Pag-IBIG OKs P929 million loan for state housing program

MANILA, Philippines —  The Home Development Mutual Fund, commonly known as Pag-IBIG, has approved a P929-million credit line for the construction of condominiums under the government’s flagship housing program.

In a statement, Pag-IBIG said it greenlighted the P929-million revolving credit line for the Social Housing Finance Corp. (SHFC) to fund housing projects under the Pambansang Pabahay para sa Pilipino Housing (4PH) program.

The SHFC is mandated to undertake social housing programs that will cater to the formal and informal sectors in the low-income bracket.

The credit line will finance the construction of some 2,264 medium and high-rise condominiums in various parts of the country.

This will consist 996 units in San Fernando City, Pampanga; 352 units in Tondo, Manila; 416 units in Tagoloan, Misamis Oriental; and 500 units in Davao City.

Housing chief Jose Rizalino Acuzar said the credit line approval will better equip the SHFC to provide informal settler families with affordable housing in a safe environment under secure communities.

Pag-IBIG CEO Marilene Acosta, for her part, emphasized that the agency recognizes its role in providing the financing for socialized housing projects to become more accessible and affordable for low-income earners.

Pag-IBIG is the single largest source of home financing in the country today, with a share of nearly 40 percent of the home mortgage market.

To ensure the efficient use of funds, the revolving credit line contains safeguards which include the corresponding loan collateral provided by the SHFC, a maximum payment term of three years and provisions ensuring the release of funds for the intended projects.