Expanding the Scope and Usage oftheAbot-Kaya Pabahay Fund.
Section 8
SEC. 8. Expanding the Scope and Usage oftheAbot-Kaya Pabahay Fund. - To be more responsive to the need of enhancing affordability of low-income families to acquire housing and to provide a strong support system for the operation of a secondary mortgage market system by the NHMFC as a stable source of long-term funds for housing finance, the Abot-Kaya Pabahay Fund shall be made a continuing support system of the National Shelter Program, with its scope, usage and coverage accordingly expanded. The existing total budgetary allocation of Two billion five hundred million pesos (P2,500,000,000) of the Abot-Kaya Pabahay Fund under Republic Act No. 6846 shall be increased to Five billion five hundred million pesos (P5,500,000,000) and shall be appropriated until such time that the total funding required under this Act shall have been released. Additional One hundred million pesos (P100,000,000) annually to the cash flow guarantee to extend the mortgage insurance coverage for housing loans within the lowest interest loan package under the Unified Home Lending Program as a cushion against loan delinquency and ensure a viable cash flow for agencies extending housing loans. Annual allocation of Five hundred million pesos (P500,000,000) as liquidity and interest/subsidy support to the secondary mortgage market operation of NHMFC to serve as an alternative mechanism for sourcing housing funds, tapping in the process private and public long-term development funds. The Abot-Kaya Pabahay Fund shall be allocated annually among its various components in the following amounts: P300 Million - Cash flow guarantee; P500 Million - Interest subsidy and liquidity support; P200 Million -Amortization support; and P100 Million - Development financing. The Housing and Urban Development Coordinating Council (HUDCC) shall, from time to time, determine the income ceilings and the loanable amounts for both levels (a) and (b) borrowers and the socialized/low-cost housing limit eligible for development financing. The Abot-Kaya Pabahay Fund shall bear the cost of its administration and development in such amount and/or limits as the administering agencies shall deem appropriate, but not exceeding three percent (3%) of the net assets of the previous year. Expenses for organization and initial operation shall be provided by the administering agencies as advances, subject to reimbursement.