Incentives sought for banks, institutions financing socialized housing projects

MANILA, Philippines — The government is looking at providing incentives to private banks and other financial institutions that will finance socialized housing projects.

President Marcos earlier called for the crafting of a system that would facilitate faster building and financing of low-cost shelters to help the government address the estimated 6.5 million housing backlog by the end of his term in 2028.

Marcos met last Wednesday with Department of Human Settlements and Urban Development (DHSUD) Secretary Jose Acuzar, Bangko Sentral ng Pilipinas Governor Felipe Medalla, and heads of the Bureau of Treasury, Pag-IBIG Fund, Government Service Insurance System, Philippine National Bank and the Land Bank of the Philippines.

“I think we can, there should be sufficient incentives… (an) arrangement for the private banks to come in,” he said.

The Chief Executive said a system should be put in place to find the country’s cash flow that will support the endeavor and, at the same time, incentivize private entities that will take part in the building and financing aspects.

Acuzar said the DHSUD looks at building one million houses a year or a total of six million houses by the end of Marcos’ term.

The DHSUD chief expressed optimism that this can be done by building in-city, mix-use residential hubs to cater to minimum-wage earners and middle-class families.

Acuzar said the housing program would need P36 billion a year for the next six years in cooperation with private lending institutions.

The housing program is not only seen to address the housing backlog, said Acuzar, but also vital in tapping the big economic pump-priming potential of the housing industry.

Acuzar said the department has already identified potential areas for the development of settlements and townships.

A statement released by the Office of the Press Secretary said representatives from BDO, Metrobank, UnionBank, Ayala Corp. and China Bank expressed their support for the President’s housing program, saying they will help in crafting the financing system to carry it out.

Earlier, Acuzar told the Senate finance subcommittee that his agency sought an allocation of P95 billion for next year to deliver on Marcos’ promise to build a million houses per year.

However, the Department of Budget and Management allowed only P3.95 billion or four percent of the amount requested and about half of the agency’s budget this year of P7.61 billion, said Acuzar.