BALER, Aurora, Philippines – A veteran lawmaker has pushed for the creation of a “Department of Housing” in the national government to address the problems of housing and shelter projects for the poor and to better coordinate the efforts of the Housing and Urban Development Coordinating Council (HUDCC) and numerous agencies now only under its supervision.

Senator Edgardo J. Angara, who hails from this small town, said in a statement that it is high time that the Philippines rationalizes all housing agencies and put them together under a Housing Department.

“This will make coordination easier, and make us closer to our target of providing more homes to our people,” said Angara, Vice-Chair of the Committee on Finance.

The senator has proposed that agencies including the Home Guaranty Corporation, National Home Mortgage Finance Corporation, Social Housing Finance Corporation, National Housing Authority, Home Development Mutual Fund, and the Land Use Regulatory Board be put under one department to be led by a cabinet secretary knowledgeable in housing and shelter programs.

“The Philippines is the only country that spends the least for housing of their citizens — even less than half a percent of our GDP," he said, reiterating the need for increased coordination and budgetary support. The total budget allocation for all housing agencies for FY 2012 is only P6.975 billion.

Angara cited the need for P361 billion from now until 2016 to provide housing assistance to 1.5 million Filipinos. He said that the country’s housing backlog can be filled by encouraging the involvement of companies in the private housing and banking sectors.

“There are 1.5 million Filipinos in need of help to provide shelter for their families. Why are we not helping them? To meet this need, the government has to invest P361 billion from 2012 to 2016, but given our current spending, how will we reach that goal?" he continued.

Reacting to government underspending that has resulted to the contraction of the economy Angara said, "The construction industry has shrunk by 10 percent because government has not been spending money it ought to spend. And it is affecting our economy. Instead of stimulating our economy, it is costing us jobs.

“We ought to invest properly and strategically. Construction and housing are in fact the key engines of job creation in the country, yet it sorely lacks attention of government. It is imperative to create a Housing Department that will be at the forefront of this effort to assist in providing homes for our people," he stressed.

The Senate Committees on Urban Planning, Housing and Resettlement, joint with the Committee Civil Service and Government Reorganization, and the Committee on Finance, is scheduled to hear the said bill Sunday morning.

Angara also lamented the lack of funding for the country's housing agencies during the deliberations for the 2012 National Budget.

Only a total of P6.975 billion is allocated for the housing agencies led by the Housing and Urban Development Coordinating Council (HUDCC), said Angara. The National Housing Authority will get P5.63 billion of the total while the HUDCC, Housing and Land Use Regulatory Board, Home Guaranty Corporation, National Home Mortgage Corporation will share the rest.

“Every year, the Philippines operates under a budget deficit. One of the best ways to deal with this deficit is to invite investment from the private sector,” said Angara, Vice Chair of the Senate Finance Committee.

“Housing is one of the foremost creators of jobs in the country. Investing in housing translates not just to more houses for Filipinos, but also more employment and more income,” said the veteran lawmaker.

Angara continued, “Every 100 jobs generated in the housing sector creates an additional 18 jobs in ancillary industries, requiring only P6,504 to create one job. Every P1 investment in construction also yields an additional economic output of almost P2.”