THE National Economic and Development Authority (NEDA) has clarified the government’s decision to lower the Marcos administration’s housing target.
The Department of Human Settlements and Urban Development (DHSUD) admitted that they cannot meet the target of constructing one million housing units annually or six million units by 2028 under the National Housing Program for Filipinos or 4PH.
NEDA Secretary Arsenio Balisacan explained that the housing target was not feasible due to potential repercussions on other sectors, particularly economic implications.
‘’We said it was not feasible because it could impact other sectors. The program requires subsidizing the beneficiaries, particularly low-income households and involves providing interest subsidies for loans borne by the government,’’ according to Sec. Arsenio Balisacan.
Balisacan added that as more funds are allocated to housing, fewer resources would be available for education, health, and infrastructure.
Therefore, Balisacan emphasized the need for a balanced approach to ensure minimal impact on the economy.
The government continues to maintain the housing program but at a reduced level compared to its original target.
‘’So, we are still keeping the program but not at the level that was originally introduced but still very significant and it’s going to contribute to additional jobs,’’ he said.
DHSUD Secretary Jose Rizalino Acuzar previously announced a revised target of three million housing units instead of the initial six million under the Marcos administration.
However, it was revealed that despite the government’s pledge to build one million housing units annually, only 140,000 have been completed.
The challenges in the housing project include delays in funding release from the private sector, which supports the project.
“It took a long time because our promise was one million, but we only managed 140,000 due to the extended funding period when using private sector funds,’’ he added.
‘’The first problem—as I’ve been telling you, is funding. All our projects need money. Now, what do we need to do? So we searched for formulas—and took what looked interesting, everything—until we developed it,’’ Balisacan said.
Then, the government will give an interest subsidy, and Pag-Ibig [fund] agreed, and we all have come to an agreement. But the problem is the construction.
The lack of idle land in urban areas has also posed a challenge to the construction of these housing units.
