Providing for the implementation, policies & guidelines of I.C. Livelihood Assistance Program

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WHEREAS, Section 289 of the Local Government Code of 1991 states that “local government units (LGUs) shall have an equitable share in the proceeds derived from the utilization and development of the national wealth within their respective areas, including sharing the same with the inhabitants by way of direct benefits”;

WHEREAS, Section 294 of the Local Government Code also mandates that “the proceeds from the share of LGUs shall be appropriated by their respective Sanggunian to finance local development and livelihood projects”;

WHEREAS, City Ordinance No.00-3793, (which repealed City Ordinance No. 3359, series of 1998 which in turn deferred and suspended the implementation of City Ordinance No. 3233, series of 1998) sets into motion the electrification of the nine (9) remaining unenergized barangays in the hinterlands, by establishing Trust Fund, 80% of which constitutes the Power Need Amelioration Fund, while the remaining 20% constitute the Livelihood Fund;

WHEREAS, in its effort to boost livelihood projects of associations and cooperatives, the City Government of Iligan, through Executive Order No. 087, series of 1995, created the City Livelihood Assistance Committee (CLAC), and believing that the program is beneficial to the city constituents, the City Council on October 19,1995 adopted City Ordinance No. 2645, series of 1995, entitled; “An Ordinance Providing for the Implementation, Policies and Guidelines of Iligan City Livelihood Assistance Program in Line with the Provisions of Section 34, 35 and 36 of the Local Government Code of 1991;

(Page 2 of Res. No. 05-189)

WHEREAS, to systematize and strengthen the institutionalization of CLAC, the City Council passed City Ordinance No. 2708, series of 1995, amending certain provisions and items of City Ordinance No. 2645, series of 1995;

WHEREAS, inasmuch that the provisions of City Ordinance No. 2708, couldn’t answer to the need of that time, during its session on July 24, 2001, the Sangguniang Panlungsod adopted City Ordinance No. 01- 4003;

WHEREAS, with the change of the administration, there is now a need to amend certain provisions of City Ordinance No. 01- 4003, to suit the programs and goals of the new administration;

WHEREFORE, on motion of Member Vicente F. Belmonte, Jr., duly seconded by Members Providencio P. Abragan, Sr. and Ruderic C. Marzo;

BE IT RESOLVED, AS IT IS HEREBY RESOLVED, By the Sangguniang Panlungsod of Iligan, that the following City Ordinance be, as it hereby adopted and approved:



Be it ordained by the Sangguniang Panlungsod of Iligan in its session assembled, that:

SECTION 1.- Section 1 of City Ordinance 01-4003, is AMENDED as the same is herebyAMENDED by way of INCREASING the number of members in the CLAC, and for other functions, to read as follows:

“ Section 1. – Roles, Composition And Responsibilities of the Different CLAP Implementing Bodies:

“A. CITY LIVELIHOOD ASSISTANCE COMMITTEE (CLAC) – CLAC is responsible in implementing the City Livelihood Assistance Program by assisting Non-Governmental Organizations, Self-Help Groups in the case of individual borrowers and Cooperatives by providing them with financial and technical assistance. As the policy-making body, CLAC is empowered to set direction and prioritize projects. CLAC is likewise empowered to approve or disapprove project for funding. In order to boost its lending capability, the City Livelihood Assistance Committee (CLAC) may enter into a share-financing arrangements with other lending institutions, provided in the pursuant thereof, it has authority from the Sangguniang Panlungsod.
(Page 3 of Res. No. 05-189)


A. City Livelihood Assistance Committee (CLAC)

1. City Mayor – Chairman
2. SP Member- Chairman, Committee
Cooperatives and Livelihood- Vice Chairman


3. Department Head, City Cooperative Development and Livelihood Office (CDLO)

4. Chair, Chamber of Commerce Industries Foundation in Iligan, Inc. (CCIFII)

5. City Budget Officer

6. An officer from the Iligan City Cooperative Development Council (ICCDC)

7. Representative from the Department of Trade and Industry

8. City Treasurer

9. City Accountant

10. City Legal Officer

11. Department Head, City Social Welfare Development Office

In case of non-attendance of the personnel concern, he/she should be represented by an employee with regular status. There should be representative from the Technical Working Group during CLAC meeting to act as secretariat.

B. Technical Working Group (TWG) – The TWG is responsible in directly dealing clients such as; orientation regarding the program, receiving applications, project proposals and other documents and the daily operations of the program. It shall also be responsible in the evaluation of project proposals and for the subsequent recommendation for the approval/disapproval of project proposal. It shall also monitor projects implementation.Further, to achieve smooth collections, TWG is deputized to collect loan repayments.


