CREBA backs P24-B GSIS project

The Government Service Insurance Systems (GSIS) has opened to Chamber of Real Estate and Builders Associations (CREBA) member-developers the opportunity to construct housing projects through a multi-billion-peso homebuyers’ take-out facility under the system’s "Bahay Ko" program for homeless government employees. GSIS will allot P6 billion annually for the next four years, thus making available P24 billion for housing projects.

CREBA national president Florentino S. Dulalia Jr. immediately called on the housing and realty industry to support the GSIS "Bahay Ko" program as part of measures to boost the housing program for the low and middle-income families and help pump-prime the national economy.

GSIS president-general manager Winston F. Garcia and Dulalia signed the CREBA-GSIS memorandum of agreement last Friday in the GSIS board room, opening up for the first time to CREBA members-developers the GSIS homebuyers’ take-out facility.

Under the MOA, GSIS recognized CREBA as a non-government organization with the capability of effectively supporting the government program of providing decent housing and basic services to government workers and other sectors, reinvigorate the housing industry and create jobs for Filipino workers.

CREBA and GSIS also agreed to work together on the development, repackaging, and disposition of GSIS inventory of unawarded and unoccupied residential and commercial acquired assets in several sites in the country. These multi-million-peso idle assets may be disposed off to non-GSIS members.

Under the GSIS housing program for its still 600,000 homeless members, the loans will be released within five working days from submission of complete loan requirements for the mutual benefit of homebuyers and developers. The developers acting as loan contract originators, will not be subject to a buy-back provision for defaulting buyers. This provision is considered an onerous imposition on the developers.

The interest rates, the lowest in the housing market, are eight percent for a loan of P180,000 and less, 10 percent for P181,000 to P300,000 and 12 percent for more than P300,000.