Gov’t retains mass housing for investment priority efforts
Rodriguez reiterated that granting incentives for the private sector who will participate in housing activities directly impacts housing production and supply as this will ensure their greater participation in the production of affordable housing.
The Duterte Administration’s Strategic Investment Priority Plan (SIPP), which represents the country’s investment plan containing not only the list of priority industries but also investment promotion and facilitation activities for all investment promotion agencies, has included mass housing activities, recently lauded by housing enthusiasts.
According to the Subdivision and Housing Developers Association, Inc. (SHDA), they welcome the latest development as the said largest alliance of private housing developers in the country affirms that this move will ensure that incentives will be extended for participating stakeholders in mass housing activities to help address the housing backlog and facilitate economic recovery.
The 2022 SIPP continues to cover the development of mass housing units based on a specific price ceiling as part of the incentivized priorities of the country, which also covers in-city-low-cost dwelling projects for lease/rent.
For NCR, only in-city low-cost dwellings for lease/rent may qualify for registration.
Memorandum Order 61 series of 2022 — Approving the 2022 SIPP — lists the priority economic and business activities that can avail of investment incentives under the Corporate
Recovery and Tax Incentives for Enterprises (CREATE) Act.
It adopts the 2020 Investment Priorities Plan (IPP) as Tier I — the base structure for the Philippine development. It also determines products or services that are not locally produced for consideration for Tier 2, and it identifies high technology activities critical to transforming the economy and attracting technology investments for Tier 3.
To be included in Tier 1, the industry should have a high potential for job creation; sectors with market failures resulting in under-provision of goods and services; value creation through innovation, upgrading and moving up the value chain; essential support to sectors critical to industrial development; and should be emerging owing to potential comparative advantage.
According to SHDA national president May Rodriguez, including mass housing under Tier 1 of the 2022 SIPP is a step to boost the housing sector and address the housing backlog.
“SHDA advocates ensuring the retention and amplification of incentives for mass housing. And the inclusion of the housing sector in the 2022 SIPP is an important move to provide housing at the price point to clear the housing backlog,” said Rodriguez.
Rodriguez reiterated that granting incentives for the private sector who will participate in housing activities directly impacts housing production and supply as this will ensure their greater participation in the production of affordable housing.
She also mentioned that this newly approved plan would promote a competitive and resilient economy.
“Another positive impact of this is the economic multiplier effect of 3.14 times of housing on the economy. It will generate economic activities in the many industries attached to the housing sector and create corresponding employment which can address as much as 5 percent of the country’s total employment requirements,” Rodriguez stated.
Green housing, smart cities, and smart communities are all eligible for incentives.
However, according to Rodriquez, there
is still a need to create guidelines and criteria for identifying what can be considered “smart housing and smart communities.”
“Government and the private sector will have to develop specific guidelines and characteristics for smart housing and communities. But by incorporating the efficiencies from technology and building innovations with the fruits of green initiatives, our keywords are affordability, resilience, sustainability, and livability,” Rodriguez said.