The House of Representatives Committee on Housing and Urban Development recently reviewed existing government issuances related to housing price ceilings in a bid to encourage greater private sector participation in the government’s mass socialized housing projects for the poor and middle-income earners.
The committee specifically tackled Joint Memorandum Circular (JMC) 3, series of 2023, or the Adjustment of the Price Ceiling for Socialized Subdivision and Condominium Projects that the Department of Human Settlements and Urban Development (DHSUD) and the National Economic Development Authority (NEDA) set; DHSUD Order 3, series of 2022, or the Revised Economic Housing Price Ceiling, and DHSUD Order 2021-004 or the Incentivized Compliance to the Balanced Housing Program.
Committee chairman and Negros Occidental 3rd District Representative Kiko Benitez said, “We must further strengthen the participation of the private sector in housing production, which seems regrettably to be actually declining even as we speak.”
“The Marcos administration targets to produce 6 million housing units by 2028.”
Benitez pointed out that the Marcos administration targets to produce 6 million housing units by 2028.
DSHUD Undersecretary Avelino Tolentino III reported to the panel that “there have been private entities that have invested well within the financial framework that is set by DHSUD-NEDA JMC”.
Tolentino pointed out the increase in the prices of units in condominiums, how a 32 square meter (sqm) unit or 28 sqm with loft that was priced at P580,000 under HUDCC Resolution 1, series of 2018, is currently priced at P850,000. He cited present economic conditions as the reason for the price hike.
He said the DHSUD and NEDA were authorized to jointly issue price ceilings for housing units every two years under Section 23 of RA 11201, or the DHSUD Act.
“The shift (in prices) is in line with the issuances of the current administration declaring the Pambansang Pabahay para sa Pilipino Housing (4PH) as a flagship program of the government and then bringing in private sector and private financing into the mix,” Tolentino added.
“We are hoping with these amounts set that we will be able to attract private developers, private contractors for them to invest their financial and technical expertise into projects, and then later on be paid via take-out by government financial institutions.”
“We are hoping with these amounts set that we will be able to attract private developers, private contractors for them to invest their financial and technical expertise into projects, and then later on be paid via take-out by government financial institutions primarily the Pag-IBIG fund which has at this point already set aside P250 billion in allocations for the expected take-outs,” he told the panel.
Lawmakers present on the discussion of the three government issuances on housing were Committee on Housing and Urban Development vice chairpersons Representatives Keith Flores and Marivic Co-Pilar, GABRIELA Party-list Representative Arlene Brosas and ACT-Teachers Party-list Representative France Castro, whom the chairman acknowledged for being present despite the House being still in recess.
Resource persons from NEDA, National Housing Authority, Home Development Mutual Fund, Social Housing Finance Corporation, National Home Mortgage Finance Corporation, National Real Estate Association Inc., Subdivision and Housing Developers Association, Chamber of Real Estate and Builders Associations Inc. and Organization of Socialized and Economic Housing Developers of the Philippines also attended the committee meeting.
