A PUSH TO DEVELOP SOCIALIZED HOUSING
Nine developers create a local chapter to champion socialized housing developments in Cebu. Socialized housing largely accounts for the nationwide housing backlog of 5.6 million.
The Organization for Socialized Housing Developers of the Philippines (OSHDP) has created a Cebu chapter to push for more socialized housing developments in the province.
The organization is headed by Richard Azares of Visioneer Homes Development Corp. Joining him are developers RFK Holdings; M&E Realty; MCJR Realty & Development; Prima Casa; Common Bacayan; Brea Homes; RAFAL Realty; and Kenrich Development Corp.
“OSHDA was created so that developers will work together on the need for housing, which admittedly, is still on the socialized housing category” said Azares.
The Cebu chapter was created on Feb. 10, on the same day the National Housing Summit 2017 was held.
Socialized housing projects are classified as projects with houses priced at P450,000 each and below. Under Republic Act 7279 or the Urban Development Housing Act, these are projects intended for the underprivileged and homeless wherein the housing package selling price is within the lowest interest rate under the Unified Home Lending Program (UHLP) or any equivalent housing program of the government, the private sector or organizations.
Azares said socialized housing largely accounts for the 5.6 million housing backlog.
Through OSHDP Cebu, Azares said developers will have a better representation to lobby in government offices in support of socialized housing.
The organization, which is presently headed by Marcelino Mendoza on the national level, is pushing for wider housing financing availability for the buyers.
“Developers don’t focus very much on socialized housing, aside from compliance, because the margin is little,” said Azares.
With incentives in place, the official believes this will encourage more developers to venture into this segment, given the huge housing backlog.
Under RA 7279, subdivision developers need to build socialized housing equivalent to 20 percent of the land area or 20 percent of the total project cost.
OSHDP is also lobbying for better access to land. For instance, the two-year moratorium on agricultural land conversion is stopping developers from building more homes.
“Most socialized housing projects are located outside the cities because the land is affordable. But with the government having the moratorium, how can we build socialized houses? As you know, most of the lands outside the city are agricultural lands,” he said.
Another key concern is the creation of the Department of Housing and Urban Development, one that could streamline the processes in the housing industry. At this point, the housing industry is governed with many conflicting and inconsistent policies, Azares noted.
OSHDP also advocates for vertical socialized housing developments and green socialized housing projects.
With the newly-formed OSHDP, Azares said he is inviting more developers to join the organization with this shared vision.
In Cebu, socialized housing projects are popular Danao City and Carcar City.
Azares served as the president of the Philippine Association of Real Estate Boards-Cebu Real Estate Boards Inc. (PAREB-CEREB) in 2012 and vice president for PAREB Visayas.
He has over 30 years’ experience in construction and real estate.