Putting an end to our long-standing housing woes
The Chamber of Real Estate and Builders’ Associations, Inc. (CREBA) is putting its full support to House Bill No. 4886 filed by House Speaker Gloria MacapagalArroyo which seeks to create a Comprehensive Home Financing Program (CHFP) that will make all income-earning Filipinos entitled to fixed, low-interest, long-term housing loans whether or not they are members of the Social Security System (SSS), Government Service Insurance System (GSIS), or the Pag-lBIG Fund.
Such a move is urgent and necessary if the national government is truly serious in addressing the country’s 6.57 million housing backlog which has grown in unprecedented leaps and bounds amidst inadequate housing programs over the years.
Under the Arroyo bill, the annual CHFP funding of 1270 billion will be sourced through bond investments by the SSS at 125 billion; GSIS at 125 billion; a minimum of 170 billion or all of Pag-IBIG Fund’s investible funds for housing; 1100 billion from the unused or residual agri-agra funds of banks; and a 150 billion government budgetary allocation to serve the informal settlers’ segment – all with mandatory guaranty cover from the Home Guaranty Corporation.
The CHFP will be designed exclusively for home loan borrowers with no component for development financing. This, according to the author, is to ensure the use of funds strictly for shelter acquisition by the homeless. If passed into law, the bill amends Republic Act 7835 or the Comprehensive and Integrated Shelter Finance Act (CISFA) of 1994.
These fund sources, anyway, have been identified by various existing laws and agency charters and need only to be integrated for effective administration to socialized and economic housing beneficiaries.
Payable up to 30 years, loans for residential units in subdivisions or medium-rise condominium buildings shall be 11.5 million and below at three percent fixed interest rate for socialized housing, and above 11.5 million up to 13,199,200 at four percent for economic housing which shall remain VAT-free.
The bill appoints Pag-IBIG Fund to administer the loans with the National Home Mortgage Finance Corporation (NHMFC) acting as secondary mortgage institution.
All income-earning citizens who qualify as beneficiaries under the Urban Development and Housing Act and have not acquired housing assistance from any government institution shall be eligible for home loans through the CHFP.
CREBA’s support to the proposed bill stems from its five-point agenda for housing that will accel- erate annual housing production to the level of 500,000 units in order to build a total of 10 million homes in a span of 20 years.
A manifesto urging Congress to pass the bill at once was signed by CREBA members and chapters from all over the Philippines at the concluding rites of its 27th annual convention held in La Union from Oct. 17-20.
HB No. 4886 is a complete package on its own, and we hope that Congress will steer its immediate passage into law to bring about the urgently needed solution to our long-standing housing woes.