MEMORANDUM OF UNDERSTANDING

This Memorandum of Understanding (“Memorandum”) entered into and

executed this 23rd of January 2020 at Magalang Pampanga by and between:

Local Government Unit existing under Philippine Laws with office address at
Municipal Hall Compound, Magalang, Pampanga represented by the MAYOR
ROMULO F. PECSON (hereinafter, “LOCAL GOVERNMENT UNIT OF
MAGALANG PAMPANGA”);

And

SOCIAL HOUSING FINANCE CORPORATION, a government-owned and

controlled corporation with office address at Banco de Oro Plaza Bldg. 8737
Paseo de Roxas, Saleedo Village, Makati City, represented by its President
ARNOLFO RICARDO B. CABLING (hereinafter, “SHFC”);

WITNESSETH

WHEREAS, pursuant to Article VIII of Republic Act No. 7279 (Urban Development and Housing
Act), SHFC shall assist legally organized association underprivileged and homeless citizens to
purchase and develop a tract of land under the concept of community ownership under the
Community Mortgage Program (hereinafter, “CMP”). The primary objective of CMP is to assist
resident of blighted or depressed areas in own the lots they occupy or where they choose to
relocate to, and eventually improve their neighborhood and homes to the extent of their
affordability;

WHEREAS, under Executive Order No. 272 Series of 2004, SHFC was mandated to be lead
government agency to undertake community-driven social housing programs that will enter to
the informal settlers families (ISFs) of the low-income bracket and to take charge in developing
and administering social housing program schemes particularly the CMP and High Density
Housing (HDH);

WHEREAS, the Local Government Unit of Magalang, Pampanga is mandated under Republic
Act No. 7160 (Local Government Code of 1991) to implement a comprehensive and continuing
urban development program and uplift the conditions of its underprivileged and homeless
constituents:

WHEREAS, Local Government Unit of Magalang, Pampanga recognizes that rapid urbanization
and the increasing need for housing continue to rise, and that innovative housing programs such
as the CMP and HDH must have vigorously pursued and implemented.

WHEREAS, SHFC and the Local Government Unit of Magalang Pampanga are committed to
provide security of tenure to the Province/Municipality/City informal settlers familis (ISFs)
including those living along danger areas, waterways and those with threat of eviction, including
sectoral groups who are homeless and underprivileged;

WHEREAS, SHFC shall support the Local Government Unit of Magalang Pampanga various
socialized housing programs such as, but not limited to CMP and its modalities, including LGU
initiated, Vertical Housing, Turnkey, Industrial Workers, Mixed-Use, Sectoral, Farm-Lot and
Culturally Sensitive CMPs.
NOW THEREFORE, FOR AND IN CONSIDERATION of the foregoing premises the Parties
hereby commit and agree as follows:

A. OBLIGATION OF THE LOCAL GOVERNMENT UNIT OF MAGALANG PAMPANGA;

1. Act as CMP-Partner of SHFC and implement the latter’s social housing programs in the
Municipality of Magalang Pampanga such as but not limited to CMP and its modalities
including LGU-initiated, Vertical Housing, Turnkey, Industrial Workers, Mixed-Use,
Sectoral, Farm-Lot and Culturally Sensitive CMPs, whichever is applicable for the project.

2. Identify a pilot project for socialized housing to be financed by SHFC within twelve (12)
months form the signing of this Memorandum either through land refinancing LGU-
initiated, Vertical Housing, Farm Lots and Sectoral Housing

3. Assist in identifying the potential areas and parcels of lands to be piloted for the social
housing programs of SHFC.

4. Identify and certify the list of qualified ISFs who would avail of the CMP loans pursuant to
SHFC’s applicable CMP guidelines, rules, and regulations

5. Assist in securing Zoning Certificate, LGU Certification on Site Suitability or

Comprehensive Land Use Plan (CLUP) and the Preliminary Approval and Locational
Clearance (PALC)

6. Identifying a unit or task force within the Brgy-LGU which shall facilitate the socialized
housing projects of SHFC;

7. Provide logistical support during the course of the social preparation and project
development

8. Expedite the processing of documentary requirements necessary for SHFC’s approval of

the project/s

9. Assist in organizing and strengthening the community associations who intend to avail of
SHFC’s housing programs

10. Assist the community association and facilitate the completion of SHFC’s documentary
requirements including the post take-out phase (i.e requirements in the subdivision of the
property, transfer of the title registration from landowner to community association etc.)

