15 May 2012 MS. MA. ANA R.

OLIVEROS President Social Housing Finance Corporation 837 Paseo De Roxas, BDO Plaza, Salcedo Village, Makati City Dear Madame: This refers to the Community Mortgage Program (CMP) application of the Panabo Home Settlers Association, Inc. (PANHOSA) before the National Home Mortgage Finance Corporation (NHMFC), with Allied Homes Development Foundation, Inc. (AHDFI) as its originator. Pending the release of the loan proceeds from the NHMFC, AHDFI applied for an interim financing being offered by the Presidential Management Staff (PMS)1. This was granted by the PMS and a check worth Three Million Four Hundred Forty One Thousand Seven Hundred Ninety Eight Pesos (3,441,798.00Php) was released. This was used in paying Milo and Lourdes Floresca, the owners of the parcel of land on which the PANHOSA members are residing. Thereafter, a Memorandum of Agreement2 was executed between PMS and AHDFI stating that upon the release of the proceeds of the loan, the same shall be automatically released in favor of the PMS. However, AHDFI ceased to exist and has concealed and destroyed all vital documents pertaining to the said application. This consequently prevented the newly appointed originator of PANHOSA, Home Insurance and Guaranty Corporation (HIGC), to perform as such. On 09 February 2011, a Court of Appeals decision3 attained finality on which the said appellate court held that the: (a) PANHOSA is the true and rightful owner of the land on which they are residing; (b) AHDFI is enjoined from proceeding with the foreclosure; (c) PANHOSA, through its new originator, should proceed with the dispatch in complying with the requirements for NHMFC loan; and (d) NHFC should immediately release the proceeds of the proposed loan to the PMS, upon compliance by PANHSOA and its new originator.

Former President Corazon Aquino, using her social fund and through the PMS, set up an interim financing fund because there have been difficulties in implementing the CMP. There were instances when landowners required substantial downpayments for lands identified for CMP and imposed deadlines for payments of the agreed prices. 2 Please see attached Memorandum of Agreement 3 Please see attached Court of Appeals Decision

However, PMS still remains unpaid as of this date. In view of the forgoing, we would like to seek the assistance of your Office 4 in order for us to proceed with the CMP of PANHOSA and for us to fully claim our receivables. And although, there has been a proposal on the side of PANHOSA5 to directly pay us, we are of opinion that it is not within our mandate to implement a housing loan and a directpayment scheme will defeat the very essence of CMP. Thank you and hoping for your kind consideration.

Respectfully yours,

ATTY. JOSE WILFRIDO S. OCA Assistant Secretary, Legal Affairs

4 5

By virtue of E.O. 272, s. 2004, SHFC is the new agency in charge of the CMP. Please see attached letter dated 23 February 2012