DBM Proposes P5.5 Billion Housing Budget, Far Below Agency Needs

The Department of Budget and Management (DBM) has recommended a budget of P5.498 billion for housing agencies in 2027, a figure significantly lower than the P60 billion sought by the Department of Human Settlements and Urban Development (DHSUD) and its attached bureaus. This substantial gap raises concerns about the future funding and implementation of crucial housing programs in the Philippines. The DHSUD and its affiliated agencies had requested a combined P60 billion for the upcoming fiscal year, with the National Housing Authority (NHA) slated to receive the largest portion to expand government housing initiatives. Specifically, the NHA was to be allocated P44.732 billion, while the DHSUD itself was to receive P4.962 billion. The Social Housing Finance Corp. (SHFC) proposed P4.666 billion, the National Home Mortgage Finance Corp. (NHMFC) sought P4.750 billion, and the Human Settlements Adjudication Commission (HSAC) requested P890 million. In contrast, the DBM's proposed budget allocates P2.274 billion to the NHA, P2.492 billion to the DHSUD, P166 million to the SHFC, a mere P450,000 to the NHMFC, and P566 million to the HSAC. These figures represent a drastic reduction from the agencies' stated needs. During a hearing before the House Committee on Housing and Urban Development, Housing Undersecretary Henry L. Yap highlighted the administration's progress, stating that 1.133 million housing units have been assisted to date, with an expectation of an additional 557,000 units being delivered over the remaining two years of the current term. He noted that the Pambansang Pabahay para sa Pilipino Program has broadened its scope beyond vertical housing to encompass horizontal housing, rental units, temporary shelters, and various financing schemes, including low-interest housing loan programs and the revitalized Community Mortgage Program. Despite these efforts, the proposed budget cut by the DBM could impede the government's ability to address the persistent housing deficit in the Philippines, potentially impacting millions of Filipinos in need of affordable and safe housing. The significant disparity in funding proposals underscores a potential disconnect in priorities between the DBM and the housing sector's development goals.