Pag-IBIG plans to venture into housing development 

The Home Development Mutual Fund, commonly known as Pag-IBIG, will soon go beyond financing as it enters into production of homes via partnerships amid a downtrend in the supply of socialized housing, according to a report by Philippine Star.

On the sidelines of the Kapihan with Pag-IBIG yesterday, Pag-IBIG deputy CEO Benjamin Felix said the agency, for the first time, will venture into production to augment the lack of socialized housing.

Doing so would allow Pag-IBIG to hit its target of P156.86 billion in home loans this year, equivalent to 111,648 housing units.

As of end-May, Pag-IBIG has released P49.48 billion, just a little over 30 percent of the full-year goal.

“Almost one-third of our loan take-out is socialized, but right now, no one is producing. That is why we are trying to partner with developer contractors to produce socialized housing to augment supply,” Felix told The STAR.

“We are looking to put up subsidiaries and JVs (joint ventures), not just with shelter agencies but even with private contractors. Before, we are just financing, but now, we will produce,” he said.

As of now, Pag-IBIG has started a memorandum of agreement with the National Housing Authority and the Social Housing Finance Corp.

Pag-IBIG CEO Marilene Acosta, for her part, remains hopeful that the target will be achieved this 2025. Last year, Pag-IBIG fell short by almost 10 percent in its home loans, at P130 billion compared to its goal of P143 billion.

Acosta is banking on the pronouncements of new housing czar Jose Ramon Aliling to deliver an “improved and expanded” Pambansang Pabahay para sa Pilipino (4PH) program, with a renewed focus on horizontal housing developments.

Aliling earlier said the 4PH program will undergo improvements and expansion to include new modalities, particularly horizontal projects such as townhouses and single-detached units.

“Developers have also committed to aggressively continue their socialized housing and other projects,” Acosta told The STAR.

She added that over the past three years, socialized housing has seen a slowdown in production.

Under the Pag-IBIG’s Affordable Housing Program, eligible borrowers have a special subsidized rate of three percent per annum for home loans of up to P850,000 for socialized subdivision projects.

“If we just want to hit the P157 billion, we can actually increase our loan value from P10 to P20 million. But it does not solve the real problem of helping those in need,” Acosta said.

As of now, the maximum loan amount that Pag-IBIG can offer is P6 million. Pag-IBIG remains at the forefront in home financing as it accounts for nearly 40 percent of the total home mortgages in the country.

Currently, Pag-IBIG has 16.58 million active members.