Press Release - Cayetano urges admin to balance ambitious housing goals with gov't finances to avoid debt

Senator Alan Peter Cayetano on Wednesday warned that the government could incur significant debt if the administration sets overly ambitious goals for its national housing program without adequate planning.

Cayetano issued the remark following a Senate briefing on September 3, 2024 on the proposed 2025 budget of the Department of Human Settlements and Urban Development (DHSUD), which implements the Pambansang Pabahay Para sa Pilipino (4PH) program launched in 2022.

He stressed that since the housing program is backed by a sovereign guarantee, the DHSUD "must ensure we're not building beyond our means."

A sovereign guarantee means the government promises to repay the loan taken out for the development of 4PH houses if the National Housing Authority (NHA) and the Social Housing Financing Corporation (SHFC) fail to do so.

As of July this year, the country's debt has ballooned to a new record-high of P15.689 trillion, according to the Bureau of Treasury (BTr).

As an alternative, Cayetano urged the DHSUD to set achievable targets for housing units within the constraints of the 2025 national budget.

"A clear, achievable plan will not only help manage the budget more effectively but also ensure that we make real progress towards meeting our housing needs," he said.

He pointed to the department's fluctuating housing targets as a sign of mismanagement, noting that the goal started at 6 million units in 2022, was later reduced to 5.5 million, and then further decreased to between 1.2 and 3.2 million units last August.

In the hearing, DHSUD Secretary Jose Rizalino Acuzar said the latest target is already "realistic." However, he confirmed that only 162,000 housing units will be finished by the end of 2025.

"That leaves us with more than 3 million units unfinished. Meaning, to deliver on the program's promise, we have to construct more than 1 million units yearly," Cayetano said.

Cayetano had previously emphasized to Acuzar the importance of carefully designing the plan for 4PH to meet the goal of providing housing for minimum wage earners.

"If that (housing for all minimum wage earners) is true, I love that. But economics has to work for everyone," he said during the