City has yet to collect P250M in amortization

The Department for the Welfare of the Urban Poor (DWUP) in Cebu City has yet to collect about P250 million in amortization from beneficiaries of its socialized housing project.

Lawyer Colin Rosell, DWUP chief, said the lack of contracts with the city government and the homeowners association where these 3,000 to 4,000 beneficiaries belong, is the reason for the non collection of amortization.

From January to May 2013 alone, DWUP has so far collected P5.6 million which consist of principal and advance payments – P3.4 million, penalties – P1.7 million and interest payments – P0.5 million.

“We are doing everything to remedy the situation,” said Rosell during a press briefing held at the mayor’s conference room yesterday morning.

Rosell said that families who were evicted from barangay Kamagayan for example and who were relocated to barangay Canduman in Mandaue City about 10 years ago, have yet to pay amortization to the city.

Rosell however assured that the city government had no plans to evict these delinquent beneficiaries because this would defeat the purpose of implementing the city’s socialized housing program.

Instead, DWUP is now working with the different homeowners association to already make them enter into contract with the city.

Contracts are signed after the identification of occupants which include the conduct of socio-economic survey and the issuance of a no land holding certificate among others and the submission of the homeowners subdivision plan.

Rosell said that they are also developing a scheme to allow beneficiaries and easy payment scheme despite the payment of penalties and interest for the non-payment of lots which they now occupy.

Delinquency is charged a 9 percent interest per annum and 1 percent monthly interest computed based on the beneficiaries monthly due.

Rosell said they are now thinking of implementing a 10 year to 20 year payment scheme for delinquencies “but we have to examine this properly because this is not also applicable to all.”

maceda law

As this developed, occupants of Cebu provincial government owned lots are hoping that they would still be able to renegotiate for a lower cost of the land that they now occupy using the Realty Buyer Protection Act also known as the Maceda Law as their basis.

An option is to continue installment payments without interest within a prescribed period.

Rosell said that 93-1 occupants in barangays like those coming from barangays Apas and Lahug already sent their letter to acting governor Agnes Magpale before the May 13 election to appeal for renegotiation.

“I checked their letter and as a lawyer, I think it is founded upon law,” said Rosell.

The discovery of the Maceda law is a reason for lot occupants to be “happy.”

“I can’t just say that I am in favor (of their arguments) but I’m happy (that lot occupants came across the Maceda law),” he said.

The Maceda Law applies to the purchaser of real property who were still paying installment payments when the purchase was canceled because of delinquency in payment.

It provides the buyer the right to demand refund as a requisite for the cancellation of contract provided that the buyer has already paid installments for at least two years.