Government Provides Subsidies for 4PH Pambansang Pabahay Borrowers

The Philippine government, through the Department of Human Settlements and Urban Development (DHSUD) and the Pag-IBIG Fund, is making significant strides in making homes more affordable for Filipino workers. The 4PH Pambansang Pabahay Para sa Pilipino Housing Program, announced last May 1 on Labor Day, is set to transform the housing sector by offering homes at reduced prices and lower monthly costs through various subsidies, as shared in this report by the Inquirer.

4PH subsidy
Credits: PNA

What is the 4PH Pambansang Pabahay Program?

The 4PH Pambansang Pabahay Program, led by DHSUD, helps Filipino Pag-IBIG members achieve homeownership by offering government subsidies for affordable housing units, facilitating loans through Pag-IBIG, and promoting development of green, amenity-filled communities.

Significance of this Program

The 4PH Pambansang Pabahay Para sa Pilipino Housing Program addresses a significant need in the Philippines. With an estimated housing backlog of 6.5 million units according to the Department of Human Settlements and Urban Development (DHSUD), many Filipinos struggle with “inadequate or insecure housing”. This aims to bridge this gap by providing affordable housing options through government subsidies that lower amortization costs. This is particularly significant for Filipino workers who are members of Pag-IBIG Fund, a key partner in the program. By facilitating loans and integrating with the 4PH, Pag-IBIG helps make homeownership a reality for more Filipinos. The ultimate goal, as envisioned in the Marcos Jr. administration’s legislation, is to achieve zero informal settlements by 2028, leading to a significant improvement in the overall living conditions and well-being of Filipino citizens.

Reducing Costs with Government Subsidies

The main objective of the 4PH program is to make housing both accessible and affordable. Under this, the homes are priced below market rates due to government-imposed price ceilings for affordable housing. Additionally, those who secure a Pag-IBIG Housing Loan for a unit in the 4PH will benefit from even lower interest rates, with DHSUD subsidizing up to 5% of the loan’s interest rate. This aligns with President Marcos’ Philippine Development Plan 2023-2028, which prioritizes addressing the nation’s housing needs.

Legal Basis

The legal basis for the Pambansang Pabahay para sa Pilipino Program (4PH) is Executive Order (EO) 34, signed by President Ferdinand R. Marcos Jr. This EO was further clarified by the Implementing Rules and Regulations (IRR) signed on April 29, 2024, by the Department of Human Settlements and Urban Development (DHSUD), Department of Environment and Natural Resources (DENR), Department of the Interior and Local Government (DILG), and Land Registration Authority (LRA).

Enhancements for Quality of Life

The 4PH doesn’t just stop at making homes affordable. It also focuses on enhancing the quality of life for its residents by incorporating green features, communal spaces, and amenities like swimming pools and basketball courts. These features ensure that the housing communities are not only affordable but also enjoyable places to live.

A Community-Centric Approach

Secretary Jose Rizalino L. Acuzar emphasizes that the program is designed to be community-centric. It adopts a township model, allowing residents to live in self-sufficient communities with access to commercial spaces, schools, healthcare centers, and other essential infrastructure.

How to Avail of the 4PH Program

Eligibility for the program requires Pag-IBIG Fund membership. Interested workers can apply for a special Pag-IBIG housing loan under the 4PH and coordinate with their local government housing boards to be listed as pre-identified applicants. This approach ensures that the process is coordinated and beneficial for all parties involved. You can learn more about the 4PH here.

A Call to Responsibility

As Marilene C. Acosta, CEO of Pag-IBIG Fund, notes, the sustainability of this program depends on the cooperation and responsibility of the beneficiaries. It is essential for homeowners to keep up with their amortizations, real property taxes, and maintain the upkeep of their homes. This collective effort is essential for addressing the housing backlog and ensuring its long-term success.

Recent Updates

Government’s 4PH Program Offers Homeownership Opportunities for Filipinos

The 4PH aims to provide affordable housing options to Filipinos, enabling them to finally move into their own homes. By becoming a member of the Pag-IBIG Fund and coordinating with their local government unit (LGU), individuals can access additional details and take steps towards achieving homeownership. This is part of the government’s efforts to create a new Philippines and promote a sense of pride and stability among its citizens.

 
DHSUD Presents Conceptual Design for Inclusive Housing Project in Pasay City

DHSUD unveils a conceptual design for an inclusive housing project aimed at providing temporary shelters and permanent housing units for informal settler families (ISFs) in Pasay City. This is part of the government’s 4PH Program, which focuses on in-city relocation and aims to ensure inclusive shelter efforts for ISFs. The meeting with Pasay City officials signifies DHSUD’s commitment to engaging local government units (LGUs) and incorporating their input into the project.

 

This Article in a Nutshell

The Philippine government’s 4PH tackles the nation’s housing shortage by offering affordable accommodation options to Filipino workers. Backed by Pag-IBIG Fund and government subsidies, it brings down housing prices and loan interest rates. These homes go beyond affordability; they promote a better quality of life with green spaces, amenities, and a community-centric approach. This program, aligned with President Marcos’ development plan, aims to achieve zero informal settlements by 2028.

Conclusion

The 4PH represents a significant step towards affordable housing in the Philippines, with government subsidies playing a key part in reducing the financial burden on Filipino workers. This not only makes homeownership more attainable but also improves the overall quality of living, making it a win-win situation for the community and the country.

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