Antonio V. Osmeña
Estatements

THE Home Guaranty Corporation Act of 2000 consolidated and amended Republic Acts 580, 1557, 5488 and 7835 and Executive Orders 535 and 90 and gave the corporation an authorized capital stock of P50 billion, divided into 50 million shares of common stock with a par value of P1,000 per share.

Out of the increase of P47.5 billion in its authorized capital stock, the amount of P7.5 billion shall be subscribed and paid in cash by the Government of the Republic of the Philippines. Accordingly, that amount was appropriated out of the funds of the National Treasury. Succeeding National Government equity to the corporation was included in the General Appropriations Act.

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The Home Guaranty Corporation Act declares the policy of the State to undertake, in cooperation with the private sector, a continuing nationwide housing program that will make decent housing available at affordable cost.

It likewise recognizes the role of housing as a catalyst of economic growth and development, and has declared it a State policy to strengthen, promote and support the component activities of housing production and finance.

A seven-member Board of Directors is supposed to govern, direct, control and manage the corporation, with the secretary of the Department of Finance as the ex-officio chairman and the chairman of the Housing and Urban Development Coordinating Council (HUDCC) as the ex-officio vice chairman.

Its members include the director general of the National Economic and Development Authority (ex-officio), the president of the corporation and three other members to be appointed by the President of the Philippines. They shall serve for a term of five years.

The corporation’s objectives are:

1) ensuring continuous funding support to vigorously implement the government’s programs for urban and rural housing, resettlement, the development of sites and services, and the renewal of blighted areas;

2) enhancing the capability of low-income groups to acquire decent low-cost housing units through the introduction of support mechanisms and facilities;

3) providing for a strong and sustainable housing finance program, with complementary support systems, that will pump-prime build up and strengthen available sources of cheap and long-term capital;

4) increasing the private sector’s participation in the investment of their funds into the mainstream of housing finance for developmental and end-user financing requirements;

5) encouraging the flow of private funds for mass housing development and home buyers’ financing through a viable system of mortgage and credit guaranty;

6) enjoining the active participation of local government units in socialized housing programs, through a viable system of mortgage and credit guarantee;

7) enjoining the active participation of local government units in socialized housing programs through adequate measures for housing development in their areas;

8) strengthening the capital base and optimizing the resources of the National Government and the corporation to ensure that homeless families across the nation can enjoy the benefits that can be derived from the government’s guaranty facilities;

9) serving the housing requirements of all the underprivileged and those gainfully employed, especially those who are not members of any funding agencies such as the Government Service Insurance System, Social Security System and HDMF; and

10) institutionalizing and promoting the aided self-help approach in home ownership and introducing support facilities that will enhance the capability of low-income groups to acquire decent housing.

Each region in our country has different and peculiar housing problems.

The HGC Board of Directors should consider regionalizing some of its operating policies through the Housing and Land Use Regulatory Board, since this government agency is knowledgeable of the housing problems in each community.

Unfortunately for the Home Guaranty Corp (formerly the Home Insurance Guaranty Corporation), the corporation has remained obscure for decades, considering its important role in our country’s estate development and economic growth. Well, our government, for decades has always been noted for the poor implementation of laws passed.