Pag-IBIG Fund has entered into an investment partnership with P.A. Alvarez Properties and Development Corp. (PAAPDC) to accelerate the construction of more than 7,300 affordable homes across 10 housing developments in Batangas, Laguna, and Pampanga. The initiative falls under President Ferdinand R. Marcos, Jr.'s Expanded Pambansang Pabahay para sa Pilipino (Expanded 4PH) Program, which targets the construction of one million housing units annually to address a national housing backlog estimated at several million units.

The planned developments will comprise 80% socialized housing units and 20% economic housing units, broadening the supply of affordable homes in key growth corridors across South and Central Luzon and addressing the housing needs of Filipino workers and their families.

Department of Human Settlements and Urban Development (DHSUD) Secretary Jose Ramon P. Aliling, who also chairs the Pag-IBIG Fund Board of Trustees, said the partnership reflects the administration's push to accelerate housing delivery through deeper collaboration with the private sector.

"As we continue to heed the directives of President Ferdinand R. Marcos, Jr., we are strengthening our partnerships with the private sector to accelerate the delivery of affordable homes for Filipino families. Through this partnership, we are bringing together government financing and private-sector capability to increase housing supply, help more Filipino workers achieve the dream of homeownership, create jobs, support industries and drive inclusive economic growth," Mr. Aliling said.

Under the financing arrangement, Pag-IBIG Fund will subscribe to preferred shares issued by PAAPDC totaling P2.9 billion, payable in tranches. The investment is structured to yield a fixed annual return of 9% over a three-year period. The equity-style investment structure marks a notable channel for Pag-IBIG Fund beyond its traditional housing loan lending, enabling the fund to directly inject capital into project-level construction pipelines.

Before approval, the investment was subject to Pag-IBIG Fund's comprehensive evaluation process. This included reviews of the proposed developments, their locations, market demand, PAAPDC's financial and operational capacity, and the transaction-level safeguards designed to protect members' savings.

Pag-IBIG Fund Chief Executive Officer Marilene C. Acosta emphasized that the partnership aligns with the fund's dual mission of expanding homeownership access while generating secure, sustainable returns on members' savings.

"This partnership demonstrates how Pag-IBIG Fund fulfills its dual mandate of helping more Filipino workers achieve the dream of homeownership while prudently investing and growing our members' savings. By supporting the construction of more than 7,300 affordable homes through a prudent investment that provides stable returns, we protect our members' hard-earned savings, sustain competitive dividends and strengthen our capacity to finance even more homes for Filipino workers," Ms. Acosta said.

Pag-IBIG Fund is also evaluating further investment partnerships with qualified housing developers as it works to accelerate construction of socialized and affordable housing while delivering reliable returns on members' funds.

In the first half of 2026, Pag-IBIG Fund disbursed P69.19 billion in housing loans, enabling 43,051 Filipino workers to purchase their own homes. Socialized housing financing more than doubled during the same period, with 6,601 minimum-wage and low-income members securing homes through the Expanded 4PH Program.