Government to raise additional budget for housing

To address the critical housing problem, the government plans to raise additional budget to help subsidize down payments by low-income households, it was disclosed by Socioeconomic Planning Secretary and National Economic and Development Authority (NEDA) Director-General Dante B. Canlas during the recent monthly meeting of the Chamber of Real Estate & Builders Association, Inc. (CREBA).

"The administration has proposed to Congress an indexation of excise taxes on cigarettes and liquor to raise revenues that will support the housing program of the government," Canlas reiterated.

Moreover, Canlas said that part of the additional tax collection will defray subsidies for down payments and expansion of rent-to-own schemes under socialized housing.

Canlas said that unrealistic prices for housing units is not a preferred approach. The NEDA supports the adjustments to a realistic level of the threshold value for socialized housing, he added.

Meanwhile, reforms are underway to address the issue on providing homes to poor Filipinos who according to the National Anti-Poverty Commission (NAPC) are now estimated at 3.3 million in urban areas. These are: the land-titling process which aims to eliminate the proliferation of fake land titles; and coordination with the local government units (LGUs) to reduce the number of signatures required by LGUs for housing and urban development projects.

Moreover, on housing finance, the government is working jointly to strengthen the housing mortgage market via the securitization bill which was discussed recently at the Legislative Executive Development Advisory Council (LEDAC) meeting.

Meanwhile, Canlas urges government agencies in charge of housing to raise their efficiency levels. "The establishment of the proposed Department of Housing is a step to sustain programs of the government," he added.

"The success of the housing program depends on the government, both at the national and local levels, forging new and strong partnerships with business and communities," Canlas reiterated.