House passes measure to condone interest, restructure loans for socialized housing
The House of Representatives on Wednesday gave the final nod to a measure that would mandate the government to condone and restructure loans for socialized housing to ease low-income families’ financial burden while ensuring they have decent homes.
On Wednesday’s plenary session, 178 congressmen voted to approve on third and final reading House Bill No. 11202, or the proposed “Socialized and Low-Cost Housing Loan Restructuring and Condonation Act,” while three lawmakers opposed the measure.
Kabataan Rep. Raoul Manuel, who voted against the bill, maintained that the government’s provision of social services shouldn’t be considered a “lending business,” citing the imposition of a 3 percent interest rate on restructured loans.
HB 11202 seeks to make available to underprivileged Filipinos affordable and decent housing by condoning unpaid interests and penalties of the National Housing Authority (NHA) and Social Housing Finance Corporation beneficiaries (SHFC). The bill aims to reduce the foreclosure rates of socialized housing units.
The measure, while condoning interest and penalties for unpaid housing amortization of NHA and SHFC beneficiaries, would also restructure housing loans by extending the loan term and enabling the transfer of the loan to legal heirs or successors-in-interest.
It would create a program for socialized and low-cost housing loan restructuring and condonation under the NHA and SHFC, which would cover all socialized and low-cost housing loans in the agencies that have at least three months of unpaid monthly amortizations, provided that “the original principal amount of the housing loans shall not exceed P1.8 million.”
3-percent interest
“All existing interests on principal, penalties, and surcharges shall be condoned upon approval of the restructuring application under this Act. Provided that an interest rate of 3 percent of the original loan, whichever is lower, shall be imposed upon the restructured loan,” according to HB 11202, adding that loan restructuring can only be used once, except in the case of force majeure.
HB 11202 also offers incentives for beneficiaries who pay monthly amortizations on time, including loan interest discounts.
For Manuel, the 3 percent interest on restructured loans would still be a heavy burden for low-income families availing of socialized housing.
“The imposition of any interest will contradict the spirit of condonation and further burden already struggling low-income families who have faced significant hardship,” he stressed, in explaining his negative vote on the House floor.
The lawmaker pointed out in Filipino: “We want quality, affordable public housing for the poor but we do not want this draft measure to be wielded by the government in intensifying the padlocking of unpaid housing units.”
“If we’re going to restructure housing loans, it would be better not to impose a new interest rate. 3 percent is not a small value especially when, in real life, many of our kababayan are jobless and socialized housing loan beneficiaries earn so little,” Manuel said, emphasizing, “Social services like (housing) shouldn’t be made into a lending business.”
