The Home Development Mutual Fund (HDMF), more popularly known as Pag-IBIG Fund, has released P18 billion in housing loans as of April, 2011, according to Pag-IBIG Fund chief executive officer lawyer Darlene Marie B. Berberabe during the 4th Pabahay Caravan Thursday at The Marco Polo, Davao.
Berberabe told heads of local government units (LGUs) in Region 11 and 12, the released loans are part of the P50 billion Pag-IBIG has allotted for housing projects in 2011.
She said that used up or not, the fund for housing loans will be allotted an additional P50 billion or even more in 2012.
The Pag-IBIG chief however admitted that the bulk of the loans went to Luzon and the Visayas and only a small amount was released to Mindanao applicants.
She said that the disparity is not deliberate and that Mindanao loans could exceed that of the other parts of the country depending upon the merit of the applications submitted by the members.
During the caravan which was later addressed by Vice President Jejomar Binay, Berberabe said that the local government units will play a big role in the housing program, adding that Pag-IBIG wants its financial resources brought to the LGUs for them to be able to provide affordable housing to their constituents.
She however reminded provincial governors and mayors in attendance that the money of Pag-IBIG Fund is private in nature it is the members’ contributions and not a single centavo comes from of the government.
She said Pag-IBIG is ready to partner with the LGUs and the Fund will provide also loan assistance to borrowers who are members of Pag-IBIG Fund willing to pay the loans.
HDMF Circular 254 states that under RA 7279 of the Urban Development Housing Act the LGUs were directed to identify lands for socialized housing and resettlement areas in their jurisdiction. This provision is in conjunction with Section 17 of RA 7160, otherwise known as the Local Government Code of 1991, where local government units were mandated to provide for basic services and facilities to their constituencies like low-cost housing and other mass dwellings.
The development housing loan program for LGUs of the Fund is geared towards sustaining the capabilities to fast-track the development and implementation of housing projects in their respective localities, and to make housing accessible and affordable for its employees and constituents. The program also aims to enable LGUs to undertake housing development and construction as well as engage the participation and involvement of LGUs in housing provision ensure security of tenure for housing among LGU employees and constituents who are also Fund members.
She said the program also aims to make home ownership within reach of the greatest number of families in urban and rural areas. LGU is given fund release for horizontal housing construction/development, 40 percent of prudent production cost or P20 per phase and for vertical housing construction / development, 60 percent of prudent production cost or P40,000,000. (With a report from Prix D. Banzon)
The value of each residential unit that would be constructed under the LGU’s housing project, whether said unit is for sale or lease, shall have a selling price (in case of sale) or appraised value (in case of rent/lease) of up to P500,000.
Berberabe said they get positive feedback during the Pabahay Caravan roadshows and in fact partnership projects with other local government units had already been forged.
Meanwhile, Housing and Urban Development Coordinating Council (HUDCC) Chair Vice President Jejomar Binay together with Berberabe led the awarding of checks to four housing projects in Southern Mindanao with P13.7 million development loan to F.C. Lapiz Real Estate Lessor in Purok 4-B, Poblacion Montevista, Compostela Valley Province; P5 million (sixth release for its total loan amount of P30 million) to Agan Land Corporation for home construction financing line in Barangay City Height, General Santos City; P5 million (initial release) for home construction financing line to Gensan VSM Realty Corporation, VSM Heights-Phase 1, Barangay San Isidro, General Santos City; and P2 million (third release for total approved loan of P11.5 million) for institutional loan program under Group Land Acquisition and Development (GLAD) of Venus Association Midsayap Chapter, Inc. in Barangay Sadaan, Midsayap Cotabato.
