Carmona condo units rising for the poor

By Charles E. Buban
Philippine Daily Inquirer
Posted date: January 26, 2009

MANILA, Philippines—With many businessmen taking a cautious stance amid the gloomy economic outlook, a group of property developers has decided to invest in a project for Filipinos living near or below the poverty line.

“As home builders, we also think about those who can’t afford even our cheapest homes. We can’t just let them stay living in slums or remain renting forever,” said Romarico Alvarez, who recently persuaded a number of his colleagues to pool resources to form the Coalition for the Homeless Foundation Inc. (CHFI).

The New Town Villas Carmona in Barangay Milagrosa in Carmona, Cavite, is the CHFI’s first project. Initially, a dozen condominium units will be turned over to beneficiaries.

“We are currently screening 12 families and if they passed our criteria, all they have to do is move in and take care of the P2,379 worth of monthly payment to Pag-Ibig, which is payable in 30 years at 7 percent per annum,” said Alvarez, who is the CHFI president.

The list of the first batch of beneficiaries will be known by February.

Initial 12 units

The CHFI took care of developing the 1,534-square-meter property that the municipality of Carmona donated and of constructing the three-story building where the initial 12 units are located.

“Once completed, New Town Villas Carmona will have three buildings that will shelter 60 beneficiaries. Down payment will not be required as the CHFI already applied for accreditation with Pag-Ibig, as well as obtained a funding commitment line for the project,” Alvarez said.

Each condo unit costs P320,000, and Home Development Mutual Fund, popularly known as the Pag-IBIG Fund, agreed to grant the same loan amount.

The 25-square-meter unit includes a living-dining-kitchen area and a space to accommodate two small bedrooms, a toilet and a laundry area. Each unit has a separate submeter for electricity and water.

Teachers, police officers

What the CHFI is targeting are school teachers, police officers, military personnel, factory workers, security guards and other poor families who could have at least P7,900 gross monthly income so they could conveniently pay the monthly dues.

Alvarez said these future residents would only have to pay the monthly amortization and a minimal amount for association dues.

“These families deserve to be helped. We decided not to dole out the condo units in order to help these beneficiaries break the cycle of dependency and become self-reliant,” Alvarez said.

It is estimated that at least 26 million Filipinos—or 30 percent of the population—are living near or below the poverty line.

A family of five falls under the poverty line if it earns the peso equivalent of US$157 or P7,433.95 a month, according to the latest government measure.

Replicate

The CHFI is negotiating with other local government units to replicate New Town Villas Carmona in their areas, according to Alvarez.

Eight benefactors have made New Town Villas Carmona possible. Alvarez is joined by architect Jose de Guzman, Mariano Martinez Jr., iRemit Global Remittance, Asiatic Development Corp., PA Alvarez Properties Development Corp., PA Metro Residence Builders Inc. and Phinma Properties.

These individuals and organizations are affiliated with the Subdivision Housing and Developers Association (SHDA), the country’s largest organization of subdivision and housing developers.

“These benefactors have pooled resources to raise P19.20 million, which is the cost of the whole development. Considering that the SHDA has more than 200 members, imagine more of us sharing our expertise and part of our earnings to help more poor homeless Filipinos,” Alvarez said.