Office of the Vice President : Press Release

Refer to: Ms. Dale Zapata
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VP Noli cites consistent gov’t strategy behind “housing boom”
23 September 2005

VICE President Noli “Kabayan” De Castro, chairman of the Housing and Urban Development Coordinating Council (HUDCC) said that consistent implementation of government’s housing strategy has led to significant gains in the housing sector which the real estate industry acknowledges.

Speaking at the 10th National Convention and Exhibit of the National Real Estate Association, Inc. (NREA) at the SM Megamall, De Castro commended the organization’s optimistic choice of theme for the event.

The Vice President said that the theme of the convention and exhibit, “Sustaining the Real Estate Boom,” reflects the current positive trend in the sector.

“Whatever we choose to call the state of Philippine housing today, I guess it is truly important that we sustain the gains that we have achieved over the years,” he said.

The four basic measures under the government’s housing strategy outlined by De Castro include creating an investment-friendly environment, keeping the housing agencies in order, addressing the needs of the urban poor and the decongestion of Metro Manila, and empowering local government units to implement their own housing programs.

Government has exempted the sale of housing units not exceeding P1.6 million pesos from Value-Added Tax (VAT) to lower the selling price of housing units.

It has also raised the ceiling for socialized housing to encourage the participation of more developers, and instituted alternative compliance mechanisms “to make it easier for developers to comply with the balanced housing requirement.”

De Castro revealed that the key shelter agencies under HUDCC are implementing various measures “to make us more effective in carrying out our duties.” These measures include organizational restructuring, streamlining, improving collection efficiency, disposition of non-performing assets and transparency.

He cited the ongoing relocation of families living along the North Rail right-of-way as one of the priority projects of the housing sector to secure the shelter tenure of informal settlers, and to pave the way for opening up new development focal points in Central Luzon to ease the congestion in Metro Manila.

He also said that HUDCC is helping local government units implement their own housing programs by supporting the establishment of local housing boards in every city and municipality, and pushing for greater decentralization and devolution of functions related to housing and urban development.

“I believe our consistent implementation of these strategies enabled us to revitalize the sector and to keep it healthy and viable,” he stressed.