Housing industry leaders are apprehensive that the proposed legislation to amend the socialized housing provisions of the Urban Development and Housing Act (UDHA) is in serious conflict with the massive social housing program – 4PH – already set in place by the administration of President Ferdinand R. Marcos, Jr.
The Lower House recently approved House Bill No. 10772 which, among others, changes the conditions for compliance with the balanced housing requirement, or social housing quota, imposed on private developers.
Under the 30-years old UDHA, a developer proposing to produce a residential subdivision or condominium is required to develop a socialized housing project equivalent to 15% of the total project cost or area of the subdivision, or 5% in the case of a condominium.
In a statement, Noel “Toti” M. Cariño, president of the Chamber of Real Estate and
Builders’ Associations (CREBA), said: “The entire housing industry commends the wisdom and resoluteness of President Marcos Jr. and the DHSUD in coming up with the “game-changing” 4PH program which now, finally, embodies the fundamental precept that housing the poor is a government’s responsibility and not the private sector’s.”
In its recent press briefings, CREBA said that the DHSUD has indicated that private developer participation in socialized housing is no longer necessary, and will be dispensed with altogether, as the government is already all set to assume the role of developer. The DHSUD expressed confidence that 4PH will be able to produce more than 3 million affordable housing units in the next 3 years. The President undoubtedly agrees.”
However, the CREBA observed that despite this and all evidence to the contrary, HB 10772 appears still grounded on the premise that coercing private developers would resolve the problem of housing the underprivileged.
“The quota under the UDHA is by itself already onerous, even as it has been proven ineffective; still, the bill prescribes new conditionalities that would be impossible for developers to meet, and severe sanctions for non-compliance,” the statement further read.
“For instance, under the UDHA, developers have a choice of where to locate the socialized housing component under quota – or what we call “compliance project”.
Now, under HB 10772, the compliance project must be within the main project itself, or in the same locality as the main project.”
“This is practically an impossibility when the main project is in Metro Manila or urbanized areas or peripheries, where cheap land is not available. How can private developers build socialized housing on high-value lands, and still comply with the required building specifications and mandated price ceilings?”
“The bill also provides that instead of actually producing social housing units,
developers may instead pay 25% of the required compliance cost to the LGU where the main project is situated.”
“This is meant to facilitate compliance with the quota. In fact, however, the whole amount represents a total loss for the developer, as it constitutes a donation or a straight handout to the LGU.”
“It would involve millions of pesos per compliance, considering that the main project cost could run into billions. The concerned LGU would be receiving a double windfall.”
“We would like to believe that it is not our legislators’ intention to coerce developers into making the bitter choice of either paying up to the LGU, or – on pain of severe
penalties – building where they cannot otherwise build, for intended beneficiaries who simply cannot afford.”
“Congress should also consider that the new conditionalities are inherently biased against the poorer localities. All the economic gains would be cornered by the already more developed LGUs where residential projects are mostly concentrated.”
“It would negate the long-standing government policy of balanced dispersal of socio-economic activity to promote progress in the underdeveloped regions of the country.”
“Perhaps Congress should rethink the entire bill, and instead focus on instituting well-conceived specific measures based on the 4PH implementation paradigm already approved by the President, to ensure the program’s continuity way beyond the current administration’s term,” Cariño concluded.
These issues are expected to be among the major discussion points at the upcoming national convention of CREBA slated from October 16-18 this year at Hilton Hotel in Clark Freeport Zone, Pampanga where lawmakers, key shelter agency heads, government officials and industry experts will converge in celebration of the country’s national shelter month.
