The authorities will present an annual 5% curiosity subsidy to the beneficiaries of the federal government’s Pambansang Pabahay Para sa Pilipino Program or low-cost housing program for 10 years, in accordance with an official of the Department of Human Settlements and Urban Development (DHSUD) on Tuesday.
DHSUD Undersecretary Garry De Guzman made the assertion after House appropriations panel vice chairperson Stella Quimbo who expressed concern in regards to the authorities’s plan to offer such an curiosity subsidy, given that fifty,000 housing items for this system would already require P1.5 billion value of curiosity subsidy yearly.
The authorities’s goal low-cost housing items to be inbuilt a yr underneath the stated Pabahay Program, nevertheless, stands at a million housing items in a yr.
“We are studying this and we don’t think the interest subsidy will run for the next 30 years on the assumption that they will improve their lives with increased salary, increase in the value of property, so there is a waning away period. That is what we call it,” de Guzman instructed the House appropriations panel through the deliberations of the DHSUD’s proposed P5.9 billion finances for 2024.
“We have an internal study which [shows that it] probably will take 10 years before the interest [subsidy] would need to rise,” de Guzman added.
The DHSUD has requested Congress to provide the company an annual P36 billion finances to fund the curiosity subsidy final yr, however this has not materialized.
Quimbo stated that the P1.5 billion finances of curiosity subsidy masking 50,000 low value housing items on an annual foundation is already a heavy burden for the federal government.
“I asked because P1.5 billion is a huge amount, and we would need another P1.5 billion to build another 50,000 low cost housing units, and we would need this for every year for the next years,” Quimbo stated.
“You need to remember that your target is to build one million housing units every year,” Quimbo added.
Under the Pabahay Program, every housing unit prices P1.2 million, with month-to-month amortization costing a minimum of P3,500 per thirty days. The authorities is mulling over making this month-to-month amortization a graduated fee beginning at P2,000 which can improve after 5 years.
Of the P1.2 million unit value, the beneficiary will solely pay P400,000, a mortgage that they are going to pay in 30 years to state-run Home Development Mutual Fund with 6% annual curiosity. The beneficiary will solely pay 1% of such curiosity, with the remaining 5% backed by the federal government. —VAL, GMA Integrated News
Source: www.gmanetwork.com
