The Chamber of Real Estate & Builders’ Associations Inc. (CREBA) is pushing for the passage of a bill that will bankroll a Comprehensive Home Financing Program (CHFP), a P270-billion fund.
In a statement yesterday, CREBA said the program will make all income-earning Filipinos entitled to fixed, low-interest, long-term housing loans, regardless whether or not they are members of the Social Security System (SSS), Government Service Insurance System (GSIS), or the Pag-lBIG Fund.
CREBA national president Noel Cariño underscored the group’s proposal in a recent policy review session with Housing Committee chair Rep. Francisco Benitez and OFW party-list Rep. Marissa del Mar Magsino at the House of Representatives.Under the CHFP bill filed in the past 17th and 18th Congresses, the annual funding of P270 billion will be sourced through bond investments by SSS and GSIS at P25 billion each; a minimum of P70 billion or all of Pag-IBIG Fund’s investible funds for housing as allowed by its charter; P100 billion from the unused or residual agri-agra funds of banks plus a P50 billion government budgetary allocation to serve the informal settlers’ segment for 20 years — all with mandatory guaranty cover from the Home Guaranty Corp.
These fund sources, Cariño said, have been identified by various existing laws and agency charters and need only to be integrated for effective administration to socialized and economic housing beneficiaries.
The CHFP is planned to be exclusive for home loan borrowers with no component for development financing to ensure that the funds will go directly for shelter acquisition by the homeless. If passed into law, the bill amends Republic Act No. 7835 or the Comprehensive and Integrated Shelter Finance Act of 1994. Payable up 30 years, CHFP loans for residential units in shall be up to P1.5 million at 3 percent fixed interest rate for socialized housing, and up to P3.2 million at 4 percent for economic housing, exempt from value-added tax.
The bill appoints Pag-IBIG Fund, in partnership with public and private employers, as home loan administrator and collector, with the National Home Mortgage Finance Corp. acting as secondary mortgage institution.
Qualified beneficiaries under the Urban Development and Housing Act and who have not acquired housing assistance from any government institution shall be eligible for home loans through the CHFP.
Carino said CHFP can help address the country’s more than 6.5-million units housing backlog as it addresses the perennial dismal funding allocation for housing. – Irma Isip
