Delinquent housing accounts with the National Housing Authority (NHA) that apply for loan restructuring and condonation under Republic Act 9507 will be treated to zero payment for penalty and delinquency charges and 50 percent off on accrued or unpaid interest.
NHA General Manager Federico A Laxa said the substantial discounts on housing arrears is a welcome relief for beneficiaries as it will help them update their accounts and meet their monthly obligations. He added that the condonation program will also boost collection efforts of government.
The guidelines for the implementation of RA 9507 are embodied in NHA Memorandum Circular No. 2218 dated 2 April 2009. RA 9507 was signed by President Gloria Macapagal Arroyo last October 2008 and its IRR was formulated by the government shelter agencies under the supervision of the HUDCC.
Covered by the loan restructuring and condonation program are outstanding residential accounts or loans with principal amounts not exceeding P2.5 million which have cumulative arrearages equivalent to at least three (3) monthly amortizations
NHA will condone all penalty/delinquency charges and fifty percent of accrued/unpaid interest based on the approved application. For borrowers who opt to settle their account prior to maturity, a 20 percent rebate on outstanding principal balance after updating shall be granted.
The restructured loan account will consist of an interest bearing portion which is the total outstanding principal balance, and a non-interest bearing portion which will be the uncondoned portion of accrued interest to be repaid in equal monthly amortizations during the term of the loan. The maximum repayment period of the structured loan is 30 years for individual accounts and 10 years for accounts of community associations.
Housing beneficiaries may avail of restructuring and condonation for a period of 18 months starting from 4 May 2009, effectivity of the implementing rules and regulations.
The interest bearing portion of the restructured loans will have the following interest rates: 6 percent per annum for accounts with original loan amount of P400,000 and below; 7percent for above P400,000 to P700,000; and 10.5 percent for above P700,000.
Under MC 2218, NHA provides for incentives for updated accounts and remedies against delinquent accounts.
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