Private sector’s crucial role in boosting the 4PH Program: A new proposal from OSHDP
The Organization of Socialized and Economic Housing Developers of the Philippines Inc. (OSHDP) has unveiled various strategic programs to help meet the housing backlog.
The Organization of Socialized and Economic Housing Developers of the Philippines Inc. (OSHDP) has unveiled various strategic programs to help meet the housing backlog.
The Organization of Socialized and Economic Housing Developers of the Philippines Inc. (OSHDP) has unveiled a strategic proposal aimed at revitalizing the Marcos administration’s Pambansang Pabahay Para sa Pilipino (4PH) Program.
As the government grapples with the monumental challenge of producing three million housing units by 2028, OSHDP’s proposal seeks to foster greater private sector participation through a series of targeted incentives and reforms.
Addressing the housing crisis
The Philippines faces a critical housing shortage, with the backlog estimated at 6.5 million units as of 2022.
Despite the good intentions of the 4PH program, private developers have expressed hesitancy in participating, citing restrictive guidelines and insufficient incentives as major barriers. OSHDP’s proposal offers a viable solution to these issues, ensuring that the private sector can contribute effectively to the national housing agenda.
Article continues after this advertisementKey proposals
Alternative compliance options. OSHDP advocates for developers to meet their balanced housing development requirements through actual production rather than depositing funds into escrow accounts. This shift aims to directly increase the production of socialized housing units.
Article continues after this advertisementIncentivized compliance. The proposal suggests a five-fold increase in compliance credits for developers who contribute to the 4PH Program. These credits can be used for current and future projects, making participation more attractive.
Simplified permitting processes. The proposal emphasizes the need for streamlined permitting and licensing, reducing bureaucratic delays that have long plagued housing projects.
Expanded housing options. To cater to diverse needs, OSHDP recommends the inclusion of horizontal developments (house-and-lot units) in non-urbanized areas, addressing the cultural preference of many Filipinos for owning a house with land.
Capital subsidies and financial support. The proposal includes provisions for Pag-IBIG Fund loans and Department of Human Settlements and Urban Development (DHSUD) capital subsidies, easing the financial burden on developers and encouraging more robust participation.
Impact and implementation
If adopted, OSHDP’s proposal could significantly bolster the 4PH Program by making it more accessible and financially viable for private developers. By addressing the key challenges of restrictive guidelines, insufficient incentives, and complex permitting processes, the proposal has the potential to unlock the resources and expertise of the private sector, driving the country closer to its housing goals.
Highlight of the Affordable Housing Summit 2024
This groundbreaking proposal will be presented and highlighted at the Affordable Housing Summit 2024 at Solaire Resort North.
The summit, themed “Breaking Barriers: Revolutionizing the Philippine Housing Industry,” will serve as a crucial platform for discussing these recommendations with key stakeholders from both the public and private sectors. The event aims to build consensus and momentum toward implementing these strategic changes.
A call to action
The success of the 4PH Program is pivotal for the future of millions of Filipinos in need of affordable housing.
OSHDP’s proposal represents a collaborative effort between the public and private sectors to meet this urgent need. As the government considers these recommendations, it is crucial to recognize that the private sector holds the key to scaling up housing production and making the dream of homeownership a reality for every Filipino.
