Magandang umaga po sa inyong lahat. I am so happy to see that we are enjoying a rather fine day today and are all able to attend this important gathering.

            Over the past weeks we have all been affected in varying degrees by the floods. Many of us have been disheartened by this recurring situation that affects millions nationwide. But, as you know, it only strengthens my resolve to work harder to provide more suitable homes for all, especially the underprivileged.

            So, with and despite the current situation, let me congratulate the Organization of Socialized Housing Developers of the Philippines, or “OSHDaP,” for organizing its 2012 national convention. Your theme “Innovative and Responsive Housing for Progress and Development,” is not only apt currently, but in continuing to address the huge housing need. I am one with you in this call to be innovative and responsive to this most important need of our fellow Filipinos.

            The urgent need now is to relocate the affected families not only to safe locations but also to areas which provide basic services and a sustainable environment. It is also our priority to remove informal settler families (ISFs) from danger areas. We call on OSHDaP’s assistance as we aim to fast-track the construction of housing units for these purposes.

            Whenever I am asked about my vision for the housing sector, I remember what Robert Kennedy famously said: ”There are those who look at things the way they are, and ask why... I dream of things that never were, and ask why not?”

            In socialized housing, it is time to find new ways of doing things. In socialized housing, it is time to have an agenda of hope. We must now do not just housing but sustainable housing. And sustainable because it is meant to respond to climate change, to mitigate its effects, and as a means to progress.

            How to do this? Let me share some thoughts which you and I can flesh out some more.

            First, let us not move in a collision course with climate change. Let us come together and integrate and ensure the safety of those we house as much as those of our housing investments.

            To achieve this, I propose to continue to bring together closely private sector developers, the LGUs, and urban planners. Then let us put our heads together with other local and international organizations who understand urban development and housing in the light of climate change. Then we integrate all our approaches.

            Second, I am happy to announce that in the government housing sector we have begun the innovations. We are promoting the use of indigenous and green technology in our construction through the Accreditation of Indigenous Technologies for housing, or AITECH.

            An AITECH center will be formed to showcase green technology in building housing structures and urban development. It will also showcase Filipino ingenuity and promote the acceptability of new housing technology to the Filipino market.

            I hope that the members of OSHDaP would be one with us in this: Not only in utilizing innovative technologies but also in developing more appropriate ones. Such technologies must help make social housing eco-friendly, as much as bring down costs. And you can be assured that, one, we will support the developers with innovative solutions; and two, we will educate the communities they serve about the importance of sustainable living.

            Third, we are also crafting LGU policies that will encourage the use of green technology that reduces climate risks. This should also engage families to participate in efforts to create climate-resilient cities and to protect the environment. Thus we can contribute to avoiding, or mitigating, floods like those we experienced recently. Throughout this process, the LGUs must engage the poor in defining risks and relevant actions. At the same time they must take into account the special needs of women, children, and the elderly, who are the most affected during calamities and emergencies.

            This brings me to the fourth idea. We are currently exploring a possible program that would lead to the construction of more housing for the poor. We call this The Working People’s Shelter Program, which applies a more intensive public-private partnership that creates sustainable communities.

            How does this work? The employer-private partner advances the Pag-ibig fund membership dues and also guarantees the payment of housing units. The Pag-ibig fund releases the developmental loan to the employer, who will then engage a private developer to undertake housing construction, or via a retail loan to the buyer or employee. If the beneficiary fails to pay, the employer buys back the housing unit and commits to replace the buyer or employee.

            This scheme enables the convergence efforts of national and local government agencies by providing the basic requirements of community. And these are infrastructure such as school buildings and health centers, and resources such as teachers and health personnel. This working people’s shelter program is an example of how our partnerships should be, where all stakeholders work together seamlessly, while mutually benefitting from the program.

            Public-private partnership projects undoubtedly accelerate the provision of pro-poor and low-income housing. In turn, PPP investments and frameworks of cooperation can be faster realized when the air for investments is friendlier, and private sector support and initiative become matter-of-fact and spontaneous.

            As we talk of mass housing, we cannot avoid talking about how to lower construction and acquisition costs. For its part, the Pag-ibig fund has trained its sights on this objective. It has lowered the interest rate for housing loans from 6 to 4.5 percent—not a small contribution to affordability.

            I am also aware of OSHDaP’s willingness to do its part by exploring the possibility of making available housing inventory that is less than the existing 400-thousand-peso houses. This right into the alley of Pag-ibig fund’s assistance to members from the non-formal sector, such as drivers and kasambahays. And I thank OSHDaP for this initiative.

            Pag-ibig is also in the middle of talks with the small and medium enterprises group of the department of trade and industry. We are exploring how every socialized housing subdivision might be provided livelihood training, so that one of the household spouses may have the skills for an additional source of income. Not only will this help in the holistic development of the community; it should translate into our borrowers’ better payment capacity.

            We also know that while socialized housing is the mandate of your organization, you also cater to another segment of society that we jointly care for tremendously, our OFWs. As I was pushing for more foreign investments to come in, I was pleasantly surprised by the enthusiastic response from our OFWs. With greater visibility, they have been continually investing in the Pag-ibig fund and actively building their own homes. And the fund reaped some dramatic success in its campaign for new members here and abroad. As it increased its base close to 11 million members as of the first quarter of 2012, it had at least two million OFWs.

            The contribution of the OFWs to the economy is huge. OFW remittances make up the largest proportion of the GDP at around 14%. And until recently, they are the largely untapped property market.

            Colliers international reports that we can expect a growth of between 5 to 10% in the real estate market because of the demand growth from the OFW, BPO, and tourism sectors, among others. The most active OFWs engaging the local property market come from the US, Saudi Arabia, Canada, Uae, Australia, Malaysia, Japan, the United Kingdom, Hongkong, and Kuwait. They are largely working in the service, production, transport equipment operations, professional and technical sectors among others.

            There is now, undoubtedly, an urgent need for developers to build better quality socialized and low-cost housing for OFWs and their families. These OFWs are desirous to have their own homes in their own country. We are your means to touch base with them. Through Pag-ibig fund’s international offices, we bring you to the doorsteps of two million OFWs.

            We urge you to look at the necessity of this kind of symbiotic relationship. Find it potentially in the working people’s shelter program. Experience its actuality in how you and Pag-ibig support each other. This collaboration among the HUDCC, the key shelter agencies, and the private and public development partners is the sine qua non of building decent and affordable housing in sustainable communities. Today, as we gather here to plan and discuss, let us not forget to dream and ask “Why not.” Why not aim to deliver homes in a safe environment that will not be washed away by floods? Why not continue to dream and build a better life for all?

            Let us, my friends, have a fruitful convention.

            Maraming salamat po.