The Development Bank of the Philippines (DBP) has signed an agreement with the Department of Human Settlements and Urban Development (DHSUD) to provide informal settlers with one million affordable units annually until 2028.
“DBP is honored to take part in the DHSUD’s thrust for the housing sector by tackling its two main challenges — affordability and access to funds for housing projects,” President and Chief Executive Officer Emmanuel G. Herbosa stated Friday, September 30.
DHSUD, the primary state entity managing housing, human settlement, and urban development, spearheads the National Government’s flagship initiative, “Pambansang Pabahay Para Sa Pilipino: Zero ISF Program for 2028”.
In six years, the program aims to build six million housing units.
Under the Memorandum of Understanding signed between DBP and DHSUD, the latter will identify qualified real estate firms and contractors to develop project sites and assist in preparing their funding requirements.
For its part, DBP will formulate a loan program for DHSUD’s housing projects, in line with its initiative to broaden support for social services and community development.
Significantly, as of end June 2022, DBP’s outstanding loans for social infrastructure and community development projects totaled P98.49-billion, representing 20 percent of its total loan portfolio.
“As the country’s premiere infrastructure bank, DBP remains committed to fulfill its mandate of influencing and accelerating sustainable economic growth, through the provision of resources – may it be financial or technical for the continued well-being of ordinary Filipinos,” Herbosa pledged.
Through its “Building Affordable Homes Accessible to Every Filipino” or BAHAY Program, DBP has already approved over P9.37-billion loans to eligible borrowers for various housing projects, as of end July 2022, says Executive Vice President for Development Lending Paul D. Lazaro.
The BAHAY Program serves as DBP’s main credit facility for the housing sector, and covers the end-to-end process of housing development from land acquisition to site development and shelter construction.
“Since its inception in 2011, the BAHAY Program allowed DBP to expand and enhance its support to the government’s efforts to plug the housing backlog, through the provision of short term and long-term financing,” Lazaro explained.
DBP is the sixth largest bank in the country in terms of assets and provides credit support to four strategic sectors of the economy – infrastructure and logistics; micro, small and medium enterprises; environment; social services and community development.
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