TRIPARTITE AGREEMENT

KNOW ALL MEN BY THESE PRESENTS:

This Tripartite Agreement (“Agreement”) is made and entered into this

in , Philippines, by and between:

DEPARTMENT OF TRANSPORTATION, a national government agency

organized and existing under and by virtue of the laws of the Republic of the
Philippines, with principal office and address at the DOTr Building, Pinatubo St.
Corner, Osmeña St., Clark Freeport Zone, Mabalacat, Pampanga, represented
herein by its Undersecretary for Railways, TIMOTHY JOHN R. BATAN,
hereinafter referred to as “DOTr”;

SOCIAL HOUSING FINANCING CORPORATION, a government-owned and

controlled corporation, created under Executive Order No. 272, Series of 2004,
with principal office at 5th Floor, BDO Plaza, 8737 Paseo De Roxas, Makati City,
represented herein by its President, ATTY. ARNOLFO RICARDO B.
CABLING, hereinafter referred to as “SHFC”;

-and-

SARAH VILLAGE HOMEOWNERS ASSOCIATION, INC., an association

organized and existing under and virtue of the laws of the Republic of the
Philippines, with principal office address at Lot 19 Sarah Village, Ugong,
Valenzuela City, Metro Manila, Philippines, represented by its Chairperson, MS.
MAUREENIA D. DUCUSIN, duly authorized by Association as provided in the
Secretary Certificate dated , (Copy attached hereto as annex “A”)
hereinafter referred to as “ASSOCIATION”;

The foregoing shall collectively referred herein as the “PARTIES”.

WITNESSETH:

WHEREAS, the DOTr is implementing the Metro Manila Subway Project (MMSP) with
available funds of Two Billion Five Hundred Three Million Two Hundred Five Thousand Pesos
(Php2,503,205.00) as provided in the General Appropriations Act for the Fiscal Year 2018 or
Republic Act 10964;

WHEREAS, SHFC is mandated to be the lead agency to undertake the social housing
programs of the government that cater to the formal and informal sectors in the low-income
bracket and shall take charge of developing and administering social housing schemes
particularly the Community Mortgage Program (CMP), Abot Kaya Pabahay Fund (AKPF)
Program, and High Density Housing (HDH) Projects;

WHEREAS, the ASSOCIATION with twenty (20) member-beneficiaries applied for a

CMP loan with SHFC in 2016 in the amount of One Million Five Hundred Nineteen Thousand
One Hundred Sixty-One Pesos and Eight Centavos (Php1,519,161.08) to purchase a parcel of

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land located in Lot 17, Barangay Ugong, Valenzuela City, containing an area of 734 square
meters more or less, covered by TCT No. 013-2018002401, registered under the name of Sarah
Village Homeowners Association, Inc.;

WHEREAS, the twenty (20) member-beneficiaries of the ASSOCIATION occupying

the parcel of land covered by TCT No. 013-2018002401 will be affected by the construction of
the Metro Manila Subway Project depot in Barangay Ugong, Valenzuela City and there is an
urgent need to relocate them;

WHEREAS, the ASSOCIATION desires to relocate to a new permanent site (new site)
within the city of Valenzuela with almost the same payment scheme as the existing CMP loan
arrangement with SHFC specifically with individual award of lots;

WHEREAS, pursuant to the Resettlement Action Plan (RAP) of MMSP, the

ASSOCIATION’s member-beneficiary families will be considered as affected families entitled
to receive the replacement cost for structures (and other improvements) and current market value
of the land as just compensation pursuant to Republic Act No. 10752, otherwise known as An Act
Facilitating the Acquisition of Right-of-Way, Site, or Location for National Government
Infrastructure Projects;

WHEREAS, the ASSOCIATION officers hereby commits and warrants that it is duly
authorized to represent its members-beneficiaries who are to be resettled under the MMSP RAP
stipulations, which includes the financing for the acquisition of developed lots and completed
housing units for their permanent replacement site;

WHEREAS, the ASSOCIATION being the current owner of TCT No. 013-2018002401
has an outstanding CMP loan amortization balance in the amount of One Million Four Hundred
Twenty-One Thousand and Four Pesos and Seventy-Four Centavos (PhP 1,421,004.74) to the
SHFC as of 28 December 2018. A Certified True Copy of Statement of Account of the
ASSOCIATION is hereto attached as Annex “B”;

WHEREAS, the DOTr will pay the outstanding amortization balance of the
ASSOCIATION to the SHFC as full payment of the CMP loan; and the remaining balance of the
assessed current market value payment thereof will be paid to the ASSOCIATION by the DOTr;

WHEREAS, the individual-family members of the ASSOCIATION shall receive

payments for the affected structures (and other improvements) subject to the DOTr’s
replacement cost appraisal;

NOW THEREFORE, for and in consideration of the manual covenants and obligations
hereinafter provided, the parties have agreed as they hereby agree to undertake the following:

ARTICLE I
SCOPE OF THE AGREEMENT

This TRIPARTITE AGREEMENT shall cover the DOTr’s payment of the current market
value of the 734-sqm parcel of land situated in Lot 19 Sarah Village, Ugong, Valenzuela City
particularly described in TCT No. 013-2018002401 mortgaged in favor of the SHFC and the
replacement cost value for affected structures (and other improvements) in favor of the
ASSOCIATION, all in accordance with the MMSP RAP and RA 10752.

