GOVERNMENT OF KHYBER PAKHTUNKHWA HOUSING DEPARTMENT AFFORDABLE HOUSING SCHEME FOR GOVERNMENT SERVANTS Director General Provincial HousingAuthority 091‐9224298 GOVERNMENT OF KHYBER PAKHTUNKHWA HOUSING DEPARTMENT KHPAL KOR AFFORDABLE HOUSING SCHEME FOR GOVERNMENT SERVANTS Contents Salient Features of The Khpal Kor Affordable Housing Scheme ........................................................... 2 Scheme wise available plots are as under .............................................................................................. 2 Eligibility Criteria .................................................................................................................................... 3 Lower and Upper Ceilings of Khpal Kor (2k) Home Finance.................................................................. 3 Period of Finance .................................................................................................................................... 3 Mark Up Rate .......................................................................................................................................... 3 Home Finance Repayment ..................................................................................................................... 4 Insurance ................................................................................................................................................. 4 Payment of Salary Through Bank of Khyber ......................................................................................... 4 Late Payment ......................................................................................................................................... 4 Processing Fee ........................................................................................................................................ 4 Calculation of Monthly Installment and Amortization .......................................................................... 4 Securities Against House Finance .......................................................................................................... 5 Regulation .............................................................................................................................................. 5 Procedure for Submission of Application Forms ................................................................................... 6 Introduction A huge scheme of KhpalKor low cost affordable housing has been launched with the help of Bank Home Financing facility, benefiting a large number of government servants and general public. In the first phase the facility has been extended to the existing allottees (Provincial Government Servants only) of Jalozai Housing Scheme, Mulazai Housing Scheme Peshawar, Havellian Township Abbotabad and Jerma Housing Scheme Kohat. In the second phase the scheme will be extended to the government servants who will be allotted the balance plots in the said housing schemes, through computerized draw. In third phase low cost affordable build up houses and apartments will be provided to government servants (initially in the KhpalKor Scheme‐I at DheriZardad on main motorway near Charsadda Interchange under PPP. In the 4th phase build up apartments will be provided to government servants in different cities under PPP. The initiative will provide planned affordable housing, stabilize the soaring real estate prices and generate huge economic activity in the province. Under the scheme the banks will provide home finance facility under a tripartite agreement between Banks‐Employees‐ Government/PHA. The Construction will be undertaken by allottees themselves and completed in one year. A 5 Marla single storey house having 2 bed rooms, DD, Porch, Kitchen, two baths, backyard will cost about Rs. 18 lacs including cost of land and development. The prospective return from the house will be sufficient to pay back the installments rather would fetch some saving as well besides increase in the value of the house . Regional Facilitation Centers have been established at Peshawar, Swat, Abbotabad and Kohat for free facilitation of the aspiring government servants as well as general public, in preparation of the documentation for the bank home finance facility. Arrangements (optional) for low cost affordable construction material/preferably technology are being negotiated with Chines & Local companies. 