CLTC enhancing loan guarantee initiative - KUAM.com-KUAM News: On Air. Online. On Demand.

CLTC enhancing loan guarantee initiative

Posted: Updated:

Just as the rules allowing for commercial leases are expected to be adopted by next month, the Chamorro Land Trust Commission is also moving forward on another set of rules set to strengthen its loan guarantee program to help people build homes.  The Chamorro Home Loan Guarantee Program has been around since the inception of the Chamorro Land Trust Law back in 1994.

"The Chamorro Home Loan Guarantee Program allows the Chamorro Land Trust to help people get the loans they need to build their homes," explained Department of Land Management director Michael Borja, "because the land is not owned by the lessee it's owned by the Chamorro Land Trust, most banks require some kind of guarantee for that since they can't mortgage the land." And according to the director, while the program has been around for about two decades, rules were never in place and only recently were policies set.

"And these rules and regulations give it more strength not only for the guarantor, which is the Chamorro Land Trust, but also sets down the rules for the lender and the borrower. And it's all in an effort to make sure we're strong financially in that area - that the money that are being used to guarantee the funds are being responsibly cared for and the whole program has some credibility and integrity, especially because it is something that gets audited," Borja added.

He adds having these rules in place are important because of the $9 million worth of loan guarantees that the CLTC needs to keep safe. "So we want to make sure we're all protected and we're protecting the fund, because the fund is the people's fund, not mine and we have to have these kind of rules to protect that, and to also make sure it's viable that people coming down in the future who are trying to get loans to build their homes," he said.

Borja says the trust currently has 2,500 leases for agricultural and residential with 8,600 people on the waiting list - a list that dates back all the way to 1995. "And we're looking to move forward in a quite a few number of ways pretty soon, where we're going to try to develop subdivisions that will have infrastructure and then homes, when we start to put people in these homes and when they try to buy these homes, they'll probably need some loan guarantees, as well," he said.

He adds while guarantees were done before as part of the program, they mostly were for disaster relief loans. The rules were adopted by the Commission on Thursday, which will begin the administrative adjudication process.

  • NEWS HEADLINESMore>>

  • Chunggiwa Restaurant, Top Island Restaurant shut down

    Chunggiwa Restaurant, Top Island Restaurant shut down

    Courtesy: Google Street ViewCourtesy: Google Street View

    One Restaurant re-opens, and another closes. Top Island Restaurant in Tamuning was shut down with a grade of D. Public health inspectors found unclean employee practices, and an active roach infestation. Reports say the Person In Charge confirms they have not hired pest control services and apply pesticides on their own. Live roaches were found throughout the kitchen, and the front counter area. While dead roaches were found in the freezer, chillers, kitchen, front counter and dry st...

    More >>

    One Restaurant re-opens, and another closes. Top Island Restaurant in Tamuning was shut down with a grade of D. Public health inspectors found unclean employee practices, and an active roach infestation. Reports say the Person In Charge confirms they have not hired pest control services and apply pesticides on their own. Live roaches were found throughout the kitchen, and the front counter area. While dead roaches were found in the freezer, chillers, kitchen, front counter and dry st...

    More >>
  • Ray Tenorio, Tony Ada make gubernatorial run official

    Ray Tenorio, Tony Ada make gubernatorial run official

    A fifth gubernatorial candidate has now officially submitted his papers to the Guam Election Commission.  As has been long expected, Lieutenant Governor Ray Tenorio will be vying for the top seat at Adelup. His running mate is former Senator Tony Ada. So far, Tenorio is the lone Republican Gubernatorial hopeful. The team filed Thursday afternoon surrounded by supporters. Tenorio stated, "We believe in embracing everybody and everyone's voice and their consideration. Th...More >>
    A fifth gubernatorial candidate has now officially submitted his papers to the Guam Election Commission.  As has been long expected, Lieutenant Governor Ray Tenorio will be vying for the top seat at Adelup. His running mate is former Senator Tony Ada. So far, Tenorio is the lone Republican Gubernatorial hopeful. The team filed Thursday afternoon surrounded by supporters. Tenorio stated, "We believe in embracing everybody and everyone's voice and their consideration. Th...More >>
  • GPD: crime on Guam is decreasing

    GPD: crime on Guam is decreasing

    Guam's crime rate is going down - at least this is the trend, according to the Guam Police Department's 2016 Uniform Crime Report which covers years 2012 through 2016. GPD Chief of Police JI Cruz says that although they don't have the ideal number of personnel, they've transitioned from traditional to community policing which has had a positive impact on numbers. "With our strategy of policing and how we've analyzed crime, all things taken into consideration, we do feel that wit...More >>
    Guam's crime rate is going down - at least this is the trend, according to the Guam Police Department's 2016 Uniform Crime Report which covers years 2012 through 2016. GPD Chief of Police JI Cruz says that although they don't have the ideal number of personnel, they've transitioned from traditional to community policing which has had a positive impact on numbers. "With our strategy of policing and how we've analyzed crime, all things taken into consideration, we do feel that wit...More >>
Powered by Frankly