Iloilo City signs deal for affordable housing

By Joseph Bernard A. Marzan

The Iloilo City government, alongside the Department of Human Settlement and Urban Development (DHSUD), has entered into a new agreement with a leading property developer, aiming to bolster the provision of affordable housing as part of President Marcos Jr.’s housing agenda.

The Memorandum of Agreement was signed by Mayor Jerry Treñas, PHINMA Community Housing’s Jose Luis Oquinena and Francis Richmond Villegas, Undersecretary Roland Samuel Young of DHSUD, and DHSUD-Western Visayas Regional Director Eva Maria Marfil.

This third collaboration under the 4PH program will potentially add up to 1,200 housing units, following earlier partnerships in February with EON Realty and Development Corporation and Ethan Property.

These new units will join previous housing initiatives in San Isidro, Jaro district, with an anticipated output of 2,000 condominiums.

Distinguished by a turnkey approach, PHINMA will be responsible for construction on their property, while the city endorses applicants identified by the Local Housing Office. Unlike prior deals, this approach negates the need for Public-Private Partnership (PPP) Center approval due to the use of private land.

While other developer agreements are under PPP Center review, Treñas is optimistic about their progress, with Young’s commitment to expedite the process.

The city’s housing shortage stands at over 20,000 units, with those residing in flood-prone areas near water bodies being given precedence for relocation.

Treñas expressed satisfaction with the PHINMA arrangement, noting the cost-effective and land-efficient partnership model.

“I am happy with PHINMA because we didn’t need to cash out and we didn’t need to utilize our own land properties. Everything will be done by them. This will be open to all qualified beneficiaries. [City Local Housing Office chief Peter] Millare has been continuously validating the beneficiaries,” he said.

Undersecretary Young assured the DHSUD’s unwavering support for the 4PH projects.

“I know the process isn’t fast, but rest assured that the [DHSUD] will make sure that everything will go smoothly. Rest assured that we will be here by your side [from] Day 1, as we promise to give every Iloilo [City] resident an equal opportunity to own a house that they can call theirs.”

Oquinena underlined the commitment to provide “decent home addresses,” alluding to the below-market purchase of the property, while Marfil indicated that more details on the project will be disclosed once PHINMA submits the technical plans.

Oquinena said that their participation will ensure “decent home addresses” for beneficiaries who have longed for actual shelter.

He also revealed that the property, also located in Jaro district, was sold to them for a lower price.

“We realize that the core of every Filipino family is to have a long address, a decent home address, not under estuaries, not anywhere, but a home address,” Oquinena said.

Marfil said that further technical specifications are to be bared soon, as actual plans have yet to be endorsed to their office.

All of the realty developers engaging in the 4PH projects, she said, would also need to apply for Licenses To Sell (LTS) with the DHSUD’s Housing and Real Estate Development Bureau.

“We can’t say [anything] yet, because their [PHINMA’s] technical plans have not come in yet. This is just the starting point, where the city government and PHINMA have agreed to develop the project. Later on, they will be submitting technical plans to us, so we will know the height of the building, how many of them will be built, and how many units will be generated,” Marfil said.

Under the 4PH program, 4-story-and-above condominiums will be built, where the national government through the DHSUD will be providing 5 percent subsidized interest, which is seen to lighten unit owners’ load in paying their monthly amortizations.

“An example of this, (sic) is when one buys a condominium unit with around ₱7,000 to ₱8,000 monthly payment, what they will actually pay will only be close to half of that because of the interest subsidy to be given by the [national] government,” Marfil explained.

Marfil also stated that potential beneficiaries are required to be members of the DHSUD-attached agency Home Mutual Development Fund (otherwise known as the Pagtutulungan sa Kinabukasan, Ikaw, Bangko, Industriya at Gobyerno or Pag-IBIG Fund) who have been giving active contributions for 24 months.

She also said that the DHSUD is still validating the list of beneficiaries affected by recent events, which was submitted by the office of Iloilo City lone district Representative Julienne Baronda, set to receive ₱15,000 assistance from the department.

“Our program funds for 2023 have already been used, so we can only help those affected in 2024. But we are still validating, with supporting documents from the local government. […] We have the funds for those who are qualified. The DHSUD will cover only those [whose houses] are totally damaged. For the partially-damaged, the [National Housing Authority] will cover their assistance, and that is not ₱15,000 anymore,” she said.