About HGC


August 11, 1950
House Bill No. 1323, also known as the "Home Financing Act", was filed by then Representative Floro Crisologo.

September 15, 1950
The precursor of the HGC Charter, Republic Act (R.A.) 580, establishing the Home Financing Commission with an initial budget of P5 Million, was signed into law by then President Elpidio Quirino.

December 17, 1950
The first HFC Board of Directors convened at the Banker's Committee Room, Phil-Bank of Commerce Building , Plaza Sta. Cruz, Manila. The first Board Resolution was passed approving the organizational and functional charts of the Commission.

December 1955
Chairman Jose V. Andrada of the Home Financing Commission (HFC) opposed Proposal No. 70 of the Government Survey and Reorganization Commission (GSRC) to abolish the HFC.

The GSRC proposed to integrate the functions of HFC with those of the People's Homesite and Housing Corporation (PHHC) and create a new housing authority.

Chairman Andrada said the proposal did not consider the conflicting functions of the two entities. The PHHC is mandated to aid in slum clearance and promote low-cost housing and rental programs. HFC, on the other hand, is mandated to encourage private investors into housing development. According to him, the proposal would prejudice the home development program of Government.

February 21, 1956
The HFC approved the Rules and Regulations on Mutual Mortgage Insurance.

June 16, 1956
Republic Act 1557 was approved, amending the HFC Charter R.A. 580. The aided self-help approach in housing provision was introduced.

Sometime in 1956
HFC pioneered an Aided Self-Help Housing Development Project in Pangasinan and provided technical guidance to enable families to build their own houses with their own labor and rented simple construction equipment/tools.

December 18, 1956
HFC Board Resolution No. 73.1956 was passed approving the first application for mortgage insurance of spouses Serafin Evangelista and Rinia C. Vita (Mortgagors) and China Banking Corporation (Mortgagee) in the amount of P7,500 for a term of 15 years.

September 24, 1963
The Commission approved the Rules and Regulations on Building and Loan Associations (BLA's).

June 21, 1969
R.A. 5488, which introduced further amendments to the HFC Charter was approved by then President Ferdinand Marcos. The ceiling on interest rate on bonds, debentures, securities and other obligations was increased from 4% to 7%.

June 1978
Presidential Decree No. 1396 was enacted by then President Marcos by virtue of his Martial Law powers, establishing the Ministry of Human Settlements (MHS). HFC was placed under MHS supervision.

May 3, 1979
Executive Order No. 535 was issued by President Marcos, reorganizing the Commission into a Corporation and renamed as the Home Financing Corporation.

Capitalization was increased to P 1 Billion.

HFC was given the exclusive jurisdiction over the regulation and supervision of operations of homeowners associations.

June 1981
HFC implemented the Land Investment Trust Program (LIT) to generate funds through issuance of investment instruments for the acquisition of urban land. The LIT Program was eventually phased out in 1987.

In spite of the financial/economic instability and the hesitancy of investors to invest in the country, guarantee coverage rose by 66% from P3.019 Billion in 1982 to P5.016 Billion in 1983. In an unprecedented display of confidence in the government's housing program, some 700 top banking and financial executives formally turned-over to the HFC their commitments amounting to P7.7 Billion.

December 1986
President Corazon Aquino with her powers during the post-EDSA-I revolutionary government, issued E.O. 90 renaming HFC as the Home Insurance and Guaranty Corporation (HIGC). The Executive Order, which has the force of law, placed the HIGC and all the other housing agencies under the supervision of the Housing and Urban Development Coordinating Council (HUDCC).

The Corporation (HFC - HGC) experienced the biggest volume of guaranty calls. By the end of 1987, accounts settled amounted to P666 Million.

However, during the first year of President Aquino's administration, the volume of new guarantees drastically increased by 213%, from P203.60 Million in 1986 to P636.74 Million in 1987.

Values generated from the disposition of acquired assets grew by 408%, from P25.0 Million to P127.0 Million in 1987.

President Corazon C. Aquino issued a Memorandum Order designating HIGC as liquidator/controller of Bliss Development Corporation (BDC).

An interim funding facility for HIGC - originated projects under the Community Mortgage Program (CMP) was introduced.

