HGC History and Milestones



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.


November 17, 1955

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.

1983

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).

1985-1987

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.

 

1988

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

 

1989

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

1990

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.

1993

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 30x 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
Year
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.

 

2002

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.

 

2003

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).

 

2004

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 held at the Manila Peninsula Hotel.