CEBU – The Chamber of Real Estate and Builders’ Associations Inc. (Creba) is calling on the government to overhaul socialized housing compliance rules, streamline licensing procedures, and introduce a housing interest subsidy to tackle the country’s massive housing backlog.
Speaking at a press conference on Wednesday ahead of Creba’s 53rd National Convention, National President Noel Toti Cariño stressed that national housing policy must shift focus from simply building units to ensuring target beneficiaries can actually afford and occupy them.
To address financing barriers, Creba proposed an interest subsidy program administered by the Home Development Mutual Fund (Pag-IBIG Fund) and funded directly by participating developers. Under the proposed mechanism, non-recoverable contributions from developers would lower monthly loan interest payments for eligible buyers.
‘This way, we are addressing the issue of affordability, not just the issue of production of homes,’ Cariño said, pointing out that existing requirements often result in vacant units built in inconvenient or low-demand locations.
The proposal has been submitted to the Department of Human Settlements and Urban Development (DHSUD), Pag-IBIG Fund, and the Executive branch, where it is currently under review.
Categorizing beneficiaries
National Convention Chairman Jose Soberano III emphasized the need to differentiate between buyers who can qualify for loans with financial help and lower-income families who cannot afford to borrow at all.
Soberano noted that while Pag-IBIG subsidies can assist employed and self-employed buyers, lower-income households require direct assistance from agencies like the National Housing Authority through programs such as rent-to-own schemes.
Soberano added that a workable financial model is essential for developers to recover capital and sustain private sector participation.
Creba also raised concerns over regulatory delays, particularly a DHSUD memorandum requiring sales proceeds from temporary Licenses to Sell (LTS) be placed in escrow. Cariño argued that locking up funds constrains capital developers need to push projects forward after already investing heavily in land acquisition and planning.
The association welcomed DHSUD’s decision to restore processing authority to regional offices, noting that recent centralization threatened to delay developments across the Visayas and Mindanao.