By Rene Acosta April 7, 2020
The Department of Human Settlements and Urban Development (DHSUD) has declared another moratorium, this time, on the “in-house financing plans, or credit intermediation” extended by real-estate developers to house and lot and condominium buyers.
The moratorium was imposed by DHSUD Secretary Eduardo del Rosario as the agency’s contribution to the “Bayanihan to Heal as One Act,” which is being implemented by the government in response to the novel coronavirus pandemic.
Republic Act 11469, or the “Bayanihan to Heal as One Act,” is a law recently enacted that gave President Duterte additional powers meant to prevent the further spread of Covid-19. It likewise authorized the President to carry out necessary steps to avert the pandemic.
“The unpaid amortizations during the moratorium shall be payable within six months thereafter without interests and penalties,” del Rosario said.
The moratorium initially covers a two-month period, starting from the implementation of the enhanced community quarantine (ECQ) on March 17, 2020, and may be extended if still necessary.
Del Rosario said the temporary reprieve will cover all subdivision, condominium and other projects that are required to be registered with DHSUD.
Earlier, the DHSUD implemented a three-month moratorium on housing and short-term loan payments from its key shelter agencies (KSAs) which are the National Housing Authority (NHA), Home Development Mutual Fund, or Pag-IBIG, Social Housing Finance Corp. (SHFC) and National Home Mortgage Finance Corp. (NHMFC).
The agency admitted that the moratorium would likely result in the non-collection of P31.5 billion by the KSAs, but will benefit more than 5.5 million members.
Del Rosario said that while implementing a three-month moratorium on loan payments from KSAs is doable since they are part of the government, a win-win situation must be pushed also in the in-house financing scheme by private real-estate developers.
The Philippine National Police , the PNP Finance Service will also implement a 30-day moratorium on salary deductions representing monthly amortization for loans made by policemen in six accredited financial institutions that provide financial services to PNP members.
Upon the orders of PNP chief General Archie Gamboa, the PNP Directorate for Comptrollership under Brig. Gen. Marni Marcos Jr. coordinated with accredited private lending institutions for the suspension of loan deductions by policemen.
Marcos said the 30-day reprieve will take effect in the April 2020 pay period and will result in the increased net take home pay of PNP personnel with outstanding loan balances in financial institutions.
Earlier, lending institutions, such as the Armed Forces and Police Savings and Loan Association Inc., Public Safety Savings and Loan Association Inc., Air Materiel Wing Savings and Loan Association Inc., PNP Provident Fund, Public Safety Mutual Benefit Fund Inc., and Armed Forces and Police Mutual Benefit Fund Inc. have already implemented their respective 30-day suspension of monthly payment of loan accounts of PNP members without penalty as provided under Bayanihan to Heal as One Act.
Article originally posted in BusinessMirror website on April 7, 2020.