FACT CHECK: DHSUD officials flip-flop on housing targets

Officials from the Department of Human Settlements and Urban Development (DHSUD) gave contrasting claims on Aug. 7 regarding the number of houses to be built under the Pambansang Pabahay Para sa Pilipino (4PH) program. They said 1.2 million to 3.2 million housing units would be completed by 2028.

These numbers are inconsistent with the department’s promised target of six million, when the program was launched in 2022, and later reduced to 5.5 million and further down to three million in July.

STATEMENT

In a press briefing in Malacanang, Housing Undersecretary Avelino Tolentino III said:

“We have in the pipeline up to 52 projects, and this will bring us up to 1.2 million housing projects that are already in the pipeline. We are also projecting up to 3.2 million housing units, but ‘yun nga po (that’s the case), those numbers will be crunched (…)”

 

Source: RTV Malacañang official YouTube Page, PCO Press Briefing with DHSUD 8/07/2024, Aug. 7, 2024, watch from 6:06 to 6:24

However, Undersecretary Garry De Guzman butted in that the 3.2 million target will depend on available funding. The actual target, according to him, is 1.2 million houses.

He said:

“As of now, we are targeting 1.2 million by 2028 completed units, but we also have a target of 3.2 million by 2028, depending on the result of the subsidy, the guarantee and the capacity of government to provide the subsidy. We will first deliver the 1.2 million up to 2028, and then when there is an increase in the capacity of government, then we will scale it up, then hopefully we will achieve the 3.2 million.”

 

Source: watch from 12:25 to 13:03

FACT

The new target of building 1.2 million to 3.2 million housing units by 2028 is inconsistent with previous targets given by the DHSUD since the launch of 4PH in September 2022.

According to a 2023 Commission on Audit report on the Housing department, the agency sought to construct one million units annually from the program’s launch until 2028 to meet the estimated 6.8 million housing backlog in the country.

But in an October 2022 Senate hearing on the DHSUD’s 2023 budget, Housing Secretary Jose Rizalino Acuzar admitted that the agency’s annual target would be difficult to achieve with an approved budget of P3.95 billion.

“Pagka one million houses, at the amount of P1 million per house, ang lalabas po na kailanganin ay … P1 trillion ang kailangan po for one million houses (…) With this idea po, ‘pag P36 billion ang hiningi natin [para sa DHSUD budget], ginamit po natin sa interest subsidy, makakasundo po tayo ng P1 trillion for one million houses, almost P1.2 trillion sa private sector, hindi po kakayanin ng gobyerno ang ganyang kalaking amount.”

(For one million houses, at the amount of P1 million per house, the amount we will need sums up to P1 trillion, P1 trillion is needed for one million houses […] With this idea, if we ask for P36 billion [for the DHSUD budget], we use it for the interest subsidy, we can fetch P1 trillion for one million houses, almost P1.2 trillion from the private sector, the government will not be able to subsidize that large an amount.)

 

Source: Senate of the Philippines official YouTube Page, Committee on Finance – Subcommittee “H” (October 21, 2022), Oct. 21 2022, watch from 57:47 to 59:01

Nearly a year later, the department stuck to its target despite concerns on the agency’s limited budget.

Housing Undersecretary Emmanuel Pineda, during a September 2023 Senate deliberations on the department’s 2024 budget, mentioned about 5.5 million completed units by 2028. The 500,000 backlog units would be completed in 2029, according to him. He said:

“Makikita po natin, every year meron pong target na ila-launch na nag-a-average ng 1 million per year. Nag-start po tayo sa 2023 na ang target po natin ay 500 [thousand], next year po 800 [thousand], then 1 million [from 2025] up to 2027, then 1.2 [million] by 2028, and meron pong natitirang another 500 [thousand] for 2029.”

(As you can see, we will be launching a target every year that averages at one million per year. We will start with 2023 with a target of 500 [thousand], next year will be 800 [thousand], then 1 million [from 2025] up to 2027, then 1.2 [million] by 2028, and we will have another 500 [thousand] backlog for 2029.)

 

Source: Senate of the Philippines official YouTube Page, Committee on Finance [Subcommittee “H”] (September 25, 2023), Sept. 25, 2023, watch from 1:34:24 to 1:34:55

Ahead of the president’s 2024 State of the Nation Address (SONA) on July 22, the department lowered the target to three million housing units by 2028.

During a July 9 pre-SONA interview aired on Radyo Pilipinas, Acuzar said:

“Three million [by the end of the administration]. Dati 6 million, ‘di pa natapos ang 3 million, eh. (…) Basta makuha ko ‘yung sovereign guarantee.”

(Three million [by the end of the administration]. It used to be 6 million, but the 3 million units haven’t been completed yet. (…) As long as I get the sovereign guarantee.)

 

Source: Radyo Pilipinas official Facebook Page, Pre SONA Special | July 9, 2024, watch from 29:38 to 30:00

President Ferdinand Marcos Jr. on Aug. 6 announced his directive to concerned agencies to adjust end-of-term housing targets “based on need and demand,” in line with his expressed goal of aggressive infrastructure development from the 2024 SONA.