1. Staff of the City Development and Livelihood Office – CDLO Head shall act as Chairman

(Page 4 of Res. No. 05-189)

2. Representative from the CSWD

C. Secretariat – The Secretariat shall assist the Technical Working Group in records keeping, evaluation and monitoring of projects, processing of documents and other papers, the provisions of technical assistance to program beneficiaries, and submission of periodic reports to CLAC to monitor fund releases and implementation of projects.

The staff of the City Cooperative Development and Livelihood Office (CDLO) shall act as Secretariat and as such shall be responsible in records keeping, preparation of minutes, prepare invitations for meeting, prepare agenda and coordinate with the Technical Working Group.”

SECTION 2. – This new section is hereby inserted to read as follows:

“Implementing Guidelines for the Program. – The CLAC-Technical Working Group and the SEA-K Committee shall apply the implementing guidelines set by the City Livelihood Assistance Program and Administrative Order 168 relative to the application of SEA-K beneficiaries

SECTION 3.- Section 3 of City Ordinance 01-4003, is AMENDED as the same is herebyAMENDED, to read as follows:

“Section 3. – Status of SEA-K Committee. – The SEA-K Committee which was created by virtue of Administrative Order 168 and by an Executive Order shall continue to operateunder the administration of CSWD. However, the livelihood proposals for funding coming from their beneficiaries, the marginalized groups such as the disadvantaged women, needy family heads, persons with disabilities and out- of-school youth and other qualified beneficiaries shall be forwarded to the CLAC for endorsement to the City Mayor”.

SECTION 4.- Section 4 of City Ordinance 01-4003, is AMENDED as the same is herebyAMENDED, to read as follows:

“Section 4. – Creation of the City Livelihood REVOLVING Trust Fund – TheAnnual Twenty Percent (20%) livelihood funds of the city’s share in the utilization and development of the National Wealth, and all other monies which the City Government of Iligan stands to receive in the future from any entities, private or public, for/or in support of livelihood projects, proceeds from sales coming from the livelihood projects of the city and payments of CLAP loans, shall be integrated to comprise the City LivelihoodREVOLVING Trust Fund, under a separate Account Code;”

(Page 5 of Res. No. 05-189)

SECTION 5.- Section 5 of City Ordinance 01-4003, is AMENDED as the same is herebyAMENDED, to read as follows:

“Section 5. Annual Share of SEA-K in the Twenty Percent (20%) Livelihood Funds Derived from the Utilization of the National Wealth – Starting Year 2005, and the years thereafter, Ten Percent (10%) of the Twenty Percent (20%) Livelihood Funds, which is portion of the city’s share from the Utilization of the National Wealth, shall be appropriated as share for the Self Employment Assistance-Kaunlaran (SEA-K) Program. The amount shall be deposited to SEA-K’s Trust Fund.”

SECTION 6. – Section 6 of City Ordinance 01-4003, is AMENDED as the same is herebyAMENDED, to read as follows:

“Section 6. – Management of City Livelihood Revolving Trust Fund and the SEA-K Funds. – The disbursement of the City Livelihood Revolving Trust Fund shall be monitored by the CLAC, monitoring and supervision of the project shall be the responsibility of the TWG.

The SEA-K Committee shall monitor the disbursement of funds deposited in the SEA-K Trust Fund. Supervision of projects recommended and approved by CSWD and funded out of the SEA-K’s funds shall be made by the City Service and Welfare Development (CSWD).”

SECTION 7.- Section 7 of City Ordinance 01-4003, is AMENDED as the same is herebyAMENDED, to read as follows:

“CRITERIA OF BORROWERS -Credit Assistance from the City Livelihood Assistance Program is opened to all qualified Non-Governmental Organizations (NGOs), Governmental Organizations, People’s Organizations, Self-Help Groups, Private Organizations, and Cooperatives provided that they meet the following requirements:

“A. Institutional

“1. Registered with the Securities and Exchange Commission or the Cooperative Development Authority (CDA) or any other
appropriate agency empowered by law.

2. Have operating experience of at least one (1) year. This may be waived,
however, if the livelihood project undertaken by the borrower is under supervised credit by either the CDLO, CSWD, CVO or CAG

(Page 6 of Res. No. 05-189)

3. Have a Management Committee/Board which meets once a month;

4. Shall submit a Resolution of the board/association to apply for livelihood creditassistance;

5. The project shall be undertaken in Iligan City (whose beneficiaries shall also be residents of Iligan City);

6. The Project Proposal submitted is viable on the
basis of technical, financial, managerial and marketing consideration, except for SEA-K;

B. Self-Help Groups

1. Shall reside in same barangay

2. At least of legal age

3. Having been in business in any form for at least six (6) months

4. The project shall be implemented in the barangay where the borrower resides

5. Willing to form an association/coops

6. The project will be supervised by CDLO personnel

SECTION 8. – Letters (f), (i) and (l) of Section 8 of City Ordinance 01-4003, is DELETED as the same is hereby DELETED en toto. The following provisions under the same Section of City Ordinance No. 01-4003 are also modified to readas follows:

“Selection Criteria Used for Projects – The following criteria shall be used in selecting beneficiaries for funding. The following criteria while neither controlling nor fully measuring the selection of projects for funding, indicate the character of the reasons considered:

a. The project will benefit a greater number of people at relativelylesser cost;

b. Agricultural projects that address the food security problem of the city but with reasonable Return On Investments (ROIs), shall be considered.

