Community Mortgage Program (CMP) Helps the Poor Access Homeownership in the Philippines

The Community Mortgage Program (CMP) is a pioneering social housing initiative in the Philippines that has significantly impacted the lives of many poor urban households. Launched in 1988 by the National Home Finance Corporation, the CMP aims to provide affordable housing solutions to low-income families, particularly those living in blighted and depressed areas. By allowing organised communities to borrow as a group to purchase land, using the land itself as collateral, the CMP has enabled many to secure property titles and improve their living conditions.

The CMP was established in the aftermath of the People Power Revolution of 1986, a period marked by significant social and political changes in the Philippines. Initially, the program focused on helping squatter communities legitimise their status by purchasing the land they occupied. This innovative approach aimed to address the housing needs of the urban poor while fostering community development and self-reliance.

In 1992, the CMP was integrated into the National Shelter Program under Republic Act Number 7279, the Urban Development and Housing Act. This legislative move further solidified the program’s role in national housing policy. In 2004, the Social Housing Finance Corporation (SHFC) was created through Executive Order Number 272, and the CMP was placed under its control. This transition aimed to enhance the program’s efficiency and reach, leveraging the SHFC’s resources and expertise.

The CMP offers loans to legally organised community associations, allowing them to purchase land collectively. The terms of these loans are designed to be accessible to low-income families. Communities can receive loans with a maximum repayment period of 25 years, at an interest rate of six percent. This structure ensures that the financial burden on individual families remains manageable, making homeownership a viable option for those who might otherwise be excluded from the housing market.

A unique aspect of the CMP is its community ownership model. Unlike traditional housing programs that focus on individual property ownership, the CMP promotes collective ownership of land and housing. This approach fosters a sense of unity and collective responsibility among community members, leading to better maintenance of properties and stronger social cohesion. Beneficiary groups must be legally organised and registered with the Home Insurance Guarantee Corporation (HGIC) before they can apply for a loan. Once approved, these groups receive technical assistance in developing their community plans, ensuring that the projects are sustainable and meet the needs of the residents.

Since its inception, the CMP has empowered thousands of families by providing them with secure tenure and the opportunity to own their homes. By 2001, the program had assisted 106,273 families in establishing 854 communities. This number has continued to grow, with over 300,000 households benefiting from the CMP as of 2025. The program has not only improved living conditions but also fostered a sense of pride and ownership among community members.

The CMP’s community ownership model encourages beneficiaries to develop livelihood programs and maintain their facilities, promoting economic self-reliance and sustainability. This approach has led to the creation of vibrant, self-sufficient communities where residents actively participate in decision-making processes. The program has also contributed to reducing urban poverty by providing stable housing and improving overall living standards.

Despite its successes, the CMP has faced challenges. Critics argue that the program’s financial sustainability is threatened by budget cuts and crises within the National Housing Mortgage Finance Corporation. Additionally, some urban poor organisations, such as Kalipunan ng Damayang Mahihirap (Kadamay), have pointed out that many beneficiaries struggle to repay their loans due to unstable incomes. These concerns highlight the need for ongoing evaluation and adaptation to ensure the CMP remains effective and responsive to the needs of its beneficiaries.

Looking ahead, the CMP must continue to innovate and expand its reach to address the growing housing needs of the Philippines’ urban poor. Collaboration with local government units (LGUs) and other stakeholders is crucial in this effort. The SHFC has already partnered with over 100 LGUs to implement CMP projects, and this number is expected to grow. Additionally, the program may explore new financing models and partnerships to enhance its financial sustainability and impact.

The Community Mortgage Program stands as a testament to the power of community-led initiatives in addressing complex social issues. By providing affordable housing solutions and fostering collective ownership, the CMP has transformed the lives of thousands of Filipino families. As it continues to evolve, the program holds the promise of creating more inclusive, sustainable, and resilient communities across the Philippines.

For more information on the Community Mortgage Program and how to apply, visit the Social Housing Finance Corporation’s website.