ADB To Tackle PH Affordable Housing Crisis

In the Philippines, where the specter of climate change looms large, the Asian Development Bank (ADB) has taken a significant step toward addressing the pressing issue of affordable housing.

ADB's collaboration with Lhoopa aims to deliver quality homes priced at an average of Php 850,000, targeting occupations ranging from drivers and security guards to teachers and administrative staff. | Photos: Lhoopa, Inc.

Partnering with Lhoopa, Inc., the ADB has committed up to $20 million to bolster the supply of green and affordable housing for the country's average-income earners.

This partnership marks ADB's maiden private sector housing project in the Philippines and represents a critical intervention in a nation grappling with a projected housing shortage of 6.5 million units by 2030.

Despite the overwhelming need for housing catering to the average Filipino, local developers have predominantly focused on high-end condominiums and upscale estates, leaving a vast swath of the population underserved.

Recognizing this gap, ADB's collaboration with Lhoopa aims to deliver quality homes priced at an average of Php 850,000, targeting occupations ranging from drivers and security guards to teachers and administrative staff.

Importantly, at least a quarter of these homes will adhere to green building standards, bolstering climate resilience in vulnerable communities.

Suzanne Gaboury, ADB's Director General for Private Sector Operations, underscores the significance of this initiative, emphasizing its dual role in providing livable spaces while enhancing climate resilience.

“This is ADB’s first private sector housing project in the Philippines, and Lhoopa is a fitting partner as it caters to people who are often unable to adapt to the impacts of climate change. The project not only provides livable spaces for these communities but also enhances their climate resilience,” said Gaboury.

Moreover, ADB's innovative use of a revolving credit facility empowers Lhoopa to manage its financing efficiently, ensuring continued support for its growth trajectory.

“This will also be ADB’s first infrastructure project to use a revolving credit facility, allowing Lhoopa to repay the loan and withdraw it again as needed, without having to reapply for financing. This innovative facility is well suited for small-scale companies that are experiencing rapid growth,” Gaboury added.

The scale of Lhoopa's ambition is matched only by its innovative approach. Leveraging a proprietary digital platform, Lhoopa identifies demand hotspots nationwide, engaging a network of over 100 small-scale contractors and 4,000 real estate agents.

Not only does this streamline construction and sales processes but it also fosters local employment, underlining the project's commitment to inclusive growth.

For Marc-Olivier Caillot, Lhoopa's Founder, the ADB partnership signifies a milestone in their mission to provide affordable housing at scale. Caillot's vision, coupled with ADB's support, promises to uplift countless Filipino families while showcasing the potential of technology-driven solutions on a global stage.

“With the ADB facility, we will be able to provide thousands more of affordable homes to Filipino families. Having such an esteemed institution by our side puts us on a global stage and will allow us to apply our technological solutions on a larger scale, thereby impacting more lives in the process,” said Caillot.

Lhoopa's journey, rooted in a fruitful collaboration with the state-owned Home Development Mutual Fund (PAG-IBIG), epitomizes the synergy between public and private entities in tackling societal challenges.

Accredited by PAG-IBIG in 2020 and swiftly rising to become one of its top 20 developers by 2022, Lhoopa exemplifies the transformative impact of innovative partnerships in the housing sector.

As ADB remains steadfast in its commitment to fostering prosperity, inclusivity, and sustainability across Asia and the Pacific, its partnership with Lhoopa stands as a beacon of hope in the Philippines' quest for affordable, climate-resilient housing.

Established over half a century ago, ADB continues to evolve, harnessing the collective power of its 68 member nations to drive positive change in the region and beyond.

WEEKLY FEATURE : Jose Mari Chan And The Christmas Anthem