The Home Development Mutual Fund, or Pag-IBIG Fund, has committed P250 billion (about $4.413 billion at current exchange rates) towards the Marcos government’s goal of building 6 million homes, the top official at the human settlements ministry said Urban Development (DHSUD). .
DHSUD Secretary Jose Rizalino Acuzar said the allotment will be used for the administration’s flagship housing program over the next six years.
In doing so, Acuzar expressed optimism that the program would be successful and that the fund could help meet the program’s goal of tackling the country’s housing deficit of more than 6.5 million units.
“This is a tremendous boost to our President’s ‘Pambansang Pabahay para sa Pilipino’. [PPP] Program; a huge step towards realizing every Filipino family’s dream of decent, safe and affordable housing,” said the DHSUD chief, expressing his gratitude to Pag-IBIG officials.
Meanwhile, Pag-IBIG Fund also signed a Memorandum of Agreement (MOA) with Bacolod City Local Government Unit (LGU) for the construction of 10,000 housing units for informal settler families (ISFs).
The deal marks history as the first MOA signed under the PPP program and “signals the first realization of the government’s plan to meet the housing needs of the country.”
Acuzar said the agreement unlocks the potential of the new housing program, particularly its financial structure and the active involvement of government-owned financial institutions (GFIs) and the private sector.
The MOA engages DHSUD to facilitate the implementation of the housing project in cooperation with the local government unit and other relevant authorities by acting as overall promoter, initiator and coordinator.
Marilene C. Acosta, Managing Director of the Pag-IBIG Fund, has committed to providing any financial and technical assistance that DHSUD and the city government may need to bring the said project to fruition.
“We wholeheartedly welcome the direction [the] DHSUD in rapidly tracking, coordinating and bringing together all affected sectors for immediate implementation of housing projects in the regions,” said Acosta.
Based on the agreement, Bacolod City will begin qualifying for a loan from the Pag-IBIG Fund to finance land development and housing construction.
As the first GFI to allocate funds for the new housing project, the Pag-IBIG fund will make individual housing loans to target beneficiaries who have been pre-qualified and selected by the LGU.