DHSUD commends PBBM for sovereign guarantee boosting shelter program

The Department of Human Settlements and Urban Development (DHSUD) has expressed its gratitude to President Ferdinand R. Marcos Jr. for approving a sovereign guarantee that will significantly bolster the Pambansang Pabahay para sa Pilipino Housing (4PH) program. This endorsement, announced during a press briefing at Malacañang on Wednesday, is hailed as a pivotal development in the battle against homelessness in the Philippines.

DHSUD Secretary Jose Rizalino Acuzar described the President’s approval as a transformative step for the country’s housing sector. He emphasized that this guarantee will play a crucial role in addressing the housing crisis.

"We at DHSUD, along with our key shelter agencies, are deeply thankful to President Marcos and our economic managers for their unwavering support. This guarantee is expected to drive significant progress in our efforts to tackle homelessness," Acuzar stated.

The sovereign guarantee will facilitate government financing institutions (GFIs) in providing developmental loans to the National Housing Authority (NHA) and the Social Housing Finance Corporation (SHFC). These loans will fund the construction of 4PH projects, with the government ensuring a streamlined loan evaluation and housing production process.

Secretary Acuzar highlighted that there are currently 53 ongoing 4PH projects, primarily funded by the private sector. This demonstrates a robust collaboration between the government and private entities in advancing socialized housing initiatives.

The sovereign guarantee is anticipated to enhance confidence among private partners, accelerating the development and implementation of the 4PH program nationwide.

Under the End-User Financing Program, the Home Development Mutual Fund (HDMF), also known as Pag-IBIG Fund, will handle individual housing loans for beneficiaries. Pag-IBIG will release the loan amounts directly to GFIs that have provided developmental loans. Once the loans are repaid, the sovereign guarantee will be nullified.

Despite a 9.11 percent cancellation rate of socialized housing loans, Pag-IBIG Fund anticipates that rising property values will offset holding costs, potentially yielding profits from property resale.

The DHSUD reported that there are currently up to 1.2 million housing projects in the pipeline, with a target of 3.2 million housing units to be completed by 2028.

The department’s ongoing efforts and the newly approved sovereign guarantee are set to significantly advance the 4PH program, aiming to provide affordable and decent housing to more Filipinos across the nation.