Qualified informal settlers associations (ISA) in Valenzuela City who want to buy the land they occupy or a relocation site can avail of loan assistance from the city government through the Informal Settlers Loan Assistance Program (ISLAP)
The program aims to help informal settlers pay either the down payment or the equity requirements of lands purchased through the Community Mortgage Program (CMP) of the Social Housing Finance Corporation.
The ISLAP has two loan packages from the fund of PhP 25 million from the City Development Council: the Land Acquisition Downpayment and the Equity Loan Assistance.
Under the Land Acquisition Downpayment package, the ISA may loan a downpayment that is equivalent to 10 per cent of the total mortgage amount of the land. The loan is payable for two years with an annual interest of six per cent.
The same amount of loan and same payment terms are available to clients paying land equity requirements with the Equity Loan Assistance package.
The qualified ISA must be a recognized organization by the following agencies: City Housing Resettlement Office, the Presidential Commission on the Urban Poor, Housing and Land Use Regulatory Board (HLURB), the Securities and Exchange Commission (SEC) and the Home Insurance and Guaranty Corporation.
Since its inception in 2005, the ISLAP, a project of former city mayor and now District 1 Representative, Cong. Sherwin T. Gatchalian, has loaned out a total of PhP 12.88 Million to four ISAs.
The latest ISA to benefit from the program is the United Libis Homeowners Association (ULHA) Phases I and II, a community of 333 families, which was awarded a loan of PhP 1.2 Million last Saturday, July 13.
The ULHA is buying a Php 25 million, 20,248- square-meters land owned by the Philippine Veterans Bank in Barangay Canumay East where the residents have lived for the last 25 years.
Association president ,Tess Karapatan said the ISLAP loan will cover almost half of the Php 3 million downpayment the Philippine Veterans Bank requires. The rest will come from the association’s savings.
Mayor REX T. Gatchalian encouraged the beneficiaries to religiously pay their dues. “Ang pondo na ‘yan, pag ibinalik ninyo sa lokal na pamahalaan, may ibang mga informal settlers na tulad ninyo na mapapahiram namin. (Your payment would allow the city government to give more loans to other informal settlers),” Mayor REX said during the awarding.