After reading, What is Community Mortgage Program Under Republic Act No. 7279 or The “Urban Development and Housing Act of 1992”?, read also What Is Socialized Housing Under Republic Act No. 7279 Or The Urban Development And Housing Act Of 1992
The Community Mortgage Program (CMP) is a mortgage financing program to purchase and develop a tract of land under the concept of community ownership
Properties sold under the CMP shall be exempted from the capital gains tax
Beneficiaries of the CMP may establish their own associations
The Community Mortgage Program (CMP) is a mortgage financing program of the National Home Mortgage Finance Corporation which assists legally organized associations of underprivileged and homeless citizens to purchase and develop a tract of land under the concept of community ownership.
The primary objective of the program is to assist residents of blighted or depressed areas to 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.
To encourage its wider implementation, participants in the CMP shall be granted with the following privileges or incentives:
Government-owned or -controlled corporations and local government units, may dispose of their idle lands suitable for socialized housing under the CMP through negotiated sale at prices based on acquisition cost plus financial carrying costs;
Properties sold under the CMP shall be exempted from the capital gains tax; and
Beneficiaries under the CMP shall not be evicted nor dispossessed of their lands or improvements unless they have incurred arrearages in payments of amortizations for three (3) months.
May beneficiaries establish their own associations?
The law says:
Beneficiaries of the CMP shall be responsible for their organization into associations to manage their subdivisions or places of residence, to secure housing loans under existing Community Mortgage Program and such other projects beneficial to them.
Subject to such rules and regulations to be promulgated by the National Home Mortgage Finance Corporation, associations organized pursuant to the Urban Development and Housing Act of 1992, may collectively acquire and own lands covered by the CMP.
Where the beneficiaries fail to form an association by and among themselves, the National Home Mortgage Finance Corporation shall initiate the organization of the same in coordination with the Presidential Commission for the Urban Poor and the local government units concerned. No person who is not a bona fide resident of the area shall be a member or officer of such association.
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