SOCIAL HOUSING FINANCE CORPORATION

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lgid i3fv of N atio na I H.o r.n"e Mortea(e f i na nce Co rpgrati g n

CORPORATE CIRCULAR NO. L2-o?I

Series 2012

TO ALL CMP MOBILIZERS

SUBJECT GUIDELINES FOR THE ACCREDITATION OF

cMP MOBTLTZERS (CMP-M)

I. STATEMENT OF POLICY

Pursuant with the objectives of Republic Act No. 7279, otherwise known as the Urban
Development and Housing Act of 1992 particularly Articles I, V, and VIII, the Community
Mortgage Program (CMP) aims to improve the living conditions of homeless and
underprivileged citizens by providing them affordable financing with which they can secure their
tenure on the land they occupy.

Towards the achievement of this putpose, the SHFC recognizes the need for a strong parhrership
with Local Government Units (LGUs), Non-Government Organizations (NGOs) and other
government and private sector entities which will assist informal settler families in organizing
themselves into Community Associations (CAs) and make sure that they are ready and able to
assume the responsibilities of availing a CMP loan.

il. DEFINITION

A CMP Mobilizer (CMP-M) refers to an organization working with communities of informal

settlers and duly accredited by S[{FC which may either be a local government unit; a national
government agency, bureau or corporation; or a non-government orgarizatron (NGO) whose
principal role under the CMP is to assist, organize and prepare the community for participation in
the program.

M. QUALITICATIONS FOR THE ACCREDITATION OF A CMP.MOBILIZER

A non-government organization (NGO) or private corporation shall gain accreditation as a CMP-

M by acquiring all of the following qualifications:

1. Must be a stock or non-stock colporation duly registered with the appropriate government
agencies;

2. Must have had at least two (2) years experience as an organization in community
development and organizing work. This said experience may have been acquired by the
applicant CMP-M itself or through the assistance of another CMP-M or reputable private
sector or non-government organizations engaged in subdivision/housing activities and
community organizing work;

J. Must have sufficient resources, both financial and physical resources such as an office,
necessary equipment, etc. to undertake responsibly the functions stated in Section IV of
this set of guidelines;
 4. Must have a well-defined organizalional structure that shows clear delineation of
functions and management hierarchy. One or more of the principal officers must have
been engaged in subdivision/ housing activities and community organizing work; and

5. Majority of its officers and staff must have taken a training course on the CMP provided
by the SHFC or its accredited institutions.

A local government unit or a national govemment agency, bureau or corporation may be

automatically accredited provided it has a department/unit that will handle CMP concems and
majority of ine offrcers and staff of the said department/unit has taken a training course on the
Communiry Mortgage Program provided by SHFC or its accredited institutions.

A barangay unit may also be accredited if it passes the requirements enumerated in Section III (1

to 5) of this guidelines.

IV. TUNCTIONS OT A CMP-MOBILIZER

The accredited CMP-M will perform the following functions:

l. Study and profile prospective groups of informal settlers and their intended site for
possible assistance or intervention:

i. Identify households and household characteristics;

ii. Profile the site and document its physical characteristics;
iii.Identiff issues in the community (social, political, etc.); and
iv.Identifu potential or apparent leaders.

2. Assist and guide the CA in their functions:

i. Educate CA on the mechanics of CA formation;

ii. Educate and assist the CA in preparing their constitution and by-laws;
iii.Educate and assist the CA in preparing the CA Book of Accounts and Official
Records;
iv.Educate the members on the rights, privileges, duties and responsibilities of CA
membershiP;
v. Assist them in the election of their officers; and
vi.Assist them in registering with the HLURB.

3. Educate and assist the CA in gathering and completing CMP loan requirements, and
informing them of CMP standards and policies;

4. Assist in site analysis and evaluation, and in the identification of site deficiencies and
development needs;

5. Advise the CA in negotiating with landowners;

6. Assist in values formation and in bringing out potential issues that may affect the
viability of the loan apPlication;

7. Assist the CA in accessing support &om LGUs and other potential sources of support;
and

8. Assist in the documentation of the loan and mortgage, and must have the capacity to
orient the members thereof on the duties and responsibilities of a CA as landowner
and as CMP debtor:
 ii. Assist the CA on legal transactions involved in the CMP loan, mortgage, sale and
others.

9. Undertake such other duties and responsibilities which SHFC deems necessary in
carying out the mandate of CMP and other housing programs.

