Local government units (LGUs) are important as facilitators of housing projects, but should not be overburdened with housing production or housing loans. LGU-driven projects are important and strategic for targeting the urban poor. LGUs can have a crucial role in provision of land, particularly land that has been proclaimed by the President of the Philippines for social housing purposes. However, there needs to be additional innovation to make the urban poor bankable. Home Development Mutual Fund (HDMF) lending needs to open up to LGU-initiated socialized housing projects, even if they are for nonHDMF members. In order to serve the urban poor, LGUs need to innovate and provide guarantee funds (guaranteed by the internal revenue allotment or other forms of collateral) for HDMF lending operations to the urban poor. In addition, the implementation of socialized housing projects needs to make use of microfinance institution collection practices.
Development of Poor Urban Communities Sector Project