Rep. Howard Guintu of the Pinuno party-list has urged the Department of Human Settlements and Urban Development (DHSUD) to raise the price ceiling for socialized housing to attract more developers to take part in socialized housing projects.
Guinto said some developers may not be interested and willing to invest in socialized housing because they don’t find this project economically viable.
“But we have to remember that socialized housing is the need of the majority of our population dahil low-income workers ang karamihan ng labor sector natin,” Guintu, vice chairperson of the House Committee on Housing and Urban Development, said.
“There is a decrease in the number of socialized housing units produced since developers opt to just purchase bonds instead of developing socialized housing units as part of their compliance with Section 18 of RA 7279 or the Urban Development and Housing Act of 1992, as amended, due to the unfeasible price ceilings,” he added.
Given this, Guinto cited an urgent need to adjust and formulate a new ceiling “that is realistic and responsive to the demands of the market and prevailing economic conditions in the context of the post-pandemic new normal,” he further stressed.
The Pinuno lawmaker noted that for the first quarter of 2023, socialized housing units comprised only 2,968 of the total 21,870 homes financed by the Home Development Mutual Fund (Pag-IBIG Fund), equivalent to 18 percent or 989 housing units per month.
Guintu was referring to the latest figures released by Pag-IBIG Fund for its Affordable Housing Program (AHP), a special home financing program specifically designed for minimum wage and low-income members.
For his part, Guintu filed House Resolution 608 in December last year, urging the DHSUD and the National Economic Development Authority (NEDA) to review and revise the price ceiling for socialized housing to conform to prevailing economic conditions.
He argued the prevailing economic conditions in the country are drastically different from the conditions that were considered when adjustments in the price ceiling for socialized housing were last made in 2018.
Guintu also said the multi-tiered price ceilings based on floor area introduced in 2018 through Housing and Urban Development Coordinating Council (HUDCC) Resolutions 1 and 2, series of 2018, should be abandoned.
“There should just be one price ceiling applicable for socialized subdivision projects and a single price ceiling for socialized condominium projects,” he said.