Palau Housing Authority is requesting government to reimburse it $1,295,546.54 for loss it incurred in subsidy, subsidy interest loss and loan interest loss for housing loans issued under Housing Development Loan Program(HLDP).
According to report to the national congress, total losses incurred include $320k from subsidy, over $213k from subsidy loan interest loss and over $761k for loan interest loss, totaling $1.295 million.
HLDP enabling law allows for certain amount of subsidy to eligible applicants, gov’t payment for loss of interest income from loans eligible for reduced interest benefit to the consumer.
Since October of this year, PHA has requested for drawdowns totaling $2.585 million for about 93 different housing projects.
The original $15 million soft loan that Palau acquired from Taiwan to fund the Palau housing crisis has been used up with more housing applications still coming in. Efforts to obtain another loan from Taiwan bank to continue the housing program is going on now and according of Minister Elbuchel Sadang, they are waiting for official response from Megabank of Taiwan.
PHA seeks reimbursement from gov’t for $1.295M