The Cooperative Housing Program was launched. The program aims to encourage a non-traditional scheme for the production of houses by the homeseekers themselves through a cooperative housing association organized for the purpose with technical assistance from HIGC.

HIGC was appointed trustee of the National Government Center for Housing Program.

R.A. 6846, otherwise known as the "Abot-Kaya Pabahay Fund" was passed, and mandated HIGC to administer and control the cash flow guarantee system of the fund with a yearly appropriation of P200 Million for a period of five (5) years.

HIGC Launched the Guaranty Facility for Asset/Mortgage-backed Securitization.

The Municipal Financing Scheme was institutionalized, in accordance with Local Government Code of 1991 which provides that local government units (LGUs) are authorized to issue bonds, debentures, securities, collaterals, notes and other obligations to finance self-liquidating, income-producing development or livelihood projects pursuant to the priorities established in the approved local development plan or the public investment program.

HIGC launched the Urban Renewal Program through Project Securitization. Trust certificates are issued to generate funds for mass housing, urban renewal projects of the national government.

December 1994
R.A. 7835 or the Comprehensive and Integrated Shelter Financing Act was passed. HIGC's capitalization was increased from P1.0 Billion to P2.5 Billion and guaranty capacity was increased from 15x to 20x the net worth of the Corporation.

March 7, 2000
President Joseph Estrada signed R.A. 8763 or the Home Guaranty Act of 2000 amending the HIGC charter and renaming the Corporation as the Home Guaranty Corporation. Capitalization was increased to P50.0 Billion.

The Implementing Rules and Regulations R.A. 8763 also took effect.

HGC Capitalization
Enabling Laws
Authorized Capitalization
Guaranty Capacity
Republic Act (R.A.) 580 1950 P 5 Million -
Executive Order (E.O.) 535 1979 P 1 Billion 15 x the net worth
Republic Act (R.A.) 7835 1994 P 2.5 Billion 20 x the net worth
Republic Act (R.A.) 8763 2000 P 50 Billion 20 x the net worth

March 29, 2000
The Home Guaranty Act of 2000 officially took effect on this day. Home Insurance and Guaranty Corporation's name has been changed to Home Guaranty Corporation.

January 20, 2001
EDSA II installs Gloria Macapagal Arroyo as President of the Republic of the Philippines.

May 12 , 2001
Gonzalo Benjamin A. Bongolan is appointed President of HGC.

February 2002
Creation of the HGC Employees Association (HGCEA).

March 2002
Began the operation of the Commonwealth Market and hired Landseaire Resources and Management Corporation as Administrator.

July 2002
HGC central offices were transferred to Jade Building along Sen. Gil Puyat Ave. Makati City. Being housed under one roof, the Corporation was enabled to pursue full automation and computerized link-up of all units. The Corporation was also able to save P553 thousand in monthly office rentals.

August 12, 2002
The five-year Zero Coupon HGC bonds was over-subscribed, which prompted HGC to exercise its greenshoe option. Total offering was P7bn.

October 2 , 2002
Signing of first Collective Negotiation Agreement (CNA) between the Management and HGCEA.

HGC implements a cost reduction program and saved P42.40 million.

September 16 - October 28, 2003
The officers and staff undertook a series of strategic planning and staff development workshops which culminated into the unveiling of the core values of the Corporation.

Deliberate cost cutting and disengagement from non-revenue generating and extraneous functions , and focusing on core functions lowered the Corporation's personal services costs and other operating expenses by 15%.

January 19 - March 19, 2004
Implemented the Early Separation and Incentive Program (ESIP) as part of its Organizational Restructuring, which resulted in a 70.49% reduction in manpower complement (regular, contractual, and casual employees), translating to P10.22 million in payroll savings per month, a 58.18% reduction.

March 12 , 2004
Initial presentation of the HGC Research Team.

March 2004
Contracted BCD Consulting to prepare the re-organizational plan.

May 11, 2004
Issued P3bn worth of special series bonds as partial payments of GOCCs' and GFIs' guaranty claims.

May 2004
Liberalized guidelines to fast-track asset disposition.