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 ARTICLE II
RESPONSIBILITIES OF PARTIES

1.1 The ASSOCIATION shall:

a. Submit to DOTr its registration and other documents necessary for the assessment and
appraisal of its affected structures and other improvements;

b. Provide adequate information to its members/beneficiaries on the provisions of the Lease

Purchase Agreement between the ASSOCIATION and the member-family beneficiaries,
the Loan Agreement it entered with SHFC as well as this Agreement it has entered into
on behalf of the member’s beneficiaries; and

c. Submit an undertaking signed by each member-beneficiary families indicating that they

shall voluntarily vacate together with members of their household their awarded land and
consent to the demolishment of all their structures in Brgy. Ugong, Valenzuela City thirty
(30) days upon DOTr’s payment of the just compensation of the current market value of
their affected structures and other improvements.

1.2 The SHFC shall:

a. Provide the DOTr all the necessary documents pertinent to the financing of the
acquisition of TCT No. 013-2018002401 in accordance with its notarized Loan
Agreement with the ASSOCIATION;

b. Receive the payment from the DOTr, as full payment of the ASSOCIATION’s
outstanding CMP loan with SHFC based on Annex “B” of this Agreement;

c. Expedite the release of the certificate title in the custody of SHFC, particularly TCT No.
013-2018002401, in favor of the ASSOCIATION and DOTr after payment of the
outstanding CMP balance of the ASSOCIATION; and

d. Offer the ASSOCIATION the option to avail of another loan in any of its socialized
housing programs waiving its rules on double availment considering that the
ASSOCIATION was affected by the DOTr project;

1.3 The DOTr shall:

a. Pay to the SHFC, as full payment of ASSOCIATION’s CMP loan, the current
amortization balance of the ASSOCIATION based on the Annex “B” of this Agreement;

b. Pay to the ASSOCIATION the remaining balance of the assessed current market value of
the land after its payment of the ASSOCIATION’s current CMP loan amortization
balance to SHFC;

c. Finance the replacement cost for the affected structures and current market of the 734-
sqm. parcel of land in favor of the member-family beneficiaries and SHFC respectively,
in accordance with the guidelines set forth in the MMSP RAP and RA No. 10752, to
ensure full compensation for the project affected families; and

d. Provide funds to the ASSOCIATION’s chosen shelter agency in their option to rebuild a
permanent relocation plan.

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 ARTICLE III
IMPLEMENTATION

The Parties, together with other implementing partners and government agencies, shall
form coordination committees, work groups, and other platforms for close coordination, and
shall communicate regularly and systematically to promote efficient and effective project
management and issues.

ARTICLE IV
REPRESENTATION AND WARRANTIES

The parties represent that they have the requisite power, authority and capacity to enter into
this Agreement and perform their obligations and undertakings according to the terms and
conditions set forth.

The parties agree to sign, execute, and deliver such other agreements as may be necessary in
furtherance of this Agreement and its objectives.

The parties agree to represent and defend their respective agencies should an action arise
with regard to this Agreement and its implementation before any court, tribunal, or quasi-judicial
agency.

The recitals in the WHEREAS Clauses of this Agreement shall form an integral part of this
Agreement.

This Agreement shall be binding upon the parties, their respective heirs, and assigns.

ARTICLE V
AMENDMENTS

This Agreement may be amended and modified only by means of a written instrument
executed by and among the Parties and signed by their respective duly authorized
representatives.

In case the number of Project Affected Families (PAFs) will increase, the same shall be
covered by a supplemental Memorandum of Agreement (MOA) duly signed by the parties under
the same terms and conditions of this agreement. Provided that, in case of reduction of PAFs as
per verified list, the excess fund shall be returned to the DOTr.

ARTICLE VI
TERMINATION/RESCISSION CLAUSE

The DOTr reserves the right to terminate or rescind this Agreement upon breach of any
provisions hereof by serving a written notice of termination or rescission at least fifteen (15)
days prior to the actual termination or rescission. Any amount shall, after proper accounting, be
returned to the DOTr after such termination or rescission.

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 ARTICLE VII
EFFECTIVITY

This Agreement shall take effect immediately upon signing by both parties and shall
remain valid and effective until the completion of the resettlement of the Project Affected
Families (PAFs).

IN WITNESS WHEREOF, we have hereunto set our hands this __ day of

, 2018 at .

TIMOTHY JOHN R. BATAN MAUREENIA D. DUCUSIN

Undersecretary for Railways, DOTr President, ASSOCIATION

___________________________
ATTY. ARNOLFO RICARDO B. CABLING
President, SHFC

Signed in the presence of:

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 ACKNOWLEDGMENT

Republic of the Philippines )

______) S.S.

BEFORE ME, a Notary Public for and in _________ City on this __ day
______, 2018, personally appeared:

Competent Date Issued Place Issued

NAME Evidence of
Identity
ARTHUR P. TUGADE
ATTY. ARNOLFO RICARDO B.
CABLING
MAUREENIA D. DUCUSIN

known to me and to be known to be the same persons who executed the TRIPARTITE
AGREEMENT consisting of SIX (6) pages including the page in which this Acknowledgement
is written and duly signed by them and their witnesses on each and every page hereof, and that
the same is their free and voluntary act, as well as that of the corporations which they represent.

NOTARY PUBLIC

Doc. No. :
Page No. :
Book No. :
Series of 2018