The Social Housing Finance Corp. (SHFC) will float P2.7-billion bonds to raise funds for the agency’s community-driven programs that address the country’s housing backlog.
Arnolfo Ricardo Cabling, SHFC president, at a forum hosted by the Organization of Socialized and Economic Housing Developers Inc. last week said the Balai Community Mortgage Program (CMP) Asset-Backed Securities (ABS) Bonds will be issued in August at a discount of 90 percent of redemption value redeemable after five years.
The bonds will be issued to at least three, but not more than 19, real estate developers and which qualify as their alternative full compliance to the Balanced Housing Act.
Republic Act (RA) 7279 as amended by RA 10884 requires subdivision developers to set aside 15 percent and condominium developers 5 percent of total area or project cost to socialized housing.
“As partners in the private sector, you might be able to help us generate the necessary and the needed funds for us to be able to continue doing our mandate. It’s a low risk investment because this is backed by tangible assets that allows the recoverability of the fund. It’s a convenient, easier, cheaper and faster compliance,” Cabling said.
Cabling added the agency needs funds to fulfill its mandate of providing homes to low-income households. Its socialized housing rates are at 6 percent for those with regular income, 4 to 4.5 percent for those with seasonal incomes and even up to 2 percent for those who need help.
With budget for housing even by the government at less than 1 percent of total national budget, Cabling said SHFC’s “ mandate is so huge, so big and so burdensome.”
“We are supposed to, as much as possible, eliminate, eradicate or reduce the homelessness problem of our communities. Right now, we have about 6.5 million Filipinos considered homeless, and that number is increasing by 100,000 plus every year. So how are we able to catch up?
Records will show the combined housing production of the four shelter agencies under DSHUD (Department of Housing and Urban Development) is doing 100,000, 150,000. It’s just enough to catch up with the increasing number annually,
SHFC currency has a P25-billion account portfolio, with 3,073 projects. – Irma Isip
