P188-M fund to cover ongoing housing program for informal settlerfamilies

The Department of Budget and Management (DBM) has approved the release of P188 million to the Social Housing Finance Corporation (SHFC) to create housing for informal settler families (ISFs) living in danger areas in Metro Manila, chargeable against the FY 2014 General Appropriations Act (GAA).

Budget Secretary Florencio “Butch” Abad said, “We’re continually developing safe communities for informal settlers via government housing programs because they serve a dual purpose. First of all, we ensure the fruits of our economic development will be felt by our less fortunate countrymen by giving them a chance to own their homes. Second, we also protect the poor, the vulnerable, and the marginalized from future disasters caused by climate change.”

One of the projects that will receive funding under the SHFC is the Responsableng Samahang Pampamayanan (RSP) Village Phase I Homeowners Association, Inc. (HOAI). Under this project, the National Government shall acquire land for the housing of 1,504 ISFs living along Dahlia Creek, Darlo River, San Juan River, Tullahan River, Diliman Creek, and the Payatas Dumpsite.

Land acquisitionP124,590,895
Administrative costP3,008,000

On the other hand, two projects—Bistekville II HOAI Block 6 and Block 16—shall be financed by SHFC through loan refinancing. The Quezon City local government, which owns the land, will develop and build the houses that will benefit 132 ISFs living along Tullahan River and San Juan River.

ParticularsAmount (PHP) 
Bistekville II HOAI Block 6Bistekville II HOAI Block 16Total
Loan RefinancingP31,450,200P28,715,400P60,165,600
Administrative CostP138,000P126,000P264,000

The three abovementioned projects have a total cost of P188,028,495 with the following breakdown:

Housing ProjectsComponentAmount (PHP)
RSP Village Phase I HOAIPhase 1P127,595,895
Bistekville Block 6 HOAIRefinancingP31,588,200
Bistekville II Block 16 HOAIRefinancingP28,841,400

The projects shall adopt the Community Mortgage Program (CMP) approach, wherein an organized community starts and manages the housing project even as they secure funding support from the SHFC.

Abad said, “These projects are part of the National Government’s pledge on the Daang Matuwid and our commitment to leave no one behind in our journey towards economic growth. By spending on the right priorities, we not only sustain equal opportunities for all Filipinos but also improve their quality of life. This is what inclusive development ultimately means.”

For 2014, the SHFC received a total subsidy of P3.67 billion—which includes the recent release—for the implementation of the housing program. Of the said amount, DBM has already allotted P3.62 billion to the SHFC. For 2015, the SHFC housing program will receive P3.74 billion.

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