Private sector, government work out housing agenda

The private industry-government partnership in the housing program was further affirmed as a package of housing program breakthroughs was unfolded in the recent 2002 National Convention of the Chamber Real Estate and Builders Associations (CREBA) and Housing and Urban Development Coordinating Council (HUDCC) in Baguio City, according to CREBA national president Florentino S. Dulalia Jr.

The three-day convention highlighted what could only be the outcome of a cooperative enterprise, Dulalia stressed. He said: "It took months of backroom hustles, dialogues and consultations on substance and form, policy and procedure. For beyond discussing program contents and schedule, it was a serious exercise in reforming and propelling the housing program."

The CREBA president said: "Top government honcho President Arroyo got herself so much involved she decided it was much better pencil-pushing with policy makers than spending time in Baguio and delivering a speech. Never mind that it was a gathering of industry players and state decision makers. Of course, the President apologized for missing the company of CREBA and industry friends. Just the same, Her Honor’s presence was still felt via an important message on videotape and a face on wide screen. The President announced "crucial policy responses" to industry’s advocacy for what she herself described as "a conducive environment for home building."

He recalled Sen. Manuel B. Villar Jr. in effect telling the industry: "Go for it, you and the homeless deserve the break." Secretary Michael T. Defensor, HUDCC chairman, said that because of CREBA’s candor, HUDCC views CREBA as good policy sounding board. "Can this policy be defended in a CREBA forum?" has become an automatic yardstick we attach to every policy we make," he said.

The program was put together by CREBA officers led by Dulalia; Florante C. Ofrecio, overall convention chairman; HUDCC led by Undersecretary Armando C. de Castro, HUDCC secretary-general and overall convention co-chairman; CREBA board chairman lawyer Manny Serrano, and many others.

True to its theme "Alliances and Unity: Key to Economic Recovery," the convention witnessed industry-government breakthroughs for building homes. Thus:

• The industry, represented by CREBA, Builders Alliance Towards Action (BATA), National Real Estate Association (NREA), Organization of Socialized Housing Developers Association of the Philippines (OSHDAP) and Women in Shelter and Environment (WISE), presented a formal resolution pledging to deliver an initial 227,000 socialized and economic housing units to support the housing program in the next few months.

• The CREBA Social Housing Foundation and the National Home Mortgage Finance Corp. signed a memorandum of agreement under which the foundation will seek accreditation as an originator under the Community Mortgage Program to help urban poor communities and provide modern technology to speed up house construction and delivery.

• Bangko Sentral ng Pilipinas has increased its loan collateral value for housing accounts of banks to 80-90 percent of the loan ratio, with the possibility of increasing the rediscount window to P2 million.

Similarly, Home Development Mutual Fund (Pag-IBIG Fund) will increase its loan-to-collateral value for housing accounts under the buy-back agreement with developers. Thus for loans over P180,000 but not more than P500,000, the loan-to-collateral value will be increased from 90 percent to 100 percent; for over P500,000 up to P1 million loans, the value will be adjusted from 90 percent to 100 percent; and loans of more than P1 million but not more than P2 million, the value will be increased from 70 percent to 90 percent. Thus, borrowers will no longer shell out equity for loans up to P500,000, while for loans for more than P1 million, the equity will be reduced by P50,000 to P200,000.

– Home Development Mutual Fund (Pag-IBIG Fund) has reduced to only 19 signatures from a previous of 40 for the normal regular loan window, while the take-out with a buy-back guarantee window takes only sevne days.

– Government Service Insurance System (GSIS) and Pag-IBIG Fund have lowered their interest rates to make amortization payments more affordable for homebuyers. GSIS President-General Manager Winston F. Garcia announced the institution’s Bahay Ko Program take-out facility is now open to CREBA member-developers to enable more government employees to acquire their homes. P24 billion will be available in the next three years.

– Secretary Defensor and Pag-IBIG Fund President-CEO Romero FS. Quimbo announced the institution will increase its housing fund allocation from P20 billion to P30 billion of its investment portfolio for 2003.