(Page 7 of Res. No. 05-189)

c. Projects that complement agricultural development such as production of farm tools, food processing, manufacturing, crops and livestockproduction and utilization of excess agricultural by-products, (marketing/trading, etc.);

x x x x

e. Fifteen Percent (15%) of the resources of the group either in the form of labor, technical support, administrative cost, materials, existing assets or cash) shall be put up as counterpart/ contribution., except SEA-K beneficiaries;

x x x x

j. Projects that will process, utilize, manufacture and add value to the indigenous materials in the area;

k. Projects that will support the marketing and distribution of locally produced and manufactured goods and indigenous materials for the local and foreign markets;”

SECTION 9. – Section 9 of City Ordinance 01-4003, is AMENDED as the same is hereby AMENDED, to read as follows:

“Section 9. – Documents Required – The following documents are required in applying loans from CLAP.

A. For Institutional Applicants:

1. Project Proposal /Business Plan;

2. Application Form;

3. List of Members with their corresponding capital /contribution to the association/coops and their addresses;

4. Certificate of Registration with SEC, CDA or any other appropriate agency approved by law;

5. Proof of Active Operation, satisfying at least three of the five criteria:

a. Minutes of Meeting of at least four (4) Board Meetings

(Page 8 of Res. No. 05-189)

b. Barangay Captain Certificate certifying that the proponent has been existing for at least six (6) months

c. Have members regularly paying annual/ monthly dues or capital

d. Proof of Programs/Projects launched

6. Notarized Board Resolution authorizing representative of the borrower to incur indebtedness with CLAP

7. Evidence of Availability of counterpart (notarized)
8. Latest Notarized Financial Statement

9. Map/Sketch of the Project Site

10. Certificate of Good Standing from creditor, if any

11. Pictorial documentation of the project site

B. For Self-Help Groups:

1. Barangay Captain Certificate certifying that the borrower/s are bonafide residents of the barangay for at least six (6) months prior to loan assistance application

2. Residence Certificate and other requirements deemed necessary

3. Simplified Business Plan of the project proposal.”

SECTION 10.- Section 10 of City Ordinance 01-4003, is AMENDED as the same is herebyAMENDED, to read as follows:

“Section 10. – Uses of CLAP Loans – proceeds from CLAP loan shall be used as working capital, procurement of capital investment or fixed assets such as small machineries and raw materials, etc. In no way shall the loan granted be used to buy land.This provision apply to both Institutional and Self-Help Borrowers.”

(Page 9 of Res. No. 05-189)

SECTION 11.- Section 11 of City Ordinance 01-4003, is AMENDED as the same is herebyAMENDED, to read as follows:

“Section 11. – Coverage and Scope of the Project – The City Livelihood Assistance Program shall cover the Cooperative Enterprise and Livelihood Development Program of the CDLO and the SEA-K undertaken by the CSWD and all other livelihood projectsfunded by the City Government of Iligan and its loan proceeds from the City Livelihood Assistance Program shall be used and implemented only within Iligan City.

SECTION 12.- Section 12 of City Ordinance 01-4003, is AMENDED as the same is herebyAMENDED, to read as follows:

“Section 12. -Lending Terms – The lending terms granted by CLAP to qualified borrowers shall be as follows:

A. Institutional Loan

– The maximum loanable amount is One Million Pesos (P1,000,000.00) only payable in two (2) years. Loans for agricultural projects both apply to short and long-term crops/ projects. The whole amount shall be released in full and shall carry a four percent (4%) interest per annum at diminishing balance.

B. Self-Help Groups Loan

– The minimum loanable amount is Five Thousand Pesos (P5,000.00) and maximum amount of Twenty Thousand Pesos (P20,000.00) only per member of a Self-Help Group. This will cover any self-help projects. The loan shall carry a four percent (4%) interest per annum at diminishing balance.”

SECTION 13. – Section 13 of City Ordinance 01-4003, is AMENDED as the same is herebyAMENDED, to read as follows:

“Section 13. – Availment of the Next Loan – Borrower/s may avail the next round of loan when it has already paid 75% of the previous loan and applicable to both institutional and Self-Help Groups. This will be subject to the evaluation and recommendation of the TWG”.

