The Abot-Kaya Pabahay Fund was created pursuant to R.A. 6846 or the Social Housing Support Fund Act, with the objectives of enhancing the affordability of low-cost housing by low-income families and providing developmental financing for low-cost housing projects thus eliminating risks for the funding agencies involved in housing.

The program was devoted to provide amortization support, expedite the development of land into suitable sites for social housing by providing developmental financing to developers of low-cost housing projects, and establish a strong guarantee system to ensure viable cash flow for the funding agencies involved in housing.

The program is divided into three components namely:

• Amortization Support – A qualified borrower shall be eligible to apply for administration support.  Eligible borrowers with the appropriate family income shall be entitled to a monthly amortization support for the first five years of the loan amortization period.
• Developmental Financing – Under this component, proponents of low-cost housing projects shall be entitled to a developmental financing loan not exceeding 80% of the entire project cost.

Both the Amortization support and Developmental financing components of the Abot Kaya pabahay Fund are administered by the Socialized Housing Finance Corporation (SHFC).

• Cash Flow Guarantee – This program, with Home Guarantee Corporation (HGC) (www.hgc.gov.ph) as trustee and administrator, seeks to eliminate credit risk for funders of socialized housing loans.