THE largest alliance of private housing developers in the country has welcomed the government’s announcement to retain the inclusion of mass housing activities in its investment plan for this year.
According to the Subdivision and Housing Developers Association Inc. (SHDA), the move will ensure that incentives will be extended for participating stakeholders in mass housing activities to help address the housing backlog now affecting some 6.7 million poor families and accelerate economic recovery.
The 2022 Strategic Investment Priority Plan (SIPP), which was approved by outgoing President Rodrigo Duterte last May 24, covers the development of mass housing units per a specific price ceiling as part of the incentivized priorities of the government. Likewise, it includes in-city low-cost housing projects for rent, but such is only qualified for registration in the National Capital Region.
Memorandum Order No. 61 Series of 2022-Approving the 2022 SIPP lists the priority economic and business activities that can avail of investment incentives under the Corporate Recovery and Tax Incentives for Enterprises Act.
It particularly adopts the 2020 Investment Priorities Plan as Tier 1 as the base structure for the Philippine development, determines products or services that are not locally produced for consideration for Tier 2, and identifies high technology activities critical to transforming the economy and attracting technology investments for Tier 3.
Per SHDA National President May Rodriguez, including mass housing under Tier 1 of the 2022 SIPP is a step to bolster the housing industry and address the lack of dwelling for the people.
“SHDA advocates ensuring the retention and amplification of incentives for mass housing. And the inclusion of the housing sector in the 2022 SIPP is an important move to provide housing at the price point to clear the housing backlog,” she said.
The group’s top officer emphasized that incentivizing the private sector engaged in housing activities has a direct effect on dwelling production and supply as this will guarantee their greater participation in building affordable homes.
This newly approved investment plan, she noted, would promote a competitive and resilient economy.
“Another positive impact of this is the economic multiplier effect of 3.14 times of housing on the economy. It will generate economic activities in the many industries attached to the housing sector and creates corresponding employment which can address as much as 5 percent of the country’s total employment requirements,” added the SHDA national president.
Green housing, smart cities and smart communities are all eligible for incentives. But there’s is still a need for guidelines and criteria to identify what can be considered “smart housing and smart communities,” she pointed out.
“Government and the private sector will have to develop specific guidelines and characteristics for smart housing and communities. But by incorporating the efficiencies from technological and building innovations with the fruits of green initiatives, our keywords are affordability, resilience, sustainability, and livability,” Rodriguez said.