11. Provide a venue for the conduct of activities to facilitate the processing of housing
programs of SHFC.

12. Provide technical assistance to community association in the subdivision of the property
including the conduct of re-blocking and implementation of the subdivision plan or provide
protection measures to benefit communities living along critical areas if necessary;

13. Support the community association in the upgrading of their communities, including
providing access to livelihood and basic services and facilities

14. Assist the community association in the resolution of the recalcitrant ISF’s

15. Act as mediator on issues of substitution of community association members

16. Assist the community association in their collection efforts

17. Monitor feedback from the community association regarding issues on CMP and SHFC
and

18. Promote the social housing programs of SHFC and the Citywide Community Upgrading
Strategy.
B. OBLIGATIONS OF SHFC

1. Assess the viability of identified project sites/lots.

2. Finance the Local Government Unit of Magalang Pampanga socialized housing project
initiatives (Lot Acquisition, Site Development and House Construction Loan) subject to
SHFC’s applicable guidelines, rules and regulations, and budgetary capacity;

3. Provide a status of accredited CMP-Mobilizers with projects financed by SHFC within the
Municipality:

4. Liaise with other government agencies to expedite the documentation processing and
requirement during the implementation period:

5. Conduct a briefing and orientation in the Local Government Unit of Magalang Pampanga
regarding housing programs of SHFC and the Citywide Community Upgrading Strategy:

6. Conduct consultations and project cliniquing in the Municipality of Magalang Pampanga

7. Make available SHFC personnel in assist in project development of housing programs in

the Municipality of Magalang Pampanga:

8. Establish a feedback mechanism on the status of all housing projects in the Municipality of
Magalang Pampanga

9. Assist in the resolution of issues regarding recalcitrant ISF’s, including substitution of

member-beneficiaries of community associations for housing programs of SHFC in the
Municipality of Magalang Pampanga: and

10. Provide an annual listing on housing projects of SHFC within the Municipality of Magalang
Pampanga and the status if said projects.

C. INCORPORATION BY REFERENCE

All existing SHFC Circulars, Guidelines and Implementing Rules including those which may
hereafter be issued as well as those registered with the Office of the National Administrative
Register shall form part and deemed incorporated in this Memorandum

D. REPRESENTATION AND WARRANTIES

The Parties represent that they have the requisite power, authority, and capacity to enter into
this Memorandum and perform their duties, obligation and undertakings according to the terms
and condition set forth.

The Parties shall comply with the pertinent laws, rules, and regulations promulgated by the
Republic of the Philippines.

This Memorandum shall be binding upon the parties hereto and their respective assignee's and
successors-in-interest.

E. SEPARABILITY CLAUSE

Any provision of this Memorandum subsequently declared illegal, invalid or unconstitutional by

the court of law shall bot affect the rest of other provisions which shall remain valid, subsisting
and binding.

F. AMENDMENTS

No modification of this Memorandum or part thereof shall be made except upon deliberation on
the contested provision herein and execution of a written instrument duly signed by the both
Parties thereto.
G. EFFECTIVITY AND TERMINATION

This Memorandum shall take effect immediately upon signing by the Parties and their
instrumental witnesses and shall remain valid and effective unless sooner amended or revoked.

IN WITNESS WHEREOF, the parties have agreed to all provisions of this Memorandum of
Understanding as negotiated together and affixed their signatures at the Municipality of
Magalang Pampanga, Philippines on January 23, 2020.

SOCIAL HOUSING FINANCE MUNICIPALITY GOVERNMENT

CORPORATION OF MAGALANG, PAMPANGA

By: By:

ATTY ARNOLFO RICARDO B. CABLING HON. ROMULO F. PECSON

President Municipal Mayor

Signed in the presence of:

_______________________________ ______________________________

Republic of the Philippines )

____________________ )

ACKNOWLEDGEMENT

BEFORE ME., a Notary Public for and in the ____________________ this

_______________ of _________________ personally appeared

NAME GOV’T ISSUED ID ISSUED ON/AT

Personally known to me and to me known and identified by me through competent evidence

presenting this integrally complete instrument. The Parties represented to me that the signatures
in this instrument were voluntarily affixed by them for the purposes declaring that they have
executed this instrument as their free and voluntary act and deed

The foregoing instrument relates to a Memorandum of Understanding consisting of

_____________ (___) pages including this page of Acknowledgement, signed by the parties and
their instrumental witnesses on all pages thereof, in any presence and sealed with my Notarial
Seal.

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