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Monday, April 22, 2024

Pooled GFI funds eyed for housing program

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THE national government plans to pool resources from government financial institutions (GFIs), private sector partners, and local government units (LGUs) to build more housing projects for the Pambansang Pabahay program, according to the Department of Human Settlements and Urban Development (DHSUD).T

DHSUD Avelino D. Tolentino III said in a televised interview on Tuesday that the housing program aims to adopt a “whole-of-nation approach” to build more houses under this program.

In fact, he said GFIs such as the Social Security System (SSS), Government Service Insurance System (GSIS), Development Bank of the Philippines (DBP), and the LandBank of the Philippines have committed to support the Pambansang Pabahay para sa Pilipino housing program to ensure that there will be developmental loans to kick-start the construction  of the housing program.

“Ngayon po, noong atin pong groundbreaking na ginawa sa Palayan City, Nueva Ecija…kasama rin po nating lumagda ang GFIs gaya ng SSS, GSIS, DBP at saka Landbank of the Philippines kung saan sila din po ay nag-commit ng suporta para sa ating Pambansang Pabahay program [In our groundbreaking done in Palayan City, Nueva Ecija, the GFIs  like  SSS, GSIS, DBP and Landbank of the Philippines joined us, and committed support for our Pambansang Pabahay program],” Tolentino said.

Tolentino emphasized that the funds allotted for the housing program used to come from the budget of the national government. But, with this new program, he said DHSUD is seeing the need to pool funds from other institutions such as PAG-IBIG Fund, SSS, GSIS, Landbank and DBP which he said can lend money to the developers, contractors or LGU partners of DHSUD.

“So what will happen is this: those funds will serve as developmental loans that will kick start a housing construction and once that project is completed, it will be subject of bank takeouts. Then our GFIs will be repaid by the borrower/developer—that will allow our GFI to again relend the money for the next batch of housing programs,” Tolentino said, partly in Filipino.

Tolentino said phase 1 of the 11-hectare property in Nueva Ecija is expected to house 4,000 units. It is a township development wherein DHSUD plans to put up schools, open spaces, parks, market place, health center, and Barangay center. Tolentino also stressed that this is a “stone’s throw away” from workplaces and the city center.

The Marcos administration aims to build 6 million houses under the flagship housing program in the next six years.

In November, the Home Development Mutual Fund or Pag-IBIG Fund committed P250 billion for the administration’s goal.

Meanwhile, the Pag-IBIG Fund also signed a memorandum of agreement (MOA) with the LGU of Bacolod City for the construction of 10,000 housing units for informal settler families (ISFs) in November.

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