What is ALRF?
The Assessment Loan Revolving Fund (ALRF) was created under PD 1002 on September 22, 1976, appropriating the sum of P50 Million to be loaned to the different LGUs without interest, for purposes of undertaking Tax Mapping Projects, periodic Revision of Real Property Assessments, and other real property assessment programs in order to accelerate an effective Real property Tax Administration System in their localities designed to maximize revenues from real property taxation. Such fund is under the administration of the Secretary of Finance thru the Bureau of Local Government Finance. The actual amount released by the Bureau of the Treasury for the ALRF was P30,000.000.00.
Presently, there are 18 LGUs which availed of the ALRF Loan with on-going projects.
Guarantee for ALRF Loan
The guaranty for the loans contracted by LGUs under the ALRF is the Internal Revenue Allotment (IRA) of the LGUs concerned to the extent of the amount of loan.
Procedures and Requirements for the Release and Repayment of Loans
The procedure and requirements in the release and repayment of loans of LGUs under the ALRF are provided under Assessment Regulations No. 4-77 dated 23 May, 1977, as follows:
- Loans shall be payable in equal annual installments for a period of from three (3) to five (5) years depending upon the financial capacity of the borrowing LGU (Section 2);
- Section 3 thereof provides for the scheme in the releases of loan which is 50% initial release-30% second release-20% final release. Monitoring and Evaluation of the project is required prior to processing of second and final releases;
- Period for the repayment of the loan shall be as stipulated in the loan agreement on or before the end of December of each year starting with the year next following the year of completion of the project (Section 4). However, we allow the LGU to pay the loan in equal quarterly installments instead of annually, and
- In the approved Contract of Loan, it is provided that in case of any default in payment, the amortization due shall automatically be charged against the Internal Revenue Allotment (IRA) of the defaulting LGU.