The document proposes that corporations provide employee housing benefits by acting as the institutional support for employees to purchase homes. Corporations could issue corporate bonds to finance large-scale housing developments and allow employees to rent the homes for 20 years through a rent-to-own plan. This would substitute corporate credit for individual credit and allow corporations to deduct various housing-related costs from their taxes without spending money upfront. The proposal includes an example development of nearly 2,000 units costing $6.8 billion that employees could rent-to-own.

1. Providing employee housing benefit
via employer / corporation

2.  If the aspiring homeowner could obtain institutional
support for home acquisition, then his family would be in a
better position to own their own home.
• The best source for that institutional support would be his
employer corporation.
• And that employer corporation would – under existing laws
and tax regulations – enjoy the deductibles that individual
taxpayers cannot.

3. 
Substitutes Corporate Credit for the individual credit each employee needs to
muster in order to own a home.
Lending corporate credit to employees under a 20-year Rent-to-Own plan would not
impact the corporation’s core funds nor the core business in any detrimental way.
•
•
•
Individual Credit – a tedious and retail process in terms of evaluation, rating, granting,
collection monitoring and enforcement
Corporate Credit – when applied to housing, is simpler, safer, faster and does away with the
dis-economies of managing retail credits

Taps the Capital Market/Corporate Bond Market for easier, lower cost, faster, more
stable, globally-aligned fund sources, truly market-based and not subject to the
whims of policymakers but participants are limited to a select corporate few

Combines construction finance (high cost, short term) and mortgage finance (long
term, fixed or variable rate) into a unified financial system that is simpler and more
cost-effective while Housing Finance, at the moment is dependent on Pag-ibig
Fund and bank funds for construction and mortgage finance

4. We package the bond
Subscription escrowed
backed-up by the housing
and released
Corporation issues a Bond
project, add in the
in tranches from
for Corp. Housing
guarantees, and float the construction to turnover
Bond
of housing units
Outsourced professional
Employees move in under Corporation carries asset
management for fund
on books, enjoys the tax
20-yr Rent-to-Own.
servicing, collection of
Monthly payments
deductibles for 20 years,
rent-to-own payments,
matched against Bond
then transfers to
and property
servicing
Employees at one peso
management

5. The corporation gets to deduct from its tax returns:
• Interest costs
• Depreciation
• CUSA Fees
• Repairs and Maintenance
• Taxes
• Insurance
without actually having spent a single peso in construction.
The Corporate Housing System can be the most valuable
employee benefit that an employer / corporation can provide.

6. Located in a prime location in Ortigas Center
Number of units - 1,961
Average floor area – 30 sq.m.
Units per floor - 53
Number of floors - 37
Rent-to-Own Price per employee @ P3,510,000
Term of Payment @ 20 years
Average Rental per employee @ P35,732 per month
Total Rent-to-Own Price /
Corporate Bond Issue @P6,883,110,000

7. Located in a prime location in Ortigas Center
Number of units - 1,961
Average floor area – 30 sq.m.
Units per floor - 53
Number of floors - 37
Rent-to-Own Price per employee @ P3,510,000
Term of Payment @ 20 years
Average Rental per employee @ P35,732 per month
Total Rent-to-Own Price /
Corporate Bond Issue @P6,883,110,000