LUISIANA, Laguna -- President Gloria signed here Monday the "Socialized and Low-Cost Housing Loan Restructuring Act of 2008" that is expected to save some 368,535 delinquent housing loan borrowers from rejoining the ranks of homeless Filipinos.

Arroyo was here for the groundbreaking and capsule-laying ceremony for a housing project in Sitio (sub-village) Dapi, Barangay (village) San Jose to benefit 305 informal settlers of this town.

Republic Act 9507 will cover all socialized and low-cost housing loans from government financing institutions and agencies with at least three months of unpaid monthly amortizations.

The law covers housing loan accounts with institutions like the Government Service Insurance System, Social Security System, National Home Mortgage Finance Corp., Social Housing Finance Corp., Home Guarantee Corp. and National Housing Authority with principal loan amounts not exceeding P2.5 million

The program will be implemented for 18 months from the issuance of the implementing rules and regulations, but the governing boards of the respective institutions are given the authority to continue the program beyond this period.

An interagency committee composed of the concerned GFIs and agencies and headed by the Housing and Urban Development Coordination Council (HUDCC) is tasked to promulgate the implementing rules and regulations within 60 days from the signing of the law.

Vice President Noli de Castro, the concurrent HUDCC chairman, promised to issue the IRR as soon as possible and assured that the law will not threaten the financial stability of the concerned institutions and agencies as there are specific provisions that will safeguard the program from abuse.

He also said the law empowers the governing boards of lending institutions to give reasonable discounts on loan interests as an incentive to borrowers who pay their amortizations on time.

Arroyo lauded the timeliness of the law for families with delinquent loans, especially in the face of the global financial crisis.

The President also switched on a rural electrification project that will benefit at least 80 households, a resort farm and a garment factory in three sub-villages in the towns of Mabitac, Siniloan and Famy, all in Laguna.

She also distributed several checks for the scholarship of indigent students in Laguna.

After signing the anti-foreclosure law, Arroyo proceeded to nearby Cavinti town and inaugurated the P55.9-million, 40 lineal meter long Tibatib bridge that connects the town to neighboring municipalities.