MANILA, (PIA) — The Department of Human Settlements and Urban Development (DHSUD) has provided new insights into the costs associated to solving pressing issues faced by informal settler families (ISFs), who often deal with inadequate housing and internal displacement.
During the 18th edition of the Kapihan sa Bagong Pilipinas media forum, presented by the Presidential Communications Office and the Philippine Information Agency National Capital Region, DHSUD Regional Office NCR Director Atty. Norman Jacinto P. Doral detailed the financial details of the Pambansang Pabahay para sa Pilipino Housing (4PH) program for potential ISFs beneficiaries.
Doral indicated that the estimated cost of housing units under the 4PH program ranges from P1.2 to P1.4 million. Without financial assistance, ISF families could face monthly amortization payments of between P6,000 to P10,000 over a 30-year period, which could be burdensome for many households.
However, the 4PH program aims to alleviate this financial strain. Thanks to government support, the interest rate for loans through the Home Development Mutual Fund (Pag-IBIG) will be significantly reduced.
“Once we enter here in the 4PH, the 5 percent interest rate will be reduced,” Doral explained. “What will happen is that the monthly payment could drop to around P3,000, making it much more affordable for an ISF family.”
Beneficiaries of the program will have two payment options. They can choose graduated amortization, starting at approximately P3,608 per month, with incremental increases each year, or opt for level amortization at around P5,998 per month, a fixed amount for the entire 30-year loan period. Both options also require additional payments for insurance and other fees.
The initiative is part of a broader government effort to address the housing crisis in Metro Manila, which, according to the 2020 census, has a population of 13,484,462, accounting for about 12.37 percent of the total Philippine population.
According to the United Nations Habitat, the Philippines has an estimated 3.7 million ISFs, with 500,000 residing in slums and high-risk areas of Metro Manila as of 2023. The 17 local government units in NCR have been tasked with creating an inventory of ISFs and government-owned open spaces to serve as temporary relocation sites while housing units are constructed.
Doral emphasized the importance of the 4PH program in providing decent and affordable housing for ISFs, stating, “This is a crucial step in our commitment to uplift the lives of Filipinos through sustainable housing solutions.”
As the DHSUD continues to roll out the 4PH program, officials are optimistic that these financial structures will encourage more families to transition into secure housing, ultimately contributing to the government’s goal of reducing homelessness in the country. (JCO/PIA-NCR)
