P220B available for housing

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The Chamber of Real Estate and Builder’s Associations Inc. (CREBA) on Tuesday said that P220 billion are available for low-cost housing under various laws.

The fund can be tapped to address the current 5.5 million housing backlog and the need to build half a million units each year for the next 20 years.

CREBA national chairman Charlie Gorayeb said that top in CREBA’s legislative initiatives is a proposed measure amending Republic Act 7835 or the Comprehensive and Integrated Shelter Finance Act (CISFA) of 1994. He said that the country must finally set in motion a securitization mechanism that particularly targets the housing needs of the low-income earners and marginalized.

“We need to address the 5.5 million housing backlog now and build at least 10 million housing units by 2025 because the problematic housing situation is already bearing heavily on our people’s economic and social growth,” Gorayeb said.


CREBA would like to establish a Centralized Home Financing Program (CHFP) using annual investment in bonds worth P25 billion by SSS, P25 billion from GSIS and P70 billion by the Pag-IBIG Fund as mandated by their respective corporate charters. Another P100 billion will come from the un-used agri-agra funds of banks.

Section 11(b) of CISFA provides that a set of non-budgetary funding sources shall be used to augment the annual national housing budget. This includes unused agri-agra allocation funds from banks which “shall be invested in socialized and low-cost housing.” Bangko Sentral issued memorandum circular 190 as early as 1999 to provide guidelines on the usage of said funds.

Noel Toti Carino, national president of CREBA, said that CHFP will allow all qualified income-earning citizens, whether or not members of the SSS, GSIS or Pag-IBIG Fund to borrow, for as long they have no outstanding government housing loan. The funds shall then be the spring-board for the operation of a long-term Mortgage-backed Securitization Program.

Led by a secondary mortgage institution (SMI) organized by government, this scheme shall entail the formulation and implementation of a securitization, capital and secondary market operations to increase and sustain funds available for housing development.

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