City's Christmas 'gift' a real estate gimmick

The Kalipunan ng Damayan ng Maralitang Lunsod (Kadamay) slammed the repayment scheme of the City Government for relocatees of the city saying that ‘lots in relocation sites should be free and should not be a real estate transaction.’

The group said that the awarding of contracts to sell to relocatees is a real estate transaction disguised as a generous program by the city government.

“The average cost of P450 per sq. meter is almost the same as the prevailing market price of land in these relocation areas,” said Maura Abellon, chairperson of Kadamay-Panay & Guimaras.

In a press release, the City Government stated that a relocatee will need to pay P150-P200 per month for 10 years, after which he or she will be issued land title for a lot of 40-60 square meters.  This means every square meter will cost the relocatee P450.

The payment of relocation lots, according to the City Hall, will be used to purchase land for other relocation areas.

According to the Iloilo City Urban Poor Affairs Office (Icupao) early this year, a total of more than 10,000 poor families will be demolished to give way to the development projects in various areas in the city.

“Why can’t the government distribute for free the relocation lots for poor families displaced by its development program? It (government) spends hundreds of millions for beautification and infrastructure like the Esplanade that benefits real estate speculators and big businessmen. Real estate developers and big businessmen benefiting from these beautification and infrastructure are not charged with the costs of these projects. Mayor Mabilog should consider the cost of relocation sites as necessary social cost of the displacement caused by the government projects,” Abellon added.

The group also said this has a negative impact on the source of livelihood of those displaced.

“Majority of demolished poor families depend on below-subsistence livelihood in places where they reside now. The government does not provide for the big dislocation on the incomes of displaced families,” they added.

Meanwhile, Wilfredo Jurilla Jr, Icupao chief said the repayment scheme for relocatees at the specific relocation site will be based on the prevailing price of the lot bought by the Iloilo City Government.

Jurilla said Kadamay’s statement is not true because they know nothing about the policy and contract.

He said the city government does not impose interest on the lot price except from the lot developed by the National Housing Authority (NHA) in Brgy. Bitoon, Jaro District. He said the developer has to recoup the expenses they spent for the development.

Currently, 63 out of 350 households with contract to sale had already started their repayment scheme.

Around 8,000 households are about to enter on the contract to start their repayment next year.

The city government has a total of 23 relocation sites around the city.* with reports from Montesa Grino-Caoyonan