This is an Entry to the Government Best Practice Recognition Awards


Countryside Housing Initiative (CHI)


Pag-IBIG Fund

Best practice Focus Area(s)

Strategic planning and deployment


Pag-IBIG Fund initially implemented the Countrywide Housing Initiative (CHI) in 2015 and was initially called the Pag—IBIG Led Housing Program. The initiative sought to provide housing projects in underserved areas where Filipino workers belonging predominantly from minimum and low wage earners who seek to acquire decent and affordable homes reside. The CHI serves as a conduit to develop a housing project adopted or initiated by a proponent such as the local government unit, an employer, or an institution, built by a reputable developer, and availed by the target beneficiaries through the Pag-IBIG Fund Affordable Housing Loan Program.

Background and Problem

One of Pag-IBIG Fund‘s twin mandates is to provide a home lending facility For Filipino workers, especially for low-income or minimum-wage earners. Yet, while financing was available to these Pag-IBlG Fund members, quality but affordable housing projects where they reside are limited, especially among the rural areas in the regions. Residents in these areas are usually unserved by commercial developers and are often overlooked. Certain developers do not consider the project feasible because of the uncertainty of the demand in building housing projects in the regions and peripheral areas. The local government meanwhile, even if they possess idle lands, these LGUs do not have the budget or expertise to develop the area for housing.  The members, limited by their capacity to pay, can only avail of socialized housing programs, which developers do not consider feasible. These  limitations inhibit the development of  a secure and sustainable housing in the  rural areas.

Solution and Impact

Pag-lBiG Fund aims to be inclusive in the delivery of its services to its members, regardless of location or social status. It does not view the limitation experienced by its members in availing of properties or housing projects in the rural areas as a factor to limit its service in the regions.

A housing project needs the following components: the project site, a project developer, the beneficiaries or loan borrowers, and the source of funds. Within its network, Pag-IBIG Fund was able to identify how these components can be gathered together to make the CHI possible. Pag-IBIG Fund engaged the LGUs and employers to identify available properties, to serve as the project site. By providing the property, the total cost of the project will already be significantly reduced. The employers and LGUs also identify their target beneficiaries who have the capacity and qualifications to avail of a housing loan through the Pag-IBlG Fund. Borrowers have been screened and pre-qualified by their employers, providing Pag-IBIG Fund with a ready market with a good project portfolio. The collection of monthly amortization is also addressed since salary deduction is an option  that the members may avail of in paying for their home loans. This assures the project feasibility and removes the additional cost to promote and market the project or look for potential buyers. Accredited developers are tapped to develop the project. With their expertise, along with Pag-IBIG Fund’s standards, the project is assured of maximized space, sustainability, and security.

LGUs now have a stable program that addresses the housing backlog in their area. Members are provided with an affordable but sustainable home for their families’ security. Employers practiced corporate social responsibility while implementing a sustainable rewards program for their employees. Developers are given opportunities to operate in the  areas that they do not usually consider.


The CHI has enabled the development of projects in various areas nationwide. ln 2019 alone, it has already covered 12 areas, from Bauang, La Union in the north to Surallah, South Cotabato in the south.

The CHI strengthened the Pag-lBlG Fund’s Affordable Housing Program. In  2019 alone, Pag-IBIG Fund was able to extend socialized housing loans amounting to P452 billion to 11,894 members accounting for 30% of its housing loan portfolio in the first half of 2019. Pag-lBlG Fund continues to engage LGUs and employers in various areas. In the pipeline are CHI projects in Pangasinan, Sorsogon, and Batangas.