SMDC will co-develop the property in Paliparan, Dasmariñas, with the Gawad Kalinga (GK) civic group.

The Board of Investments (BOI) said in a statement that SMDC and GK have already forged a memorandum of agreement (Moa) for the implementation of the project.

The property can accommodate more than 200 families and will have its own road network, drainage and water-distribution systems.

Besides donating the land, SMDC will also contribute cash to help in the construction of 24 houses and a kindergarten school.

According to the BOI, this is the first Moa that GK has entered into as a participating institution with the agency. As an accredited institution, GK is authorized to receive contributions from registered housing developers, which may include cash or kind (land and construction materials or components) and the construction of socialized housing units (houses priced from P500,000 down) and/or educational facilities.

“The BOI recognizes that innovative and high-density housing strategies are required if the housing deficit is to be effectively addressed. The GK way is an innovative approach and is potentially an effective, sustainable and replicable model that would help address the problem of urban housing in the country,” BOI Governor Geronimo Sta. Ana said.

Under the 2010 and 2011 Investments Priority Plan, all housing projects registered with the BOI are required to develop an area for socialized (low-cost or affordable) housing. This is in line with the BOI’s thrust of helping the government address the housing backlog estimated to reach about 5.8 million units in 2016, and classroom shortage estimated at 66,800 units.

Contributions of housing developers under this program could reach P2 billion, which could translate to around 15,000 low-cost houses or at least 3,000 classrooms.