The Department of Human Settlements and Urban Development (DHSUD) thanked President Ferdinand Marcos Jr. for approving the issuance of sovereign guarantee for shelter projects under the Pambansang Pabahay para sa Pilipino Housing (4PH) program.
In a press briefing held in Malacañan Palace on Wednesday, DHSUD Secretary Jose Rizalino Acuzar said the President’s nod is a “gamechanger” as it would address homelessness in the Philippines.
“We at DHSUD, including the key shelter agencies, are very grateful to the dear President, to our economic managers for their support. I am optimistic that this guarantee will make the difference in our quest to finally address homelessness in the country,” Acuzar said.
“This guarantee is another solid testament of our President’s commitment to uplift the lives of all Filipinos by providing decent yet affordable shelters through a whole-of-nation approach. Through this, we will accelerate the advancement of 4PH nationwide because our private partners have stronger confidence in the program,” he added.
Currently, there are 53 ongoing projects under 4PH, which are mainly funded by the private sector, Secretary Acuzar said.
This manifests strong government and private sector partnership in carrying out socialized housing, he said.
Through the sovereign guarantee, government financing institutions (GFIs) could extend developmental loans to the National Housing Authority (NHA) and Social Housing Finance Corporation (SHFC) to construct 4PH projects, with the government assurance to expedite the loan evaluation process and housing production.
Through the End-User Financing Program, the Home Development Mutual Fund (HDMF) or Pag-IBIG Fund shall take out the individual housing loan of beneficiaries.
Pag-IBIG shall then release the loan proceeds directly to the GFIs that granted the developmental loans. Upon payment to the GFIs, the loan obligation is fulfilled and the guarantee is extinguished.
Based on Pag-IBIG data, the cancellation rate of socialized housing loans is 9.11 percent.
However, the appreciation of property value could outpace the holding costs, such that Pag-IBIG still stands to gain upon resale of the property.
DHSUD said there is up to 1.2 million housing projects already in the pipeline.
The agency is eyeing up to 3.2 million housing units by 2028.
