Local government units and the Department of Social Housing and Urban Development (DSHUD) will identify Informal Settler Family (ISF) beneficiaries of the Marcos administration’s Pambansang Pabahay para sa Piliipino which has been launched this year with an initial P500 billion funding.
The province of Catanduanes is among the sites being targeted for the development and construction of the first one million units of the program, with most of the sites in Manila, Cebu and other metropolitan areas.
In the Bicol region which has been allocated a total of 60,000 units, the Pambansang Pabahay lists the Bicol river and Catanduanes coastal line as among the first housing development sites.
Last week, DHSUD Regional Director Atty. Richard Manila, together with Division Chief Mary Kathleen Cristy Vibar, briefed Governor Joseph Cua on the implementation of the Zero ISF 2028 Program, which aims to bridge the country’s 6.5 million housing gap within six years.
The Marcos administration’s housing program seeks to provide safe and resilient homes for ISFs and other homeless Filipinos in need of housing by turning idle government lands and blighted areas occupied by ISF into major residential and mixed-use developments.
Also present during the Nov. 9, 2022 briefing at the Office of the Governor were Bato Mayor Juan Rodulfo, Bagamanoc Mayor Odilon Pascua, Viga Mayor Emeterio Tarin, Pandan Vice Mayor Eric Rodriguez and representatives of other LGUs.
Atty. Manila sought the active participation of LGUs in the Zero ISF 2028 program, which he said seeks to address the six million housing backlog caused by unaffordable housing and lack of access to housing funds.
Under the PPP, one million houses will be constructed every year, with a preferential interest rate of just one percent (1%) per annum provided to buyers.
The DSHUD said that in the government’s former Socialized Housing Program, a family needed to pay P3,827 per month for 20 years to have their own home.
Under the new program, a family would need to pay just P1,912 per month for 30 years for a socialized housing unit or row house that will cost P580,000.00 each.
Upgraded housing, shown in the DHSUD presentation as two-storey duplex units, will cost P800,000.00, to be amortized at P2,637 monthly for the same 30-year period.
On the other hand, midrise and high-rise housing, presumably condominium units, will be priced at P1.15 million, to be repaid at P3,538 per month.
An interest support of P36,0000 per year per house will be provided by the government at a total cost of P36 billion per year for the target of one million houses.
The Pabahay program will generate P121.6 billion in taxes from the construction and development of the housing units, the department stated, and will provide employment for 1.7 million workers per year on the assumption that one house will need 10 workers for 60 days,
It pointed out that the money spent will just circulate in the economy, as the bank will lend families money to buy the house, with payment going to the developer, who in turn will pay contractors. Contractors will buy materials from suppliers, who will deposit their earnings in banks, DSHUD said.
The Pambansang Pabahay para sa Pilipino will help solve may problems faced by communities like spread of diseases, drug abuse, abuse and exploitation of women and children, and damage wrought by calamities.
Under the partnership between the private sector, LGUs and the national government envisioned under Zero ISF 2028, blighted areas for mixed-use development will be identified by the concerned LGU and DSHUD.
Private properties with Informal Settler Families will be acquired by the LGU or DSHUD through direct purchase or expropriation while for government-owned properties with ISF, preparations for mixed-use development will proceed accordingly, Atty. Manila explained.
An initial funding of P500 billion will be provided by the Development Bank of the Philippines (DBP) for development loans to housing developers or contractors.
The LGU and DSHUD shall identify ISF beneficiaries, which shall have priority in the allocation of housing units, he stressed, but the public shall be allowed to buy units from development not allocated for ISF beneficiaries.
Once the unit reaches 80 percent completion, the buyers or beneficiaries shall contribute a so-called participation equity or down payment for the units they have purchased, in order to establish paying capacity. This equity will be equivalent to half of the regular amortization.
Once the units are completed, financing institutions will take out real estate mortgages (REMs) on the property bought by buyers.
“Payments will be affordable due to interest support provided by DSHUD,” the agency stated. “The LGU will provide amortization support for five years, with the funds taken from their respective National Tax Allotments (NTA).”
In the same Capitol briefing, Atty. Manila confirmed that former Pandan Mayor Honesto Tabligan II went to his office recently to inquire about the proposed housing projects of the department.
He said that as of last week, the Palta Homeowners Association organized by Tabligan in September has yet to submit the required documents for their accreditation.
The Palta HOA is reportedly intent on acquiring a 24-hectare property in Palta Small for the development of a 3,300-unit subdivision to be financed by a loan from the Socialized Housing Financing Corporation (SHFC).
The property owner has reportedly applied for reclassification of the land from agricultural to residential use with the local government, which is now looking into the suitability of the proposed development as the land is allegedly covered by the Strategic Agriculture and Fisheries Development Zone (SAFDZ).
It may be recalled that more than 3,000 Catandunganons have submitted documents to become members of the Palta HOA so they could be entitled to one of the housing units to be developed under the Community Mortgage Program (CMP).
Most of the new members allegedly got community tax certificates attesting to their being residents of Palta Small despite the fact that they came from towns outside Virac.
During the last meeting of the association on Sept. 25, it was explained that beneficiaries should be Filipinos aged 18-55 years old and must not own any real property or must not have availed of any housing project of the government.
Interest rates of the housing project ranges from 2% to 6%, depending on the income of the beneficiary, with the poorest of the poor to be charged 2% interest per annum.
It was reported that Tabligan preferred the use of raffle to ensure the fair distribution of the location of the housing units.
However, latest information claim that the Palta HOA has already given out lot numbers to the applicants based on the development and subdivision plans for the proposed Pagmacolog Subdivision.