New ceiling for socialized housing lauded during Housing Expo
THE HUDCC recently approved a resolution increasing the economic housing loan ceiling from P1.25 million to P1.7 million. At the same time, the agency also set the price ceiling of P1.7 million for economic housing, under Batas Pambansa No. 220.
The adjustment was prompted by these factors:
- Since September 2006, the country’s consumer price index has risen by 40.32 percent while the construction materials wholesale price index has risen by 34.75 percent.
- The HUDCC also took into account the affordability level of the target market for economic housing based on the average income of families from the fourth to the eight deciles using the 2012 Family Income and Expenditure Survey data from the Philippine Statistics Authority.
The Subdivision and Housing and Developers Association believes the ceiling adjustments should attract developers to produce more economic housing units and at the same time enjoy perks including the income tax holiday since development of economic housing (horizontal and vertical) falls under the activities included in the 2014-2016 Investment Priorities Plan of the government.
The 36-percent increase, approved June 8 by the HUDCC board and announced July 14, took into account the cost of construction materials that has increased by 34.75 percent since 2006 along with the consumer price index that had risen by 40.32 percent.
“The economic conditions have changed so much since 2006, the year when the previous P1.25-million ceiling has been set. We are very glad that the agency heeded our proposal, which we forwarded late last year,” said Subdivision and Housing and Developers Association (SHDA) president Armenia Ballesteros during Thursday’s opening of the four-day 2nd Housing Expo held at the SM Megatrade Hall 1 in Mandaluyong City.
Ballesteros added that it is important to consider the role social housing should play now and in the future. “How can it help the thousands of Filipino families get on in life? How can it contribute to the kind of communities we want to live in? Indeed, social housing itself has changed along with its residents’ expectations.”
The minimum price ceiling for economic housing projects remains at P450,000 (this price was adjusted in 2013 from the previous P400,000).
According to Republic Act No. 8763 or the Home Guaranty Corporation Act of 2000, price ceilings for socialized and economic housing are jointly determined by the HUDCC and the National Economic Development Authority (Neda) “provided that at any time, but not more often than two years, such ceilings may be reviewed in conformity with prevailing economic conditions.”
