Pag-IBIG Fund, BCDA expand housing push in the Philippines

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Pag-IBIG, BCDA housing expansion

Highlights

Pag-IBIG Fund and BCDA signed an Oct. 8 memorandum of agreement to jointly develop 14 hectares of housing and related projects in New Clark City, focusing on worker-targeted walk-to-work townships.
The partnership aims to increase affordable home supply by combining government land, infrastructure, and financing, supporting President Ferdinand R. Marcos, Jr.'s directive to expand access to quality housing for Filipino workers.
BCDA and Pag-IBIG Fund leaders highlight long-term institutional cooperation to ensure efficient use of government land, reduce workers' commuting costs, and potentially replicate the model with other institutions.

New Clark City housing plan and agreement scope

As reported by BusinessWorld Online, Pag-IBIG Fund and BCDA signed a memorandum of agreement on Oct. 8 to pursue housing and related development opportunities on identified BCDA properties. The tie-up combines government land, infrastructure, financing and housing expertise to increase the supply of quality homes while linking these to affordable funding for buyers.

The initial priority is approximately 14 hectares in New Clark City, including a 10-hectare site in Bamban, Tarlac, and a 4-hectare site in Capas, Tarlac. The Capas property is intended for a government center and other complementary developments, while Camp John Hay, Morong Discovery Park and the Poro Point Freeport Zone are also identified for possible future projects.

Officials say the planned New Clark City project is intended for workers and is aimed at creating a walk-to-work township. The concept combines housing with commercial areas and facilities for rest, recreation and daily needs, with the goal of keeping residents close to workplaces and essential services.

Housing affordability and wider policy impact

Department of Human Settlements and Urban Development Secretary and Pag-IBIG Fund Board Chairman Jose Ramon P. Aliling says the partnership shows how public institutions can combine resources to make homeownership more attainable for Filipino workers. He says the model supports President Ferdinand R. Marcos, Jr.'s directive to expand access to decent and affordable homes and could be replicated with other government and private sector institutions.

BCDA President and CEO Joshua M. Bingcang says the partnership is structured as a long-term institutional arrangement and is meant to ensure BCDA properties are used productively as project areas grow. He says BCDA aims to advance projects within the current administration's term that provide quality housing and broaden opportunities for Filipino families to own homes.

Pag-IBIG Fund Chief Executive Officer Marilene C. Acosta says the agreement also addresses the effect of location on workers' daily expenses and quality of life. She says bringing homes closer to workplaces can help members cut transport costs, avoid long commutes and spend more time with their families.

Our earlier report on Megawide’s affordable housing push under the government’s Pambansang Pabahay para sa Pilipino (4PH) program explained how the company is scaling up development of lower-priced homes to address the housing backlog. It also noted Pag-IBIG Fund’s P10 billion commitment to support more than 7,000 units and Megawide’s focus on sites near Metro Manila to cut commute times and bring housing closer to employment hubs.

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