DEC.

23, 2011 DATE

NR # 2626
REF. NO.

House calls on DBM to release P2.06 billion budget balance for local housing program
The House of Representatives has called on the Department of Budget and Management to immediately release the long overdue balance of P2.06 billion of the allocated budget for the local housing program as mandated under Republic Act 7835 otherwise known as the Comprehensive and Integrated Shelter Financing Act of 1994. The House issued the appeal to the DBM by adopting House Resolution 591 prior to going on a Yuletide break. House Resolution 591 was sponsored by Rep. Rodolfo Valencia (3rd District, Oriental Mindoro), Chairman of the Committee on Housing and Urban Development, and Rep. Joseph Emilio Abaya (1st District, Cavite), Chairman of the Committee on Appropriations. Valencia said the estimated housing backlog of 3.7 million local housing units can partly be attributed to the governments shortfall in releasing the much needed allocations for its various housing programs. Fifteen years after the enactment of RA 7835, a measly 31 percent of the total allocation for the Local Housing Program (LHP) was released and distributed to various congressional districts throughout the country, said Valencia. The LHP is aimed at ensuring equitable distribution of housing benefits across the country with the National Housing Authority being tasked to implement cost-recoverable socialized housing projects in selected urban and urbanizable areas in all congressional districts according to him. There is an urgent need to release the remaining 69 percent of the appropriations for the LHP to give each congressional district an equal opportunity to provide its constituents with socialized housing and eventually help decrease the housing backlog in the country, Valencia said. He said it is the policy of the State to undertake a continuing program of urban land reform and housing which will make available at affordable cost decent housing and basic services to underprivileged and homeless citizens in urban centers and resettlement areas. The Comprehensive and Integrated Shelter Financing Act of 1994 or RA 7835 was enacted to increase and regularize the yearly appropriations of the major components of

DEC. 23, 2011 DATE

NR # 2626
REF. NO.

the National Shelter program to ensure continuous funding support to vigorously implement the governments program for housing and resettlement. Another objective of the law is to provide a strong and sustainable shelter finance program with complementary support systems according to Valencia. He cited that the following housing programs were allocated with funding support under RA 7835, and received these corresponding releases from the DBM as of July 20, 2010: resettlement program, P5.2 billion allocation which was fully released without balance; medium rise public and private housing, P3 billion allocation but amount released was only P1.008 billion or a balance of P1.991 billion; community mortgage program, P12.780 billion allocation but amount released was only P6.580 billion or a balance of P6.199 billion; cost recoverable program, with P2.542 billion allocation but amount released was only P467.865 million, or a balance of P2.074 billion; and local housing program with P3 billion allocation but amount released was only P939.664 million or a balance of P2.060 billion. According to Valencia, RA 7835 provides that such allocations were to be appropriated annually for a period of five years from 1994 through 1999. (30) rbb