The Housing and Urban Development Coordinating Council (HUDCC) approved Resolution No. 2 Series of 2015 on June 8, 2015, which adjusted the Economic Housing Loan Ceiling from P1.25M to P1.7M, representing an increase of 36%.  The said increase is subject to existing financing guidelines of the Key Shelter Agencies (KSAs) and other financial institutions involved in housing development.

            The adjustment is anchored on the Constitutional mandate for the State, in cooperation with the private sector, to undertake a continuing program of urban land reform and housing which will make available at affordable cost, decent housing and basic services to under-privileged and homeless citizens in urban centers and resettlement areas.

            It is also in line with Republic Act No. 8763 or the Home Guaranty Act of 2000 which states that HUDCC and the National Economic and Development Authority (NEDA) shall jointly review and determine housing price ceilings to ensure that they reflect changing economic conditions.

The adjustment was made after HUDCC, together with NEDA, reviewed and evaluated the Consumer Price Index (CPI), Construction Materials Wholesale Price Index (CMWPI), increase in labor wages, affordability of the target market and the proposal of the private sector, headed by the Subdivision and Housing Developers Association, Inc. (SHDA). The previous increase in the Economic Housing Loan Ceiling was made way back in 2006 from P500,000 to P1,250,000.

            With said increase, HUDCC expects private housing developers to construct more economic housing projects and help address the housing need, without sacrificing the quality and location of the units.

            By addressing this urgent issue in the real estate industry, HUDCC proved that the Government and the private sector are able to see eye to eye towards their common goal which is primarily to provide affordable and quality housing for all Filipinos.