CH lowers interest rate for socialized housing

CEBU, Philippines - The Cebu City government has lowered the interest rate of its socialized housing program from nine percent to six percent per annum.

The City Council passed on Wednesday after final deliberation the ordinance sponsored by Councilor Alvin Dizon, chairperson of the committee on socialized housing, to back the lowering of the interest rate. The members of the council cheered and congratulated Dizon after his measure was passed.

The measure aims to reduce the financial burden of socialized housing beneficiaries, considering they pay an annual interest rate of nine percent to the city. With the passage of the ordinance establishing a low interest rate in housing, Dizon said he wanted the city government to further elevate the "security of tenure for our urban poor residents."

Those who applied for the restructuring of their monthly amortization and condonation of penalties will also benefit from the ordinance.

 "There is a need to impose the six percent interest rate to all socialized housing beneficiaries, especially since there are beneficiaries who have not applied for restructuring and condonation who still do not have any contracts or whose contracts only recently expired or lapsed," Dizon said.

Dizon said the measure is in accordance with the Cebu City Local Housing Board Resolution No. 12-026, which recommended the reduction of the interest rate from nine to six percent for all bonafide beneficiaries.

Section 2 of the ordinance provides that "the city adopts the policy of providing a continuing program of housing that is affordable, just, decent and low cost."

Councilor Eugenio Gabuya suggested during the deliberation to maintain the interest rate of those who already availed the housing program with nine percent interest rate. "Even if we approve the ordinance those who paid nine percent will continue to pay it until the expiration of the contract," he said.

But Dizon pushed to "adopt" the new established rate of six percent and said "the ordinance does not derogate but rather beneficial to the people."

"No impairment of contract," Councilor Hanz Abella stressed.

When the measure was first introduced in December last year, City Division for the Welfare of the Urban Poor Chief Collin Rosell and Marlene Paracueles of Urban Poor Alliance (UP-All), a city-wide alliance of urban poor groups and homeowners associations, had endorsed the passage of the ordinance.  (FREEMAN)