Pag-IBIG Fund allocates P50 B for housing projects in 2011

Pag-IBIG Fund allocates P50 B for housing projects in 2011

AVAO CITY, May 20 (PNA) — The Home Development Mutual Fund (HDMF) popularly known as Pag-IBIG Fund, has allocated P50 billion for housing projects this year.

Pag-IBIG Fund chief executive officer lawyer Darlene Marie B. Berberabe told local chief executives of Regions XI and XII during the 4th Pabahay Caravan Thursday at The Marco Polo, Davao here, that part of the loan facility is a new project that they will embark on with the local government units (LGUs).

Berberabe said they want the resources be brought to the LGUs for them to be able to provide affordable housing to their constituents. However, she stressed that the money of Pag-IBIG Fund is private in nature considering that this consists of the members’ contributions even as she said that it is not taken from the coffers of the government.

She said they are ready to partner with the LGUs and the Fund will provide also loan assistance to borrowers who are members of Pag-IBIG Fund and willing to pay the loans.

HDMF Circular 254 states that under RA 7279 of the Urban Development Housing Act the LGUs were directed to identify lands for socialized housing and resettlement areas in their jurisdiction. This provision is in conjunction with Section 17 of RA 7160, otherwise known as the Local Government Code of 1991, where local government units were mandated to provide for basic services and facilities to their constituencies like low-cost housing and other mass dwellings.

The development housing loan program for LGUs of the Fund is geared towards sustaining the capabilities to fast-track the development and implementation of housing projects in their respective localities, and to make housing accessible and affordable for its employees and constituents. The program also aims to enable LGUs to undertake housing development and construction as well as engage the participation and involvement of LGUs in housing provision ensure security of tenure for housing among LGU employees and constituents who are also Fund members.

She said the program also aims to make home ownership within reach of the greatest number of families in urban and rural areas. LGU is given fund release for horizontal housing construction/development, 40 percent of prudent production cost or P20 per phase and for vertical housing construction / development, 60 percent of prudent production cost or P40,000,000.

The value of each residential unit that would be constructed under the LGU’s housing project, whether said unit is for sale or lease, shall have a selling price (in case of sale) or appraised value (in case of rent/lease) of up to P500,000.00.

Berberabe said they get positive feedback during the Pabahay Caravan roadshows and in fact partnership projects with other local government units had already been forged.

Meanwhile, Housing and Urban Development Coordinating Council (HUDCC) Chair Vice President Jejomar Binay together with Berberabe led the awarding of checks to four housing projects in Southern Mindanao with P13.7 million development loan to F.C. Lapiz Real Estate Lessor in Purok 4-B, Poblacion Montevista, Compostela Valley Province; P5 million (sixth release for its total loan amount of P30 million) to Agan Land Corporation for home construction financing line in Barangay City Height, General Santos City; P5 million (initial release) for home construction financing line to Gensan VSM Realty Corporation, VSM Heights-Phase 1, Barangay San Isidro, General Santos City; and P2 million (third release for total approved loan of P11.5 million) for institutional loan program under Group Land Acquisition and Development (GLAD) of Venus Association Mindasap Chapter, Inc. in Barangay Sadaan, Midsayap Cotabato. (PNA)

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