Board wants Pag-IBIG loan for housing project

CEBU, Philippines - The city’s Local Housing Board wants to avail of the Pag-IBIG Fund’s Group Housing Loan Program to fund the proposed high-rise building housing project in Barangay Kamagayan.

The Housing Board has asked the City Council to authorize Mayor Michael Rama to submit the Citicenter Complex as collateral for the loan. The proposed housing project is also planned to be built on the same property.

“The Citicenter Complex covered with TCT No. T-185359 will be tapped as collateral for a vertical development on site. This would lessen the burden related to the development of hilly lands that requires terrain development and cash outlay,” the board’s resolution reads.

Division for the Welfare of the Urban Poor Chief Collin Rossell said all secured loans like the GLHP require collateral from the Local Government Unit. The high-rise housing project for City Hall employees might cost a billion.

Still, Pag-IBIG Fund, through GLHP, can reportedly lend only about P40 to P50 million, thus, the city would still need to partner with private groups to implement the project.

“Ang nakanindot ani niya is Pag-IBIG is willing to grant loans of up to P750,000 to employees to pay for the housing units,” Rossell said.

Rossell said the project’s return of investment is certain because Pag-IBIG will help the City Hall employees pay for the housing unit they would avail of.

The housing project targets to benefit 1,000 City Hall employees eligible to become beneficiaries. Eligible employees must be a Pag-IBIG member.

GLHP is a new program of Pag-IBIG intended to help LGUs provide housing to its employees and constituents.

Under the program, LGUs can apply for a development loan for site development and house construction. The units to be constructed must be offered to employees and constituents for sale.

LGUs can borrow up to P20 million per phase for horizontal development and P40 million for vertical development with collateral. Collateral can either be an Original Certificate of Title or Transfer Certificate of title of the lot where the housing project will be constructed under the name of LGU. — (FREEMAN)