Key issues were identified, with intimations of detailed responses recognized as "general directions" in such areas as housing finance, production, regulation and urban development, and institutional development. Yes, the first step was taken. Now, for the second step – an Urban Forum to work out concrete actions that will implement the indicated directions.
That, in brief, was how the Summit on Housing and Urban Development convened by President Gloria Macapagal-Arroyo at Malacañang was accomplished a fortnight ago. Through it, and earlier regional consultations among government, business and private sector, and civil society, the spirit of tripartism was fostered.
Fully aware that finance is "a key concern in the delivery of housing services," the summit sought a centralized institutional mechanism to manage and administer government housing assistance and subsidies for the formal and non-formal poor." This is a major CREBA advocacy for a Comprehensive Home Financing Program, which is part of its package of housing reforms. Most of these reform components, including the establishment of a full-fledged Department of Housing and Urban Development, have been consolidated in the proposed Omnibus Housing and Urban Development Act introduced by Rep. Eduardo C. Zialcita in the House of Representatives.
The Summit also sought the creation of such a Department which aims to systematize the functions of various housing agencies into a total effort in the "war" against growing homelessness in this country.
But, between now and, perhaps, even during and shortly after, the concretizing work of the forthcoming Urban Forum, the Housing and Urban Development Coordinating Council (HUDCC) will continue what Secretary Michael T. Defensor called "current initiatives" to address the issues. For time, more than ever, is of the essence, and government must continue working.
Defensor said government responded to the tri-sectoral proposal to rationalize the grant of housing subsidies to ensure these are targeted and transparent, and channel them to those who really need help. While the mechanism is still to be drawn up and funding is be sourced, the interest subsidy scheme will continue.
An announcement that should be welcomed by developers and homebuyers alike was about Pag-IBG Fund’s restructured interest rates. The new major thrust in its housing program to allow more members to avail themselves of housing loan benefit. Interest rates have been lowered as follows: from 12 percent to nine percent for loans up to P180,000; from 16 percent to 12 percent for over P180,000 up to P500,000; 16 percent for over P500,000 to P2 million. The interest rates cover the entire range of low-cost, economic and middle housing house-and-lot packages.
The new interest rates will not only attract more people to join Pag-IBIG, but these may well create a big impact on the government’s housing program and even help pump-prime the economy.
Focus shifted to ongoing programs to liquefy existing housing mortgages, receivables and assets worth P90 billion, to float Community Mortgage Program bonds and securitize the old Unified Home Lending Program mortgages. This is expected to raise upfront some P15 billion fresh money.
The Home Guaranty Corp. will float socialized housing bonds, the proceeds of which will be used for relocation programs. HGC is working for the release of a P10 billion capitalization fund, so private and government financial institutions will go into housing and support initiatives to securitize and issue housing-related instruments and securities.
A lending window will be opened for the financing needs of the informal sector for mortgage loans or housing material loans. Pag-IBG Fund and the Land Bank of the Philippines have launched a pilot program for farmer-cooperatives.
Programs are being worked out to restructure and condome penalties of loan borrowers under the old UHLP. The collection efficiency for mortgages with National Home Mortgage Finance Corporation and CMP is 47 percent while that for Pag-IBIG’s mortgages is 70 percent.
The low utilization of housing loans in governmental financial institutions under the Multi-Window Lending Scheme is being discussed with these banks. Of the P6 billion fund available at DBP, only P1.81 billion was availed of. At GSIS, P127.8 million out of P6 billion, and at LBP, P188 million of its P6 billion. The plan is for LBP and DBP to focus on developmental loans for sites and services programs and livelihood component loans for housing cooperatives, among others. These state banks may also take part in the secondary mortgage market by investing in instruments issued against mortgagees. There are other important programs being looked into or now being carried out by HUDCC.