Governor Gwen Garcia met with officials of Pag-IBIG Fund, led by CEO Marilene Acosta and Deputy CEO Atty. Robert John Cosico, at the Capitol on December 9 to address the long-standing issues surrounding the payment process for 93-1 lots in Cebu City.
The meeting centered on implementing a proposed “Kaliwaan System,” a streamlined mechanism aimed at ensuring a simultaneous exchange between the Cebu Provincial Government and the Pag-IBIG Fund.
This system seeks to simplify transactions while safeguarding the interests of both the Capitol and Pag-Ibig.
Under the Kaliwaan System, the Capitol will prepare the Deed of Sale of Capitol properties, including 93-1 lots, occupied by Cebu City residents; while the Pag-IBIG Fund will process the loan checks. These checks will only be released as payment to the Capitol for the lots once the Capitol submits the signed Deed of Sale in favor of the occupants, ensuring compliance and mutual accountability.
“We will process the check once the Deed of Sale is ready. The Province holds the Deed of Sale, while we hold the check. There’s an exchange because we are also prevented from issuing the check without the security of the loan,” explained Acosta.
She emphasized that Pag-IBIG requires collateral before releasing loan checks. “The collateral is the property that the Pag-IBIG member is buying, so we need to hold it before we release the check,” she added.
This system will benefit occupants of various Capitol properties such as 93-1 lots, Old Philippine Railway Residence Association (OPRRA), Kalunasan, and Apas in Cebu City, as well as the Gawad Kalinga site in Minglanilla.
Governor Gwen Garcia and Cebu City Mayor Raymond Garcia welcomed this development, as this would allow the Capitol to be properly compensated for its properties, while the Cebu City residents may finally have some peace of mind and a sense of ownership of the lots where they built their homes.
Initially, Pag-IBIG required the Capitol to sign a deed of sale before releasing funds to the Capitol which has delayed the transactions.
At the 2024 APIC Summit in Hong Kong last November 14, Gov. Gwen secured a commitment from Atty. Cosico, who was the Governor’s co-speaker at the summit, to help Cebu City residents overcome these challenges in their dealing with Pag-Ibig.
If implemented, the residents of OPRRA are expected to benefit first, as 49 of them already have Pag-IBIG-approved documents.
The Capitol, under Governor Garcia’s leadership, continues to advocate for affordable housing solutions.
The partnership with Pag-IBIG Fund allows residents to apply for loans with favorable terms, including repayment periods of up to 30 years.
Pag-IBIG will pay the Capitol the fair market value of the properties, enabling residents to repay the fund under more accessible housing programs.
By addressing these issues, the Capitol aims to provide long-term solutions for occupants of Capitol-owned properties in Cebu City. | BJR