The subdivision and Housing Developers Association Inc. (SHDA), the country’s biggest grouping of real estate developers, said direct government subsidies might help address the rising backlog in mass housing.
“We have so many informal settlers in the city and there is a big segment that actually cannot afford housing. That is the problem. A subsidy would work if the government could come up with a clear program,” said SHDA president Paul Tanchi.
“There is the conditional cash transfer (program), why can’t we have a similar thing for housing for the segment that can’t afford it? It can be a direct subsidy,” he said.
According to Tanchi, the association is open to a housing subsidy that will go directly to the end-users, rather channeling the funds through the developers, who are now able to avail themselves of various incentives for their socialized housing projects.
“If you look at the budget that the government is giving to housing, it’s barely 1 percent of the total. Housing is a real need and we should embark on a massive housing solution to cater to that segment who can’t afford housing,” he said.
“The government should look at it as a social debt,” he added.
In the meantime, the group is appealing to the Board of Investments to retain the incentives granted to developers of socialized housing projects under the 2014 Investment Priorities Plan until a new clear-cut program is implemented and until the problem on housing backlog is finally addressed.
Based on SHDA estimates, the current national housing backlog stood at more than 3.9 million units. The number is projected to rise to 6.5 million by 2030 if the problem is not addressed.
Tanchi said the group was also seeking a revision on a requirement imposed on housing developers which called for the allocation of 20 percent of the project land area or project cost for socialized housing. Amy R. Remo