Vice President Jejomar C. Binay today said there will no longer be any favored developers in the government housing program, as he unveiled system-wide reforms in the Home Development Mutual (Pag-IBIG) Fund to encourage developers to build more socialized housing units.

                  “We intend to make it worth your while to partner with us,” Binay said in a speech before members of the Subdivision and Housing Developers Association (SHDA).

                  Binay heads the Housing and Urban Development Coordinating Council and chairs the Board of Trustees of Pag-IBIG Fund.

                  He revealed that the government’s housing agenda include policy reforms in funding, processing time of loans and titling of lands. He added that he is also pushing for the passage of the National Land Use Act (NALUA), and for a close partnership between local government units and private developers.

                  “If we must make Pag-IBIG responsive to the growing interests of stakeholders like you, if we must make you true partners in development, we must put in courageous interventions in unprecedented proportions,” Binay said.

                  Binay assured that he will solve the “seeming” disparity in the allocation of loanable Pag-IBIG funds. He said Pag-IBIG is coming up with a new policy that would include in the ceiling computation for a single borrower limit (SBL) all the loans of developers, whether they are institutional or end-buyers financing.

                  In the current SBL policy, developers may borrow up to P3 billion for an institutional loan. They may also avail an end-buyer’s loan that has no SBL.

                  Binay said this policy allowed the Globe Asiatique to borrow around P8 billion from Pag-IBIG – P5 billion end-buyer’s loan on top of the P3 billion institutional loan.

                  The developer, who has accumulated over P1.1 billion in buyback accounts, was also supposed to receive another P6 billion for a project in Zambales, but this was stopped after the agency uncovered the existence of ghost borrowers in the developer's Pampanga projects.

                  Binay added that he is planning to deploy the loanable funds co-equitably per region based on the demand for housing loans and the performance of developers.

                  “Walang palakasan, walang sinuman na bibigyan ng pabor para sa mga housing loans,” he vowed.

                  The HUDCC chair also informed SHDA that Pag-IBIG is improving its system to lessen the processing time of securing take-outs.

                  He mentioned that Pag-IBIG is revisiting Executive Order 45 which provides a one-stop shop facility in the processing of housing permits and clearances. He also said he is drafting a proposed executive order that will reinforce the authority of LGUs in converting or reclassifying lands for residential use.

                  While they aim to provide expedient service, Binay said Pag-IBIG is making sure that enough controls and safeguards are in place to avoid any fraudulent use of mortgage instruments.

                  “The incident that happened in Pampanga makes us more cautious in the processing of take-outs. Pera ng mga miyembro ito at dapat lamang magkaroon ng pag-iingat,” Binay said.

                  Binay further said GA seemed to have been “favored” over other developers. News reports quoted GA admitting it cornered a sizeable amount of the loanable housing funds for its projects in Bacolor and Mabalacat, Pampanga.

                  The said developer was also able to secure housing funds in just three to seven days while others had to wait for their take out for almost four to six months.

                  Meanwhile, Binay said that HUDCC is conducting meetings with the Land Registration Authority to hasten the unitization of titles, and to prioritize the handling of individual titling and supply of security paper for housing projects. He added that they also proposed to reduce the fees being imposed for titling for socialized and low cost housing units.

                  HUDCC is also pushing for the passage of the NALUA to protect land from misuse and degradation. Binay said this Act would rationalize the utilization of land for agricultural production and food security, for industrial and commercial development and job creation, and for settlements development and affordable housing.

                  The Vice President also said HUDCC will make a comprehensive review of housing finance to make more funds available for housing projects. Binay said he recently increased the target of housing loans from 75,000 housing units to 150,000 units, and will set aside P30 billion in new loanable funds for buyers and developers.

                  “We must deliver more houses to fill the gap between housing stock and housing need, which is about 350,000 annually,” he said.

                  To encourage the building of more socialized housing units, Binay revealed that HUDCC is eliminating as alternative compliance the placement of funds into Pag-IBIG bonds instead of building 20% socialized housing units, and the contribution of P5,000 to the National Housing Authority socialized housing trust fund as credits for the balanced housing requirement.

                  He also mentioned that he is pushing for partnership between LGUs and housing developers. He said the partnership should result in a reduced development costs, making houses more affordable because of the contribution or donation of the sponsoring LGUs.

                  Binay also pledged that HUDCC will continue to explore ways to get tax and fiscal incentives for developers. He said they are negotiating with the Bureau of Internal Revenue to effectively extend to developers the VAT exemptions on the purchase of construction materials.

                  “The private sector and government must work together or it is the people that will lose. Thus, there is only one way to make our partnership work. We must make it win—for everyone.” Binay concluded.