June 18, 2024

The Insider News

Direct from the source

Collective effort required to address housing backlogs- Marcos Jr.

President Ferdinand R. Marcos rallied government financial institutions and private banks to establish a system that would enable his administration to address the estimated 6.5 million housing backlog by the end of his term in 2028.

Marcos made this call in his meeting with Department of Human Settlements and Urban Development (DHSUD) Secretary Jose Acuzar, Bangko Sentral ng Pilipinas (BSP) Governor Felipe Medalla, and heads of the Bureau of Treasury, Pag-IBIG, Government Service Insurance System (GSIS), Philippine National Bank (PNB) and Land Bank of the Philippines on Wednesday.

In his remarks, the chief executive noted the indispensable support of the private banking sector in his administration.

“I think we can, there should be sufficient incentives… [an] arrangement for the private banks to come in,” said Marcos.

Acuzar, for his part, said his department looks at building 1 million houses a year or a total of 6 million houses by the end of his term.

The DHSUD chief expressed optimism that this can be done by building in-city, mix-use residential hubs to cater to minimum-wage earners and middle-class families.

Acuzar said his program would need PHP36 billion a year for the next six years in cooperation with private lending institutions.

In order to pull off the extensive program, the chief executive said a system should be put in place to find the country’s cash flow that will support the endeavor and, at the same time, incentivize private entities that will take part in the building and financing aspects.

The housing program is not only seen to address the housing backlog, said Acuzar, but also vital in tapping the big economic pump-priming potential of the housing industry.

Acuzar said the department has already identified potential areas for the development of settlements and townships.

Representatives from BDO, Metrobank, Union Bank, Ayala Corporation, and China Bank expressed their support for the President’s housing program, saying they will help in the crafting of the financing system to carry it out.