As we come to the close of this convention, I am reminded of what French author and pioneering aviator Antoine de Saint-Exupéry said: “A goal without a plan is just a wish.” In a sense we are all authors and aviators here, not to mention pioneering, and I am both honored and confident to be among people who have the vision to fly, but the strategy guided by hard facts and not wishful thinking.

            My colleagues, partners and friends in the housing industry, we have exchanged ideas and made hearts and minds come together in this convention, and we expect these ideas to greatly impact our courses of action in housing in the next few years. And I commend SHDA for its constant support and sustained efforts to help deliver housing to our homeless countrymen.

            This only shows that the government’s plan, as stipulated in the Philippine Development Plan 2011-2016, is not isolated or different from the programs and plans of the private sector. We share the same vision, we want to improve lives, and more and more we are building our strength in numbers to serve the Filipino people.

            The Housing Industry Roadmap that you have presented is invaluable. SHDA’s efforts to chart the industry’s future are greatly appreciated, as the Roadmap shows us the challenges and solutions particularly in the necessary consolidation of our plans and programs.

            As the Roadmap clearly shows,we will be faced with a huge housing need of 12.5 million housing units by 2030.Based on our projection, even by 2016, we already face a hugehousing need estimated at 5.8 million units. Again, the need for our concerted efforts can never be overstated. But we know that simple housing construction is not enough. We have to provide people with their basic needs and opportunities to earn a living. This has always been our advocacy from the start.

            While the challenge appears daunting, I am pleased to recognize the excellent cooperation among ourstakeholders, from the developers to the key shelter agencies.

            For one, the Pag-IBIG Fund has adopted key reforms and innovations to be more member-responsive both in its home financing and provident savings programs, while ensuring its own viability. Just a few months ago, the Fund reduced its interest rate from 6% to 4.5% for members earning minimum wage who are buying house or house and lot worth P400,000 and below.

            As the Filipino worker’s most reliable partner especially in times of need, Pag-IBIG cut by almost half the interest rate of its calamity loans, from 10.75% to 5.95%.As a private sector partner, on the other hand, the Fund worked more closely with property developers by designating Housing Relations Officers (HRO) to the 37 developers based in the metro and 28 more for the branches in the regions.

            The Fund also launched an aggressive information campaign to promote its amended End-User Home Financing Program, Affordable Housing Program, and Acquired Assets Disposal Program to developers and big employers. Thses included Makati Shangri-La, Sharp Phils., Philippine Stock Exchange, MERALCO, and the University of the Philippines campus in Diliman, Quezon City.

            Reaching outto OFWs, the agency intensified cooperation withthe Labor and the Foreign Affairs departments, and the POEA. The Fund also continuedits housing fairs for OFWs, the most recent being for those based in London, Kuala Lumpur, and Kota Kinabalu.

            For its part, the HLURB’s reform initiatives sought to create an investment-friendly business climate in housing while bringing its services closer to the people. Let me cite threesignificant initiatives: first, the CLUP Zero Backlog Program by 2013 which helps both LGUs and private developers like you in determining which areas are most suitable for housing; second, the setting up of Liaison Desk Offices in various regions that do not have HLURB Field Offices; and third, the continuing dialogue with stakeholders with consultations on major policies and rules.

            Another initiative addressed toinvestors and developers is the NHMFC’s BahayBonds2. In August, the NHMFC listed P300 million worth of five-year Bahay Bonds Series 2 in the Philippine Dealing and Exchange Corp. (PDEX).  The BahayBonds2 is the first ever retail Residential Mortgage Backed Security (RMBS), and is designed to be safe, high yielding, and an affordable investment instrument for the general public.

            But what makes it more significant is that it is the properties that NHMFC purchased from you, the private developers, that are used as collateral for these bonds.  Through this and other future bond issuances, we will be able to provide you a continuing funding source that will liquefy your assets and hopefully encourage you to build more houses for our people.

            In the Roadmap, the SHDA cited strategies to help achieve increased housing production. These includeintegratingproduction with the policy and regulatory environment, finance and affordability of housing units, as well as sustainability of communities. All these are meant to ensure that we can sustain 12% production volume each year from 2012 until 2030.  I fully support these strategies. 

            In addition to our existing approaches to the shelter need, our sector is now also advocating other forms of housing such as Medium Rise Buildings (MRBs) and public rental housing. MRBs not only require a smaller area of expensive urban land, but offerattractive proximity to jobs.  At the same time, public rental housing innovates on housing supply by serving other markets and beneficiaries such as students or businessmen who are not addressed by the conventional housing programs.

            While housing production is a key component, affordability of the housing units and borrowers’ capacity to pay are as critical. HUDCC and NEDA are now jointly reviewing socialized price ceilings versus affordability for possible adjustment. We are also seeking development partners’ support and that of the World Bank to take a closer look at the existing government housing subsidy, including your proposed one-time housing production subsidy per household, and ensure that these subsidies truly go to the targeted beneficiaries.

            One proposed strategyin your Roadmap is the inclusion of the Income Tax Holiday (ITH)for developers. I fully support this proposed subsidy.ITH for socialized, economic, and low-cost housing will definitely help preserve margins and avoid the passing on by developers of the increased cost to buyers or beneficiaries. This is why I have pushed for the inclusion of mass housing in the Investment Priorities Plan and will continue to do so every year.

            But affordability through subsidy can only be achieved with more funds. The Roadmap recognizes that Private capital is often left out of the housing program, and government takes the sole burden and risk of shouldering the housing program.  Our response is that it has always been our position that the national government alone cannot take on the huge housing problem.

            Truly we need to generate and mobilize more funds to finance socialized housing. The workshop suggests the encouragement of more private banks and non-traditional financing programs to participate in home-lending. While most rural banks are now involved,the participation of more commercial banks is expected to improve affordability.

            Again we emphasize that beyond affordability is the need for sustainable communities, which call for decent and livable shelters. SHDA fits the role perfectly to partner with government and LGUs in estate management as well as in the improvement of housing standards. Since the responsibility public property improvement—including housing—lies with LGUs, we advocate the establishment of local housing boards that will oversee these services.

            Certainly we are one with the industry in pursuing these reforms in the housing regulatory environment, particularly to streamline systems and hasten licensing and permit processes. Thus we are pushing, as all of you know, for the passage of the bill creating the Department of Housing and Urban Development (DHUD).

            We do not need to elaborate on the paramount need for a primary government agency to rationalize and integrate everything that has to do with housing. You know the various fields of human activity involved in this huge national task. Let me just report thatthe DHUD Bill has already been passed on third reading by the Senate and is for second reading in the House of Representatives. Your support for this bill we cannot emphasize enough.

            But we cannot also thank you more for the concrete proposals now forthcoming from this convention. As HUDCC Chair, I accept the Resolutions that you have presented today.  I will ensure that they get to the concerned agencies to be properly discussed, and for the agreements to be reached, so that we can truly and fully work together toward our one and only goal—a better life for all.

            You have drawn the Roadmap. We agree with the general route and destination. Let us all soar high together and let us get there quickly.

            Thank you and more power to SHDA.