Group proposes housing interest subsidy to make homeownership more affordable

Local

THE Chamber of Real Estate and Builders’ Associations Inc. (CREBA) is pushing for a housing interest subsidy administered by the Pag-IBIG Fund to help qualified Filipino families afford monthly home payments, alongside calls to review socialized housing rules and ease regulatory bottlenecks affecting property developers.

In a press conference on Wednesday, Oct. 21, 2026, CREBA National President Noel Toti Cariño said the proposed subsidy would allow participating developers to contribute to a fund that would reduce the interest burden of eligible homebuyers, lowering their monthly amortization and making homeownership more accessible.

The association has submitted the proposal to the Department of Human Settlements and Urban Development (DHSUD), Pag-IBIG Fund and the executive branch. Cariño said the agencies are studying the recommendation.

The proposal emerged from a CREBA technical working group examining alternative ways for developers to comply with socialized housing requirements.

Under the scheme, developer contributions would be non-recoverable and administered by Pag-IBIG as interest assistance for qualified borrowers.

Cariño said the approach could provide more direct support to buyers than requiring developers to construct housing units in locations where demand is weak or beneficiaries may struggle to live and work.

The group stressed that increasing housing supply alone would not solve the country’s housing problem if intended beneficiaries could not afford the monthly payments.

“The beneficiary will feel the help, the intervention, rather than forcing developers to put up units, which up to now, some of which has remained unoccupied,” Cariño said.

CREBA Executive Vice President Fernando Martinez said private developers were willing to help address the housing backlog but needed practical guidelines and closer coordination with government agencies and local governments.

The association also wants the government to reassess the effectiveness of socialized housing compliance rules, including whether existing mechanisms are delivering homes to the people who need them most.

National convention chairman Jose Soberano III said the government should distinguish between households capable of obtaining housing loans with assistance and those who cannot afford financing at all.

The latter group, he said, may require direct government intervention through public housing agencies and possible rent-to-own arrangements.

Meanwhile, CREBA is seeking a review of a DHSUD policy requiring proceeds from sales under a temporary license to sell to be placed in escrow.

Cariño said the condition could limit developers’ access to funds needed to advance projects, despite their substantial investments in land acquisition, permits and planning.

The group has submitted its concerns to the department and members of Congress, while calling for regulations that protect buyers without unnecessarily slowing housing development.

CREBA also welcomed the return of licensing and permit processing authority to regional offices, saying this could help speed up applications in the Visayas and Mindanao.

The proposals are among the issues being raised during CREBA’s 53rd National Convention in Cebu, which brings together industry stakeholders to discuss housing policy, real estate development and ways to expand access to decent and affordable homes.(MyTVCebu)