1 Salient Features of The KhpalKor Affordable Housing Scheme Plots will be allotted to the government servants in the following existing housing Schemes namely; 1) Jalozai Housing Scheme District Nowshera 2) Mulazai Housing Scheme District Peshawar 3) Jerma Housing Scheme District Kohat 4) Havellian Township Abbottabad. Scheme wise available plots are as under Jalozai Housing Scheme Total No. of Plots Advance S Total Cost of the Size of the Plot Available for Payment with # Plot Allotments Application 1 5 Marla 259 Rs: 710,400 Rs: 50,000 2 7 Marla 457 Rs: 993,600 Rs: 75,000 3 10 Marla 173 Rs: 1,419,600 Rs: 100,000 4 20 Marla 612 Rs: 2,840,400 Rs: 200,000 Total Available 1501 Plots Mulazai Housing Scheme Advance S Total No. of Plots Total Cost of the Size of the Plot Payment with # Available for Allotments Plot Application 1 5 Marla 130 Rs: 924,000 Rs: 50,000 2 10Marla 66 Rs: 1,848,000 Rs: 100,000 Havellian Township Advance S Total No. of Plots Total Cost of the Size of the Plot Payment with # Available for Allotments Plot Application 1 5 Marla 23 Rs: 720,000 Rs: 50,000 2 10Marla 11 Rs: 1,458,000 Rs: 75,000 Jerma Housing Scheme Kohat Advance S Total No. of Plots Total Cost of the Size of the Plot Payment with # Available for Allotments Plot Application 1 5 Marla 118 Rs: 540,000 Rs: 50,000 2 7 Marla 0 Rs: 1,080,000 Rs: 75,000 Note:Size of plots are approximate and subject to modification on actual measurement at the time of handing over of possession. 2 Eligibility Criteria 1) In the subject Scheme titled “KhpalKor (2K) Low Cost Housing Scheme”, the Client must be a Regular Employee of the Provincial Government of Khyber Pakhtunkhwa or State owned autonomous entities of the Government of Khyber Pakhtukhwa with minimum 2 years of verifiable service history 2) Age at the time of applying for facility must be 25 to 55 years. However, Home Finance maturity (expiry) will not be extended beyond superannuation of the Clients (i.e. 60 years of age of the Clients). 3) The Average monthly verifiable Gross Income shall be Three (3) times of the proposed monthly installment; with minimum Gross Monthly Salary of PKR 50,000/‐. A Client can also add other verifiable monthly income to supplement the verifiable Gross Income for consideration of Home Finance. 4) The proposed Home Finance installment plus other finance facilities installments (if any) be less than 50% of the take home salary / income. 5) The Client(s) shall not be Home Finance Defaulter(s) in any of the scheduled Bank(s) and should not be party to a litigation against any Bank, in particular the Bank of Khyber. A Certificate to this effect shall be provided by the Clients at the time of submission of application. 6) Have no other residential plot in his/her name /dependents in any scheme under PHA Lower and Upper Ceilings of KhpalKor (2k) Home Finance 1) The amount depends on the requirement of every applicant and would be uptoRs. 18 lacs for Marlas, Rs: 2.5 million, 3 million for 10 marlas and 4 million for 1 kanal. 2) The maximum amount of Home Finance approved by the Bank of Khyber, albeit non‐ negotiable, would be PKR 4.0 million. This would be subject to age and income of the employee and other considerations as detailed in this Tripartite Agreement. 3) The Debt to Equity Ratio would be 80:20 and is non‐negotiable. 4) The Home Finance shall be released as per plan agreed with the Client. Period of Finance The Home Finance would be provided to the eligible Clients for a period not exceeding 20 years from the date of crediting of amount into the Client's Bank account or the remaining service period, whichever is less. However, construction must be completed within 12 (twelve) months of crediting of Home Finance into the Client's account and a certificate to this effect shall be furnished within one month after the said completion. Mark Up Rate The predetermined non‐negotiable Markup Rate shall be 1 (One) year KIBOR plus 1% or 2% for a year, depending on the choice of bank at the time of signing of the Tripartite Agreement for BHF. 3 Home Finance Repayment A Repayment Installment shall be due on the 1st of each month or receipt of monthly salary in Client's account (whichever is earlier) which is to be maintained with any of the branches of The Bank of Khyber across Pakistan. The account will not be shifted from The Bank of Khyber until complete retirement of the Home Finance. Insurance The Client agrees to pay The Property (Building) Insurance from an “A” Rated Insurance company with a maximum premium rate of 0.2% plus taxes as well as an “Accidental Death Life Insurance” with a maximum premium rate of 0.3% plus taxes. Payment of Salary Through Bank of Khyber The District Accounts Office will transfer the salary of the Client to the account of the Client maintained with a designated branch of The Bank of Khyber. Late Payment Late Payment Fee is not applicable against payment of Home Finance Installment. However, the Client hereby authorizes The Bank to deduct installment from his/her Bank Account in case the monthly salary is not received in the Bank, for any reason, up to the 15th of each month. Processing Fee The Bank of