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Housing Incentives Provided by the Government

These housing incentives are designed to make it easier for Filipinos to acquire affordable and decent homes. By taking advantage of these programs, families can improve their quality of life and secure a brighter future for themselves and their loved ones.


Affordable housing is essential in the Philippines to address the housing backlog, alleviate poverty, improve health and safety, boost economic growth, and promote social stability. By providing affordable housing options, the government can help families achieve a better quality of life and build a brighter future for themselves and their communities.


Government's Commitment to Providing Housing Incentives

The Philippine government is committed to providing housing incentives to help its citizens acquire affordable and decent housing. The government recognizes the importance of providing access to housing and has implemented various programs and policies to support this goal. Some of the initiatives include:

  • Socialized Housing Program (SHP)

  • Home Development Mutual Fund (Pag-IBIG Fund)

  • Community Mortgage Program (CMP)

  • Value-Added Tax (VAT) Exemption

Socialized Housing Program (SHP)

The Socialized Housing Program (SHP) is a government program that aims to provide affordable housing to low-income families. The program is designed to help informal settlers, homeless families, and those living in danger areas and high-density urban areas to acquire decent and safe housing.

The SHP is implemented by the Housing and Urban Development Coordinating Council (HUDCC) and the National Housing Authority (NHA). It is one of the main programs of the government in addressing the housing backlog in the country and improving the quality of life of low-income families.

Pag-IBIG Fund

The Pag-IBIG Fund, also known as the Home Development Mutual Fund, is a government-owned and controlled corporation in the Philippines that provides affordable housing financing to its members. It was established in 1978 to help Filipino workers acquire their own homes and provide them with other financial benefits.

The Pag-IBIG Fund provides an essential service to Filipino workers by providing them with affordable housing financing and other financial benefits. Its programs and services are designed to make homeownership and financial security more accessible to Filipinos, thereby contributing to the country's economic growth and development.

Community Mortgage Program (CMP)

The Community Mortgage Program (CMP) is a government program that aims to provide affordable housing to organized community associations or groups. It was established by the Social Housing Finance Corporation (SHFC) in 1988 to help low-income families acquire land and build their own homes.

Under the CMP, the SHFC provides financing for land acquisition and housing construction, as well as technical assistance and capacity-building support to the community associations or groups. The program is an important part of the government's efforts to address the housing backlog in the country and provide affordable housing to low-income families.

VAT Exemption

The value-added tax (VAT) exemption for affordable housing units is a government incentive that aims to make housing more affordable for low-income families. Under the law, affordable housing units that meet certain criteria are exempt from paying VAT, which reduces the overall cost of the housing unit.

The criteria for VAT exemption for affordable housing units include:

  • The housing unit must have a selling price of no more than PHP 3 million.

  • The housing unit must be located in a socialized housing project that is developed and implemented by the government or by a private entity in partnership with the government.

  • The housing unit must be occupied by the buyer as his or her principal residence.

The VAT exemption for affordable housing units is a significant incentive for developers and buyers of affordable housing units. It helps to reduce the overall cost of the housing unit, making it more accessible to low-income families. The exemption also encourages developers to build more affordable housing units, which helps to address the housing backlog in the country.

The VAT exemption for affordable housing units is just one of the many government incentives aimed at promoting the development and acquisition of affordable housing in the Philippines. Together with other housing incentives, it plays a crucial role in making housing more affordable and accessible to low-income families.


In summary, the government provides a range of housing incentives to help promote the development and acquisition of affordable housing in the country. These incentives are designed to help make housing more accessible and affordable to low-income families in the Philippines. By promoting the development and acquisition of affordable housing, the government aims to improve the living conditions of low-income families and promote sustainable urban development in the country.


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