In-city resettlement good, but gov’t budget for housing must be raised – Bayan

FILE PHOTO: Bayan secretary general Renato Reyes. INQUIRER FILES

MANILA, Philippines — While the government’s program of trying on-site or in-city resettlement for informal settlers is a good initiative, funding for its housing projects must be increased.

Bagong Alyansang Makabayan (Bayan) secretary general Renato Reyes said in a statement Thursday that higher funds for the housing projects would stimulate the economy, as it creates jobs and lessens transportation costs of workers if the relocation site is within the city or near the site.

“The national government should provide massive funding for mass housing projects to meet the growing 6.5 million housing backlog and stimulate the local economy. There can be billions of pesos allotted for mass housing which can create employment and stimulate domestic production,” he said.

“The P3.9 billion budget of the housing development is not enough and should be seriously increased to meet the housing needs of the people,” he added.

Under the 2023 General Appropriations Act – the first budget of President Ferdinand Marcos Jr.’s administration – P3.9 billion was allocated to the Department of Human Settlements and Urban Development (DHSUD) and its attached agencies.

According to Reyes, the move to push for on-site and in-city resettlement is good, and would be a big boost to informal settlers and the workforce, as there are studies showing that every P1 billion spent on housing projects creates 1,558 jobs, aside from helping the construction industry.

“The Department of Human Settlements and Urban Development’s stand of providing on-site/in-city mass housing is a first, and will likely get the support of residents as it will avoid massive displacement and loss of livelihood opportunities due to relocation of residents.  On-site and in-city development can work if at the end of the day, the mass housing units are made truly affordable by government. This can be done if housing subsidies are made available to the people,” he said.

“At this time, government spending should be geared towards expense items that have a high social benefit and economic multipliers. There have been studies that for every P1 billion spent on mass housing, this can create up to 1,558 jobs, both directly and indirectly. Housing construction multiplier is one of the highest among major industrial sectors,” he added.

But the government should also ensure that the cost of housing units would be made affordable to minimum wage earners, Reyes noted.

“The monthly amortization for the housing units should be within reach of minimum wage earners. Loan interests should also be subsidized by government to make the units even more affordable. Funding mass housing is a worthwhile endeavor that will help the poor and the economy as a whole,” he said.

To date, a bill pushing for the prioritization of on-site and in-city relocation has been approved by the House of Representatives on third and final reading.

READ: House OKs bill making on-site relocation of informal settlers a first remedy

If enacted, House Bill No. 5 will amend Republic Act No. 7279 or the Urban Development and Housing Act of 1992. — With reports from Meralyn Melitante, trainee