Low-end developers cite gov’t housing measures

Private developers of socialized and low-cost housing subdivisions have welcomed recent measures undertaken by the government aimed at spurring housing delivery.

In a press statement, Organization of Socialized Housing Developers of the Philippines (OSHDP) president, Wilfredo Tan cited the Housing and Land Use Regulatory Board’s (HLURB) new policy that would expedite the issuance of License to Sell and Registration Certificate for a housing project, by virtually doing away with the required land Conversion Order from the Department of Agrarian Reform (DAR).

The policy, announced by Housing Secretary Michael T. Defensor, applies to tracts of lands already classified as residential, industrial, commercial or other related uses under the Comprehensive and Land Use Plans and Zoning Ordinance issued by HLURB or Sangguniang Panlalawigan.

"We have much awaited this new policy as it helps fasttrack the development permitting process involved in housing projects," Tan said. "It takes a lead time of at least one year to start a housing development and we are normally held long in obtaining clearance from the institution. While we appreciate the rationale behind the DAR requirement, we deem that lands already classified for the intended purpose need not be subject to another round of scrutiny, he added.

Meanwhile, the association also welcomed the adjustment of price ceilings approved recently by the Housing and Urban Development Coordinating Council (HUDCC). Socialized housing has been adjusted from P180,000 to P225,000 per residential unit, and low-cost housing from P500,000 to P750,000 per package. The revised definitions weighed on the 80-percent growth rate in the consumer price index for housing and repairs for 1995-2003, as reported by the National Statistics Office.

"Private developers have been constrained with increasing and spiralling price of labor and construction materials over the years. In our desire to deliver more competitive housing packages, this adjustment would certainly provide us some elbow room for cost recovery," Tan pointed out.

Tan also said that the positive moves of the government under the leadership of Secretary Defensor would prompt their sector for increased participation in housing delivery especially for our low-end countrymen.

Meanwhile, low-end housing developers have received a twin set of relief, which is seen as part of the "positive moves of government that would prompt their sector towards increasing participation in the housing delivery especially for the homeless low-income earners."

Tan said that the relief comes with the recent adoption of a new policy that would expedite the issuance of a license to sell and registration certificate for a housing subdivision, by virtually doing away with the required land conversion order from the Department of Agrarian Reform (DAR).