Gov’t to focus on socialized housing projects – Binay

August 25, 2010

DAVAO CITY, Aug. 21 (PNA) — The government will further lower the interest rates of housing loans for socialized housing packages to allow more people to access housing loans, especially the informal sector at very affordable rate.

 Vice President Jejomar Binay, the country’s Housing czar, announced during the national conference of the Organization of Socialized Housing Developers of the Philippines (OSHDP) on Friday at Grand Men Seng Hotel here that studies are ongoing to lower the interest rate to 3 percent.

He said current packages offered by the government housing agency of about P400,000 with monthly amortization of P2,300 is not a realistic package for the lower sector but this can be split to packages of P200,000 or P100,000 and with the lowered interest rate the amount for monthly payment could be at P350.

The amount, he said, will only be the cost for the house and the land will be sourced out through the local government units (LGUs) utilizing some of their idle properties through usufruct agreement.

Binay said in administering this kind of project, the developers can be given incentives from the Bureau of Internal Revenue in support to the lowering of cost of business operation.

He said the LGUs will identify the land and put in the roads and they will provide the financing for the construction of houses.

He admitted, however, that there are not enough funds in the government for socialized housing except that of Pag-IBIG Fund even as he said that because the Fund is already tax-exempt, the P2.5 billion savings could be used for projects under socialized housing.

Vice President Binay also addressed the luncheon General Membership Assembly of the Davao City Chamber of Commerce and Industry (DCCCII) where he said the relationship between government and the private sector is both through cooperation and coordination.

He said business is a continual dealing with the future and they deal not only with communities but the customers and consumers.

“As head of HUDCC, I also ask you to consider investing in building of homes and we should not only build houses for families but homes for families where their bodies could rest, their spirit soar and find love and peace,” he said.

He said this dream could not be possible without the help of the local government units of finding areas where these projects can immediately take off.

“We need to sustain this confidence and we need to show this to the world,” he said. (PNA) scs/Digna D. Banzon/lvp


Big demand for socialized housing, backlogs continue to grow in the country

August 21, 2010

“There is really a big demand for socialized housing and the backlogs continue to grow in the country’s housing business, according to the Organization of Socialized Housing Developers of the Philippines (OSHDP).

OSDHP press relation officer Santiago F. Ducay, however said they are hoping the new administration responds quickly to issues– citing for instance that new housing czar Vice President Jejomar Binay vowed to look into the possibility of lowering further interest rates to make housing more affordable.

Ducay said the current interest rates for socialized housing of a package of P400,000 is about six percent.

He said the current backlog by accumulation through the years is at 3.8 million and as the population grows at 2.8 percent about 900,000 new housing units are needed annually. Of the 900 thousand units, 70 percent of this is for socialized housing.

“If the government build 200,000 for socialized housing, the private sector match this with the same number or about 400,000, there’s still a backlog of 500,000,” he said.

Meanwhile, Ducay said their organization supports the call of President Simeon Benigno Aquino III to fight corruption. He said they respond to the challenges of the Aquino government in fleshing out and flushing out corruption in the construction agency.

Linda A. Tan, national president of OSHDP said they had been true to the call and in fact dropped one developer from their rooster for engaging in activities contrary to their principles of sound business operation.

Tan also heads RJ Lhinet Development Corporation, a builder of medium rise buildings and condominium in the National Capital Region (NCR).

Tan was in the city for a two-day housing convention which opened Thursday and ends Friday at the Grand Menseng. Tan said OSHDP polices its ranks and closely monitor their members.

The OSHDP, she said has to date 150 members. Before a developer is accepted, he has to pass a thorough screening and assessment by looking at one’s background and tract record.

Tan said Congressman Rodolfo G. Valencia, House Committee Chair on Housing and Urban Development disclosed he is filing a bill so that the Social Security System will be compelled to implement 30 percent of its investible fund to be dedicated to housing as stipulated in its charter.

She said when this will materialize, there will be more funds for socialized housing and citing the statement of Congressman Valencia that because Pag-IBIG Fund is now tax exempt perhaps the savings of P2.5 billion could be used to fund socialized housing projects.

“It has been the clamor of our sector for the government for sustainable funds to be made available for socialized housing developers,” she said.

On the other hand, Ducay said Congressman Valencia is also supporting the proposal of the housing sector for the creation of the Department of Housing.

The creation of the housing department will upgrade the Housing Urban Development Coordinating Council (HUDCC) to a department status.

“Right now processing of projects is quiet difficult as they deal with different shelter agencies. But if there will be a single department, transaction will be uniform with requirements and procedures,” he said.

