DHSUD should reconsider building high-rise condos for informal settler families

The construction of high-rise residential condominium buildings for informal settler families in highly urbanized areas nationwide is the major solution to the 6.5 million housing backlog under the Pambansang Pabahay Para Sa Pilipino (PPPP) program. The program will be undertaken by local government units (LGUs) as project proponents, and will take charge of selecting and prequalifying beneficiaries, including processing of their housing loans for financing by Pag-Ibig Fund, as well as government and private financial institutions. The construction of buildings will be awarded to contractors, which will include private developers. In this regard, a down payment will normally be required upon signing of the construction agreement, and subsequently, monthly progress payment until completion of each building.

Aside from the huge challenge of financing the construction of buildings and housing loans of beneficiaries for one million housing units per year, my main concern, initially, is the complexity of estate management for high-rise buildings of up to 22 floors occupied by informal settler families. This will include the maintenance of elevators, fire sprinkler systems, and other common facilities, as well as the additional cost that will be incurred to be shouldered by the LGU or passed on to the beneficiaries on top of monthly amortization.

With the very limited experience and track record of LGUs nationwide to undertake such projects as proponents, and more so to take charge of the complex responsibility for maintenance of common facilities for high-rise buildings, it is highly advisable for Secretary Jose Rizalino Acuzar of the Department of Human Settlements and Urban Development (DHSUD) to rethink and reconsider the construction of high-rise residential condominium buildings as the immediate major solution to the 6.5 million housing backlog. It will be most practical and prudent for Secretary Acuzar to initially test run the PPPP with the construction of medium-rise walk-up residential condominium buildings (MRBs) of up to five floors in highly urbanized areas of the country for the first two years of the program.

Within the same test run period, the high-rise residential condominium buildings that have been completed in the City of Manila by Mayor Isko Moreno for informal settler families will serve as a prototype of actual experience on estate management for high-rise buildings. And the performance of the program after the completion of a sufficient number of MRBs, together with the actual performance of estate management for high-rise buildings in the City of Manila as reference, will provide a more solid basis for DHSUD to subsequently proceed or not with the nationwide construction of high-rise buildings for informal settler families under the PPPP.

Jose S. de Guzman,

housing advocate