Move to lower penalty rates of urban poor beneficiaries pushed

CEBU, Philippines - The members of the Cebu City Council committee on housing support the move to lower the penalty against those delinquent urban poor beneficiaries who failed to pay their amortization on time and as a result have acquired a huge unpaid account.

Councilors Ritchie Osmeña and Joey Daluz III proposed that the existing penalty rates of one-fifth of one percent per day, or 20 centavos for every P100 of unpaid amortization, would be reduced to only P1 for every month per P100 of unpaid obligation.

Based on the existing penalty rates, a delinquent urban poor beneficiary is required to pay a penalty of P6 per month for every P100 of unpaid obligation.

Osmeña and Daluz explained that with the economic crisis plaguing the country, it is common occurrence for low-cost housing beneficiaries to miss out on their amortization payments and thus become liable for payment of penalty charges.

Councilor Nestor Archival, vice chairman of the committee on housing, together with fellow legislators Arsenio Pacaña and Edwin Jagmoc described the proposed amendment of said ordinance as a very noble endeavor because the reduced rate is reasonable.

“With the reduced penalty rate, the great risk of the beneficiaries being displaced from their shelters and homes would be diminished,” they said.

But Archival explained that, while the committee agreed to approve the proposal, the beneficiaries will have to comply with all the requisites in order that they may be spared from the payment of the existing penalty rates.

“Giving these beneficiaries an unlimited period within which to comply with the requirements will somehow frustrate the purpose of the ordinance,” Archival said.

The Local Housing Board has been tasked to quickly formulate the implementing rules and regulations relative to the proposed amendment. – Rene U. Borromeo/BRP   (THE FREEMAN)