Housing backlog in the country has reached 1.2 million units as demand stands at 2.5 million and is expected to reach 3.7 million by 2010.

This as the government launched the One Million Homes Program, a joint private and public project, to build one million shelter units within five years and solve the huge housing backlog.

"The country requires the construction and delivery of 626,012 units a year from 2005-2010," said House Committee on Housing and Urban Development. chairman Rep. Rodolfo Valencia.

As of February, realtors and builders from 13 regions nationwide reported a total sales production of about 12,000 units from social, low-cost, medium-cost and open-market developments, he said.

Valencia noted the One Million Homes Program's implementation is boosted by the approval of a bill which consolidates four proposed measures to create a full-scale housing agenda, source funds for the five-year plan, and ensure its success.

He said that to provide seed capital, P10 billion will be sourced from the Office of the President through the Housing and Urban Development Coordinating Council.

As initial funding, the government has earmarked P600 million in its General Appropriations.

Further, lawmakers who want low-cost housing developments in their own districts will have to allocate at least P5 million from their pork barrel as equity.

Courtesy from: Land Asia Institute Philippines