Reduced penalty on delinquent housing beneficiaries approved

The Cebu City Council committee on laws and ordinances is supporting the move to reduce the penalty to be imposed upon delinquent beneficiaries of the city’s socialized housing programs.

Committee chairman Edgardo Labella said the proposal of fellow councilors Richard Osmeña and Gerardo Carillo is not against the law, thus the committee recommended for its approval.

When the council carries the recommendation, the delinquent beneficiaries of the city’s housing programs will be required to pay only P1 for every P100 of their obligation to the city, P5 less than the original amount.

At present, the penalty imposed by City Hall on delinquent beneficiaries is one fifth of one percent per day, which totals to six percent every month. One fifth of one percent is equivalent to 20 centavos while one percent is equivalent to P1.

Osmeña, chairman of the City Council committee on housing, explained that the reduced penalty charges would encourage delinquent payers to settle their dues with the city government.

It was learned that the city has yet to collect close to P400 million in unpaid amortization from about 8,000 socialized housing beneficiaries.

Many of the urban poor beneficiaries explained they have failed to pay their obligation promptly because of the economic crisis.

They are hoping that the amended penalty rates would be finally implemented to allow them to pay their penalties and principal amortization. — Rene U. Borromeo/JMO