Ouano said the city government already submitted the necessary documents to the NHA to pave the way for the site development.
The shanties of more than 600 squatter-families located below the first Mandaue-Mactan Bridge in the barangay will be demolished once the money is released.
Ouano is fast-tracking the development of the squatter area as part of the city's beautification program in preparation for the ASEAN Summit in December.
Three medium-rise buildings that will be built in the area are designed to hold at least 300 housing units. The NHA will provide P100 million from the 1998 Poverty Alleviation Fund to finance the project.
The city government has already waived its share of profit in the housing amortization so the project would be affordable to the beneficiaries.
The amortization cost will be computed based solely on the amount the city is required to pay to the NHA.
Under the city's agreement with the NHA, it is required to pay the agency P100 million as principal obligation for a 20-year period at nine percent the annual interest rate.
The city will then remit P2.7 million, inclusive of the interest, to the NHA quarterly. It will in turn get the amount from the amortization that will be paid by the beneficiaries. - Mitchelle P. Calipayan