Lawmaker: P2.5-M ceiling for socialized housing disadvantageous to poor beneficiaries

House Assistant Minority Leader Arlene Brosas on Wednesday questioned the Department of Housing and Urban Development's (DHSUD) decision to increase the price ceiling of socialized housing project units from P1.7 million to P2.5 million, saying it won't benefit intended beneficiaries.

Brosas was referring to the DHSUD’s joint memorandum circular 2023-003 with National Economic and Development Authority's (NEDA) which raises the price ceiling of socialized housing projects from P1.7 million to P2.5 million due to the growing housing backlog in the country.

"Despite the country's significant housing backlog of 6.5 million, the 2024 National Budget allocated zero funds for housing production. The increase in the price ceiling from P1.7 million to P2.5 million will result in higher monthly fees for beneficiaries. Who will benefit from this?,” Brosas said in a statement.

“Clearly, not the beneficiaries," Brosas said.

Brosas added the DHSUD’s  Department Order No. 2021-004 which seeks to provide even more incentives to developers to participate in the housing program is not of any help in making government housing programs accessible.

"What is the purpose of these incentives if the poor can't even avail the government housing program because of the increase in its price?," Brosas asked.

The Urban Development and Housing Act, Brosas said, already provides so many tax incentives to developers.

“Kikita na nga sila sa pagtaas ng price ceiling, gusto pa ng mas maraming incentives," she said.

She then called for the scrapping of the two above-mentioned policies and urged the Marcos administration to appropriate funds for socialized housing production.

"The increase in the price ceiling will inevitably widen the gap between the demand for affordable housing and its availability, further marginalizing those in need of adequate shelter,” she said.

“Dapat itaguyod ng gobyerno ang karapatan ng mamamayan para sa paninirahan imbis na gawing negosyo ang pabahay," she added.

(The government should push for the rights of the people to have a home rather than turn socialized housing projects into a business.)

During Wednesday's hearing, Housing officials reiterated that such an increase in the price ceiling for socialized housing units is necessary due to increasing prices of construction materials as provided under the joint DHSUD and NEDA joint circular.

“The current price ceiling for socialized housing, last adjusted on 27 April 2018 through Housing and Urban Development Coordinating Council (HUDCC) Resolution Nos. 1 and 2, series of 2018, establishes a tiered price ceiling for socialized subdivision and condominium projects, respectively, based on the corresponding minimum floor area requirements. The existing price ceiling for socialized housing no longer responds adequately to prevailing market conditions, including rising development and construction costs, thereby discouraging the private sector from building affordable houses for low-income and underprivileged families,” the joint memorandum circular read.—RF, GMA Integrated News