Amendments to LOI Nos. 55 and 686 Re: Slum Improvement and Sites and Services Development Program
Letter of Instructions No. 1283, issued on January 26, 1983, amends previous directives regarding the Slum Improvement and Sites and Services Development Program in the Philippines. It establishes a cost recovery scheme for beneficiaries, allowing interest rates on loans to reflect the government's borrowing costs plus a maximum spread of 2%. The letter emphasizes the preference for freehold land tenure, offering beneficiaries options for immediate ownership or lease with an option to purchase. Additionally, it overrides any inconsistent provisions from earlier letters of instruction.
January 26, 1983
LETTER OF INSTRUCTIONS NO. 1283
| TO | : | Ministry of Public Works and Highways |
| National Housing Authority | ||
| All Local Governments and the Ministry of Local Governments | ||
| The Philippine National Bank and all Government Banks | ||
| The Ministry of the Budget | ||
| Local Water Utilities Administration | ||
| National Electrification Administration | ||
| Ministry of Human Settlements | ||
| Ministry of Education and Culture | ||
| Ministry of Health | ||
| Ministry of Finance | ||
| Government Service Insurance System Social Security System | ||
| Armed Forces of the Philippines and Police Authorities | ||
| SUBJECT | : | Amending LOIs Nos. 55 and 686 on the implementation of Slum Improvement and Sites and Services Development Program |
Recognizing that the Slum Improvement and Sites and Services Development Program can be pursued only in the magnitude that government envision to implement it, through a deliberate and effective cost recovery scheme that covers the cost of funds utilized by the government to support the program and realizing that the family beneficiaries prefer freehold as the land tenure for projects under the above-mentioned program, it is hereby directed that: aisa dc
(a) In view of the increasing cost of borrowed funds utilized by the government to expand the implementation of the Slum Improvement and Sites and Services Development Program; the interest rate that may be charged beneficiaries of the above-program shall correspond to the cost of the funds used by government for the purpose plus a spread of not more than 2% to cover other expenses such as the cost of the estate management and project administration. The cost of funds shall be determined by the weighted average of the contribution of the funding agency providing the borrowed funds and that of the Philippine government. For this purpose funds from the Philippine Government shall be assumed to cost only 9% per annum.
(b) In consideration of the preference of project beneficiaries that the land tenure for projects under the program should allow immediate ownership of the land by them, freehold and lease with option to purchase are the land tenure schemes for projects under the program. Project beneficiaries shall be given the option to select from the above schemes taking into consideration the capacity to meet the payments to be made under each scheme.
(c) All provisions of LOIs Nos. 555 and 686 to the extent that they are not consistent with the principles, guidelines and provisions of this Letter of Instructions are hereby amended.
DONE in the City of Manila, this 26th day of January, in the year of Our Lord, Nineteen Hundred and Eighty-Three.