Senator Francis “Chiz” Escudero is pushing for tax incentives and other benefits to encourage private developers to build more affordable rental housing for poor and low-income families.
Senate Bill No. (SBN) 2507, or the “Affordable and Decent Rental Housing Incentives Act,” recently passed the Senate on second reading.
The bill seeks to encourage private developers to build, rehabilitate and operate rental housing that meets government standards on affordability.
Escudero said the government cannot solve the country’s housing problem on its own and needs the participation of the private sector.
“The Constitution itself recognizes that the challenge of housing cannot be met by government alone,” Escudero said.
Under SBN 2507, rental housing providers would have to register and secure certification, while rental rates would be set based on standards to be determined by the Department of Human Settlements and Urban Development.
Qualified developers and operators could receive VAT exemption on leases, tax incentives under the CREATE Act and a 25% tax credit on gross rental income for five years.
They could also get preferential lending terms from Pag-IBIG Fund, Land Bank of the Philippines and the Development Bank of the Philippines, as well as credit guarantees and other financing support.
The bill would also allow government land and other assets to be used for affordable rental housing through lease, usufruct, concession and public-private partnership arrangements.
“These incentives give government the tools to orchestrate and harmonize public and private resources toward a common goal: decent and affordable housing for every Filipino family,” Escudero said.
He said the measure is intended to increase the supply of affordable rental units, rather than simply regulate the rental housing sector.IMT
