Property firm turns over socialized housing units

CEBU, Philippines - The housing need of some ordinary low-income employees in Cebu has now been realized as a property firm finished its first socialized housing project in Visayas.

The Gotianun-led Filinvest Land Inc turned over on Wednesday some 633 socialized housing units in Barangay Agus, Lapu-Lapu City to homeowners who are mostly government employees and workers at nearby economic zones.

FLI Area General Manager for Visayas Allan Alfon said in an interview the Sunrise Place Mactan project would serve the 20 percent socialized housing requirement of the firm’s other developments, as mandated by the Housing and Land Use Regulatory Board.

According to the Urban Housing Development Act, developers must allot 20 percent of a project’s total area or cost for the building of a socialized housing. A Lapu-Lapu City ordinance also mandates developers to build socialized houses in the city.

 “The objective is to provide affordable housing. It can also serve as compliance to our other developments,” Alfon said.

The project has already served the 20 percent socialized housing compliance of FLI’s two projects in Lapu-Lapu City. He also said the company is fusing nearby properties in the city to expand socialized housing.

 In the same interview, City Administrator Teodulo Ybañez said the city government has 22 hectares of land in Barangay Canjulao to be used for socialized housing development.

He said the government may consider a public-private partnership to build those low-cost projects, wherein the local government provides the land and the private firm develops the area. He noted more houses are needed in the city to address the backlog in the housing sector caused by urban migration.

FLI invested roughly P80 million for the 4.2-hectare housing project, excluding the land purchase and it started the construction two years ago.

Financing

 Homeowners have acquired the property through the government housing finance arm Home Mutual Development Fund or Pag-IBIG Fund. They are paying a monthly amortization of P2,972 for the P400,000-worth unit. The cost of a socialized house should not go over P450,000.

 Senen Catingub Jr., Pag-IBIG wholesale lending assistant department manager, said the income of those availing the loan for socialized housing is P12,000 or below and such loan has a 4.5 percent interest rate. While loan for economic housing which costs not more than P750,000 holds an interest rate of 6.5 percent.

Catingub also disclosed that in 2014, affordable housing which includes socialized and economic accounted about 20 percent of the total housing loan portfolio of the state-owned firm.  (FREEMAN)