Makabayan bloc: At ₱1.4-M price tag, Marcos’ housing projects out of reach for ‘poorest of the poor’

Metro Manila (CNN Philippines, August 29) -- With a 24-square meter unit costing around ₱1.4 million, informal settlers and the “poorest of the poor” are unlikely to benefit from the Marcos administration’s mass housing program, the Makabayan bloc said Tuesday.

At the House appropriations committee’s briefing on the Department of Human Settlements and Urban Development’s (DHSUD) proposed ₱5.4 billion budget for 2024, housing czar Jose Rizalino Acuzar said housing units under the Marcos administration’s Pambansang Pabahay Para sa Pilipino Housing (4PH) program cost ₱60,000 per square meter. This means the contract price for a 24-square meter unit is at least ₱1.4 million.

Acuzar said the interest payment would be subsidized by the government so beneficiaries only need to pay off the principal amount of the housing loan. He estimated the monthly amortization for a mass housing unit to be between ₱3,500 and ₱4,000, with the amount dwindling in succeeding years if unit owners diligently pay off their loans.

ACT Teachers Party-list Rep. France Castro said the monthly amortization is still too high for poor Filipinos, particularly those in regions outside Metro Manila where the minimum wage is less than ₱610 daily.

"Noong tinitingnan ko ang presyo ng pabahay, hindi ito pabahay para sa mahihirap eh. Ang total contract price niyan is ₱1.4 million. Sa isang mahirap ba kakayanin ang ₱1.4 million?" said Castro.

[Translation: When I was looking at the pricing, it didn't seem like these were houses for the poor. Can any of the poor afford ₱1.4 million?]

Gabriela Party-list Rep. Arlene Brosas said the government’s housing program appears to be geared towards the middle class, not the poor.

"Tingin ko 'yung middle class kaya eh, lalo na meron 'yung nabanggit ninyong subsidy. Pero 'yung poorest of the poor and informal sector, hindi talaga makikinabang sa ganitong programa," she said.

[Translation: I think this is for the middle class, especially since you mentioned there was a subsidy. But the poorest of the poor and the informal sector won't benefit from this program.]

Acuzar said the government’s mass housing program would enable poor families to own homes in cities, instead of being relocated to rural areas where access to schools, hospitals and government services are difficult.

"Gumawa kami ng paraan paano sila makakabili sa in-city. So subsidy, graduated amortization. Kaya huwag ninyong titingnan 'yung presyo. Ang tingnan ninyo ang support ng gobyerno doon sa monthly amortization," he said at the briefing.

[Translation: We figured out a way where they can buy in city so there is subsidy, graduated amortization. Don't look at the price, instead look at the support of the government for the monthly amortization.]

The 4PH program aims to address the country’s 6.5 million housing backlog by building one million units yearly until 2028.

Acuzar said the private sector’s participation is crucial to the program’s success, so DHSUD is offering incentives for developers to construct the housing projects.

He said DHSUD is selling housing units at double its cost of ?30,000 per square meter to provide a handsome profit margin for developers.

Acuzar claimed that the vertical housing units to be built by the government would have amenities similar to that of condominium buildings of private developers, such as a swimming pool and parks.

"Ang kita nila ay maganda rin po. Kasi dati maliit. Dinagdagan namin. Kasi ang problema ko hindi puwedeng taasan ang presyo. Pag itinaas ang presyo, ang tatamaan ang beneficiaries. So binabalanse ng DHSUD ang pricing natin diyan," he said

"Lahat ng pabahay natin, merong school, merong ospital, merong parks at swimming pool. Kung ano ang ini-enjoy ng mga ordinary na tao na nakatira sa condominium, 'yun din ang ie-enjoy ng mahihirap," he added.

[Translation: They will earn well. Before, it was a small amount and we added to it. The problem is the price can't be raised, otherwise beneficiaries will be affected. The DHSUD is balancing this. All housing will have a school, hospital, parts, and swimming pool. What people in condominiums enjoy, the poor will have these, too.]

[Translation: They will earn well. Before, it was a small amount and we added to it. The problem is the price can't be raised, otherwise beneficiaries will be affected. The DHSUD is balancing this. All housing will have a school, hospital, parts, and swimming pool. What people in condominiums enjoy, the poor will have these, too.]

To ensure the proper maintenance of public housing projects, Acuzar said beneficiaries would be required to settle association dues, similar to what residents in private residential buildings pay.

The monthly association dues would be included in the loan that mass housing beneficiaries need to pay off, he said.