CREBA pitches housing policy overhaul

CEBU, Philippines — The Philippines’ housing policy could shift toward subsidizing homebuyers rather than requiring developers to build socialized housing, under proposals by the Chamber of Real Estate and Builders’ Associations Inc. (CREBA) to ease affordability constraints and make private sector participation in addressing the housing backlog more effective.

The group is urging the government to introduce interest subsidies for qualified borrowers, review socialized housing compliance rules and streamline licensing requirements, arguing that current policies risk producing housing units that beneficiaries cannot afford while tying up developers’ capital in projects with limited demand.

National President Noel Toti Cariño said at a press conference on Oct. 21 ahead of the group’s national convention in Cebu sheduled Oct 22 at the Radisson Blu Cebu, that housing policy should focus not only on increasing unit production but also on enabling beneficiaries to purchase and occupy homes.

“This way, we are addressing the issue of affordability, not just the issue of production of homes,” Cariño said.

Under CREBA’s proposal, participating developers would make non-recoverable contributions to a fund administered by the Home Development Mutual Fund, or Pag-IBIG Fund. The money would subsidize part of the interest payments of qualified homebuyers, reducing their monthly amortization and making housing loans more manageable.

CREBA has submitted the proposal to the Department of Human Settlements and Urban Development (DHSUD), Pag-IBIG Fund and the executive branch. The association said the recommendation is being studied by the concerned agencies.

The proposal emerged from a technical working group established by CREBA to explore alternatives to existing socialized housing compliance requirements.

The association argues that requiring developers to construct designated housing units does not guarantee that the intended beneficiaries can afford them or that the properties are located where demand exists.

Some projects remain vacant because of accessibility constraints or weak demand, while developers absorb the costs of land acquisition, construction and beneficiary identification, he said.

An interest subsidy could direct assistance to qualified buyers at the point of purchase, while giving developers greater flexibility to deploy capital toward projects with viable demand, he added.

The proposal would, however, require a workable funding structure and clear eligibility rules to ensure that subsidies reach intended beneficiaries without undermining the financial sustainability of housing programs.

Financing gap divides housing market

CREBA Executive Vice President Fernando Martinez said developers remain willing to support efforts to narrow the housing deficit but need clearer implementation rules, stronger coordination with local governments and more effective collaboration with government agencies.

National convention chairman Jose Soberano III said housing policy should distinguish between households that can qualify for financing but struggle with monthly payments and those that cannot afford to borrow in the first place.

The first group could benefit from Pag-IBIG-backed loans and interest subsidies, while households without sufficient income or borrowing capacity may require more direct government intervention through agencies such as the National Housing Authority.

Possible rent-to-own arrangements could provide another route to homeownership for households that cannot readily qualify for conventional housing finance, Soberano said.

For developers, the challenge is to reconcile affordability objectives with the economics of project delivery. Land, construction and compliance costs must be recovered before capital can be reinvested in additional developments, making a sustainable financing framework essential to continued private sector participation.

CREBA said its more than 300 members and allied industry organizations are prepared to contribute to housing initiatives, provided the government establishes practical guidelines and coordinates resources, technology and design solutions.

Industry seeks stronger public-private coordination

The proposals reflect the real estate industry’s push for a housing framework that aligns government assistance with private sector investment and the financial capacity of prospective homeowners.

Martinez said closer coordination among public agencies, local governments and developers could improve the implementation of housing programs and make better use of private sector resources.

CREBA is raising the proposals during its 53rd National Convention in Cebu, which brings together developers, contractors, builders, suppliers and other industry stakeholders to discuss policy and business conditions affecting the property sector.

About 400 to 500 delegates had indicated plans to attend the gathering, which carries the theme “Beyond Shelter, Creating Communities, Transforming Lives.”

The association said the convention would provide a platform for presenting recommendations to the government, particularly on how socialized housing compliance can be redesigned to deliver measurable benefits to intended beneficiaries.

For CREBA, the policy shift is intended to move the industry beyond construction quotas toward a model that combines public assistance and private sector capacity to make homeownership more attainable.

The effectiveness of the proposed changes will depend on whether the government can translate the recommendations into clear rules, sustainable financing and housing programs that match the needs and incomes of Filipino households.