In a significant boost for the 4PH program, the Department of Human Settlements and Urban Development (DHSUD) expresses its gratitude to President Ferdinand R. Marcos Jr. for his approval of a sovereign guarantee. This crucial backing promises to accelerate key shelter projects aimed at improving living conditions for the country’s poorest families.

In a press briefing at Malacañang on Wednesday, DHSUD Secretary Jose Rizalino Acuzar said the President’s approval is a “game-changer” as it would address homelessness in the Philippines.

“Kami po sa DHSUD, kasama na ang key shelter agencies, ay lubos pong nagpapasalamat sa mahal na Pangulo, sa ating economic managers sa kanilang suporta. I am optimistic that this guarantee will make a difference in our quest to finally address homelessness in the country,” Acuzar said.

“This guarantee is another solid testament to our President’s commitment to uplift the lives of all Filipinos by providing decent yet affordable shelters through a whole-of-nation approach. Sa pamamagitan nito, mapapabilis po natin ang pagsulong ng 4PH sa buong bansa dahil mas malakas ang kumpiyansa ng ating mga private partners sa programa,” he added.

Currently, there are 53 ongoing projects under 4PH, which are mainly funded by the private sector, Secretary Acuzar said. This, according to the DHSUD chief, demonstrates a strong government and private sector partnership in carrying out socialized housing.

Through the sovereign guarantee, government financing institutions (GFIs) could extend developmental loans to the National Housing Authority (NHA) and Social Housing Finance Corporation (SHFC) to construct 4PH projects, with the government's assurance to expedite the loan evaluation process and housing production.

Through the End-User Financing Program, the Home Development Mutual Fund (HDMF) or Pag-IBIG Fund shall take out the individual housing loan of beneficiaries.

Pag-IBIG shall then release the loan proceeds directly to the GFIs that granted the developmental loans. Upon payment to the GFIs, the loan obligation is fulfilled and the guarantee is extinguished.

Based on Pag-IBIG data, the cancellation rate of socialized housing loans is 9.11 percent. However, the appreciation of property value could outpace the holding costs, such that Pag-IBIG still stands to gain upon resale of the property.

DHSUD said there are up to 1.2 million housing projects already in the pipeline. The agency is eyeing up to 3.2 million housing units by 2028.