CREBA proposes package to address 5.5-M housing backlog

MANILA, Philippines - The Chamber of Real Estate and Builders’ Associations Inc. (CREBA) is proposing a package of reforms to allow the country to address the 5.5 million housing backlog in the next 20 years.

 “With the backlog estimated at 5.5 million, we have set our target production of 500,000 (housing units) per year for the next 20 years,” CREBA national chairman Charlie Gorayeb said during the group’s Developer’s Forum yesterday.

To achieve the annual housing production target of 500,000 units, Gorayeb said the group has identified a five-point agenda or package of reforms aimed at providing benefits to the government, homebuyers and the private sector.

Among the reforms pushed is the availability of long-term and affordable funds for socialized and economic housing.

The group is proposing a Centralized Homebuyer Financing Program (CHFP) which would involve initial contributions from the Social Security System, Government Service Insurance System, Pag-IBIG and unused agri-agra funds of banks invested in housing bonds pursuant to different laws, to be made available as home financing assistance to individual home loan borrowers with no component for development financing.

In addition to the CHFP, the group is proposing the operation of a long-term mortgage-backed securitisation program which would involve securitisation, capital and secondary market operations for home mortgages and other housing-related receivables, conveyances and financial instruments to be managed by a secondary mortgage institution organized by the government, to increase funds available for housing and home development.