SHDA welcomes P40-B housing fund

The recent commitment of some P40-billion in fresh funds to housing by three pension funds and three major banks will be a big boost to homeownership and in reviving the otherwise moribund housing industry, according to Mariano D. Martinez, national president of the Subdivision and Housing Developers Association (SHDA).

SHDA, the prime homebuilder's group participating in the government shelter program, led the major real estate organizations in witnessing the signing of the memorandum of agreement held over the week-end where the six funding institutions committted funds for long-term lending under President Estrada's pro-poor housing program in simple ceremonies held at Malacañãng Palace.

As program funders under the agreement, the Home Development Mutual Fund (Pag-IBIG Fund) committed to make available P10-billion for housing loans this year; and P6-billion each from the Social Security System; Government Service Insurance System; and the Philippine National Bank; for an initial total of P28-billion, Martinez cited.

The funds will be lent to individual homebuyers under the government's Multi-Window Lending System for housing, through qualified government or private financial institutions acting as lending windows, which shall be accredited by the Housing and Urban Development Coordinating Council.

Martinez reported that the balance of P12-billion will be equally shared by the Development Bank of the Philippines and the Land Bank of the Philippines, which funds shall be lent through their respective lending programs, including but not limited to securitization of housing loan portfolio, local government unit financing for housing; subdivision development financing for private developers; working capital loans for developers and for individual housing loans under the government shelter program.

Under the funding commitment, the Home Insurance and Guaranty Corporation shall guarantee the payment of the funds to be provided by Pag-IBIG Fund, SSS, GSIS and PNB through the lending windows; including the payment of the loans to be granted by DBP and LBP under their respective lending programs which are qualified for HIGC guaranty coverage.

For its part, the Housing and Urban Development Coordinating Council and the funders shall accredited any qualified government or private financial institution as lending window; and to operationalize the Multi-Window System within a period of sixty (60) days from the singing of the said memorandum of agreement, Martinez pointed out.

As the engine of growth of the government shelter program, the private developers aside from being suppliers of housing inventories, may also be tapped as loan originating institutions by the lending windows under the government home financing program, Martinez added.