The Land Use Law is equally important because developers will have concrete guide how and where to locate subdivisions especially so that lands in the provinces are mostly for agriculture and tourism.

In this aspect, Davao is a focused location city because it is ready with its city/municipal land use plan. All this specific concerns needed in the housing projects, will now be acted upon by the Department of Housing, the body that will regulate and issue policies related to housing.

The other concern that Tan raised is for socialized housing developers to be exempt of cash advances when utilities such as light and water will be introduced to the subdivision.

Tan said for the installation of power in the project site would cost them about P120,000 per post. If there will be more than 10 posts, the cost would be P1 million or more and the return of investment will take long because the refund will only be made when connections are tapped and the utility company starts to earn.

She said they do not expect overnight change but they are willing to cooperate with the government to polish and straighten out policies, so that socialized housing is acted upon and more poor people will have access to housing projects at cheaper cost. (PNA) LOR/Digna D. Banzon/lvp

RP’s home builders holds first nat’l confab in Davao City

August 18, 2010

DAVAO CITY, Aug. 18 (PNA) — About 200 members of the Organization of Socialized Housing Developers of the Philippines (OSHDP), will hold their first national convention to know the direction of government towards addressing the housing needs of the working class of the country to be held on August 19 to 20 at Grand Men Seng Hotel, this city.Dennis Molina, public information officer of OSHDP Davao said the Housing Czar who heads the Housing Urban Development Coordinating Council (HUDCC) Vice President Jejomar Binay will grace the convention.

Molina said expected to attend are heads of the government’s Shelter Agencies under HUDCC among them the Home Development Mutual Fund (HDMF), Housing and Land Use Regulatory Board (HLURB), Home Guarantee Corporation (HGC), National Home Mortgage Finance Corporation (NHMFC), Social Housing Finance Corporation (SHFC) and National Housing Authority (NHA).

He said House committee chair on Housing and Urban Development Congressman Roodolfo G. Valencia is guest speaker during the opening and will discuss their legislative agenda while Congressman Romero Federico Saenz Quimbo of Marikina City will discuss the highlights of existing or proposed laws that can simulate a better environment for Philippine housing.

He also said Senator Teofisto L. Guingona III is expected to present the Senate Legislative Agenda.

Meanwhile, Engr. Sol Lagmay, vice president of OSHDP Davao Chapter said they want to know which way the government is heading and a clear cut direction needed especially for socialized housing.

Lagmay said there is a big demand for socialized housing but then there are some concerns that their sector need to thresh out with other government agencies.

Lagmay mentioned that the slow release of Transfer Certificate of Title (TCT) of the Register of Deeds (ROD) has a big impact on the processing documents especially with Pag-IBIG Fund because the latter would require the TCT in the takeout of loans and this becomes a nationwide problem.

Lagmay said there is really a big effect in the conversion and take out because from only a number of days waiting period before it will take months even for the issuance of a certified copy of the title although she said they don’t have problem with Pag-IBIG because takeout would only take seven days for as long as the requirements are complete.

She said they even learned that their counterpart in Marikina would rather have the ROD operations are back to manual to ensure a speedy delivery of the required documents.

“I know the problem is temporary but with the voluminous record stored through the years this will take time,” she said.

She said they expect positive updates from the Land Registration Authority (LRA) as the computerized land titling process will also be discussed.

She said there is big demand for socialized housing especially here in Davao saying that if they look at the profile of the working class, this is the sector that needs housing of this type.

She admitted that there are only about seven developers here engaging in socialized housing, the reason of which is the high cost of raw land.

Properties here she said is quiet expensive and developing units for socialized housing compared to low-cost subdivision is almost the same that is why many would rather choose to build low-cost or middle level subdivisions.

She also said socialized subdivisions nowadays are built with amenities unlike before when they only allocate open spaces.

“But we see this as marketing strategy because buyers even for socialized housing already check on what other amenities the subdivision has other than roads and drainage,” she said.

Meanwhile Molina also revealed that they incur losses in terms of financing because their supposed to be collection in that particular period will also be delayed as ROD could not release to them the corresponding titles.

“The amount could be rolled out as additional capital for their project. When ROD implemented their computerization system starting January this year the process of release became slow and the period of waiting is longer,” he said.

The other concern that Lagmay raised is the attitude of the borrower as to their obligation to pay their loan.

She said with the buyback mechanism of Pag-IBIG Fund, they are strict in terms of loan approval because this will become a problem later.

“We would rather do it the right way like conducting a comprehensive background investigation of the borrower to save us from incurring problem in the future.” she said.

