The national government's aggressive housing program got another boost after the Securities and Exchange Commission (SEC) approved the compliance Asset-Backed Securities (ABS) of the National Home Mortgage Finance Corporation (NHMFC).
This means more funds for the housing projects as the move is part of attracting private capital to the housing industry, said Department of Human Settlements and Urban Development (DHSUD) Secretary Jose Rizalino Acuzar.
The NHMFC launched the compliance ABS offering in a virtual roadshow on Tuesday, Dec. 5, hosted by Landbank of the Philippines (LBP), the arranger for the issuance.
A total P570 million worth of securities will be issued to at most 19 qualified investors/real estate developers. Institutional book building and roadshows for the compliance ABS are presently being conducted and the issuance is scheduled on Dec. 15.
Acuzar explained that with the compliance ABS, developers can enjoy a convenient, risk free manner of compliance to the Balanced Housing Development Program (BHDP) - a program for developers to contribute to Socialized Housing Projects as mandated by Urban Development and Housing Act of 1992 (Republic Act No. 7279, as amended by R.A. No. 10884).
He said that investment in the compliance ABS will be a great opportunity for developers in the private sector to contribute and participate in the Pambansang Pabahay Para sa Pilipino Program, as funds generated by the compliance ABS will be directly used for the development of New Socialized Housing Projects.
“Investment in this Asset-Backed Securities entails full compliance to the Balanced Housing Development Program. This is in contrast to other modes of available compliance such as the Incentivized Compliance Program that only merits provisional compliance to the BHDP, subject to the completion of the development project,” Acuzar said.
“In the NHMFC’s compliance ABS, developers are ensured that their regulatory requirements under the law are complied with from the onset of their projects while at the same time contributing to the intensified efforts to give housing to more Filipino families,” he added.
NHMFC President Renato L. Tobias sees the compliance ABS as NHMFC’s contribution to the Pambansang Pabahay Para sa Pilipino Program of the government which seeks to build one million homes a year until 2028.
The DHSUD is seeking to solve over 6.5 million housing backlog in the country. In a previous statement, it said it needs P36 billion a year to build one million houses.
The Home Development Mutual Fund or Pag-IBIG Fund has already committed P250 billion for the housing program.