CREBA pushes bill on housing loans

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The country’s largest organization of real estate and housing industry participants is once again urging the passage of a bill that will make all income-earning Filipinos entitled to low-interest, long-term housing loans, even if they are not members of the Social Security System (SSS), Government Service Insurance System (GSIS), or the Pag-lBIG Fund (Home Development Mutual Fund).

Charlie AV Gorayeb, national president of the Chamber of Real Estate and Builders’ Associations Inc. (CREBA), said that the initial P350 billion for its proposed Centralized Home Financing Program (CHFP) will come from yearly bond issuances by the SSS at P5 billion; GSIS at P25 billion; a minimum of P70 billion up to a maximum of 70 percent of Pag-IBIG Fund’s total investible funds for housing; P200 billion from the unused or residual agri-agra funds of banks; plus another P50 billion from government’s annual budget, all with mandatory guaranty cover from the Home Guaranty Corporation.

The proposed bill thus amends Republic Act 7835 or the Comprehensive and Integrated Shelter Finance Act (CISFA) of 1994.

Those fund sources, according to CREBA National Chairman Noel Toti Carino, have already been identified by law and need only to be integrated for effective administration to beneficiaries.


As proposed by CREBA, the CHFP shall be exclusive to borrowers of socialized and economic home loans, with no component for development loans, thus ensuring the use of funds strictly for shelter acquisition by the homeless, estimated to be at least 5.7 million families nationwide.

Payable in 25 or more years, loans for residential units in subdivisions or medium-rise condominium buildings shall be P1.5 million and below at 3-percent fixed interest rate for socialized housing, and above P1.5 million up to P3.199 million at 4-percent for economic housing.

All income-earning citizens who qualify as 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.

“Thus, a secondary mortgage institution shall be organized by the government to lead this housing capital development effort to set in motion the country’s securitization program for housing,” Gorayeb said.

CREBA envisions the CHFP to have two components: loans program under Pag-IBIG Fund; and housing securitization under the National Home Mortgage Finance Corp.

The proposed bill is foremost in CREBA’s 5-point agenda in pursuit of its vision of “A Home for Every Filipino: Closing the Housing Gap,” the center piece of its 26th annual national convention slated in Davao City from October 25-28 this year.

The 5-point agenda also covers affordable homes for employees in urban areas; lands for residential, commercial and industrial development; efficient housing regulations; and a full-fledged housing and urban development department.

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