September 6, 2004
Vice President Noli De Castro takes over the reins of the Housing and Urban Development Coordinating Council (HUDCC).

Compliance with Civil Service Commission's (CSC) regulation on eligibilities of officers and staff.

Value of new sales of acquired assets reached P501.23M, 194% higher than the previous year.

Instituting actuarially sound practices, leading to a substantial reduction in defaulting guaranteed accounts. From an average default rate of 9.44% of outstanding guarantees in the four years to 2001, the average is down to 0.075% for 2002 to 2003.

Settled a total of P10.66 billion in guaranty obligations. All unpaid obligations to the private sector have been settled. Remaining unpaid obligations of P7.0 billion are owed entirely to GFIs and GOCC's.

June - August 2005
Formulated (in-house) and implemented a Document Tracking System (DTS) that rationalized the flow of documents in HGC.

August 15, 2005
Approved the provisions of the second CNA between the Management and HGCEA:

  • Operationalized of shuttle service for HGC employees
  • Increased the meal and children allowance
  • Increased the Medical Allowance to P 20,000.00 from P 5, 000.00

November 2005
Hired Isla Lipana-Price WaterhouseCoopers, Phils. As Disposition Manager of HGC Acquired Assets.

November 21, 2005
Awarded to Zeus Networks, Inc., the IT Consultancy, which was able to complete Phase I of the project (IT Audit, Business Process Review and Business Strategy Planning) and developed an ICT Infrastructure Plan.

December 2005
HGC turned over the management of the Commonwealth Market to 3A Boys.

Awarded the long-term lease of the 8,222 sq.m. property at the Villongco area of the National Government Center – Commonwealth Enterprise Zone (NGC-CEZ) along Commonwealth Avenue in Quezon City.

May 12, 2006
Gonzalo Benjamin A. Bongolan was re-appointed for his second term as HGC President.

October 2006
Vice President Noli “Kabayan” De Castro awarded lots and issued Certificates of Award and Occupancy to the residents of Bernabe Subdivision in Bo San Dionisio, Paranaque City , a property owned by the Home Guaranty Corporation (HGC).

November 2006
Converted from the old accounting system to the New Government Accounting System (NGAS).

November 22 and December 8, 2006
Auction of P12.0B 7-year HGC Zeroes.

December 22, 2006
Initiated the implementation of the corporate reorganization.

February 2, 2007
HGC hosted the 1st Philippine Housing Finance Forum at the Manila Peninsula Hotel , which was attended by more than 300 guests with positive feedback from the attendees.

March 2007
Approval of the implementation of the Document Filing System (DFS).

August 20, 2007
The 1st ever State of the Corporation Address (SOCA) in the history of HGC was delivered by President Gonzalo Benjamin A. Bongolan.

December 2007
The long-term lease of Riverside Area (NGC-CEZ) along Commonwealth Avenue in Quezon City was awarded to 3A Boys Corporation/Pinoy Commonwealth Market Operators Inc.

February 12, 2008
The Second Philippine Housing Finance Forum was organized and hosted by HGC at the Manila Peninsula with the Theme: "Linking Housing Finance with the Capital Markets through Securitization."

The Second Housing Finance Forum panelists were composed of Asian and international experts on securitization, ratings and risks management, and accounting standards; namely: Warren Lee, head of Standard Chartered Bank's Asset - Backed Securitization / Asia-Global Markets; Fitch Ratings' Senior Director Stan Ho; international investment banker Stella Tansengco-Schapero; Asian Developmen Bank's Christine Engstrom; and Wilson P. Tan, head of SGV's international Accounting Standards.

Vice President and HUDCC Chairman Noli L. de Castro keynoted the second major national housing finance conference and discussed "Securitization as a Key Pillar in the Attainment of the National Shelter Program Objectives." HGC President Gonzalo B.A. Bongolan gave the participants a comprehensive Update on the Philippine Housing Program, Market and Opportunities, a Brief on the US Sub-Prime Contagion, and past and prospects of securitization in the country, as part of his presentation entitled "Prospects for Securitization in the Philippine Housing Finance System: Lessons, Obstacles, Possibilities."

