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De Castro warns housing agencies against politicking

MANILA, Philippines—Citing the coming national general elections, Vice President Noli de Castro has warned the housing and social security agencies under him to be "on guard against politics."

De Castro, housing czar of the Arroyo administration, issued the warning on Friday in a speech before the International Social Security Association's regional forum for Asia and the Pacific in Makati City.

Noting that in seven months the country would enter what he called a "period of political transition," he said "social security institutions will be put under pressure [by some politicians] to deliver services" to their supporters.

These agencies "will be placed under close scrutiny by both administration and non-administration candidates," said De Castro.

According to him, "balancing political realities with the requirements of the future is a very sensitive issue."

De Castro asked the Housing and Urban Develoment Coordinating Council, which he heads, and the six agencies attached to it not to succumb to pressure from politicians.

"During this critical period, our institutions should continue to promote what is right and not just what is acceptable. They have to continue providing services to those who need them, like the victims of Typhoons ‘Ondoy’ and ‘Pepeng’ and poor families who are the most vulnerable sector in the country," said De Castro.

HUDCC groups the Home Development Mutual Fund (Pag-Ibig Fund), National Housing Authority, Home Guaranty Corp., Housing and Land Use Regulatory Board, National Home Mortgage and Finance Corp., and the Social Housing Finance Corp.

De Castro pointed out that social security issues "have been at the forefront of policy discussions over the past weeks because of the recognition that many families, if left on their own, may not be able to cope with the effects of the typhoons."

"As a result, social security institutions here are faced with the need to immediately react to the requirements of our people while still ensuring that our programs remain sustainable and viable in the long-term," he said.

According to De Castro, "it is in situations like these that we see the great importance of good governance in promoting social security."

He cited the Pag-Ibig Fund for "creating a policy environment that will improve access to housing."

Over the past three years, the institution "has introduced more reforms in its lending guidelines than at any period in its 28-year history."

"Housing loan interest rates were adjusted five times from 2006 to 2009, resulting in an environment of low interest rates. The biggest cuts were in the lower loan packages that target the ordinary wage earners. Loan payment terms were increased to a maximum of 30 years for all packages," he explained.

With Pag-Ibig Fund's affordable loans, home ownership in the country became a viable and practical option over rental housing, De Castro pointed out.

Earlier, De Castro furnished the Inquirer a copy of a housing sector report where he cited HUDCC for being "instrumental in the issuance of presidential proclamations and directives which provided security of tenure to squatter families.

During the past two years, more than 60,100 squatter families nationwide have benefited from the program, he said.

For its part, the NHA has relocated nearly 80,000 families adversely affected by the government's rail transport development program in both Central and Southern Luzon.

It has also provided P10.5 billion in housing aid to more than 100,260 low-income families displaced by state infrastructure projects.

According to De Castro, "the challenge to the housing sector remains huge and this task involves not only the national government, but also partnership with local government units, the private sector and multilateral institutions."

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