The umbrella association of real estate and housing industry players expressed support to a proposed bill that will create a comprehensive home financing program to make all income-earning Filipinos entitled to fixed, low-interest and long-term housing loans.
Chamber of Real Estate & Builders Associations Inc. national president Noel Toti Cariño in a recent session with House of Representatives committee on housing chair Rep. Francisco Benitez and OFW party-list Rep. Marissa Magsino, said the program is necessary if the national government wants to address the more than 6.5 million housing backlog.
The CHFP bill, filed in the 17th and 18th Congresses provides an annual funding of P270 billion to be secured from bond investments by the Social Security System at P25 billion; Government Service Insurance System at P25 billion; and a minimum of P70 billion or all of Pag-IBIG Fund’s investible funds for housing as allowed by its charter.
It proposed an additional P100 billion to be sourced from the unused or residual agri-agra funds of banks plus a P50-billion government budgetary allocation to serve the informal settlers’ segment for 20 years―all with mandatory guaranty cover from the Home Guaranty Corp.
The CHFP is planned to be exclusive for home loan borrowers with no component for development financing to ensure that the funds will go directly for shelter acquisition by the homeless.
If passed into law, the bill would amend Republic Act No. 7835 or the Comprehensive and Integrated Shelter Finance Act of 1994.
Payable up to 30 years, CHFP loans for residential units will be up to P1.5 million at 3 percent fixed interest rate for socialized housing, and up to P3.2 million at 4 percent for economic housing, VAT-free.
The bill appoints Pag-IBIG Fund, in partnership with public and private employers, as home loan administrator and collector, with the National Home Mortgage Finance Corp. acting as secondary mortgage institution.