HOUSING LOAN CONDONATION ACT OF 1998
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HOUSING LOAN CONDONATION ACT OF 1998
Republic Act No. 8501
February 13, 1998
Case Overview and Summary
Summary of Republic Act No. 8501 (Housing Loan Condonation Act of 1998)Condonation of Penalties on Housing Loans
- All unpaid penalties on housing loans from government institutions involved in the National Shelter Program are condoned, provided that:
• Due and demandable arrearages composed of principal and interest are restructured and paid within the remaining loan period. (Section 2a)
• If only part of the arrearages is paid, only the corresponding penalties shall be condoned. (Section 2b)
• The borrower must not have availed of any previous condonation program. (Section 2c)
• Penalties due to funders of NHMFC on delinquent accounts under its management shall also be condoned up to the extent paid by individual borrowers. (Section 2d)
Amendatory Clause for Pag-ibig Fund
- Pag-ibig Fund is granted the power to condone penalties on loans, subject to the following conditions:
• A member-borrower may apply for condonation only once for the entire loan amount. (Section 3d1)
• The loan must have been in arrears for at least two (2) years. (Section 3d2)
• The annual total family income must not exceed Three Hundred Thousand Pesos (P300,000.00). (Section 3d3)
• Pag-ibig Fund can also condone penalties on employers who fail to remit employee contributions. (Section 3d)
Applicability to Defective Housing Units
- The Act shall also apply to borrowers who failed to pay due to structurally defective or substandard housing units and/or subdivisions lacking basic amenities as required by law. (Section 4)
Implementing Rules and Regulations
- All government institutions involved in the National Shelter Program must promulgate implementing rules and regulations within sixty (60) days after the Act's effectivity. (Section 5)
Repealing Clause and Effectivity
- All inconsistent laws, executive orders, rules or regulations are repealed or modified accordingly. (Section 6)
- The Act shall take effect fifteen (15) days after its complete publication in the Official Gazette or in at least two (2) national newspapers of general circulation. (Section 7)
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HOUSING LOAN CONDONATION ACT OF 1998
Republic Act No. 8501
•February 13, 1998
Republic of the Philippines
Congress of the Philippines
Metro Manila
Tenth Congress
Republic Act No. 8501 February 13, 1998
AN ACT TO RESCUE THE NATIONAL SHELTER PROGRAM OF THE GOVERNMENT BY CONDONING THE PENALTIES ON ALL OUTSTANDING/DELINQUENT HOUSING LOAN ACCOUNTS WITH ANY OF THE GOVERNMENT INSTITUTIONS AND AGENCIES INVOLVED IN THE NATIONAL SHELTER PROGRAM AND BY AMENDING PRESIDENTIAL DECREE NO. 1752, AS AMENDED
Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled::
Section 1. Short title. - This Act shall be known as the "Housing Loan Condonation Act of 1998."
Section 2. Condonation clause. - (a) All unpaid penalties on housing loans from any of the government institutions and agencies involved in the National Shelter Program of the Government, including but not limited to the Government Service Insurance System (GSIS), Social Security System (SSS), Home Development Mutual Fund (Pag-ibig Fund), National Home Mortgage Finance Corporation (NHMFC), and the National Housing Authority (NHA), are hereby condoned: Provided, That all due and demandable...
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