Housing developers push incentives, reforms to boost 4PH program

A group of housing developers is urging the government to provide incentives to the private sector and address critical issues to ensure the success of the Marcos administration's Pambansang Pabahay Para sa Pilipino (4PH) program.

The Organization of Socialized and Economic Housing Developments of the Philippines Inc. (OSHDP) said its proposals, if adopted, 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,” the OSHDP said in a presentation at the Affordable Housing Summit 2024 held at Solaire Resort North in Quezon City.

The summit, themed "Breaking Barriers: Revolutionizing the Philippine Housing Industry," served as a platform for discussing OSHDP’s recommendations.

OSHDP noted that as the government grapples with the monumental challenge of producing three million housing units by 2028, its proposal seeks to foster greater private sector participation through a series of targeted incentives and reforms.

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 hesitance in participating, citing restrictive guidelines and insufficient incentives as major barriers.

OSHDP’s proposal offers viable solutions to these issues, ensuring that the private sector can contribute effectively to the national housing agenda. These include:

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.

Incentivized compliance: The proposal suggests a fivefold 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 to ease the financial burden on developers and encourage robust participation.