Reversing the 3.9 million unit housing backlog


DO you know what Pag-IBIG, the government’s low-cost and socialized housing agency, stands for? “Pag” is from the first syllable of “Pagtutulungan sa Kinabukasan.” “I” is from ikaw, “B” is from bangko, “I” is from Industriya and “G” is from Gobyerno. Ikaw, Bangko, Industriya and Gobyerno are the four sectors of Philippine society being harnessed by the Pag-IBIG organization to provide its members with adequate housing by helping the members save effectively and thus, afford to have their own houses or condo units.

Pagtutulungan sa Kinabukasan: Ikaw, Bangko, Industria at Gobyerno has been a well-run membership organization.

The Pag-IBIG Fund is used to provide low-cost and socialized house and lot packages or condominium units either for rent or for sale to low-income Pag-IBIG members who cannot afford the housing packages available in the normal real-estate market.

The houses and condo units are, true to Pag-IBIG’s mandate, decent as well as—thanks to the Pag-IBIG Fund—affordable.

The success of Pag-IBIG happens only because developers support the Home Development Mutual Fund (that’s the formal name of the Pag-IBIG Fund).

Pag-IBIG says the top 10 developers who have actively partnered with the Fund as of May 2014 are Cumberland Development Group, Barklane Realty Corporation, Homemark, Inc., Ambition Land Inc., Phinma Property Holdings Corporation, Acerhomes Development Corporation, PA Alvarez Properties and Development Corporation, DDC Land Inc., Borland Development Corporation and Axeia Development Corporation.

Eight of these companies supporting the Pag-IBIG Fund lending programs are members of the Subdivision and Housing Developers Association (SHDA).

SHDA is working to eliminate the country’s housing backlog by 2030. The estimate is that the housing backlog is 3.9 million units. The association is a prime mover in the technical working group on the Pag-IBIG Fund’s “End-User Home Financing Program and Affordable Housing Loan Program.”

“Through its close collaboration with Pag-IBIG, SHDA aims to address housing backlog issues such as affordability and accessible end-user financing. This is in line with the Philippine Housing Roadmap’s requirement for a comprehensive government housing subsidy for specific segments, with the Pag-IBIG Fund among the key government agency players,” Ricky Celis, the SHDA president, says.

The SHDA has been helping Pag-IBIG raise the public’s awareness of the benefits of being a fund member and partner.

Pag-IBIG has reported that loan takeouts from January to April 2014 had reached P6.4 billion. The amount represents housing loans for the National Capital Region alone, with April loans reaching P1.46 billion.

Atty. Darlene Marie Berberabe, president and CEO of Pag-IBIG Fund, shared these findings at the recent 2nd SHDA Business Forum. SHDA hosts the quarterly forum to bring public and private sector organizations together in solving the housing backlog.

At the forum, Pag-IBIG also announced that through a special arrangement with the Land Registration Authority (LRA), borrowers will now be able to easily track and monitor their transactions. “Soon, improved LRA systems will process the sale and mortgage simultaneously, assigning a unique entry number for each transaction. This will result in faster releasing of annotated or new titles,” said Atty. Berberabe.

Pag-IBIG has also allocated a P15 billion fund for special loan packages for typhoon Yolanda survivors. Housing loan borrowers can avail of interest-free home rehabilitation or reconstruction loans. Pag-IBIG commendably extended the six-month moratorium on amortization payments for existing housing loans and short-term loans of members hurt by Yolanda.

Pag-IBIG announced that its Developmental Loan Program for Socialized Housing Projects was also underway. The loan goes to the development of residential subdivisions for socialized housing projects on a lot jointly determined by the LGU and Pag-IBIG Fund. Some 22 project sites have already been identified across Leyte, Capiz, Cebu, Negros Occidental, Iloilo and Eastern Samar.

SHDA has some 200 members which are some of the country’s largest developers.

Each of these has made a commitment to help reverse the national housing backlog.

All the news about corruption in government having become worse in the Aquino administration than in previous presidencies is depressing. The steady and untainted performance of Pag-IBIG–and the support it gets from the private sector, like the developers who belong to SHDA—is a welcome source of hope that our country can continue to rise to a better state.


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  1. Ito ang dapat pamarisan ng ating ibang ahensiya ng ating gobyerno. Kung ganitong ehemplo o pamaarisan ng iba pang ahensiya ng ating gobyerno, malamang na may pag-asa pang malutas ang kahirapan sa ating bansa.

  2. Claro Apolinar on

    Good editorial. And you prudently did not mention that Pag-IBIG is one of the well-run agencies under Vice-President Jejomar Binay, who is the front-runner in surveys for the 2016 presidential election.