Over 200 delegates from international and Philippine banks and financial institutions, investment bankers, housing and home developers nationwide, officials of key government shelter agencies, and industry leaders participated in the HGC-organized annual national housing finance conference.

September 8, 2008
On the third year of his second term as President of HGC, Mr . Gonzalo B. A. Bongolan delivered his Second State of the Corporation Address (SOCA) before the employees of the Corporation, guests, and select officials of key government housing agencies at the 4 th floor of the HGC offices in Makati City .

In a no-holds-barred way, President Bongolan, who was first appointed chief executive of the premier housing guaranty firm in 2001, gave an objective assessment and lowdown on the general state of affairs of the HGC , notably on its Operations, Financial Performance, Corporate Re-Engineering and Prospects for the near-term.

Mr. Bongolan's major re-engineering initiatives include the downsizing of HGC manpower by about 70% through the Early Separation Incentive Program (ESIP) starting in January 2004, saving about P10 Million monthly or over P100 Million yearly in salaries/benefits and related expenses.

During his first term (2001-2006), he also led the successful and first-ever issuance of the PhP 7Billion HGC Zero-Coupon Bonds in August 2002, and subsequently, a PhP3 Billion Special Series Debentures in May 2004, to raise new money / capital, and to finance HGC's maturing obligations, notably to government financial institutions. These liabilities were incurred entirely during the previous Administrations. His twin moves were also aimed at restoring the integrity of the guaranty firm, and boosting its capability to support the government's housing program.

In the past several years, HGC has likewise embarked on an aggressive yet prudent liquefaction/ selling of acquired assets, as instructed by HUDCC Chair/ Vice President Noli L de Castro, to improve the Corporation's balance sheets, and unleash, optimize the value of its fixed assets.

In his Second SOCA, Mr.Bongolan articulated his commendations for the employees' noteworthy accomplishments and receptive attitude; as well as his recommendations to all the departments/units of the Corporation to continue “outperforming” themselves and achieve Excellence, both to fulfill the HGC mandate in the workplace, and for their own professional/ career advancement.

As a government owned and controlled corporation (GOCC), HGC is in the eighth year of its second 50-year corporate life. Established as Home Financing Commission in 1950 by Republic Act 580 during the incumbency of Philippine President Elpidio Quirino, its new Charter, Republic Act 8763 or the Home Guaranty Corporation Act, was signed into law on March 7, 2000.

June 7, 2010
HGC was awarded as one of the year’s Laureates by the Computerworld Honors Program during the 22nd Annual Laureates Medal Ceremony and Gala Awards Evening at the Andrew W. Mellon Auditorium in Washington, D.C., U.S.A.

July 20, 2010
Vice President Jejomar Binay was sworn-in as chairman of the Housing and Urban Development Coordinating Council (HUDCC)

September 17, 2010
President Benigno S. Aquino III appoints Atty. Manuel R. Sanchez as HGC President

October 8, 2012
HGC launched a nationwide program to boost lending by banks and borrowings by developers and home buyers.  Dubbed “B-B-B” (Bankers-Builders-Buyers), the program aims to create a pool of banks to lend developmental loans to home builders for sale to qualified buyers. This will realign Banks, Builders and Buyers in a Housing Circle fully complementing each others’ functions and needs.

November 15, 2012
HGC and the Manila Harbour Centre Industrial Park Association, Inc. completed the takeover of the management of the common areas, utilities and facilities of the 79 hectare Manila Harbour Center (MHC).

March 15, 2013
TÜV Rheinland, a pioneer international certification body in the Philippines, audited and confirmed HGC’s core processes: Guaranty Application, Guaranty Enrollment and Guaranty Call  as being in conformance with the international standard for Quality Management System (QMS). Thus, an ISO 9001:2008 certification was conferred to HGC.   This attests to the corporation’s commitment to quality service and customer satisfaction.   The certificate was unveiled during the HGC’s 13th Charter day celebration on April 5, 2013, which was graced by Vice President Jejomar C. Binay.

April 4, 2013
The Regional Trial Court (RTC) in Makati City has awarded state-owned HGC receivership over the 285 million common shares of Harbour Centre Port Terminal Inc. (HCPTI).