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The PHP250 billion given by the Home Development Mutual Fund (Pag-IBIG Fund), according to Department of Human Settlement and Urban Development (DHSUD) Undersecretary Avelino Tolentino III, will significantly affect the department’s implementation of President Ferdinand R. Marcos Jr.

Tolentino stated in the Laging Handa briefing that the budgetary allocation will essentially improve the home development’s funding.

However, he added that the DHSUD is still working with other government financial institutions (GFIs) to designate their respective investment funds for the national housing program. These GFIs include the Government Service Insurance System (GSIS), the Social Security System (SSS), Landbank of the Philippines, and the Development Bank of the Philippines (DBP).

Tolentino claimed that only a few weeks after the Office of the Press Secretary (OPS) revealed that Marcos would issue an Executive Order (EO) requiring the DHSUD to make government lands available for the housing scheme, the fund became easily accessible.

According to him, leveraging public lands for housing initiatives would result in lower housing unit manufacturing costs.

“Baka po bumaba ang cost ng housing unit kaya bababa rin po ang amortization at tiyak po bababa rin po ang default at tiyak po bababa rin po ang default or tataas po ang kasiguraduhan na makakapagbayad ang ating mga kababayan,” said Tolentino. “There may be lower housing unit costs so that the amount

Additionally, he claimed that developing housing complexes on vacant public lands would stimulate local commerce and expand the government’s tax base.

He added that it was also a means of aiding the pandemic-related recovery of our economy.

He claimed that the housing initiative is aimed at regular income earners and residents of unofficial settlements.

“We think that if the national government provides housing interest subsidies to our residents, they will undoubtedly avoid default and the risk of default on their part will be reduced. This condition will entice the private sector or GFIs to purchase the housing units from our banks. The money received would be applied to the development loans after the take-out, he stated.

If that occurs, we will see that this strategy and the program’s financial structure are cyclical in nature, which means that our money continuously travel around and around in a complete cycle and that we continue to have adequate budget for the upcoming batch of housing projects, the official noted.

Cebuano

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Filipino

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