executive Order takes immediate effect upon issuance.