She said they welcome this scheme applied by the Fund because it will also protect them — their company, the borrower and the government housing institution.

As to the public-private partnership scheme, Lagmay said the government really must be strict in the implementation so as to avoid another massive foreclosure with a private corporation like the Balikatan Housing Finance, Inc. (BHFI).

“The borrowers must be screened thoroughly and government must also come up with realistic projects where homebuyers are given options that they can really afford to pay based on their net take home pay,” she added. (PNA)

Housing developers hold national confab in Davao City on Aug.19-20, 2010

August 4, 2010

Manila (PNA) – The Organization of Socialized Housing Developers of the Philippines (OSHDP) will hold its first ever National Convention on Aug. 19 – 20 at Grand Men Seng Hotel in Davao City, OSHDP president Linda A. Tan said Friday.

OSHDP is an assembly of private developers and allied interests nationwide involved in the development of socialized and low-cost housing.

Through the years, OSHDP has gained recognition from both the government and the private sector for successfully carrying its advocacies.

To boost the momentum and the gains that the housing sector has achieved in pump-priming the economy, the OSHDP Convention will focus on the theme: “Sulong Pabahay, Ginhawang Buhay”, A Stronger OSHDP – Government Partnership in Leaping Forward Through Socialized Housing.

The event will serve as an avenue for newly appointed government officials to share their views and their agency’s policies and programs affecting the sustainability of the real estate and housing sector.

All major stakeholders in the housing industry are invited to attend. The convention is expected to provide participants with excellent opportunity to be updated on relevant shelter issues, share insights and network with like-minded professionals in the real estate business.

The convention coincides with the week-long local celebration of the Kadayawan Festival in Davao City.

As such, participants are encouraged to extend their stay in Davao for a weekend of fun and entertainment. Separate local festivities and activities are being arranged specifically for convention delegates. (PNA)

VP de Castro urges regular payments of housing loan amortizations

May 15, 2008

Vice President and Housing czar Noli de Castro urged urban poor homeowners to also pay reguarly their home loan amortization as he exhorts everyone not to forget their obligation.

The Vice President in a Housing Summit May 9, 2008 at the Philippine Women’s College, Matina, Davao City met with the homeowners organizations of Davao City where he also awarded the Certificate of Title to beneficiaries of housing projects of unused government lands converted into sites for socialized housing.

The summit was also attended by Pag-IBIG Officers led by Deputy Chief Executive Officer and Executive Vise President Jaime A. Fabiana and SM Vice President Jose W. Banzon, Jr. Also present were Pag-IBIG branch managers Manolito Olegario of Davao, Rodrigo Suemith of General Santos and Elizabeth Tinagan of Tagum.

De Castro was elated saying that the Summit was a good opportunity where the urban poor and the stakeholders discussed on their housing concerns.

“Ang Davao City naman di mahilig ng libre at huwag tayong mag short cut sa proseso kasi maraming sabit pag magshort cut tayo,” he said.

With regards to their concern on housing, the Vice President encouraged homeowners to send their issues and concerns to his office as he is willing to answer them provided they must indicate their addresses so they would know where to send the feedback.

De Castro also announced that because of so many complaints they had shortened the processing of requirements among shelter agencies.

House Speaker Prospero C. Nograles in a public hearing in Davao City on May 8 said homeowners must take the opportunity once the consolidation of House Bill Nos. 89, 411 and 1932 be firmed up.

The House of Representatives Committee on Housing is consolidating all the bills with regards government housing program to gather all the inputs of different sectors raised during public hearings.

House Bill No. 89 is an “Act to establish a socialized and low cost housing restructuring program, providng the mechanism therefore, and for other purposes,” authored by Rep. Rozzano Rufino B. Biazon, House Bill No. 411 is authored by Rep. Eduardo C. Zialzita re “An act instituting a socialized and low cost housing loan restructuring program, providing the mechanism therefore, and for other purposes”, and House Bill No. 1932 is entitled “An act instituting a socialized and low cost housing loan restructuring program, providing mechamism therefore, and for other purposes”, authored by Speaker Prospero C. Nograles.

Nograles said the only way to stop foreclosure is the restructuring program and they are finding ways to fill the gap even as he said that they had lowered the interest rate and is now pegged at six percent.

Restructuring is a temporary relief of homeowners whose account has been delinquent and facing foreclosure and once the law this will be the chance for those facing foreclosure pero hindi naman pwedeng hindi tayo magbayad, Nograles pointed out.

“Once the homebuyer avails of restructuring they must also pay their obligation because these shelter agencies also have operating expenditures,” he said.

And definitely when we borrow we must also pay,” the House Speaker stressed.