A celebrated American author once said that “A good plan is like a road map: it shows the final destination and usually the best way to get there.”
However, another author, perhaps meaning to be half-serious, quipped that the trouble with road maps is that it does not contain instructions on how to fold it back.
I was reminded of these quotations when I received your invitation to be your speaker this afternoon. Your theme “A Roadmap for Addressing the Country’s Housing Needs-A Public-Private Sector Collaboration,” drew my attention because of its tone of optimism, a self-assurance that unlike the symbolic road map in my earlier quotation, your road map can be folded back and appreciated once the journey is completed.
My friends,
Your theme is an expression of your wholehearted support for your government’s goal of spurring economic development through housing and alleviating the condition of many homeless Filipinos.
I am happy to join the Subdivision and Housing Developers Association, and our other distinguished guests in this gathering, who have stood by us for many years, and will stand by us in the years to come.
I would like to take this opportunity to announce that after a series of meetings and planning sessions, the key shelter agencies – in particular Pag-Ibig Fund, the National Housing Authority and the Social Housing Finance Corporation - have committed to provide 1.5 million homes by 2016. This figure was not plucked out of thin air, but was reached after a careful review of targets, capabilities and resources. It does not include the units that will be built using funds from private banks, non-government organizations, local government units, and private developers like yourselves. We are optimistic that with the help of the private sector and the combined efforts of the key shelter agencies, NGOs, and the local governments, we would be able to close the 3.6 million housing gap within ten years.
As the largest and as the leading organization of housing developers in the country, SHDA has the capacity and strength to be trailblazers in the housing industry, the prime movers of sustainable housing and urban development in the private sector.
Your organization has opened opportunities for unclogging bottlenecks and enhancing partnerships to meet our housing target. Let me cite in particular your initiative to review the various aspects of the regulatory environment and the interrelationships of the key players from the public and private sectors.
For me, this demonstrates your serious desire to improve the housing industry and sustain its growth momentum, a desire that is shared by us in the housing sector.
We recognize the need to standardize the requirements and reduce the approval timelines for land classification and conversion as well as development permits and licenses. Let me assure you that efforts are being made to achieve such standardization, involving not only the housing sector, but other national government agencies, the LGUs, and other stakeholders as well.
HUDCC and the key shelter agencies have been vigorously promoting the creation of an entity at the local level that would give priority to local shelter needs and implement housing programs in each city and municipality.
Having been a mayor for more than two decades, I am fully aware that the development of cities and municipalities is not fueled by national government subsidies such as the internal revenue allotment or IRA, nor should LGUs be dependent on their IRA. Development at the local level requires the participation and support of the private sector.
It is therefore incumbent on local officials to solicit the support and active participation of the private sector in their development programs, especially in the area of housing.
We have also been encouraging the local governments to come up with their comprehensive land use plans not only to ensure efficient and sustainable use of land but to attract investors. The HLURB is here to provide them with technical assistance. The identification of land for housing also unlocks opportunities for housing projects by private investors and developers. And it brings much needed investments and jobs to these localities.
We have also designed programs that encourage tri-partite relationship among the national and local governments and private developers.
The LGU housing loan program of Pag-Ibig Fund is one concrete initiative. With the LGU providing the land and Pag-Ibig Fund extending the financing, private developers can now undertake projects with LGUs for site development and housing construction.
Let me also update you on our initiative to hasten the disposal of acquired assets of shelter agencies amounting to about P200 billion.
I have instructed Pag-Ibig Fund to develop a program with LGUs and real estate developers and companies to liquify these assets so that more funds will be channeled for housing. LGUs and real estate companies could market, possibly at a larger scale, the assets which government disposes through retail sale. We are encouraging the private sector – especially SHDA – to take part in this initiative.
One concern that has been raised by developers is the availment of tax incentives for private companies participating in socialized housing, as guaranteed under section 20 of the Urban Development and Housing Act. Let me assure you that HUDCC is currently evaluating the issue of non-availment and will hold a dialog with the Bureau of Internal Revenue for a uniform application of such incentives.
My friends,
From the beginning, we have always considered private developers as our major partners in housing. As your partner, therefore, allow me to reiterate our appeal for your faithful compliance with the 20% balanced housing requirement under UDHA.
We are now in the process of amending the implementing guidelines of section 18 of this law and I know that HLURB has been conducting dialogues with you in crafting the IRR. Let me emphasize here that the UDHA is not a confiscatory law. Section 18 is not there to make housing development difficult for developers. Instead, it aims to encourage the private sector to contribute to the production of more low cost housing and provide shelter to majority of our countrymen.
We are also looking at further partnerships with the private sector in providing high-rise or medium rise buildings for informal settlers, primarily in metro manila. We will be giving priority for informal settlers living in danger zones who will be relocated in the cities where they live in. I am confident we can count on your participation in this priority undertaking of your government. Before I end, let me again reiterate that housing, being a major contributor to the economy and to job generation, it is our duty to ensure that this industry remains vibrant and dynamic.
We are aware of the issues and challenges on your side of the business. That is why we are here today—to jointly address these concerns. I know that Pag-Ibig Fund has been holding dialogues with you and other associations to address concerns both at the policy and operational levels. We welcome your participation, we understand your concerns, and in the same manner we hope that you understand that we in Pag-Ibig are also mandated to protect the interest of the fund and its members.
This convention calls for a clear and complete road map for public-private sector collaboration. Road maps show us the final destination and the best way to get there. But let us not forget that we are travelling together. And together, we can achieve more.
Our continuing collaboration in addressing the country’s housing needs will definitely create opportunities for more Filipinos to enjoy better lives.
Sa ating pagkakaisa at pagtutulungan, darami ang bilang ng mga kababayan natin na magkakaroon ng sariling bahay, at mabibigyan ng magandang buhay.
Thank you and more power to SHDA.