CREBA bats for housing incentives program

The domestic real estate and builders industry has called for an incentives program from the government to encourage players to pursue more housing development projects at affordable prices and help ease housing backlog in the country.

Noel “Toti” M. Cariño, national president of the Chamber of Real Estate and Builders’ Associations (CREBA), told reporters during the association’s general membership meeting and election of national directors on Thursday, Feb. 29, the need to balance cost, affordability and margin.

For instance, Carino raised the possibility of a government program that will subsidize the interest rate on loans for housing projects. “We want to work with government as to how,” he said.

In addition, he also urged for ease in the processing of permits at the local government unit (LGU) level. These include zonal clearances for housing developments. Carino cited the need to eliminate corruption at the LGU level.

Carino noted of the Comprehensive Integrated Shelter Finance Act, which seeks to provide a dedicated fund source for homebuyers. At present, banks and Pag-Ibig are the main sources of funds for housing projects.

“Make interest rates affordable and create balance margin of profit,” he said noting that the major housing problems are those in urban centers.

The country’s housing backlog is estimated at six million units but less than 300,000 units are built annually.

He said they are working with the Department of Human Settlements and Urban Development (DHSUD) to realize the objective to provide housing to Filipinos.

At present, mass housing projects are entitled to tax and fiscal incentives as this economic activity is listed under the Strategic Investment Priority Plan based on certain conditions.

Last year, the Board of Investments (BOI) raised the value of low-cost housing units eligible for SIPP incentives to a maximum of P3 million.

The BOI amended the 2022 Strategic Investment Priority Plan (SIPP) to raise the price of low-cost housing units eligible for incentives to P3 million each to align with the changes made by the DHSUD and the National Economic and Development Authority to the pricing of units falling under the category of economic housing.

According to the DHSUD’s Department Order No. 2022-003, the price ceiling for economic housing was raised from P1.7 million to P2.5 million.

Under the SIPP, low-cost housing projects must have a selling price in excess of P2.5 million but not beyond P3 million to be eligible for incentives. The economic housing category is capped at P2.5 million.

If you like this article, share it on social media by clicking any of the icons below.

Or in case you haven’t subscribed yet to our newsletter, please click SUBSCRIBE so you won’t miss the daily real estate news updates delivered right to your Inbox.

The article was originally published in Manila Bulletin and written by Bernie Cahiles-Magkilat.