Housing Secretary Jose Rizalino Acuzar —Photo from Department of Human Settlements and Urban Development FB page
MANILA, Philippines — President Ferdinand Marcos Jr. approved a sovereign guarantee for the flagship national housing program of his administration.
According to Sec. Jose Rizalino Acuzar of the Department of Human Settlements and Urban Development (DHSUD), the move is a “game changer” on Marcos’ Pambansang Pabahay para sa Pilipino Housing (4PH) program.
“I am optimistic that this guarantee will make the difference in our quest to finally address homelessness in the country,” Acuzar said in a Palace briefing.
Sovereign guarantee refers to the assurance of a government to investors, guaranteeing that debt repayment will be fulfilled without fail.
READ: DHSUD asks for funding guarantees for housing program
Also through the sovereign guarantee, government financing institutions (GFIs) could extend developmental loans to the National Housing Authority and Social Housing Finance Corporation to construct 4PH projects, with the government assurance to expedite the loan evaluation process and housing production.
Through the End-User Financing Program, the Home Development Mutual Fund (HDMF) or Pag-IBIG Fund shall take out the individual housing loan of beneficiaries.
Pag-IBIG shall then release the loan proceeds directly to the GFIs that granted the developmental loans. Upon payment to the GFIs, the loan obligation is fulfilled and the guarantee is extinguished.
Acuzar said there are 53 ongoing projects under the 4PH, equivalent to 1.2 million housing units.
“If our production reaches 1.2 million, we would surpass [the accomplishments] of the previous four presidents,” Acuzar said in Filipino, noting that the previous four administrations only managed to construct 300,000 housing units during their respective periods.