V. REVIEW OF ACCREDITATION OF A CMP-MOBILIZER

The performance of the CMP Mobilizers shall be reviewed every three (3) yezlrs. In reviewing
the performance of a CMP Mobilizer, SHFC shall evaluate: (a) the number of community
associations and member beneficiaries it has assisted in securing land tenure as indicated by the
number of projects which the CMP-M was able to secure Letters of Guaranty and obtain loan
releases within a minimal processing time; (b) collection efficiency rate of projects it
successfully assisted for a CMP loan; and (c) whether the CMP-M continues to comply with the
prescribed qualifications, duties and functions of a CMP-M as stated in this circular.

VI. LIMIT ON CMP.M PROJECT APPLICATION

The CMP-M's project applications shall be subject to a cap based on the number of projects
taken-out andlor the total loan amount approved by the Board.

VII. SAI{CTIONS

The accreditation of the CMP Mobilizer is predicated on integrity. SHFC expects integrity to
govem the activities of CMP Mobilizers at all times. SHFC shall act on a complaint fded against
a CMP-M by a CA if there is substantial basis for the complaint. SHFC may also act on other
parties' complaint pertaining to the offenses mentioned below. ln acting on a complaint and in
meting out sanctions, SHFC shall create a Commitee which shall be guided by the principles of
due process.

For the offenses mentioned below the corresponding sanctions shall be imposed by SHFC:

OFFENSES SANCTION
Charging of processing fees amorurting to more than Suspension
the amount prescribed in On-site Land Acquisition
and Off-site CMP zuidelines
Directly negotiating with the landowner re: purchase Suspension
price ofthe property
Bad track record in assisting CAs (This includes but Suspension
shall not be limited to failing collection effrciency
rating, substantial number of projects in litigation or
foreclosure)
Cases of abandonment of the CA with no formal Disqualification
termination of contract with CA. Specific cases shall
be discussed in the IRR
Using CMP to pursue his/trer own business interests Disqualification
in buyine and sellins lands
Suspension - A CMP Mobilizer shall be suspended for committing those offenses that have the
sanction of Suspension. Upon rectifuing or correcting the cause for suspension, it shall be
allowed to continue to submit new projects. The specific terms and periods of the suspension
shall be discussed in the IRR.

Disqualificatiqn - A CMP Mobilizer shall be disqualified to participate in the CMP for

committing those offenses that have the sanction of Disqualification. The specific terms and
periods of the disqualification shall be discussed in the IRR.

In the case of a third violation and after being suspended tw'ice, a CMP Mobilizer shall be
disqualified from participating in the CMP. This rule, however, should not be applied to CMP-
Ms who were suspended due to CER failure.

vI[. SERyICE FEES, POST TAKE OUT trEE

As provided in the On-site and Off-site guidelines, the CMP Mobilizers, upon take-out of its
project, shall be entitled to the following service fee:
1. 2Yo of the loan amount or P1,000.00 per CA member, whichever is higher, for On-site
projects (Section 18 of Corporate CircularNo. 11-017)

2. 2Ya of the loan amount or P1,500.00 per CA member, whichever is higher, for Oflsite
projects (Section X of Corporate Circular No. 11-018)

The CMP Mobilizers shall also be entitled to a one-time post-take out service fee of P200.00 per
member beneficiary as determined annually within the required holding period of 5 years,
provided that the CA maintained a CER of at least 85%.
CMP projects that were taken out beginning the year 2008 shall be entitled to receive the post
take out service fee, if qualified. Those that were taken out prior to the year 2008 shall be
coverod under eorporate Cireular CMP NO. 08-005.

Ix. CMP MOBILIZERS' PROCESSING FEE

CMP Mobilizers may charge CA members processing fees for actual out-of-pocket expenses
incurred in the performance of community organizing and education activities, but in no case
shall this processing fee exceed two percent (2%) of the member's CMP loan entitlement.
Expenses of the community association involving third parties (i.e. due to engineers for suwey
and titling and to lawyers) shall not be included in the processing fee but shall be contained in a
separate agreement.

X. REPEALING CLAUSE

All provisions of Circulars, Memoranda, Guidelines, Notices and Policies inconsistent with any
of the provisions of this Circular are accordingly repealed or modified.

XI. IMPLEMENTING RULES AIID REGULATIONS

Within thiry (30) days from approval of this Circular by the SHFC Board of Directors, the
necessary implementing mles and regulations shall be formulated by Management.

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