Poor and low-income families in Bacolod City and other parts of Negros could gain more affordable rental housing options under a proposed law offering tax and financing incentives to private developers that build or operate qualified low-cost rental units.
The Senate approved Senate Bill No. 2507, or the proposed Affordable and Decent Rental Housing Incentives Act, on second reading on Sept. 30, sponsored by Sen. Francis “Chiz” Escudero.
The proposal seeks to increase the supply of affordable rental housing by encouraging private developers to construct, rehabilitate and operate units intended for poor and low-income households.
Under SB 2507, qualified rental housing providers would have to register and secure certification for units covered by the program.
Rental rates would be determined by the Department of Human Settlements and Urban Development based on household income, prevailing rental prices in the area, and the size and type of housing unit.
Only qualified units rented to poor and low-income households would be eligible for government incentives.
Developers and operators could receive value-added tax exemptions on qualified leases, incentives under the Corporate Recovery and Tax Incentives for Enterprises Act, and a tax credit equivalent to 25 percent of gross rental income for five years.
They could also be granted preferential lending terms through the Pag-IBIG Fund, Land Bank of the Philippines and Development Bank of the Philippines.
The measure provides for other financing mechanisms, including credit guarantees, interest subsidies and viability gap funding intended to encourage investment in affordable rental housing.
Escudero said the housing problem could not be addressed by government alone and cited the constitutional mandate for cooperation between government and the private sector in providing housing.
“The Constitution itself recognizes that the challenge of housing cannot be met by government alone,” he said.
The bill would also allow government-owned land and other assets to be utilized for affordable rental housing through usufruct, leases, concessions and public-private partnership arrangements.
Escudero said the proposed incentives are intended to bring public and private resources together to expand the availability of decent housing for Filipino families.
He stressed that the proposal focuses on increasing the actual supply of affordable rental units instead of merely regulating existing rentals.
Funding needed to implement the measure would be included in the annual General Appropriations Act and in the spending programs of concerned government-owned and controlled corporations.*
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