Thank you for organizing this gathering tonight.  I understand that almost all the major players of the industry are here.  I am truly honored, and it is such a fitting event—a night of appreciation—for our undoubtedly fruitful partnership in the housing industry.

            You said that this is your way of showing your appreciation to us.  I say this is an opportunity for me to sincerely express my appreciation for your involvement in moving the housing agenda forward, and for responding to the government’s call for cooperation and partnership.

            Which makes our presence here tonight not only for the purpose of fellowship, but to make this happy occasion even more productive by discussing the needed policies and reforms in our sector.

            The economy grew by only 3.7 percent, lower than the previous year’s growth.  But your industry played an important role in this growth. If not for the strong contribution of the housing and construction industry, the economy would have had difficulty in reducing unemployment and poverty.  Housing construction helped create jobs or employment and contributed significantly to the economy. The strong demand, particularly our overseas workers, and the positive response of the private developers, are largely the reason for the continued positive performance of the housing industry.

            This strong performance of the housing sector has gained the attention of our fiscal managers. And this is one of the reasons why we are here today. BIR has approved the upward adjustment of the price ceilings on real estate transactions that are exempted from the 12 percent value added tax. This is from P2.5 million for house and lot purchase to P3.19 million and from P1.5 million for lot-only purchase to a maximum of P1.9 million.  With the increase in the cap, we expect to generate more housing acquisitions as houses would be made more affordable without the payment of the VAT.

            But the increase in the cap of real estate transactions exempted from VAT is just one manifestation—and result—of our partnership.

            There are other areas where this partnership should be at work.

            It is heartening to know that the suppliers of housing materials, through the Federation of Philippine Industries, and our developers’ associations, have agreed to have a round table discussion with HUDCC every six months. And the object being, to come up with strategies on how to drive the construction costs down, and make housing more affordable and sustainable.

            I also encourage you to make use of the Accredited Innovative Technologies for Housing (AITECH), a body which is under the HUDCC and the NHA’s leadership.  It promotes housing technologies and design by Filipino proponents that help reduce construction costs.

            Again, to further reduce the construction costs for socialized housing, I urge your groups to help us draft the implementing rules and regulations on the exemption from VAT of the purchase of construction materials. This is provided under the Urban Development and Housing Act, but has not been implemented due to the lack of guidelines.  Let us, by all means, draft these guidelines together and ask the bir to adopt them.

            The advocacies of your group can provide our partnership that comon direction towards eliminating homelessness. On day one of my term as HUDCC Chairman, I have engaged you to be the watchdog of our policies in the housing effort.  Today, I ask you to continue to be the sounding board of policy and program reforms that we are doing in government.

            We need to know what initiatives or interventions are needed by the private sector, to accelerate its housing production, and contribute in the effort of solving the housing backlog.  We need your views on appropriate loan ceilings and lending rates that should be instituted for you to expand your market.

            We want to hear your ideas on how to implement successfully regional one-stop shops—for the processing, approval and issuance of clearances, permits and licenses for housing projects. What housing regulations should be rationalized to make you viable developers or contractors in the government’s housing programs.

            This should include the medium-rise construction for informal settlers in Metro Manila, the AFP-PNP and Government Employees Program of the national and local government units.

            Within this month, we need to start discussions on the price ceiling of housing units that will be eligible under the BOI Investment Priorities Plan (IPP). Since the cap on the sale of real estate has been increased to P3.1 million, we should now move to secure from the BOI a similar ceiling for investors availing of tax incentives under the IPPof the BOI.

            Similarly, we need to review, simplify and standardize the requirements of the BIR and the BOI to encourage the expansion of investments in housing. Likewise,a review and simplification of the procedures of the Land Registration Authority on the annotation and registration of mortgages is imperative.

            We also seek your assistance in monitoring the compliance of housing developers to the balanced housing requirements of UDHA and ensure that these housing units are given to intended beneficiaries.

            My friends, we need to be more ambitious in broadening the benefits of housing. But as we all know, the road to the common good is not always easy. Despite well-intentioned attempts in the past, the housing backlog remains unfilled. But this should only motivate us to try harder.

            As we pursue the better life for more Filipinos, let us be mindful of more recent obstacles that nature has put in our way:

            Typhoon “Sendong” in Cagayan de Oro and Iligan, and now, the earthquake in Dumaguete and other parts of the Visayas.

            I ask you to contribute whatever resources you have to help our affected fellow citizens.  The magnitude of the housing need is huge, but natural calamities can only challenge us to double our efforts.

            In CDO and Iligan, we need to build about 14,000 houses. There are designated areas which will serve as relocation sites for the affected families and we urge you to help us develop these areas into sustainable communities. You can put up your compliance projects under the 20% balanced housing requirement in UDHA or you can provide the labor and construction materials, which are reportedly scarce in the area. At the same time, you can put up community facilities in these areas.

            Friends and fellow believers in Filipino progress, there is really so much that we could learn from each other.  It is time that we, in the housing sector, initiate bold and far-reaching reforms for sustainability, and to make the housing programs more relevant most especially to the homeless poor.

            Together, we can only be stronger. Together, we can create enduring solutions to the housing need, while you make your industry, and your business, more viable, sustainable, and responsive to realities.

            Again, thank you all for your continous support. Let us all have a pleasant evening.

            Maraming salamat po.