THERE are much better ways to address the housing problem in Cagayan de Oro than City Hall’s controversial P1-per-lot program or “piso-piso,” an officer of the local housing sector said.

One of the “more acceptable” ways is for the local government to assist the urban poor sector in acquiring affordable housing package through government financial institutions such as the Home Development Mutual Fund or Pag-ibig, said Edward Argayoso, Cagayan de Oro chapter president of the Chamber of Real Estate and Builders’ Associations Inc. (Creba), the umbrella organization of the real estate and housing industry in the country.

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“In Malaybalay, we have proposed to the City Government a strategy that allows the informal sector to acquire housing units through government agencies such as Pag-ibig, which we think is more acceptable,” Argayoso said.

Creba, he said, can help Cagayan de Oro formulate ways to solve its housing problem using sustainable approaches rather than resorting to dole-outs that have bad effects on its finances.

Argayoso, however, clarified he sees nothing wrong with the P1-per-lot program, only that “there are much better options” than “piso-piso.”

“There are various ways to address the housing needs of the urban poor and the ‘piso-piso' is one but not the only option,” he said.

The “Piso-piso” Land Resettlement program started in 1998 during the administration of Mayor Vicente Emano, who is now a vice mayor.

Under the program, parcels of land bought by the local government through bank loans are sold to landless families at a negligible P1.

Beneficiaries, who are barred from selling their lots, were promised issuance of Transfer Certificate of Titles by then Mayor Emano.

Not a single deed of sale for the P1 purchase has been executed, and beneficiaries are only issued certificates as proof of ownership.

State auditors had earlier found the program disadvantageous.

Because the lots are sold way below their market value, the Commission on Audit (COA) said this effectively deprived the city of funds to buy lands for other beneficiaries.

COA also said the program was discriminatory, as beneficiaries of previous land resettlement programs were charged according to market value.

Evangeline Ngayan, team leader of the COA unit that audited the “piso-piso” program in 2004, said she had not encountered a situation in her 24 years of auditing career in which lots are sold at P1.

Emano had earlier defended the delayed distribution of land titles to “piso-piso” beneficiaries, saying the titling process could take a little longer than usual considering the thousands of settlers registered under the program.

Last month, the opposition bloc in the City Council vowed to resign if City Hall can produce a single title for any of “piso-piso” beneficiaries.

Mayor Constantino Jaraula initially took up the challenge but backed out later when opposition councilors drafted a notarized agreement saying that if City Hall can’t produce a single land title and a deed of sale evidencing the sale of the lot, Mayor Jaraula and Vice Mayor Emano should also resign from their positions. (Terry D.C. Betonio/DVA)