ELIGIBILITY FOR HOUSING LOAN
(i) Under the Federal Government Staff Housing Board Act, a person shall be eligible to receive an advance from the Board if
(a) He is a member of the Public Service of the Federation;
(b) He holds a pensionable office in such service or is a contributor to the National Housing Fund; and
(ii) In the case where a person has previously obtained a housing loan from public funds, such a person shall be eligible to receive an advance from the Board if:
(a) He is in every other respect eligible for a loan under this Act; and
(b) The loan being applied for would be expended on the residential house in respect of which loan was previously granted from the public funds; and
(c) The amount of the loan to be granted shall not be more than the difference between the present cost or value of the house (whichever is greater) and that person’s current entitlement under this Act.
7. REQUIREMENTS FOR LOAN
i. If the loan is required for building of a dwelling house, completing or extending a house, the following documents are required:
a. Two photocopies of the Statutory Certificate of Occupancy or Deed of Conveyance, or in case of land sold by State or Federal Governments, the original letter or allocation.
b. Approved building plan, site and survey plans.
c. Estimate of cost prepared by a qualified Architect or Quantity Surveyor
d. A written confirmation from the State Ministry of Lands, Survey and Urban Division of the Local Government confirming that the land is still vested in the applicant and free from encroachment. Note that the Board shall conduct a physical inspection of the land/property before or after advancing the loan.
e. A letter of consent to mortgage the property to the Board from the State Governor/Letter of Confirmation of Ownership of Plot or Landed property.
f. Deed of Guarantor’s form with Applicant’s and Guarantor’s Gazettes of Confirmation of Appointment or Commission Letter of Service (whichever is applicable)
g. Declaration of Next of Kin.
ii. If the borrower retires from Service or disengages while any of the said loans including interest is yet unpaid, the Borrower as a fall out of the new Contributory Pension Scheme, shall make alternative arrangements to liquidate all outstanding balances from sources other than salary or terminal benefits or as government may direct.
iii. In the event that the Borrower retires or disengages from the service or otherwise, while any of the loans including interest is still outstanding, the Board may thereupon exercise its right of foreclosure under the mortgage, unless:
a. The outstanding balance of the loan is paid by the Borrower upon such resignation, retirement or disengagement from Service
b. Arrangements satisfactory to the Board are made by the Legal Personal Representative of the estate of the Borrower to liquidate the said loan and interest.
iv. Without prejudice to what is stated in the paragraph 7 of the Board’s Agreement Form, the Board shall insure the property for which the loan was given at the expense of the Borrower for the first year and the Borrower shall be liable for the renewal of the subsequent premium annually until the loan is fully liquidated
v. The Borrower shall pay the fees chargeable for stamp duties, registration of mortgage and agreement, preparation of plans and other incidental expenses in respect of the loan
Applicants applying for the above loan are entitled to a loan ceiling commensurate to their grade level. But not more than a maximum of eight (9) times their annual salary or Fifteen Million Naira, (15,000,000.00) (whichever is less). Whatever is the cost of the house in excess of the applicant’s entitlement should be paid by the applicant and evidence tendered before the Board makes the final payment
i. If the loan is for Purchase of a parcel of land, the following documents are required:
a. Original letter from the vendor indicating the price of the house to be purchased.
b. Two photocopies of the Deed of Conveyance/Lease or Certificate of Occupancy.
c. If the land is from the State of Federal Government Housing Corporation, Board or Authority, then the original letter of allocation/offer; quoting the selling price, guaranteeing that on payment, the title deeds will be surrendered to the board as collateral.
8. PENALTIES FOR FAKE DOCUMENTS
Presentation of fake documents to secure loan from the Board:
i. Is viewed as misconduct punishable under PSR chapter 3, section 3 and, Rules 030301 and 030401, respectively.
ii. Constitutes corrupt practices under the Independent Corrupt Practices Commission (ICPC) Act; and
iii. Amounts to ALTERING which is another crime under the relevant laws of Nigeria.
The misconduct of the officer(s) involved shall be dealt with accordingly in addition to prosecution for the crime committed.
9. FORMS
Application forms can be purchased for a fee of One Thousand Naira (N1000.00) at the Central Pay Office to the Federal Government Staff Housing Loans Board and the fee is subject to review by the Governing Board from time to time
10. REPAYMENT
All loans must be repaid within a minimum period of twenty-five (25) years. However, the exact number of years in which an applicant repays the loan is determined by the date of birth of the applicant or the date of his/her first appointment (whichever is applicable) for retirement from active Service.
Applicants who apply for loan to build houses are to start repaying as soon as they have collected their first installment of the loan; so also, those who purchase land and house equally start repaying as soon as they have received payment.
11. RETIREMENT
Any applicant who has not finished paying his/her loan on retirement shall be required, as a fall-out of the new Contributory Pension Scheme, to make alternative arrangement to liquidate all outstanding balances from sources other than salary or terminal benefit or as government may direct.
12. DEATH
In the event than an Officer dies before full repayment of an advance granted to him/her, the Board may exercise its right by seizing the property under the mortgage, unless arrangements satisfactory to the Board are made by the Officer’s representative for the repayment of the loan.
13. RESIGNATION
If and Officer resigns his/her appointment or is dismissed from the public service before any loan is fully repaid, the Board may there-upon exercise its right by seizing the property under the mortgage, unless:
i. The outstanding balance of the loan is paid upon such resignation, or
ii. Arrangement satisfactory to the Board is made by the borrower to liquidate the loan
14. CLEARANCE LETTER
It is mandatory for all retiring officers to obtain a clearance letter from the Board indicating that they are not indebted to the Federal Government through the Housing Loans Board. To ensure smooth retirement, the Board should be informed on the state of non-indebtedness or otherwise of the officer and the indemnity form should be completed at, least three (3) months before officer’s exit date from Federal Civil Service.
15. INSURANCE
A house built, purchased or renovated under this scheme is insured by the Board at the Borrower’s expense against damage by fire, flood or lightning, for its full established value or actual cost throughout the period of repayment of the loan. The insurance policy is taken out in the joint names of the Board and the Borrower. The cost of the premium in respect of the insurances is deducted from the salary of the Borrower.
16. LETTING
When a Borrower has received loan to build, purchase or renovate a house, there should be no letting or sub-letting of any part thereof; when the loan has not been fully repaid, the Board may require him/her to enter into an agreement with the Board whereby a proportion of the rent collected maybe be paid to the Board.
Any sum paid to the Board in pursuant to this arrangement shall be credited to the borrower’s account with the Board.