SECTION 14.- Section 14 of City Ordinance 01-4003, is AMENDED as the same is herebyAMENDED, to read as follows:

“ Section 14. – Interest – Qualified borrower can re-lend the loan proceeds to their members with an interest rate of not more than 1% a month (on the remaining balance) to cover personnel cost and over-head expenses.”
(Page 10 of Res. No. 05-189)

SECTION 15.- Section 15 of City Ordinance 01-4003, is AMENDED as the same is herebyAMENDED, to read as follows:

“ Section 15. – Repayment/Amortization Schedule – Loans shall be paid within two (2) years with six (6) months grace period from the date of release. Repayment of loans and interest earned from its operation, and all other income from City Livelihood Trust Funds shall be deposited and shall accrue to the Account of said fund. The same shall not be diverted to other uses”.

SECTION 16.- Section 17 of City Ordinance 01-4003, is AMENDED as the same is herebyAMENDED, to read as follows:

“ Section 17. – Penalties on Loan Defaults – A loan is considered default when the borrower (Institutional or Self-Help Groups) fails to pay three (3) consecutive amortization schedules. A penalty of 1% per month of the amount due (based on the amortization schedule) shall be imposed. In case of diversion of funds, the Committee may declare the whole amount as due and demandable. This applies to both Institutional and Self-Help Groups.

SECTION 17.- Section 18 of City Ordinance 01-4003, is AMENDED as the same is herebyAMENDED, to read as follows:

“Section 18. – Continuous Loan Defaults – the City Government of Iligan thru the CLAC, after conducting monitoring and investigation of the fund borrowers, may recommend any of the following courses of action:

a. Re-structure the Loan

b. Declare the loan due and demandable

c. Recommend to City Legal Office for legal action.

SECTION 18.- Section 19 of City Ordinance 01-4003, is AMENDED as the same is herebyAMENDED, to read as follows:

“Section 19. – Loan Processing And Approval Procedures – The following steps should be followed in the conduct of loan processing:

1. The borrower submits a project proposal to Secretariat
2. The TWG evaluates proposals to CLAC if found to be feasible
3. The CLAC decides on application

Page 11 of Res. No. 05-189)

4. The processed loan applications shall then be forwarded to the City Legal Office for verification and compliance with all legal requirements in order to ensure the protection of the City Government. Thereafter, the CLO shall then prepare the loan release documents which shall include five (5) copies of MOA/ Contracts and Promissory Notes. If the borrower is a juridical person or otherwise possess legal personality, the borrower’s duly authorized representative and that of the CLAC shall sign the documents.In case of Self-Help Groups all members representing the group and that of CLAC shall sign the documents individually. However, all the individual borrowers shall jointly and severally liable of the borrowed funds.

5. Upon recommendation of the CLAC, the documents shall then be forwarded to the City Mayor for approval or disapproval of the loan application. For this purpose, the City Mayor is hereby authorized to sign / enter into a Memorandum of Agreement / Contract wit the borrower/s under the terms and conditions favorable to the City.

6. The Secretariat shall then forward the documents to the City Budget Office, City Accountant’s Office and City Treasurer’s Office or / to any office involved/deemed necessary in the processing of documents for release.

SECTION 19. Repealing Clause. All ordinances, resolutions, circulars, memoranda, or rules and regulations inconsistent with the provisions of this ordinance are hereby repealed and modified accordingly.

SECTION 20. Separability Clause. If any provision or section of this ordinance or the application thereof to any person or circumstances is held invalid or is declared unconstitutional, the other provisions or sections of this ordinance which are not affected thereby shall continue in full force and effect.

SECTION 21. – Effectivity.-This Ordinance shall take effect ten (10) days after the publication of a local newspaper.


(Page 12 of Res. No. 05-189)

CARRIED Unanimously.


The undersigned hereby attests to the adoption of the foregoing as verified to by the Member-Author.

Secretary to the Sanggunian




City Vice Mayor, Presiding Officer
APPROVED: ___________________


City Mayor


Hon. Henry C. Dy,
City Vice Mayor,
Presiding Officer
Hon. Providencio P. Abragan, Sr.,
Hon. Vicente F. Belmonte, Jr.,
Hon. Chonilo O. Ruiz,
Hon. Alfredo R. Busico,
Hon. Moises G. Dalisay, Jr.,
Hon. Ruderic C. Marzo,
Hon. Bienvenido V. Badelles,
Hon. Orlando M. Maglinao,
Hon. Wilfredo R. Bacareza,
Hon. Voltaire I. Rovira,
Hon. Bernard Y. Pacaña,
* Hon. Hannah M. Quijano, *

* Out during the deliberation

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