Gov't shelter agencies to provide 1.5 M homes by 2016

MANILA, Philippines - Government housing agencies have committed to provide financing for 1.5 million homes by 2016, Vice President Jejomar Binay said yesterday.

Binay, who chairs the Housing and Urban Development Coordinating Council (HUDC) and the Mutual Development Fund (Pag-Ibig Fund), also assured developers that tax incentives are available for private companies engaged in socialized housing as provided for under Section 29 of Republic Act 7279 or the Urban Development and Housing Act (UDHA).                              

“HUDCC is currently evaluating the issue of non-availment and will hold a dialogue with the Bureau of Internal Revenue for a uniform application of such incentives,” Binay said.        

He said the target number of 1.5 million homes to be built by 2016 does not include units to be built using funds from private banks, non-government organizations, local government units, and private developers.                              

“This figure was not plucked out of thin air, but was reached after a careful review of targets, capabilities and resources,” Binay said in a speech at National Developers Convention held at the Dusit Thani hotel on Friday.

He appealed to developers to faithfully comply with the 20 percent balanced housing requirement under the UDHA. Section 18 of RA 7279 requires developers of subdivision projects to develop an area for socialized housing equivalent to at least 20 percent of the total subdivision area within the same city or municipality.          

Binay said the HUDC is now in the process of amending the implementing guidelines of Section 18 of the law.            

 “Instead, it aims to encourage the private sector to contribute to the production of more low cost housing and provide shelter to majority of our countrymen,” Binay said.                    

He urged developers to have a dialogue with Pag-Ibig Fund to address their concerns about financing.                                                                          

“We are aware of the issues and challenges on your side of the business. We welcome your participation, we understand your concerns, and in the same manner we hope that you understand that we in Pag-Ibig are also mandated to protect the interest of the fund and its members,” Binay said.